02-P-043 Fiscal Year End Payroll Processing for FY 2002 (Supersedes 01-p-041)
|DATE:||May 29, 2002|
|SUBJECT:||Fiscal Year End Payroll Processing for FY 2002|
|CONTACT:||Joyce Dickerson||(785) 296-3979||(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 2003 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 8, 2002 will use fiscal year 2002 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 8, 2002 will use fiscal year 2003 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. Note for Regents: The use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 19, paid June 24) and Run C (processed June 24, paid June 27) for the payroll period ending June 8, 2002 will be charged to fiscal year 2002 expenditures. Run A (processed July 1, paid July 5) for the payroll period ending June 22, 2002 will be charged to fiscal year 2003 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 24, 2002 (paid June 27) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2002 expenditures.
Once the Run C off-cycle for the period ending June 22, 2002 (processed July 8, paid July 11) has been processed, agencies should not request or process paycheck reversals until STARS FY 2002 closing has been successfully completed. STARS is scheduled to resume processing July 22, 2002.
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 17 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 06/09/2002 (beginning date of the first on-cycle payroll charged to FY2003). The Budget End Date will be 06/08/2003. On June 17 please refrain from making updates to these panels until after the update has been completed and you can view the 06/09/2002 effective dated row. When adding new rows for FY2003, agencies should verify that 06/08/2003 was used as the Budget End Date for FY2003.
As of July 1, 2002, NO payroll processing for GHI adjustments should be made for contract year 2000. 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 2000.
Julian Date Reset
The julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2002. 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 24, paid July 27) will have the 359 julian date in the document number and expenditures will be charged to fiscal year 2002. The off-cycle Run A (processed July 1, paid July 5) will have the 001 julian date in the document number and expenditures will be charged to fiscal year 2003.
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 2003.
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 and will require special handling.
- 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'.