Kansas Department of Administration

10-P-024 Fiscal Year End Payroll Processing for FY 2010 and Transition to SMART for FY2011 (Supersedes 09-P-031)

Posted on October 21, 2021 at 12:50 PM by Kansas Department of Administration

DATE:May 5 , 2010
SUBJECT:

Fiscal Year End Payroll Processing for FY 2010 and Transition to SMART for FY2011

EFFECTIVE DATE: Immediately
CONTACTS:

Joyce Dickerson

Earl Brynds

(785) 296-3979

(785) 296-5376

Joyce.Dickerson@da.ks.gov

Earl.Brynds@da.ks.gov

APPROVAL:
SUMMARY:

Summary of Fiscal Year End Payroll Processing and SHARP Impacts for SMART Transition

 

This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing as well as discuss key dates and payroll changes in SHARP as a result of the transition to the Statewide Management, Accounting and Reporting Tool (SMART) for Fiscal Year 2011. On-cycle and off-cycle dates have been changed in June in order to accommodate the transition to SMART. Please review carefully the information contained in this circular and in the calendars attached.

Note: Another informational circular regarding the fiscal year 2011 payroll contribution rates will be issued as soon as the information becomes available.

Prior Period Paycheck Reversals/Adjustments/Supplementals
Beginning with the implementation to SMART, the custom general ledger process currently used in SHARP is being replaced with the delivered PeopleSoft general ledger process. As a result, the Run A off-cycle processed in SHARP on Friday, June 18, 2010 will be the Final Payroll run for Fiscal Year 2010 and the last opportunity for agencies to enter any prior period adjustments on-line for pay periods prior to June 12, 2010. Please note that the previously scheduled Run B off-cycle for June 23, 2010 is cancelled due to conversion processes for SMART.

Starting with the first payroll run for Fiscal Year 2011 on June 28, 2010, all paycheck reversals/adjustments/supplementals for pay periods on or before June 12, 2010 must be submitted by completing form DA-180, Paycheck Reversal/Adjustment/Supplemental, for central processing by the Division of Accounts and Reports Payroll Services Team. Instructions for requesting a centrally entered adjustment can be found at http://www.da.ks.gov/ar/payroll/adjustment.htm .

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 12, 2010 will use fiscal year 2010 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 12, 2010 will use fiscal year 2011 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.

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

Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted.
Please note, the Run A off-cycle (scheduled for June 18, paid June 25) for the pay period ending June 12, 2010 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2010 expenditures. The Run C off-cycle (processed June 28, paid July 1) for the pay period ending June 12, 2010 will be charged to fiscal year 2011 expenditures.

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

Department Budget Tables and Fiscal Year Changes
For SMART conversion, all current FY2010 and prior rows in the Department Budget/Combination Code tables will be archived and deleted from the tables. New Fiscal Year 2011 agency funding will be uploaded to the Department Budget/Combination Code/Task Profile (Time & Labor) tables via agency spreadsheets provided for SMART conversion. This process is scheduled to run during the day of June 21, 2010. Agencies will have access in SHARP beginning Wednesday, June 23 to validate combination codes and Department Budget funding was loaded correctly. In that process, a new row will be added to the Department Budget tables with an effective date of June 13, 2010 (beginning date of the first on-cycle payroll charged to FY2011). The Budget End Date will be June 12, 2011. When adding new rows for FY2011, agencies should verify that June 12, 2011 was used as the Budget End Date for FY2011.

GHI Adjustments
As of July 1, 2010, NO payroll processing for GHI adjustments should be made for contract year 2008. Contact Brenda Vaughn (785) 296-3226 Brenda.Vaughn@khpa.ks.gov at Kansas Health Policy Authority about any event maintenance changes that may affect claims processing for contract 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. Beginning with the first payroll run for Fiscal year 2011 on June 28, 2010, Regents will be replacing the STARS funding file and DA175/176 with an INF06 interface file processed in SMART.

Currently, local employer taxes are submitted in SHARP using employer general deduction codes LCO001, LCO002, LOR001, and LOR002 for locals in Colorado and Oregon. Effective July 1, 2010 local employer taxes must be submitted as taxes on the pay detail file using tax class ‘R’ for these and any future employer local taxes established. Balances for employees with 2010 year-to-date deductions will be moved to employer taxes by Accounts & Reports, Payroll at the time of the conversion to SMART.

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

  1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls are generally created on the Tuesday night following the end of the payroll period. 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. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.

Additional Key Payroll Changes for Transition to SMART
As a result of the SMART implementation on July 1, 2010, the following is a summary of additional key payroll changes that are being implemented in SHARP effective beginning June 23, 2010.

