Kansas Department of Administration

FY 2006

06-P-001 Change in Organization Dues Deduction Amounts (Supersedes 05-p-001)
DATE: August 12, 2005
SUBJECT: Change in Organization Dues Deduction Amounts
EFFECTIVE DATE: Payroll Period Ending September 10, 2005
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 28, 2005 and ending September 10, 2005, paid September 23, 2005 as follows:
 

Deduction Code Hourly Rate of Pay Bi-Weekly Salary Dues Deduction
ORG001 $ 7.35 or Less $ 588.00 or Less $ 8.05
ORG002 $ 7.36 - $ 8.51 $ 588.80 - $ 680.80 $ 8.55
ORG003 $ 8.52 - $ 9.39 $ 681.60 - $ 751.20 $ 9.05
ORG004 $ 9.40 - $ 10.35 $ 752.00 - $ 828.00 $ 9.55
ORG005 $ 10.36 - $ 11.41 $ 828.80 - $ 912.80 $10.05
ORG006 $ 11.42 or Greater $ 913.60 - or Greater $10.55
ORG888 KU Medical Center - Nurses $10.55
ORG 018 & 019 KU - Graduate Teaching Assistants $ 8.75

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 23, 2005.

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06-P-002 Additions/Change of Earnings Codes (S12, S13, S10)
DATE: August 29, 2005
SUBJECT: Additions/Change of Earnings Codes (S12, S13, S10)
EFFECTIVE DATE: Various
CONTACT: Kathy Ogle (785) 296-2290 Kathy Ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Additions/Change of Earnings Codes (S12, S13, S10)

Executive Directive No. 05-363 establishes two new pay differential Earnings Codes, and changes one as follows:

A new public accommodation pay premium of $1.20 per hour has been established for eligible employees. This pay premium is only available for use by the Kansas Department of Transportation for employees in eligible job classes who work a regularly scheduled evening or night shift on construction and maintenance projects for highways or roads, as provided in supplemental agreements with appropriate employee organizations. The new earnings code is effective for the payroll period beginning June 5, 2005; ending June 18, 2005; paid July 1, 2005, will add to gross earnings and will be displayed as follows:

Earnings
Code

Description
Short
Description

Rate
Effective
Date
S12 Pay Prem-Public Accommodation PP-Pub Acc $1.20 06/05/2005

A new special duty differential of $1.00 per hour has been established for Certified Nurse Aide I employees of the Kansas Commission on Veterans' Affairs for the actual hours of work spent passing medications. The new earnings code is effective for the payroll period beginning July 3, 2005; ending July 16, 2005; paid July 29, 2005, will add to gross earnings and will be displayed as follows:

Earnings
Code

Description
Short
Description

Rate
Effective
Date
S13 Pay Diff-KCVA-CNA I Meds PD-KCVA $1.00 07/03/2005

The amount of pay differential paid using Earnings Code S10 has been changed from $1.00 per hour to $1.50 per hour. This pay differential is only available for use by the Kansas Department of Transportation for non-exempt employees performing and/or supporting emergency snow removal activities. The new amount is effective for the payroll period beginning August 28, 2005; ending September 10, 2005; paid September 23, 2005, and will be displayed as follows:

Earnings
Code

Description
Short
Description

Rate
Effective
Date
S10 Shift 10-KDOT-$1.50 Shift KDOT $1.50 08/28/2005

The SHARP self-service paycheck view will display the earnings using the 'Short Description' noted above while the paycheck stub will display the earnings using the 'Description' column. The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these new earnings code and changing the existing code in the SHARP system. Regent's institutions are responsible for ensuring that these changes are reflected in their payroll systems.

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06-P-003 Organization Dues Changes for ORG030 (Supersedes 05-P-003)
DATE: August 30, 2005
SUBJECT: Organization Dues Changes for ORG030
EFFECTIVE DATE: Payroll Period Ending September 10, 2005
CONTACT: Janice Wolfley (785) 296-3699 Janice Wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30

The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code 'ORG030', will change from $24.05 to $24.55 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 28, 2005 and ending September 10, 2005, paid September 23, 2005.

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 September 23, 2005.

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06-P-004 Organization Dues Change for ORG133 (Supersedes 00-P-023)
DATE: September 8, 2005
SUBJECT: Organization Dues Change for ORG133
EFFECTIVE DATE: Payroll Period Ending September 24, 2005
CONTACT: Janice Wolfley (785) 296-3699 Janice Wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Change in Organization Dues Deduction for Public Service Employees Union Local 1132

The organization dues for members of the Public Service Employees Union, Local 1132, ORG133, will be increased from $11.00 to $12.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning September 11, 2005 and ending September 24, 2005, paid October 7, 2005.

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 October 7, 2005.

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06-P-005 Employee Taxability of State-Owned or Leased Vehicles (Revises 05-P-023)
DATE: September 16, 2005
SUBJECT: Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE: September 1, 2005
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: IRS Changes to Cents-Per-Mile Valuation Rule for End of Calendar Year 2005

The Internal Revenue Service (IRS) has increased the mileage rate from 40.5 cents (for January 1, 2005 through August 31, 2005) to 48.5 cents (for September 1, 2005 through December 31, 2005) under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned or leased vehicle. The new rate is effective for the last four months of 2005 in a response by the IRS to the recent gas price increases. 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 48.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle's total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2005 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $14,800. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.

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

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06-P-006 (Supersedes 03-P-037)
DATE: September 30, 2005
SUBJECT: Organization Dues Change for ORG371
EFFECTIVE DATE: Payroll Period Ending October 8, 2005
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Change in Organization Dues Deduction for AFSCME Council 72 Local 3371

The organization dues for members of the AFSCME Council 72, Local 3371, ORG371, will be increased from $13.82 to $15.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning September 25, 2005 and ending October 8, 2005, paid October 21, 2005.

