03-P-002 Fiscal Year 2003 Payroll Contribution Rates (Supersedes 01-P-047, 02-P-003, and 02-P-021)
|DATE:||June 18, 2002|
|SUBJECT:||Fiscal Year 2003 Payroll Contribution Rates|
|EFFECTIVE DATE:||Pay Period Beginning June 9, 2002|
|CONTACT:||Roger Basinger||(785) email@example.com|
|SUMMARY:||-Fiscal Year 2003-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans
-KPERS Death and Disability Moratorium
The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2003. The rates for fiscal year 2003 will become effective with the on-cycle payroll period beginning June 9, 2002 and ending June 22, 2002 paid July 5, 2002. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for fiscal year 2003.
A moratorium of KPERS Death and Disability Insurance has been established from July 1, 2002 to December 31, 2002. Because of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between July 1, 2002 and December 31, 2002. This procedure will be effective with the pay period beginning June 9, 2002 and ending June 22, 2002 paid July 5, 2002 through the pay period beginning November 24, 2002 and ending December 7, 2002 paid December 20, 2002. Please note that KPERS Death and Disability Insurance for off-cycles is calculated based on pay period end dates, so paycheck adjustments for pay period end dates prior to June 9, 2002 will continue to have the contributions remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between June 9, 2002 and December 7, 2002 even though the agency will not be charged for KPERS Death and Disability contribution. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employees.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to Board of Regents retirement plans members who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(5). K.S.A. 74-4927a(5) specifically requires the "employee" to remit the required contribution while on leave without pay.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. 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.
Attachments A, B & C (.pdf)