Time and Labor

Twelve agencies will implement the PeopleSoft Time and Labor module. Agencies 039, 122, 143 and 710 will utilize an interface to enter employee’s time into Time and Labor. Agencies 046, 083, 171, 264, 296 and 300 will use self-service. Agencies 034 and 280 will use time keepers.

Payable time from Time and Labor will load into payroll. Regular pay will be captured in the ‘Other Earnings’ section of the employee paycheck view and the PAY002 report instead of the ‘Earnings’ section as from before with Time and Leave. Also, new earnings code ‘RE1’ will be used for regular pay for both exempt and non-exempt employees. Time and Labor uses Time Reporting Codes (TRC) to report time that map to Earnings Codes for use in Payroll. A complete listing of the TRC to Earnings code mapping can be found at “Time and Labor Time Reporting Codes” on the Department of Administration SHARP website at www.da.ks.gov/sharp/documents under the “Time and Labor Documents” section.

Exempt employees in Time and Labor will report leave time using different codes than from before in Time and Leave. A complete listing of the crosswalk for the new leave codes that exempts should use can be found at “Time and Labor Salaried Leave TRC Crosswalk” on the SHARP website referenced above under the “Time and Labor Documents” section.

Some Time and Labor agencies will be utilizing the Labor Distribution functionality of Time and Labor. Payable time is sent to payroll and then when the labor distribution process runs, payable and non-payable time (if applicable) are allocated based on percentages that are entered for agency project task profiles in Time and Labor. Please note that it is very important for agencies to NOT update any of their task profile information after pay calculation has begun for a pay period as it could result in pay errors. These allocations can be viewed in the ‘Other Earnings’ section of the employee paycheck view and on the PAY002 report.

Taxable Group Life

As a result of the implementation to SMART, the processing of the current employee taxable group life deduction (GTL%%% deduction code, deduction class ‘T’) in SHARP is changing effective with all checks paid on or after July 1, 2010. This amount of taxable group life will now be processed using an earnings code rather than a deduction. New earnings code ‘TGL’ will be used to record the taxable group life amount. However, the calculation of this amount will not change. The new earnings code does not add to Gross Pay but will be reported on the employee’s W-2. The TGL amount can be viewed in the ‘Other Earnings’ section of the employee paycheck view and on the PAY002 report. Please note that the non-taxable portion of group term life (GTL%%% deduction code, deduction class ‘N’) will continue to be processed as an employer deduction.

Organization Dues/United Way Fees

As a result of the implementation to SMART, the statutorily authorized fees currently deducted from the monthly remittance for organization dues and united way must be established as separate deduction codes effective with all checks paid on or after July 1, 2010. The fee for both organization dues and united way/health charities will be standardized at $ .06 per bi-weekly payroll period per deduction. The full amount of the employee contribution for united way/health charity deductions will continue to be included on the employee W-2 form.

For existing deductions:

  • During the SHARP conversion, each existing ORG%%% and UTD%%% deduction code will have a corresponding ORF%%% and UTF%%% deduction code established in SHARP with a flat rate of $ .06. Conversion programs will automatically end the current general deduction row effective 6/13/10 and set up the new employee general deductions, including the fee rows, effective 6/13/10 with the appropriate deduction amounts.
  • The Division of Accounts and Reports will make the necessary table updates required to modify the org dues flat rate deduction amounts.

Agencies are strongly encouraged to verify the new ORG/ORF and UTD/UTF setup for your employees in the general deduction table after SHARP is available on June 23, 2010 and report any issues to Payroll Services as soon as possible.

For future deductions:

  • United Way/Health Charities: Agency personnel will continue to enter united way/health charity general deductions during the enrollment period as they have in the past. Following the closing date each year for united way general deduction enrollment, a batch program will be run to update the deduction amount to account for the fee and insert the corresponding UTF%%% row.
  • Organization Dues: Effective 6/13/10, agency personnel will continue to establish the appropriate ORG%%% row upon employee enrollment. Agency personnel must also establish a corresponding ORF%%% (i.e. ORG001 and ORF001) row in order for the fee to be properly deducted.
  • Ending United Way/Org Dues Deductions: When ending an employee deduction, agency personnel must be sure to insert the correct deduction end date on both the UTD%%%/ORG%%% and the corresponding UTF%%%/ORF%%% row in employee general deduction.
  • KOSE/KAPE/PAC: The Division of Personnel Services will continue to process all KOSE/KAPE/PAC deductions and insert the appropriate general deduction rows upon employee enrollment.

