Kansas Department of Administration

FY 2004

04-P-001 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (Supersedes 03-p-009)
DATE: August 7, 2003
SUBJECT: Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30
EFFECTIVE DATE: Payroll Period Ending August 16, 2003
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University Kansas National Education Association, deduction code 'ORG030', will change from $ 22.50 to $ 23.30 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 3, 2003 and ending August 16, 2003, paid August 29, 2003.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after August 29, 2003.

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04-P-002 Change in Organization Dues Deduction Amounts (Supersedes 03-p-010)
DATE: August 15, 2003
SUBJECT: Change in Organization Dues Deduction Amounts
EFFECTIVE DATE: Payroll Period Ending September 13, 2003
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Organization Dues Changes for KAPE

The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning August 31, 2003 and ending September 13, 2003, paid September 26, 2003 as follows:

Deduction Code Hourly Rate of Pay Bi-Weekly Salary Dues Deduction
ORG001 $ 7.35 or Less $ 588.00 or Less $ 7.10
ORG002 $ 7.36 - $ 8.51 $ 588.80 - $ 680.80 $ 7.60
ORG003 $ 8.52 - $ 9.39 $ 681.60 - $ 751.20 $ 8.10
ORG004 $ 9.40 - $ 10.35 $ 752.00 - $ 828.00 $ 8.60
ORG005 $ 10.36 - $ 11.41 $ 828.80 - $ 912.80 $ 9.10
ORG006 $ 11.42 or Greater $ 913.60 - or Greater $ 9.65
ORG888 KU Medical Center - Nurses $ 9.65
ORG 018 & 019 KU - Graduate Teaching Assistants $ 7.80

The Division of Accounts and Reports, 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 reflected on all paychecks issued on or after September 26, 2003.

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04-P-003 Change in self-service due to Form W-4 for 2003
DATE: August 29, 2003
SUBJECT: Change in self-service due to Form W-4 for 2003
EFFECTIVE DATE: Immediately
CONTACT: Kathy Ogle (785) 296-2290 kathy.ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Change in self-service Form W-4 for 2003

Because of a change to the Form W-4 for 2003, the self-service W-4 Tax Information update page has also been changed. The page now displays a check box with the instructions:

If your last name differs from that shown on your social security card, check here. You must call 1-800-772-1213 for a new card.

Checking this box does not affect processing. This change merely provides the employee with the Social Security Administration's general information and services number (the 800 number shown) so they may request a new card.

It is important for employees to obtain a corrected social security card in order for social security taxes to be correctly applied to their account by the Social Security Administration.

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04-P-004 Discontinuance of Electronic Funds Transfer Prenoting
DATE: September 12, 2003
SUBJECT: Discontinuance of Electronic Funds Transfer Prenoting
EFFECTIVE DATE: Payroll Period Beginning September 14, 2003 and Ending September 27, 2003 Paid October 10, 2003
CONTACT: Carol Beck (785) 296-2002 carol.beck@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Discontinuance of Electronic Funds Transfer Prenoting

In an effort to streamline the direct deposit process, a policy decision has been made to discontinue the process of prenoting electronic funds transfers. This change allows employees to receive the benefit of direct deposit immediately rather than receiving a check while waiting for the prenote process to complete. Prenoting is not required by the National Automated Clearing House Association (NACHA) and has resulted in minimal error returns.

This change in policy will be effective with all direct deposit information entered in SHARP with an effective date on or after September 14, 2003. When entering direct deposit information into SHARP using the path Compensate Employees/Maintain Payroll Data/Use/Direct Deposit, agency personnel will now be required to turn the Prenotification Required checkbox off. Regent's institutions are responsible for ensuring that prenote transactions are no longer included on their pay detail files effective with paychecks issued on or after October 10, 2003. The PRENOTE_REQD field on the employee direct deposit record (record 075) should contain a value of 'N'.

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04-P-005 New Earnings Code
DATE: September 16, 2003
SUBJECT: New Earnings Code
EFFECTIVE DATE: June 8, 2003
CONTACT: Carla Johnston
Kathy Ogle
(785) 296-2588
(785) 296-2290
carla.johnston@state.ks.us
kathy.ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: New Earnings Code 'SK3'

The Memorandum of Agreement for Bookbinders establishes a new premium pay of $.40 per hour retroactive to June 8, 2003. This premium is only available for use by the Department of Administration-Division of Printing.

The following earnings code will be added to SHARP for this premium:

Earns Code Description Rate
SK3 Skill Differential 3-Bindery $.40

The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating this earnings code in the SHARP system.

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04-P-006 New Earnings Code and Changes to Existing Earnings Code
DATE: September 23, 2003
SUBJECT: New Earnings Code and Changes to Existing Earnings Code
EFFECTIVE DATE: September 14, 2003
CONTACT: Carla Johnston
Kathy Ogle
(785) 296-2588
(785) 296-2290
carla.johnston@state.ks.us
kathy.ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: New Earnings Code 'PRA' and Changes to 'CNT'

The following earnings code has been added in SHARP effective September 14, 2003:

Earns Code Description
PRA Pay Rate Adjustment

To better reflect its intended purpose and provide more accurate information for audit purposes, effective with the pay period beginning September 14, 2003, use of the 'CNT' (Contractual Pay) earnings code should be limited to only contractual payments to employees. The new 'PRA' earnings code should be used for processing all late step increases and other adjustments, both positive and negative, to the employee's rate of pay. Both 'CNT' and 'PRA' should be entered as flat dollar amounts calculated by the agency. 'CNT' should continue to be entered on either the Additional Pay Page (path: Compensate Employees/Maintain Payroll Date/Use/Additional Pay) or on the employee timesheet, as appropriate. 'PRA' should be entered on the timesheet (path: Administer Workforce/Time and Leave/Use/Employee). 

The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating this earnings code in the SHARP system. Regents' Institutions are responsible for ensuring this code change is updated in their individual systems.

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04-P-007 State of Kansas Paycard Program
DATE: October 16, 2003
SUBJECT: State of Kansas Paycard Program
EFFECTIVE DATE: October 27, 2003
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Paycard Program Introduction and Agency Instructions

Direct deposit provides many benefits to state agencies as well as employees. Direct deposit has been a successful program and currently has a participation rate of 84 percent statewide. All agencies are being encouraged to continue promoting direct deposit with a goal of 100 percent participation. The State of Kansas Paycard Program is now being offered to provide agencies with a method that allows all employees to participate in direct deposit, even those who do not have bank accounts.

The Department of Administration has partnered with Skylight Financial, Inc. (associated with U.S. Bank) to offer the Skylight paycard to employees. The Skylight paycard is an FDIC insured ATM/debit based bank account where pay and other deposits can be made. The paycard is primarily targeted to the 'unbanked' or those employees who do not have a checking or savings account. Everyone is approved to participate, and no credit check is required.

Highlights of the Program

Skylight paycard Instant Issue Card Packs and marketing materials will be distributed to each agency by Skylight using a list provided by the Division of Accounts and Reports. Each pack includes the actual Skylight card that the participating employee will use to access their account. Employees who would like to participate in the program will sign-up at their agency's personnel office. An agency personnel staff member and the employee will access an on-line enrollment page on the Skylight web site (https://www.skylight.net/secure/onlinesignup/os_login.asp) and enter the card information, personal information, PIN information, etc. When saved, the account will be registered with Skylight, the employee will have an account number and PIN, and a voided check will be printed. The voided check will be used by the agency to sign the employee up for direct deposit in SHARP (or Regent payroll system). An authorization form (included in the pack) must be signed by the employee and then mailed by the agency to Skylight Financial, Inc. The paycard will be activated with the first direct deposit.

The employee will be charged a one-time fee of $3.50 to open the account, which will be deducted upon receipt of the first deposit. There are no monthly fees. ATM and other fees will be charged and a list of those charges is provided to the employees and agencies along with other paycard informational materials. The employee will have several different ways of accessing the money in their account: ATM withdrawals, point-of-sale transactions at merchants who accept PIN-based debit cards, and using preauthorized checks provided by Skylight. Skylight will provide the employee with one free SkylightCheck per pay deposit. SkylightChecks can be cashed at any U.S. Bank branch free of charge. All accounts are individual FDIC insured bank accounts and can be used for credit references and other electronic deposits or preauthorized bill payments. Skylight will mail each participant a monthly statement that will include all activity on the account. The Skylight card is portable; so if the employee leaves state employment, they can continue to use their card with a different employer. The State has no liability or costs associated with this program. Skylight will handle all questions about deposits, withdrawals, account functionality, and access to the account (i.e., lost PIN number, lost card, etc.). The Skylight Customer Care telephone number is 1-800-686-3363.

Materials Provided to Each Agency by Skylight Financial, Inc.

