Kansas Department of Administration

FY 2007

07-P-001 Change in Organization Dues Deduction Amounts (Supersedes 06-P-001)
DATE: June 27, 2006
SUBJECT: Change in Organization Dues Deduction Amounts
EFFECTIVE DATE: Payroll Period Ending July 15, 2006
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wofley@da.state.ks.us
APPROVAL: Image of approval signature.
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 July 2, 2006 and ending July 15, 2006, paid July 28, 2006 as follows:
 

Deduction Code Hourly Rate of Pay Bi-Weekly Salary Dues Deduction
ORG001 $ 7.35 or Less $ 588.00 or Less $ 8.55
ORG002 $ 7.36 - $ 8.51 $ 588.80 - $ 680.80 $ 9.05
ORG003 $ 8.52 - $ 9.39 $ 681.60 - $ 751.20 $ 9.55
ORG004 $ 9.40 - $ 10.35 $ 752.00 - $ 828.00 $10.05
ORG005 $ 10.36 - $ 11.41 $ 828.80 - $ 912.80 $10.55
ORG006 $ 11.42 or Greater $ 913.60 - or Greater $11.03
ORG888 KU Medical Center - Nurses $11.03
ORG 018 & 019 KU - Graduate Teaching Assistants $ 9.25

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 July 28, 2006.

RLM:JJM:ewb

07-P-002 Addition of New Parking Codes for Curtis Building Garage
DATE: July 5, 2006
SUBJECT: Addition of New Parking Codes for Curtis Building Garage
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: Image of approval signature.
SUMMARY: Addition of New Parking Codes for Curtis Building Garage

Pursuant to an agreement entered into by the Kansas Department of Health and Environment and the Department of Administration for parking in the Curtis Building Garage, parking deduction codes PKT12B and PPKT12 were added to SHARP.  Parking codes PKT12B (after tax) and PPKT12 (pre-tax) will both result in an employee bi-weekly parking deduction of $22.48.  Parking administrative fee deduction code PKAD15 was also added.  Employees enrolled in parking deduction code PPKT12 will also need to be enrolled in this new parking administrative fee code.  Parking code PKAD15 will result in an employer bi-weekly contribution of $1.72.  These parking codes are effective with the pay period beginning June 18, 2006, ending July 1, 2006, and paid July 14, 2006  

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.  

RLM:JJM:kao

07-P-003 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (Supersedes 06-P-003)
DATE: August 18, 2006
SUBJECT: Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30
EFFECTIVE DATE: Payroll Period Ending September 9, 2006
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code ‘ORG030’, will change from $24.55 to $25.15 per biweekly payroll period.  The new rate will become effective with the payroll period beginning August 27, 2006 and ending September 9, 2006, paid September 22, 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 September 22, 2006.

RLM:JJM:ewb

07-P-004 New Community Health Charities Deduction Code
DATE: September 11, 2006
SUBJECT: New Community Health Charities Deduction Code
EFFECTIVE DATE: Payroll Period Ending December 30, 2006
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Addition of Deduction Code for Community Health Charities

The legislature passed, and Governor Sebelius signed, HB2727 authorizing a new payroll deduction for Community Health Charities beginning January 1, 2007.  A new, after-tax, deduction code ‘UTD100’ will be added to the SHARP deduction code table effective with the pay period December 17, 2006 – December 30, 2006 and paid January 12, 2007.

For calendar year 2007, agencies can enter in SHARP a new General Deduction row effective-dated between December 17, 2006 and December 30, 2006 in order for the first deduction for 2007 to be taken on the January 12, 2007 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2007 should be entered.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to establish this deduction code for all employees for whom SHARP calculates pay.  Regents’ institutions are responsible for ensuring that this change is made to their individual payroll systems for all paychecks issued for the pay period ending December 30, 2006 and beyond. The fund/index combination for the new deduction code will be Fund 9094, Index 9715 which is the same fund/index combination used for United Way deductions.  The Division of Accounts and Reports, Reconciliation and Remittance Team will be responsible for the remittance of the deductions for all SHARP and Regent employees to Community Health Charities.

RLM:JJM:ntr 

07-P-005 Addition of Employer Deduction Codes/Funding Changes for Health Savings Account (Revises 06-P-009)
DATE: September 18, 2006
SUBJECT: Addition of Employer Deduction Codes/Funding Changes for Health Savings Account
EFFECTIVE DATE: Pay Period Beginning December 17, 2006; Ending December 30, 2006; Paid January 12, 2007
CONTACT: Nancy Ruoff (785) 296-5369 nancy.ruoff@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Addition of New Employer Payroll Deduction Codes and Funding Changes for the Health Savings Account Program

For Plan Year 2007, the Health Care Commission approved the addition of an employer contribution to the Health Savings Account (HSA) of each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. Employer contributions for the Health Savings Accounts will be remitted to UMB on payday and should be posted to the individual employee accounts on payday.

 The new HSA annual employer contribution amounts for full-time employees are $900 for single coverage and $1350 for dependent coverage. For part-time employees, they are $675 for single coverage and $1012.56 for dependent coverage. 

For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the HSA benefit setup tables in SHARP.  Both GHI and HSA employer contributions will be charged to Object Code 1950.

For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost.  Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from the Kansas Health Policy Authority on a monthly, quarterly, or annual basis.      