The new ORF%%% and UTF%%% deduction codes can be viewed on the paycheck deductions page of the employee paycheck view and on the PAY002 report.

Paycheck Numbers on Printed Paychecks

Paycheck numbers on printed paychecks in SHARP will use 10 digits instead of the current 7 digits effective with all paychecks printed on or after July 1, 2010. Please note that the paycheck number on the employee paycheck view and on the PAY002 report will still use the current 7 digit number. However, when the paycheck is printed a prefix of ‘100’ is added to the 7 digit number. Also, this 10 digit number is sent to SMART via an INF48 interface file. For all paychecks issued on or after July 1, 2010, agencies should include the entire 10 digit paycheck number when completing form DA-6P (Paycheck Stop Payment Request).

Employer Expenditure Reporting Changes

Expenditure Sub-Object codes in STARS are being replaced with expenditure accounts in SMART. Expenditure accounts will consist of 6 digit account numbers that begin with ‘5’. Currently in SHARP, expenditure sub-object codes 1750 and 1950 are used to split out the State Employer Contribution for Dependent Health Insurance Contributions and Group Health and Hospitalization Insurance (employee). Effective with all paychecks paid on or after July 1, 2010, all employer contributions for Group Health Hospitalization will be charged to account 519500 only instead of charging two expenditure accounts.

Currently in SHARP, employer OASDI and Medicare are combined under expenditure sub-object code 1910. Effective with all paychecks paid on or after July 1, 2010, employer OASDI will be charged to account 519102 and employer Medicare will be charged to account 519101.

Payroll Journal Posting Schedule in SMART

Currently, payroll encumbrance transactions are posted to STARS during Tuesday evening of pay week in SHARP. There will not be any firm encumbrance processing in SMART. Posting Payroll Journals in SMART will be a 3 step process: edit, budget check, and post. Payroll journals will be sent to SMART three days prior to the paycheck issue date for editing. They will budget check and post in SMART two days before the paycheck issue date. For example, the on-cycle June 26, 2010 pay end date has a paycheck issue date of July 9, 2010. Payroll Journals will be sent to SMART on Tuesday, July 6, 2010 for editing. The payroll journals from this cycle will budget check and post in SMART the night of Wednesday, July 7, 2010. Delays in budget checking and posting could occur if there are errors on the journals.

Changes to the Payroll Processing Schedule
As a result of the implementation to SMART, the following changes have been made to the regular June/July payroll processing schedules for the payroll periods ending June 12, 2010 and June 26, 2010:

Friday, June 11, 2010
Payday for the payroll period ending May 29, 2010.

Time and leave interface agencies must have time and leave files for the period ending June 12, 2010 submitted to the Department of Administration for processing by 5:00 p.m.

Regents’ Run ‘C’ off-cycle payroll files for the period ending May 29, 2010 are due to the Department of Administration by 5:00 p.m.

Monday, June 14, 2010
The Run 'C' off-cycle for the payroll period ending May 29, 2010 continues to be scheduled for June 14, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, June 17, 2010.

Paysheets for the on-cycle payroll for the period ending June 12, 2010 will be created on Monday, June 14, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on June 14, 2010 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, June 15, 2010.)

The first on-cycle preliminary pay calculation for the period ending June 12, 2010 will also occur June 14, 2010, rather than Tuesday, June 15, 2010; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. June 14, 2010.

Tuesday, June 15, 2010
The second on-cycle preliminary pay calculation for the period ending June 12, 2010 will occur June 15, 2010.

Wednesday, June 16, 2010
Final pay confirmation for the on-cycle payroll for the period ending June 12, 2010 will occur June 16, 2010. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on June 16, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on June 16, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, June 25, 2010.

Regents’ on-cycle payroll files for the period ending June 12, 2010 are due to the Department of Administration by 6:00 AM on June 16, 2010. (These files would normally be due Friday, June 18, 2010.)

Thursday, June 17, 2010
The Regents’ on-cycle files for the period ending June 12, 2010 will be processed.

Regents’ Run ‘A’ off-cycle payroll files for the period ending June 12, 2010 are due to the Department of Administration by 5:00 p.m. on June 17, 2010.

Friday, June 18, 2010
The Run ‘A’ off-cycle for the period ending June 12, 2010 will be processed June 18, 2010. SHARP agencies have until 6:00 p.m. 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 Friday, June 25, 2010. Please note that this is the final payroll run for Fiscal Year 2010 and the final opportunity for agencies to enter any prior period adjustments on-line for pay periods prior to June 12, 2010.