On approximately October 17, 2003, Skylight will mail the following materials to each agency:

  • Instant Issue Card Packs. Each pack contains the actual Skylight card; four SkylightChecks; an authorization form; a disclosure statement explaining terms, conditions, and fees; a Consumer Privacy Guide; and a Quickstart Guide to Using Your Skylight Account. The number of packs sent to each agency will vary widely. The number of card packs that will be sent is an estimate based on the number of paper paychecks currently being processed by the agency and the likelihood of usage as determined by Skylight. More card packs can be requested as needed from Skylight (see document titled Reorder Process).
  • Skylight Card Issuance Log. Each agency is required to use the card issuance log and maintain the security of the card packs so that they are not lost or stolen. The log should be updated whenever a card pack is issued or transferred to another agency. Skylight requires that the log be faxed to them on the 1st and 15th day of each month or the following business day if the 1st or 15th falls on a weekend or holiday. If the issuance log has not been updated since the last time it was faxed, there is no need to send it. The fax number will be listed at the top of the issuance log.
  • Brochures Titled "Skylight: The pre-approved direct deposit bank account." These brochures are promotional materials that can be handed out to employees who inquire about the paycard program. The number of brochures that will be sent is also an estimate based on the number of paper paychecks currently being processed by the agency and the likelihood of usage as determined by Skylight. Some agencies will not receive any brochures due to their ability to provide a more personal touch to those few employees who receive checks. However, the brochure is available on the web site listed below for the State of Kansas Paycard Program.
  • Brochure Stands. The number of stands provided was based on the number of brochures being sent. Most agencies will not receive any brochure stands.
  • Supply of Business Reply Envelopes. The envelopes are to be used to mail the signed authorization forms to Skylight. Forms can be accumulated and then mailed to Skylight on the 1st and 15th of each month.

Teleconferences for Agencies

Skylight Financial, Inc., and the Division of Accounts and Reports will host four teleconferences to assist agencies with this new program. Each teleconference will be approximately one hour in length. Attendance is strongly encouraged for at least one personnel office staff member from each agency. The content for the four teleconferences will be basically the same so it is not necessary to attend more than one. However, two teleconferences will be directed toward larger agencies and two will be directed toward smaller agencies. Agencies will be allowed to ask questions at the end of each teleconference. Prior to attending a teleconference, the employer and employee information available on the Accounts and Reports web site, http://www.da.ks.gov/ar/, should be printed and thoroughly reviewed. This information includes the following:

  • Announcement Memo to Agencies from Secretary Fricke
  • Division of Accounts and Reports Informational Circular 04-P-007
  • Sample Employee Letter
  • Frequently Asked Questions (FAQ's) for Agencies
  • Skylight Financial On-Line Enrollment Instructions
  • Skylight Financial On-Line Enrollment Screen Prints
  • Instant Issue Card Packs-Reorder Process
  • Skylight Brochure
  • Account Fees
  • Introduction and Cost Comparison: Check vs. Direct Deposit
  • Frequently Asked Questions (FAQ's) for Employees
  • Employee Enrollment Information

In addition to all of the documents list above, please bring at least one Instant Issue Card Pack and the Skylight Card Issuance Log to the teleconference since they will be referenced during the presentation.

Select one of the following teleconference sessions:

  • Monday, October 27, 2003, 2:00-3:00 p.m., for Mid-size to Large Agencies 
  • Wednesday, October 29, 2003, 10:00-11:00 a.m., for Small Agencies
  • Tuesday, November 4, 2003, 2:00-3:00 p.m., for Small Agencies
  • Thursday, November 6, 2003, 10:00-11:00 a.m., for Mid-size to Large Agencies

VERY IMPORTANT: There will be a limited number of lines (25) available for each call and access will be on a first come, first serve basis. If more than one person from an agency or a building are attending, PLEASE plan ahead to dial-in with others from a conference room, or an office with a speakerphone, so that we can accommodate everyone who would like to be on a call. The telephone number for accessing the conference is 1-800-503-2899, pass code 7202000#.

State of Kansas Procedures for Enrolling Employees in the Paycard Program

Agencies may start enrolling employees in the program on October 27, 2003 therefore the November 7, 2003 paycheck would be the earliest on-cycle pay date for participants to have a direct deposit in their Skylight account. The steps that agencies should follow to complete enrollment in the paycard program are:

  1. The agency must have possession of an Instant Issue Card Pack in order to process the enrollment. The agency, along with the employee, signs on to the Skylight Online Enrollment web site, https://www.skylight.net/secure/onlinesignup/os_login.asp. The user ID is 'SOK' and password is your 3-digit agency number.
  2. Follow the On-Line Enrollment Instructions provided on the Accounts and Reports web site, http://www.da.ks.gov/ar/. It is important for the employee to have privacy as he enters his PIN during the enrollment process.
  3. During the online enrollment process, the confirmation number must be filled in on the authorization form. The employee's signature is also required on the authorization form. The agency must mail the form to Skylight Financial, Inc. Authorization forms should be accumulated and mailed to Skylight on the 1st and 15th of each month.
  4. The agency completes a DA-184, Direct Deposit form, using the bank account information shown on the voided check printed during the online enrollment process. The employee's signature is also required on this form.
  5. The agency enters the direct deposit information. The prenote flag should be turned off since direct deposit prenotes are no longer necessary, as directed in Informational Circular Number 04-P-004. Direct deposit information entered in SHARP by 6:00 p.m. on the day of payroll confirmation will be effective on that paycheck being confirmed as long as the direct deposit transaction has been entered with an effective date which is less than or equal to the payroll period ending date of the payroll being confirmed. (For Regent Institutions, enroll the employee in direct deposit in your payroll system using the established procedures for your agency. The timing for a Regent employee's first paycard deposit will be different from those entered in SHARP since processing for Regent on-cycle payrolls are on a slightly different schedule. Regents Institutions should advise employees of the direct deposit effective date.)
  6. The employee is given the contents of the Instant Issue Card Pack used for his/her enrollment, except for the authorization form. The authorization form is the top one-third portion of the page that the Skylight card is attached to. Please detach the authorization form from the rest of the page and mail to Skylight Financial. The rest of the page should be given to the employee. Authorization forms must be mailed to Skylight Financial on the 1st and 15th of each month. 

Web Sites with State of Kansas Paycard Program Information

Information is readily available for both agencies and employees to assist with using this program on the following web sites:

  • Access Kansas State Employee Services
    http://www.kansas.gov/employee/ 
    This site contains information directed to employees and is accessed under the heading Employee Benefits. The documents include a Skylight brochure, a list of account fees, an introduction and cost comparison for cashing a check versus direct deposit, frequently asked questions, employee enrollment information, and a link to Skylight's list of surcharge free ATMs.
  • Division of Accounts and Reports Home Page
    http://www.da.ks.gov/ar/ 
    This site contains information directed to agencies and is accessed under the heading Payroll Services. All of the documents provided on the Access Kansas State Employee Service web site are also included here. The same agency information is also available on the Payroll Services home page, http://www.da.ks.gov/ar/payroll/default.htm.
  • SHARP Customer Service
    http://www.da.ks.gov/SHARP/ 
    This site contains information directed to agencies, and offers another way to access the same information that is available on the Accounts and Reports web site. A list of the State of Kansas Paycard Program documents is listed under the heading entitled Documents.

Employee Communication

We strongly encourage agencies to provide all employees with information about this new benefit by November 20, 2003. To assist you, two documents have been prepared to announce the paycard program to employees. Both documents are available on the agency directed web sites above:

  • Sample Employee Letter. This letter encourages participation in direct deposit and announces the paycard option for employees who do not have a bank account. Your agency information needs to be inserted in the top of the letter before printing or sending to employees. Your agency may also want to add an agency contact person.
  • Introduction and Cost Comparison: Check Versus Direct Deposit. This is a short introduction to the paycard program that is ideal for handing to employees at the workplace. Regent Institutions may want to distribute it along with student paychecks where possible.

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04-P-008 Key Payroll Processing Dates in November 2003 (Supersedes 03-p-016)
DATE: October 16, 2003
SUBJECT: Key Payroll Processing Dates in November 2003
EFFECTIVE DATE: November 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Payroll processing schedule changes due to the November 2003 holidays.

Tuesday, November 11, 2003 (Veterans' Day), Thursday, November 27, 2003 and Friday, November 28, 2003 (Thanksgiving Holiday) are designated holidays for state service in 2003. Due to the holidays in November, variations have been made 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 7, 2003

Payday for the payroll period ending October 25, 2003.

Time and leave interface agencies must have time and leave files for the period ending November 8, 2003 submitted to the Department of Administration for processing by 5:00 PM on November 7, 2003 (these files would normally be due Monday). 

Regents' Run C off-cycle payroll files for the period ending October 25, 2003 must be received by the Department of Administration by 5:00 PM on November 7, 2003.