To accommodate the new HSA employer contribution, new plan types and deduction codes will be added in SHARP effective for the payroll period beginning December 17 and ending December 30, 2006, paid January 12, 2007.    These new plan types/deduction codes are:

All employees except Regent 9-month:

PLAN
TYPE
DEDUCTION
CODE

DESCRIPTION
SHORT
DESCRIPTION
6Y HSASGL HSA-Single Coverage/High Ded HSA-Single
6Y HSASGX HSA-Single Coverage/Part-time HSA-SglePT
6Z HSADEP HSA-Dependent Coverage/HighDed HSA-Depend
6Z HSADEX HSA-Dependent Cov/Part-time HSA-DepPT

Regent 9-month (16deductions):

PLAN
TYPE
DEDUCTION
CODE

DESCRIPTION
SHORT
DESCRIPTION
6Y HSXSGL Health Sav Acct-Single-FT-16 HSXSGL
6Y HSXSGX Health Sav Acct-Single-PT-16 HSXSGX
6Z HSXDEP Health Sav Acct-Dep-FT-16 HSXDEP
6Z HSXDEX Health Sav Acct-Dep-PT-16 HSXDEX

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

REGENTS PAYROLL SYSTEM PROCESSING CHANGES

The following changes will be made to accommodate the new employer contribution and to make the fund/index processing for the employee deduction consistent with previously established standards. 

The following additions/change to the Fund/Index combination will be completed for the Department of Administration clearing fund for Health Savings Account Deductions:

AGENCY FUND BUDGET UNIT INDEX
173 9051 9075 9764 SHARP EE Index (replacing 9075)
173 9051 9075 9864 SHARP Employer Index (new)

Effective 12/17/06, index code 9764 will replace the previously established index code of 9702 to record the receipt of the employee deductions by the individual Regent’s institutions.  In addition, index code 9664 has been added to the STARS system for each of the Regent’s Payroll Funds (98XX) to record the receipt of the new employer contribution 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 06-P-009 dated October 14, 2005.

The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Health Savings Account employer contribution.  Regent’s institutions are responsible for ensuring that the Health Savings Account employer contribution 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 1, 2006.

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

07-P-006 Parking Fee Increase - KPERS Building Garage (Supersedes 05-P-005)
DATE: September 21, 2006
SUBJECT: Parking Fee Increase - KPERS Building Garage
EFFECTIVE DATE: Payroll Period Beginning September 10, 2006 and Ending September 23, 2006, Paid October 6, 2006
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Parking Fee Increase - KPERS Building Garage

Pursuant to the lease agreement executed by the Kansas Housing Resource Corporation for parking spaces in the KPERS Building Garage, parking fees will increase effective October, 2006.  To facilitate this change, payroll deduction codes APKA12 and PPKA12 will increase to $11.54 per bi-weekly pay period effective with the payroll period beginning September 10, 2006 and ending September 23, 2006, paid October 6, 2006.  The associated administrative fee code PKAD14 increases to $0.88 ($11.54 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.  

RLM:JJM:kao

 

 

07-P-007 Optional Group Life Insurance Rate Changes (Supersedes 04-P-024)
DATE: October 2, 2006
SUBJECT: Optional Group Life Insurance Rate Changes
EFFECTIVE DATE: January 1, 2007
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Optional Group Life Insurance Rate Changes

Please note that effective January 1, 2007 the Optional Group Life Insurance rates are changing as follows:
 

Age at the Beginning
of the Calendar Year
Monthly Premium
per $1,000
Under 25 $0.05
25-29 $0.06
30-34 $0.08
35-39 $0.09
40-44 $0.10
45-49 $0.14
50-54 $0.21
55-59 $0.40
60-64 $0.61
65-69 $1.18
70-74 $1.90
75 and Older $2.06

The Under 30 age range has changed to Under 25 and a new age range of 25-29 has been added. 

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

The new rates are effective with coverage for the month of January 2007.  Therefore, the January 26, 2007 paycheck (paycheck issued for the payroll period ending January 13, 2007) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month’s coverage. 

The Division of Accounts and Reports, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay.  Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to January 1, 2007.

RLM:JJM:ewb

07-P-008 SHaRP Bi-Weekly Payroll Schedule for 2007 (Supersedes 06-P-007)
DATE: October 12, 2006
SUBJECT: SHARP Bi-Weekly Payroll Schedule for 2007
EFFECTIVE DATE: Calendar Year 2007
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2007

Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2007.  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.

IMPORTANT NOTE:  Due to the SHARP v8.9 upgrade scheduled to occur in June 2007, changes to the attached processing schedules may need to occur in order to accommodate the actual conversion to v8.9.  If changes to the schedule are needed, an informational circular will be issued which includes the revised processing dates and a message will be distributed to subscribers of the SHARP listserve announcing the revised dates.

RLM:JJM:kao

Attachment: Bi-Weekly Payroll Schedule for Calendar Year 2007 (pdf)

07-P-009 Change in Social Security Base Rate (Supersedes 06-P-010)
DATE: October 18, 2006
SUBJECT: Change in Social Security Base Rate
EFFECTIVE DATE: January 1, 2007
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Social Security Wage Base Increase to $97,500 effective January 1, 2007

The Social Security wage base for OASDI will be $97,500 for calendar year 2007.  This is a $3,300 increase from the 2006 wage base of $94,200.  The OASDI tax rate remains at 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2007 will be $6,045.   There continues to be no limit on wages subject to the Medicare tax in 2007.  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 $6,045 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.

