Payroll Circulars
Informational Circular No. |
21-P-001 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: State Tax Withholding Changes Due to Teleworking for COVID-19. |
Per the Internal Revenue Service (IRS), taxes are to be withheld for the state in which the individual is performing the work. For individuals employed by the State of Kansas, the state for tax withholding is generally Kansas. However, due to the impacts of the Coronavirus pandemic many agencies have implemented telework policies for their employees. Due to this transition, employees who live outside the state of Kansas may now be performing their normal job duties on a regular basis within the state they live.
Statewide Payroll will provide a listing to agency payroll contacts of employees for whom the home address in SHARP is not Kansas. Agencies are asked to review the current work location of each employee to determine if the employee is teleworking part-time or full-time from their home address located outside of the state of Kansas. For those employees teleworking and living in a state other than Kansas, the agency will need to determine if taxes for the employee’s state of residence need to be withheld.
Some states are offering an exemption from state income tax withholding for employees temporarily teleworking in their home state due to the pandemic. Of the four states bordering Kansas, only Nebraska is currently offering an exemption from withholding. Any employee teleworking on a regular basis from Colorado, Oklahoma, or Missouri, or another state that has not waived withholding, will require an update to state tax withholding. Please note that agencies only need to review and update income tax withholding, as unemployment insurance obligations are monitored and reviewed by Statewide Payroll.
For those states with no COVID-19 exceptions or no existing exemptions for employees who are teleworking, agencies will need to take the following actions:
For an employee now living/working (teleworking) from a state other than Kansas:
- Contact the employee to complete the state tax withholding form for their home state and return it to the agency HR/Payroll office.
- Add a new State Tax Data row for the employee in SHARP to initiate state tax withholding to the state in which the employee is living and working. The State Tax Data row for Kansas can be left as is currently.
- Please see the SHARP 9.2 Training and Desk Aids Payroll Courses Lesson 2: Employee Payroll Tax Data for help in completing these changes.
- See the attached procedures for updating the employee Time Reporter Data, which is required in order to capture the state the employee hours are worked in. If you have questions with the setup, please contact Heather DeBusk at Heather.DeBusk@ks.gov or via phone at (785) 296-2434.
- Notify the multi-state withholding teleworker(s) that the individual is responsible for tracking and reporting on the employee timesheet the number of hours worked by State in the pay period.
The instructions in this informational circular address multi-state tax withholding for SHARP agencies. Regent agencies are responsible for completing any necessary updates to properly calculate and report state tax withholding for employees working in multiple state locations.
Please note the changes to employee data may require both HR and Payroll offices within the agency. For questions on tax data setup please contact Carmen Waters at (785) 296-7059 or by email at Carmen.Waters@ks.gov. For questions regarding the tax changes for teleworkers please contact Amanda Entress at (785) 296-3887 or by email at Amanda.Entress@ks.gov.
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Printable Version of 21-P-001
Informational Circular No. |
21-P-002 |
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Supersedes Informational Circular No: |
20-P-007 |
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Effective Date: |
Payroll Period Ending August 22, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $32.11 to $32.76 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 9, 2020 and ending August 22, 2020, paid September 4, 2020.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $32.05 to $32.70 and the fee (ORF030) will remain at $.06 (for a total deduction of $32.76 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 20-P-002
Informational Circular No. |
21-P-003 |
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Supersedes Informational Circular No: |
N/A |
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Effective Date: |
September 18, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
Informational Circular 21-P-001 issued August 10, 2020 provided guidance to agencies regarding the multi-state tax withholding setup required for individuals teleworking from a location outside of the state of Kansas. To assist agencies in tracking, managing and reporting information for employees who are teleworking on a regular basis, new ‘Maintain Teleworkers’ pages have been added to SHARP. The pages can be accessed using the navigation path Workforce Administration > Job Data > Maintain Telework. These pages will be added to navigation collections during a future upgrade.
To provide the data necessary to ensure accurate tax reporting, SHARP agencies are required to complete the Maintain Teleworkers pages in SHARP for any current or future employee teleworking outside of the state of Kansas. The data for current employees should be entered by Friday, October 2nd. Agencies are also responsible for updating the teleworking status when a teleworking employee returns to work full-time in Kansas or changes out-of-state teleworking locations so that the necessary updates to Employee Tax Data can be completed.
The use of the Maintain Teleworkers pages is optional for agencies as a tool to track information for employees teleworking from a location in the state of Kansas. In addition, the use of these pages is optional for Regent agencies as each regent is responsible for maintaining and reporting accurate tax data for regent employees.
Instructions for entering and maintaining teleworker data are attached to this circular and available at the payroll procedures website at SHARP Telework Procedures.
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Printable version of 21-P-003
Informational Circular No. |
21-P-004 |
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Supersedes Informational Circular No: |
N/A |
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Effective Date: |
August 23, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: New Benefit Plan Type/Benefit Plan/Nontaxable Deduction Code to Record KPERS Contributions for Employees on Furlough |
Although there has not been a need for widespread furloughs as a result of the ongoing pandemic, a few State agencies have implemented limited furloughs due to funding limitations. In processing furlough hours for those agencies, Statewide Payroll and KPERS have identified the need for additional configuration in SHARP to meet the KPERS contribution collection and reporting requirements per Kansas statutes.
Pursuant to K.S.A. 74-49, employees placed on furlough without pay continue to receive the benefit of KPERS contributions for the duration of the furlough. During the furlough period, the employer is required to pay the combined employee and employer contributions for the specified KPERS rates on behalf of the employee and report to KPERS those contributions with the amount of compensation that would have been paid to the employee had the employee not been placed on furlough.
Therefore, to meet KPERS requirements, a new KPERS-Furloughs deduction code, benefit plan type and benefit plan will be added to SHARP. The use of the current furlough time reporting code/earnings code (FU1) will trigger the processing of the new benefit plan type/benefit plan/deduction code in SHARP. For a SHARP employee impacted by an agency furlough, the agency will need to add the new 7F benefit plan type to the Retirement Plans page for the employee. The KPERS-Furlough codes will be added to SHARP effective for the payroll period beginning August 23, 2020, ending September 5, 2020, paid September 18, 2020.
The new KPERS-Furloughs benefit plan type, benefit plan and nontaxable (employer only) deduction code are:
PLAN TYPE |
DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION | BENEFIT PLAN | BENEFIT PLAN DESCRIPTION |
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7F | RETREF | KPERS-Furloughs | KPERS | PF | KPERS Retirement Code PF |
The PF Benefit Plan will be established with a rate of 20.23% which is derived from the addition of the current employee rate (6%) plus the current employer rate for regular KPERS benefit plan P members (14.23%). Additional Furlough benefit plans will be established if needed for other KPERS member types on furlough with the different KPERS rates. If required to be established, these will be communicated via future informational circulars.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.
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Printable Version of 21-P-004
Informational Circular No. |
21-P-005 |
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Supersedes Informational Circular No: |
20-P-011 |
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Effective Date: |
Calendar Year 2021 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2021 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2021. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 7:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 6:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 7:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Printable Version of 21-P-005
Informational Circular No. |
21-P-006 |
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Supersedes Informational Circular No: |
20-P-014 |
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Effective Date: |
January 1, 2021 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: Social Security Wage Base Increase to $142,800 effective January 1, 2021 |
The Social Security wage base for OASDI will be $142,800 for calendar year 2021. This is a $5,100 increase from the wage base of calendar year 2020 of $137,700. The OASDI tax rate for 2021 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2021 will be $8,853.60. There continues to be no limit on wages subject to the Medicare tax in 2021. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $8,853.60 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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Printable Version of 21-P-006
Informational Circular No. |
21-P-007 |
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Supersedes Informational Circular No: |
N/A |
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Effective Date: |
December 13, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
The Health Care Commission has approved a new vendor, The Hartford, for the administration of Voluntary Supplemental Insurance (VSP) beginning 1/1/2021.
VSP will continue to be a payroll deduction for the State of Kansas employees. Therefore, new benefit plans and deduction codes will be added to SHARP. The new VSP payroll deductions will be processed in SHARP effective for the payroll period beginning December 13, 2020, ending December 26, 2020, paid January 8, 2021.
The VSP benefit plan type, new benefit plans and deduction codes are:
PLAN TYPE | DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION | BENEFIT PLAN | BENEFIT PLAN DESCRIPTION |
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29 | HVAIAT | Hartford Supp Accident Ins AT | VolSuppIns | HVAIAT | Hartford Supp Accident Ins AT |
29 | HVCIP1 | Hartford Critical Ill P1 AT | VolSuppIns | HVCIP1 | Hartford Critical Ill P1 AT |
29 | HVCIP2 | Hartford Critical Ill P2 AT | VolSuppIns | HVCIP2 | Hartford Critical Ill P2 AT |
29 | HVHIP1 | Hartford Hosp Ind P1 AT | VolSuppIns | HVHIP1 | Hartford Hosp Ind P1 AT |
29 | HVHIP2 | Hartford Hosp Ind P2 AT | VolSuppIns | HVHIP2 | Hartford Hosp Ind P2 AT |
The VSP will be included on the State Employee Health Plan BERF file provided to SHARP and to each Regent payroll system to implement the new deduction codes via the existing payroll process. The first and second BERF file of the month will include the VSP deductions. Please note that VSP payroll deductions will continue to be offered on an after-tax basis. In addition, it is possible that various refunds/adjustments for 2020 MetLife VSP deduction corrections could also be included on some of the 2021 BERF files. However, other than these refunds/adjustments for 2020 MetLife deductions, employees cannot maintain payroll deductions for MetLife supplemental insurance plans after 12/31/2020.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction/benefit plans by November 13, 2020.
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Printable Version of 21-P-007
Informational Circular No. |
21-P-008 |
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Supersedes Informational Circular No: |
20-P-016 |
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Effective Date: |
November 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
Wednesday, November 11, 2020 (Veterans' Day), Thursday, November 26, 2020 and Friday, November 27, 2020 (Thanksgiving Holiday) are designated as officially observed holidays and therefore no batch jobs are scheduled for those nights.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. Please review carefully the information contained in this circular and in the attached partial calendar.
Wednesday, November 4, 2020
The second on-cycle preliminary pay calculation for the period ending October 31, 2020 will occur November 4, 2020.
Regents’ on-cycle files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 4, 2020. (These files would normally be due Thursday, November 5, 2020.)
Thursday, November 5, 2020
The third on-cycle preliminary pay calculation for the period ending October 31, 2020 will occur November 5, 2020.
Friday, November 6, 2020
Final pay confirmation for the on-cycle payroll for the period ending October 31, 2020 will occur November 6, 2020. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM. After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created. All deduction and tax data changes must be entered by 7:00 PM on November 6, 2020 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 13, 2020.
Regents’ Run A off-cycle payroll files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 6, 2020.
Sunday, November 8, 2020
Regents’ on-cycle payroll files for the period ending October 31, 2020 will be processed on this date.
Monday, November 9, 2020
The Run A off-cycle for the period ending October 31, 2020 will be processed November 9, 2020. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated November 13, 2020.
The Regents’ Run A off-cycle payroll files for the period ending October 31, 2020 will also be processed on this date.
Regents’ Run B off-cycle payroll files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 9, 2020.
Tuesday, November 10, 2019
The Run B off-cycle for the period ending October 31, 2020 will be processed November 10, 2020. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run B off-cycle will be dated November 16, 2020.
The Regents’ Run B off-cycle payroll files for the period ending October 31,2020 will also be processed on this date.
Wednesday, November 11, 2020
Veterans' Day Holiday
Time Administration runs hourly from 7:30 AM – 6:30 PM
Friday, November 13, 2020
Payday for the payroll period ending October 31, 2020.
Regents’ Run C off-cycle payroll files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 13, 2020.
Monday, November 16, 2020
The Run C off-cycle for the period ending October 31, 2020 will be processed November 16, 2020. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run C off-cycle will be dated November 19, 2020.
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 14, 2020 to the Department of Administration by 6:00 PM.
The Regents’ Run C off-cycle payroll files for the period ending October 31, 2020 will also be processed on this date.
Tuesday, November 17, 2020
Paysheets for the on-cycle payroll for the period ending November 14, 2020 will be created on Tuesday, November 17,
2020. For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 7:00 PM on November 17, 2020 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 14, 2020 will also occur November 17, 2020. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM. After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created.
NOTE: Terminations and Retirements must be entered by 7:00 PM on November 17, 2020 and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.
Wednesday, November 18, 2020
The second on-cycle preliminary pay calculation for the period ending November 14, 2020 will occur November 18, 2020
Regents’ on-cycle files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 18, 2020. (These files would normally be due Thursday, November 19, 2020.)
Thursday, November 19, 2020
The third on-cycle preliminary pay calculation for the period ending November 14, 2020 will occur November 19, 2020.
Friday, November 20, 2020
Final pay confirmation for the on-cycle payroll for the period ending November 14, 2020 will occur November 20, 2020. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM. After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created. All deduction and tax data changes must be entered by 7:00 PM on November 20, 2020 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 25, 2020.
Regents’ Run A off-cycle payroll files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 20, 2020.
Sunday, November 22, 2020
Regents’ on-cycle payroll files for the period ending November 14, 2020 will be processed on this date.
Monday, November 23, 2020
The Run A off-cycle for the period ending November 14, 2020 will be processed November 23, 2020. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated November 25, 2020.
The Regents’ Run A off-cycle payroll files for the period ending November 14, 2020 will also be processed on this date.
Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 14, 2020 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 25, 2020.)
Regents’ Run B off-cycle payroll files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 23, 2020.
Tuesday, November 24, 2020
The Run B off-cycle for the period ending November 14, 2020 will be processed November 24, 2020. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run B off-cycle will be dated December 1, 2020. (It would normally be Monday, November 30, 2020.)
The Regents’ Run B off-cycle payroll files for the period ending November 14, 2020 will also be processed on this date.
Wednesday, November 25, 2020
Payday for the payroll period ending November 14, 2020. (It would normally be Friday, November 27, 2020)
Regents’ Run C off-cycle payroll files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 25, 2020. (These files would normally be due Friday, November 27, 2020.)
Thursday, November 26, 2020
Thanksgiving Holiday
Time Administration runs hourly 7:30 AM – 6:30 PM
Friday, November 27, 2020
Thanksgiving Holiday
Time Administration runs hourly 7:30 AM – 6:30 PM
Beginning Sunday, November 29, 2020 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2020, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at Infolist
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Printable Version of 21-P-008
Informational Circular No. |
21-P-009 |
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Supersedes Informational Circular No: |
20-P-017 |
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Effective Date: |
January 1, 2021 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax-Sheltered Annuity (TSA) limits will change effective January 1, 2021 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit remains unchanged at $19,500 or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit remains unchanged at $39,000. The special catch-up limit is twice the general deferral limit and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) annual contribution limit remains at $6,500 for 2021 making the total unchanged at $26,000.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2021 is the lesser of $58,000 or 100% of compensation, increased from $57,000 for 2020.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $285,000 (for 2020) to $290,000 (for 2021). The $290,000 applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School for the Blind and School for the Deaf employees, the maximum contribution that can be made to the plan is $29,000 ($290,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $40,600 ($290,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $425,000 (for 2020) to $430,000 (for 2021). However, participants should note their maximum annual compensation limit will be $414,285.71, since the $414,285.71 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $58,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) remains unchanged at $19,500 for 2021. The age 50 or older catch-up provision remains unchanged at $6,500 for 2021. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($19,500 for 2021) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
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Printable Version of 21-P-009
Informational Circular No. |
21-P-010 |
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Supersedes Informational Circular No: |
N/A |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: December 2020 Payroll Processing and Updated December Processing Calendar |
As 2020 calendar year-end approaches, the Office of Accounts and Reports is making preparations for the issuance of calendar year 2020 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2020 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2021 balances; a corrected W-2 (Form W-2C) for 2020 will not be issued for the employee involved.
FINAL 2020 PAYCHECK
The final on-cycle paychecks for calendar year 2020 will be issued December 23, 2020. Payroll transactions for the December 23, 2020 on-cycle paychecks will be posted to SMART on Tuesday night, December 21, 2020.
