FY 2014

DATE:    July 5, 2013
SUBJECT:    SHARP Employee Self Service PDF Paycheck Advices

EFFECTIVE DATE:    July 29, 2013
CONTACT:    Kathy Ogle, (785) 296-2290, ( Kathy.Ogle@da.ks.gov)

APPROVAL:    Nancy Ruoff (Original Signature on File)

SUMMARY:     SHARP Employee Self Service Paycheck Advices Displayed in PDF Format Effective with Checks Dated August 2, 2013

The Office of Systems Management, Payroll Services, is pleased to announce that effective with paychecks dated on or after August 2, 2013, pay advices will be processed using PDF format in SHARP Employee Self Service (ESS), View Paycheck, unless Accessibility Mode is requested for an employee.  In addition to displaying most of the same information as the current format, every PDF pay advice will now display year-to-date (YTD) information as of the pay period end date of the paycheck.  Currently, when viewing pay advices in ESS, only the most recent paycheck displays YTD information.  With the new PDF format, every pay advice dated on or after August 2, 2013 will include YTD information.

To view PDF pay advices (once checks dated August 2, 2013 are available in ESS), click the View Paycheck menu item.  Employees will notice a checkmark in the PDF File column check box.  Click on the Check Date link to display the PDF pay advice.  In addition to each PDF pay advice displaying YTD information, differences between the PDF pay advice and the current pay advice view to be noted are:

• No column totals are displayed in the Employer Paid Benefits section.
• There is a new Year-To-Date Paid Time Off and Sick Leave section displaying vacation (paid time off) and sick leave information: a year-to-date starting balance with hours earned, bought (this row is not used), taken, sold (this row is not used), adjustments, and the resulting end balance.  The message section below this box informs the viewer to go to the View Leave Balances or Update My Time Sheet links to view other leave balance information.
• Adjustment checks resulting in a zero dollar net balance will now display as a PDF advice.  Currently, these advices do not appear in View Paycheck.
• PDF Pay Advices are only available starting with paychecks dated on or after August 2, 2013.  PDF pay advices will not be available for any paychecks dated prior to August 2, 2013.

Employees wishing to continue to view pay advices utilizing the current ESS Paycheck View for ADA purposes will need to request Accessibility Mode.  For an employee using Accessibility Mode, no change will occur and View Paycheck will continue to function in its current form.  For Accessibility Mode requests, an employee should contact their human resource office, who in turn should contact the service desk at 785-368-8000.

The new PDF View Paycheck option will only include paycheck advices.  Employees who receive a paycheck rather than using direct deposit for a particular pay period will not have the PDF pay advice available for that pay period and will view paycheck information in the current format for that pay period.

Because Regent Institutions calculate their own paychecks, the View Paycheck option in either format is not available for Regent employees.

SG:NTR:kao

DATE:    July 11, 2013
SUBJECT:    Discontinue Organization Dues Deduction for Teamsters Local Union #795 (JJA in Larned)

EFFECTIVE DATE:    Payroll Period Ending July 6, 2013
CONTACT:    Nancy Ruoff, (785) 296-2853, (Nancy.Ruoff@da.ks.gov)

APPROVAL:    Nancy Ruoff, (Original Signature on File)

SUMMARY:    Deduction Codes ORG620-631 and ORF620-631 Discontinued

Payroll Services received notification from Teamsters Local #795, the union previously representing Juvenile Corrections Officers at the Juvenile Justice Authority (JJA) facility in Larned, indicating that they no longer represent State of Kansas employees.  Therefore, in place of Local #795, Teamsters Local #696, the union already representing officers at JJAs in Topeka, Atchison, and Beloit, now also represents Juvenile Corrections Officers at Larned.

To implement this change, payroll deduction codes for Teamsters Local #795 membership dues and fees, listed below, will be discontinued in SHARP effective with the payroll period beginning June 23, 2013 and ending July 6, 2013, paid July 19, 2013. 

The existing Local #696 organization dues deduction codes should also be used for Larned JJA employees who join Local #696.  Currently each organization dues deduction must be entered into SHARP as two separate deduction codes, one for the deduction (ORGXXX) and a corresponding (ORFXXX) row for the $.06 per deduction fee.  The current pay rate ranges, deduction codes, and bi-weekly deduction amounts (including the $0.06 service fee) for Teamsters Local Union #696 are as follows:

The Office of Systems Management, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay.  Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

SG:NTR:ccl

DATE:    August 5, 2013
SUBJECT:    Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30

EFFECTIVE DATE:    Payroll Period Ending August 17, 2013
CONTACT:   Nancy Ruoff, (785) 296-2853, (Nancy.Ruoff@da.ks.gov)

APPROVAL:    Nancy Ruoff, (Original Signature on File)

SUMMARY:    Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $29.76 to $30.11 per biweekly payroll period.  The new rate will become effective with the payroll period beginning August 4, 2013 and ending August 17, 2013, paid August 30, 2013.

The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $29.70 to $30.05 and the fee (ORF030) will remain at $.06 (for a total deduction of $30.11 per biweekly payroll period).

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system.  Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

SG:NTR:ccl

DATE:    August 15, 2013
SUBJECT:    Parking Arrangement Changes for Department for Aging and Disability Services (Agency 039)

EFFECTIVE DATE:    Payroll Period Beginning August 4, 2013 and Ending August 17, 2013, Paid August 30, 2013
CONTACT:    Cindy Lo, (785) 296-2259, (Cindy.Lo@da.ks.gov)

APPROVAL:    Nancy Ruoff, (Original Signature on File)

SUMMARY:    Addition of New Parking Codes for 615 Quincy Parking Garage, Discontinuation of Parking Codes for 412 Jackson Garage, and Changing Parking Rates for 512 Jackson Garage

The Department for Aging and Disability Services (the Agency) requested the following changes be made, effective with the payroll period beginning August 4, 2013 and ending August 17, 2013, paid August 30, 2013, regarding parking arrangements in the City of Topeka for their employees:

Pursuant to the agreement the Agency entered into with the Park N Shop Garage at 615 Quincy, new parking deduction codes PPKA15 (before tax), APKA15 (after tax), and PKAD18 (admin fee) will be added to SHARP. Employees enrolled in parking codes PPKA15 and APKA15 will have a bi-weekly payroll parking deduction of $10.50. Employees enrolled in parking deduction code PPKA15 will also need to be enrolled in the new parking administrative fee code – PKAD18. Parking code PKAD18 will process an employer bi-weekly payroll contribution of $0.80.

