FY 2009

DATE:	June 18 , 2008
SUBJECT:	Private Vehicle Mileage
EFFECTIVE DATE:	July 1 ,2008
CONTACT:	Shirley Gilchrist Ginnie Schirmer Vicky Swaim Joy Duncan	(785) 296-2882 (785) 296-7021 (785) 296-2255 (785) 296-7011	(shirley.gilchrist@da.ks.gov) (ginnie.schirmer@da.ks.gov) (vicky.swaim@da.ks.gov) (joy.duncan@da.ks.gov)
APPROVAL:
SUMMARY:	FY 2009 Privately Owned Vehicle Mileage Reimbursement Rates

As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the private vehicle mileage reimbursement rates for FY 2009 at:

• 30.5¢ per mile for privately owned motorcycle
• 50.5¢ per mile for privately owned automobile
• $1.07 per mile for privately owned airplane (based on air miles rather than highway miles)

These rates reflect an increase in the privately owned automobile rate only.

KEO:rk

DATE:	June 18 , 2008
SUBJECT:	FY 2009 Subsistence Rates
EFFECTIVE DATE:	July 1 ,2008
A & R CONTACT:	Shirley Gilchrist Ginnie Schirmer Vicky Swaim Joy Duncan	(785) 296-2882 (785) 296-7021 (785) 296-2255 (785) 296-7011	(shirley.gilchrist@da.ks.gov) (ginnie.schirmer@da.ks.gov) (vicky.swaim@da.ks.gov) (joy.duncan@da.ks.gov)
APPROVAL:
SUMMARY:	FY 2009 Meal Allowance and Lodging Rates

As authorized by K.S.A.75-3207a, the Secretary of Administration has fixed the rates for FY 2009 at:

Meal Allowance:

Reduced Meal Allowance:

If the cost of meals is included within the cost of registration fees or other fees and charges paid by the agency or supplied without cost by another party, the meal allowance should be reduced as follows:

Same Day Meal Allowance:

The rates as established in accordance with K.A.R. 1-16-18(c)(3) are the same as indicated in the table above for reduced meal allowance.

Lodging Expense Limitations:

K.S.A. 75 3207a(f) provides that the daily lodging expense limitations established above may be exceeded by the lesser of either: (1) an additional 50% of the applicable lodging expense limitation, or (2) the actual lodging expense incurred.

These lodging limits continue to be applied to the lodging rate before taxes. Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation by as much as the amount of associated taxes.

KEO:rk

DATE:	December 18 , 2008
SUBJECT:	Procedures for filing 2008 Form 1099 Information Returns
EFFECTIVE DATE:	Immediately
A & R CONTACT:	Melissa Wesley	(785) 296-7291	(Melissa.Wesley@da.ks.gov)
APPROVAL:
SUMMARY:	Procedures for Filing 2008 Form 1099 Information Returns

Agencies of the State of Kansas are considered to be a single payer by the Internal Revenue Service (IRS) and payment information is required to be filed by one transmitter. In addition, federal laws and regulations require the filing of information returns to be submitted by magnetic media or electronically. In order to comply with the reporting requirements of the IRS and to avoid the assessment of penalties, the Division of Accounts and Reports will transmit all 2008 calendar year 1099 information returns for the State of Kansas electronically.

Some payments by state agencies are IRS reportable but are either not included in the Statewide Accounting and Reporting System (STARS) or the IRS required data is not provided by STARS. These payments require unique reporting procedures. Such expenditures include certain interest payments, State Fair premiums and purchases of real property.

Locally administered interest payments exceeding $10 are to be reported on Form 1099-INT. An example of these payments is interest paid from trust funds to clients by institutions like the Department of Social and Rehabilitation Services and the Department of Corrections.

IRS regulations require the State of Kansas to report on Form 1099-S any purchases of real property exceeding $600. Additional requirements for this form include a description or address of the property and the closing date of the purchase transaction. (Rental and construction costs are not to be included).

State Fair premiums are to be reported on form 1099-MISC.