Paychecks for the final off-cycle for calendar year 2020, which is the ‘C’ cycle for pay period ending December 12, 2020, will be issued on December 31, 2020 (generated from the off-cycle processed on December 28, 2020).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 7:00 p.m. on December 28, 2020 to enter paycheck adjustment requests for any 2020 paychecks. Adjustments processed in the December 28, 2020 off-cycle payroll will be reflected on the employee’s 2020 Form W-2. Please remember for SHARP employees that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2020 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 9, 2020. Please note that agencies can send DA-180 forms after December 9, 2020 for adjustments that are determined to be needed.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 9, 2020 on or before the December 28, 2020 off-cycle. However, if a large volume of DA-180 forms are received on or after December 9, 2020 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2020 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
With the exception of arrearages and refunds for OASDI and/or Medicare for tax years prior to 2021, adjustment requests entered after December 28, 2020 which are adjusting paychecks issued prior to January 1, 2021 will not result in a W-2C; the adjustment will update the employee’s 2021 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 28, 2020 will update the employee’s 2021 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 12, 2020, paid December 23, 2020 are due to the Department of Administration by 4:00 p.m. on December 16, 2020.
The Regent on-cycle for the pay period ending December 12, 2020, paid December 23, 2020 will be run on the night of December 20, 2020 (normally run on Monday, December 21, 2020).
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2020 Paycheck ReversalsRegent Institutions must submit all transmittals for 2020 paycheck reversals by 4:00 p.m. on Wednesday, December 23, 2020 in order to update the employee’s 2020 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2021 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
2020 Adjustments and Supplementals
In order to update employee balances for 2020, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Wednesday, December 23, 2020. The Run C off-cycle for the pay period ending December 12, 2020 generated on the night of Monday, December 28, 2020 will have a check issue date of December 31, 2020; all activity for this off-cycle will be reflected in the employees’ 2020 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2020 date.
2021 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2021, any adjustments or supplementals submitted after 4:00 p.m. on Monday, December 28, 2020, will be considered to be 2021 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2021 business, the employee’s 2021 balances will be updated. These files should contain a ‘C’ indicating current year business.
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2021, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2021 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2021 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2020 deadline for the December 28, 2020 Run C’s off-cycle payroll will not be processed until the April 12, 2021 off-cycle payroll. The deadline for submitting payroll interface files for the April 12, 2021 off-cycle is 4:00 p.m. on Friday, April 9, 2021.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2020 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 13, 2020 and December 26, 2020 in order for the last 2020 deduction to be taken on the paycheck issued December 23, 2020 if the deduction was taken over 26 pay periods. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2021, agencies can enter a new row effective-dated between December 13, 2020 and December 26, 2020 in order for the first deduction for United Way or Community Health Charities for 2021 to be taken on the January 8, 2021 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 12, 2021 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2021.
A batch process will run the night of December 23, 2020 to establish the fee portion (deduction code UTFXXX) of the 2021 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2021. This process will reduce the 2021 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2021 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 28, 2020 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2021 United Way/Community Health Charities deductions after December 23, 2020, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2020 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center (ESS). Agencies are encouraged to review the primary email address stored in ESS for employees by executing the Payroll Workcenter query titled ‘ESS Primary Email by Agency’ and contact employees to make updates when necessary due to an invalid/missing email address. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created to identify these employees. The worklist will be sent on December 1, 2020 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under Main Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2021. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2021 W-4s. Employees should submit new paper 2021 W-4s by December 30, 2020 to allow adequate time for processing. Employees must use the 2021 IRS W-4 Form to submit a request for exemption from withholding for calendar year 2021.
Agency personnel have until 7:00 p.m. on December 30, 2020 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2021.
The KPAY320 will be processed the evening of December 30, 2020. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2021 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2021 effective-dated row will update the employee’s marital status to ‘single’ with no adjustments.
For any 2021 paper W-4s (for employees claiming exemption from withholding) received between December 30, 2020 and January 2, 2021, agency personnel will need to enter the data with a January 2, 2021 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2021 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. SHARP employees are encouraged to use the Employee Self Service functionality to file their 2021 K-4’s.
Deduction Information
All deductions for calendar year 2021 are biweekly except:
-Group Health Insurance (Medical, Dental and Vision): semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
-Supplemental Voluntary Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Long Term Care Insurance: semi-monthly, deducted on the first and second pay dates of the month.
Working After Retirement KPERS
Effective 12/13/2020 all employees that currently have the KPERS Working After Retirement code AXD should be returned to code AC for the new calendar year. After the employee has earned $25,000 in the new calendar year you can change them to the AXD code effective with the next pay period after earnings reach $25,000.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle ‘C’ cut-off date of December 28, 2020. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2020 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 12, 2020 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2020 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 28, 2020. Please remember that these forms are only for those arrearages that are actively being collected.
On December 30, 2020, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 7:00 p.m. on January 5, 2021 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 5, 2021 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2020. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs are anticipated to be executed anytime between January 5, 2021 and January 10, 2021. Electronic W-2 forms through Employee Self Service are anticipated to be available on or before January 10, 2021. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2021. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2020 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at Infolist.
Printable Version of 21-P-010
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Informational Circular No. |
21-P-011 |
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Supersedes Informational Circular No: |
20-P-021 |
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Effective Date: |
January 1, 2021 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2021 per Publication 15-T including an Employer’s Worksheet to be used for computing federal tax withholding for wages paid on or after January 1, 2021. To use the attached IRS worksheet and tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance has remained at $4,300 for employees whose Form W-4 is from 2019 or earlier.
For employees whose Form W-4 is from 2020 or later, Step 2 on the Form W-4 determines which set of attached tables are used to compute federal tax withholding. The first set of tax tables (page 2, left side of the attachment) is used for employees with a 2019 or earlier Form W-4 or whose 2020 Form W-4 does not have the box in Step 2(c) checked. The second set of tax tables (page 2, right side of the attachment) is used for employees whose 2020 Form W-4 does have the box in Step 2(c) checked.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2021 has increased to $8,250 if the NRA employee has not submitted a Form W-4 for 2020 or later or $12,550 if the NRA employee has submitted a Form W-4 for 2020 or later or was first paid wages in 2020 or later. In addition, Regents should check IRS Publication 1494 for any changes to the amounts used when computing tax levies for garnishments. Publication 1494 for 2021 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf. Regents should be aware that the withholding on supplemental wages rate remains at 22% for 2021.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
SHARP employees are encouraged to use the Employee Self Service functionality beginning January 1, 2021 to file their 2021 W-4s. The 2021 Form W-4 has been published by the IRS and can be found on the Office of Accounts and Reports website at https://admin.ks.gov.production.premier.siteviz.com/for-state-agencies/agency-information-center/document-center.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2020 must file a new 8233 form for calendar year 2021 if they wish to continue their non-resident alien status. As a reminder, Regents institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Office of Accounts and Reports, Statewide Payroll, will make the necessary changes in the computation of withholding taxes for SHARP agencies. Regents institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: IRS Publication 15-T (2021)
Worksheet 1. Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems and 2021 Annual Percentage Method Tables
Printable Version of 21-P-011
Informational Circular No. |
21-P-012 |
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---|---|---|
Supersedes Informational Circular No: |
20-P-028 |
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Effective Date: |
January 1, 2021 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
The Internal Revenue Service (IRS) announced the standard mileage rate decreased to 56 cents beginning January 1, 2021 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 56 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle.
To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2021 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $51,100 for automobiles (including trucks and vans).
Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately-owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
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Printable Version of 21-P-012
Informational Circular No. |
21-P-013 |
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---|---|---|
Supersedes Informational Circular No: |
N/A |
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Effective Date: |
January 1, 2021 |
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Contact Name: Nancy Ruoff |
Ph: (785) 296-2853 |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: Three New Earnings Codes and Agency Guidance Concerning the Federal Families First Coronavirus Response Act (FFCRA) |
The following changes to employee leave policies were outlined in the COVID-19 Leave Effective January 1st guidelines issued on December 29, 2020 which stated:
“The provisions of the Families First Coronavirus Response Act (FFCRA) providing employees with paid leave for various reasons related to COVID-19 expire on December 31st and the bill that Congress passed last week did not provide for any additional leave. So, as of January 1st, the Federal government is not requiring employers to provide employees with paid leave for any circumstances related to the ongoing pandemic.”
Governor Kelly has decided that State agencies under her jurisdiction will continue to provide paid leave to employees for certain absences related to COVID-19.
Earnings Codes:
Three new earnings codes have been added to SHARP effective January 1, 2021 to administer the employee leave changes paid under the new policy guidance. Agencies should also refer to the Office of Personnel Services SHARP Infolist message issued January 5, 2021 containing guidance for entry of Time Reporting Codes used to record leave with these changes. The guidance is also posted at COVID-19 ADK (Childcare), ADQ (Quarantine), and ADR (High Risk) Instructions.
The following new earnings codes are effective for the pay period beginning December 27, 2020 through January 9, 2021 paid January 22, 2021.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
ADK | Leave-COVID Childcare | Lve-COVID | 01/01/2021 |
ADQ | Leave-COVID Quarantine | Lve-COVID | 01/01/2021 |
ADR | Leave-COVID High Risk | Lve-COVID | 01/01/2021 |
Payroll Calculations for ADQ:
ADQ replaces the existing ADC (Leave-Emergency Self) and CVF (Leave-Emergency Family) time reporting code/earnings code. This single leave code provides full paid leave at the employee’s existing rate of pay for all absences from work due to a quarantine, whether it is because of the employee testing positive, a household contact testing positive, or the employee being a close contact of someone who has tested positive, or for ongoing health issues following the mandatory quarantine.
- The state is covering this leave at 100%. Example, if Quarantined for one day, 8 hours of ADQ is recorded on the employee’s timesheet.
- There is no maximum to the number hours being recorded for this code (Usage can be more than 80 hours in totality).
Payroll Calculations for ADK:
ADK replaces the existing CVK (Leave-Emergency Child2) time reporting code/earnings code. Employees who are not able to work due to childcare issues related to COVID-19 will receive leave in the amount of 2/3 of their time until January 9, 2021 and then in the amount of 1/2 of their time effective January 10, 2021 and later at the employee’s existing rate of pay and can supplement the remainder with their own accrued leave, or leave without pay, if they so choose. Effective January 1, 2021 FMLA will no longer be tracked for leave taken using the ADK code.
- Effective January 1 – 9, 2021, refer to the new COVID-19 2/3 Leave Split (Valid thru 01-09-21) (located under the Time and Labor Documents section of the SHARP website at: https://admin.ks.gov.production.premier.siteviz.com/offices/office-of-personnel-services/services/sharp-team/documents-and-forms) as in cases where the quantity is not evenly split 1/3 2/3, the State is covering the higher amount: Example: 7.75 hours of leave taken is split like ADK 5.25 and VAC (or other leave or leave without pay) 2.5.
- Effective January 10, 2021 and beyond, refer to the new COVID-19 1/2 Leave Split (Eff 01-10-21) (located under the Time and Labor Documents section of the SHARP website at: https://admin.ks.gov.production.premier.siteviz.com/offices/office-of-personnel-services/services/sharp-team/documents-and-forms) as in cases where the quantity is not evenly split 50/50, the State is covering the higher amount: Example: 7.75 hours of leave taken is split like ADK 4 and VAC (or other leave or leave without pay) 3.75.
- There is no maximum to the number hours being recorded for this code.
Payroll Calculations for ADR:
ADR replaces the existing ADH (Leave-Emergency High Risk) time reporting code/earnings code. Employees considered at High Risk, will receive leave in the amount of 2/3 of their time until January 9, 2021 and then in the amount of 1/2 of their time effective January 10, 2021 and later, paid at the employee’s existing rate of pay, and can supplement the remainder with their own accrued leave, or leave without pay, if they so choose.
- Effective January 1 – 9, 2021, refer to the new COVID-19 2/3 Leave Split (Valid thru 01-09-21) (located under the Time and Labor Documents section of the SHARP website at: https://admin.ks.gov.production.premier.siteviz.com/offices/office-of-personnel-services/services/sharp-team/documents-and-forms) as in cases where the quantity is not evenly split 1/3 2/3, the State is covering the higher amount: Example: 7.75 hours of leave taken is split like ADR 5.25 and VAC (or other leave or leave without pay) 2.5.
- Effective January 10, 2021 and beyond, refer to the new COVID-19 1/2 Leave Split (Eff 01-10-21) (located under the Time and Labor Documents section of the SHARP website at: https://admin.ks.gov.production.premier.siteviz.com/offices/office-of-personnel-services/services/sharp-team/documents-and-forms) as in cases where the quantity is not evenly split 50/50, the State is covering the higher amount: Example: 7.75 hours of leave taken is split like ADR 4 and VAC (or other leave or leave without pay) 3.75.
The Office of Accounts and Reports, Payroll Systems Team, is responsible for adding the new earnings codes in the SHARP System. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems in accordance with guidance from the Office of Accounts and Reports and the Kansas Board of Regents.
Office of Accounts and Reports Contacts:
- Nancy Ruoff, Statewide Payroll Manager (785) 296.2853 Nancy.Ruoff@ks.gov
- Earl Brynds, Payroll Systems Team Lead (785) 296-5376 Earl.Brynds@ks.gov
Office of Personnel Services Time and Labor Contacts:
- Connie Guerrero, Deputy Director Connie.Guerrero@ks.gov
- Brent Smith, Human Resource Professional Brent.Smith@ks.gov
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Printable Version of 21-P-013
Informational Circular No. |
21-P-014 |
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---|---|---|
Supersedes Informational Circular No: |
20-P-022 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2020 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of January 5, 2021. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after February 5, 2021.
The KTXPR55 W-2 listing is sorted by 1) 3-digit agency, 2) alphabetically by last name/first name, and 3) by social security number (SSN). The report is totaled by 3-digit agency. The
’Total Number of Employees’ count from the Grand Totals page represents the total number of 2020 W-2's that were generated for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2020 W-2's.
In those instances where an employee worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2020. The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service (ESS). For those receiving a printed W-2, the form will be printed and sealed in an envelope. Per Federal reporting regulations, employees who have received Families First Coronavirus Response Act (FFCRA) leave in 2020 may have multiple pages to their W-2 to report the required FFCRA information. Please note that any employees who have retired or separated from state service continue to have access to consent and receive W-2 forms electronically via Employee Self Service for 18 months following separation. However, each retired/separated employee will have his/her consent reset to ensure generation of a mailed copy of his/her W-2 if the former employee does not re-consent/receive the W-2 electronically via Employee Self Service.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since most employees do not have a mailing address. The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.
All paper 2020 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2021. At that time, they will be destroyed.
In cases where the 2020 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2016 through 2020, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2: Consent, Reissue, Forms’ tile found in Employee Self Service, and then view and print the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. The Desk Aid that explains this procedure is W-2 Consent, Withdraw and Reissue Instructions which may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who have separated or retired from State service have access to consent to consent/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011, and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2020, 2019, 2018, 2017, or 2016) the reissued W-2 is needed. Duplicate W-2’s for 2016- 2019 are currently available, and duplicate W-2’s for 2020 will be available starting on Wednesday, February 3, 2021.
The Office of Accounts and Reports, Statewide Payroll will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Statewide Payroll by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Statewide Payroll. Agencies are requested to submit one blanket request for duplicate 2020 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2020 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Statewide Payroll at telephone number 785-296-7059.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that off-cycle paychecks dated December 31, 2020 are included in the 2020 W-2 amounts.