The Agency will pay the entire parking fee for their employees parking in the 412 Jackson surface lot. As a result, the payroll parking deduction codes for that lot, PPKA01, APKA01, and PKAD16, will be discontinued in SHARP. A deduction end date effective 8/5/2013 has been updated on the applicable employee’s general deduction records.

The Agency will also reduce the amount their employees will pay for parking in the 512 Jackson garage. The payroll parking deduction codes affected by this change are PPKA02, APKA02, and PKAD04. The new bi-weekly rate for PPKA02 and APKA02 will be $10.50, and the new parking administrative fee, PKAD04, will be $.80.

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

SG:NTR:ccl

DATE:    August 21, 2013
SUBJECT:    Change in Organization Dues Deduction Amounts

EFFECTIVE DATE:    Payroll Period Ending September 14, 2013
CONTACT:    Nancy Ruoff, (785) 296-2853, (Nancy.Ruoff@da.ks.gov)

APPROVAL:    Nancy Ruoff, (Original Signature on File)

SUMMARY:    Organization Dues Changes for KAPE

The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 1, 2013 and ending September 14, 2013, paid September 27, 2013 as follows:

As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

SG:NTR:ccl

DATE:    September 12, 2013
SUBJECT:    Implementation of Lump Sum Withholding Orders Per HB2015

EFFECTIVE DATE:    Immediately
CONTACT:    Jennifer Holthaus, (785) 368-6313, (Jennifer.Holthaus@da.ks.gov)

APPROVAL:    Nancy Ruoff (Original Signature on File)

SUMMARY:    Changes for IWO’s With Arrears for Pending Lump Sum Payments as a Result of HB2015

HB2015, passed during the 2013 Legislative Session, requires that a 14-day notice be provided to the Department of Children and Families (DCF) prior to a lump sum payment being made by a payor (employer) to an obligor (employee) for whom an active income withholding order (IWO) with an arrears amount has been served on the employer.  Effective immediately, Agency HR/Payroll staff will be required to provide 21-days notice to Payroll Services, as specified in this circular, prior to any lump sum payment being made to an employee identified as having an active IWO with arrears.  Failure to provide adequate notice may require that the lump sum payment to the employee be delayed in order to meet the 14-day notification period.

HB2015 defines lump sum payment as “income in the form of a bonus, commission, an amount paid in lieu of vacation or other leave time, or any other payment to an obligor” (employee).  For employees of the State of Kansas, wages paid as a bonus, longevity payment, or leave payout qualify as a lump sum payment.  A full listing of State of Kansas earnings codes considered to be lump sum payments for the purposes of HB2015 is included in Attachment A.

HB2015 specifies that the 14-day notice is required in order to allow the Title IV-D agency (DCF) to request a new IWO specifying the amount the payor (employer) is required to withhold from the lump sum payment. 

Payroll Services is working closely with DCF to identify the employees impacted by this legislation based on the specific IWOs with arrears to which this legislation applies.  For IWOs that need to be tracked under HB2015, the garnishment ID has been updated in  garn_spec_data in SHARP to reflect a ‘D’ on the end of the garnid.

A new report, KPAY226 titled “Employees with Title IV-D IWO Garnishments with Arrears”, will be available every Monday in the agency’s MVS mailbox if the agency has any employees who meet the criteria of HB2015.  The KPAY226 report will not appear in the agency’s MVS mailbox if no employees in that agency meet the criteria for a particular pay period. 

The report identifies the employees the agency HR/Payroll staff is responsible for tracking.  The report also lists any upcoming, scheduled longevity payments and the pay period end date for which they are scheduled.  Agencies are not required to notify Payroll Services of scheduled longevity payments. 

Note: If an employee on the KPAY226 agency listing is scheduled to receive an upcoming lump sum payment that is not a longevity payment (leave payouts, bonus payments, etc.), the agency must provide the following information:

• Employee Name
• Estimated pay check date of the lump sum payment

to Jennifer Holthaus in Payroll Services at Jennifer.Holthaus@da.ks.gov NO LATER THAN 21 DAYS PRIOR TO THE CHECK DATE ON WHICH THE PAYMENT IS SCHEDULED TO BE PAID.  Failure to provide adequate notice of an upcoming lump sum payment may result in the lump sum payment being held until the 14 day required notice to DCF can be completed.  After the 14-day notification has been completed, payment of the bonus amount to the employee can proceed unless the agency is notified by Payroll Services of any additional delays due to an employee appeal of a lump sum IWO.

For regent agencies, a new edit has been added to the KREGPAY1 Regent Pay Detail Interface which will provide a warning message when a lump sum payment is being processed for an individual identified as having an active IWO with arrears.  If the appropriate prior notification has not been provided to Payroll Services, the lump sum payment will need to be delayed so notice can be provided to DCF.  The payment will need to be removed from the file and the pay detail file resubmitted for processing.

Attachment A xls

SG:NTR:ewb

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2014.  The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.    

SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll.  If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day.  Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll.   Agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing.

Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night.  Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files.  The Office of Systems Management must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll.   Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.

SG:NTR:ewb

Attachments

ON CYCLE XLS

OFF CYCLE XLS

Monday, November 11, 2013 (Veterans' Day), Thursday, November 28, 2013 and Friday, November 29, 2013 (Thanksgiving Holiday) are designated holidays for state service in 2013.

Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.

Friday, November 1, 2013

Final pay confirmation for the on-cycle payroll for the period ending October 26, 2013 will occur November 1, 2013. For SHARP agencies, all employees’ payable time must be approved by 6:00 PM on November 1, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 1, 2013 in order to be reflected in the final paycheck created for the employee.

Regents’ Run A off-cycle payroll files for the period ending October 26, 2013 must be received by the Department of Administration by 4:00 PM on November 1, 2013.

Monday, November 4, 2013

The Run A off-cycle for the period ending October 26, 2013 will be processed November 4, 2013. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 8, 2013.

Regents’ on-cycle files for the period ending October 26, 2013 will also be processed on this date.

Tuesday, November 5, 2013

Regents’ Run B off-cycle payroll files for the period ending October 26, 2013 must be received by the Department of Administration by 4:00 PM on November 5, 2013 in order to be processed on Wednesday, November 6, 2013.

Wednesday, November 6, 2013

The Run B off-cycle for the period ending October 26, 2013 will be processed November 6, 2013. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 12, 2013 (These checks would normally be dated Monday, November 11, 2013).

Friday, November 8, 2013

Payday for the payroll period ending October 26, 2013.