Saturday, June 19, 2010
SHARP is shut down and unavailable to agencies so that data conversion for SMART can begin.

Wednesday, June 23, 2010
SHARP is available to all agencies. Time and Labor agencies are go-live. Agencies should make it a priority to verify Combination Codes, Department Budget tables and Task Profiles if applicable.

Regularly scheduled Run ‘B’ off-cycle for the payroll period ending June 12, 2010 is cancelled.

Friday, June 25, 2010
Payday for the payroll period ending June 12, 2010.

Regents’ Run ‘C’ off-cycle payroll files for the period ending June 12, 2010 are due to the Department of Administration by 4:00 p.m. on June 25, 2010.

Monday, June 28, 2010
The Run 'C' off-cycle for the payroll period ending June 12, 2010 continues to be scheduled for June 28, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, July 1, 2010. Please note that this is the first payroll run for Fiscal Year 2011. As a reminder, all paycheck reversals/adjustments/supplementals for pay periods on or before June 12, 2010 must be submitted by completing form DA-180, Paycheck Reversal/Adjustment/Supplemental, for central processing by the Division of Accounts and Reports Payroll Services Team. However, please note that for this off-cycle, Time and Leave agencies will be able to enter supplementals only. Any reversals/adjustments will need to be processed by completing form DA-180.

Time and Leave/Time and Labor interface agencies must have time and leave/Time and Labor Interface (INF42) files for the period ending June 26, 2010 submitted to the Department of Administration for processing by 5:00 p.m. on June 28, 2010.

Agencies should have completed the verification of Combination Codes, Department Budget tables and Task Profiles if applicable.

Tuesday, June 29, 2010
Paysheets for the on-cycle payroll for the period ending June 26, 2010 will be created as usual on Tuesday, June 29, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on June 29, 2010 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending June 26, 2010 will also occur June 29, 2010; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. June 29, 2010. Time and Labor employee timesheets should have been entered and Reported Time submitted and approved prior to June 29, 2010. All Payable Time should be approved by 6:00 PM on June 29, 2010.

Wednesday, June 30, 2010
The 2nd on-cycle preliminary pay calculation for the period ending June 26, 2010 will occur June 30, 2010.

Regents’ on-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 PM on June 30, 2010.

Thursday, July 1, 2010
The 3rd on-cycle preliminary pay calculation for the period ending June 26, 2010 will occur July 1, 2010.

Friday, July 2, 2010
Final pay confirmation for the on-cycle payroll for the period ending June 26, 2010 will occur July 2, 2010. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on July 2, 2010 in order for a paycheck record to be created. Time and Labor employee timesheets must be entered and Reported Time submitted and approved by 11:00 AM on July 2, 2010. After Time Administration runs at 11:00 AM, all Payable Time must be approved by 6:00 PM on July 2, 2010. All deduction and tax data changes must be entered by 6:00 PM on July 2, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, July 9, 2010.

Regents’ Run ‘A’ off-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 p.m. on July 2, 2010.

Sunday, July 4, 2010
The Regents’ on-cycle files for the period ending June 26, 2010 will be processed.

Monday, July 5, 2010
Fourth of July Holiday Observed

Tuesday, July 6, 2010
The Run ‘A’ off-cycle for the period ending June 26, 2010 will be processed July 6, 2010. SHARP agencies have until 6:00 p.m. 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 Friday, July 9, 2010.

Regents’ Run ‘B’ off-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 p.m.

Wednesday, July 7, 2010
The Run ‘B’ off-cycle for the period ending June 26, 2010 will be processed July 7, 2010. SHARP agencies have until 6:00 p.m. 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 Monday, July 12, 2010.

Friday, July 9, 2010
Payday for the payroll period ending June 26, 2010.

Regents’ Run ‘C’ off-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 p.m. on July 9, 2010.

Monday, July 12, 2010
The Run 'C' off-cycle for the payroll period ending June 26, 2010 will be processed on July 12, 2010. The check issue date for the Run 'C' off-cycle will be Thursday, July 15, 2010.

Time and Leave/Time and Labor interface agencies must have time and leave/Time and Labor Interface (INF42) files for the period ending July 10, 2010 submitted to the Department of Administration for processing by 5:00 p.m. on July 12, 2010.

Attached are revised calendars for the month of June and July 2010 that highlight these payroll processing schedule changes due to the implementation of SMART. The attached calendars are intended for use as supplementary reference tools only; they do not contain the level of detail that is included in the narrative portion of this informational circular.

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

Attachments

June Calendar pdf

July Calendar pdf

KEO:NTR:ewb

 

 

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