17-P-024 Fiscal Year 2018 Payroll Contribution Rates (June 21, 2017)
Informational Circular No.: 17-P-024
Supersedes Informational Circular No: 16-P-025
Effective Date: Pay Period Beginning June 18, 2017; Ending July 1, 2017; Paid July 14, 2017
Contact Name: Carmen Waters
Ph: (785) 296-7059
Approval: Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2018-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans
The attached schedules contain employer’s contribution rates for KPERS, unemployment insurance, state leave assessment, group health insurance, and worker’s compensation insurance for fiscal year 2018. The fiscal year 2018 rates will become effective with the on-cycle payroll period beginning June 18, 2017, ending July 1, 2017 and paid July 14, 2017. The withholding rates for OASDI, Medicare, and federal income taxes remain unchanged for the remainder of calendar year 2017. The withholding rates for Kansas income taxes will be changing. An additional informational circular will be published to discuss the Kansas income tax withholding changes and effective dates as soon as they are released by the Kansas Department of Revenue.
For Fiscal Year 2018, the employer’s contribution to KPERS Death and Disability Insurance moratorium will extend through the first quarter of fiscal year 2018, which includes pay periods ending July 1, 2017, paid July 14, 2017 through pay period ending September 9, 2017, paid September 22, 2017. Beginning with the second quarter of fiscal year 2018 the rate will be 1.00% (except for retirement codes J1, J2, J3 which are .4%). Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustments with payroll period end dates that contain an original check date within a moratorium period. Previous moratoriums for KPERS Death and Disability Insurance contributions were in place for payroll periods with an original check date between March 12, 2016 and June 30, 2017; between April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; between April 1, 2012 and June 30, 2012; and between April 1, 2013 and June 30, 2013.
For Regent institutions, moratoriums do not extend to members of Board of Regents retirement plans who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(8), which specifically requires the “employee” to remit the required contribution while on leave without pay.
Legislation passed in 2015 changed rules about KPERS retirees who work after retirement for the same or a different KPERS employer. More detailed information on these changes can be found in the Working After Retirement flyer. These changes do not affect KP&F or the Retirement System for Judges. For retirees who begin work for a different KPERS employer, the employer must make contributions based on retiree compensation. This includes all retirees who first begin actively working in KPERS-covered positions on or after May 1, 2015. Employees who meet these criteria should be enrolled in corresponding benefit plan and Deduction Code ‘RETRET’ as detailed in Informational Circular 16-P-024. Retirees enrolled in the working after retirement benefit plans are not subject to KPERS death and disability insurance.
The Office of the Chief Financial Officer, Payroll Systems Team will update the SHARP system to reflect the changes in employer’s contribution rates. Regents’ institutions are responsible for ensuring the changes in rates are made in their individual systems. Regents’ institutions are also responsible for ensuring that the SMART INF06 impacts the correct fiscal year and account codes.
Printable Version of 17-P-024