RLM:JJM:kao

07-P-010 Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2007 (Supersedes 06-P-011)
DATE: October 24, 2006
SUBJECT: Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2007
EFFECTIVE DATE: January 1, 2007
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
Sunni Zentner (785) 296-7058 sunni.zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: 2007 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, 2007 as follows:

457(b) Deferred Compensation:

The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases from the lesser of $15,000 or 100% of includible compensation  (2006 calendar year limit) to the lesser of $15,500 or 100% of includible compensation (2007 calendar year limit).

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases from $30,000 (2006 calendar year limit) to $31,000 (2007 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 2007, unchanged from 2006) to a total of $20,500. 

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

403(b) Tax Sheltered Annuities (TSA):

The limit on annual contributions to a TSA for 2007 is the lesser of $45,000 or 100% of compensation.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $220,000 (for 2006) to $225,000 (for 2007).  The $225,000 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 $22,500 ($225,000 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 $31,500 ($225,000 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 $325,000 (for 2006) to $335,000 (for 2007).  However, participants should note their maximum annual compensation limit will be $321,428.57, since the $321,428.57 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $45,000, which is the limit on annual contributions. 

The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $15,000 (for 2006) to $15,500 (for 2007).  The age 50 or older catch-up provision is unchanged from 2006, remaining at $5,000 for 2007.  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 ($15,500 for 2007) 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.     

RLM:JJM:kao

07-P-011 Key Payroll Processing Dates in November 2006 (Supersedes 06-P-012)
DATE: October 31, 2006
SUBJECT: Key Payroll Processing Dates in November 2006
EFFECTIVE DATE: November 2006
CONTACT: Joyce Dickerson (785) 296-3979 Joyce.Dickerson@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Payroll processing schedule changes due to the November 2006 holidays.

Friday, November 10, 2006 (Veterans' Day), Thursday, November 23, 2006 and Friday, November 24, 2006 (Thanksgiving Holiday) are designated holidays for state service in 2006. 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 3, 2006

Payday for the payroll period ending October 21, 2006.

Time and leave interface agencies must have time and leave files for the period ending November 4, 2006 submitted to the Department of Administration for processing by 5:00 PM on November 3, 2006 (these files would normally be due Monday, November 6, 2006).

Regents’ Run C off-cycle payroll files for the period ending October 21, 2006 must be received by the Department of Administration by 5:00 PM on November 3, 2006.

Monday, November 6, 2006

Paysheets for the on-cycle payroll for the period ending November 4, 2006 will be created on Monday, November 6, 2006.  All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 6, 2006 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 4, 2006 will also occur November 6, 2006; 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 21, 2006 will be processed November 6, 2006.  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 9, 2006.

Tuesday, November 7, 2006

The second on-cycle preliminary pay calculation for the period ending November 4, 2006 will occur November 7, 2006.

Wednesday, November 8, 2006

The third on-cycle preliminary pay calculation for the period ending November 4, 2006 will occur November 8, 2006.

Thursday, November 9, 2006

Regents’ on-cycle payroll files for the period ending November 4, 2006 are due to the Department of Administration by 6:00 AM on November 9, 2006.

Final pay confirmation for the on-cycle payroll for the period ending November 4, 2006 will occur November 9, 2006.  All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 9, 2006 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 9, 2006 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 4, 2006 must be received by the Department of Administration by 5:00 PM on November 9, 2006.

Friday, November 10, 2006
(Veterans' Day Holiday)

Monday, November 13, 2006

The Run A off-cycle for the period ending November 4, 2006 will be processed November 13, 2006.  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 17, 2006.

Tuesday, November 14, 2006

Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 4, 2006 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 4, 2006 must be received by the Department of Administration by 5:00 PM on November 14, 2006 in order to be processed on Wednesday, November 15, 2006.

Wednesday, November 15, 2006

The Run B off-cycle for the period ending November 4, 2006 will be processed November 15, 2006.  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 20, 2006.

Friday, November 17, 2006

Payday for the payroll period ending November 4, 2006.

Time and leave interface agencies must have time and leave files for the period ending November 18, 2006 submitted to the Department of Administration for processing by 5:00 PM on November 17, 2006 (these files would normally be due Monday, November 20, 2006).

Regents’ Run C off-cycle payroll files for the period ending November 4, 2006 must be received by the Department of Administration by 5:00 PM on November 17, 2006.

Monday, November 20, 2006

Paysheets for the on-cycle payroll for the period ending November 18, 2006 will be created on Monday, November 20, 2006.  All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 20, 2006 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 18, 2006 will also occur November 20, 2006; 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 18, 2006.

The Run C off-cycle for the period ending November 4, 2006 will be processed November 20, 2006.  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 27, 2006.

Tuesday, November 21, 2006

The second on-cycle preliminary pay calculation for the period ending November 18, 2006 will occur November 21, 2006.

Wednesday, November 22, 2006

Final pay confirmation for the on-cycle payroll for the period ending November 18, 2006 will occur November 22, 2006 (Final pay confirmation would normally occur Friday, November 24, 2006).  All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 22, 2006 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 22, 2006 in order to be reflected in the final paycheck created for the employee.

Regents’ on-cycle payroll files for the period ending November 18, 2006 are due to the Department of Administration by 6:00 AM on November 22, 2006.

