FY 2015

Please see State of Kansas Travel Handbook 4100 for information on how meals are reimbursed. 

As authorized by K.S.A.75-3207a, the Secretary of Administration has fixed the rates for FY 2015  at:

Meal Allowance:

*or actual to either a maximum of $127 per day or the allowable meal expense on the U.S. Department of State website for Foreign Per Diem Rates by Location

International Meal Allowance:

Beginning in FY2015, international travelers may use the meal per diem rates for a particular city as established by the U.S. Department of State on their website (http://aoprals.state.gov/web920/per_diem.asp) under the heading Foreign Per Diem Rates by Location. Look up the country and then the city and find the meal allowance under the column heading M & IE Rate.

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 shown in the table above.

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.

 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.

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• Requirements to report payments where the 1099 data was not recorded in SMART:
  1. The vendor/client must be in the SMART vendor table.
  2. All reportable payments must be submitted via ServiceDesk using the EXCEL template referenced below
  3. All payments reported through the Office of System Management will be processed through SMART. Paper 1099s are generated and mailed to the vendors. The 1099 information will be electronically submitted to the IRS.

There is NO option for the agency to print the forms and have the Office of System Management report to the IRS.

Below are the policy and procedures.

While most 1099 transactions are recorded in the Statewide Management, Accounting and Reporting Tool (SMART), and require no additional action by state agencies; there are some payments that occur outside of SMART or the information to be reported to the IRS is not in SMART. These transactions result in unique reporting procedures comprised of the following:

• • Locally administered interest payments of $10 or more are to be reported on IRS Form 1099-INT. These payments typically represent interest paid from trust funds to clients of institutions with the Department for Aging and Disability Services and the Department of Corrections.
  • State Fair premiums are to be reported on Form 1099-MISC.
  • Other payments such as non-employee awards not paid directly to the recipient from SMART.
  • Note that purchases of Real Property are now reported in SMART, and require the appropriate SMART preferences to record the appropriate data.

To report non-SMART payments for form 1099 purposes the agency will need to confirm the vendor is in the SMART vendor table with the appropriate 1099 type and class, and withholding is turned on. If the vendor is not in the vendor table, the agency must add the vendor to SMART including the appropriate 1099 type and class, and turn withholding on.

Complete the EXCEL template“PS_WTHD_TRAN_TBL_update_template” (Excel file attachment included at the bottom of this circular) for all non-SMART 1099 reportable payments. The completed template needs to be received by the Office of System Management by January 13, 2015 to ensure the 1099s are distributed by the January 31, 2015 deadline.

The template has the columns listed below. Do not insert or delete columns or rows. Do not change the formatting. Beginning with line 2 (replacing the sample data), complete one line for each payment (add lines as necessary for additional withholding types/classes). The gray columns are defaults and should not be changed. If 499 lines are not sufficient, copy line 500 down. When completed, attach the EXCEL spreadsheet to a Service Desk ticket with the heading “non-SMART 1099”. Note if you have leading zeros precede them with an apostrophe ‘, i.e. vendor id ‘0000123456.

BUSINESS_UNIT: 5 characters must have leading zeros (your agency number)

WTHD_ENTITY: IRS

WTHD_TYPE: as listed in the vendor table (1099, 1099I, 1099G, 1099D)

WTHD_JUR_CD: FED

WTHD_CLASS: as listed in the vendor table, with leading zeros.

WTHD_RULE: RULE0

VENDOR_SETID: SOKID

VENDOR_ID: 10 digits with leading zeros, as assigned by SMART .

VNDR_LOC: the vendor location with the appropriate 1099 type and class, usually 001, with leading zeros

ADDRESS_SEQ_NUM: 1

PYMNT_ID: Blank

VNDR_REGIST_ID: SSN or FEIN, 9 digits including leading zeros

PYMNT_DT: date of payment, mm/dd/yyyy format

WTHD_DECL_DATE: Same as date of payment

WTHD_BASIS_AMT: The taxable amount for this 1099 type and class for 2013.

DESCR100: 100 characters of your choice – no punctuation, no special characters

Additional Resources:

Training guide for setting up vendors for 1099 reporting and an account code guide:
Training Guide and Account Code Guide

IRS guide to each type of 1099, including the payments for each:
IRS Guide to Types of 1099's

Page 6 and 7 of the job aid “Create a 1099 Voucher” has Examples of payments by 1099 type and class:
Create a 1099 Voucher Job Aid

SMART withholding codes:
SMART Withholding Codes Job Aid

Attachment: IC 15-a-003 - PS_WTHD_TRAN_TBL_update_template

Standard mileage rates effective January 1, 2015.  The IRS rate for privately owned automobiles increases to 57.5 cents per mile while the moving mileage rate decreases to 23 cents per mile. 
 

K.S.A. 75-3203a provides that the mileage reimbursement rate shall not exceed the lowest of the following rates:

1. the rate allowed by the IRS;
2. the rate used in preparing the governor’s budget report under K.S.A. 75-3721, and amendments thereto; or
3. any revision of the rate as specifically directed in appropriation acts of the legislature.

Thus, per the requirements of K.S.A. 75-3203a, the Department of Administration will NOT raise the privately owned automobile reimbursement rate for the remainder of FY 2015.  However, the moving mileage rate must decrease so as not to exceed the IRS moving mileage rate.