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 October 21, 2005.

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06-P-007 SHARP Bi-Weekly Payroll Schedule for 2006 (Supersedes 05-P-007)
DATE: October 4, 2005
SUBJECT: SHARP Bi-Weekly Payroll Schedule for 2006
EFFECTIVE DATE: Calendar Year 2006
CONTACT: Kathy Ogle (785) 296-2290 kathy.ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2006

Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2006. 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' and 'C') will normally be dated three working days from the date the off-cycle is 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.

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Attachments: Bi-Weekly Payroll Schedule for Calendar Year 2006 (pdf)

06-P-008 Voluntary Tax Sheltered Annuity Company Changes (Supersedes 02-P-005)
DATE: October 5, 2005
SUBJECT: Voluntary Tax Sheltered Annuity Company Changes
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 Abby.Moore@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Voluntary Tax Sheltered Annuity Company Changes

Payroll Services has been notified that the name for American Express Financial Advisors, Inc. (VTSA #321) has changed to Ameriprise Financial Services, Inc. Vendor number 410823832-05 in STARS has been closed and remittances have been redirected to the new vendor/suffix combination 410973005-00 for Ameriprise Financial Services, Inc.

In addition to the above name change, the Kansas Board of Regents has requested that the Principal Financial Group (VTSA #084) be removed from the list of approved providers for voluntary tax sheltered annuities. This company has no current subscribers and is deleted effective September 25, 2005.

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

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06-P-009 Addition of Payroll Deduction Codes for Health Savings Account
DATE: October 14, 2005
SUBJECT: Addition of Payroll Deduction Codes for Health Savings Account
EFFECTIVE DATE: Pay Period Beginning December 18, 2005; Ending December 31, 2005; Paid January 13, 2006
CONTACT: Nancy Ruoff (785) 296-5369 Nancy.Ruoff@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Addition of New Payroll Deduction Code for the Health Savings Account Program

For Plan Year 2006, a Qualified High Deductible Health Plan (QHDHP) is available to employees as a benefit option under the State of Kansas health insurance program. The QHDHP is offered through Coventry Healthcare. Employees electing the QHDHP option are also required to contribute to a Health Savings Account (HSA). An HSA is a special account owned by an individual where contributions to the account are to pay for current and future medical expenses. HSA's were created in Medicare legislation signed into law by President Bush on December 8, 2003. United Missouri Bank (UMB) is the custodian for the State of Kansas HSA program.

To accommodate the new HSA employee contribution, new plan types and deduction codes will be added in SHARP effective for the payroll period beginning December 18 and ending December 31, 2005, paid January 13, 2006. These new plan types/deduction codes are:

PLAN
TYPE
DEDUCTION
CODE

DESCRIPTION
SHORT
DESCRIPTION
6Y HSASGL HSA-Single Coverage/High Ded HSA-Single
6Z HSADEP HSA-Dependent Coverage/HighDed HSA-Depend

The HSA deduction will always be taken on a pretax basis. The Health Savings Account deduction will occur semi-monthly on the first two paychecks of the month. Payroll deductions for the Health Savings Account program will be remitted to UMB on payday and should be posted to the individual employee accounts on payday.

If an employee enrolls in the new Coventry QHDHP, they will be required to enroll in a Health Savings Account with payroll deductions on a pretax basis for Plan Year 2006. The open enrollment process on the web will require the employee who enrolls in the Coventry QHDHP to also enroll in the HSA. These employees will not be eligible to enroll in the KanElect Health Care Flexible Spending Account for 2006.

For 24 pay cycle employees, the minimum semi-monthly payroll deduction will be $25.00. The maximum semi-monthly payroll deduction will be $62.50 if enrolling in single coverage and $125.00 if enrolling in any level of dependent coverage. For 16 pay cycle employees, the minimum semi-monthly payroll deduction will be $37.50. The maximum semi-monthly payroll deduction will be $93.75 if enrolling in single coverage and $187.50 if enrolling in any level of dependent coverage.

Upon completion of Open Enrollment, an enrollment file will be sent to Coventry by the Division of Health Policy and Finance. Coventry will then provide the enrollment information to UMB bank. UMB will send the employee the HSA account enrollment form and obtain the required signature. Upon receipt by UMB Bank of the required enrollment form, an HSA account will be opened and a debit card sent to the employee.

The following new Fund/Index combination has been established for the Department of Administration clearing fund for Health Savings Account:

AGENCY FUND BUDGET UNIT INDEX
173 9051 9075 9075

In addition, index code 9702 has been added to the STARS system for each of the Regent's Payroll Funds (98XX) to record the receipt of the deduction by the individual Regent's institutions. Attached is an updated copy of the "Index Codes for Agency and DOA Clearing Funds". This document has been updated for the changes noted above and replaces the document issued with Informational Circular 04-P-014 dated November 4, 2003.

The Division of Accounts and Reports, Payroll Services Section will remit the monies to UMB for all agencies. The KPAYHSA2 report will be available in the agency MVS directories to provide employee detail for each remittance period.

The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Health Savings Account Deduction. Regent's institutions are responsible for ensuring that the Health Savings Account deduction is available in their individuals systems. In addition, Regent's institutions should be prepared to test their benefits interface and payroll files for the new deduction prior to November 15, 2005.

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

06-P-010 Change in Social Security Base Rate (Supersedes 05-P-008)
DATE: October 18, 2005
SUBJECT: Change in Social Security Base Rate
EFFECTIVE DATE: January 1, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Social Security Wage Base Increase to $94,200 effective January 1, 2006

The Social Security wage base for OASDI will be $94,200 for calendar year 2006. This is a $4,200 increase from the 2005 wage base of $90,000. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2006 will be $5,840.40. There continues to be no limit on wages subject to the Medicare tax in 2006. 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 $5,840.40 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.

