00-P-012 1999 Calendar Year-End Processing (Supersedes Informational Circular 99-P-014)
|DATE:||December 3, 1999|
|SUBJECT:||1999 Calendar Year-End Processing|
|CONTACT:||SHARP: Joyce Dickerson||(785) 296-3979||(firstname.lastname@example.org)|
|Regents: Carol Beck||(785) 296-2002||(email@example.com)|
|SUMMARY:||Schedule for Processing Transactions During 1999 Calendar Year-End|
As 1999 calendar year-end approaches, the Division of Accounts and Reports has begun making preparations for the issuance of calendar year 1999 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 1999 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2000 balances; a corrected W-2 (Form W-2C) for 1999 will not be issued for the employee involved.
Final 1999 Paycheck
The final on-cycle paychecks for calendar year 1999 will be issued December 23, 1999. Paychecks will be mailed on December 22, 1999 and advices will be mailed on December 21, 1999. The final off-cycle paychecks for calendar year 1999 will be issued on December 30, 1999 for the off-cycle processed on December 27, 1999.
Any 1999 paychecks that are undeliverable should be reversed as soon as possible. SHaRP agencies have until 5:00 p.m. on December 27, 1999 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHaRP Paycheck Reversal/Adjustment/Supplemental', for any paycheck reversals by 12:00 noon on December 27, 1999. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 27, 1999 will update calendar year 2000 balances and will not be reflected in the employee's 1999 W-2.
Paycheck Adjustments and Supplements
SHaRP agencies have until 5:00 p.m. on December 27, 1999 to enter paycheck adjustment requests for any 1999 paychecks. Adjustments processed in the December 27, 1999 off-cycle payroll will be reflected on the employee's 1999 Form W-2. Please remember 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 1999 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHaRP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 20, 1999. The December 20 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 20 for inclusion in the December 27 off-cycle. However, if a large volume of DA-180 forms is received on the December 20 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 1999 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.
Adjustment requests entered on or after December 28, 1999 which are adjusting paychecks issued prior to January 1, 2000 will not result in a W-2C; the adjustment will update the employee's 2000 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests which are entered either by agencies or centrally by Payroll Services, on or after December 28 will update the employee's 2000 payroll balances.
Regents' Institutions: Off-cycle Files
1999 Paycheck Reversals
Regent Institutions must submit all transmittals for 1999 paycheck reversals by 5:00 p.m. on Thursday, December 23, 1999 in order to update the employee's 1999 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 2000 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
1999 Adjustments and Supplementals
In order to update employee balances for 1999, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Thursday, December 23, 1999. The off-cycle for the pay period ending December 11, 1999 generated on the night of Monday, December 27, 1999 will have an issue date of December 30, 1999; all activity for this off-cycle will be reflected in the employees' 1999 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 1999 date.
2000 Adjustments and Supplementals
With the exception of OASDI and/ or Medicare tax refunds or arrearages for tax years prior to 2000 any adjustments or supplementals submitted after 5:00 p.m. on Thursday, December 23, 1999, will be considered to be 2000 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2000 business, the employee's 2000 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2000 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2000, agencies should default the pay adjust check date to January 1, 2000).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2000, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2000 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 2000 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 27, 1999 deadline will not be processed until the January 31, 2000 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 24, 2000. The deadline for submitting payroll interface files for the January 31 off-cycle is 5:00 p.m. on January 28, 2000.
The deduction END date on the general deduction panel for 1999 United Way contributions should be dated between December 12, 1999 and December 25, 1999 in order for the last 1999 deduction to be taken on the paycheck issued December 23, 1999. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2000, agencies can enter a new row effective-dated between December 12, 1999 and December 25, 1999 in order for the first deduction for 2000 to be taken on the January 7, 2000 paycheck. If the 2000 deduction is to be taken over 26 pay periods, a deduction end date of December 10, 2000 should be entered.
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 1999 (December 20, 1999 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 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.
One of the changes implemented at the time of the v7.0 SHaRP upgrade is the new advance ('ADV') earnings 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 1999 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 11, 1999 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 23, 1999 (i.e., on-cycle for the payroll period ending December 11) should be collected by personal reimbursement to avoid the advance from being included in the employee's 1999 Form W-2.
The 1999 W-2 forms will again be mailed directly to the employee's home address stored on the Personal Data 1 panel in the Personnel Administration window. Please make any name, address, or social security number changes to this panel by January 1, 2000 to guarantee their inclusion in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between January 1, 2000 and January 15, 2000.
Regents 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 January 1, 2000.
W-2 forms will be mailed on or before January 31, 2000. A message will appear on the SHaRP message panel to advise agencies of the W-2 mailing date during the latter part of January.
Attached is a calendar for the month of December 1999 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHaRP bi-weekly payroll schedules issued under Informational Circular Nos. 00-P-001, dated August 4, 1999, and 00-P-006, dated October 15, 1999. The attached calendar is intended for use as a supplementary reference tool to these informational circulars. Agencies are reminded that the SHARP system will be closed to all users Thursday, December 30, 1999. Batch processing will be done on this date to ensure the timely issuance of the January 7, 2000 paychecks.
Please make note of the above payroll processing dates and adjust your schedules accordingly. 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 state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). On-line agencies should be reviewing the SHaRP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.
Attachment: December 1999 Calendar (.pdf)