03-P-049 Fiscal Year 2004 Payroll Contribution Rates (Supersedes 03-P-002 & 03-P-035)
|DATE:||June 12, 2003|
|SUBJECT:||Fiscal Year 2004 Payroll Contribution Rates|
|EFFECTIVE DATE:||Pay Period Beginning June 8, 2003|
|CONTACT:||Roger Basinger||(785) email@example.com|
|SUMMARY:||-Fiscal Year 2004-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans
-KPERS Death and Disability Moratorium
The attached schedules contain listings of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2004. The rates for fiscal year 2004 will become effective with the on-cycle payroll period beginning June 8, 2003 and ending June 21, 2003 paid July 3, 2003. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for the remainder of calendar year 2004.
HB 2014, passed in the 2003 legislative session, extends to June 30, 2004 the moratorium of employer's contributions for KPERS Death and Disability Insurance originally scheduled to end on June 30, 2003. 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 April 1, 2003 and June 30, 2004. This procedure will be effective with the pay period beginning March 16, 2003 and ending March 29, 2003 paid April 11, 2003 through the pay period beginning May 23, 2004 and ending June 5, 2004 paid June 18, 2004. Agencies are reminded that a moratorium of employer's contributions for KPERS Death and Disability has occurred for pay periods with original check dates between April 1, 2000 to December 31, 2001, between July 1, 2002 to December 31, 2002, and between April 1, 2003 to June 30, 2004. 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 with an original check date not in a moratorium period 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 for new employees hired between March 16, 2003 and June 5, 2004 even though the agency will not be charged for KPERS Death and Disability contribution. In SHARP v8.0, the appropriate 'GTL' code will be entered in Compensate Employee (Menu Group), Administer Base Benefits (Menu), Use (Menu Item), and Retirement Plan (Component). If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the employee.
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 2004.