First opportunity for Time and Labor interface agencies to have time and leave files for the period ending November 9, 2013 submitted to the Department of Administration for processing by 5:00 PM on November 8, 2013. (These files would normally be due Monday, November 11, 2013). Last opportunity to submit files will be noon on Tuesday, November 12, 2013.

Regents’ Run C off-cycle payroll files for the period ending October 26, 2013 must be received by the Department of Administration by 4:00 PM on November 8, 2013.

Monday, November 11, 2013
 

Veterans' Day Holiday

Tuesday, November 12, 2013

Time and Labor interface agencies can submit time and leave files for the period ending November 9, 2013 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on November 12, 2013.

Paysheets for the on-cycle payroll for the period ending November 9, 2013 will be created on Tuesday, November 12, 2013. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 12, 2013 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 9, 2013 will also occur November 12, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on November 12, 2013 in order for a paycheck record to be created.

The Run C off-cycle for the period ending October 26, 2013 will be processed November 12, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 15, 2013.

Wednesday, November 13, 2013

The second on-cycle preliminary pay calculation for the period ending November 9, 2013 will occur November 13, 2013.

Thursday, November 14, 2013

The third on-cycle preliminary pay calculation for the period ending November 9, 2013 will occur November 14, 2013.

Regents’ on-cycle payroll files for the period ending November 9, 2013 are due to the Department of Administration by 4:00 PM on November 14, 2013.

Friday, November 15, 2013

Final pay confirmation for the on-cycle payroll for the period ending November 9, 2013 will occur November 15, 2013. All employees’ payable time must be approved, by 6:00 PM on November 15, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 15, 2013 in order to be reflected in the final paycheck created for the employee.

Regents’ Run A off-cycle payroll files for the period ending November 9, 2013 must be received by the Department of Administration by 4:00 PM on November 15, 2013.

Monday, November 18, 2013

The Run A off-cycle for the period ending November 9, 2013 will be processed November 18, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 22, 2013.

The Regents’ on-cycle files for the period ending November 9, 2013 will also be processed on this date.

Tuesday, November 19, 2013

Regents’ Run B off-cycle payroll files for the period ending November 9, 2013 must be received by the Department of Administration by 4:00 PM on November 19, 2013.

Wednesday, November 20, 2013

The Run B off-cycle for the period ending November 9, 2013 will be processed November 20, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 25, 2013.

Friday, November 22, 2013

Payday for the payroll period ending November 9, 2013.

First opportunity for Time and Labor interface agencies to have time and leave files for the period ending November 23, 2013 submitted to the Department of Administration for processing by 5:00 PM on November 22, 2013. (These files would normally be due Monday, November 25, 2013.) Last opportunity to submit files will be noon on Monday, November 25, 2013.

Regents’ Run C off-cycle payroll files for the period ending November 9, 2013 must be received by the Department of Administration by 4:00 PM on November 22, 2013.

Monday, November 25, 2013

Time and Labor interface agencies can submit time and leave files for the period ending November 23, 2013 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on November 25, 2013.

Paysheets for the on-cycle payroll for the period ending November 23, 2013 will be created on Monday, November 25, 2013. (Paysheets would normally be created on Tuesday, November 26, 2013.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 25, 2013 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 23, 2013 will also occur November 25, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 23, 2013.

The Run C off-cycle for the period ending November 9, 2013 will be processed November 25, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated December 2, 2013. (These checks would normally be dated Thursday, November 28, 2013.)

Tuesday, November 26, 2013

The second on-cycle preliminary pay calculation for the period ending November 23, 2013 will occur November 26, 2013.

Regents’ on-cycle files for the period ending November 23, 2013 must be received by the Department of Administration by 4:00 PM on November 26, 2013.

Wednesday, November 27, 2013

Final pay confirmation for the on-cycle payroll for the period ending November 23, 2013 will occur November 27, 2013. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 27, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 27, 2013 in order to be reflected in the final paycheck created for the employee.

Regents’ Run A off-cycle payroll files for the period ending November 23, 2013 must be received by the Department of Administration by 4:00 PM on November 27, 2013.

Thursday, November 28, 2013
 

Thanksgiving Holiday

Friday, November 29, 2013
 

Thanksgiving Holiday

Attached is a calendar for the month of November 2013, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.

SG:NTR:ccl

Attachment

The Social Security wage base for OASDI will be $117,000 for calendar year 2014.  This is a $3,300 increase from the wage base of calendar year 2013 of $113,700.  The OASDI tax rate for 2014 will be 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2014 will be $7,254.00.   There continues to be no limit on wages subject to the Medicare tax in 2014.  Medicare tax rates for employers and employees remain at 1.45%.  However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages.  Employers will not pay the extra tax.

For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).  Federal employees hired after January 1, 1984 will have a maximum contribution of $7,254.00 for OASDI and no maximum for Medicare.  The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.

For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.

The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.  Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.

SG:NTR:kao

Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2014 as follows:

457(b) Deferred Compensation:

The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit remains unchanged at the lesser of $17,500 or 100% of includible compensation.

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit remains unchanged at $35,000.  The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.

The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) remains the same with an annual contribution limit of $5,500 for 2014 making the total $23,000.

Please note that the two different catch-up provisions cannot be used concurrently.             

403(b) Tax Sheltered Annuities (TSA):

The limit on annual contributions to a TSA for 2014 is the lesser of $52,000 or 100% of compensation, increased from $51,000 for 2013.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $255,000 (for 2013) to $260,000 (for 2014).  The $260,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995).  For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $26,000 ($260,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution).  For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $36,400 ($260,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).

For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17).  The 401(a) (17) limit is increased from $380,000 (for 2013) to $385,000 (for 2014).  However, participants should note their maximum annual compensation limit will be $371,428.57, since the $371,428.57 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $52,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax Sheltered Annuities) remains unchanged at $17,500 for 2014.  The age 50 or older catch-up provision remains the same at $5,500 for 2014.  Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $5,500.   Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000.  Employees may use both the age 50 catch-up provision and 15-year rule concurrently.  IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($17,500 for 2014) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.

Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).

Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees.  Please note that this circular only provides a summary of the law in this area.  Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).

Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans.  Employees eligible for both plans continue to be able to defer the full amount to both plans.

SG:NTR:kao

As a result of Governor Brownback declaring Wednesday, December 25 as a state holiday, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 7, 2013 and December 21, 2013:

Monday, December 9, 2013

The Run 'C' off-cycle for the payroll period ending November 23, 2013 continues to be scheduled for December 9, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will remain Thursday, December 12, 2013.

Time and Labor Interface agencies must have time and leave files for the period ending December 7, 2013 submitted to the Department of Administration for processing by 5:00 p.m. on December 9, 2013.

