14-p-026 Changes to the Payroll Arrearages Collection Policy

A recent review of the PAY007 Deductions in Arrears Report indicated a significant number of unresolved, outstanding payroll arrearages. As a result, Payroll Services, with the approval of the Office of Financial Management, is instituting new policies and procedures to proactively work with agencies to address outstanding payroll arrearages.

As a one-time clean-up option, a list of arrearages over $25, owed by an employee who terminated employment more than five years ago, will be mailed to responsible agencies for approval to allow these debts to be written off without them being sent to the State’s Setoff Program for collection.   Agencies have the option to not approve the write-off and commit to collect the debts before December 1, 2014 according to the procedures specified in the Policy and Procedure Manual Filing Number 8001, K.A.R.s 1-2b-1 and 1-2b-2.

All outstanding payroll debts less than five years old, whether for an employee who is terminated or active, must continue to be pursued by the agency for collection and the necessary collection steps completed prior to calendar year end.  Beginning in 2014, at the end of each calendar year, agencies will be notified via the SHARP Infolist of the deadline for providing notice to Payroll Services of arrearage recoveries which are in process and should not be submitted to Setoff.  Following the close of the notification period, Payroll Services will generate a file of all outstanding payroll arrearages, excluding GHI advances for active employees and arrearages requested to be excluded by agencies, to be sent directly to the State of Kansas’ Setoff program.  The arrearages will then be removed from the SHARP system.

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