Monday, November 10, 2003

Paysheets for the on-cycle payroll for the period ending November 8, 2003 will be created on Monday, November 10, 2003. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 10, 2003 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 8, 2003 will also occur November 10, 2003; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. 

The Run C off-cycle for the period ending October 25, 2003 will be processed November 10, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 13, 2003.

Tuesday, November 11, 2003
(Veterans' Day Holiday)

Wednesday, November 12, 2003

The second on-cycle preliminary pay calculation for the period ending November 8, 2003 will occur November 12, 2003.

Thursday, November 13, 2003

The third on-cycle preliminary pay calculation for the period ending November 8, 2003 will occur November 13, 2003.

Friday, November 14, 2003

Regents' on-cycle payroll files for the period ending November 8, 2003 are due to the Department of Administration by 6:00 AM on November 14, 2003.

Final pay confirmation for the on-cycle payroll for the period ending November 8, 2003 will occur November 14, 2003. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 14, 2003 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 14, 2003 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 8, 2003 must be received by the Department of Administration by 5:00 PM on November 14, 2003.

Monday, November 17, 2003

The Run A off-cycle for the period ending November 8, 2003 will be processed November 17, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 21, 2003.

Tuesday, November 18, 2003 

Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 8, 2003 will be posted to STARS during Tuesday night's STARS batch processing cycle.

Regents' Run B off-cycle payroll files for the period ending November 8, 2003 must be received by the Department of Administration by 5:00 PM on November 18, 2003 in order to be processed on Wednesday, November 19, 2003.

Wednesday, November 19, 2003 

The Run B off-cycle for the period ending November 8, 2003 will be processed November 19, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 24, 2003.

Friday, November 21, 2003 

Payday for the payroll period ending November 8, 2003.

Time and leave interface agencies must have time and leave files for the period ending November 22, 2003 submitted to the Department of Administration for processing by 5:00 PM on November 21, 2003 (these files would normally be due Monday).

Regents' Run C off-cycle payroll files for the period ending November 8, 2003 must be received by the Department of Administration by 5:00 PM on November 21, 2003.

Monday, November 24, 2003 

Paysheets for the on-cycle payroll for the period ending November 22, 2003 will be created on Monday, November 24, 2003. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 24, 2003 in order to be reflected on the paysheets for this period.

The Run C off-cycle for the period ending November 8, 2003 will be processed November 24, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated December 1, 2003.

The first on-cycle preliminary pay calculation for the period ending November 22, 2003 will also occur November 24, 2003; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 22, 2003.

Tuesday, November 25, 2003 

The second on-cycle preliminary pay calculation for the period ending November 22, 2003 will occur November 25, 2003.

Wednesday, November 26, 2003

Final pay confirmation for the on-cycle payroll for the period ending November 22, 2003 will occur November 26, 2003 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 26, 2003 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 26, 2003 in order to be reflected in the final paycheck created for the employee.

Regents' on-cycle payroll files for the period ending November 22, 2003 are due to the Department of Administration by 6:00 AM on November 26, 2003.

Regents' Run A off-cycle payroll files for the period ending November 22, 2003 must be received by the Department of Administration by 5:00 PM on November 26, 2003.

Attached is a calendar for the month of November 2003, 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.

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Attachment: Payroll Calendar - November 2003 (.pdf)

04-P-009 Voluntary Tax Sheltered Annuity Investment Option Change
DATE: October 20, 2003
SUBJECT: Voluntary Tax Sheltered Annuity Investment Option Change
EFFECTIVE DATE: October 17, 2003
CONTACT: Abby Moore (785) 296-2133 abby.moore@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Voluntary Tax Sheltered Annuity Investment Option Change

Please be advised that an additional Investment Option number (#696) for the Teachers Insurance Annuity Association (TIAA-CREF) has been added to the Savings Plan Table. The current Investment Option (#695) represents contributions to the TIAA-CREF mandatory retirement plan. The new option #696 will represent contributions to TIAA-CREF for the voluntary supplemental plan.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.

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04-P-010 Deferred Compensation Loan Program
DATE: October 24, 2003
SUBJECT: Deferred Compensation Loan Program
EFFECTIVE DATE: Payroll Period Beginning November 9, 2003
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Deferred Compensation Loan Program

The deferred compensation contract with ING-AFS effective January 1, 2003 provides an option to establish a loan program. The State of Kansas amended the State of Kansas Deferred Compensation Plan to allow for loans from the plan in a document signed September 12, 2003. The State of Kansas 457 Deferred Compensation Loan Program will be available to eligible employees beginning with the payroll period beginning November 9, 2003 and ending November 22, 2003 paid December 5, 2003. Employees can sign up for the loan program through their ING representative. The Deferred Compensation Oversight Committee will be providing additional information in the near future regarding the deferred compensation loan program, including a list of program guidelines.

ING-AFS will interface new loan repayment enrollments biweekly into SHARP along with the regular deferred compensation enrollments. The interface will also include changes to existing loan payment amounts necessitated by the occurrence of a qualified leave of absence or in the event of a loan prepayment. The interface will include loan repayment enrollments/changes for employees at Regents' Institutions in addition to SHARP employees. In order for Regents' Institutions to be aware to update their individual systems with the loan repayment enrollments/changes, ING-AFS will also notify each Regent Institution directly (similar to the process for regular deferred compensation enrollments). Loan payment deductions will be set up on the General Deduction Table as after tax payroll deductions using deduction code '457DCL' (457 Deferred Compensation Loan). Loan payment deduction amounts will be remitted to ING-AFS on the biweekly remittance file along with regular deferred compensation contribution amounts.

A Leave of Absence report will be sent to ING-AFS by Payroll Services each payroll period identifying all employees with deferred compensation loans who are going on or returning from qualified leave. The following Action/Reason codes will be used to identify employees going on a qualified leave of absence:
 

ACTION Code: REASON Code:
LOA CNV (Conversion)
  HEA (Health Reasons)
  MAT (Maternity/Paternity)
  MOP (Military)
  OTH (Other)
  REG (Regent)
  SEA (Seasonal/Not scheduled to work)
  SOP (Sabbatical/Professional Leave)
  SWP (Summer Leave with Benefits)

The following Action/Reason codes will be used to identify employees returning from a qualified leave:

ACTION Code: REASON Code:
RFL RFL (Return from Leave)
  SLR (Summer Leave Return)

The Division of Accounts and Reports, Payroll Systems Team, is responsible for setting up the new general deduction in SHARP. Regents' Institutions are responsible for ensuring this change is updated in their individual systems.

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04-P-011 SHARP Bi-Weekly Payroll Schedule for 2004 (Supersedes 03-P-039 and 03-P-040)
DATE: October 22, 2003
SUBJECT: SHARP Bi-Weekly Payroll Schedule for 2004
EFFECTIVE DATE: Calendar Year 2004
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2004

Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2004. 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 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 & C) will normally be dated three working days from the date the off-cycle was processed. SHARP agencies 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.

Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports 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.

Please note that there are 27 on-cycle pay dates in calendar year 2004. Deductions for United Way, Savings Bonds, Organization Dues, Deferred Compensation, KPERS, KPERS Buyback, Court Ordered Withholdings, Post-Secondary Education Savings Plan, TSA, and VTSA will be taken for each of the 27 pay dates (assuming no deduction end date prior to December 19, 2004 has been entered for the deductions). Semi-monthly deductions for Group Health Insurance and Flexible Spending Accounts will continue to be taken on a semi-monthly basis (the first and second pay date of the month), with no deductions being taken from the third pay dates in the months of January, July, and December 2004. The monthly deductions for Long Term Care (first pay date of the month) and Optional Group Life Insurance (second pay date of the month) will continue on their normal schedule.

Bi-weekly Parking deductions will also be taken from all 27 pay dates. However, agency parking contracts based on monthly, quarterly or annual amounts may not have a deduction taken on the December 30, 2004 paycheck. Agencies should contact Frances Darrow with the Division of Facilities Management at 296-1318 to determine if their contracts qualify.

Although there are 27 pay dates in calendar year 2004, federal and state withholding calculations will still be annualized using 26 pay periods for biweekly payrolls. Employees should be advised to review their current W-4 status and the number of withholding allowances claimed. Employees should estimate their 2004 tax liability to determine if their withholding is sufficient.

If not, employees should adjust their W-4's accordingly.

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Attachment: SHARP Bi-Weekly Payroll Schedule for Calendar Year 2004 (.pdf)

04-P-012 Addition of Parking Deduction Codes
DATE: October 23, 2003
SUBJECT: Addition of Parking Deduction Codes
EFFECTIVE DATE: Payroll Period Beginning October 12, 2003 and Ending October 25, 2003 Paid November 7, 2003
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Addition of New Parking Deduction Codes for Department on Aging Agreement

To facilitate the collection of parking fees resulting from the agreement entered into between the Department on Aging and the Division of Facilities Management, the following parking deduction codes have been established in SHARP for Department on Aging employees:

PARKING
FACILITY
DEDUCTION
CODE
BIWEEKLY
AMOUNT
TAX
CLASS
Curtis Garage PPKT0C 10.07 Pre-tax
  PKT0CB 10.07 After-tax
Parking administrative fee code PKAD12 ($0.77 = $10.07 X .0765) has been added for employees enrolled in deduction PPKT0C.