Tuesday, December 10, 2013

Paysheets for the on-cycle payroll for the period ending December 7, 2013 will be created as usual on Tuesday, December 10, 2013. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 10, 2013 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 7, 2013 will also occur December 10, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 p.m., payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.

Wednesday, December 11, 2013

The second on-cycle preliminary pay calculation for the period ending December 7, 2013 will occur December 11, 2013.

Thursday, December 12, 2013

The third on-cycle preliminary pay calculation for the period ending December 7, 2013 will occur December 12, 2013.

Regents’ on-cycle payroll files for the period ending December 7, 2013 are due to the Department of Administration by 4:00 p.m. on December 12, 2013.

Friday, December 13, 2013
Final pay confirmation for the on-cycle payroll for the period ending December 7, 2013 will occur December 13, 2013. For SHARP agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 13, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 13, 2013 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, December 20, 2013.

Regents’ Run ‘A’ off-cycle payroll files for the period ending December 7, 2013 are due to the Department of Administration by 4:00 p.m. on December 13, 2013.

Monday, December 16, 2013
The Run ‘A’ off-cycle for the period ending December 7, 2013 will be processed December 16, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, December 20, 2013.

The Regents’ on-cycle files for the period ending December 7, 2013 will be processed.

Tuesday, December 17, 2013

Regents’ Run ‘B’ off-cycle payroll files for the period ending December 7, 2013 must be received by the Department of Administration by 4:00 p.m. on December 17, 2013 in order to be processed on Wednesday, December 18, 2013.

Wednesday, December 18, 2013

The Run 'B' off-cycle for the payroll period ending December 7, 2013 continues to be scheduled for December 18, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘B’ off-cycle will be dated Monday, December 23, 2013.

Friday, December 20, 2013

Payday for the payroll period ending December 7, 2013.

Regents’ Run ‘C’ off-cycle payroll files for the period ending December 7, 2013 must be received by the Department of Administration by 4:00 p.m. on December 20, 2013.

First opportunity for Time and Labor interface agencies to have time and leave files for the period ending December 21, 2013 submitted to the Department of Administration for processing by 5:00 p.m. on December 20, 2013. (The files would normally be due on Monday, December 23, 2013). Last opportunity to submit files will be noon on Monday, December 23, 2013.

Monday, December 23, 2013

The Run 'C' off-cycle for the payroll period ending December 7, 2013 continues to be scheduled for December 23, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will be Friday, December 27, 2013. (It would normally be on Thursday, December 26, 2013).

Please note that paysheets for the on-cycle payroll for the period ending December 21, 2013 will be created on Monday, December 23, 2013, instead of the normal day on Tuesday, December 24, 2013 as previously provided on the 2013 SHARP Bi-Weekly On-cycle Payroll Schedule, to allow for maximum preliminary payroll calculation opportunities. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 23, 2013 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending December 21, 2013 will also occur December 23, 2013. (It would normally be on Tuesday, December 24, 2013.) For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.

Time and Labor interface agencies can submit time and leave files for the period ending December 21, 2013 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on December 23, 2013.

Tuesday, December 24, 2013

The second on-cycle preliminary pay calculation for the period ending December 21, 2013 will occur December 24, 2013.

Wednesday, December 25, 2013
Christmas Holiday

Thursday, December 26, 2013

The third on-cycle preliminary pay calculation for the period ending December 21, 2013 will occur December 26, 2013.

Regents’ on-cycle payroll files for the period ending December 21, 2013 are due to the Department of Administration by 4:00 p.m. on December 26, 2013.

Friday, December 27, 2013

Final pay confirmation for the on-cycle payroll for the period ending December 21, 2013 will occur December 27, 2013. For SHARP agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 27, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 27, 2013 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 3, 2014.

Regents’ Run ‘A’ off-cycle payroll files for the period ending December 21, 2013 are due to the Department of Administration by 4:00 p.m. on December 27, 2013.

Monday, December 30, 2013

The Run ‘A’ off-cycle for the period ending December 21, 2013 will be processed December 30, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, January 3, 2014.

The Regents’ on-cycle files for the period ending December 21, 2013 will be processed.

Regents’ Run ‘B’ off-cycle payroll files for the period ending December 21, 2013 are due to the Department of Administration by 4:00 p.m. on December 30, 2013.

Attached is a revised calendar for the month of December 2013 that highlights the payroll processing schedule changes due to the December 25th Christmas holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.

Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.

Calendar  doc

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As 2013 calendar year-end approaches, the Office of Systems Management is making preparations for the issuance of calendar year 2013 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2013 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2014 balances; a corrected W-2 (Form W-2C) for 2013 will not be issued for the employee involved.

FINAL 2013 PAYCHECK

The final on-cycle paychecks for calendar year 2013 will be issued December 20, 2013. Payroll transactions for the December 20, 2013 on-cycle paychecks will be posted to SMART on Wednesday night, December 18, 2013. The final off-cycle paychecks for calendar year 2013 will be issued on December 27, 2013 (generated from the off-cycle processed on December 23, 2013).

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 23, 2013 to enter paycheck adjustment requests for any 2013 paychecks. Adjustments processed in the December 23, 2013 off-cycle payroll will be reflected on the employee’s 2013 Form W-2.Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2013 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Systems Management, Payroll Section by 5:00 p.m. on Monday, December 16, 2013.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2013 for inclusion in the December 23, 2013 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2013 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2013 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.

Adjustment requests entered after December 23, 2013 which are adjusting paychecks issued prior to January 1, 2014 will not result in a W-2C; the adjustment will update the employee’s 2014 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 23, 2013 will update the employee’s 2014 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 7, 2013, paid December 20, 2013 are due to the Department of Administration by 4:00 p.m. on December 12, 2013.

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2013 Paycheck Reversals

Regent Institutions must submit all transmittals for 2013 paycheck reversals by 4:00 p.m. on Friday, December 20, 2013 in order to update the employee’s 2013 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2014 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2014 submitted after 4:00 p.m. on December 20, 2013 should default the pay adjust check date to January 1, 2014.

2013 Adjustments and Supplementals

In order to update employee balances for 2013, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 20, 2013. The Run C off-cycle for the pay period ending December 7, 2013 generated on the night of Monday, December 23, 2013 will have a check issue date of December 27, 2013; all activity for this off-cycle will be reflected in the employees’ 2013 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2013 date.

2014 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2014, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 20, 2013, will be considered to be 2014 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2014 business, the employee’s 2014 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2014 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2014, agencies should default the pay adjust check date to January 1, 2014).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2014, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2014 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2014 payroll balances.

Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years andlimited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 20, 2013 deadline for the December 23, 2013 Run C’s off-cycle payroll will not be processed until the April 14, 2014 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 7, 2014. The deadline for submitting payroll interface files for the April 14, 2014 off-cycle is 4:00 p.m. on Friday, April 11, 2014.

GENERAL REMINDERS

United Way and Community Health Charities

The deduction END date on the general deduction page for 2013 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 08, 2013 and December 21, 2013 in order for the last 2013 deduction to be taken on the paycheck issued December 20, 2013. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2014, agencies can enter a new row effective-dated between December 08, 2013 and December 21, 2013 in order for the first deduction for United Way or Community Health Charities for 2014 to be taken on the January 3, 2014 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 7, 2014 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2014.

A batch process will run the night of December 20, 2013 to establish the fee portion (deduction code UTFXXX) of the 2014 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2014. This process will reduce the 2014 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2014 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 23, 2013 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2014 United Way/Community Health Charities deductions after December 20, 2013, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.

Tax Information

Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 2, 2013 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 2, 2013 to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2014. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2014 W-4s. Employees should submit new paper W-4s by December 11, 2013 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 19, 2013 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2014.

The KPAY320 will be processed the evening of December 19, 2013. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2014 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2014 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.

For any 2014 paper W-4s (for employees claiming exemption from withholding) received between December 19, 2013 and January 1, 2014, agency personnel will need to enter the data with a January 2, 2014 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2014 for any electronic W-4s received in this time period.

The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change. See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4.

The 2014 Form W-4 will be posted to the Office of Systems Management’s website as soon as it is available from the IRS.

The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 19, 2013 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2014. The new tax data row will be dated January 1, 2014. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2014 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.

Deduction Information

All deductions for calendar year 2014 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.

-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.

-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.

-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.

-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month except for January, deducted on the second and third pay dates of the month.

Arrearages/Advances

Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 23, 2013. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.

Any arrearage collections made by personal reimbursement that are collected after December 13, 2013, and prior to December 23, 2013, must be sent to the Office of Systems Management, Payroll Section for processing in order to impact the 2013 W-2.

Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2013 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 7, 2013 by personal reimbursement as soon as possible.
 

W-2s

Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 24, 2013 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 24, 2013 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 20, 2013. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.

The W-2 programs will be executed anytime between December 26, 2013 and January 2, 2014. Electronic W-2 forms through Employee Self Service will be available on or before January 2, 2014. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2014. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.

December Calendar

Attached is a revised calendar for the month of December 2013 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.

If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.

Attachment
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The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2014.  Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2014.  In order to use the attached tables, income must be annualized.  To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.  In addition, the value of one withholding allowance has increased to $3,950 for 2014.   

Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2014 has increased to $2,250.  In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments.  Currently, the IRS has not yet released Publication 1494 for 2014.

IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually.  Employees are eligible for the exempt status if the following criteria are met:  1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.   

An e-mail notification was sent on December 2, 2013 to all SHARP employees who were exempt from federal withholding in 2013.  The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2014.  The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2014 W-4s.  The IRS has indicated that the 2014 Form W-4 will be available in the near future at the IRS website at http://www.irs.gov/ and will also be available at the Office of Systems Management website on the Forms Page once it is released by the IRS.  Employees should submit their new W-4s as soon as possible to allow adequate time for processing.  Agency personnel have until 6:00 p.m. on December 19, 2013 to enter all paper W-4s into the system.  It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered.  Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2014. 

The KPAY320 will process during the batch cycle generated on the evening of December 19, 2013.  This process will search for employees for whom a W-4 notification was sent.  If a new W-4 has not been received, a January 1, 2014 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’. 

For any Form W-4s for 2014 received between December 19, 2013 and January 1, 2014, agency personnel will need to enter the data with a January 2, 2014 effective date.   Agency Workflow Administrators also will need to change the effective date to January 2, 2014 for any electronic FormsW-4s for 2014 received in this time period.  Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.    

IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually.  Employees who claimed a non-resident alien exempt status in calendar year

2013 must file a new 8233 form for calendar year 2014 if they wish to continue their non-resident alien status.  As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.   

The KPAY320 processed on December 19, 2013,  will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2014.  The new tax data row will be dated January 1, 2014.  Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2014 has been submitted. 

The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 19, 2013. The report will be available in the agency directory on the MVS on Friday, December 20, 2013.  A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.

The Office of Systems Management, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies.  Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems. 

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Attachment:  Tables for Percentage Method of Withholding

The Internal Revenue Service (IRS) has announced the standard mileage rate will decrease to 56.0 cents beginning January 1, 2014 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle.  The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.  The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income.  See Informational Circular No. 05-P-023*.  Using this methodology, fringe benefit income is calculated by multiplying the 56.0 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle.  To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year.  The Cents-Per-Mile method may not be used for ‘luxury’ vehicles.  If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2014 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $16,000 for a car (unchanged from 2013), and $17,300 (up from $17,000 in 2013) for a passenger truck or van.  Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.

Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate. 

*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section.  The reference should be:  Kansas Administrative Regulation 1-17-2a(b)(1).

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For plan year (PY) 2014, the Health Care Commission approved changes which include making the employer contribution amount to a Health Savings Account (HSA) benefit option in two equal installments.  The first installment will be made during the second pay period in January (January 17, 2014 paycheck date) and the second installment will be made during the first pay period in July (July 3, 2014 paycheck date).  This employer contribution will be processed in SHARP for each employee participating through the State of Kansas health insurance program in a High Deductible Health Plan (HDHP) and making the required employee contribution to an HSA. For employees who still have a balance in their Health Care Flexible Spending Account on December 31, 2013, both the prorated bi-annual employer contribution and employee contributions will be delayed until the first pay date in April, 2014.  Employee HSA contributions will continue to be deducted semi-monthly throughout PY 2014.  However, the January 2014 employee deductions will occur on the second and third paychecks of January.  All other employee deductions for 2014 will occur as normal on the first and second paychecks of the remaining months.

For all three HDHP benefit options, the combined total for both HSA bi-annual employer contribution amounts for full-time employees will be $1,500 for single coverage and $2,250 for dependent coverage. For part-time employees, the combined total for both HSA bi-annual employer contribution amounts will be $1,125.20 for single coverage and $1,687.60 for dependent coverage.  Prorated employer contribution amounts for all employees will be as follows depending on the month the employee is enrolled for coverage:

For employees who are enrolled after the beginning of 2014 and for when a hire occurs in the middle of the month, the coverage begin date entered into SHARP should be effective for the beginning of the month following 30 days from the date of hire and the appropriate bi-annual prorated employer contribution should also be processed effective on the first paycheck of that month.  For example, a new employee is hired on June 17, 2014 and enrolls in HSA.  The coverage begin date should be entered effective August 1, 2014 and the HSA prorated bi-annual employer contribution for August will be processed on their first paycheck in August.