Regents’ Run A off-cycle payroll files for the period ending November 18, 2006 must be received by the Department of Administration by 5:00 PM on November 22, 2006.

Attached is a calendar for the month of November 2006, 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.

RLM:JJM:kao

Attachment: November 2006 Payroll Calendar

07-P-012 Employee Taxability of State-Owned or Leased Vehicles (Supersedes 06-P-014)
DATE: November 2, 2006
SUBJECT: Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE: January 1, 2007
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY:

IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2007

The Internal Revenue Service (IRS) has increased the standard mileage rate from 44.5 cents to 48.5 cents beginning January 1, 2007 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 increase in prices for vehicles and fuel experienced during the last twelve months.  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 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 2007 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. 

RLM:JJM:kao

07-P-013 Updated Index Codes for Agency and DOA Clearing Funds (Revises 07-P-005)
DATE: November 14, 2006
SUBJECT: Updated Index Codes for Agency and DOA Clearing Funds
EFFECTIVE DATE: Pay Period Beginning December 17, 2006; Ending December 30, 2006; Paid January 12, 2007
CONTACT: Nancy Ruoff (785) 296-5369 nancy.ruoff@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Updated Index Codes for Agency and DOA Clearing Funds

The Index Codes for Agency and DOA Clearing Funds spreadsheet issued with Informational Circular 07-P-005 dated September 18, 2006 inadvertently excluded index 9844 for the Wellness Fee.  Attached is an updated copy of the “Index Codes for Agency and DOA Clearing Funds” effective with the pay period beginning December 17, 2006.  This document has been updated for the changes noted above and replaces the document issued with Informational Circular 07-P-005 dated September 18, 2006.

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

07-P-014 December 2006 Payroll Processing (Supersedes 06-P-013)
DATE: November 15, 2006
SUBJECT: December 2006 Payroll Processing
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 Joyce.Dickerson@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: December 2006 Payroll Processing

As 2006 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2006 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2006 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2007 balances; a corrected W-2 (Form W-2C) for 2006 will not be issued for the employee involved.

FINAL 2006 PAYCHECK

The final on-cycle paychecks for calendar year 2006 will be issued December 29, 2006.  Paychecks will be mailed on December 28, 2006.  The final off-cycle paychecks for calendar year 2006 will also be issued on December 29, 2006 (generated from the off-cycle processed on December 26, 2006).

PAYCHECK REVERSALS

Any 2006 paychecks that are undeliverable should be reversed as soon as possible.  SHARP agencies have until 6:00 p.m. on December 26, 2006 to enter paycheck reversals.  Any reversals entered after the 6:00 p.m. deadline on December 26, 2006 will update calendar year 2007 balances and will not be reflected in the employee’s 2006 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 26, 2006 to enter paycheck adjustment requests for any 2006 paychecks.  Adjustments processed in the December 26, 2006 off-cycle payroll will be reflected on the employee’s 2006 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 2006 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 15, 2006.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2006 for inclusion in the December 26, 2006 off-cycle.  However, if a large volume of DA-180 forms is received on the December 15, 2006 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2006 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 26, 2006 which are adjusting paychecks issued prior to January 1, 2007 will not result in a W-2C; the adjustment will update the employee’s 2007 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 26, 2006 will update the employee’s 2007 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 16, 2006, paid December 29, 2006 are due to the Department of Administration by 6:00 a.m. on December 21, 2006.

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2006 Paycheck Reversals

Regent Institutions must submit all transmittals for 2006 paycheck reversals by 5:00 p.m. on Friday, December 22, 2006 in order to update the employee’s 2006 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 2007 payroll balances regardless of the paycheck issue date of the paycheck being reversed.  Reversals for paychecks issued prior to January 1, 2007 submitted after 5:00 pm on December 22, 2006 should default the pay adjust check date to January 1, 2007.  

2006 Adjustments and Supplementals

In order to update employee balances for 2006, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 22, 2006.  The Run A off-cycle for the pay period ending December 16, 2006 generated on the night of Tuesday, December 26, 2006 will have a check issue date of December 29, 2006; all activity for this off-cycle will be reflected in the employees’ 2006 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 2006 date.

2007 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2007, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 22, 2006, will be considered to be 2007 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2007 business, the employee’s 2007 balances will be updated.  These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2007 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2007, agencies should default the pay adjust check date to January 1, 2007). 

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2007, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2007 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 2007 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 22, 2006 deadline for the December 26, 2006 Run A’s off-cycle payroll will not be processed until the January 22, 2007 off-cycle payroll.  Since the files will be held, please do not begin submitting those files for processing until the week of January16, 2007.  The deadline for submitting payroll interface files for the January 22, 2007 off-cycle is 5:00 p.m. on Friday, January 19, 2007.

GENERAL REMINDERS

United Way

The deduction END date on the general deduction panel for 2006 United Way contributions should be dated between December 17, 2006 and December 30, 2006 in order for the last 2006 deduction to be taken on the paycheck issued December 29, 2006.  Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly.  For calendar year 2007, agencies can enter a new row effective-dated between December 17, 2006 and December 30, 2006 in order for the first deduction for United Way or Community Health Charities for 2007 to be taken on the January 12, 2007 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2007 should be entered.  Please note that the code UTD100 for the Community Health Charities cannot be entered until December 17, 2006 or after.  All other United Way codes can be entered earlier.