 

Surface lot, non-reserved PPKT0D 2.30 Pre-tax
  PKT0DB 2.30 After-tax
Parking administrative fee code PKAD13 ($0.18 = $2.30 X .0765) has been added for employees enrolled in deduction PPKT0D.

 

Surface lot, reserved PPKTRD 3.46 Pre-tax
  PKTRDB 3.46 After-tax
Parking administrative fee code PKADR2 ($0.26 = $3.46 X .0765) has been added for employees enrolled in deduction PPKTRD.

The Division of Facilities Management will perform the necessary deduction enrollments in SHARP for employees who are covered by the parking agreements. The Division of Accounts and Reports, 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. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

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04-P-013 Name Change for Organizational Dues Deduction for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES)
DATE: October 23, 2003
SUBJECT: Name Change for Organizational Dues Deduction for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES)
EFFECTIVE DATE: Immediately
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Organizational Dues Name Change for ORG980

Payroll Services has been notified of a name change for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES), deduction code 'ORG980'. Effective immediately the name should be changed to the Kansas Chapter of the International Association of Workforce Professionals (IAWP).

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.

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04-P-014 New Deduction Codes
DATE: November 4, 2003
SUBJECT: New Deduction Codes
EFFECTIVE DATE: Immediately
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: New Employer Deduction Codes for Oregon Local Transit Taxes

Employer Deduction Codes LOR001 and LOR002 have been added to the General Deduction Table for the purpose of collecting the Employer's Local Transit Tax for employees who are based in the Tri-Met and Lane County locals in Oregon. Deduction codes and tax information are as follows:
 

Taxing Authority Deduction Code Tax Rate Tax Base
Tri-Met LOR001 .006218 Employee's Gross Wages
Lane County LOR002 .006000 Employee's Gross Wages

Expenditure sub-object code 1790 has been established in STARS to record the employer expenditure; amounts expended for the Oregon Local Transit Tax should be receipted into the Department of Administration Clearing Fund 9030, index 9885. For Regents' Clearing Funds, index 9685 has been established.

Please find attached the document "Index Codes for Agency and DOA Clearing Funds". This document incorporates the changes discussed above and replaces the document issued with Informational Circular 03-P-015 dated October 4, 2002.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes. Regent's institutions are responsible for ensuring that these changes are made to their individual systems.

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Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)

04-P-015 SHARP Version 8.0 - Payroll Hints and Updates
DATE: November 5, 2003
SUBJECT: SHARP Version 8.0 - Payroll Hints and Updates
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 joyce.dickerson@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Payroll Hints and Updates

To assist users in processing payroll transactions in the upgraded SHARP system and to inform users of new developments, the following list of payroll pointers has been compiled. If questions arise, users are encouraged to contact the Payroll Processing Team prior to the on cycle paysheet create process and/or off cycle processing. Many problems can be alleviated with data clean-up or proper instructions.

Please provide a copy of this summary to all SHARP payroll users in your agency.

Additional Pay

  1. New entry and most updates to existing Additional Pay data must be entered prior to the paysheet create process for the Additional Pay to be included in the paycheck. On cycle paysheets are typically created on the Tuesday night following the end of the payroll period. See the SHARP Bi-weekly Payroll Schedule for Calendar Year 2004 attachment to Informational Circular 04-P-011 and note the dates in the 'Cutoff Online Users' column of the document. The Payroll Processing Team can fix some problems after paysheet create, such as the 'Ok to Pay' field not being turned on or the effective dates being incorrect. If a problem is found, please contact the Payroll Processing Team as soon as possible for assistance.
  2. The 'Prorate Additional Pay' checkbox toward the bottom of the Additional Pay 1 page should always be checked 'on'. This is especially important for mid-period hires and transfers.

Direct Deposit

  1. As part of the SHARP version 8 conversion process, a priority '999' row was added to existing direct deposit records. When updating direct deposit records, please review the '999' row in addition to the other rows to determine necessary updates and/or deletions.
  2. If net pay is to be split according to two percentages, the first row should contain the higher percentage and the second row should indicate the Deposit Type of 'Balance'. This prevents creation of a paycheck for $.01 due to rounding.
  3. As a reminder, per Informational Circular 04-P-004, when entering direct deposit information into SHARP using the path Compensate Employees/Maintain Payroll Data/Use/Direct Deposit, agency personnel are required to turn the 'Prenotification Required' checkbox 'off'. This change allows employees to receive the benefit of direct deposit immediately rather than receiving a check while waiting for the prenote process to complete.
  4. For a new enrollment or a change to an employee's direct deposit, if the information is entered in SHARP before the final payroll cutoff and the effective date is less than the check date for that payroll cycle, then the new direct deposit information will be used for that paycheck being issued.

Funding

  1. On the Department Budget Table-Department Budget Date page, the Fiscal Year field should always be keyed in the four-digit year format, i.e., 2004.
  2. If a new effective dated row is added to the Account Code table, a new row with the same effective date should also be added to the Department Budget Table, otherwise the 'old' funding will be reflected in payroll expenditures.

Job Data Updates Affecting Payroll

  1. In most cases the Workers Compensation (WCI%%%) and State Leave (STLEAV) deduction codes are automatically populated in nightly batch processing on the employee general deduction data page for hires, rehires, etc. In some instances where effective dating has been changed or correction mode was used, this is not occurring. It is good practice to verify all general deductions for employees after hires, rehires, transfers, etc. and make necessary updates.
  2. In the case of rehires and agency transfers, verification should extend to employee level benefits data, additional pay, direct deposit and tax data.

Paycheck Data

  1. When searching for paycheck data, always enter 'SOK' in the Company field. This will ensure that all paychecks will be retrieved.
  2. When the Search Results for paychecks are displayed, the first 100 paychecks will be listed. If more than 100 paychecks are available for viewing for the employee, select either the 'View All' link on the left side of the page above the paycheck listing or use the 'First' and 'Last' indicators on the right side of the page to display all paychecks.

Earnings Code Usage

  1. As a reminder, per Informational Circular 04-P-006, the 'PRA-Pay Rate Adjustment' earnings code was created to reflect pay changes due to late step increases and other adjustments to rate of pay.
  2. The use of earnings code 'CNT-Contractual Pay' should be limited to contractual payments to employees.
  3. The earnings code 'BUS-Taxable Employee Business Expense' should be used for board member per diem pay.

Holiday Schedules

  1. Per agency request, holiday schedule 'SO06-State of Kansas Holiday 6 Hours' has been created to accommodate employees that work 6 hours per day.
  2. Holiday schedules also exist for employees that work 4, 8, 10 and 12 hours per day, as well as specific schedules for the Judicial Branch and the State Printer employees.
  3. The holiday schedule dictates when and how many 'HDC-Holiday Credit-Paid-1.0' hours are defaulted on the employee timesheet. Employees are enrolled in a holiday schedule on the Job Data-Payroll page.

Duplicate W-2s

  1. The preferred method for requesting a W-2 reissue (or duplicate) for the year 2002 and going forward would be for the employee to request the W-2 reissue using SHARP Employee Self Service. All reissued W-2s for 2002 (and going forward) are mailed directly to the employee using the address printed on the W-2 form. Within the Self Service Request W-2 Reissue option, the employee has the opportunity to update the address if it has changed since the original form was created.
  2. The least preferred method is for the agency to submit a request to the Division of Accounts and Report Payroll Processing Team. This method must be used if the employee has been terminated for longer than 30 days (since the employee will no longer have access to the Employee Self Service). In the request, the agency should include the year for the form being requested, employee's name, employee ID, SSN, and the current mailing address. Since all reissued W-2s for 2002 (and going forward) are mailed directly to the employee, the Payroll Processing Team will change the address on the W-2 form if necessary.
  3. For all W-2 reissue requests for the year 2001 and prior, the agency must submit the request to the Division of Accounts and Reports Payroll Processing Team. Please include the year for the form being requested, name, employee ID, and SSN. All resulting reissued W-2s will be mailed to the agency unless special distribution instructions are given.

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04-P-016 Employee Taxability of State-Owned Vehicles (Revises 03-p-041)
DATE: November 13, 2003
SUBJECT: Employee Taxability of State-Owned Vehicles
EFFECTIVE DATE: January 1, 2004
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2004

The Internal Revenue Service (IRS) has increased the mileage rate from 36 cents (for 2003) to 37.5 cents (for 2004) under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned vehicle. The new rate becomes effective January 1, 2004. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 37.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicles 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 2004 and the agency wishes to use the Cents-Per-Mile method, please contact Payroll Services for the 'luxury' vehicle definition. Agencies and employees are also reminded that the only personal use of a state 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.