Printable Version of 21-P-014
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Informational Circular No. |
21-P-015 |
|
---|---|---|
Supersedes Informational Circular No: |
20-P-023 |
|
Effective Date: |
Immediately |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Statewide Payroll staff at the end of the calendar year, the 2021 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2021 W-2 production reports are scheduled to be generated:
Friday, April 2, 2021
Friday, April 30, 2021
Friday, May 28, 2021
Friday, June 25, 2021
Friday, July 23, 2021
Friday, August 20, 2021
Friday, September 17, 2021
Friday, October 15, 2021
Friday, November 12, 2021
Wednesday, November 24, 2021
Monday, December 6, 2021
Monday, December 13, 2021
Monday, December 20, 2021
Monday, December 27, 2021
Thursday, December 30, 2021 12:00 PM – DEADLINE FOR W-2 ADJUSTMENTS
Thursday, December 30, 2021
Tuesday, January 4, 2022 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 report in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. No action is required by the agency on the KTXPR55. Once the W-2’s for 2021 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. Please note that all W-2 adjustments need to be sent to payroll services no later than noon on Thursday, December 30, 2021 to ensure all W-2s are correct. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
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Printable Version of 21-P-015
Informational Circular No. |
21-P-016 |
|
---|---|---|
Supersedes Informational Circular No: |
20-P-027 |
|
Effective Date: |
Payroll Period Ending February 20, 2021 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: Organization Dues Change for ORG357 |
The organization dues for members of the AFSCME Council 61, Local 1357, will increase from $19.81 to $20.16 per biweekly payroll period. The new rate will become effective with the payroll period beginning February 7, 2021 and ending February 20, 2021, paid March 5, 2021.
The amounts listed above include the deduction amount (ORG357 deduction code) and the $0.06 service fee (ORF357 deduction code) added together. The new rate for deduction code ORG357 will increase from $19.75 to $20.10 and the fee (ORF357) will remain at $.06 (for a total deduction of $20.16 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
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Printable Version of 21-P-016
Informational Circular No. |
21-P-017 |
|
---|---|---|
Supersedes Informational Circular No: |
N/A |
|
Effective Date: |
April/May 2021 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: SHARP Upgrade and Impact on Payroll Processing Dates in April/May 2021 |
The Department of Administration is pleased to announce that the SHARP system is being upgraded to a newer version. The SHARP upgrade is scheduled to begin Saturday, May 8, 2021 and will continue through Monday, May 10, 2021. The upgraded version of SHARP will look slightly different than the current version. The current version uses a dark blue background, dark blue header and black font titles on the individual tiles on the home pages. The upgraded version will have a light blue background, black header and blue font titles on the individual tiles on the home pages. However, the functionality of the SHARP pages (the actions you take when you reach a certain page) is not changing.
Also, a change to the View Paycheck tile in Employee Self-Service that employees will notice is the addition of summary paycheck information added to the front of the tile for the employee’s most recent confirmed paycheck. The screen print below shows an example of how this tile will look.
This informational circular also covers the key dates and Payroll/Time and Labor and Job Data changes in SHARP as a result of the transition to the SHARP upgrade. On-cycle and off-cycle dates have been changed in late April/early May in order to accommodate the transition to the new version of SHARP. Please review carefully the information contained in this circular.
Due to the SHARP upgrade, scheduled to begin Saturday, May 8, 2021, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, April 30, 2021
Payday for the payroll period ending April 17, 2021.
First opportunity for Time and Labor interface agencies to submit time and labor (INF42/KAGYTL42) files for the period ending May 1, 2021 to the Department of Administration for processing by 6:00 PM on April 30, 2021. (These files would normally be due Monday, May 3, 2021.) Last opportunity to submit files will be noon on Monday, May 3, 2021.
Regents’ Run C off-cycle payroll files for the period ending April 17, 2021 must be received by the Department of Administration by 4:00 PM on April 30, 2021.
Monday, May 3, 2021
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending May 1, 2021 to the Department of Administration by noon to be processed at 12:30 p.m. on May 3, 2021.
NOTE: Terminations and Retirements must be entered by 7:00 PM on May 3, 2021 and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending May 1, 2021 will be created on Monday, May 3, 2021. (Paysheets would normally be created on Tuesday, May 4, 2021.) For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 7:00 PM on May 3, 2021 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending May 1, 2021 will also occur May 3, 2021. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM. After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending May 1, 2021.
The Run C off-cycle for the period ending April 17, 2021 will be processed May 3, 2021. SHARP agencies have until 7:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run C off-cycle will be dated May 6, 2021.
Tuesday, May 4, 2021
The second on-cycle preliminary pay calculation for the period ending May 1, 2021 will occur May 4, 2021.
Regents’ on-cycle files for the period ending May 1, 2021 must be received by the Department of Administration by 4:00 PM on May 4, 2021.
Wednesday, May 5, 2021
Final pay confirmation for the on-cycle payroll for the period ending May 1, 2021 will occur May 5, 2021. For SHARP agencies, all employees’ payable time must be approved, by 7:00 PM on May 5, 2021 in order for a paycheck record to be created/confirmed. All deduction and tax data changes must be entered by 7:00 PM on May 5, 2021 in order to be reflected in the final paycheck created for the employee.
Thursday, May 6, 2021
The Regents’ on-cycle payroll files for the period ending May 1, 2021 will be processed on this date. (This Regents’ on-cycle would normally be scheduled for Monday, May 10, 2021.)
Regents’ Run A off-cycle payroll files for the period ending May 1, 2021 must be received by the Department of Administration by 4:00 PM on May 6, 2021. (These files would normally be due Friday, May 7, 2021.)
Friday, May 7, 2021
The Run A off-cycle for the period ending May 1, 2021 will be processed May 7, 2021. (This off-cycle would normally be scheduled for Monday, May 10, 2021.) SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated May 14, 2021. NOTE: This off-cycle is the final payroll cycle run before the SHARP upgrade begins.
The Regents’ Run A off-cycle payroll files for the period ending May 1, 2021 will also be processed on this date.
Saturday, May 8, 2021
SHARP system and Employee Self Service shut down. SHARP upgrade begins.
Sunday, May 9, 2021
SHARP system and Employee Self Service closed. SHARP upgrade continues.
Monday, May 10, 2021
SHARP system and Employee Self Service open to core users only for validation.
No batch jobs processing.
Tuesday, May 11, 2021
SHARP system and Employee Self Service open to all users.
Beginning Tuesday, May 11, 2021 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the months of April/May 2021, which highlights key payroll processing activity for these months. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, Subscribe to Infolist here.
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Printable Version of 21-P-017
Informational Circular No. |
21-P-018 |
|
---|---|---|
Supersedes Informational Circular No: |
20-P037 |
|
Effective Date: |
Immediately |
|
Contact Name: |
Ph: |
Email: |
Approval: | Sunni Zentner (Original Signature on File) |
|
Summary: |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2022 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 12, 2021 will use fiscal year 2021 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 12, 2021 will use fiscal year 2022 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run B off-cycle (scheduled for June 23, 2021, paid June 28, 2021) for the pay period ending June 12, 2021 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2021 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 (BUD006) is scheduled to run during the batch cycle the night of June 20, 2021. In that process, a new row will be added to the Department Budget tables with an effective date of June 13, 2021 (beginning date of the first on-cycle payroll charged to FY2022). The Budget End Date will be June 11, 2022.
Agencies should not enter any rows in the Department Budget table with an effective date greater than or equal to June 13, 2021 until agency notification has been received that the BUD006 process ran successfully.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Thursday June 24, 2021 after the ‘B’ off-cycle process has been completed for the June 12, 2021 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 24. Agencies are encouraged to complete all FY2021 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 23, 2021, since the ‘B’ off-cycle is the last payroll cycle in SHARP for FY2021. Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 28, 2021 will be included with FY2022 transactions and will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 30, 2021.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period. Agencies should not change Job Data including the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling. Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
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Printable Version of 21-P-018
Informational Circular No. |
21-P-019 |
|
---|---|---|
Supersedes Informational Circular No: |
20-P-039 |
|
Effective Date: |
July 1, 2021 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Sunni Zentner (Original Signature on File) |
|
Summary: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of Accounts and Reports. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2022 will require entry into the SHARP system at the Payroll Homepage > Employee Payroll/Benefits Data Tile > Create Additional Pay for fringe benefit income. FY2022 rate changes for maintenance must be entered into SHARP by 7:00 pm on Tuesday June 29, 2021 in order to be reflected in the paychecks produced in the on-cycle pay calculation for the payroll period ending June 26, 2021 (paychecks dated July 9, 2021).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents are responsible for updating any rate changes into their payroll system.
Printable version of 21-P-019
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Informational Circular No. |
21-P-020 |
|
---|---|---|
Supersedes Informational Circular No: |
20-P-040 |
|
Effective Date: |
Pay Period Beginning June 13, 2021; Ending June 26, 2021; Paid July 9, 2021 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Sunni Zentner (Original Signature on File) |
|
Summary: Fiscal Year 2022-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 2022. The fiscal year 2022 rates will become effective with the on-cycle payroll period beginning June 13, 2021, ending June 26, 2021 and paid July 9, 2021. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2021.
For Fiscal Year 2022, the employer’s contribution to KPERS Death and Disability Insurance 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 April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; between April 1, 2012 and June 30, 2012; between April 1, 2013 and June 30, 2013; between March 25, 2016 and September 30, 2017; and between July 10, 2020 and June 25, 2021.
For Regent institutions, previous 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.
The Office of Accounts and Reports, 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.
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Printable Version of 21-P-020
|
Ph: |
Email: |
---|---|---|
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: |
Pursuant to the Tax Cuts and Jobs Act of 2017, employers must include moving expense reimbursements in employees’ wages. The new tax law suspends the exclusion for qualified moving expense reimbursements with two exceptions:
Exception 1: Members of the U.S. Armed Forces can still exclude qualified moving expense reimbursements from their income if:
- They are active duty
- They move pursuant to a military order and incident to a permanent change of station
- The move expenses would qualify as a deduction if the employee didn't get a reimbursement
Exception 2: Employers may exclude from wages any 2018 reimbursements to or payments on behalf of employees for moving expenses incurred for a move that took place prior to January 1, 2018, and which would have been deductible had they been paid prior to that date.
As a result of this tax law change, KPERS is advising that the employee moving expense reimbursements will now be subject to KPERS. Any applicable employee moving expense reimbursements processed for payments on and after July 1, 2019 using earnings codes MVT and MVG should now be subject to KPERS calculations.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above.
NTR:ewb
Printable version of 20-P-001
Informational Circular No. |
20-P-002 |
|
---|---|---|
Effective Date: |
Payroll Period Ending September 21, 2019 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: |
Washington State Senate Bill 5975 enacted in July 2017 establishes a Paid Family and Medical Leave (PFML) program in the State of Washington funded by premium payments comprised of both employee payroll deductions and employer contributions. Family leave represents 1/3 of the total premium, and Medical Leave represents 2/3 of the premium. Detailed information on the program is available on the State of Washington website at https://paidleave.wa.gov/.
For 2019 the total premium is 0.4% of gross wages, up to the annual Social Security taxable wage maximum ($132,900 in 2019). The total premium is split between an employee payroll deduction (63.33%) and employer contribution (36.67%). The State of Kansas does not currently meet the employment threshold for the employer contribution and is therefore only required to withhold the employee premium payroll deduction at this time.
To implement the Washington Paid Family and Medical Leave payroll deduction, 4 new tax classes will be added to SHARP. The PFML tax classes will be effective for the payroll period beginning September 8, 2019, ending September 21, 2019, paid on October 4, 2019.
The PFML tax classes are:
Tax Class |
Description |
---|---|
2 |
Medical Leave Insurance – ER |
3 |
Medical Leave Insurance – EE |
4 |
Family Leave Insurance – ER |
I |
Family Leave Insurance - EE |
In addition to the implementation of the new tax classes, a process for submitting the employee hours in accordance with the reporting requirements specified in the program documentation will be developed and provided to the Regent institutions in a separate communication.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above. Regent institutions should also submit test payroll file sets to Statewide Payroll for approval by no later than August 31, 2019.
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Printable version of 20-P-002
Informational Circular No. |
20-P-003 |
|
---|---|---|
Effective Date: |
Payroll Period Ending September 21, 2019 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: |
The District of Columbia Universal Paid Leave Act (the Act) of 2015 became effective on April 7, 2017. The Act established the Paid Family Leave program for employees living and working in the District of Columbia that is funded wholly by employer contributions. Detailed information on the program is available on the District of Columbia website at https://dcpaidfamilyleave.dc.gov/.
For 2019 the employer rate is 0.62% of gross wages and will be effective for the pay period beginning September 8, ending September 21, 2019, paid on October 4, 2019. The following tax class should be used in calculating and reporting the District of Columbia paid family leave employer contributions:
Tax Class |
Description |
---|---|
4 |
Family Leave Insurance – ER |
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system. Regent institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above. Regent institutions should also submit test payroll file sets to Statewide Payroll for approval by no later than August 31, 2019.
NTR:abe
Printable version of 20-P-003
Informational Circular No. |
20-P-004 |
|
---|---|---|
Effective Date: |
Payroll Period Ending September 7, 2019 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: |
Per notice by the Teamsters Local Union #696, additional deduction codes will be added for membership dues deductions for employees at the Juvenile Justice Authority. The existing deduction codes for Hourly Pay Rate ranges below $23.34 remain unchanged. Currently each organization dues deduction must be entered into SHARP as two separate deduction codes, one for the deduction (ORGXXX) and a corresponding (ORFXXX) row for the $.06 per deduction fee. These bi-weekly deductions of organization dues, effective August 25, 2019, are based on new hourly pay rate ranges as follows:
Hourly Pay Rate Range |
Bi-Weekly Deduction Amount (including the $.06 fee) |
Org. Dues Deduction Code for Local #696 |
Admin Fees Deduction Code for Local #696 |
---|---|---|---|
$23.34 - $23.77 |
$26.50 |
ORG638 |
ORF638 |
$23.78 - $24.21 |
$27.00 |
ORG639 |
ORF639 |
$24.22 - $24.66 |
$27.50 |
ORG640 |
ORF640 |
$24.67 - $25.10 |
$28.00 |
ORG641 |
ORF641 |
$25.11 - $25.55 |
$28.50 |
ORG643 |
ORF643 |
$25.56 - $25.99 |
$29.00 |
ORG644 |
ORF644 |
$26.00 - $26.44 |
$29.50 |
ORG645 |
ORF645 |
$26.45 - $26.88 |
$30.00 |
ORG646 |
ORF646 |
$26.89 - $27.33 |
$30.50 |
ORG647 |
ORF647 |
$27.34 – $27.77 |
$31.00 |
ORG648 |
ORF648 |
$27.78 - $28.21 |
$31.50 |
ORG649 |
ORF649 |
$28.22 - $28.66 |
$32.00 |
ORG650 |
ORF650 |
$28.67 - $29.10 |
$32.50 |
ORG651 |
ORF651 |
$29.11 - $29.55 |
$33.00 |
ORG652 |
ORF652 |
$29.56 - $29.99 |
$33.50 |
ORG653 |
ORF653 |
As a reminder, this organization is only available for membership to employees who work in the specific positions at the Juvenile Justice Authority.
The Office of the Chief Financial Officer, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay.
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Printable Version of 20-P-004
Informational Circular No. |
20-P-005 |
|
---|---|---|
Effective Date: |
Payroll Period Ending September 21, 2019 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: |
Per payroll informational circular 01-P-015 the State of Kansas established a Parking Compensation Reduction Program (PCRP) pursuant to Section 132 of the IRS code and K.S.A. 75-5535 and began offering pre-tax parking by payroll deduction in January 2001. As detailed in the circular, the savings from reduced employer FICA contributions were captured as an employer (ER) parking fee (associated with each pre-tax employee deduction) and distributed between the Department of Administration and Board of Regent institutions to offset the administrative costs of the program.
Since the initial implementation, significant changes have occurred in SOK parking and efficiencies have been gained in the payroll and administrative processes associated with the PCRP. As a result, the Department of Administration is eliminating the employer paid administrative parking fee effective with the pay period beginning September 8, 2019, ending September 21, 2019, paid on October 4, 2019.
The Office of the Chief Financial Officer, Payroll Systems Team, is responsible for making this change in the SHARP system. Regent institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above.
