Kansas Department of Administration

06-P-025 Fiscal Year End Payroll Processing for FY 2006 (Supersedes 05-P-028)

Posted on 10/21/2021 at 12:50 PM by Kansas Department of Administration

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

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

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

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

Benefits Contribution Rates
Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments that are processed for pay periods ending on or before June 17, 2006 will use fiscal year 2006 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 17, 2006 will use fiscal year 2007 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.

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

Fiscal Year Expenditure Impact
Supplementals and adjustments (with the exception of reversals) will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. For example, the Run A off-cycle (processed June 26, paid June 30) for the pay period ending June 17, 2006 will be charged to fiscal year 2006 expenditures. The Run B off-cycle (processed June 28, paid July 3) for the pay period ending June 17, 2006 will be charged to fiscal year 2007 expenditures.

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

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

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

Budget End Date and Fiscal Year Changes
The Budget End Date and Fiscal Year on the Department Budget tables will be updated centrally at the beginning of the fiscal year. This process is scheduled to run the morning of June 26, 2006 and should be completed by 8:30 a.m. In that process, a new row will be added to the Department Budget tables with an effective date of June 18, 2006 (beginning date of the first on-cycle payroll charged to FY2007). The Budget End Date will be June 17, 2007. Agencies should not enter any rows with an effective date greater than or equal to June 18, 2006 until after the FY2007 insert has been completed. When adding new rows for FY2007, agencies should verify that June 17, 2007 was used as the Budget End Date for FY2007.

GHI Adjustments
As of July 1, 2006, NO payroll processing for GHI adjustments should be made for contract year 2004. Contact Judy Allman in the Division of Personnel Services at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 2004.

Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2006. The Julian date used for the off-cycle's document number is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's check issue date. For example (assuming processing occurs before midnight), the Run A off-cycle for the pay period ending June 17, 2006 (processed June 26, paid June 30) will have 361 as the Julian date in the document number and expenditures will be charged to fiscal year 2006. The Run B off-cycle for the pay period ending June 17, 2006 (processed June 28, paid July 3) will have 363 as the Julian date in the document number and expenditures will be charged to fiscal year 2007. The Run C off-cycle for the pay period ending June 17, 2006 (processed July 3, paid July 6) will have 003 as the Julian date in the document number and expenditures will be charged to fiscal year 2007.

Regents' Institutions Responsibilities
Regents' institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2007.

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

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

 

RM:JJM:kao

 

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