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04-P-017 December 2003 Payroll Processing (Supersedes 03-p-023 and 04-p-011)
DATE: November 18, 2003
SUBJECT: December 2003 Payroll Processing
EFFECTIVE DATE: Immediately
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: December 2003 Payroll Processing

As a result of Governor Sebelius designating Friday, December 26, 2003 as an additional state holiday for 2003, the following changes have been made to the December payroll processing schedule:

  • There will be only two preliminary payroll calculations for the pay period ending December 20, 2003. The preliminary calculations will occur on Monday, December 22, 2003 and Tuesday, December 23, 2003.
  • The final payroll calculation and confirm for the payroll period ending December 20, 2003, originally scheduled for December 26, 2003, is now scheduled for December 24, 2003. All employees' time and leave records must be 'OK to Process' by 6:00 p.m. on December 24, 2003 in order for an on-cycle paycheck to be generated. In addition, all deduction and tax data changes must be entered by 6:00 p.m. on December 24, 2003 in order to be reflected in the on-cycle paycheck created for the employee.
  • Regent's on-cycle files for the payroll period ending December 20, 2003, originally due on December 24, 2003, are now due to the Department of Administration by 6:00 a.m. on December 23, 2003.
  • The check issue date for the Run C off-cycle for the pay period ending December 6, 2003 has been changed from December 26, 2003 to December 24, 2003.
  • The due date for the Regent's Run A off-cycle files for the pay period ending December 20, 2003 has been moved from Friday, December 26, 2003 to Wednesday, December 24, 2003 at 5:00 p.m.

Please make sure to note the above payroll processing date changes and adjust your schedules accordingly.

2003 YEAR END PROCESSING

The Division of Accounts and Reports is making preparations for the issuance of calendar year 2003 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2003 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2004 balances; a corrected W-2 (Form W-2C) for 2003 will not be issued for the employee involved.

FINAL 2003 PAYCHECK

The final on-cycle paychecks for calendar year 2003 will be issued December 19, 2003. Paychecks will be mailed on December 18, 2003. The final off-cycle paychecks for calendar year 2003 will be issued on December 24, 2003 (generated from the off-cycle processed on December 22, 2003).

PAYCHECK REVERSALS

Any 2003 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 22, 2003 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 22, 2003 will update calendar year 2004 balances and will not be reflected in the employee's 2003 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 22, 2003 to enter paycheck adjustment requests for any 2003 paychecks. Adjustments processed in the December 22, 2003 off-cycle payroll will be reflected on the employee's 2003 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 2003 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 15, 2003.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2003 for inclusion in the December 22, 2003 off-cycle. However, if a large volume of DA-180 forms is received on the December 15, 2003 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2003 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 22, 2003 which are adjusting paychecks issued prior to January 1, 2004 will not result in a W-2C; the adjustment will update the employee's 2004 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 22, 2003 will update the employee's 2004 payroll balances.

REGENTS' INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 6, 2003, paid December 19, 2003 are due to the Department of Administration by 6:00 a.m. on December 12, 2003.

REGENTS' INSTITUTIONS: OFF-CYCLE FILES

2003 Paycheck Reversals

Regent Institutions must submit all transmittals for 2003 paycheck reversals by 5:00 p.m. on Friday, December 19, 2003 in order to update the employee's 2003 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 2004 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2004 submitted after 5:00 pm on December 19, 2003 should default the pay adjust check date to January 1, 2004.

2003 Adjustments and Supplementals

In order to update employee balances for 2003, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 19, 2003. The off-cycle for the pay period ending December 6, 2003 generated on the night of Monday, December 22, 2003 will have a check issue date of December 24, 2003; all activity for this off-cycle will be reflected in the employees' 2003 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 2003 date.

2004 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2004, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 19, 2003, will be considered to be 2004 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2004 business, the employee's 2004 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2004 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2004, agencies should default the pay adjust check date to January 1, 2004).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2004, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2004 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 2004 payroll balances.

Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited 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 19, 2003 deadline for the December 22 Run C off-cycle payroll will not be processed until the January 26, 2004 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 20, 2004. The deadline for submitting payroll interface files for the January 26, 2004 off-cycle is 5:00 p.m. on January 23, 2004.

GENERAL REMINDERS

United Way

The deduction END date on the general deduction panel for 2003 United Way contributions should be dated between December 7, 2003 and December 20, 2003 in order for the last 2003 deduction to be taken on the paycheck issued December 19, 2003. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2004, agencies can enter a new row effective-dated between December 7, 2003 and December 20, 2003 in order for the first deduction for 2004 to be taken on the January 2, 2004 paycheck. If the 2004 deduction is to be taken over 27 pay dates, a deduction end date of December 19, 2003 should be entered.

Tax Information

Pursuant to IRS regulations, all employees claiming an exemption from federal withholding and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2003 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced EIC payments. Notifications will be sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications will be sent to the agency email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2004 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 12, 2003 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 15, 2003 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons 'New W-4 Received' and/or 'New W-5 Received' on the employee's 'Federal Tax Data 1' and 'Federal Tax Data 2' panels in SHARP for the effective-dated rows 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 2004.

The KPAY320 will be processed the evening of December 15, 2003. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2004 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2004 effective-dated row will update the employee's marital status to 'single' with zero exemptions and/or stop any advance EIC payments for paychecks with a 2004 pay date.

For any 2004 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 15, 2003 and January 1, 2004, agency personnel will need to enter the data with a January 2, 2004 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2004 for any electronic W-4s received in this time period.

The 2004 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.

The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 15, 2003 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 2004. The new tax data row will be dated January 1, 2004. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2004 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 who do not have a current 8233 form on file in Payroll Services.

Deduction Information

All deductions for calendar year 2004 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.
  • Long Term Care: monthly, deducted on the first pay date of the month.
  • Optional Group Life Insurance: monthly, deducted on the second pay date of the month.

All bi-weekly deductions will be deducted in the 27 pay periods in calendar year 2004 if no deduction end date prior to December 19, 2004 has been entered.

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 22, 2003. 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 12, 2003, and prior to December 22, 2003, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2003 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 2003 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 6, 2003 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 19, 2003 (i.e., on-cycle for the payroll period ending December 6, 2003) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2003 Form W-2.

W-2s

Please note that if an employee has a mailing address on the SHARP Personal Data page, the mailing address will be used for mailing the W-2. If the employee has no 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 this Personal Data page by 5:00 pm on December 24, 2003 to guarantee the updated information is included in the W-2 data. 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 24, 2003.

The W-2 programs will be executed anytime between December 24, 2003 and January 16, 2004.
W-2 forms will be mailed on or before January 31, 2004. 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 2003 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 04-P-011, dated October 22, 2003. 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://www.da.ks.gov/sharp/infolist.htm.

Attachment: December Payroll Calendar (.pdf)

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04-P-018 Change in Social Security Base Rate (Supersedes 03-p-018)
DATE: December 4, 2003
SUBJECT: Change in Social Security Base Rate
EFFECTIVE DATE: January 1, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Social Security Wage Base Increase to $87,900 effective January 1, 2004

The Social Security wage base for OASDI will be $87,900 for calendar year 2004. This is a $900 increase from the 2003 wage base of $87,000. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2004 will be $5,449.80. There continues to be no limit on wages subject to the Medicare tax in 2004. Medicare tax rates for employers and employees remain at 1.45%.

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 $5,449.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.

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).

The Division of Accounts and Reports, 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.

DB:JJM:rdb

04-P-019 New Tables for Earned Income Credit for 2004 (Supersedes 03-p-028)
DATE: December 4, 2003
SUBJECT: New Tables for Earned Income Credit for 2004
EFFECTIVE DATE: January 1, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 2004

The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 2004. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2004. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.

The Internal Revenue Service has released the 2004 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2004 Form W-5 is attached; the 2003 Form W-5 expires on December 31, 2003. The 2004 Form W-5 must be filed with the employer before advance 2004 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2004 earned and adjusted gross income will each be less than $30,338.00 for single employees or $31,338.00 if filing jointly (include spouses income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the EIC for 2004 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2004.

The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.

An e-mail notification was sent on December 3, 2003 as a reminder to all SHARP employees receiving advanced EIC payments in 2003 that a new Form W-5 must be submitted to continue the EIC payments in 2004. The e-mail notification was sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. The notification was sent to the agency email address for those employees who lack an individual email address and agencies will need to distribute the notifications to their employees. A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.