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Printable Version of 20-P-005
Informational Circular No. |
20-P-006 |
|
---|---|---|
Supersedes Informational Circular No: |
18-P-001 |
|
Effective Date: |
Payroll Period Ending September 21, 2019 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 8, 2019 and ending September 21, 2019, paid October 4, 2019 as follows:
Deduction Code |
Hourly Rate of Pay |
Bi-Weekly Salary |
Dues Deduction |
---|---|---|---|
ORG001 |
$ 13.99 or Less |
$ 1,119.20 or Less |
$13.02 |
ORG002 |
$ 14.00 – 14.99 |
$ 1,119.21 – 1,199.20 |
$13.81 |
ORG003 |
$ 15.00 – 15.99 |
$ 1,199.21 – 1,279.20 |
$14.85 |
ORG004 |
$ 16.00 – 16.99 |
$ 1,279.21 – 1,359.20 |
$18.64 |
ORG005 |
$ 17.00 – 17.99 |
$ 1,359.21 – 1,439.20 |
$19.74 |
ORG006 |
$ 18.00 or Greater |
$ 1,439.21 or Greater |
$20.83 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 20-P-006
Informational Circular No. |
20-P-007 |
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---|---|---|
Supersedes Informational Circular No: |
19-P-001 |
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Effective Date: |
Payroll Period Ending August 24, 2019 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $31.61 to $32.11 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 11, 2019 and ending August 24, 2019, paid September 6, 2019.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $31.55 to $32.05 and the fee (ORF030) will remain at $.06 (for a total deduction of $32.11 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 20-P-007
Informational Circular No. |
20-P-008 |
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---|---|---|
Effective Date: |
Immediately |
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Contact Name: |
Ph: |
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Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
As a result of the implementation of state paid family medical leave programs, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code was made effective in SMART as of January 1, 2019 and is eligible to be used starting immediately.
Account Code | Description | Short Description |
---|---|---|
517700 | ER CONTBTN PD FAM/MED LV ASMNT | ER CONTBTN |
This account code is to be used to record employer contributions for state paid family and medical leave programs that are being implemented under new legislation in various states. At this time, the State of Kansas is subject to contributions for employees in the State of Washington and the District of Columbia. Other states may implement similar programs in the future.
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Printable Version of 20-P-008
Informational Circular No. |
20-P-009 |
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---|---|---|
Effective Date: |
Month Day, Year |
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Contact Name: |
Ph: |
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Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
The Health Care Commission (HCC) has elected to change the coverage end date for terminating members from the last day of employment to the last day of the month in which the member terminates employment. This change in coverage end date will affect all State Employee Health Plan (SEHP) benefits in which a member is enrolled, including Health Savings Accounts and Flexible Spending Accounts.
Per SEHP, effective October 1, 2019, if a member terminates employment on the 1st of the month, benefits also terminate on the 1st of the month. The SEHP Membership Administration Portal (MAP) will calculate the appropriate premiums for that day of coverage. HSA & FSA contributions will be sent and should be taken on the first check of the month for a member terminating on the 1st of the month. If a member terminates on the 2nd of the month or later, benefits will terminate at the end of the month. The HCC’s expectation is that member deductions on the second check of a month will be processed as sent on the MAP benefit election return file (BERF).
As part of this change, SEHP will be changing the timing of vision, voluntary supplemental insurance, and Long-Term Care (LTC) payroll deductions from once a month to twice a month. Starting with the payroll period beginning September 8, 2019 and ending September 21, 2019, paid on October 4, 2019 the premiums for vision, voluntary supplemental insurance, and LTC will be deducted semi-monthly on the first two paychecks of the month.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems by the payroll period noted above.
Questions regarding the system set-up/interfaces for these payroll deductions can be directed to Earl Brynds (Earl.Brynds@ks.gov or 785.296.5376).
Questions regarding the vision benefit should be directed to Pete Nagurny (pete.nagurny@ks.gov or 785.296.0185).
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Printable Version of 20-P-009
Informational Circular No. |
20-P-010 |
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---|---|---|
Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
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Summary: |
Kansas law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). This informational circular is being issued to clarify information previously issued and to assist agencies in properly establishing UCI tax coverage for employees.
Attached is a listing of SHARP job codes that are exempt from UCI per state statutes. This list is not intended to be all-inclusive and addresses those exemptions most applicable to State of Kansas employees.
SHARP and Regent agency personnel are responsible for ensuring that employee tax data is accurate. It is strongly recommended that agencies ensure all individuals responsible for establishing employee tax data review and understand this information and use the attached listing of exempt UCI jobcodes for reference when entering employee tax data. If agencies have questions regarding UCI exemptions please contact Statewide Payroll.
An employee is subject to UCI and, for SHARP agencies, the Employee Tax Data/State Tax Data 2 page in SHARP should have the ‘Exempt From SUT’ checkbox clicked ‘OFF’ if either of the following exists:
- The employee is in a position/jobcode that is subject to UCI per state statute.
- The employee is concurrently employed in more than one position/jobcode, and at least one of those positions/jobcodes is subject to UCI. In this case, UCI tax must be calculated and paid on all wages for the employee, including positions that are not normally subject to UCI such as board member pay.
An employee is exempt from UCI and, for SHARP agencies, the Employee Tax Data/State Tax Data 2 page in SHARP should have the ‘Exempt From SUT’ checkbox clicked ‘ON’ if the following exists:
- The employee is in a position/jobcode that is exempt from UCI per state statute. See attached reference listing of current SHARP job codes and other statutorily exempt types of employment that are exempt from UCI.
Statewide Payroll will be implementing a new payroll error message for SHARP that will turn off the employee’s paysheet if the employee has one of the exempt job codes but is not set up as exempt from UCI.
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Exempt Job Codes
Printable Version of 20-P-010
Informational Circular No. 20-P-011 |
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---|---|---|
Supersedes Informational Circular No: |
19-P-003 |
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Effective Date: |
Calendar 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2020
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2020. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 5:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of the Chief Financial Officer must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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2020 On-Cycle
2020 Off-Cycle
Printable Version 20-P-011
Informational Circular No. 20-P-012 |
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---|---|---|
Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Addition of DA-184 Authorization for Direct Deposit of Employee Pay and/or Travel and Expense form to Employee Self Service
As a result of the continued increase in reported fraudulent requests to update direct deposit information, the DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel and Expense form has been updated and moved to Employee Self Service (ESS). This change limits access to the DA-184 form to active State of Kansas employees using the secure ESS portal.
Effective immediately, the Rev. 09-2019 version of the form is the only authorized form that may be accepted by an agency to authorize changes to employee direct deposit information. The revised form reflects updates to the required agency certification section and a new revision date of 09-2019. All previous versions of the DA-184 form are in the process of being removed from the public website. Agency HR/Payroll/Fiscal offices with blank, paper copies of previous versions of the DA-184 form should shred the blank forms and access/print a new copy of the form from Employee Self Service to assist new employees with enrolling for direct deposit.
To access the revised form in Employee Self Service, click on the W4, K4, & Direct Deposit Forms Tile > Direct Deposit Form > View Attachment. The blank form can be printed and filled in by hand or the form can be completed online as a fillable .pdf form and printed. The completed form must be signed by hand by the requesting employee and submitted to the employee’s agency HR/Payroll/Fiscal office for processing. Please note that electronic signatures are not accepted on the form.
All agency HR/Payroll/Fiscal staff are reminded that it is the agency’s responsibility to complete the DA-184 Section B: Agency Certification for all submitted DA-184 changes requested. Failure to verify the requested change, directly with the employee either in person or via a known phone number for the employee, carries a very high risk of entering a fraudulent direct deposit change which will result in a loss of funds to the agency if net pay or expense reimbursement is mis-directed and the funds are not recoverable.
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Printable Version of 20-P-012
Informational Circular No. 20-P-013 |
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---|---|---|
Effective Date: |
Month Day, Year |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Addition of New Error Message on PAY011 Payroll Error Messages Report for Job Codes Exempt from State Unemployment Taxes
Kansas' law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). In SHARP these exemptions are determined by the employee’s job code. To see a listing of SHARP job codes exempt from UCI see payroll informational circular 20-P-010. To ensure UCI is correctly calculated on employee paychecks in SHARP, a new payroll edit has been added to the PAY011 Payroll Error Messages Report beginning with pay period ending October 5, 2019.
The new payroll error message (number 100010) will appear if the employee job code is equal to an exempt job code and the employee’s state tax data page field ‘Exempt from SUT’ is not checked on (equal to ‘Y’). If this message appears on the report, the employee’s paysheet has been turned off, and no paycheck will be generated for the employee until the state tax data page is updated. The message will display as “The job code for the employee is exempt from SUT. The employee does not have the Exempt From SUT box checked on the State Tax Data page.”
If an employee is actively employed in Job Data on more than one position, and at least one of those positions is subject to UCI, the employee is subject to UCI on all positions and the Employee Tax Data ‘Exempt from SUT’ box should not be checked. UCI tax will be calculated and paid on all wages for that employee including positions that are not normally subject to UCI, such as board member pay.
Agency personnel are responsible for ensuring that employees are exempted from UCI as appropriate. Exemptions from UCI are entered in SHARP under Employee Tax Data (path: Payroll Homepage > Employee Payroll/Benefits Data Tile > Employee Tax Information > Update Employee Tax Data) on the State Tax Data page by clicking "on" the 'Exempt From SUT' checkbox.
If an employee is in a position that is exempt from UCI:
If an employee is in one or more positions and at least one of the positions is subject to UCI:
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Printable version of 20-P-013
Informational Circular No. 20-P-014 |
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---|---|---|
Supersedes Informational Circular No: |
19-P-006 |
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Effective Date: |
January 1, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Social Security Wage Base Increase to $137,700 effective January 1, 2020
The Social Security wage base for OASDI will be $137,700 for calendar year 2020. This is a $4,800 increase from the wage base of calendar year 2019 of $132,900. The OASDI tax rate for 2020 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2020 will be $8,537.40. There continues to be no limit on wages subject to the Medicare tax in 2020. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $8,537.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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Printable Version of 20-P-014
Informational Circular No. 20-P-015 |
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---|---|---|
Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Implementation of new daily process to identify SMART AP vouchers for current active employees.
The IRS and U.S. Department of Labor require that workers be correctly classified as an employee or an independent contractor. All agencies of the State of Kansas operate as one employer under a single Federal Employer Identification Number (FEIN) for the purposes of compliance with federal regulations and reporting, including application of U.S. Dept. of Labor and IRS rules. Due to that fact, a state employee that performs work at a 2nd state agency that is similar in nature to the type of work performed at the individual’s employing agency cannot be considered an independent contractor and must be compensated through payroll for the work performed at the 2nd agency.
Examples of work completed for multiple agencies that would be employment wages payable through payroll could include:
- Computer Programmer/Web Designer at Agency #1 maintaining a website for Agency #2
- Graphic Designer for Agency #1 designing materials for a conference for Agency #2
- Instructor at Agency #1 lecturing at Agency #2
To assist in ensuring appropriate worker classification for State of Kansas employees and independent contractors, a new daily process has been implemented to identify select SMART AP vouchers that are payable to an individual who is an active employee in SHARP. All SMART vouchers matched to an active SHARP employee are placed on hold for a wage determination review by the Office of Accounts and Reports (A&R) in order to determine if the SMART payment represents W-2 reportable wages that must be paid through payroll.
If a SMART payment is placed on hold for review, the employing agency and the agency requesting the SMART payment may be contacted to provide additional details regarding the employee’s job duties and/or work performed for the agency. Agencies are requested to respond timely to any inquiry for information related to a wage determination review. If the review identifies that the SMART payment is appropriate, the voucher will be released for payment. If the SMART payment should be paid through payroll, staff from the Office of Accounts and Reports will work with the agencies involved to ensure appropriate processing of the wage payment.
Questions regarding worker classification may be directed to Danelle Harsin in the Office of Personnel Services at (785) 296-4383 or via e-mail at Danelle.Harsin@ks.gov. Questions regarding payments in SHARP/SMART impacted by the new review process may be directed to the A&R Contact, Amanda Entress, at (785) 296-3887 or via e-mail at Amanda.Entress@ks.gov.
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Printable Version of 20-P-015
Informational Circular No. 20-P-016 |
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---|---|---|
Supersedes Informational Circular No: |
19-P-007 |
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Effective Date: |
November 2019 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Payroll processing schedule changes due to the November 2019 holidays.
Monday, November 11, 2019 (Veterans' Day), Thursday, November 28, 2019 and Friday, November 29, 2019 (Thanksgiving Holiday) are designated as officially observed holidays and therefore no batch jobs are scheduled for those nights.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. Please review carefully the information contained in this circular and in the attached partial calendar.
Wednesday, November 6, 2019
The second on-cycle preliminary pay calculation for the period ending November 2, 2019 will occur November 6, 2019.
Regents’ on-cycle files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 6, 2019. (These files would normally be due Thursday, November 7, 2019.)
Thursday, November 7, 2019
The third on-cycle preliminary pay calculation for the period ending November 2, 2019 will occur November 7, 2019.
Regents’ Run A off-cycle payroll files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 7, 2019. (These files would normally be due Friday, November 8, 2019.)
Friday, November 8, 2019
Final pay confirmation for the on-cycle payroll for the period ending November 2, 2019 will occur November 8, 2019. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM. After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 8, 2019 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 15, 2019.
Sunday, November 10, 2019
Regents’ on-cycle payroll files for the period ending November 2, 2019 will be processed on this date.
Monday, November 11, 2019
Veterans' Day Holiday
Time Administration runs hourly from 7:30 AM – 5:30 PM
Tuesday, November 12, 2019
The Run A off-cycle for the period ending November 2, 2019 will be processed November 12, 2019. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 15, 2019.
The Regents’ Run A off-cycle payroll files for the period ending November 2, 2019 will also be processed on this date.
Regents’ Run B off-cycle payroll files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 12, 2019.
Wednesday, November 13, 2019
The Run B off-cycle for the period ending November 2, 2019 will be processed November 13, 2019. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 18, 2019.
The Regents’ Run B off-cycle payroll files for the period ending November 2, 2019 will also be processed on this date.
Friday, November 15, 2019
Payday for the payroll period ending November 2, 2019.
Regents’ Run C off-cycle payroll files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 15, 2019.
Monday, November 18, 2019
The Run C off-cycle for the period ending November 2, 2019 will be processed November 18, 2019. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 21, 2019.
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 16, 2019 to the Department of Administration by 5:00 PM.
The Regents’ Run C off-cycle payroll files for the period ending November 2, 2019 will also be processed on this date.
Tuesday, November 19, 2019
Paysheets for the on-cycle payroll for the period ending November 16, 2019 will be created on Tuesday, November 19, 2019. For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 19, 2018 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 16, 2019 will also occur November 19, 2019. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM. After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 19, 2019 and reported time must be submitted (and approved if applicable) by 5:30 PM in order for leave payouts to be calculated correctly.
Wednesday, November 20, 2019
The second on-cycle preliminary pay calculation for the period ending November 16, 2019 will occur November 20, 2019.
Regents’ on-cycle files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 20, 2019. (These files would normally be due Thursday, November 21, 2019.)
Thursday, November 21, 2019
The third on-cycle preliminary pay calculation for the period ending November 16, 2019 will occur November 21, 2019.
Regents’ Run A off-cycle payroll files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 21, 2019. (These files would normally be due Friday, November 22, 2019.)
Friday, November 22, 2019
Final pay confirmation for the on-cycle payroll for the period ending November 16, 2019 will occur November 22, 2019. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM. After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 22, 2019 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 27, 2019.
Sunday, November 24, 2019
Regents’ on-cycle payroll files for the period ending November 16, 2019 will be processed on this date.
Monday, November 25, 2019
The Run A off-cycle for the period ending November 16, 2019 will be processed November 25, 2019. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 27, 2019.
The Regents’ Run A off-cycle payroll files for the period ending November 16, 2019 will also be processed on this date.
Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 16, 2019 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 27, 2019.)
Tuesday, November 26, 2019
Regents’ Run B off-cycle payroll files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 26, 2019.
Wednesday, November 27, 2019
Payday for the payroll period ending November 16, 2019. (It would normally be Friday, November 29, 2019)
The Run B off-cycle for the period ending November 16, 2019 will be processed November 27, 2019. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated December 4, 2019. (It would normally be Monday, December 2, 2019.)
Regents’ Run C off-cycle payroll files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 27, 2019. (These files would normally be due Friday, November 29, 2019.)