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06-P-011 Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2006 (Supersedes 05-P-010)
DATE: November 1, 2005
SUBJECT: Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2006
EFFECTIVE DATE: January 1, 2006
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: 2006 Deferred Compensation and Tax Sheltered Annuity Limits

Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will increase effective January 1, 2006 as follows:

457(b) Deferred Compensation:

The Deferred Compensation annual contribution limit increases from the lesser of $14,000 or 100% of includible compensation (2005 calendar year limit) to the lesser of $15,000 or 100% of includible compensation (2006 calendar year limit).

The Deferred Compensation special catch-up limit increases from $28,000 (2005 calendar year limit) to $30,000 (2006 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 $5,000 (for 2006) to a total of $20,000.

403(b) Tax Sheltered Annuities (TSA):

The limit on annual contributions to a TSA for 2006 is the lesser of $44,000 or 100% of compensation.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $210,000 (for 2005) to $220,000 (for 2006). The $220,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees who participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $22,000 ($220,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $30,800 ($220,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).

403(b) Tax Sheltered Annuities (TSA):

The limit on annual contributions to a TSA for 2006 is the lesser of $44,000 or 100% of compensation.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $210,000 (for 2005) to $220,000 (for 2006). The $220,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees who participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $22,000 ($220,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $30,800 ($220,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).

For employees participating in the Kansas Board of Regents' mandatory plan prior to 1996, participants are 'grandfathered' and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $315,000 (for 2005) to $325,000 (for 2006). However, participants should note their maximum annual compensation limit will be $314,285.71, since the $314,285.71 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $44,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $14,000 (for 2005) to $15,000 (for 2006). In addition, the age 50 or older catch-up provision is increased from $4,000 (for 2005) to $5,000 (for 2006). Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on annual contribution by $5,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($15,000 for 2006) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.

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

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

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

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06-P-012 Key Payroll Processing Dates in November 2005 (Supersedes 05-P-009)
DATE: November 2, 2005
SUBJECT: Key Payroll Processing Dates in November 2005
EFFECTIVE DATE: November 2005
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: Payroll processing schedule changes due to the November 2005 holidays.

Friday, November 11, 2005 (Veterans' Day), Thursday, November 24, 2005 and Friday, November 25, 2005 (Thanksgiving Holiday) are designated holidays for state service in 2005. 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 4, 2005

Payday for the payroll period ending October 22, 2005.

Time and leave interface agencies must have time and leave files for the period ending November 5, 2005 submitted to the Department of Administration for processing by 5:00 PM on November 4, 2005 (these files would normally be due Monday, November 7, 2005).

Regents' Run C off-cycle payroll files for the period ending October 22, 2005 must be received by the Department of Administration by 5:00 PM on November 4, 2005.

Monday, November 7, 2005

Paysheets for the on-cycle payroll for the period ending November 5, 2005 will be created on Monday, November 7, 2005. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 7, 2005 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 5, 2005 will also occur November 7, 2005; 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 22, 2005 will be processed November 7, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 10, 2005.

Tuesday, November 8, 2005

The second on-cycle preliminary pay calculation for the period ending November 5, 2005 will occur November 8, 2005.

Wednesday, November 9, 2005

The third on-cycle preliminary pay calculation for the period ending November 5, 2005 will occur November 9, 2005.

Thursday, November 10, 2005

Regents' on-cycle payroll files for the period ending November 5, 2005 are due to the Department of Administration by 6:00 AM on November 10, 2005.

Final pay confirmation for the on-cycle payroll for the period ending November 5, 2005 will occur November 10, 2005. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 10, 2005 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 10, 2005 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 5, 2005 must be received by the Department of Administration by 5:00 PM on November 10, 2005.

Friday, November 11, 2005
(Veterans' Day Holiday)

Monday, November 14, 2005

The Run A off-cycle for the period ending November 5, 2005 will be processed November 14, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 18, 2005.

Tuesday, November 15, 2005

Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 5, 2005 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 5, 2005 must be received by the Department of Administration by 5:00 PM on November 15, 2005 in order to be processed on Wednesday, November 16, 2005.

Wednesday, November 16, 2005

The Run B off-cycle for the period ending November 5, 2005 will be processed November 16, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 21, 2005.

Friday, November 18, 2005

Payday for the payroll period ending November 5, 2005.

Time and leave interface agencies must have time and leave files for the period ending November 19, 2005 submitted to the Department of Administration for processing by 5:00 PM on November 18, 2005 (these files would normally be due Monday, November 21, 2005).

Regents' Run C off-cycle payroll files for the period ending November 5, 2005 must be received by the Department of Administration by 5:00 PM on November 18, 2005.

Monday, November 21, 2005

Paysheets for the on-cycle payroll for the period ending November 19, 2005 will be created on Monday, November 21, 2005. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 21, 2005 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 19, 2005 will also occur November 21, 2005; 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 19, 2005.

The Run C off-cycle for the period ending November 5, 2005 will be processed November 21, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 28, 2005.

Tuesday, November 22, 2005

The second on-cycle preliminary pay calculation for the period ending November 19, 2005 will occur November 22, 2005.

Wednesday, November 23, 2005

Final pay confirmation for the on-cycle payroll for the period ending November 19, 2005 will occur November 23, 2005 (Final pay confirmation would normally occur Friday, November 25, 2005). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 23, 2005 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 23, 2005 in order to be reflected in the final paycheck created for the employee.

Regents' on-cycle payroll files for the period ending November 19, 2005 are due to the Department of Administration by 6:00 AM on November 23, 2005.

Regents' Run A off-cycle payroll files for the period ending November 19, 2005 must be received by the Department of Administration by 5:00 PM on November 23, 2005.

