20-P-015 implementation of Daily Process to Identify SMART AP Vouchers for Current Employees (October 11, 2019)

Informational Circular No.	20-P-015
Effective Date:	Immediately
Contact Name: Amanda Entress	Ph: (785) 296-3887	Email: Amanda.Entress@ks.gov
Approval:	Nancy Ruoff (Original Signature on File)
Summary: Implementation of new daily process to identify SMART AP vouchers for current active employees.

  The IRS and U.S. Department of Labor require that workers be correctly classified as an employee or an independent contractor.  All agencies of the State of Kansas operate as one employer under a single Federal Employer Identification Number (FEIN) for the purposes of compliance with federal regulations and reporting, including application of U.S. Dept. of Labor and IRS rules.  Due to that fact, a state employee that performs work at a 2^nd state agency that is similar in nature to the type of work performed at the individual’s employing agency cannot be considered an independent contractor and must be compensated through payroll for the work performed at the 2^nd agency. 

Examples of work completed for multiple agencies that would be employment wages payable through payroll could include:

• Computer Programmer/Web Designer at Agency #1 maintaining a website for Agency #2
• Graphic Designer for Agency #1 designing materials for a conference for Agency #2
• Instructor at Agency #1 lecturing at Agency #2

To assist in ensuring appropriate worker classification for State of Kansas employees and independent contractors, a new daily process has been implemented to identify select SMART AP vouchers that are payable to an individual who is an active employee in SHARP.  All SMART vouchers matched to an active SHARP employee are placed on hold for a wage determination review by the Office of Accounts and Reports (A&R) in order to determine if the SMART payment represents W-2 reportable wages that must be paid through payroll.

If a SMART payment is placed on hold for review, the employing agency and the agency requesting the SMART payment may be contacted to provide additional details regarding the employee’s job duties and/or work performed for the agency.  Agencies are requested to respond timely to any inquiry for information related to a wage determination review.  If the review identifies that the SMART payment is appropriate, the voucher will be released for payment.  If the SMART payment should be paid through payroll, staff from the Office of Accounts and Reports will work with the agencies involved to ensure appropriate processing of the wage payment. 

Questions regarding worker classification may be directed to Danelle Harsin in the Office of Personnel Services at (785) 296-4383 or via e-mail at Danelle.Harsin@ks.gov.  Questions regarding payments in SHARP/SMART impacted by the new review process may be directed to the A&R Contact, Amanda Entress, at (785) 296-3887 or via e-mail at Amanda.Entress@ks.gov.

 JG:NTR:abe

Printable Version of 20-P-015