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, 2006 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 2007 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 15, 2006 to allow adequate time for processing. 

Agency personnel have until 6:00 p.m. on December 20, 2006 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 2007. 

The KPAY320 will be processed the evening of December 20, 2006.  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, 2007 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2007 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 2007 pay date.  

For any 2007 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 20, 2006 and January 1, 2007, agency personnel will need to enter the data with a January 2, 2007 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2007 for any electronic W-4s received in this time period. The 2007 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, 2006 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 2007.  The new tax data row will be dated January 1, 2007.  Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2007 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 2007 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 26, 2006.  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 22, 2006, and prior to December 26, 2006, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2006 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 2006 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 16, 2006 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 26, 2006 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 26, 2006 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 22, 2006.  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 27, 2006 and January 5, 2007.  W-2 forms will be mailed on or before January 31, 2007.  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 2006 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. 07-P-008, dated October 12, 2006.  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.

RLM:JJM:kao

Attachment: December 2006 Payroll Calendar

07-P-015 2007 Percentage Method Tables for Federal Tax Withholding (Supersedes 06-P-017)
DATE: December 6, 2006
SUBJECT: 2007 Percentage Method Tables for Federal Tax Withholding
EFFECTIVE DATE: January 1, 2007
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2007

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2007.  The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2007.  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 $3,400 for 2007.

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, 2006 to all SHARP employees who were exempt from federal withholding in 2006.  The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2007.  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 placed in the Agency Payroll Workflow Administrator’s work list. 

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2007 W-4s.  As of this date, the IRS has not issued the 2007 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://da.ks.gov/SHARP/infolist.htm.  Employees should submit their new W-4s by December 15, 2006 to allow adequate time for processing.  Agency personnel have until 6:00 p.m. on December 20, 2006 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 2007. 

The KPAY320 will process during the batch cycle generated on the evening of December 20, 2006.  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, 2007 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’.  (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 2006 in which the ‘New W-5 Received’ radio button is not checked.  The update will insert a January 1, 2007 effective dated row with an EIC Status of ‘Not Applicable’.)  

For any Forms W-4s for 2007 (or Forms W-5s for 2007 for employees claiming the advance EIC) received between December 21, 2006 and January 1, 2007, agency personnel will need to enter the data with a January 2, 2007 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 5, 2007 in order to be reflected in the on-cycle paycheck dated January 12, 2007.  Agency Workflow Administrators will also need to change the effective date to January 2, 2007 for any electronic FormsW-4s for 2007 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 2006 must file a new 8233 form for calendar year 2007 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 20, 2006 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 2007.  The new tax data row will be dated January 1, 2007.  Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2007 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 20, 2006. The report will be available in the agency directory on the MVS on Thursday, December 21.  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. 

RLM:JJM:kao

Attachment:  Tables for Percentage Method of Withholding (PDF)

07-P-016 New Advance Earned Income Credit Tables for 2007 (Supersedes 06-P-016)
DATE: December 6, 2006
SUBJECT: New Advance Earned Income Credit Tables for 2007
EFFECTIVE DATE: January 1, 2007
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2007

The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2007.  The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2007.  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 2007 Form W-5 – Earned Income Credit Advance Payment Certificate.  The 2007 form can be obtained on the IRS website at http://www.irs.gov/pub/irs-pdf/fw5.pdf.  The 2006 Form W-5 expires on December 31, 2006.  The 2007 Form W-5 must be filed with the employer before advance 2007 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 2007 earned and adjusted gross income will each be less than $33,241.00 for single employees or $35,241.00 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 to foreign earned income).  Finally, a nonresident alien may not claim the advance EIC for 2007 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2007.

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, 2006 to all SHARP employees receiving advance EIC payments in 2006.  The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2007.  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 20, 2006 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2007.  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 20, 2006.  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, 2007 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 2006, if a new W-4 has not been received.  The update will place a January 1, 2007 effective-dated row in the employee’s tax record with a marital status of ‘single’ and zero exemptions.)

For any Forms W-5 for 2007 (or Forms W-4 for 2007 for employees claiming exemption from withholding) received between December 21, 2006 and January 1, 2007, agency personnel will need to enter the data with a January 2, 2007 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 5, 2007 in order to be reflected in the on-cycle paycheck dated January 12, 2007.  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 20, 2006.  The report will be available in the agency directory on the MVS on Thursday, December 21.

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.

RLM:JJM:kao

Attachment:  Advance Earned Income Credit Formulas

07-P-017 Inactivation of Organization Dues Deductions for Kansas Chapter of International Association of Workforce Professionals (IAWP) (Supersedes 03-P-038)
DATE: December 8, 2006
SUBJECT: Inactivation of Organization Dues Deductions for Kansas Chapter of International Association of Workforce Professionals (IAWP)
EFFECTIVE DATE: Payroll Period Ending December 30, 2006
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Closing for ORG980

Please be advised that the Kansas chapter of International Association of Workforce Professionals (IAWP) is closing effective January 1, 2007.  Payroll deductions for this organization (ORG980) should be discontinued effective with the payroll period beginning December 17, 2006 and ending December 30, 2006, paid January 12, 2007.   The paychecks issued December 29, 2006 are the last paychecks for which deductions will be made for deduction code ‘ORG980’.   Agencies should enter a new-effective dated row of December 17, 2006 on the general deduction page for deduction code ‘ORG980’ which reflects a deduction end date of December 17, 2006 for all employees in their agency who have active enrollments with this organizational dues company.

Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 12, 2007.

RLM:JJM:ewb

07-P-018 Increase in Parking Fees for City of Topeka Parking Garages (Supersedes 06-P-018)
DATE: December 28, 2006
SUBJECT: Increase in Parking Fees for City of Topeka Parking Garages
EFFECTIVE DATE: Payroll Period Beginning December 17, 2006 and Ending December 30, 2006, Paid January 12, 2007
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Increase in Parking Fees for City of Topeka Parking Garages

Effective January 1, 2007, 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 $59.50 a month to $61.50 a month.  Employees who park in non-reserved spaces will see their parking deduction increase starting with the payroll period beginning December 17, 2006 and ending December 30, 2006, paid January 12, 2007.

Due to the increase, the parking deduction codes for APKA02 and PPKA02 (used by the Department on Aging at 512 Jackson) are increasing from $15.92 per bi-weekly pay period to $16.85 per bi-weekly pay period.  The related parking administrative fee code, PKAD04, will also increase from $1.22 per bi-weekly pay period to $1.29 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 $27.46 per bi-weekly pay period to $28.38 per bi-weekly pay period.  Parking administrative fee code PKAD11 will increase from $2.10 per bi-weekly pay period to $2.17 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.

RLM:JJM:kao

07-P-019 W-2 Wage and Tax Statements for Calendar Year 2006 (Supersedes 06-P-019)
DATE: January 4, 2007
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2006
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.ks.gov
Debbie Esquibel (785) 368-6313 Debbie.Esquibel@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Information Pertaining to Employee 2006 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2006 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 29, 2006.

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 2006 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 2006 W-2's.

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

The standard W-2 will be used again for 2006.  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 2006 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2007.  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 2006 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 2006, 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 (2006, 2005, 2004, 2003, or 2002) the reissued W-2 is needed.  Duplicate W-2’s for 2002 - 2005 are currently available, and duplicate W-2’s for 2006 will be available Monday, January 22, 2007.

The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2s 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 2006 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 2006 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.ks.gov.

Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms.  The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form.  In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions.  The report is available through SHARP using the path: Home / 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 29, 2006 are included in the 2006 W-2 amounts.

Attachments: 2006 W-2 Wage and Tax Statement Calculations (.pdf)
     Sample KPAY318.SQR (.pdf)

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07-P-020 2007 W-2 Production Report Schedule (Supersedes 06-P-020)
DATE: January 4, 2007
SUBJECT: 2007 W-2 Production Report Schedule
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: 2007 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 2007 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 2007 W-2 production reports are scheduled to be generated:

  • Friday, February 9, 2007
  • Friday, March 9, 2007
  • Friday, April 6, 2007
  • Friday, May 4, 2007
  • Friday, June 1, 2007
  • Friday, June 29, 2007
  • Friday, July 27, 2007
  • Friday, August 24, 2007
  • Friday, September 21, 2007
  • Friday, October 19, 2007
  • Friday, November 2, 2007
  • Friday, November 16, 2007
  • Friday, November 30, 2007
  • Wednesday, December 12, 2007
  • Monday, December 17, 2007
  • Monday, December 24, 2007
  • Wednesday, December 26, 2007
  • Friday, December 28, 2007 - 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 2007 are complete, a final KTXPR55 report will be generated for each agency’s information and review.

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

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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07-P-021 Organization Dues Change for ORG133 (Supersedes 06-P-004)
DATE: January 9, 2007
SUBJECT: Organization Dues Change for ORG133
EFFECTIVE DATE: Payroll Period Ending January 27, 2007
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.ks.gov
APPROVAL: Image of approval signature.
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 $12.50 to $14.00 per biweekly payroll period.  The new rate will become effective with the payroll period beginning January 14, 2007 and ending January 27, 2007, paid February 9, 2007.

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 February 9, 2007.

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07-P-022 Organization Dues Change for ORG048 (Supersedes 03-P-017)
DATE: January 9, 2007
SUBJECT: Organization Dues Change for ORG048
EFFECTIVE DATE: Payroll Period Ending January 13, 2007
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Change in Organization Dues Deduction for Fort Hays State University-FOP #48

The organization dues for members of the Fort Hays State University FOP, ORG048, will be increased from $15.00 to $17.50 per biweekly payroll period.  The new rate will become effective with the payroll period beginning December 31, 2006 and ending January 13, 2007, paid January 26, 2007.

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 January 26, 2007

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07-P-023 Recordkeeping Requirement for Charitable Contributions Made by Payroll Deduction
DATE: January 24, 2007
SUBJECT: Recordkeeping Requirement for Charitable Contributions Made by Payroll Deduction
EFFECTIVE DATE: Taxable years beginning after August 17, 2006
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Recordkeeping Requirement for Charitable Contributions Made by Payroll Deduction

Taxpayers claiming charitable contributions for cash, check, or other monetary gifts made in taxable years beginning after August 17, 2006, are subject to the recordkeeping requirements of Sec. 170(f)(17), as added by section 1217 of the Pension Protection Act of 2006, Public Law 109-280, 120 Stat. 780(2006)(PPA).  IRS Notice 2006-110 provides guidance on how charitable contributions made by payroll deduction may meet the requirements of Sec. 170(f)(17) of the Internal Revenue Code.

