03-P-032 W-2 Wage and Tax Statements for Calendar Year 2002 (Supersedes 02-P-032)

DATE:	January 6, 2003
SUBJECT:	W-2 Wage and Tax Statements for Calendar Year 2002
EFFECTIVE DATE:	Immediately
CONTACT:	Sunni Zentner	(785) 296-7058	Sunni.Zentner@da.state.ks.us
	Debbie Esquibel	(785) 368-6313	Debbie.Esquibel@da.state.ks.us
	Payroll Services Fax Number (785) 291-3399
APPROVAL:
SUMMARY:	Information Pertaining to Employee 2002 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2002 W-2 Wage and Tax Statement for each employee of your agency. Agencies that are on-line users of SHARP will find the report in your agency mailbox on the MVS dated December 27, 2002. The KTXPR55 listing will be distributed to paper user agencies via the normal report distribution process.

The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2002 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2002 W-2's.

In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.

Agencies are reminded that in an effort to reduce programming costs for updating and maintaining custom programs in SHARP, the decision was made to use the standard W-2 form, which conforms to our SHARP software. The standard W-2 form is substantially different from the custom W-2 form used in past years. The new W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressured sealed.

Please note that the IRS has reported an error on the 2002 Form W-2 in the 'Earned Income Credit (EIC)' paragraph in the Notice to Employee on the back of Copy B. The Notice does not contain the income limitations for the married filing jointly status. Agencies should notify all employees who participated in EIC for 2002 about this error. The paragraph should read as follows:

You may be able to take the EIC for 2002 if (a) you do not have a qualifying child and you earned less than $11,060.00 ($12,060.00 if married filing jointly), (b) you have one qualifying child and you earned less than $29,201.00 ($30,201 if married filing jointly), or (c) you have more than one qualifying child and you earned less than $33, 178.00 (34,178.00 if married filing jointly). You and any qualifying children must have valid Social Security Numbers (SSNs).

The mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. In the past, the employee's home address has always been used for the W-2. This change will not impact a large number of employees, since most employees do not have a mailing address, and the W-2 will be mailed to the employee's home. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.

All 2002 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 16, 2003. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.

In cases where the 2002 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.

Duplicate laser printed W-2's for calendar year 2002 will be printed for distribution to the agencies on each Monday, beginning February 3, 2003 and continuing through April 14, 2003. The agencies are requested to submit one blanket request for duplicate 2002 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests for 2002 W-2's should include each employee's name and employee ID and the list should be sorted by last name. Requests for duplicate W-2's for years prior to 2002 should be submitted separately and should also include the employee's SSN as well as name and employee ID. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services. (See Page 1 for telephone, e-mail, and fax information.)

The W-2 form used in past years provided the employee summary, which showed calculations for federal, state, social security, and Medicare grosses. This summary is no longer available using the standard functionality provided by our software. Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms.

In addition, on-line agencies may also consider utilizing the SHARP KPAY318, "Year to Date Balances" report to assist in answering W-2 related questions. The report is available through SHARP using the path: Go / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. This report provides year-to-date balances for earnings, deductions, and taxes for one employee. A sample of this report is included as Attachment B. The earnings total listed on the report includes those earnings types in which the Adds to Gross indicator is Y. The deductions balances section of the report only includes those deductions with the deduction class of A (after-tax), B (before-tax), and T (taxable benefit). Deduction balances with the deduction class of N (non-taxable benefit) will not be included on the report since they represent employer contributions. The report can only be requested for employees with a current job record in your department. Agencies will not be able to request this report for someone who does not have a current job record with your agency. If you need this report for a former employee, or if you are a paper user, you may submit a request for this report to Debbie Esquibel or Sunni Zentner. (See Page 1 for telephone, e-mail, and fax information.) If you do not currently have the Reports menu under Maintain Payroll Data U.S., you will need to complete an Agency Security Selection form that can be printed from the SHARP Web site at http://www.da.ks.gov/sharp/documents. Agency technical staff will need to download the sqr for this report. The instructions for downloading can be found at the SHARP web site: http://www.da.ks.gov/sharp/downloads.htm. <------- Broken link

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