Procedures for handling 1099 information returns for calendar year 2008 are as follows:

1. Agencies that have made expenditures, as described, will be responsible for the preparation and delivery of the appropriate 1099 form to the payees prior to January 31, 2009. Do not mail forms directly to the IRS or to the Kansas Department of Revenue. The payer's FEIN to use for the State of Kansas is 48-1124839. 
2. Agencies reporting applicable purchases of real property may submit the IRS and /or the State of Kansas copies of the 1099-S forms to the address below, and the Division of Accounts and Reports will submit this information to the IRS.
3. If any agency finds it necessary to issue a corrected information return, the payee should be provided a copy as soon as possible. The IRS copy of the corrected form (marked "corrected") should be forwarded promptly to the Central Accounting Services Section of the Division of Accounts and Reports.

For those agencies with expenditures to report, and fewer than 20 records, you may use the DA-43 form ( http://www.da.ks.gov/ar/forms/ ) or you may submit a text file or Excel file. If you have 20 or more records, please submit the records in a text file or in an Excel file following the format shown in the attached NON-STARS 1099 Record Layout form. All electronic files or listings for ‘1099 information reporting only’ need to be received by February 9, 2009. Please email all electronic files to Melissa.Wesley@da.ks.gov, and mail any paper listings to:

Division of Accounts and Reports
Central Accounting Services Section
900 SW Jackson, Room 351-S, LSOB
Topeka, Kansas 66612-1248

Attention: Melissa Wesley

Historically, the Division of Accounts and Reports has also produced the 1099s for these types of transactions for the following agencies: Kansas Veterans Home, Juvenile Justice Authority, SRS, Parsons State Hospital and Training Center, and Larned State Hospital. If the agencies listed wish to continue this practice, please contact Melissa Wesley to coordinate. If agreed to, the text file, or Excel files, or DA-43 need to be received by the Division of Accounts and Reports by January 19, 2009 to ensure the 1099s are distributed by the January 31, 2009 deadline. When submitting a text file, an Excel file, or a DA-43 listing, and the Division of Accounts and Reports is to produce the 1099s, please indicate on the email or cover letter submitted with the electronic file or listing that the Division of Accounts and Reports produces the 1099s.

Please note that the February 9, 2009 remittance date is only available to those agencies that produce their own 1099s, and have the Division of Accounts and Reports to file the informational return with the IRS. If the Division of Accounts and Reports both produces the 1099s and files the informational return for the agency, the January 19th date is applicable. 

When submitting data via a text or Excel file, please be sure to follow the formatting instructions, which include:

No hyphens or dashes in the Vendor Number field, entry is the nine digit FEIN or SSN,

Just record the first name, middle initial, last name in the Name field (i.e. Mr. John C. Smith
would be reported as JOHN C SMITH), do not include forms of address (Mr., Ms., etc), or
punctuation (i.e. periods or commas), or any other special characters.

All alphabetic characters in the Name, Address, City, and State fields need to be capitalized.

No hyphens or dashes in the Zip Code field, just report the five (left justify) or nine digit 
zip code, (i.e. 66612-1248 would be reported as 666121248),

No dollar signs or decimals, in the amount field, just report the amount (i.e.
$3,312.48 would be reported as 000000331248).

KEO:mw

Attachment: Non-Stars record Layout Form (xls) 

DATE:	January 21, 2009
SUBJECT:	Change to Expenditure Sub-object Code 1430, Military Pay Differential
EFFECTIVE DATE:	January 1, 2009
CONTACT:	Martin Eckhardt Gail Barnhart	(785) 296-2661 (785) 296-3404	(martin.eckhardt@da.ks.gov) (gail.barnhart@da.ks.gov)
APPROVAL:
SUMMARY:	Closing expenditure sub-object code 2698 and establishing expenditure sub-object code 1430 for military pay differential

Effective January 1, 2009, a change is being made to military differential payments per Pub. L No 110-245, the Heroes Earnings Assistance and Relief Tax Act. This act requires military differential pay to be recorded as wages that are exempt from FICA but are subject to Federal taxes. Effective January 1, 2009 military differential payments must be processed through payroll rather than through STARS. To accommodate this change, expenditure sub-object code 2698 will be closed effective December 31, 2008 and expenditure sub-object code 1430 established. The new expenditure sub-object code description is as follows:

• 1430 Military Differential Pay

This change will be reflected in the Uniform Expenditure Classification of Expenditure Sub-object Codes filing (PPM No. 7,002) on the Division of Accounts and Reports web site: http://www.da.ks.gov/ar/ppm/. 

KEO:ME:gb