00-P-029 Fiscal Year End Payroll Processing for FY 2000 (Supersedes Informational Circular 99-P-032)
|DATE:||June 9, 2000|
|SUBJECT:||Fiscal Year End Payroll Processing for FY 2000|
|CONTACT:||Roger Basinger||(785) 296-5387||(firstname.lastname@example.org)|
|SUMMARY:||Summary of Fiscal Year End Payroll Processing|
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular concerning fiscal year 2001 payroll contribution rates will be issued as soon as the information is 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 the payroll periods ending on or before June 10, 2000 will use fiscal year 2000 benefits contribution rates or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted. Supplementals and adjustments using a payroll period end date greater than June 10, 2000 will use fiscal year 2001 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, and group health insurance (GHI).
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. The rates for OASDI, Medicare, federal withholding taxes and Kansas withholding taxes remain unchanged for fiscal year 2001.
Fiscal Year Expenditure Impact
Supplementals and adjustments with the exception of reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the payroll period being adjusted. For example, Run B (processed June 21, paid June 26) and Run C (processed June 26, paid June 29) for the payroll period ending June 10, 2000 will be charged to fiscal year 2000 expenditures. Run A (processed July 3, paid July 7) for the payroll period ending June 24, 2000 will be charged to fiscal year 2001 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 26, 2000 (paid June 29) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2000 expenditures.
Once the Run C off-cycle for the period ending June 24, 2000 (processed July 10, paid July 13) has been processed, agencies should not request or process paycheck reversals until STARS FY 2000 closing has been successfully completed. STARS is scheduled to resume processing July 24, 2000.
The fiscal year expenditure impact applies to both SHaRP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
With the implementation of Peoplesoft 7.0, 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 on Monday morning June 19 and should be completed by 8:30 a.m. At that time a new row will be added to the Department Budget tables with an effective date of 6/11/00 (beginning date of the first on-cycle payroll charged to FY2001). The Budget End Date will be 6/10/01. On June 19 please refrain from making updates to these panels until after the update has been completed and you can view the 6/11/00 effective dated row. When adding new rows for FY2001, agencies should use 6/10/01 as the Budget End Date for FY2001.
As of July 1, 2000, NO payroll processing for GHI adjustments should be made for contract year 1998. Contact Judy Allman in the Division of Personnel Services at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 1998.
Julian Date Reset
The julian date used for the SHaRP off-cycle document numbers will reset to 001 on July 1, 2000. The julian date used for the off-cycle's document number is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's check issue date. For example, the off-cycle Run C (processed June 26, paid June 29) will have the 362 julian date in the document number and expenditures will be charged to fiscal year 2000. The off-cycle Run A (processed July 3, paid July 7) will have the 003 julian date in the document number and expenditures will be charged to fiscal year 2001.
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 STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2001.
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 payroll are created on the Tuesday night following the end of the payroll period. Any changes to the employee's job data information (i.e., pay grade, rate of pay, FLSA status, etc.) that are entered after the creation of the paysheets will not be reflected in the employee's on-cycle paycheck for the period.
- Agencies should review the accuracy of the gross-to-net payroll information and employers contributions after each preliminary pay calculation. The KPAY002 report can be used to review the gross-to-net data. On-line agencies can review employer contributions by accessing the employee's paycheck deduction information for the period. Employer contributions have a deduction class of 'N'.