Thursday, November 28, 2019
Thanksgiving Holiday
Time Administration runs hourly 7:30 AM – 5:30 PM
Friday, November 29, 2019
Thanksgiving Holiday
Time Administration runs hourly 7:30 AM – 5:30 PM
Beginning Monday, December 2, 2019 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2019, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at Informational Circulars.
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November Calendar
Printable Version of 20-P-016
Informational Circular No. 20-P-017 |
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---|---|---|
Supersedes Informational Circular No: |
19-P-010 |
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Effective Date: |
January 1, 2020 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: 2020 Deferred Compensation and Tax-Sheltered Annuity Limits
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax-Sheltered Annuity (TSA) limits will change effective January 1, 2020 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to $19,500 (up from $19,000 in 2019) or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $39,000 (up from $38,000 in 2019). The special catch-up limit is twice the general deferral limit and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) annual contribution limit increased to $6,500 for 2020 making the total $26,000. The provision for 2019 was $6,000 making the total for 2019 $25,000.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2020 is the lesser of $57,000 or 100% of compensation, increased from $56,000 for 2019.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $280,000 (for 2019) to $285,000 (for 2020). The $285,000 applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School for the Blind and School for the Deaf employees, the maximum contribution that can be made to the plan is $28,500 ($285,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $39,900 ($285,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $415,000 (for 2019) to $425,000 (for 2020). However, participants should note their maximum annual compensation limit will be $407,142.86, since the $407,142.86 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $57,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) increases to $19,500 for 2020 (up from $19,000 in 2019). The age 50 or older catch-up provision increases to $6,500 for 2020 (up from $6,000 in 2019). Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($19,500 for 2020) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
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Printable version of 20-P-017
Informational Circular No. 20-P-018 |
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Effective Date: |
January 1, 2020 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Changes to IRS Form W-4 Employee’s Withholding Allowance Certificate for Calendar Year 2020 for Claiming Exemption.
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 2, 2019 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under the ‘My System Profile’ tile in Employee Self Service. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.
For agency payroll/human resource staff, a worklist will be created to identify these employees. The worklist will be sent on December 2, 2019 to staff designated as the Agency Payroll Administrator through the SHARP security roles. The worklist can be accessed two ways in SHARP for those with this role: from the Payroll Home page, click on the Payroll Processing Tile, then click on Worklist on the left side of the screen, or click on the NavBar icon on the top right side of the screen, then click on the Navigator icon and then the Worklist menu item. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2020. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
Due to changes to the Federal W-4 form as a result of the implementation of the Tax Cuts and Jobs Act of 2018, updates are required to the SHARP system. The target date for implementation of the required changes to SHARP and Employee Self Service is December 30, 2019. Therefore, any employee that wants to claim exempt status for 2020 prior to December 30, 2019, will need to submit a paper 2020 W-4 form to agency personnel once the IRS issues the finalized copy of the 2020 Federal W-4 form. Agency personnel have until 6:00 p.m. on January 3, 2020 to enter all paper W-4s into the system, using an effective dated row of January 2, 2020. Additional instructions for entering the new 2020 W-4 form in SHARP will be made available once the required changes are implemented in the SHARP system.
The KPAY320 will be processed the evening of December 29, 2019. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2020 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2020 effective-dated row will update the employee’s marital status to ‘single’ with no other adjustments.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. SHARP employees are encouraged to use the Employee Self Service functionality to file their 2020 K-4’s.
The 2020 Form W-4 will be posted to the Office of the Accounts and Report’s website as soon as it is available from the IRS.
The KPAY320 will also enter a new effective-dated row in the SHARP federal tax data records on December 29, 2019 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2020. The new tax data row will be dated January 1, 2020. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2020 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
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Printable Version of 20-P-018
Informational Circular No. 20-P-019 |
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Effective Date: |
Immediately |
|
Contact Name:Joyce Dickerson |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: December 2019 Payroll Processing and Updated December Processing Calendar
As 2019 calendar year-end approaches, the Office of Accounts and Reports is making preparations for the issuance of calendar year 2019 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2019 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2020 balances; a corrected W-2 (Form W-2C) for 2019 will not be issued for the employee involved.
FINAL 2019 PAYCHECK
The final on-cycle paychecks for calendar year 2019 will be issued December 27, 2019. Payroll transactions for the December 27, 2019 on-cycle paychecks will be posted to SMART on Tuesday night, December 24, 2019.
The final off-cycle, which is the ‘B’ cycle for pay period
ending December 14, 2019, paychecks for calendar year 2019 will be issued on December 30, 2019 (generated from the off-cycle processed on December 24, 2019).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 24, 2019 to enter paycheck adjustment requests for any 2019 paychecks. Adjustments processed in the December 24, 2019 off-cycle payroll will be reflected on the employee’s 2019 Form W-2. Please remember for SHARP employees only that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2019 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 11, 2019. Please note that agencies can send DA-180 forms after December 11, 2019 for adjustments that are determined to be needed.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 11, 2019 on or before the December 24, 2019 off-cycle. However, if a large volume of DA-180 forms is received on or after December 11, 2019 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2019 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
With the exception of arrearages and refunds for OASDI and/or Medicare for tax years prior to 2020, adjustment requests entered after December 24, 2019 which are adjusting paychecks issued prior to January 1, 2020 will not result in a W-2C; the adjustment will update the employee’s 2020 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 24, 2019 will update the employee’s 2020 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 14, 2019, paid December 27, 2019 are due to the Department of Administration by 4:00 p.m. on December 18, 2019.
Regent on-cycle for the pay period ending December 14, 2019, paid December 27, 2019 will be run on the night of December 22, 2019 (normally run on Monday, December 23, 2019).
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2019 Paycheck Reversals
Regent Institutions must submit all transmittals for 2019 paycheck reversals by 4:00 p.m. on Monday, December 23, 2019 in order to update the employee’s 2019 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2020 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
2019 Adjustments and Supplementals
In order to update employee balances for 2019, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Monday, December 23, 2019. The Run B off-cycle for the pay period ending December 14, 2019 generated on the night of Tuesday, December 24, 2019 will have a check issue date of December 30, 2019; all activity for this off-cycle will be reflected in the employees’ 2019 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2019 date.
2020 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2020, any adjustments or supplementals submitted after 4:00 p.m. on Monday, December 23, 2019, will be considered to be 2020 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2020 business, the employee’s 2020 balances will be updated. These files should contain a ‘C’ indicating current year business.
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2020, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2020 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2020 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2019 deadline for the December 24, 2019 Run B’s off-cycle payroll will not be processed until the April 13, 2020 off-cycle payroll. The deadline for submitting payroll interface files for the April 13, 2020 off-cycle is 4:00 p.m. on Friday, April 10, 2020.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2019 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 15, 2019 and December 28, 2019 in order for the last 2019 deduction to be taken on the paycheck issued December 27, 2019 if the deduction was taken over 26 pay periods. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2020, agencies can enter a new row effective-dated between December 15, 2019 and December 28, 2019 in order for the first deduction for United Way or Community Health Charities for 2020 to be taken on the January 10, 2020 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 13, 2020 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2020.
A batch process will run the night of December 27, 2019 to establish the fee portion (deduction code UTFXXX) of the 2020 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2020. This process will reduce the 2020 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2020 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 30, 2019 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2020 United Way/Community Health Charities deductions after December 27, 2019, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Please see payroll informational circular 20-P-018 issued on November 25, 2019 for tax information related to year end.
Deduction Information
All deductions for calendar year 2020 are biweekly except:
-Group Health Insurance (Medical, Dental and Vision): semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
-Supplemental Voluntary Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Long Term Care Insurance: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle B cut-off date of December 24, 2019. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2019 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 14, 2019 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2019 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 27, 2019. Please remember that these forms are only for those arrearages that are actively being collected.
On December 29, 2019, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on January 2, 2020 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 2, 2020 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2019. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between January 2, 2020 and January 10, 2020. Electronic W-2 forms through Employee Self Service will be available on or before January 10, 2020. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2020. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2019 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at Informational Circulars.
Attachment
Printable version of 20-P-019
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Informational Circular No. 20-P-020 |
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Effective Date: |
Immediately |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: IRS Releases Form W-4 Employee’s Withholding Allowance Certificate for Calendar Year 2020.
The 2020 IRS Form W-4, Employee’s Withholding Certificate has been released and is immediately available in paper form at the IRS website at https://www.irs.gov/pub/irs-pdf/fw4.pdf and at the Office of Accounts and Report’s website at Document Center.
The 2020 Form W-4 reflects changes resulting from the implementation of the Tax Cuts and Jobs Act of 2018 and uses the employee’s income tax filing status, dependents, and other adjustments to determine the federal withholding liability. Due to the changes to the form, updates are required to the SHARP system. The new form is scheduled to be available in Employee Self Service on January 1, 2020.
With the exception of employees claiming exemption from withholding for 2020, current employees are NOT required to complete the new 2020 W-4 form at this time but may elect to submit a new form. If an employee does not elect to submit a new form, payroll tax withholding in 2020 will continue to be based on the most recent W-4 form submitted. Effective January 1, 2020 all newly hired employees or existing employees who want to change their federal tax withholding will be required to use the new W-4 form.
As noted in Informational Circular 20-P-018, IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming years.
To ensure exemption from withholding is effective with the first paycheck in 2020, employees should claim exempt status using one of the following methods:
- Claim ‘Exempt’ status via Employee Self Service between January 1, 2020 and January 3, 2020 at 6:00 PM
- Submit a paper 2020 W-4 form to agency personnel, completing Steps 1a, 1b, and 5 and writing the word “EXEMPT” in the space below line 4(c).The employee should not complete any other steps on the 2020 W-4 if claiming exemption.
Agency personnel have until 6:00 p.m. on January 3, 2020 to enter all paper W-4s into the system, using an effective dated row of January 2, 2020.
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Printable Version of 20-P-020
Informational Circular No. 20-P-021 |
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Supersedes Informational Circular No: |
19-P-013 |
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Effective Date: |
January 1, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2020
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2020 per Publication 15-T including an Employer’s Worksheet to be used for computing federal tax withholding for wages paid on or after January 1, 2020. To use the attached IRS worksheet and tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance has increased to $4,300 for employees whose Form W-4 is from 2019 or earlier.
For employees whose Form W-4 is from 2020 or later, Step 2 on the Form W-4 determines which set of attached tables are used to compute federal tax withholding. The first set of tax tables (page 2 on the attachment) are used for employees with a 2019 or earlier Form W-4 or whose 2020 Form W-4 does not have the box in Step 2(c) checked. The second set of tax tables (page 3 on the attachment) are used for employees whose 2020 Form W-4 does have the box in Step 2(c) checked.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2020 has increased to $8,100 if the NRA employee has not submitted a Form W-4 for 2020 or later or $12,400 if the NRA employee has submitted a Form W-4 for 2020 or later or was first paid wages in 2020 or later. In addition, Regents should check IRS Publication 1494 for any changes to the amounts used when computing tax levies for garnishments. Publication 1494 for 2020 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf. Regents should be aware that the withholding on supplemental wages rate remains at 22% for 2020.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
SHARP employees are encouraged to use the Employee Self Service functionality beginning January 1, 2020 to file their 2020 W-4s. The 2020 Form W-4 has been published by the IRS and can be found on the Office of Accounts and Reports website at the Document Center.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2019 must file a new 8233 form for calendar year 2020 if they wish to continue their non-resident alien status. As a reminder, Regents institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Office of Accounts and Reports, Payroll Services, will make the necessary changes in the computation of withholding taxes for SHARP agencies. Regents institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: IRS Publication 15-T (2020) Worksheet 1. Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems and 2020 Annual Percentage Method Tables
Printable Version of 20-P-021
Informational Circular No. 20-P-022 |
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Supersedes Informational Circular No: |
19-P-015 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Information Pertaining to Employee 2019 W-2 Statements
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2019 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of January 3, 2020. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after February 3, 2020.
The KTXPR55 W-2 listing is sorted by 1) 3-digit agency, 2) alphabetically by last name/first name, and 3) by social security number (SSN). The report is totaled by 3-digit agency. The ’Total Number of Employees’ count from the Grand Totals page represents the total number of 2019 W-2's that were generated for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2019 W-2's.
In those instances where an employee worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2019. The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service (ESS). For those receiving a printed W-2, the form will be printed and sealed in an envelope. Please note that any employees who have retired or separated from state service continue to have access to consent and receive W-2 forms electronically via Employee Self Service for 18 months following separation. However, each retired/separated employee will have his/her consent reset to ensure generation of a mailed copy of his/her W-2 if the former employee does not re-consent/receive the W-2 electronically via Employee Self Service.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since most employees do not have a mailing address. The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.
All paper 2019 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2020. At that time, they will be destroyed.
In cases where the 2019 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2015 through 2019, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2: Consent, Reissue, Forms’ tile found in Employee Self Service, and then view and print the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. The Desk Aid that explains this procedure is W-2 Consent, Withdraw and Reissue Instructions which may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who have separated or retired from State service have access to consent to consent/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011, and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2019, 2018, 2017, 2016, or 2015) the reissued W-2 is needed. Duplicate W-2’s for 2015- 2018 are currently available, and duplicate W-2’s for 2019 will be available starting on Wednesday, February 5, 2020.
The Office of Accounts and Reports, Statewide Payroll will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Statewide Payroll by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Statewide Payroll. Agencies are requested to submit one blanket request for duplicate 2019 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2019 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Statewide Payroll at telephone number 785-296-7059.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that off-cycle paychecks dated December 30, 2019 are included in the 2019 W-2 amounts.
Attachment A
Attachment B
Printable Version of 20-P-022
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Informational Circular No. 20-P-023 |
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Supersedes Informational Circular No: |
19-P-016 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: 2020 W-2 Production Report Schedule
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2020 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2020 W-2 production reports are scheduled to be generated:
Friday, April 17, 2020
Friday, May 15, 2020
Friday, June 12, 2020
Friday, July 10, 2020
Friday, August 7, 2020
Friday, September 4, 2020
Friday, October 2, 2020
Friday, October 30, 2020
Friday, November 13, 2020
Wednesday, November 25, 2020
Monday, December 7, 2020
Monday, December 14, 2020
Monday, December 21, 2020
Monday, December 28, 2020
Thursday, December 31, 2020 12:00 PM – DEADLINE FOR W-2 ADJUSTMENTS
Thursday, December 31, 2020
Tuesday, January 5, 2021 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 report in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. No action is required by the agency on the KTXPR55. Once the W-2’s for 2020 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. Please note that all W-2 adjustments need to be sent to payroll services no later than noon on Thursday, December 31, 2020 to ensure all W-2s are correct. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Printable Version of 20-P-023
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Informational Circular No. 20-P-024 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: 2020 Form W-4 Employee’s Withholding Allowance Certificate Required for Rehired Employees
The 2020 IRS Publication 15-T Federal Income Tax Withholding Methods has clarified the Form W-4 requirements for employees rehired in 2020 as follows:
“A new employee who is first paid wages in 2020, including an employee who previously worked for you and was rehired in 2020, and who fails to furnish a Form W-4 will be treated as if they had checked the box for Single or Married filing separately in Step 1(c) and made no entries in Step 2, Step 3, or Step 4 of the 2020 Form W-4…” [emphasis added]
Therefore, individuals rehired on or after January 1, 2020 must complete a 2020 W-4, Employee’s Withholding Certificate. If no W-4 form is completed at the time of rehire the individual will be treated as if they had checked the box for Single or Married filing separately and no other adjustments. The 2020 IRS Form W-4, Employee’s Withholding Certificate can be found at the IRS website at https://www.irs.gov/pub/irs-pdf/fw4.pdf and at the Office of Accounts and Report’s website at the Document Center.
Printable version of 20-P-023
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Informational Circular No. 20-P-024 |
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Effective Date: |
June 30, 2020 |
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Contact Name: |
Ph: |
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Approval: | Nancy Ruoff/Sunni Zentner (Original Signatures on File) |
Summary: NACHA data security requirement
In order to enhance quality and improve risk management, the National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information. NACHA has established 2 separate phases of implementation for the new requirement based on transaction volume. The State of Kansas must be compliant with the Phase 1 date of June 30, 2020.