Agency personnel have until 6:00 p.m. on December 15, 2003 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2004. It is important that agency personnel check the 'New W-5 Received' radio button on the employee's 'Federal Tax Data 2' page for the new effective-dated row that is entered. As outlined in Accounts and Reports Informational Circular No. 04-P-017 issued November 18, 2003, the Department of Administration will be processing the KPAY320 on the night of December 15, 2003. This process will update the existing SHARP federal tax data records for all employees claiming the EIC in 2003 in which the 'New W-5 Received' radio button is not checked. The update will insert a January 1, 2004 effective-dated row with an Earned Income Credit status of 'Not applicable'. (Please note, the KPAY320 process will also update all employees claiming exemption from withholding tax in 2003 in which the 'New W-4 Received' radio button is not checked. The update for exempt employees will insert a January 1, 2004 effective-dated row and will update the employee's marital status to 'single' with zero exemptions.)

For any Forms W-5 for 2004 (or Forms W-4 for 2004 for employees claiming exemption from withholding) received after December 15, 2003, agency personnel will need to enter the data with a January 2, 2004 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Wednesday, December 24, 2003 in order to be reflected in the on-cycle paycheck dated January 2, 2004. 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.

When the KPAY320 process is generated, a report is created which provides a listing to agencies identifying all SHARP employees whose EIC and/or exempt withholding status was updated in SHARP on the night of December 15, 2003. The report will be available in the agency directory on the MVS.

The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regent's institutions are responsible for implementing the new EIC rates in their respective payroll systems.

DB:JJM:rdb

Attachments: Advanced Earned Income Credit Formulas 
W-5 Earned Income Credit Advance Payment Certificate 

04-P-020 New Organization for Org Dues Deductions
DATE: December 4, 2003
SUBJECT: New Organization for Org Dues Deductions
EFFECTIVE DATE: December 7, 2003
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: New Organization Dues Deduction Code ORG064

The International Association of Fire Fighters (IAFF), Local 64, has met the requirements of K.S.A. 75-5501(3)(b) for employee membership dues deductions. Therefore, a new deduction code, ORG064, has been added in SHARP to accommodate payroll deduction of membership dues to this organization. The deduction for member dues will be $13.84 per biweekly period effective with the payroll period beginning December 7, 2003 and ending December 20, 2003 paid January 2, 2004. Enrollment and/or termination cards should be sent to Robert Wing at IAFF, P.O. Box 6243, Kansas City, Kansas 66106.

The Division of Accounts and Reports, 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. Regent's institutions are responsible for ensuring that this change is reflected in their systems for all paychecks issued on or after January 2, 2004.

DB:JJM:ewb

04-P-021 Change in KPERS Employer Contribution Rates for Correction Officer Groups A & B (Supersedes 03-p-049)
DATE: December 4, 2003
SUBJECT: Change in KPERS Employer Contribution Rates for Correction Officer Groups A & B
EFFECTIVE DATE: The Pay Period beginning November 23, 2003 and ending December 6, 2003, paid December 19, 2003.
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Change In KPERS Employer Contribution Rates for Correction Officer Groups A & B

The Kansas Public Employees Retirement System (KPERS) notified the Division of Accounts and Reports that the employer contribution rate for Correctional Officers Groups A & B was modified to 3.15% and 2.68%, respectively, for the remainder of fiscal year 2004. The modified rates are effective for the pay period beginning November 23, 2003 and ending December 6, 2003, paid December 19, 2003.

The Division of Accounts and Reports, 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.

DB:JJM:rdb

04-P-022 Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2004 (Supersedes 03-p-030)
DATE: December 12, 2003
SUBJECT: Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2004
EFFECTIVE DATE: January 1, 2004
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
  Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: 2004 Deferred Compensation and Voluntary Tax Sheltered Annuity Changes

Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Voluntary Tax Sheltered Annuity (VTSA) limits will increase effective January 1, 2004 as follows:

457(b) Deferred Compensation:

The Deferred Compensation annual contribution limit increases from the lessor of
$12,000 or 100% of includible compensation (2003 calendar year limit) to the lessor of $13,000 or 100% of includible compensation (2004 calendar year limit).

The Deferred Compensation special catch-up limit increases from $24,000 (2003 calendar year limit) to $26,000 (2004 calendar year limit). 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) increases the annual contribution limit by $3,000 (for 2004) to a total of $16,000.

Please note: The two different catch-up provisions cannot be used concurrently.

403(b) Voluntary Tax Sheltered Annuity (VTSA):

The limit on annual contributions for Tax Sheltered Annuities is the lesser of $41,000 or 100% of includible compensation.

The limit on elective deferral will increase from $12,000 (2003 calendar year limit) to $13,000 (2004 calendar year limit).

The catch-up provision for participants who are 50 years of age or older may allow employees to contribute up to an additional $3,000 annually.

Additionally, there is a 15-year catch-up provision which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3000 (for 2004) for a total of $16,000.

Employees may be able to use both the age 50 and 15-year catch-up provisions at the same time.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $200,000 (for 2003) to $205,000 (for 2004). The $205,000 limit may be increased for Regent's employees who participated in the Kansas Board of Regent's Retirement Plan prior to 1996. Regent's institutions are encouraged to contact the 403(b) carrier to determine the annual compensation limit for employees who earn in excess of $205,000. Regent's institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees.

The Act repeals the coordination requirements for employees who participate in both a 457(b) - Deferred Compensation Plan and a 403(b) - Tax Sheltered Annuity plan. Employees eligible for both plans will be able to defer the full amount to both plans.

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04-P-023 Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions
DATE: December 15, 2003
SUBJECT: Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 sunni.zentner@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions

Kansas' law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). Likewise, the State's Section 218 Agreement with the Social Security Administration exempts others from Social Security (OASDI) and Medicare. This informational circular is being issued to assist agencies in properly establishing UCI, Social Security and Medicare tax coverage for employees.

Following is a list of exemptions from UCI. This list is not intended to be all-inclusive and addresses those exemptions most applicable to State of Kansas employees. The statutory reference is included:

  • Students, who are enrolled and regularly attending classes, in the employ of a college or university (K.S.A. 44-703(i)(4)(N)).
  • Patients in the employ of a hospital licensed, certified or approved by the Secretary of Health and Environment (K.S.A. 44-703 (i)(4)(P)).
  • Services performed as part of an employment work relief or work training program assisted or financed in whole or in part by any federal agency or an agency of the state or political subdivision, by an individual receiving such work relief or work training (K.S.A. 44-703 (i)(4)(L)). (Does not apply to Employee Under Public Service Careers or the Emergency Employment act of 1971.)
  • Ordained, commissioned or licensed ministers of a church in the exercise of their ministry or members of a religious order (who have taken a vow of poverty) in the exercise of duties required by such order (K.S.A. 44-703 (i)(4)(J)).
  • Individuals (patients, etc.) in a facility that's purpose is providing rehabilitation or remunerative work, who are impaired by age, physical or mental deficiency, or injury, or who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market (K.S.A. 44-703 (i)(4)(K)(i)(ii)).
  • Services performed in the employ of the United States Government (K.S.A. 44-703 (i)(4)(D)).
  • Elected officials (K.S.A. 44-703 (i)(4)(A)(i)).
  • Members of legislative bodies (K.S.A. 44-703 (i)(4)(A)(ii)).
  • Members of the judiciary or of a state or political subdivision (K.S.A. 44-703 (i)(4)(A)(ii)).
  • Members of the state national guard or air national guard (K.S.A. 44-703 (i)(4)(A)(iii)).
  • Employees serving on a temporary basis in cases of fire, storm, snow, earthquake, flood, or similar emergency (K.S.A. 44-703 (i)(4)(A)(iv)).
  • Employees in a position which, under or pursuant to the laws of this state, is designated as a major nontenured policymaking or advisory position or as a policymaking or advisory position the performance of the duties of which ordinarily does not require more than eight hours per week (K.S.A. 44-703 (i)(4)(A)(v)). (Note: Board member positions (for example, job code 010300) would be included in this group of employees.)
  • Inmates in the employ of a custodial or correctional institution (K.S.A. 44-703 (i)(4)(M)).

If an employee is on more than one concurrent position, and at least one of those positions is subject to UCI, then the Employee Tax Data should be set to subject. UCI tax will have to be calculated and paid on all wages for that employee including positions that are not normally subject to UCI, such as board member pay.

Agency personnel are responsible for ensuring that employees are exempted from UCI coverage as appropriate. Exemptions from UCI are entered in SHARP under Employee Tax Data (path: 'Compensate Employees', 'Maintain Payroll Data (US)', 'Use') on the State Tax Data 2 page by clicking "on" the 'Exempt From SUT' checkbox.