Sec. 170(f)(17) of the Internal Revenue Code indicates that charitable contribution deductions of $250 or more withheld from each payment of wages must be substantiated in order to be a valid tax deduction effective for calendar year 2007.  Substantiation requirements include a pay stub furnished by the employer that sets forth the amount withheld and a pledge card or other document prepared by the donee organization that includes a statement that the organization does not provide goods or services in whole or partial consideration for any contribution made to the organization by payroll deduction.  Currently, any payroll deductions withheld by the State of Kansas for United Way or Community Health Charities (CHC) are printed on the paycheck stubs and included on the paycheck view in self service.  United Way and CHC are responsible for the pledge cards or other documents with the proper information included.  Employees with a payroll deduction of $250 or more per pay period should keep their pay stub or print their self service paycheck with the deduction amount, and retain a copy of the pledge card or other document provided by United Way or CHC to fulfill these requirements.

There are currently no United Way or CHC deductions in SHARP which are equal to or greater than $250 per period.  However, agencies should advise employees of the record keeping requirements for charitable contributions in the event an employee’s deduction meets or exceeds $250 per period.

Regent’s institutions are responsible for ensuring that the requirements are met within their individuals systems.

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07-P-024 Addition of New Parking Codes for 10th & Quincy Lot - KSDE
DATE: February 2, 2007
SUBJECT: Addition of New Parking Codes for 10th & Quincy Lot - KSDE
EFFECTIVE DATE:

Payroll Period Beginning February 11, 2007 and Ending February 24, 2007, Paid March 9, 2007

CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Addition of New Parking Codes for 10th & Quincy Lot - KSDE

Pursuant to an agreement entered into by the Kansas State Department of Education and the Department of Administration for parking in the lot at 10th and Quincy, parking deduction codes APKA14 and PPKA14 will be added to SHARP.  Parking codes APKA14 (after-tax) and PPKA14 (pre-tax) will both result in an employee bi-weekly parking deduction of $4.62.  Employees enrolled in parking deduction code PPKA14 will also need to be enrolled in parking administrative fee code PKAD10.  Parking code PKAD10 will result in an employer bi-weekly contribution of $0.35.  The new parking codes are effective with the pay period beginning February 11, 2007, ending February 24, 2007, and paid March 9, 2007.

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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07-P-025 Employee Taxability of State-Owned or Leased Vehicles (Supersedes 06-P-015)
DATE: February 6, 2007
SUBJECT: Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE: January 1, 2007
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: IRS Changes Luxury Vehicle Fair Market Value for Calendar Year 2007

The Internal Revenue Service (IRS) has changed the definition of a “luxury vehicle” beginning January 1, 2007.  A “luxury vehicle” will be defined as one with a fair market value in excess of $15,100, increased from $15,000, for a passenger vehicle first made available for an employee’s personal use in 2007.  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 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 2007 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,100.  Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.

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

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

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07-P-026 Addition of Earnings Code 'INC' for Incentive Pay
DATE: April 2, 2007
SUBJECT: Addition of Earnings Code ‘INC’ for Incentive Pay
EFFECTIVE DATE: March 25, 2007
CONTACT: Earl Brynds (785) 296-5376 Earl.Brynds@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Addition of Earnings Code ‘INC’

The Governor’s Office has approved Hazmat Technician Incentive pay for those employees within the 190th Fire Department in the Kansas Adjutant General’s Department who obtain and maintain a Hazmat Technician certification.  To administer the Hazmat Technician Incentive pay and all other applicable future statewide incentive pay scenarios, a new earnings code is established in the SHARP system effective March 25, 2007.  The following new earnings code is set up to be used starting with the pay period beginning March 25, 2007 through April 7, 2007 paid April 20, 2007.                                                

Earnings Code Description Short Description Effective Date
INC Incentive Earnings Incntv Ern 3/25/2007

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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07-P-027 Fiscal Year End Payroll Processing for FY 2007 (Supersedes 06-P-025)
DATE: April 10, 2007
SUBJECT: Fiscal Year End Payroll Processing for FY 2007
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 joyce.dickerson@da.ks.gov
APPROVAL: Image of approval 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 2008 payroll contribution rates will be issued as soon as the information becomes available.

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted.  Supplementals and adjustments that are processed for pay periods ending on or before June 16, 2007 will use fiscal year 2007 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 16, 2007 will use fiscal year 2008 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 25, paid June 29) for the pay period ending June 16, 2007 will be charged to fiscal year 2007 expenditures.  The Run B off-cycle (processed June 27, paid July 2) for the pay period ending June 16, 2007 will be charged to fiscal year 2008 expenditures.

Reversals will always reverse expenditures in the fiscal year originally charged.  Please note that the Run A off-cycle scheduled for June 25, 2007 (paid June 29) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2007 expenditures. 

Once the Run A off-cycle for the period ending June 30, 2007 (processed July 9, paid July 13) has been processed, agencies should not request or process paycheck reversals until STARS FY 2007 closing has been successfully completed.  STARS is scheduled to resume processing July 23, 2007.