The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically. This includes ACH account information stored at rest in any system or in any electronic format. ACH account information in transit is not affected by this requirement. Forms collected electronically (including those which are scanned and stored) are subject to the requirement.
Examples of data subject to the new NACHA security requirement:
- ACH information for any current or former employee
- ACH information for any supplier
- INF02, Inbound Voucher Interface File, retained by the agency for historical purposes
- INF67/BL67, Inbound ACH Bank File, retained by the agency for historical purposes
- DA-130, Authorization for Electronic Deposit of Supplier Payment
- DA-184, Authorization for Direct Deposit of Employee Pay and/or Travel and Expense
- Regent Pay Detail Files, retained by the agency for historical purposes
- Correspondence in e-mail or help desk that includes ACH information
Examples of data not subject to the new NACHA security requirement:
- INF02, Inbound Voucher Interface File, in transit
- INF67/BL67, Inbound ACH Bank File, in transit
- Regent Pay Detail Files, in transit
Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration. Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security on June 30, 2020.
Additional Resources
NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements
PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9
Attachment
Letter from Jake LaTurner dated November 26, 2019
Printable Version of 20-P-025
Informational Circular No. 20-P-026 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Elimination of Agency E-Mail Notifications of Employee Changes to Federal W-4 and State K-4 Withholdings Made via SHARP Employee Self Service
Effective immediately, electronically submitted changes to an employee’s Federal W-4 or Kansas K-4 made via SHARP Employee Self Service (ESS) will no longer generate an e-mail notification to agency HR/Payroll staff. Agency staff will no longer be required to maintain a paper copy of electronic changes made to an employee’s Federal W-4 or State K-4. Staff are reminded that W-4/K-4 forms submitted in paper version and entered by agency staff must continue to be retained by the agency in the employee’s personnel file in accordance with record retention guidelines.
To assist agencies with identifying W-4/K-4 changes made electronically by employees, a new query (Employee Tax Updates) is being developed and will be added to the Payroll WorkCenter Queries in SHARP. Notification will be sent via the SHARP Infolist when the new query has been added to the WorkCenter. The Payroll WorkCenter can be found in SHARP on the Payroll Homepage under the Payroll WorkCenter tile. The query prompts for a date range, which pulls from the Date Last Updated field on the Federal Tax Data Page in SHARP and will display the max effective dated row for all employees in your agency who had a Federal or State tax data change between the dates entered in the prompt. The results of the query will display the Employee ID, Effective Date, Form: (note: version A = 2019 or earlier; version B = 2020 or later), Last Action (see below for code references), and Date of last update.
Last Action Codes:
B = Batch
C = System (i.e. Rehire)
D = Hire Process
O = Online User
W = Employee Self Service
Agencies are reminded that employees have until 6:00 p.m. on the night of payroll confirm (normally the Friday of pay calc week) to change tax data.
Printable Version of 20-P-026
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Informational Circular No. 20-P-027 |
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Supersedes Informational Circular No: |
19-P-020 |
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Effective Date: |
Payroll Period Ending February 8, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Organization Dues Change for ORG357
The organization dues for members of the AFSCME Council 61, Local 1357, will increase from $19.31 to $19.81 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 26, 2020 and ending February 8, 2020, paid February 21, 2020.
The amounts listed above include the deduction amount (ORG357 deduction code) and the $0.06 service fee (ORF357 deduction code) added together. The new rate for deduction code ORG357 will increase from $19.25 to $19.75 and the fee (ORF357) will remain at $.06 (for a total deduction of $19.81 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
Printable version 20-P-027
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Informational Circular No. 20-P-028 |
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Supersedes Informational Circular No: |
19-P-014 |
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Effective Date: |
January 1, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2020
The Internal Revenue Service (IRS) announced the standard mileage rate decreased to 57.5 cents beginning January 1, 2020 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 57.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle.
To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2020 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $50,400 for automobiles (including trucks and vans).
Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately-owned vehicle mileage reimbursement rate.
Also, as noted in Informational Circular 20-A-006, any agency that processed a mileage reimbursement on or after January 1st for travel that occurred on or after January 1, 2020 and used the previously published (higher) rates will need to calculate the difference and either:
- process that amount through payroll as fringe benefit income; or
- reduce that amount from future mileage reimbursements that occur in 2020
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
Printable version of 20-P-028
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Informational Circular No. 20-P-029 |
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Effective Date: |
June 30, 2020 |
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Contact Name: |
Ph: |
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Approval: | Nancy Ruoff/Sunni Zentner (Original Signatures on File) |
Summary: Delay of enforcement for NACHA data security requirement
This revises Informational Circular No. 20-P-025 issued on January 16, 2020.
Background:
The National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information. The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically. This includes ACH account information stored at rest in any system or in any electronic format. ACH account information in transit is not affected by this requirement. Forms collected electronically (including those which are scanned and stored) are subject to the requirement.
Revised deadline:
As published in the National Association of State Auditors, Controllers and Treasurers’ (NASACT) newsletter dated January 21, 2020, NACHA will be taking the position of “no enforcement” of the new data security rule through June 30, 2021 for governmental entities that are working in good faith toward implementation and compliance. Agencies subject to the NACHA requirement should develop and document a plan of action by June 30, 2020 that will ensure compliance with the new security requirements is achieved on or before June 30, 2021.
Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration. Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security by June 30, 2021.
Additional Resources
NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements
PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9
Printable version of 20-P-029
Informational Circular No. 20-P-030 |
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Supersedes Informational Circular No: |
12-P-011 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Employee Self-Service ‘View Paycheck’ tile has been extended for terminated and retired users.
A change has been made to Employee Self-Service (ESS) for (Non-Regent) employees who are no longer employed by the State of Kansas. A terminated/retired employee will have thirty days from the date of termination to access all their ESS information online. After thirty days, access will be limited to the “My System Profile”, “W-2: Consent, Reissue, Forms”, and “View Paycheck” tiles for 18 months from the date of separation from employment. Agencies should inform their employees upon their retirement/termination that they will have access to print their W-2’s and view/print paychecks for 18 months after termination. The Employee Self-Service Center is available 24/7, excluding Official State of Kansas Holidays and scheduled monthly maintenance.
ESS may be accessed at www.kansas.gov/employee by clicking the Employee Self-Service hyperlink located on the right side of the page. If the past employee does not remember their password at any time during this 18-month period, a 'Forgot Your Password Instructions' is available on the ESS website. Additional resources on this website are listed under Frequently Asked Questions (FAQs) – W-2 Consent Withdraw, and Reissue Instructions’, ‘View Paycheck’, ‘Print Paycheck’ and 'Request W-2 Reissue’.
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Printable version of 20-P-030
Informational Circular No. 20-P-031 |
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Effective Date: |
March 8, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Addition of Earnings Code ‘CVD’ for COVID-19 Tasks
On March 12, 2020, Governor Kelly declared an emergency in response to the growing novel coronavirus (COVID-19) outbreak in Kansas. As a result, agencies will be preparing for and responding to numerous issues, questions, and tasks related to COVID-19.
Therefore, a new earnings code has been added to SHARP effective March 8, 2020 to administer the tracking of time worked on COVID-19 related tasks. Agencies should also refer to the Governor’s memorandum issued March 13, 2020 on COVID-19 Operational and Workplace Guidance for instructions regarding the recording of administrative leave for other scenarios related to COVID-19.
The following new earnings code is eligible to be used starting with the pay period beginning March 8, 2020 through March 21, 2020 paid April 3, 2020.
Earnings Code
CVD
Description
COVID-19 Tasks
Short Description
COVID-19
Effective Date
03/08/2020
SHARP agencies: The Office of Personnel Services has created the CVTSK (COVID-19 Task) Time Reporting Code (TRC) and has mapped the CVTSK TRC to the CVD earnings code effective March 8, 2020. The CVTSK TRC is now visible in Time and Labor drop down lists.
The Office of Accounts and Reports, 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.
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Printable Version of 20-P-031
Informational Circular No. 20-P-032 |
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Effective Date: |
March 13, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Suspension of Continuing Education Garnishments for US Department of Education
In a press release dated March 25, 2020 U.S. Secretary of Education Betsy DeVos announced that, due to the COVID-19 national emergency, the U.S. Department of Education will halt collection actions and wage garnishments for student loans due to the Dept of Education for a period of at least 60 days from March 13, 2020. In additional Q&A information available at https://studentaid.gov/announcements-events/coronavirus, the Dept. of Education notes that it will refund any funds received by the Dept. of Education for wages garnished during the transition by employers to comply with the announced changes.
To comply with the announcement, effective immediately, Statewide Payroll will be completing the necessary actions to temporarily suspend all wage garnishment for student loans collections due to the Dept. of Education, either directly or through a 3rd-party collection agent, and will re-activate the wage garnishments upon notification from the U.S. Dept. of Education. Regent agencies are responsible for making the necessary changes in their systems to comply with the announced changes.
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Printable Version of 20-P-032
Informational Circular No. 20-P-033 |
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Effective Date: |
March 8, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Update to Program Code for Funding Associated with the New CVD Earnings Code (Time Reporting Code CVTSK)
Informational Circular 20-P-031 announced the addition of earnings code CVD (Time Reporting Code CVTSK) for tracking work related COVID-19 tasks. In addition, the Governor and Secretary of Administration have requested that all transactions related to the COVID-19 outbreak, including the time worked on COVID-19 related tasks, be tracked via a new program code in SMART for ease of reporting. This applies to all state agencies (Regents, executive, judicial, and legislative branches). Division of the Budget and the Office of Accounts and Reports have added program code 21662, COVID-19 Transactions, with an effective date of February 1, 2020, to both IBARS and SMART.
Agencies utilizing the new CVD earnings code must update the program code chartfield for the agency funding string associated with the CVD earnings code to reflect the new program code of ‘21662’ and submit the new combination code(s) to SHARP using the new program code. Combination codes submitted by 11 a.m. daily will be loaded by 1 p.m.; requests submitted after 11a.m. will be loaded the following day.
Agencies are responsible to instruct those employees required to record time using the new CVD earnings code (Time Reporting Code CVTSK)/combination code. If previous COVID-19 related time reporting has already been processed using the CVD earnings code (Time Reporting Code CVTSK), agencies are expected to process an adjustment in SMART to update/correct the funding to reflect the new program code of 21662.
When considering what time reporting and/or SMART transactions should use the COVID-19 program code, the general guidance is to include transactions that would not normally have occurred if the virus outbreak had not happened.
Examples of transactions that should use the COVID-19 program code:
- Salaries and wages for additional personnel or overtime costs due to outbreak response
- Overtime costs for staff working to cover tasks when co-workers cannot report due to self-quarantine or no access to daycare for school-age kids
- Purchase of laptop computers so staff can work remotely
- Meals, lodging and/or miscellaneous expenses for emergency response
- Military activation
- Supplies for disinfection (cleaners, anti-bacterial gel, etc.)
- Medical supplies (gloves, masks, thermometers, test kits, etc.)
- Costs due to the cancellation of activities
- Deposits for COVID-19 revenue
Examples that should not use the COVID-19 program code:
- Salaries and wages for staff working remotely or performing normal tasks during the statewide office closure
Any agencies with specific questions about whether expenses or revenues should be included or excluded should contact their Division of Budget analyst. Questions regarding the steps required to update the agency funding to reflect the new program code for the CVD earnings code (Time Reporting Code CVTSK) should be directed to Heather DeBusk at Heather.DeBusk@ks.gov or 785.296.2434.
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Printable Version of 20-P-033
Informational Circular No. 20-P-034 |
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Effective Date: |
March 8, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Agency Options for Required Use of New Program Code for Funding Related to COVID-19 Payroll Expenditures
Informational Circular 20-P-033 announced the addition of a new program code ‘21662’ to track and report payroll expenditures for work related to COVID-19 tasks. This reporting requirement applies to all state agencies (Regents, executive, judicial, and legislative branches). To assist in tracking COVID-19 payroll expenditures, including overtime, a new Taskgroup ‘COVIDTSK’ has been added to SHARP effective 3/8/2020. The new Taskgroup may be used with any Time Reporting Code to track/report COVID-19 related hours (Overtime, Shift Differential, etc.)
To minimize the agency impact for implementation of the new reporting requirement, the Division of Budget and the Secretary of Administration have approved the following options for agencies required to record COVID-19 related payroll expenditures using the new program code:
Option #1: For agencies NOT using task profiles to record detailed expenditures:
- Employees may use the Time Reporting Code CVTSK OR REG (with new Taskgroup COVIDTSK) to record employee regular hours related to COVID-19
- Employees will use the newly established Taskgroup ‘COVIDTSK’ to record other COVID-19 related hours such as overtime reported as OTP (see example), Shift Differential, etc.
Timesheet Example:
- Agency payroll/finance staff must generate the Payable Time Extract (KTL109) in SHARP each pay period to identify all payroll expenditures associated with COVID-19 and complete a SMART GL journal entry to move the associated expenditures to the new program code ‘21662’ on a bi-weekly basis
- Additional detailed guidance for this option is available in Attachment A
Option #2: For agencies tracking detailed expenditures through task profiles:
- Agency may create new task profiles per Info Circ. 20-P-033 to reflect the new required program code OR
- Agency payroll/finance staff may use task profiles or other tracking information to identify COVID-19 related payroll expenditures and complete a SMART GL journal entry to move the associated expenditures to the new program code ‘21662’ on a bi-weekly basis
Agencies are responsible to instruct those employees required to record time using the new COVIDTSK Taskgroup for time reporting and/or the Time Reporting Code CVTSK to track time recorded for COVID-19 tasks. If previous COVID-19 related time reporting has already been processed, agencies are expected to process an adjustment in SMART to update/correct the funding to reflect the new program code of 21662 for COVID-19 related expenditures that occurred on or after February 1, 2020.
As a reminder, per Division of Budget, only payroll expenditures that would not normally have occurred if the virus outbreak did not happen should be reported under the COVID-19 program code.
Examples for Employee payroll expenditures for COVID-19 tracking:
Employee payroll expenditures that should be tracked/reported using the COVID-19 program code:
- Salaries and wages for additional personnel or additional (non-standard) overtime costs directly related to outbreak response
- Additional overtime costs for staff working to cover tasks due to COVID-19 (i.e. when co-workers cannot report due to self-quarantine or no access to daycare for school-age kids)
Employee payroll expenditures that should not be tracked/reported as COVID-19 costs:
- Previously budgeted salaries and wages for staff working regular hours remotely (either performing normal tasks and/or planning/discussing agency impacts from COVID-19)
- Previously budgeted overtime costs to cover standard agency-anticipated overtime
Examples for distribution of Employer payroll tax/fringe expenditures for COVID-19 tracking:
- For NEW positions added and fully dedicated to COVID-19 ALL employer taxes and fringes (KPERS/Employer Health Benefits, etc.) should be reported with the new program code
- For EXISTING positions with additional hours/overtime reported under the new program code, only the portion of those employer charges that would not have previously occurred may be charged to the new program code:
- Employer Percentage-Based Taxes/Fringes such as OASDI/Medicare, UCI, State Leave, KPERS, etc. should be reported for the COVID-19 related payroll costs
- Flat-rate employer charges such as Health Benefits for existing employees should NOT be reported to the new program code as those are not new costs due to the outbreak
Any agencies with specific questions about what should be included or excluded for COVID-19 reporting should contact their Division of Budget analyst. Questions regarding agency funding should be directed to Heather DeBusk at Heather.DeBusk@ks.gov or 785.296.2434.
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Attachment A
Printable Version of 20-P-034
Informational Circular No. 20-P-035 |
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Effective Date: |
April 5, 2020 |
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Contact Name: |
Ph: |
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Approval: | Nancy Ruoff (Original Signature on File) |
Summary: New Earnings Codes and Agency Guidance for Implementation of the Federal Families First Coronavirus Relief Act (FFCRA)
On March 18, 2020, the Federally authorized Families First Coronavirus Relief Act (FFCRA) was signed into law to aid employees impacted by COVID-19. The FFCRA contains the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) which authorize paid leave provisions for specific circumstances related to COVID-19 and apply to leave taken between April 1, 2020 and December 31, 2020.