Attached is a calendar for the month of November 2005, 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: November 2005 Payroll Calendar

06-P-013 December 2005 Payroll Processing (Supersedes 05-P-013)
DATE: November 22, 2005
SUBJECT: December 2005 Payroll Processing
EFFECTIVE DATE: Immediately
CONTACT: Kathy Ogle (785) 296-2290 kathy.ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: December 2005 Payroll Processing

As 2005 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2005 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2005 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2006 balances; a corrected W-2 (Form W-2C) for 2005 will not be issued for the employee involved.

FINAL 2005 PAYCHECK

The final on-cycle paychecks for calendar year 2005 will be issued December 30, 2005. Paychecks will be mailed on December 29, 2005. The final off-cycle paychecks for calendar year 2005 will also be issued on December 30, 2005 (generated from the off-cycle processed on December 27, 2005).

PAYCHECK REVERSALS

Any 2005 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 27, 2005 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 27, 2005 will update calendar year 2006 balances and will not be reflected in the employee's 2005 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 27, 2005 to enter paycheck adjustment requests for any 2005 paychecks. Adjustments processed in the December 27, 2005 off-cycle payroll will be reflected on the employee's 2005 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 2005 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 Friday, December 16, 2005.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2005 for inclusion in the December 27, 2005 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2005 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2005 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 27, 2005 which are adjusting paychecks issued prior to January 1, 2006 will not result in a W-2C; the adjustment will update the employee's 2006 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 27, 2005 will update the employee's 2006 payroll balances.

REGENTS' INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 17, 2005, paid December 30, 2005 are due to the Department of Administration by 6:00 a.m. on December 22, 2005.

REGENTS' INSTITUTIONS: OFF-CYCLE FILES

2005 Paycheck Reversals

Regent Institutions must submit all transmittals for 2005 paycheck reversals by 5:00 p.m. on Friday, December 23, 2005 in order to update the employee's 2005 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 2006 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2006 submitted after 5:00 pm on December 23, 2005 should default the pay adjust check date to January 1, 2006.

2005 Adjustments and Supplementals

In order to update employee balances for 2005, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 23, 2005.  The Run A off-cycle for the pay period ending December 17, 2005 generated on the night of Tuesday, December 27, 2005 will have a check issue date of December 30, 2005; all activity for this off-cycle will be reflected in the employees' 2005 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 2005 date.

2006 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2006, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 23, 2005, will be considered to be 2006 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2006 business, the employee's 2006 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2006 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2006, agencies should default the pay adjust check date to January 1, 2006).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2006, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2006 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 2005 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2005 deadline for the December 27, 2005 Run A's off-cycle payroll will not be processed until the January 23, 2006 off-cycle payroll.  Since the files will be held, please do not begin submitting those files for processing until the week of January 17, 2006.  The deadline for submitting payroll interface files for the January 23, 2006 off-cycle is 5:00 p.m. on Friday, January 20, 2006.

GENERAL REMINDERS

United Way

The deduction END date on the general deduction panel for 2005 United Way contributions should be dated between December 18, 2005 and December 31, 2005 in order for the last 2005 deduction to be taken on the paycheck issued December 30, 2005. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2006, agencies can enter a new row effective-dated between December 18, 2005 and December 31, 2005 in order for the first deduction for 2006 to be taken on the January 13, 2006 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 17, 2006 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, 2005 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 2006 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 16, 2005 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 20, 2005 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 2006. 

The KPAY320 will be processed the evening of December 20, 2005.  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, 2006 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2006 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 2006 pay date.  

For any 2006 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 20, 2005 and January 1, 2006, agency personnel will need to enter the data with a January 2, 2006 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2005 for any electronic W-4s received in this time period.      

The 2006 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 20, 2005 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 2006.  The new tax data row will be dated January 1, 2006.  Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2006 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 2006 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.
  • Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.

Arrearages/Advances

Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 2005.  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 23, 2005, and prior to December 27, 2005, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2005 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 2005 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 17, 2005 by personal reimbursement as soon as possible.  

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 the employee's Personal Data page by 6:00 pm on December 28, 2005 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 28, 2005 to update the Personal Data page, it is strongly recommended that these changes be made as soon as they are known.  Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2005.  Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees' address lengths.  Abbreviations should be used as needed to stay within the limit.

The W-2 programs will be executed anytime between December 28, 2003 and January 6, 2006. W-2 forms will be mailed on or before January 31, 2006.  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 2005 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. 06-P-007, dated October 4, 2005.  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 2005 Payroll Calendar

DB:JJM:rdb     

06-P-014 Employee Taxability of State-Owned or Leased Vehicles (Supersedes 06-P-005)
DATE: December 6, 2005
SUBJECT: Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE: January 1, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2006

The Internal Revenue Service (IRS) has lowered the mileage rate from 48.5 cents to 44.5 cents beginning January 1, 2006 under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned or leased vehicle. The new rate reflects the drop in gas prices after the sharp increase experienced in the aftermath of Hurricane Katrina. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023. Using this methodology, fringe benefit income is calculated by multiplying the 44.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle's total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2006 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $14,800. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.

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

DB:JJM:kao

06-P-015 Employee Taxability of State-Owned or Leased Vehicles (Revises 06-P-014)
DATE: December 9, 2005
SUBJECT: Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE: January 1, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: IRS Changes Luxury Vehicle Fair Market Value for Calendar Year 2006

The Internal Revenue Service (IRS) has changed the definition of a "luxury vehicle" beginning January 1, 2006. A "luxury vehicle" will be defined as one with a fair market value in excess of $15,000, increased from $14,800, for a passenger vehicle first made available for an employee's personal use in 2006. This definition is used under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned or leased vehicle. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023. Using this methodology, fringe benefit income is calculated by multiplying the 44.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle's total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2006 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,000. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.