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

Budget End Date and Fiscal Year Changes

The Budget End Date and Fiscal Year on the Department Budget tables will be updated centrally at the beginning of the fiscal year.  This process is scheduled to run during the batch cycle the night of June 24, 2007 and should be completed by Monday morning, June 25.  In that process, a new row will be added to the Department Budget tables with an effective date of June 17, 2007 (beginning date of the first on-cycle payroll charged to FY2008).  The Budget End Date will be June 16, 2008.  Agencies should not enter any rows with an effective date greater than or equal to June 17, 2007 until after the FY2008 insert has been completed.  When adding new rows for FY2008, agencies should verify that June 16, 2008 was used as the Budget End Date for FY2008.

GHI Adjustments

As of July 1, 2007, NO payroll processing for GHI adjustments should be made for contract year 2005.  Contact Judy Allman, Kansas Health Policy Authority, at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 2005.

Julian Date Reset

The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2007.  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 16, 2007 (processed June 25, paid June 29) will have 360 as the Julian date in the document number and expenditures will be charged to fiscal year 2007.  The Run B off-cycle for the pay period ending June 16, 2007 (processed June 27, paid July 2) will have 362 as the Julian date in the document number and expenditures will be charged to fiscal year 2008.  The Run C off-cycle for the pay period ending June 16, 2007 (processed July 2, paid July 5) will have 002 as the Julian date in the document number and expenditures will be charged to fiscal year 2008.

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 2008.

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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07-P-028 Organization Dues Change for ORG059 (Supersedes 05-P-021)
DATE: April 10 , 2007
SUBJECT: Organization Dues Change for ORG059
EFFECTIVE DATE: Payroll Period Ending April 21, 2007
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.ks.gov
APPROVAL:  styled striped
SUMMARY: Change in Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59

The organization dues for members of the Kansas Game Wardens Fraternal Order of Police Lodge #59, ORG059, will be increased from $10.00 to $12.00 per biweekly payroll period.

The new rate will become effective with the payroll period beginning April 8, 2007 and ending April 21, 2007, paid May 4, 2007.

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 4, 2007.

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07-P-029 Housing, Food Service and Other Employee Maintenance (Supersedes 06-P-026)
DATE: May 1, 2007
SUBJECT: Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE: July 1, 2007
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.ks.gov
APPROVAL: Image of approval 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 2008 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.  FY2008 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, July 2, 2007 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 30, 2007 (paychecks dated July 13, 2007).   

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

Attachment

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Attachment:  DA-171 (.pdf)

07-P-030 Parking Fee Increase - Curtis Building Garage - FY2008 (Supersedes 06-P-029)
DATE: May 16, 2007
SUBJECT: Parking Fee Increase - Curtis Building Garage – FY2008
EFFECTIVE DATE: Payroll Period Beginning June 17, 2007 and Ending June 30, 2007, Paid July 13, 2007
CONTACT: Kathy Ogle (785) 296-2290 kathy.ogle@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Parking Fee Increase - Curtis Building Garage – FY2008

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 2008.  To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $23.39 per bi-weekly pay period effective with the payroll period beginning June 17, 2007 and ending June 30, 2007, paid July 13, 2007.  The associated administrative fee code PKAD05 increases to $1.79 ($23.39 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 $11.69.  The associated administrative fee code PKAD07 increases to $0.89 ($11.69 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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07-P-031 Establish Organization Dues Deduction for Kansas Organization of State Employees (KOSE)
DATE: June 5, 2007
SUBJECT: Establish Organization Dues Deduction for Kansas Organization of State Employes (KOSE)
EFFECTIVE DATE: Payroll Period Ending June 16, 2007
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Establish Organization Dues for ORG500

The Kansas Organization of State Employees (KOSE) has met the requirements of K.S.A. 75-5501(3) (b) for employee membership dues deductions.  Therefore, a new deduction code, ORG500, is being added in SHARP effective June 3, 2007 to accommodate payroll deduction of membership dues to this organization.  The deduction for member dues will be $13.61 per biweekly payroll period effective with the payroll period beginning June 3, 2007 and ending June 16, 2007, paid June 29, 2007.

As a reminder, new KOSE members may need to drop/terminate any organization dues deductions currently set up with the Kansas Association of Public Employees (KAPE) and/or AFSCME.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this update in the SHARP system.  Regent’s institutions are responsible for ensuring this update is reflected in their individual systems and is effective for paychecks issued on or after June 29, 2007.

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07-P-032 Fiscal Year 2008 Payroll Contribution Rates (Supersedes 06-P-032)
DATE: June 18, 2007
SUBJECT: Fiscal Year 2008 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 17, 2007; Ending June 30, 2007; Paid July 13, 2007
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.ks.gov
APPROVAL: Image of approval signature.
SUMMARY: Fiscal Year 2008-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 2008.  The fiscal year 2008 rates will become effective with the on-cycle payroll period beginning June 17, 2007, ending June 30, 2007 and paid July 13, 2007.  The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2007.

In FY2008, the employer’s contribution to KPERS Death and Disability Insurance remains at 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.

Legislation passed in 2006 changed rules about KPERS retirees who work after retirement for the same or a different KPERS employer.  More detailed information on these changes can be found in the KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm.  These changes do not affect KP&F or the Retirement System for Judges.  For retirees who begin work for a different KPERS employer, the employer must make contributions based on retiree compensation.  This includes all retirees who first begin actively working in KPERS-covered positions on or after July 1, 2006.  Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’.  For fiscal year 2008, employer rates are 6.99% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 10.99%.  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 2008.

RLM:JJM: kao

Attachments A, B & C (.pdf)

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