99-P-032 Fiscal Year 2000 Payroll Contribution Rates (Supersedes 98-p-031 dated June 17, 1998)
|DATE:||June 18, 1999|
|SUBJECT:||Fiscal Year 2000 Payroll Contribution Rates|
|EFFECTIVE DATE:||Pay Period Beginning June 13, 1999|
|CONTACT:||Payroll Services,||(785) 296-3146|
|SUMMARY:||-Fiscal Year 2000-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans
-Summary of Fiscal Year End Payroll Processing
The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2000. The rates for fiscal year 2000 will become effective with the on-cycle payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. The rates for OASDI, Medicare, federal withholding taxes and Kansas withholding taxes remain unchanged for fiscal year 2000. In addition, the following summary will discuss key payroll processing concepts to aid in fiscal year end closing.
Benefits Contribution Rates
Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments that are processed for the payroll periods ending on or before June 12, 1999 will use fiscal year 1999 benefits contribution rates or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted. Supplementals and adjustments using a payroll period end date greater than June 12, 1999 will use fiscal year 2000 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, and group health insurance (GHI).
Taxes for supplementals and adjustments will be calculated using the tax rates effective for the paycheck issue date for the off-cycle payroll being processed. Taxes include: OASDI (Social Security), Medicare, federal withholding tax, state withholding tax, local withholding tax, and unemployment compensation insurance.
Fiscal Year Expenditure Impact
Supplementals and adjustments with the exception of reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the payroll period being adjusted.
For example, Run A (processed June 21, paid June 25) and Run B (processed June 23, paid June 28) for the payroll period ending June 12, 1999 will be charged to fiscal year 1999 expenditures. Run C (processed June 28, paid July 1) will be charged to fiscal year 2000 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 23, 1999 (paid June 28) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 1999 expenditures.
Once the Run C off-cycle for the period ending June 26, 1999 (processed July 12, paid July 15) has been processed, agencies should not request or process paycheck reversals until STARS FY 1999 closing has been successfully completed. STARS is scheduled to resume processing July 26, 1999.
The fiscal year expenditure impact applies to both SHaRP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
With the implementation of Peoplesoft 7.0, the Budget End Date and Fiscal Year on the Department Budget tables will be updated centrally at the beginning of the fiscal year. This process is scheduled to run on Monday morning June 21 and should be completed by 8:30 a.m. At that time a new row will be added to the Department Budget tables with an effective date of 6/13/99 (beginning date of the first on-cycle payroll charged to FY2000). The Budget End Date will be 6/12/00. On June 21 please refrain from making updates to these panels until after the update has been completed and you can view the 6/13/99 effective dated row.
When adding new rows for FY2000, agencies should use 6/12/00 as the Budget End Date for FY2000.
As of July 1, 1999, NO payroll processing for GHI adjustments should be made for contract year 1997. Contact Judy Allman in the Division of Personnel Services at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 1997.
Julian Date Reset
The julian date used for the SHaRP off-cycle document numbers will reset to 001 on July 1, 1999. The julian date used for the off-cycle's document number is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's check issue date. For example, the off-cycle Run C (processed June 28, paid July 1) will have the 363 julian date in the document number, but expenditures will be charged to fiscal year 2000. The June 28 off-cycle is the only cycle where the document number and expenditure do not represent the same fiscal year.
Regents' Institutions Responsibilities
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 2000.
To help reduce the number of adjustments to process, SHaRP agencies are reminded of the following:
- Enter job data changes prior to the creation of paysheets. Paysheets for 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 (i.e., pay grade, rate of pay, FLSA status, etc.) that are entered after the creation of the paysheets will not be reflected in the employee's oncycle paycheck for the period and will require a paycheck adjustment.
- Agencies should review the accuracy of the gross-to-net payroll information and employers contributions after each preliminary pay calculation. The KPAY002 report can be used to review the 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'.
Attachment: Schedule of Contribution Rates for FY2000 (pdf)