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

DB:JJM:kao

06-P-016 New Advance Earned Income Credit Tables for 2006 (Supersedes 05-P-015)
DATE: December 9, 2005
SUBJECT: New Advance Earned Income Credit Tables for 2006
EFFECTIVE DATE: January 1, 2006
CONTACT: Earl Byrnds (785) 296-5376 earl.brynds@da.state.ks.us
APPROVAL: Approved by Dale Brunton
SUMMARY: New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2006

The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2006.  The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2006.  In order to use the attached tables, income must be annualized.  When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.

The IRS has also released the 2006 Form W-5 - Earned Income Credit Advance Payment Certificate. The 2006 form can be obtained on the IRS website at http://www.irs.gov/formspubs/lists/0,,id=97817,00.html. 

The 2005 Form W-5 expires on December 31, 2005.  The 2006 Form W-5 must be filed with the employer before advance 2006 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 2006 earned and adjusted gross income will each be less than $32,001.00 for single employees or $34,001.00 if filing jointly (include spouse's income if filing jointly).  Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating  foreign earned income).  Finally, a nonresident alien may not claim the advance EIC for 2006 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2006.

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 1, 2005 to all SHARP employees receiving advance EIC payments in 2005.  The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2006.  The 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 e-mail address for those employees who lack an individual e-mail 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 19, 2005 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2006.  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. 

The KPAY320 will process in the batch cycle generated the evening of December 19, 2005.  This process will search for employees who were sent a W-5 notification.  If a new W-5 has not been received, a January 1, 2006 effective-dated row will be inserted in the employee's Tax Data record with an EIC status of 'Not Applicable'.  (Please note the KPAY320 process will also update all employees claiming exemption from withholding tax in 2005, if a new W-4 has not been received.  The update will place a January 1, 2006 effective-dated row in the employee's tax record with a marital status of 'single' and zero exemptions.)

For any Forms W-5 for 2006 (or Forms W-4 for 2005 for employees claiming exemption from withholding) received between December 20, 2005 and January 1, 2006, agency personnel will need to enter the data with a January 2, 2006 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 6, 2006 in order to be reflected in the on-cycle paycheck dated January 13, 2006.  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.  

The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 19, 2005.  The report will be available in the agency directory on the MVS on Tuesday, December 20.

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

DB:JJM:eb

Attachment:  Advance Earned Income Credit Formulas

06-P-017 2006 Percentage Method Tables for Federal Tax Withholding (Supersedes 05-p-014)
DATE: December 9, 2006
SUBJECT: 2006 Percentage Method Tables for Federal Tax Withholding
EFFECTIVE DATE: January 1, 2006
CONTACT: Earl Byrnds (785) 296-5376
APPROVAL: Approved by Dale Brunton
SUMMARY: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2006.

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2006. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2006. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,300 for 2006.

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

An e-mail notification was sent on December 1, 2005 to all SHARP employees who were exempt from federal withholding in 2005.  The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2006.  The notification was sent to the employee's e-mail address listed under 'Update My Profile' in the Employee Self Service Center at https://SHARP.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications were sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notification to their employees.  A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list. 

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2006 W-4s.  As of this date, the IRS has not issued the 2006 Form W-4 - Employee's Withholding Allowance Certificate.  Once the W-4 becomes available, notification will be sent to 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.   Employees should submit their new W-4s by December 16, 2005 to allow adequate time for processing.  Agency personnel have until 6:00 p.m. on December 19, 2005 to enter all paper W-4s into the system.  It is important that agency personnel check the 'New W-4 Received' radio button on the employee's 'Federal Tax Data 1' page in SHARP for the effective-dated row that is entered.  Agency Workflow Administrators also need to check the 'New W-4 Received' radio button on electronic W-4s submitted by the employee for calendar year 2006. 

The KPAY320 will process in the batch cycle generated the evening of December 19, 2005.  This process will search for employees for whom a W-4 notification was sent.  If a new W-4 has not been received, a January 1, 2006 effective-dated row will be placed in the employee Tax Data record, and will update the employee's marital status to 'single' and exemptions to 'zero'.  (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2005 in which the 'New W-5 Received' radio button is not checked.  The update will insert a January 1, 2006 effective dated row with an EIC Status of 'Not Applicable'.)  

For any Forms W-4s for 2006 (or Forms W-5s for 2006 for employees claiming the advanced EIC) received between December 20, 2005 and January 1, 2006, agency personnel will need to enter the data with a January 2, 2006 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 6, 2006 in order to be reflected in the on-cycle paycheck dated January 13, 2006.  Agency Workflow Administrators will also need to change the effective date to January 2, 2006 for any electronic Forms W-4s for 2006 received in this time period.  Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.    

IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually.  Employees who claimed a non-resident alien exempt status in calendar year 2005 must file a new 8233 form for calendar year 2006 if they wish to continue their non-resident alien status.  As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.   

The KPAY320 processed on December 19, 2005 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2006.  The new tax data row will be dated January 1, 2006.  Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2006 has been submitted. 

The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 19, 2005. The report will be available in the agency directory on the MVS on Tuesday, December 20.  A report will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies.  Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems. 

DB:JJM:eb

Attachment:  Tables for Percentage Method of Withholding

06-P-018 Increase in Parking Fees for City of Topeka Parking Garages (Supersedes 05-P-026)
DATE: December 22, 2005
SUBJECT: Increase in Parking Fees for City of Topeka Parking Garages
EFFECTIVE DATE: Payroll Period Beginning December 18, 2005 and Ending December 31, 2005, Paid January 13, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Marilyn Jacobson
SUMMARY: Increase in Parking Fees for City of Topeka Parking Garages

Effective January 1, 2006, the City of Topeka is increasing its non-reserved parking rates for all City parking garages. This rate increase impacts State of Kansas agencies with contracts for parking in the Centre City Garage (9th and Kansas) and the 512 Jackson garage. The monthly parking rate for non-reserved spaces has increased from $57.00 a month to $59.50 a month. Employees who park in non-reserved spaces will see their parking deduction increase starting with the payroll period beginning December 18, 2005 and ending December 31, 2005, paid January 13, 2006.