For all employees, the agency GHI composite rate cost for the HDHP benefit options will continue to be reduced by the amount of the semi-monthly HSA employer contribution and the HSA bi-annual/prorated employer contributions will be added as flat employer contributions to the FSA benefit setup tables in SHARP.  Both GHI and HSA employer contributions will be charged to Account Code 519500.

To accommodate the new 2014 HSA payroll processing procedures in SHARP, the setup on the Deduction Table for all current HSA employee only deduction codes in SHARP for Plan Types 6Y and 6Z will be changed to allow deductions on the third paycheck of a month effective December 21, 2013.  

As a reminder, Regents should not be using the HSR%%% plan type 67 benefit plans/deduction codes since it was decided among Regents in 2013 to only use the HSM%%% plan type 67 benefit plans/deduction codes instead.

The Office of Systems Management, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account processing.  Regents’ institutions are responsible for ensuring that the new Health Savings Account processing procedures are implemented in their individual systems. 

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Beginning with the 2014 benefit year, Flexible Spending Account (FSA) deduction information for Regent institutions and State agencies will be combined and included on one KPAYFSA2 remittance file.  Effective for the pay period beginning December 8, 2013, ending December 21, 2013, and paid January 3, 2014, one KPAYFSA2 file will be sent centrally to the new FSA vendor for 2014, NueSynergy.  Currently, each Regent institution and the State supply a remittance file to the FSA vendor.  Regent institutions will no longer be required to submit their remittance file to the FSA vendor.

No additional FSA information will be required of Regent institutions.  All required information will be pulled from the information in SHaRP already being provided through the open enrollment process and KREGBEN1 (for those Regent institutions using this file), and from normal payroll processing.

FSA deductions will be processed and balanced as part of the existing payroll processes that are used to reconcile other remittances.  Kansas Department of Health and Environment will be responsible for balancing and submitting the combined remittance files to the new vendor.

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Pursuant to Sub House Bill (HB) 2333 passed in the 2012 legislature, the KPERS employee contribution rate for Tier 1 members will increase from the current 4% of such member’s compensation to 5% beginning January 1, 2014.  The new contribution rate of 5% will be deducted from Tier 1 member’s pay effective with the payroll period beginning January 5, 2014 and ending January 18, 2014, paid January 31, 2014.  This rate increase also includes Tier 1 correctional and legislative employees.  In addition, the Tier 1 employee rate is scheduled for an increase to 6% on January 1, 2015 and after.

Along with the contribution rate increases, the legislation also stipulates that the KPERS benefit multiplier for compensation earned by Tier 1 members on and after January 1, 2014 will be increased to 1.85%.  The KPERS benefit multiplier for compensation earned prior to January, 2014 will stay at the current 1.75%.

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to reflect these changes in employee contribution rates.  Regent institutions are responsible for ensuring these rate changes are reflected in their individual systems.

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The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2013 W-2 Wage and Tax Statement for each employee of your agency.  Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2013.  This report should be downloaded and retained by your agency to meet your historical record needs.  This report will be removed from your MVS mailbox and will be no longer available for downloading after January 28, 2014.

The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN).  Totals are included for each 10-digit department number as well as a grand total summary for the entire agency.  The 'DIST. TOTAL' represents the total number of 2013 W-2's that were printed for your agency.  The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with mailing the 2013 W-2's.

In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments.  The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.

The standard W-2 will be used again for 2013.  The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records).  For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service.  For those receiving a printed W-2, the form will be printed and pressure-sealed.

Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2.  If the employee has no mailing address, then the employee's home address will be used for mailing the W-2.  Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address.  In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee.  The return address for all W-2 forms mailed this year will again be the agency address.

All paper 2013 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 15, 2014.  At that time, they should be destroyed. 

In cases where the 2013 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation.  For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation.  State agencies are not authorized to make changes on W-2 forms.  The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.

For employees needing duplicate W-2’s for years 2008 through 2013, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service at https://sharp.ks.gov/psp/ESS/, and then viewing and printing the duplicate using ‘View W-2/W-2c Forms’.  For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested.  Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who retired or terminated from State service on or after September 16, 2011, have access to consent to view/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2.  For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections.  Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct.  The employee will also need to specify for which tax year (2013, 2012, 2011, 2010, 2009, or 2008) the reissued W-2 is needed.  Duplicate W-2’s for 2008- 2012 are currently available, and duplicate W-2’s for 2013 will be available starting on Wednesday, February 12, 2014.  Please note that duplicate W-2’s for the year 2008 will no longer be available after mid-April 2014.

The Office of Systems Management, Payroll Services will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service.  Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday afternoon and mailed the next day.  Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services.  Agencies are requested to submit one blanket request for duplicate 2013 W-2's for each printing.  The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID.  Requests for duplicate W-2's for years prior to 2013 should be submitted separately.  Duplicate 1042S form requests should also be submitted separately.  Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-3887.

Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms.  The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form.  In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions.  The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances.  Employee ID and year are required to run this report.  See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318. 

Please note that on-cycle and off-cycle paychecks dated December 20, 2013 and off-cycle checks dated December 23, 2013 and December 27, 2013 are included in the 2013 W-2 amounts.

Attachment A

Attachment B

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In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2014 W-2 production reports will be produced throughout the calendar year.  By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed.  The following is a list of the dates the 2014 W-2 production reports are scheduled to be generated:

• Friday, February 14, 2014
• Friday, March 14, 2014
• Friday, April 25, 2014
• Friday, May 9, 2014
• Friday, June 6, 2014
• Thursday, July 3, 2014
• Friday, August 1, 2014
• Friday, August 29, 2014
• Friday, September 26, 2014
• Friday, October 24, 2014
• Friday, November 7, 2014
• Wednesday, November 19, 2014
• Wednesday, December 3, 2014
• Monday, December 8, 2014
• Monday, December 15, 2014
• Monday, December 22, 2014
• Monday, December 29, 2014 - Tentative Final Load

Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by the Office of Systems Management.  Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner.  No action is required by the agency on the KTXPR55.  Once the W-2’s for 2014 are complete, a final KTXPR55 report will be generated for each agency’s information and review.

