Are you still lost when it comes to processing your safe harbor information? Below is the workflow we published in our Help documentation menu with some added information. Help can be accessed for the individual windows by pressing the [F1] key. You can use the Check for Updates tool to download the latest version on the software, which includes updated Help screens.
And now we present: 18 simple steps to get your Safe Harbor checks done!
AB 1513 Workflow
- Determine what wage types, and/or jobs codes, cost centers and G/L accounts are used for breaks and non-productive time. The Labor Analysis Report may be helpful in determining this.
- Create entries in the Rest and Recovery table to define your break and non-productive time wages.
- Make sure that the Break Table has the correct amount of break time for different hours worked.
- Run the Safe Harbor Report (using whatever methods you want to evaluate) to see what the payments amounts are under different methods.
- Verify that the report is calculating the correct amounts for break wages (due and paid) and non-productive wages.
- Decide on a method to use.
- Run the Safe Harbor Report with the Create Safe Harbor Detail File box checked. This will create a detail file with the payroll amounts needed to calculate the safe harbor payments.
- Review the Safe Harbor Detail for representative set of employees to make sure the calculations are correct.
- If needed, print reports by grower (for FLCs) to obtain totals by grower.
- Send notices to employees due a safe harbor payment to determine if last known addresses are correct and/or provide you with updated information.
- Verify that payment amounts are correct using the Create Checks option with the Trial report.
- If you need to combine safe harbor data for more than one company (i.e. the payments will be issued by a single company, on behalf of related/predecessor companies), use the Export Safe Harbor Data to export the data into a single company’s files.
- If you are using a third party administrative company to issue payments, use the Create Checks option to update the payment amounts to the employee accounts using the Final-Update Employees option. Use the Export/Print Mailing Labels option to export the employee data with payment amounts to an Excel file. Use the Print Safe Harbor Statements option to print statements either on paper or to PDF files to send to your third party administrative company.
See this blog post for more details on exporting data to your third party administrator.
- If you are issuing the payments yourself, use the Create Checks option to create the checks in the batch. The Create Safe Harbor Checks will generate a batch report for you to review the total payment amounts, along with totals by grower at the end if you are a FLC. The report can be run in Trial mode so that it doesn’t actually create the checks, giving you a chance to see the total payment amounts and confirm that they match your previous safe harbor reports. (Due to rounding they may not match exactly, but the total should be close. And of course if you have modified any information in the detail file, that will result in a difference from your original Safe Harbor report.)
- When you are not processing your regular payroll checks, use the Create Checks option to create the checks. The program will create checks directly in the batch that are ready to print. As soon as the checks have been created, you can use the regular Print Payroll Checks option to print the checks.
- Employees must receive a statement explaining the payment is being made under AB 1513. You may want to add additional explanations beyond what is required by the law. Write your notice in Word, and save it as an RTF (Rich Text File, use the Save As command in Word and select the Rich Text Format file type). You can also create a footer notice that will print after the pay period information on the statement. If you want a footer notice, save it in a separate file, also in RTF format. Note: do not include hyperlinks (such as a web address for the employees to go to get more information about AB 1513) in the Safe Harbor file. Some formatting, including web links that are colored blue and underlined, will not print correctly on the statements.
- Print employee statements to go along with the checks. You can print these in check # order to make it easier to collate the statements with the checks.
You can also print statements at the same time as checks. This requires a printer with two trays (so that you can put checks in one tray and plain paper in the other), that you turn on the “Print Check Vouchers for Overflow Checks During Check Printing” feature under Tools->Program Setup->Payroll->Check Printing, and that you select the payroll voucher printer/tray (also on the Check Printing settings).
With this option turned on, the program will print a check from the check tray, then print the Safe Harbor statement from the plain paper tray, then print the next check, etc. This eliminates the need to collate checks and statements manually.
- After sending out checks, if any checks are returned, you will need to attempt to locate employees. If you are unable to locate employees, mark the Check Returned box on the employee account. By December 15, you will need to forward to the state labor commissioner all funds that have not been distributed to employees. You may want to place an expiration date for cashing the check so that no checks can be cashed after December 15th. Document your efforts to locate employees in case you need to provide proof that you complied with the safe harbor provisions of AB 1513.
AB 1513 requires that you keep records on how calculations were made until December 15, 2020. We recommend that you print a set of PDF files to maintain this information.
By December 15, 2016, send funds to the state that were not distributed to employees. Use the Labor Commissioner Check Report to generate a list of employees with their amounts due in printed and Excel form.