Due to the increase, the parking deduction codes for APKA02 and PPKA02 (used by the Department on Aging at 512 Jackson) are increasing from $14.77 per bi-weekly pay period to $15.92 per bi-weekly pay period. The related parking administrative fee code, PKAD04, will also increase from $1.13 per bi-weekly pay period to $1.22 per bi-weekly pay period.

The following parking deduction codes used for the Centre City garage are also effected by this increase: APKA07 and PPKA07 (used by the Department of Agriculture), APKA08 and PPKA08 (used by the Ethics Commission), APKA09 and PPKA09 (used by the Conservation Commission), and APKA10 and PPKA10 (used by the Kansas Water Office). The deduction amount for these codes will increase from $26.31 per bi-weekly pay period to $27.46 per bi-weekly pay period. Parking administrative fee code PKAD11 will increase from $2.01 per bi-weekly pay period to $2.10 per bi-weekly pay period.

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.

DB:JJM:kao

06-P-019 W-2 Wage and Tax Statements for Calendar Year 2005 (Supersedes 05-P-018)
DATE: January 4, 2006
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2005
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: director's signature
SUMMARY: Information Pertaining to Employee 2005 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2005 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2005.

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 2005 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 2005 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 2005. 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 2005 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 17, 2006. 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 2005 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 2002 through 2005, 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 (2005, 2004, 2003, or 2002) the reissued W-2 is needed. Duplicate W-2's for 2002 - 2004 are currently available, with duplicate W-2's for 2005 becoming available Monday, January 23, 2006.

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 2005 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 2005 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.

Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, 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 both on-cycle and off-cycle paychecks dated December 30, 2005 are included in the 2005 W-2 amounts.

Attachments: 2005 W-2 Wage and Tax Statement Calculations (.pdf)
     Sample KPAY318.SQR (.pdf)

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06-P-020 2006 W-2 Production Report Schedule (Supersedes 05-P-019)
DATE: January 4, 2006
SUBJECT: 2006 W-2 Production Report Schedule
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: director's signature
SUMMARY: 2006 W-2 Production Report Schedule

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 2006 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 2006 W-2 production reports are scheduled to be generated:

  • Friday, February 10, 2006
  • Friday, March 10, 2006
  • Friday, April 7, 2006
  • Friday, May 5, 2006
  • Friday, June 2, 2006
  • Friday, June 30, 2006
  • Friday, July 28, 2006
  • Friday, August 25, 2006
  • Friday, September 22, 2006
  • Friday, October 20, 2006
  • Friday, November 3, 2006
  • Friday, November 17, 2006
  • Friday, December 1, 2006
  • Wednesday, December 13, 2006
  • Monday, December 18, 2006
  • Tuesday, December 26, 2006
  • Thursday, December 28, 2006 - 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 2006 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.

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06-P-021 Change in Organization Dues Deduction Amounts for AFSCME Council 72 (Supersedes 05-P-027)
DATE: January 4, 2006
SUBJECT: Change in Organization Dues Deduction Amounts for AFSCME Council 72
EFFECTIVE DATE: Payroll Period Beginning January 1, 2006 and Ending January 14, 2006, Paid January 27, 2006
CONTACT: Janice Wolfley (785) 296-3699 Janice Wolfley@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, 1469 and 1715

The organization dues for members of AFSCME Council 72 will change from $13.40 to $13.80 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 1, 2006 and ending January 14, 2006, paid January 27, 2006. The following deduction codes will be updated to reflect the new deduction amounts:
 

<table width="65%" summary="This table shows the organizational dues deduction amounts for the AFSCME locals affiliated with Local 1715 effective with the March 15 paychecks."> Deduction Code Union Dues Deduction ORG270 Local 1270 $13.80 ORG357 Local 1357 $13.80 ORG469 Local 1469 $13.80 ORG715 Local 1715 $13.80

The Division of Accounts and Reports, Payroll Systems Team is responsible for making these changes in the SHARP system. Regent's institutions are responsible for ensuring these changes are reflected in their individual systems effective for paychecks issued on or after January 27, 2006.

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06-P-022 Voluntary Tax Sheltered Annuity Company Changes (Supersedes 97-P-035 & 98-P-029)
DATE: February 16, 2006
SUBJECT: Voluntary Tax Sheltered Annuity Company Changes
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 Abby.Moore@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Voluntary Tax Sheltered Annuity Company Changes

Payroll Services has been notified of a name and address change for Manufacturers Life (VTSA Company #830). Effective immediately, the name is changed to John Hancock Life Insurance Company (USA). STARS Vendor number 222265014-01 has been closed and remittances have been redirected to the new vendor/suffix combination 010233346-00 for John Hancock Life Insurance Company (USA) at the following address:

John Hancock Life Insurance Company (USA)
PO Box 55230
Boston, MA 02205-5230

Payroll Services has also been notified of an address change for John Hancock Funds (VTSA Company #357). The new company address is:

John Hancock Funds
380 Stuart Street
Boston, MA 02116

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

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06-P-023 Change in Organization Dues Deduction for FOP Lodge #37
DATE: April 3, 2006
SUBJECT: Change in Organization Dues Deduction for FOP Lodge #37
EFFECTIVE DATE: Payroll Period Ending April 22, 2006
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Organization Dues Change for ORG037

The organization dues for members of the FOP Lodge #37, ORG037, will be increased from $11.55 to $17.31 per biweekly payroll period. The new rate will become effective with the payroll period beginning April 9, 2006 and ending April 22, 2006, paid May 5, 2006.

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 May 5, 2006.

