02-P-017 2001 Calendar Year-End Processing (Supersedes 01-p-022)
|DATE:||November 13, 2001|
|SUBJECT:||2001 Calendar Year-End Processing|
|CONTACT:||Roger Basinger||(785) 296-5387||(email@example.com)|
|SUMMARY:||Schedule for Processing Transactions During 2001 Calendar Year-End|
As 2001 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2001 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2001 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2002 balances; a corrected W-2 (Form W-2C) for 2001 will not be issued for the employee involved.
FINAL 2001 PAYCHECK
The final on-cycle paychecks for calendar year 2001 will be issued December 21, 2001. Paychecks will be mailed on December 20, 2001 and advices will be mailed on December 19, 2001. The final off-cycle paychecks for calendar year 2001 will be issued on December 28, 2001 for the off-cycle processed on December 24, 2001.
Any 2001 paychecks that are undeliverable should be reversed as soon as possible. After proper authorization SHARP agencies have until 5:00 p.m. on December 24, 2001 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 24, 2001. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 24, 2001 will update calendar year 2002 balances and will not be reflected in the employee's 2001 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 5:00 p.m. on December 24, 2001 to enter paycheck adjustment requests for any 2001 paychecks. Adjustments processed in the December 24, 2001 off-cycle payroll will be reflected on the employee's 2001 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 2001 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 17, 2001. The December 17, 2001 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 17, 2001 for inclusion in the December 24, 2001 off-cycle. However, if a large volume of DA-180 forms is received on the December 17, 2001 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2001 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 after December 24, 2001 which are adjusting paychecks issued prior to January 1, 2002 will not result in a W-2C; the adjustment will update the employee's 2002 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, 2001 will update the employee's 2002 payroll balances.
REGENTS' INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 8, 2001, paid December 21, 2001 are due to the Department of Administration by 6:00 am December 14, 2001.
REGENTS' INSTITUTIONS: OFF-CYCLE FILES
2001 Paycheck Reversals
Regent Institutions must submit all transmittals for 2001 paycheck reversals by 5:00 p.m. on Friday, December 21, 2001 in order to update the employee's 2001 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 2002 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2002 submitted after 5:00 pm on December 21, 2001 should default the pay adjust check date to January 1, 2002.
2001 Adjustments and Supplementals
In order to update employee balances for 2001, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 21, 2001. The off-cycle for the pay period ending December 8, 2001 generated on the night of Monday, December 24, 2001 will have an issue date of December 28, 2001; all activity for this off-cycle will be reflected in the employees' 2001 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 2001 date.
2002 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2002, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 21, 2001, will be considered to be 2002 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2002 business, the employee's 2002 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2002 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2002, agencies should default the pay adjust check date to January 1, 2002).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2002, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2002 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 2002 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 24, 2001 deadline will not be processed until the January 28, 2002 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 21, 2002. The deadline for submitting payroll interface files for the January 28, 2002 off-cycle is 5:00 p.m. on January 25, 2002.
The deduction END date on the general deduction panel for 2001 United Way contributions should be dated between December 9, 2001 and December 22, 2001 in order for the last 2001 deduction to be taken on the paycheck issued December 21, 2001. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2002, agencies can enter a new row effective-dated between December 9, 2001 and December 22, 2001 in order for the first deduction for 2002 to be taken on the January 4, 2002 paycheck. If the 2002 deduction is to be taken over 26 pay periods, a deduction end date of December 8, 2002 should be entered.
All deductions for calendar year 2002 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second paydates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
- Long Term Care: monthly, deducted on the first paydate of the month.
- Optional Group Life Insurance: monthly, deducted on the second paydate of the month.
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 24, 2001 (December 17, 2001 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. Any arrearage collections made by personal reimbursement that are collected after December 14, 2001, and prior to December 24, 2001, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2001 W-2.
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 2001 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 8, 2001 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 21, 2001 (i.e., on-cycle for the payroll period ending December 8, 2001) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2001 Form W-2.
The 2001 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 5:00 pm on December 28, 2001 to guarantee the updated information is included 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, 2002 and January 15, 2002.
Regent's 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 28, 2001.
W-2 forms will be mailed on or before January 31, 2002. A message will appear on the SHARP message panel to advise agencies of the W-2 mailing date in January.
Attached is a calendar for the month of December 2001 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 No. 02-P-012, dated October 1, 2001. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
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: 2001 December payroll processing calendar (pdf)