The Act specifies that wages paid for FFCRA authorized leave are not considered wages for the calculation of the employer share of OASDI, however, all other employee and employer deductions, withholdings, and contributions apply.
Please note that due to the State of Kansas providing state-authorized administrative leave to state employees through April 4, 2020, the FFCRA leave provisions will be implemented for SHARP agencies effective April 5, 2020.
Earnings Codes:
New earnings codes have been added to SHARP effective April 5, 2020 to administer the tracking of the compensation paid under the FFCRA guidance. Agencies should also refer to the Office of Personnel Services SHARP Infolist message containing guidance for entry of Time Reporting Codes used to record leave authorized under the FFCRA.
The following new earnings codes are effective for the pay period beginning April 5, 2020 through April 18, 2020 paid May 1, 2020.
Earnings Code Description Short Description Effective Date
ADC Leave-Emergency Self Lve-COVID 04/05/2020
CVF Leave-Emergency Family Lve-COVID 04/05/2020
CVC Leave-Emergency Childcare Lve-COVID 04/05/2020
ADF Leave-Emergency Admin Lve-COVID 04/05/2020
Due to the complexity of the payroll calculations required under the FFCRA, the Time Reporting Codes established to track FFCRA leave in Time and Labor are NOT mapped directly to the payroll earnings code in SHARP. However, the hours reported in Time and Labor are required to complete the payroll calculations.
Payroll Calculations under FFCRA:
As authorized by the FFCRA, employees are eligible for paid leave subject to daily limits. However, to further assist employees impacted by COVID-19, beginning April 5, 2020 and until further notice, the State of Kansas Executive Branch has authorized additional emergency administrative leave for SHARP employees authorized to take leave under the FFCRA to fill the gap between the FFCRA-authorized wage limits and the employee’s regular wages (defined as standard hours at standard hourly rate).
Employee Paid Leave Eligibility under FFCRA:
Under the EPSLA, eligible employees may receive up to two weeks (80 hours, or a part-time employee’s two-week equivalent) of paid sick leave paid at:
100% of employee’s FFCRA-defined regular rate of pay for an employee who:
- Is subject to a Federal, State, or local quarantine or isolation order related to COVID-19
- Has been advised by a health care provider to self-quarantine related to COVID-19
- Is experiencing COVID-19 symptoms and is seeking a medical diagnosis
2/3 of employee’s FFCRA-defined regular rate of pay for an employee who:
- Is caring for an individual who is subject to a Federal, State, or local quarantine or isolation order or who has been advised by a health care provider to self-quarantine related to COVID-19
- Is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services
- NOTE: Emergency administrative leave will be inserted into the paysheet for the additional 1/3 of employee’s wages (effective 04/05/20 until further notice)
Under the EPSLA, all eligible employees may receive up to two weeks of paid sick leave (80 hours/2 weeks, or a part-time employee’s equivalent) and under the EFMLEA individuals employed for 30 days or more may receive an additional 10 weeks of paid family/medical leave paid at:
2/3 of employee’s FFCRA-defined regular rate of pay for an employee who:
- Is caring for his or her child whose school or place of care is closed (or child-care provider is unavailable) due to COVID-19 related reasons
- NOTE: Emergency administrative leave will be inserted into the paysheet for the additional 1/3 of employee’s wages (effective 04/05/20 until further notice)
The Office of Accounts and Reports, Payroll Systems Team, is responsible for adding the new earnings codes and FFCRA calculations in the SHARP System. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems in accordance with guidance from the Office of Accounts and Reports and the Kansas Board of Regents.
Office of Accounts and Reports Contacts:
- Nancy Ruoff, Statewide Payroll Manager(785) 296-2853 Nancy.Ruoff@ks.gov
- Earl Brynds, Payroll Systems Team Lead(785) 296-5376 Earl.Brynds@ks.gov
Office of Personnel Services Time and Labor Contacts:
- Connie Guerrero, Deputy Director Connie.Guerrero@ks.gov
- Brent Smith, Human Resource Professional Brent.Smith@ks.gov
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Printable Version of 20-P-035
Informational Circular No. 20-P-036 |
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Effective Date: |
June 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Payroll/SMART processing schedule changes due to 2020 Fiscal Year End
Due to the upcoming 2020 Fiscal Year End in SMART and the payroll pay check date occurring close to the last day of the fiscal year in SHARP, June 26, 2020, it is necessary to make a few changes to the normal payroll/SMART processing schedules to accommodate the early closing of SMART on Saturday, June 27, 2020.
Regents/Agencies are asked to pay close attention to the changes noted below to file due dates and processing dates for payroll in SHARP and for budget checking and posting of payroll journals in SMART.
Wednesday, June 17, 2020
Regents’ on-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 17, 2020. (These files would normally be due on Thursday, June 18, 2020).
Regent file sets for the period ending June 13, 2020 ‘A’ off-cycle may be submitted.
SHARP on-cycle payroll pre-calculation for the period ending June 13, 2020 will be processed as normal on this date.
Thursday, June 18, 2020
Regents’ on-cycle files for the period ending June 13, 2020 will be processed on this date. (The Regent’ on-cycle files would normally be processed on Monday, June 22, 2020).
SHARP on-cycle payroll pre-calculation for the period ending June 13, 2020 will be processed as normal on this date.
Friday, June 19, 2020
Regents’ on-cycle payroll journals for the period ending June 13, 2020 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 24, 2020).
Regents’ Run A off-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 19, 2020. NOTE: If necessary, Regents can work directly with Statewide Payroll to submit off-cycle ‘A’ payroll files for approval on Monday, June 22, 2020, but all files must be approved no later than 3pm on Monday, June 22, 2020 for processing in the ‘A’ off-cycle.
SHARP on-cycle final payroll calculation for the period ending June 13, 2020 will be processed as normal on this date.
Monday, June 22, 2020
SHARP on-cycle payroll journals for the period ending June 13, 2020 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 24, 2020).
NOTE: SHARP and Regents’ off-cycle ‘A’ payroll for the period ending June 13, 2020 will be processed as normal on June 22, 2020.
Tuesday, June 23, 2020
Regents’ and SHARP off-cycle ‘A’ payroll journals for the period ending June 13, 2020 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 24, 2020).
Regents’ Run B off-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 23, 2020.
Wednesday, June 24, 2020
SHARP and Regents’ off-cycle ‘B’ payroll for the period ending June 13, 2020 will be processed as normal in SHARP on June 24, 2020. This will be the last payroll cycle for fiscal year 2020.
Thursday, June 25, 2020
Regents’ and SHARP off-cycle ‘B’ payroll journals for the period ending June 13, 2020 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Friday, June 26, 2020).
Friday, June 26, 2020
Payday for the payroll period ending June 13, 2020.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending June 27, 2020 submitted to the Department of Administration for processing by 5:00 PM on June 26, 2020. (These files would normally be due Monday, June 29, 2020.) Last opportunity to submit files will be noon on Monday, June 29, 2020.
Regents’ Run C off-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 26, 2020.
Monday, June 29, 2020
SMART closed to Agencies.
SHARP and Regents’ off-cycle ‘C’ payroll for the period ending June 13, 2020 will be processed as normal on June 29, 2020. This will be the first payroll cycle for fiscal year 2021.
NOTE: Due to the July 4, 2020 holiday, paysheets for the SHARP on-cycle payroll for the period ending June 27, 2020 will be created on Monday, June 29, 2020. (Paysheets would normally be created on Tuesday, June 30, 2020.)
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending June 27, 2020 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on June 29, 2020.
Terminations and Retirements must be entered by 6:00 PM on June 29, 2020 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
The first on-cycle preliminary pay calculation for the period ending June 27, 2020 will also occur June 29, 2020. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM. After the final Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM. on June 29, 2020 in order for a paycheck record to be created.
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Printable Version of 20-P-036
Informational Circular No. 20-P-037 |
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Supersedes Informational Circular No: |
19-P-022 |
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Effective Date: |
Immediately |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Summary of Fiscal Year End Payroll Processing
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2021 payroll contribution rates will be issued as soon as the information becomes available. There is also informational circular 20-P-036 available regarding the key payroll processing dates related to fiscal year end processing in SHARP and SMART.
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 pay periods ending on or before June 13, 2020 will use fiscal year 2020 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 13, 2020 will use fiscal year 2021 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run B off-cycle (scheduled for June 24, 2020, paid June 29, 2020) for the pay period ending June 13, 2020 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2020 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 21, 2020 and should be completed by Monday morning, June 22, 2020. In that process, a new row will be added to the Department Budget tables with an effective date of June 14, 2020 (beginning date of the first on-cycle payroll charged to FY2021). The Budget End Date will be June 12, 2021.
Agencies should send Combination Code files or any Department Budget Table files for FY2021 changes into Statewide Payroll by Friday, June 19, 2020. These files will be loaded into SHARP beginning Tuesday, June 23, 2020. Agencies should not enter any rows with an effective date greater than or equal to June 14, 2020 until June 23, 2020. When adding new rows for FY2021, agencies should verify that June 12, 2021 was used as the Budget End Date for FY2021.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Thursday June 25, 2020 after the ‘B’ off-cycle process has been completed for the June 13, 2020 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 25. Agencies are encouraged to complete all FY2020 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 24, 2020, since the ‘B’ off-cycle is the last payroll cycle in SHARP for FY2020. Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 29, 2020 will be included with FY2021 transactions and will not be included on the KPAYGL5C file until it is run again on Tuesday night, June 30, 2020.
GHI Adjustments
June is a popular retirement month. Many employees will retire by June 15th which would impact the amount of GHI for which the employee should have on his/her final paycheck issued in July 2020. In order to avoid processing a refund for any employees who have a retirement date greater than June 14, 2020, MAP should be updated with an employee’s termination date as soon as possible. If you have any questions or concerns, contact Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 about event maintenance that may affect claims processing for any employee.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period.Agencies should not change Job Data including the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling.Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation.The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
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Printable Version of 20-P-037
Informational Circular No. 20-P-038 |
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Effective Date: |
May 4, 2020 |
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Contact Name: |
Ph: |
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Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Two New Earnings Codes and Agency Guidance Changes for Administering the Federal Families First Coronavirus Relief Act (FFCRA)
Pursuant to the phased re-opening guidelines issued by the Governor on April 30, 2020, there will be a new employee leave policy for those using Families First Coronavirus Recovery Act (FFCRA) leave for childcare purposes effective May 4, 2020. In addition, a new leave policy has been established for those employees considered in the at-risk/high risk populations.
Earnings Codes:
Two new earnings codes have been added to SHARP effective May 4, 2020 to administer the employee leave changes paid under the new policy guidance. Agencies should also refer to the Office of Personnel Services SHARP Infolist message issued May 13, 2020 containing guidance for entry of Time Reporting Codes used to record leave authorized under the FFCRA with these changes. The guidance is also posted here.
The following new earnings codes are effective for the pay period beginning May 3, 2020 through May 16, 2020 paid May 29, 2020.
Earnings Code Description Short Description Effective Date
ADH Leave-Emergency High Risk Lve-COVID 05/04/2020
CVK Leave-Emergency Child2 Lve-COVID 05/04/2020
Due to the complexity of the payroll calculations required under the FFCRA, the Time Reporting Code CVK established to track FFCRA leave in Time and Labor is NOT mapped directly to the payroll earnings code in SHARP. However, Time Reporting Code ADH is mapped to the payroll earnings code in SHARP and will load directly to Payroll from Time and Labor since processing of this code is not tied to the FFCRA rules.
Payroll Calculations for CVK under FFCRA:
As authorized by the FFCRA, employees are eligible for paid leave subject to daily limits. Employees utilizing leave provided by the FFCRA due to childcare will still receive paid leave in the amount of two-thirds of their FFCRA-defined regular rate of pay. However, employees must now telework, use their own accrued leave (compensatory time, holiday compensatory time, sick or vacation) or record leave without pay for the remainder of their time. NOTE: Administrative leave (ADF) for the remaining one-third pay will no longer be provided beginning May 4, 2020. In addition, ADF will no longer be used to supplement the difference if the employee’s current hourly rate exceeds the Dept. of Labor required regular rate of pay.
Payroll Calculations for ADH:
Employees who are unable to report to work due to being in an at-risk/high-risk population and who are unable to telework will receive paid leave in the amount of two-thirds of their regular pay at their current regular rate. Employees must telework, use their own accrued leave (compensatory time, holiday compensatory time, sick or vacation) or record leave without pay for the remainder of their time.
A COVID-19 Leave Split chart to help to determine how many hours to split the employee’s hours between the ADH or CVK codes and their own leave can be found in the Time and Labor Documents section of the SHARP website at: SHARP
The Office of Accounts and Reports, Payroll Systems Team, is responsible for adding the new earnings codes and FFCRA calculations in the SHARP System. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems in accordance with guidance from the Office of Accounts and Reports and the Kansas Board of Regents.
Office of Accounts and Reports Contacts:
- Nancy Ruoff, Statewide Payroll Manager(785) 296.2853 Nancy.Ruoff@ks.gov
- Earl Brynds, Payroll Systems Team Lead(785) 296-5376 Earl.Brynds@ks.gov
Office of Personnel Services Time and Labor Contacts:
- Connie Guerrero, Deputy Director Connie.Guerrero@ks.gov
- Brent Smith, Human Resource Professional Brent.Smith@ks.gov
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Printable Version of 20-P-038
Informational Circular No. 20-P-039 |
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Supersedes Informational Circular No: |
19-P-023 |
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Effective Date: |
July 1, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of Accounts and Reports. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2021 will require entry into the SHARP system at the Payroll Homepage > Employee Payroll/Benefits Data Tile > Create Additional Pay for fringe benefit income. FY2021 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday June 29, 2020 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 27, 2020 (paychecks dated July 10, 2020).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment
Printable Version of 20-P-039
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Informational Circular No. 20-P-040 |
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Supersedes Informational Circular No: |
19-P-025 |
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Effective Date: |
Pay Period Beginning June 14, 2020; Ending June 27 2020; Paid July 10, 2020 |
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Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: Fiscal Year 2021-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 2021. The fiscal year 2021 rates will become effective with the on-cycle payroll period beginning June 14, 2020, ending June 27, 2020 and paid July 10, 2020. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2020.
Governor Kelly’s Allotment Plan for FY 2021 includes a one-year moratorium on the KPERS Death and Disability contribution of 1.0% (.4% for Judges). For all pay periods of FY 2021 only the base KPERS contributions will be made. The legal authority to make allotment reductions is found in the allotment implementation letter from the Secretary of Administration dated June 29, 2020, which is posted on the Division of the Budget website at https://budget.kansas.gov/budget-report/.
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 April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; between April 1, 2012 and June 30, 2012; between April 1, 2013 and June 30, 2013; and between March 25, 2016 and September 30, 2017.
For Regent institutions, previous 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.
The Office of Accounts and Reports, 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.
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Printable Version of 20-P-040
Informational Circular No.: 19-P-001
Supersedes Informational Circular No: 18-P-002
Effective Date: Payroll Period Ending August 25, 2018
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for ORG030
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $31.21 to $31.61 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 12, 2018 and ending August 25, 2018, paid September 7, 2018.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $31.15 to $31.55 and the fee (ORF030) will remain at $.06 (for a total deduction of $31.61 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 19-P-001
Informational Circular No.: 19-P-002
Supersedes Informational Circular No: 15-P-027
Effective Date: August 26, 2018
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Modification of Earnings Code S16 due to Memorandum of Agreement between the State of Kansas and the Fraternal Order of Police Lodge No. 64 signed August 16, 2018
The Memorandum of Agreement, Article 25, between the State of Kansas Department of Corrections (KDOC) and the Fraternal Order of Police Lodge No. 64 signed August 16, 2018 now stipulates that if Parole Duty Officers respond to calls after regularly scheduled work hours, weekends and holidays in accordance to departmental policy IMPP 14-147 – Parole Duty Officer, duty officer hours shall be compensated at a rate of $30.00 per day (previously $28.00 per day) for hours beyond regularly scheduled work as designated duty officer. Duty Officers shall be compensated at a partial day rate of $15.00 for days that they serve less than a full day in that role. The partial day rate is applicable for any day that a Duty Officer transitions into or out of the Duty Officer role. It shall also be used if an officer does not serve more than 12 hours as Duty Officer due to the use of leave or other valid reason. As a result of the agreement, the description for earnings code S16 has been modified in SHARP effective August 26, 2018 as follows:
Earnings Code Description Short Description Effective Date
S16 Duty Officer Pay-FOP-$30 Shft FOP 8/26/2018
The Office of Personnel Services has also updated the S16 Time Reporting Code (TRC) to reflect the S16 Earnings Code changes. In addition, timesheet entry will now allow only a value between .50 and 1.0 one (1) to be entered per day. If a value outside of the .50-1.0 range is entered on the timesheet, the following message will display upon Saving and validating time worked or Submitting: “Daily quantity for TRC S16 must be between 0.5 and 1. Current total for 2018-08-13 is X.YZ. (13504,234) Review all your entries for the TRC and adjust as necessary.”