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06-P-024 Voluntary Tax Sheltered Annuity Company Name Change
DATE: April 3, 2006
SUBJECT: Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 Abby.Moore@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Voluntary Tax Sheltered Annuity Company Changes

Payroll Services has been notified of a name change for AIM Distributors, Inc. (VTSA Company #025). Effective immediately, the name is changed to AIM Investment Services, Inc. The STARS vendor number and address for this VTSA company remain the same.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regent’s institutions are responsible for ensuring these changes are reflected in their individual systems.

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06-P-025 Fiscal Year End Payroll Processing for FY 2006 (Supersedes 05-P-028)
DATE: April 19, 2006
SUBJECT: Fiscal Year End Payroll Processing for FY 2006
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 Joyce.Dickerson@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Summary of Fiscal Year End Payroll Processing

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

Note: Another informational circular regarding the fiscal year 2007 payroll contribution rates will be issued as soon as the information becomes available.

Note: Fiscal year 2006 contains an extra pay period (27 pay periods).

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 17, 2006 will use fiscal year 2006 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 17, 2006 will use fiscal year 2007 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 A off-cycle (processed June 26, paid June 30) for the pay period ending June 17, 2006 will be charged to fiscal year 2006 expenditures. The Run B off-cycle (processed June 28, paid July 3) for the pay period ending June 17, 2006 will be charged to fiscal year 2007 expenditures.

Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run A off-cycle scheduled for June 26, 2006 (paid June 30) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2006 expenditures.

Once the Run A off-cycle for the period ending July 1, 2006 (processed July 10, paid July 14) has been processed, agencies should not request or process paycheck reversals until STARS FY 2006 closing has been successfully completed. STARS is scheduled to resume processing July 21, 2006.

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 26, 2006 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 June 18, 2006 (beginning date of the first on-cycle payroll charged to FY2007). The Budget End Date will be June 17, 2007. Agencies should not enter any rows with an effective date greater than or equal to June 18, 2006 until after the FY2007 insert has been completed. When adding new rows for FY2007, agencies should verify that June 17, 2007 was used as the Budget End Date for FY2007.

GHI Adjustments

As of July 1, 2006, NO payroll processing for GHI adjustments should be made for contract year 2004. 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 2004.

Julian Date Reset

The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2006. 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 A off-cycle for the pay period ending June 17, 2006 (processed June 26, paid June 30) will have 361 as the Julian date in the document number and expenditures will be charged to fiscal year 2006. The Run B off-cycle for the pay period ending June 17, 2006 (processed June 28, paid July 3) will have 363 as the Julian date in the document number and expenditures will be charged to fiscal year 2007. The Run C off-cycle for the pay period ending June 17, 2006 (processed July 3, paid July 6) will have 003 as the Julian date in the document number and expenditures will be charged to fiscal year 2007.

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 2007.

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 'Nontaxable'.

 

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06-P-026 Housing, Food Service and Other Employee Maintenance (Supersedes 05-P-030)
DATE: April 21, 2006
SUBJECT: Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE: July 1, 2006
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: director's signature
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 2007 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)

06-P-027 Addition of Earnings Code 'S14'
DATE: May 23, 2006
SUBJECT: Addition of Earnings Code 'S14'
EFFECTIVE DATE: May 21, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Addition of Earnings Code 'S14'

Senate Bill 480 establishes a new pay differential of $0.30 per hour for building trade classes effective May 21, 2006 to be used with the pay period beginning June 18, 2006 through July 1, paid July 14.

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

Earns Code Description Rate
S14 Pay Diff-Building Trade Class $0.30

The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents' institutions are responsible for implementing the new earnings code in their payroll systems.

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06-P-028 Free Parking for Capitol Complex Flat Surface Lots
DATE: May 25, 2006
SUBJECT: Free Parking for Capitol Complex Flat Surface Lots
EFFECTIVE DATE: June 04, 2006
CONTACT: Joyce Dickerson (785) 296-3979 Joyce.Dickerson@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Free Parking for Capitol Complex Flat Surface Lots

Pursuant to a memorandum from the Division of Facilities Management dated May 18, 2006, parking in the flat surface lots in the Capitol Complex will be free and deductions will no longer be taken for the following lots:

Lot SHARP Deduction Codes Admin Fee Deduction Codes
1 PKT01B, PPKT01, PPKTR1 PKAD01, PKADR1
2 PKT02B, PPKT02, PPKTR2 PKAD01, PKADR1
4 PKT04B, PPKT04 PKAD01, PKADR1
7 PKT07B, PPKT07, PPKTR7 PKAD01, PKADR1
8 PKT0BB, PKTRBB, PPKT0B,
PPKTRB, PPKT11, PKT0DB,
PKTRDB, PPKT0D, PPKTRD
PKAD01, PKADR1, PKAD13,
PKADR2, PKAD08

 

This change is effective for the payroll period beginning June 4, 2006 through June 17, 2006, paid June 30, 2006 because parking is prepaid and the June 30, 2006 paycheck covers parking for the period July 2, 2006 through July 15, 2006. Therefore, employees assigned to the above noted surface lots will no longer have a parking deduction effective with their June 30, 2006 paychecks. No action is required by agencies to implement this change.

The Division of Accounts and Reports, Payroll Systems Team, is responsible for making this change in the SHARP system.

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06-P-029 Parking Fee Increase - Curtis Building Garage - FY2007 (Supersedes 05-P-029 )
DATE: May 31, 2006
SUBJECT: Parking Fee Increase - Curtis Building Garage - FY2007
EFFECTIVE DATE: Payroll Period Beginning June 18, 2006 and Ending July 1, 2006, Paid July 14, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Parking Fee Increase - Curtis Building Garage – FY2007

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 2007. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $22.93 per bi-weekly pay period effective with the payroll period beginning June 18, 2006 and ending July 1, 2006, paid July 14, 2006. The associated administrative fee code PKAD05 increases to $1.75 ($22.93 X .0765).

