20-P-019 December 2019 Payroll Processing (November 25, 2019)
Posted on 10/21/2021 at 12:51 PM by Kansas Department of Administration
Informational Circular No.
Contact Name:Joyce Dickerson
(Original Signature on File)
As 2019 calendar year-end approaches, the Office of Accounts and Reports is making preparations for the issuance of calendar year 2019 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2019 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2020 balances; a corrected W-2 (Form W-2C) for 2019 will not be issued for the employee involved.
FINAL 2019 PAYCHECK
The final on-cycle paychecks for calendar year 2019 will be issued December 27, 2019. Payroll transactions for the December 27, 2019 on-cycle paychecks will be posted to SMART on Tuesday night, December 24, 2019.
The final off-cycle, which is the ‘B’ cycle for pay period
ending December 14, 2019, paychecks for calendar year 2019 will be issued on December 30, 2019 (generated from the off-cycle processed on December 24, 2019).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 24, 2019 to enter paycheck adjustment requests for any 2019 paychecks. Adjustments processed in the December 24, 2019 off-cycle payroll will be reflected on the employee’s 2019 Form W-2. Please remember for SHARP employees only that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2019 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 11, 2019. Please note that agencies can send DA-180 forms after December 11, 2019 for adjustments that are determined to be needed.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 11, 2019 on or before the December 24, 2019 off-cycle. However, if a large volume of DA-180 forms is received on or after December 11, 2019 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2019 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
With the exception of arrearages and refunds for OASDI and/or Medicare for tax years prior to 2020, adjustment requests entered after December 24, 2019 which are adjusting paychecks issued prior to January 1, 2020 will not result in a W-2C; the adjustment will update the employee’s 2020 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 24, 2019 will update the employee’s 2020 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 14, 2019, paid December 27, 2019 are due to the Department of Administration by 4:00 p.m. on December 18, 2019.
Regent on-cycle for the pay period ending December 14, 2019, paid December 27, 2019 will be run on the night of December 22, 2019 (normally run on Monday, December 23, 2019).
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2019 Paycheck Reversals
Regent Institutions must submit all transmittals for 2019 paycheck reversals by 4:00 p.m. on Monday, December 23, 2019 in order to update the employee’s 2019 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2020 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
2019 Adjustments and Supplementals
In order to update employee balances for 2019, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Monday, December 23, 2019. The Run B off-cycle for the pay period ending December 14, 2019 generated on the night of Tuesday, December 24, 2019 will have a check issue date of December 30, 2019; all activity for this off-cycle will be reflected in the employees’ 2019 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2019 date.
2020 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2020, any adjustments or supplementals submitted after 4:00 p.m. on Monday, December 23, 2019, will be considered to be 2020 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2020 business, the employee’s 2020 balances will be updated. These files should contain a ‘C’ indicating current year business.
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2020, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2020 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2020 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2019 deadline for the December 24, 2019 Run B’s off-cycle payroll will not be processed until the April 13, 2020 off-cycle payroll. The deadline for submitting payroll interface files for the April 13, 2020 off-cycle is 4:00 p.m. on Friday, April 10, 2020.
United Way and Community Health Charities
The deduction END date on the general deduction page for 2019 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 15, 2019 and December 28, 2019 in order for the last 2019 deduction to be taken on the paycheck issued December 27, 2019 if the deduction was taken over 26 pay periods. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2020, agencies can enter a new row effective-dated between December 15, 2019 and December 28, 2019 in order for the first deduction for United Way or Community Health Charities for 2020 to be taken on the January 10, 2020 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 13, 2020 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2020.
A batch process will run the night of December 27, 2019 to establish the fee portion (deduction code UTFXXX) of the 2020 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2020. This process will reduce the 2020 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2020 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 30, 2019 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2020 United Way/Community Health Charities deductions after December 27, 2019, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Please see payroll informational circular 20-P-018 issued on November 25, 2019 for tax information related to year end.
All deductions for calendar year 2020 are biweekly except:
-Group Health Insurance (Medical, Dental and Vision): semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
-Supplemental Voluntary Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Long Term Care Insurance: semi-monthly, deducted on the first and second pay dates of the month.
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle B cut-off date of December 24, 2019. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2019 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 14, 2019 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2019 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 27, 2019. Please remember that these forms are only for those arrearages that are actively being collected.
On December 29, 2019, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on January 2, 2020 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 2, 2020 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2019. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between January 2, 2020 and January 10, 2020. Electronic W-2 forms through Employee Self Service will be available on or before January 10, 2020. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2020. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
Attached is a revised calendar for the month of December 2019 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, 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 interested in subscribing to the Infolist, but who have not yet done so, can subscribe at https://www.admin.ks.gov/resources/informational-circulars.