Following are the exemptions from Social Security (OASDI) and Medicare, based on the State's current Section 218 Agreement:

  • Students in the employ of a college or university who are regularly enrolled and attending classes (321.1(g))
  • Members of the Kansas Police & Firemen's Retirement (321.1(d))
  • Non-resident aliens in possession of an F-1 VISA (321.1(h))
  • Non-resident aliens in possession of a J-1 VISA (321.1(h))
  • Non-resident aliens in possession of an M-1 or Q-1 VISA (321.1(h)) National Guard employees on active duty (321.1(c))
  • National Guard employees on active duty (321.1(c))
  • Wages After Death - If a wage payment will be issued in the subsequent year after the year in which the person died, the wages are not subject to Social Security and Medicare under Sec. 209M of the Social Security Act
  • Medicare covered employees - Kansas Police & Firemen employees hired after 04/01/1986 (Choose "Medicare only" for the FICA Status field)
  • Patients or inmates in the employ of a hospital, home, or penal institution (321.1(b))
  • Services by an individual who has taken a vow of poverty (321.1(j))

As with UCI, agency personnel are responsible for ensuring that employees are exempted from Social Security (OASDI) and Medicare coverage as appropriate. Exemptions from Social Security and Medicare are entered under Job Data (path: 'Administer Workforce', 'Administer Workforce (GBL)', 'Use') on the Payroll page. If the employee is exempt from both OASDI and Medicare, 'Exempt' should be chosen for the FICA Status field. If the employee is exempt only from OASDI, 'Medicare only' should be chosen.

DB:JJM: kao

04-P-024 Optional Group Life Insurance Rate Changes (Supersedes 03-p-036)
DATE: December 22, 2003
SUBJECT: Optional Group Life Insurance Rate Changes
EFFECTIVE DATE: January 1, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Optional Group Life Insurance Rate Changes

Please note that effective January 1, 2004 the Optional Group Life Insurance rates are changing as follows:

 

Age at the Beginning
of the Calendar Year
Monthly Premium
per $1,000
Under 30 $0.05
30-34 $0.07
35-39 $0.08
40-44 $0.09
45-49 $0.13
50-54 $0.19
55-59 $0.36
60-64 $0.55
65-69 $1.07
70-74 $1.73
75 and Older $2.06

An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available is $250,000.00. The age calculation will continue to be based on the employee's attained age as of January 1st of the current calendar year.

The new rates are effective with coverage for the month of January 2004. Therefore, the January 16, 2004 paycheck (paycheck issued for the payroll period ending January 3, 2004) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month's coverage.

The Division of Accounts and Reports, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to January 1, 2004.

DB:JJM:rdb

04-P-025 W-2 Wage and Tax Statements for Calendar Year 2003 (Supersedes 03-p-032)
DATE: January 5, 2004
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2003
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
Debbie Esquibel (785) 368-6313 Debbie.Esquibel@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Information Pertaining to Employee 2003 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2003 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 25, 2003.

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 2003 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2003 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 once again be used for 2003. The standard W-2 conforms to our SHARP software, and aids in reducing programming costs for updating and maintaining custom programs in SHARP. 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), and is pressure-sealed.

Agencies are reminded that the mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-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 2003 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 16, 2004. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.

In cases where the 2003 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the 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 2003 and 2002, agencies are strongly encouraged to recommend that employees use the 'W-2 Reissue Request' functionality found in Employee Self Service at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. 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 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 (2003 or 2002) the reissued W-2 is needed. W-2's for 2002 are currently available, with W-2's for 2003 becoming available Monday, February 2, 2004.

The Division of Accounts and Reports, Payroll Services will continue to provide duplicate 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 evening 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 2003 W-2's for each printing. The requests should be in social security number order and should include each employee's name, employee ID, and correct mailing address in addition to the SSN. Requests for duplicate W-2's for years prior to 2003 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 Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.state.ks.us.

The W-2 form used prior to 2002 provided the employee a summary, which showed calculations for federal, state, social security, and Medicare grosses. This summary is no longer available using the standard functionality provided by our software. Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. In addition, on-line 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 / Compensate Employees / Maintain Payroll Data U.S. / Report / 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 paychecks dated December 19, 2003 and the off-cycle paychecks dated December 26, 2003 are included in the 2003 W-2 amounts.

DB:JJM:rdb

Attachments: 2003 W-2 Wage and Tax Statement Calculations (.pdf)
     Sample KPAY318.SQR (.pdf)

04-P-026 2004 W-2 Production Reports (Supersedes 03-p-033)
DATE: January 7, 2004
SUBJECT: 2004 W-2 Production Reports
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: 2004 W-2 Production Reports to be Run Throughout the Year

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 2004 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 2004 W-2 production reports are scheduled to be generated:

  • Friday, February 13, 2004
  • Friday, March 12, 2004
  • Friday, April 9, 2004
  • Friday, May 7, 2004
  • Friday, June 4, 2004
  • Friday, July 2, 2004
  • Friday, July 30, 2004
  • Friday, August 27, 2004
  • Friday, September 24, 2004
  • Friday, October 22, 2004
  • Friday, November 5, 2004
  • Friday, November 19, 2004
  • Friday, December 3, 2004
  • Wednesday, December 15, 2004
  • Monday, December 20, 2004
  • Monday, December 27, 2004
  • Wednesday, December 29, 2004 - 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. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2's for 2004 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 KTAX900 in their agency mailbox on the MVS. The KTAX900 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.

Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.

DB:JJM:rdb

04-P-027 Missouri State Withholding (Supersedes 03-p-025)
DATE: January 16, 2004
SUBJECT: Missouri State Withholding
EFFECTIVE DATE: January 1, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Change in Missouri State Withholding Tax Formula for 2004

The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2004. The following table is a list of current filing statuses and the standard deduction for 2004.

Filing Status Standard Deduction
Single $4,850.00
Married and spouse works $4,850.00
Married and spouse does not work $9,700.00
Head of Household $7,150.00

For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4 and then $1,200.00 for each additional allowance thereafter. Please note, in past years, the head of household status was not allowed the $1,200.00 deduction for allowances two through four when using the withholding tax formula.

Agencies are reminded that the Missouri Department of Revenue does not use the federal W-4 for establishing filing status and exemptions for Missouri. Agencies should insure that they have a MO W-4 on file for employees claiming Missouri withholding. If the employee does not have a MO W-4 on file, the employee's Missouri withholding status should be Single with zero allowances. Please find attached copies of the MO W-4 and 2004 Missouri Withholding Tax Formula for your information

The Division of Accounts and Reports, 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 reflected on all paychecks issued through their systems.

DB:JJM:rdb

Attachments: Missouri W-4 and 2004 Missouri Withholding Tax Formula

04-P-028 Change in KPERS Employer Contribution Rates for Correction Officer Groups A & B (Supersedes 04-p-021)
DATE: April 9, 2004
SUBJECT: Change in KPERS Employer Contribution Rates for Correction Officer Groups A & B
EFFECTIVE DATE: The Pay Period beginning March 28, 2004 and ending April 10, 2004, paid April 23, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Change In KPERS Employer Contribution Rates for Correction Officer Groups A & B

The Kansas Public Employees Retirement System (KPERS) notified the Division of Accounts and Reports that the employer contribution rates for Correctional Officers Groups A & B were modified to 1.02% and 1.05%, respectively, for the remaining five pay dates in fiscal year 2004. The modified rates are effective for the pay period beginning March 28, 2004 and ending April 10, 2004, paid April 23, 2004.

The Division of Accounts and Reports, 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.

DB:JJM:rdb

 

04-P-029 Employee Taxability for the Personal (Commuting) Use of a State-Owned or Leased Vehicle (Supersedes 03-p-041)
DATE: April 13, 2004
SUBJECT: Employee Taxability for the Personal (Commuting) Use of a State-Owned or Leased Vehicle
EFFECTIVE DATE: January 1, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Information Concerning Employee Use of a State-Owned or Leased Vehicle

The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated, Kansas Administrative Regulations, and Executive Order 03-04.

BACKGROUND

In general, an employee's personal (commuting) use of a state-owned or leased vehicle is a taxable fringe benefit. Commuting is defined as travel back and forth between the employee's residence and official workstation. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.

POLICY

K.S.A. 8-301 states that all publicly owned vehicles are for official business only and may not be used for private use, private business, or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:

(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.

(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.

(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.

K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.

Please note, Executive Order 03-04, which became effective on April 1, 2003 directs the Secretary of Administration to amend the applicable Kansas Administrative Regulation governing commuting in a state-owned or leased vehicle to further restrict such travel. Effective April 1, 2003 and continuing until amendment of the Kansas Administrative Regulation governing commuting, the head of each executive branch state agency under the jurisdiction of the Governor shall prohibit commuting in state-owned or leased vehicles by employees of that agency except under the circumstances listed below:

  1. The vehicle is marked as a law enforcement vehicle and is used by an employee certified as law enforcement officer under the provisions of K.S.A. 74-5601 et seq.
  2. The vehicle is used to commute by an employee who is determined by the Secretary of Administration to be required to respond to reoccurring public safety emergencies under specified circumstances that make commuting in a state vehicle cost effective.
  3. The vehicle is assigned to the employee on a trip basis only and driving the vehicle to the employee's residence will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
  4. The vehicle is assigned for use in the state vanpool program under K.S.A. 75-46a02 et seq.
  5. The vehicle is used to transport the Governor or other elected official when the Superintendent of the Highway Patrol determines using the state vehicle is a necessary security measure.