Employees with the Department of Commerce, the Board of Accountancy, and Board of Regents who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction increased to $11.46. The associated administrative fee code PKAD07 increases to $0.88 ($11.46 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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06-P-030 Deduction Codes for Parking Administrative Fees
DATE: June 7, 2006
SUBJECT: Deduction Codes for Parking Administrative Fees
EFFECTIVE DATE: June 04, 2006
CONTACT: Joyce Dickerson (785) 296-3979 Joyce.Dickerson@da.state.ks.us
APPROVAL: director's signature
SUMMARY: New Deduction Codes for Parking Administrative Fees

Currently State Parking Lots 1 through 8 use the same parking administrative fee deduction codes, PKAD01 (regular) and PKADR1 (reserved). Because the flat surface lots in the Capitol Complex (Lots 1, 2, 4, 7, and 8) will be free effective for the payroll period beginning June 4, 2006 through June 17, 2006, paid June 30, 2006 (see Informational Circular 06-P-028) it is necessary to add two new administrative fee deduction codes for Lots 3, 5, and 6 as follows:
 

Lot SHARP Deduction Codes Admin Fee Deduction Codes
3 PKT03B, PPKT03
PKTR3B, PPKTR3
PKAD03
PKADR3
5 PKT05B, PPKT05
PPKTR5
PKAD03,
PKADR3
6 PKT06B, PPKT06 PKAD03

Employees with active deductions for Lots 3, 5, and 6 will have a deduction end date of June 4, 2006 placed on their maximum effective dated row for deduction codes PKAD01 and PKADR1 in the General Deduction Data. Also for those employees, a new deduction row of PKAD03 or PKADR3 will be added to the General Deduction Data with an effective date of June 4, 2006. This change will be made June 12, 2006 and is effective for the payroll period beginning June 4, 2006 through June 17, 2006, paid June 30, 2006. No action is required by agencies to implement this change.

The Division of Accounts and Reports, Payroll Systems Team, is responsible for making this change in the SHARP system.

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06-P-031 Changes to July 2006 Payroll Processing Schedule (Revises 06-P-007)
DATE: June 16, 2006
SUBJECT: Changes to July 2006 Payroll Processing Schedule
EFFECTIVE DATE: Immediately
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Changes to July 2006 payroll processing schedule due to July 3, 2006 being designated as a state holiday.

As a result of Governor Sebelius declaring Monday, July 3, 2006 as an additional state holiday for 2006, the following changes have been made to the July payroll processing schedule:

Monday, July 3, 2006

The check issue date for the Run ‘B’ off-cycle for the payroll period ending June 17, 2006, run on June 28, 2006 will remain July 3, 2006 since this is not a banking holiday.

Wednesday, July 5, 2006

The Run ‘C’ off-cycle for the payroll period ending June 17, 2006 will be run on Wednesday, July 5, 2006 rather than Monday, July 3, 2006. The check issue date for this off-cycle will be moved from Thursday, July 6, 2006 to Friday, July 7, 2006.

On-cycle paysheets for the payroll period ending July 1, 2006 will be created on Wednesday, July 5, 2006 rather than Monday, July 3, 2006. This delay will continue to allow agencies one working day after the end of the pay period to enter job actions effective for the payroll period ending July 1, 2006 and to have the job changes reflected on the paysheets.

The first preliminary payroll calculation for the payroll period ending July 1, 2006 will be run Wednesday, July 5, 2006. All time and leave information must be entered into SHARP and the timesheet marked ‘OK to Process’ by 6:00 PM on July 5 in order for an employee to be processed in the first preliminary payroll calculation and have a calculated paycheck available for review on Thursday, July 6. Please note that there will only be two preliminary payroll calculations for the payroll period ending July 1, 2006.

Thursday, July 6, 2006

The second preliminary payroll calculation for the payroll period ending July 1, 2006 will be run Thursday, July 6, 2006.

Friday, July 7, 2006

The final payroll calculation and confirm for the payroll period ending July 1, 2006 will be run Friday, July 7, 2006. Regent’s on-cycle files for the payroll period ending July 1, 2006 will continue to be due to the Department of Administration by 6:00 a.m. on Friday, July 7, 2006.

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

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06-P-032 Fiscal Year 2007 Payroll Contribution Rates (Supersedes 05-P-033)
DATE: June 21, 2006
SUBJECT: Fiscal Year 2007 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 18, 2006; Ending July 1, 2006; Paid July 14, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: director's signature
SUMMARY: Fiscal Year 2007-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans

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 2007. The fiscal year 2007 rates will become effective with the on-cycle payroll period beginning June 18, 2006, ending July 1, 2006 and paid July 14, 2006. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2006.

In FY2007, the employer's contribution to KPERS Death and Disability Insurance increases to 1.00% (except for retirement codes J1, J2, J3 which are .4%). Agencies are reminded of the moratoriums for KPERS Death and Disability Insurance contribution that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustments with payroll period end dates that contain an original check date within the moratorium period.

New legislation (House Substitute for SB 270) changed rules about KPERS retirees who work after retirement for the same or a different KPERS employer. More detailed information on these changes can be found in the KPERS DA Memo - April 21, 2006, located at http://www.kpers.org/damemos042106.htm. These changes do not affect KP&F or the Retirement System for Judges. For retirees who begin work for a different KPERS employer, the employer must make contributions based on retiree compensation. This includes all retirees who first begin actively working in KPERS-covered positions on or after July 1, 2006. Employees who meet these criteria should be enrolled in the newly established Benefit Plan 'PR' and Deduction Code 'RETRET'. For fiscal year 2007, employer rates are 5.84% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 9.84%. Retirees enrolled in the 'PR' benefit plan are not subject to KPERS life and disability insurance.

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 made 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 2007.

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Attachments A, B & C (.pdf)

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