98-P-031 Fiscal Year 1999 Payroll Contribution Rates (Supersedes 97-P-037)
|DATE:||June 17, 1998|
|SUBJECT:||Fiscal Year 1999 Payroll Contribution Rates|
|EFFECTIVE DATE:||Pay Period Beginning June 14, 1998|
|CONTACT:||Payroll Services||(785) 296-3146|
|SUMMARY:||Fiscal Year 1999-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans|
The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 1999. The rates for fiscal year 1999 will become effective with the on-cycle payroll period beginning June 14, 1998 and ending June 27, 1998, paid July 10, 1998. The rates for OASDI, Medicare and federal withholding taxes remain unchanged for FY99. The revised state withholding tax rates effective with all paychecks issued on or after July 1, 1998 will be forthcoming as soon as the rates are released by the Kansas Department of Revenue.
Supplementals and earnings/deduction adjustments which are processed that effect payroll periods ending on or before June 13, 1998, will be processed using the benefit contribution rates effective for the payroll period being adjusted. Taxes for supplemental and earnings/deduction adjustments will be calculated using the tax rates effective for the paycheck issue date for the off-cycle payroll being processed. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, worker's compensation insurance, state leave payment reserve assessment, flexible spending accounts administrative fee, and group health insurance (GHI). Taxes include: OASDI, Medicare, federal withholding tax, state withholding tax, local withholding tax, and unemployment compensation insurance.
For example, the off-cycle payrolls for the pay period ending June 13, 1998, which will be processed on June 22 (KA1), June 24 (KA2), June 29 (KA3), and July 1 (KA4) will be processed using the fiscal year 1998 (or prior) benefit contribution rates since they will include only adjustments/supplementals effecting periods ending on or before June 13.
Supplemental and earnings/deduction adjustments processed in the KA1 and KA2 off-cycle payrolls for the period ending June 13, 1998, will be processed using the tax rates effective for fiscal year 1998 since the payments will be dated June 26 and June 29, 1998, respectively.. However, taxes for all supplementals/adjustments processed in the KA3 and KA4 off-cycle payrolls for the period ending June 13, 1998, will be processed using the tax rates effective for fiscal year 1999 since the payments will be dated on or after July 1, 1998.
As of July 1, 1998, NO payroll processing for GHI adjustments should be made for contract year 1996. Contact Judy Allman, telephone no. (785) 368-6338, in the Division of Personnel Services, about any event maintenance changes that may affect claims processing for contract year 1996.
Please note, with the exception of paycheck reversals (which always reverse expenditures in the fiscal year originally charged), supplementals/adjustments processed in the June 22 and June 24, 1998 off-cycle payrolls for the period ending June 13,1998 will effect FY98 expenditures while supplementals/adjustments processed in the June 29 off-cycle and all off-cycles thereafter will effect FY99 expenditures regardless of the payroll period being adjusted. This applies to Regents institutions as well as SHARP agencies.
Once the KA3 off-cycle for the period ending June 27, 1998 (scheduled to be generated on July 13, 1998) has been processed, no new or outstanding paycheck reversal requests will be approved for processing until STARS FY 1998 closing has been successfully completed. STARS is scheduled to be complete by July 27, 1998.
The julian date contained in document numbers for off-cycle payrolls will start over beginning with documents processed on July 15, 1998.
To help reduce the volume of adjustments, agencies are reminded of the following:
- Paysheets for an 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 (ie., pay grade, rate of pay, FLSA status, etc.) that are entered after the paysheets are created will not be reflected in the employee's on-cycle paycheck for the period and will require a paycheck adjustment. Entering job data changes timely (ie., prior to the creation of paysheets) will eliminate the need for a paycheck adjustment.
- It is extremely important for agencies to review the payroll information after each preliminary pay calculation to ensure the accuracy of the gross-to-net payroll information, including employer contributions. The KPAY002 report can be used to review 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').
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 FY 99.
Attachments: Schedule of Contribution Rates (pdf)