Kansas Administrative Regulation 1-17-2(b)(1) and the Administrative Guidelines For Commuting Under Executive Order 03-04 allow field employees, such as inspectors, to commute between the field employee's residence and work sites in a state-owned or leased vehicle when the employee's residence is designated as the official work station. The employee's residence can be designated as the official workstation when over 50% of the employee's work time involves direct travel from his or her residence.

Please note that meeting the Kansas Administration Regulation or Executive Order 03-04 requirements to commute with the state-owned or leased vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of the vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle (listed in Appendix D) or the employee's residence meets the IRS's 'principal place of business' test discussed below.

PRINCIPAL PLACE OF BUSINESS TEST

Field employees generally do not report fringe benefit income for official travel between the employee's residence and work sites. To be excluded from the IRS's fringe benefit income reporting requirements, the employee's residence must qualify as the employee's 'principal place of business'. A principal place of business is defined as a place of business which is used by the taxpayer for the administrative or management activities of a trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business. If the employee works both out of his or her home (because it has been designated as the official work station) and has a state provided office, the employee's principal place of business needs to be determined by examining all the facts and circumstances.

AGENCY RESPONSIBILITY

Agencies shall identify and notify those employees who use state-owned or leased vehicles and who park those vehicles overnight at their residences (commuting) that the commuting use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS discussed in Appendix A unless the vehicle is listed in Appendix D or the employee's residence meets the 'principal place of business test'.

Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include, at a minimum, the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).

Agencies shall provide the payroll system with reports and data to:

  1. Record fringe benefit income chargeable to each affected employee.
  2. Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
  3. Calculate and withhold from each affected employee's pay the federal and state income tax due.
  4. Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
  5. Remit all withheld taxes and contributions to the appropriate authorities.
  6. Report on each affected employee's W-2, the total fringe benefit income for the calendar year.

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Attachments (pdf)

04-P-030 Housing, Food Service and Other Employee Maintenance (Supersedes 03-p-045)
DATE: May 11, 2004
SUBJECT: Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE: July 1, 2004
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9

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 Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates for fiscal year 2005 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component.

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.

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Attachment:  DA-171 (.pdf)    

04-P-031 Fiscal Year End Payroll Processing for FY 2004 (Supersedes 03-P-043)
DATE: May 11, 2004
SUBJECT: Fiscal Year End Payroll Processing for FY 2004
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 joyce.dickerson@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Summary of Fiscal Year End Payroll Processing

This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular regarding the fiscal year 2005 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 5, 2004 will use fiscal year 2004 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 5, 2004 will use fiscal year 2005 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 and adjustments (with the exception of reversals) will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. For example, the Run B off-cycle (processed June 16, paid June 21) and the Run C off-cycle (processed June 21, paid June 24) for the pay period ending June 5, 2004 will be charged to fiscal year 2004 expenditures. The Run A off-cycle (processed June 28 paid July 2) for the pay period ending June 19, 2004 will be charged to fiscal year 2005 expenditures.

Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run C off-cycle scheduled for June 21, 2004 (paid June 24) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2004 expenditures.

Once the Run C off-cycle for the period ending June 19, 2004 (processed July 6, paid July 9) has been processed, agencies should not request or process paycheck reversals until STARS FY 2004 closing has been successfully completed. STARS is scheduled to resume processing July 21, 2004.

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 the morning of June 14, 2004 and should be completed by 8:30 a.m. In that process, a new row will be added to the Department Budget tables with an effective date of 06/06/2004 (beginning date of the first on-cycle payroll charged to FY2005). The Budget End Date will be 06/05/2005. Agencies should not enter any rows with an effective date greater than or equal to June 6, 2004 until after the FY2005 insert has been completed. When adding new rows for FY2005, agencies should verify that 06/05/2005 was used as the Budget End Date for FY2005.

GHI Adjustments

As of July 1, 2004, NO payroll processing for GHI adjustments should be made for contract year 2002. Contact Judy Allman in the Division of Personnel Services at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 2002.

Julian Date Reset

The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2004. The Julian date used for the off-cycle's document number is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's check issue date. For example (assuming processing occurs before midnight), the Run C off-cycle for the pay period ending June 5, 2004 (processed June 21, paid June 24) will have 357 as the Julian date in the document number and expenditures will be charged to fiscal year 2004. The Run A off-cycle for the pay period ending June 19, 2004 (processed June 28, paid July 2) will have 364 as the Julian date in the document number and expenditures will be charged to fiscal year 2005. The Run B off-cycle for the pay period ending June 19, 2004 (processed June 30, paid July 6) will have 366 as the Julian date in the document number and expenditures will be charged to fiscal year 2005. The Run C off-cycle for the pay period ending June 19, 2004 (processed July 6, paid July 9) will have 006 as the Julian date in the document number and expenditures will be charged to fiscal year 2005.

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 STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2005.

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 created on the Tuesday night following the end of the payroll period. Any changes to the employee's job data information (i.e., pay grade, rate of pay, FLSA status, etc.) 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. On-line agencies can review employer contributions by accessing the employee's paycheck deduction information for the period. Employer contributions have a deduction class of Non-taxable.

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04-P-032 Parking Fee Increase - Curtis Building Garage (Supersedes 03-p-044)
DATE: May 18, 2004
SUBJECT: Parking Fee Increase - Curtis Building Garage
EFFECTIVE DATE: Payroll Period Beginning June 6, 2004 and Ending June 19, 2004, Paid July 2, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Parking Fee Increase - Curtis Building Garage

Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2005. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $22.04 per bi-weekly pay period effective with the payroll period beginning June 6, 2004 and ending June 19, 2004, paid July 2, 2004. The associated administrative fee code PKAD05 increases to $1.69 ($22.04 X .0765).

Employees with the Department of Commerce and the Board of Accountancy who park in the Curtis Building Garage will see parking deduction codes PKT10B and PPKT10 increased to $11.02 per bi-weekly pay period. Administrative fee code PKAD07 increases to $0.84 ($11.02 X .0765).

The Division of Accounts and Reports, 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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04-P-033 Addition of Earnings Code 'SF4'
DATE: June 16, 2004
SUBJECT: Addition of Earnings Code 'SF4'
EFFECTIVE DATE: Pay Period Beginning June 6, 2004; Ending June 19, 2004; Paid July 2, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Addition of Earnings Code 'SF4' for Kansas State University

Executive Directive 04-351 established a new $0.40 per hour shift differential for eligible employees covered by the Maintenance and Service Unit at Kansas State University. The earnings code for this shift differential is 'SF4' and will only be used by Kansas State University (agency 367). The new earnings code will be effective for the payroll period beginning June 6, 2004; ending June 19, 2004; paid July 2, 2004, will add to gross earnings, and will be displayed as follows:

Code Description
SF4 Shift 4 - KSU Only-$0.40

The Division of Accounts and Reports, Payroll System Team is responsible for adding the new earnings code to the SHARP payroll system. Regents' institutions are responsible for ensuring the new earnings code is added to their individual systems.

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04-P-034 Fiscal Year 2005 Payroll Contribution Rates (Supersedes 03-p-049)
DATE: June 17, 2004
SUBJECT: Fiscal Year 2005 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 6, 2004; Ending June 19, 2004; Paid July 2, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: -Fiscal Year 2005-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans
-End of KPERS Death and Disability Moratorium

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 2005. The fiscal year 2005 rates will become effective with the on-cycle payroll period beginning June 6, 2004, ending June 19, 2004 and paid July 2, 2004. The withholding rates for OASDI, Medicare, federal taxes, and Kansas' taxes remain unchanged for the remainder of calendar year 2004.

The moratorium on employer's contributions to KPERS' Death and Disability Insurance ceases at the end of FY04. Therefore, the Division of Accounts and Reports will resume collecting the contributions with the on-cycle payroll period beginning June 6, 2004, ending June 19, 2004 and paid July 2, 2004. Please note, the moratorium of employer's contributions to KPERS' Death and Disability Insurance was in place for payroll periods with original check dates between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. Agencies are reminded that SHARP off-cycle payrolls use payroll period end dates to determine if the contributions for KPERS' Death and Disability Insurance should be taken. Therefore, no contributions will be taken for paycheck adjustments with payroll period end dates that contain an original check date within the moratorium period.

The Division of Accounts and Reports' 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 performed in their individual systems. Regents' institutions are also responsible for ensuring that the STARS' funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2005.

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Attachments

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