In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely.  It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.

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The organization dues for members of Fraternal Order of Police, Lawrence Lodge #2, will change from $11.54 to $12.96 per biweekly payroll period.  The new rate will become effective with the payroll period beginning January 5, 2014 and ending January 18, 2014, paid January 31, 2014.

The amounts listed above include the deduction amount (ORG060 deduction code) and the $0.06 service fee (ORF060 deduction code) added together. The new rate for deduction code ORG060 will increase from $11.48 to $12.90 and the fee (ORF060) will remain at $.06 (for a total deduction of $12.96 per biweekly payroll period).

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system.  Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.

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The organization dues for members of the AFSCME Council 72, Local 1357, will increase from $14.77 to $15.32 per biweekly payroll period.  The new rate will become effective with the payroll period beginning January 5, 2014 and ending January 18, 2014, paid January 31, 2014.

The amounts listed above include the deduction amount (ORG357 deduction code) and the $0.06 service fee (ORF357 deduction code) added together. The new rate for deduction code ORG357 will increase from $14.71 to $15.26 and the fee (ORF357) will remain at $.06 (for a total deduction of $15.32 per biweekly payroll period).

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system.  Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.

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The payroll calculation tool was developed to assist employees and agencies with creating paycheck models outside of the SHaRP payroll system.  Employees can use the tool to calculate what their paycheck amounts will be when they use different tax and benefit option scenarios.   

It is strongly encouraged that agency staff refers retiring and terminating employees to the tool when they are trying to determine what tax and benefit options the employee should use for their final paycheck.  The tool will also be helpful to employees wishing to review the impact to their paycheck of the increased employee KPERS contribution rate which takes effect with paychecks dated on or after January 31, 2014.  

The Payroll Calculation Tool can be accessed through the State Employee Service Center website at http://www.kansas.gov/employee/.  Once the page comes up, select the Payroll Calculation hyperlink on the right side of the screen, under the Employee Self-Service heading.

The calculation tool contains three tabs.  The first tab is the Information tab.  This tab provides an explanation of what the tool is used for and other important information.  The second tab is the Data Entry tab.  This tab is where the user will enter all of the necessary information for the calculation.  Refer to the instructions by each yellow box for additional information on the data to enter.  It is helpful to have a paycheck stub or screen print to use for reference when entering data on this tab.  After all the data is entered, click on the green box ‘Click here to see your result’ link at the bottom of the page.  The third tab is the Estimated Payroll Calculation tab.  This tab will display all the results of the calculation after the user clicks on the result link on the second tab. 

The Office of Systems Management, Payroll Processing Team has made the necessary updates to the tool to reflect 2014 rates. 

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DATE:  February 26, 2014
SUBJECT:  Change in Organization Dues Deduction for FOP Lodge #37

EFFECTIVE DATE:  Payroll Period Ending March 1, 2014
OSM CONTACT:  Nancy Ruoff   (785) 296-2853    (Nancy.Ruoff@da.ks.gov)

APPROVAL: 

Nancy Ruoff

(Original Signature on File)

SUMMARY: Organization Dues Change for ORG037

The organization dues for members of the FOP Lodge #37 will change from $17.31 to $20.31 per biweekly payroll period.  The new rate will become effective with the payroll period beginning February 16, 2014 and ending March 1, 2014, paid March 14, 2014.

 
The amounts listed above include the deduction amount (ORG037 deduction code) and the $0.06 service fee (ORF037 deduction code) added together. The new rate for deduction code ORG037 will increase from $17.25 to $20.25 and the fee (ORF037) will remain at $.06 (for a total deduction of $20.31 per biweekly payroll period).

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system.  Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

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The KPERS Board has approved the implementation of Spousal Group Life through payroll deduction. In order for employees to be eligible for Spousal Group Life, the employee needs to be employed in a KPERS covered position.  However, for KPERS KP&F (Kansas Police and Fireman) members only, employees need to be enrolled in Optional Group Life before they are eligible for Spousal Group Life.   Open enrollment for this new benefit was conducted February 1-28, 2014.

Coverage for spousal group life will be effective May 1, 2014.  The new deduction codes will be added to SHaRP and the first deduction will be processed effective for the payroll period beginning April 27, 2014, ending May 10, 2014, paid May 23, 2014. 

The new Spousal Group Life after-tax deduction codes and benefit plans are: 

The Administrative Fee for the Spousal Group Life is a flat $0.20 per deduction and is processed just like the administrative fee for the employee Optional Group Life.

Automatic enrollment of all SHARP/Regent Optional Group Life will continue to occur in SHaRP via the KBEN218 interface file sent by KPERS.  Any spouse enrolling into Spousal Group Life must have the Dependent/Beneficiary Type set to ‘O’ for ‘Both’ on the Dependent/Beneficiary page in SHaRP.  The Regent agency KREGBEN files should also reflect this value.  The first enrollment file and enrollment/confirmation letters containing spousal group life are anticipated to be received in early April from KPERS.  The Regent agencies will have two options for creating enrollment records in their Regent system.  Option 1 is to continue to enroll individuals manually or Option 2 is the use of the KBEN218 interface file to automate the enrollment.  SHaRP will continue to generate a termination interface to KPERS based on terminations interfaced by Regent agencies to SHaRP.  Remittance of deductions for spousal group life will be included in the existing remittance information for employee optional group life submitted monthly to KPERS.

The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system.  Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.

Questions regarding the system set-up/interfaces for this new payroll deduction can be directed to Earl Brynds (Earl.Brynds@da.ks.gov or 785.296.5376) or to Heather DeBusk (Heather.DeBusk@da.ks.gov or 785.296.2434).

Questions regarding the spousal group life benefit should be directed to Minnesota Life at:

Email: topekabranchoffice@securian.com

In Topeka: (785) 354-0783

Toll Free: 1-877-215-1476

Or contact the KPERS Info line at 1-888-275-5737 or in Topeka at (785) 296-6166 and they will direct calls for help with Spousal OGL questions.

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A recent review of the PAY007 Deductions in Arrears Report indicated a significant number of unresolved, outstanding payroll arrearages. As a result, Payroll Services, with the approval of the Office of Financial Management, is instituting new policies and procedures to proactively work with agencies to address outstanding payroll arrearages.

As a one-time clean-up option, a list of arrearages over $25, owed by an employee who terminated employment more than five years ago, will be mailed to responsible agencies for approval to allow these debts to be written off without them being sent to the State’s Setoff Program for collection.   Agencies have the option to not approve the write-off and commit to collect the debts before December 1, 2014 according to the procedures specified in the Policy and Procedure Manual Filing Number 8001, K.A.R.s 1-2b-1 and 1-2b-2.