As authorized by K.S.A.75-3203a, the Secretary of Administration has fixed the following private vehicle maximum mileage reimbursement rates for the remainder of FY 2015, effective January 1, 2015:

     Reduced -
         23¢ per mile for moving mileage rate

     Unchanged -
         56¢ per mile for privately owned automobile
         53¢ per mile for privately owned motorcycle
         $1.31 per mile for privately owned airplane (based on air miles rather
          than highway miles)

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Informational Circular No.  15-A-005     Supersedes 03-A-020
Office of the Chief Financial Officer
Date of this Informational Circular:  January 26, 2015
Effective Date:  December 21, 2014
OSM Contact Name: Nancy Ruoff

Telephone: (785) 296-2853

Email: Nancy.Ruoff@da.ks.gov

Approval:  Refer to 15-P-028 
Summary:  Addition of Earnings Code 'COM' for Reimbursement of Personal Communication Devices Used for State Business and Other Accounting Policy and Procedure Regarding Personal/State-Issued Mobile Devises  
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Executive Order 14-06, signed by the Governor on December 9, 2014, authorizes mobile device reimbursement for State employees to offset the cost to the employee for using his/her personal device for State business.  The amount of the monthly mobile device reimbursement shall be capped at and not exceed the rate of $30.00 per employee.  Mobile device allowances other than through reimbursement are prohibited.

The approved mobile device reimbursement will be paid monthly and included in the employee’s paycheck.  However, the reimbursement will not be considered as taxable income to the employee since it is a reimbursement for the business use of an employee’s personal mobile device.  Additionally, this reimbursement does not constitute an increase to base pay, and will not be included in the calculation of percentage increases to base pay due to salary increases, promotions, etc.

In order to administer the reimbursement, a new earnings code has been added to SHARP effective December 21, 2014.  The following earnings code is eligible to be used starting with the pay period beginning December 21, 2014 through January 3, 2015 paid January 16, 2015.

This new earnings code will not be included in KPERS wages for calculating KPERS paycheck deductions. Earnings code COM will be mapped to flow through payroll using the same account codes as earnings code (MVT) for the reimbursement of moving expenses. Therefore, the account codes that COM is mapped to are 510100, 510110, 511100, and 511110.

SHARP Agencies

The Office of Personnel Services has created the COM (Communication Device) Time Reporting Code (TRC) and has mapped the COM TRC to the COM Earnings Code effective December 21, 2014. The COM TRC is now visible in Time and Labor timesheet TRC dropdown lists. The dollar amount for COM should be entered on the second Saturday of the time period or earlier in the pay period if the employee is not active on the second Saturday.

The Office of Systems Management, Payroll Systems Team, is responsible for adding the new earnings code in the SHARP system.  Regents’ institutions are responsible for implementing the new earnings code in their payroll systems.

Other Accounting Policy and Procedure Regarding Personal/State-Issued Mobile Devices

Note that at a minimum, State business-related calls and/or data on an employee’s personal mobile device may be subject to disclosure requests under the Kansas Open Records Act.

Agencies shall maintain current records of employees designated to receive state-issued mobile devices or reimbursement for the use of personal mobile devices, in accordance with requirements established by the Office of Information Technology Services (OITS).

Note that state-issued as well as personally owned mobile devices for which reimbursement is received shall be enrolled into the Mobile Device Management product to be selected by OITS.

Personal Mobile Device Reimbursement

The agency head or designee must provide documented approval of the reimbursement.  Additional information from OITS will follow.

In no instance will the employee be reimbursed more than the monthly cost to the employee in an amount not to exceed $30.00.

In order to receive reimbursement the mobile device number must be provided to the state under OITS procedures, including notification within five business days of any mobile device number changes.

State-Issued Mobile Devices

For review and audit trail purposes, monthly statements from mobile service providers for state-issued mobile devices are required. These should be attached to the agency's payment voucher documentation.

The agency shall review the monthly statement for billing accuracy and to ensure that any additional charges resulting from personal use are reimbursed to the agency. The SMART electronic voucher approval indicates the agency’s acknowledgement and review of compliance with the mobile device policy.

More than de minimis personal use of a State-issued mobile device without written authorization by the employee’s agency head is prohibited except in emergencies. When personal use causes the monthly base service plan rate to be exceeded, reimbursement must be made to the State for the overage. All reimbursements are to be made within 15 days of receipt and reconciliation of the monthly statement. If an employee reimburses the agency, note the receipt voucher number on the invoice copy retained with the payment voucher documentation. The calculation of the reimbursement highlighting the overage for which reimbursement is made should also be attached to the payment voucher documentation.

The State of Kansas is exempt from paying State and local sales taxes, and federal excise tax on state-issued mobile devices. However, the State must pay the Universal Service charge and taxes that are passed through from other carriers.

The State is self-insured so mobile device replacement or insurance provisions should not be a part of mobile device agreements.

Agreements with mobile device providers should allow for the provisions of the State's Prompt Payment Act.

The Office of the Chief Financial Officer may review selected payments for compliance with Executive Order 14-06.  In addition, the appropriateness of the plan for the agency's needs may be reviewed.

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In House Substitute for SB 112, the 2015 Legislature enacted the state’s main appropriation bill for FY 2016 and FY 2017.  Sections 181(a), (b), (c) contain provisions that prohibit any state agency during FY 2016 and FY 2017 from spending funds on subscriptions to newspapers or magazines, including any electronic subscriptions, with the exception of the Judicial Branch, the Historical Society, the State Library, the Board of Regents and its institutions.  Your agency should be in compliance with these sections of the appropriation bill.  If you have any questions, please contact your assigned budget analyst.

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