14-P-027 Fiscal Year End Payroll Processing for FY 2014 (issued 5-19-2014)
Posted on 10/21/2021 at 12:50 PM by Kansas Department of Administration
|Informational Circular No.||14-p-027 |
|Supersedes Informational Circular No:||13-p-022 |
| Effective Date: ||Immediately|
|Date: ||May 19, 2014 |
|Contact Name: |
|Approval:||Nancy Ruoff |
(Original Signature on File)
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 2015 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 7, 2014 will use fiscal year 2014 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 7, 2014 will use fiscal year 2015 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.
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 C off-cycle (scheduled for June 23, 2014, paid June 26, 2014) for the pay period ending June 7, 2014 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2014 expenditures.
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 15, 2014 and should be completed by Monday morning, June 16, 2014. In that process, a new row will be added to the Department Budget tables with an effective date of June 8, 2014 (beginning date of the first on-cycle payroll charged to FY2015). The Budget End Date will be June 7, 2015.
Agencies should send Combination Code files or any Department Budget Table files for FY15 changes into Payroll Services by Friday, June 13, 2014. These files will be loaded into SHARP beginning Monday, June 16, 2014. Agencies should not enter any rows with an effective date greater than or equal to June 8, 2014 until after the FY2015 insert has been completed. When adding new rows for FY2015, agencies should verify that June 7, 2015 was used as the Budget End Date for FY2015.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday, June 20 after the ‘B’ off-cycle process has been completed for the June 7, 2014 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 20. Agencies are encouraged to complete all FY14 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 18, 2014, to take advantage of this early run of the KPAYGL5C. Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 23, 2014 will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 25, 2014.
As of July 1, 2014, NO GHI adjustments can be processed for any pay period prior to the December 22, 2012 pay period end date, which was the beginning of contract year 2013. Contact SEHP Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 at Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan about any event maintenance changes that may affect claims processing for contract year 2012 or prior.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:
- 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.Some changes to the employee’s job data information (i.e. change in FLSA status) 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.
- 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’.