All outstanding payroll debts less than five years old, whether for an employee who is terminated or active, must continue to be pursued by the agency for collection and the necessary collection steps completed prior to calendar year end.  Beginning in 2014, at the end of each calendar year, agencies will be notified via the SHARP Infolist of the deadline for providing notice to Payroll Services of arrearage recoveries which are in process and should not be submitted to Setoff.  Following the close of the notification period, Payroll Services will generate a file of all outstanding payroll arrearages, excluding GHI advances for active employees and arrearages requested to be excluded by agencies, to be sent directly to the State of Kansas’ Setoff program.  The arrearages will then be removed from the SHARP system.

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This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.

Note:  Another informational circular regarding the fiscal year 2015 payroll contribution rates will be issued as soon as the information becomes available.

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted.  Supplementals and adjustments that are processed for pay periods ending on or before June 7, 2014 will use fiscal year 2014 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted).  Supplementals and adjustments for pay period ending dates greater than June 7, 2014 will use fiscal year 2015 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.

Tax Rates

Taxes for supplementals and adjustments will be calculated using the tax rates effective for the paycheck issue date for the off-cycle payroll being processed.  Taxes include: OASDI (Social Security), Medicare, federal withholding tax, state withholding tax, local withholding tax, and unemployment compensation insurance.  Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.

Fiscal Year Expenditure Impact

Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted.   Please note, the Run C off-cycle (scheduled for June 23, 2014, paid June 26, 2014) for the pay period ending June 7, 2014 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2014 expenditures. 

The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.

Budget End Date and Fiscal Year Changes

The Budget End Date and Fiscal Year on the Department Budget tables will be updated centrally at the beginning of the fiscal year.  This process is scheduled to run during the batch cycle the night of June 15, 2014 and should be completed by Monday morning, June 16, 2014.  In that process, a new row will be added to the Department Budget tables with an effective date of June 8, 2014 (beginning date of the first on-cycle payroll charged to FY2015).  The Budget End Date will be June 7, 2015. 

Agencies should send Combination Code files or any Department Budget Table files for FY15 changes into Payroll Services by Friday, June 13, 2014.  These files will be loaded into SHARP beginning Monday, June 16, 2014. Agencies should not enter any rows with an effective date greater than or equal to June 8, 2014 until after the FY2015 insert has been completed. When adding new rows for FY2015, agencies should verify that June 7, 2015 was used as the Budget End Date for FY2015.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday, June 20 after the ‘B’ off-cycle process has been completed for the June 7, 2014 pay period end date.  A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 20.  Agencies are encouraged to complete all FY14 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 18, 2014, to take advantage of this early run of the KPAYGL5C.    Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 23, 2014 will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 25, 2014.

GHI Adjustments

As of July 1, 2014, NO GHI adjustments can be processed for any pay period prior to the December 22, 2012 pay period end date, which was the beginning of contract year 2013.  Contact SEHP Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 at Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan about any event maintenance changes that may affect claims processing for contract year 2012 or prior.

Regents’ Institutions Responsibilities

Regents’ institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the SMART INF06 interface files affect the correct fiscal year expenditures. 

Reminders

To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:

1. Enter job data changes prior to the creation of paysheets.Paysheets for on-cycle payrolls are generally created on the Tuesday night following the end of the payroll period.Some changes to the employee’s job data information (i.e. change in FLSA status) that are entered after the creation of the paysheets will not be reflected in the employee’s on-cycle paycheck for the period and will require special handling.
2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation.The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.

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Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2015.  To implement this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 8, 2014 and ending June 21, 2014, paid July 3, 2014:                                 

Employees with Attorney General who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:

The parking rates for Secretary of State employees are listed below and do not change:

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay.  Regents’ institutions are responsible for ensuring that this change is made in their individual systems.  

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Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete.  It is not necessary to return this form to the Office of Systems Management.  The completed form should be maintained at your agency.  If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2015 will require entry into the SHARP v9.1 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income.  FY2015 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 23, 2014 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 21, 2014 (paychecks dated July 3, 2014).   

Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency.  Regents’ are responsible for updating any rate changes into their payroll system.

Attachment

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The attached schedules contain employer’s contribution rates for KPERS, unemployment insurance, state leave assessment, group health insurance, and worker’s compensation insurance for fiscal year 2015.  The fiscal year 2015 rates will become effective with the on-cycle payroll period beginning June 8, 2014, ending June 21, 2014 and paid July 3, 2014.  The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2014.

For Fiscal Year 2015, the employer’s contribution to KPERS Death and Disability Insurance will be 0.85% (except for retirement codes J1, J2, J3 which are .4%).  Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustments with payroll period end dates that contain an original check date within a moratorium period.  Previous moratoriums for KPERS Death and Disability Insurance contributions were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; between April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; between April 1, 2012 and June 30, 2012; and between April 1, 2013 and June 30, 2013.

For Regent institutions, moratoriums do not extend to members of Board of Regents retirement plans who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(8), which specifically requires the “employee” to remit the required contribution while on leave without pay.

Legislation passed in 2006 changed rules about KPERS retirees who work after retirement for the same or a different KPERS employer.  More detailed information on these changes can be found in the KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm.  These changes do not affect KP&F or the Retirement System for Judges.  For retirees who begin work for a different KPERS employer, the employer must make contributions based on retiree compensation.  This includes all retirees who first begin actively working in KPERS-covered positions on or after July 1, 2006.  Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’.  For fiscal year 2015, employer rates are 10.80% Actuarial Employer Rate, 5.00% Statutory Employer Rate, for a Total Combined Rate of 15.80%.  Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.

The Office of Systems Management, Payroll Systems Team will update the SHARP system to reflect the changes in employer’s contribution rates.  Regents’ institutions are responsible for ensuring the changes in rates are made in their individual systems.  Regents’ institutions are also responsible for ensuring that the SMART INF06 impacts the correct fiscal year and account codes.

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Attachment 1
Attachment 2
Attachment 3

As an update to Informational Circular No. 14-P-028, in addition to the parking rates listed on the circular, the following parking codes and associated administrative fee, previously specified on the circular as for employees with Attorney General, will also apply to the Kansas Department of Commerce employees who park in the Curtis Building Garage:

The above change will take effect with the payroll period beginning June 8, 2014 and ending June 21, 2014, paid July 3, 2014.

The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay.  Regents’ institutions are responsible for ensuring that this change is made in their individual systems.  

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