KDOC employees will enter either .50 (for $15) or 1.0 (for $30) on their timesheet for each day they need to be paid Duty Officer Pay. The system configuration will automatically calculate the total amount to be paid over the bi-weekly pay period for the S16 earnings.
The S16 earnings code is only available for use by Department of Corrections. The details of the agreement can be found at https://admin.ks.gov./offices/office-of-personnel-services/services/human-resources/agency-information/labor-relations.
The Office of the Chief Financial Officer, Payroll Systems Team, is responsible for updating this earnings code in the SHARP system.
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Printable Version of 19-P-002
Informational Circular No.: 19-P-003
Supersedes Informational Circular No: 18-P-005
Effective Date: Calendar Year 2019
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2019
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2019. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 5:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of the Chief Financial Officer must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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On-Cycle Calendar
Off-Cycle Calendar
Printable Version of 19-P-003
Informational Circular No.: 19-P-004
Supersedes Informational Circular No: 17-P-012
Effective Date: Payroll Period Ending October 6, 2018
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Dissolution of SEAK Organization
The organization for the State Employees Association of Kansas (SEAK) has completed the process of dissolution with the Kansas Secretary of State’s Office. SEAK recently sent letters notifying state employees active in SEAK of the dissolution and giving employees the option to end their payroll deductions of membership dues on their own.
All active SEAK deductions must be terminated with the payroll period beginning September 23, 2018 and ending October 6, 2018, paid October 19, 2018. This will end the payroll deductions for both the organizational dues deduction codes ORG050 and ORG051, as well as the corresponding fee codes ORF050 and ORF051.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems effective with the payroll period noted above.
Printable Version of 19-P-004
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Informational Circular No.: 19-P-005
Effective Date: Pay Period Beginning June 17, 2018; Ending June 30, 2018; Paid July 13, 2018
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Revised FY 2019 KPERS Employer Contribution Rate for Judges
The fiscal year 2019 KPERS employer contribution rate for Judges (retirement codes J1, J2, and J3) was incorrectly certified by KPERS at 15.89%. The correct employer contribution rate for fiscal year 2019 is 14.68%. The rate will be corrected for paychecks dated October 19, 2018. Statewide Payroll will be working with KPERS to enter a general journal in SMART to refund all state agencies affected by the incorrect rate.
The attachment to this informational circular is the amended Attachment A to Informational Circular 18-P-023 previously issued on June 26, 2018. This amendment updates the employer contribution rate for judges retirement codes J1, J2, and J3.
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.
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Amended Attachment A
Printable Version of 19-P-005
Informational Circular No.: 19-P-006
Supersedes Informational Circular No: 18-P-012
Effective Date: January 1, 2019
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Social Security Wage Base Increase to $132,900 effective January 1, 2019
The Social Security wage base for OASDI will be $132,900 for calendar year 2019. This is a $4,500 increase from the wage base of calendar year 2018 of $128,400. The OASDI tax rate for 2019 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2019 will be $8,239.80. There continues to be no limit on wages subject to the Medicare tax in 2019. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $8,239.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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Printable Version of 19-P-006
Informational Circular No.: 19-P-007
Supersedes Informational Circular No: 18-P-009
Effective Date: November 2018
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll processing schedule changes due to the November 2018 holidays
Monday, November 12, 2018 (Veterans' Day), Thursday, November 22, 2018 and Friday, November 23, 2018 (Thanksgiving Holiday) are designated as officially observed holidays and therefore no batch jobs are scheduled for those nights.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. Please review carefully the information contained in this circular and in the attached partial calendar.
Wednesday, November 7, 2018
The second on-cycle preliminary pay calculation for the period ending November 3, 2018 will occur November 7, 2018.
Regents’ on-cycle payroll files for the period ending November 3, 2018 must be received by the Department of Administration by 4:00 PM on November 7, 2018.
Thursday, November 8, 2018
The third on-cycle preliminary pay calculation for the period ending November 3, 2018 will occur November 8, 2018.
Regents’ Run A off-cycle payroll files for the period ending November 3, 2018 must be received by the Department of Administration by 4:00 PM on November 8, 2018.
Friday, November 9, 2018
Final pay confirmation for the on-cycle payroll for the period ending November 3, 2018 will occur November 9, 2018. All employees’ payable time must be approved, by 6:00 PM on November 9, 2018 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 9, 2018 in order to be reflected in the final paycheck created for the employee.
Sunday, November 11, 2018
Regents’ on-cycle payroll files for the period ending November 3, 2018 will be processed on this date.
Monday, November 12, 2018
Veterans Day Holiday
Time Administration run hourly from 7:30 AM – 5:30 PM
Tuesday, November 13, 2018
The Run A off-cycle for the period ending November 3, 2018 will be processed November 13, 2018. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 16, 2018.
The Regents’ Run A off-cycle payroll files for the period ending November 3, 2018 will also be processed on this date.
Regents’ Run B off-cycle payroll files for the period ending November 3, 2018 must be received by the Department of Administration by 4:00 PM on November 13, 2018.
Wednesday, November 14, 2018
The Run B off-cycle for the period ending November 3, 2018 will be processed November 14, 2018. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 19, 2018.
Friday, November 16, 2018
Payday for the payroll period ending November 3, 2018.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 17, 2018 submitted to the Department of Administration for processing by 5:00 PM on November 16, 2018. (These files would normally be due Monday, November 19, 2018.) Last opportunity to submit files will be noon on Monday, November 19, 2018.
Regents’ Run C off-cycle payroll files for the period ending November 3, 2018 must be received by the Department of Administration by 4:00 PM on November 16, 2018.
Monday, November 19, 2018
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 17, 2018 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 19, 2018.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 19, 2018 and reported time must be submitted (and approved if applicable) by 5:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 17, 2018 will be created on Monday, November 19, 2018. (Paysheets would normally be created on Tuesday, November 20, 2018.) For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 19, 2018 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 17, 2018 will also occur November 19, 2018. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM. After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 17, 2018.
The Run C off-cycle for the period ending November 3, 2018 will be processed November 19, 2018. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 26, 2018. (These checks would normally be dated Thursday, November 22, 2018)
Tuesday, November 20, 2018
The second on-cycle preliminary pay calculation for the period ending November 17, 2018 will occur November 20, 2018.
Regents’ on-cycle files for the period ending November 17, 2018 must be received by the Department of Administration by 4:00 PM on November 20, 2018.
Wednesday, November 21, 2018
Final pay confirmation for the on-cycle payroll for the period ending November 17, 2018 will occur November 21, 2018. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 21, 2018 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 21, 2018 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 17, 2018 must be received by the Department of Administration by 4:00 PM on November 21, 2018.
Thursday, November 22, 2018
Thanksgiving Holiday
Time Administration run hourly from 7:30 AM – 5:30 PM
Friday, November 23, 2018
Thanksgiving Holiday
Time Administration run hourly from 7:30 AM – 5:30 PM
Beginning Monday, November 26, 2018 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2018, which highlights key payroll processing activity for the month. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at https://www.admin.ks.gov/resources/informational-circulars.
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Attachment
Printable Version of 19-P-007
Informational Circular No.: 19-P-008
Effective Date: February 1, 2019
Contact Name: Jude Overton
Ph: (785) 296-2290
Email: jude.overton@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Benefit Plan Type/Benefit Plans/Deduction Codes for Long Term Care Insurance
The Health Care Commission has approved Long Term Care insurance coverage via payroll deduction for State of Kansas employees. The insurance products will be offered by ACSIA Partners during a special open enrollment in November 2018 for coverage beginning February 1, 2019. Additional information regarding these products and enrollment details will be forthcoming from the Kansas Department of Health and Environment.
To implement this Long Term Care Insurance payroll deduction, a new benefit plan type, benefit plans and deduction codes will be added to SHaRP. The Long Term Care Insurance payroll deductions will be processed in SHaRP effective for the payroll period beginning January 13, 2019, ending January 26, 2019, paid February 8, 2019.
The Long Term Care Insurance benefit plan type, benefit plans and deduction codes are:
PLAN |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
---|---|---|---|---|---|
A0 |
ACLBP |
Lifetime Benefit Term Plan AT |
LT Care |
ACLBP |
Lifetime Benefit Term Plan AT |
A0 |
ACLTC |
Long Term Care Plan AT |
LT Care |
ACLTC |
Long Term Care Plan AT |
As previously communicated to Regent institutions, the Long Term Care Insurance payroll deduction will be included on the State Employee Health Plan BERF file provided to SHaRP and to each Regent payroll system to implement the new deduction via the existing payroll process. The first BERF file of the month will include the regular monthly Long Term Care premium and the second BERF file of the month will include any adjustments/refunds if necessary. Please note that Long Term Care payroll deductions will only be offered on an after-tax basis.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction/benefit plans by December 15, 2018.
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Printable Version of 19-P-008
Informational Circular No.: 19-P-009
Supersedes Informational Circular No: 18-P-011
Effective Date: Payroll Period Ending December 29, 2018
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG133
The organization dues for members of the Public Service Employees Local Union 1290 P.E. (represents employees at the University of Kansas and the University of Kansas Medical Center) will increase from $17.60 to $18.06 per biweekly payroll period. The new rate will become effective with the payroll period beginning December 16, 2018 and ending December 29, 2018, paid January 11, 2019.
The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $17.54 to $18.00 and the fee (ORF133) will remain at $0.06 (for a total deduction of $18.06 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
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Printable Version of 19-P-009
Informational Circular No.: 19-P-010
Supersedes Informational Circular No: 18-P-008
Effective Date: January 1, 2019
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: 2019 Deferred Compensation and Tax Sheltered Annuity Limits
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2019 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to $19,000 (up from $18,500 in 2018) or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $38,000 (up from $37,000 in 2018). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) annual contribution limit remains unchanged at $6,000 for 2019 making the total $25,000. The provision for 2018 was $6,000 making the total for 2018 $24,500.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2019 is the lesser of $56,000 or 100% of compensation, increased from $55,000 for 2018.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $275,000 (for 2018) to $280,000 (for 2019). The $280,000 applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School for the Blind and School for the Deaf employees, the maximum contribution that can be made to the plan is $28,000 ($280,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $39,200 ($280,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $405,000 (for 2018) to $415,000 (for 2019). However, participants should note their maximum annual compensation limit will be $400,000, since the $400,000 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $56,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) increases to $19,000 for 2019 (up from $18,500 in 2018). The age 50 or older catch-up provision remains unchanged at $6,000 for 2019. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($19,000 for 2019) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
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Printable Version of 19-P-010
Informational Circular No.: 19-P-011
Effective Date: November 21, 2018
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Addition of Earnings Code ‘PLV’ for Paid Parental Leave
Executive Order 18-19, issued by Governor Colyer on November 21, 2018, establishes a policy that allows Executive Branch State employees under the Governor’s jurisdiction the authority to receive paid parental leave following the birth or adoption of a child. Therefore, all benefits-eligible State of Kansas employees in agencies, departments or other entities under the Governor’s jurisdiction, whether employed in a classified or unclassified position on a full or part-time basis, shall be eligible to receive paid parental leave following the birth or adoption of a child that occurs on or after November 21, 2018. Births or adoptions that occurred prior to November 21, 2018 are not eligible for paid parental leave.
Every parent who is designated as the primary caregiver shall receive six weeks of paid parental leave and every parent who is designated as the secondary caregiver shall receive three weeks of paid parental leave. In addition, paid parental leave authorized under Executive Order 18-19 covers 100% of an eligible employee’s regular rate of pay and while using such leave, employees continue to accrue vacation and sick leave in accordance with applicable rules, regulations and statutes. Please refer to the Office of Personnel Services Bulletin 18-01 for additional information.
A new earnings code has been added to SHARP effective November 21, 2018 to administer the new paid parental leave. The following earnings code is eligible to be used beginning November 21, 2018 for the pay period beginning November 18, 2018 through December 1, 2018 paid December 14, 2018.
Earnings Code Description Short Description Effective Date
PLV Leave-Paid Parental Parental 11/21/2018
SHARP agencies: The Office of Personnel Services has created the PLV (Leave-Paid Parental) Time Reporting Code (TRC) and FMPLV (Lve-FMLA Paid Parental) TRC and has mapped them to the PLV earnings code effective November 21, 2018. The PLV and FMPLV TRC’s are now visible in Time and Labor drop down lists.
The Office of the Chief Financial Officer, Payroll Systems Team, is responsible for adding the new earnings code in the SHARP system. Regents’ institutions are responsible for identifying and completing any necessary changes in their payroll systems if they implement this program.
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Printable Version of 19-P-011
Informational Circular No.: 19-P-012
Effective Date:
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: December 2018 Payroll Processing and Updated December Processing Calendar
As 2018 calendar year-end approaches, the Office of the Chief Financial Officer is making preparations for the issuance of calendar year 2018 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2018 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2019 balances; a corrected W-2 (Form W-2C) for 2018 will not be issued for the employee involved.
FINAL 2018 PAYCHECK
The final on-cycle paychecks for calendar year 2018 will be issued December 28, 2018. Please note that due to the Christmas Holiday, processing of paychecks for pay period ending December 15, 2018 will begin on Monday, December 17, 2018 (normally on Tuesday, December 18, 2018) and will confirm on Wednesday, December 19, 2018 (normally on Friday, December 21, 2018). Payroll transactions for the December 28, 2018 on-cycle paychecks will be posted to SMART on Wednesday night, December 26, 2018. The ‘A’ off-cycle for pay period December 15, 2018 will be processed on Friday, December 21, 2018 (normally on Monday, December 24, 2018). SHARP agencies have until 6:00pm on December 21, 2018 to enter paycheck adjustment requests.
The final off-cycle, which is the ‘B’ cycle for pay period ending December 15, 2018, paychecks for calendar year 2018 will be issued on December 31, 2018 (generated from the off-cycle processed on December 26, 2018).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 26, 2018 to enter paycheck adjustment requests for any 2018 paychecks. Adjustments processed in the December 26, 2018 off-cycle payroll will be reflected on the employee’s 2018 Form W-2. Please remember for SHARP employees only that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2018 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of the Chief Financial Officer, Payroll Section by 5:00 p.m. on Wednesday, December 12, 2018. Please note that agencies can send DA-180 forms after December 12, 2018 for adjustments that are determined to be needed.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 12, 2018 on or before the December 26, 2018 off-cycle. However, if a large volume of DA-180 forms is received on or after December 12, 2018 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2018 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
With the exception of arrearages and refunds for OASDI and/or Medicare for tax years prior to 2019, adjustment requests entered after December 26, 2018 which are adjusting paychecks issued prior to January 1, 2019 will not result in a W-2C; the adjustment will update the employee’s 2019 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 26, 2018 will update the employee’s 2019 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 15, 2018, paid December 28, 2018 are due to the Department of Administration by 4:00 p.m. on December 19, 2018.
Regent on-cycle for the pay period ending December 15, 2018, paid December 28, 2018 will be run on the night of December 20, 2018 (normally run on Monday, December 24, 2018).
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2018 Paycheck Reversals
Regent Institutions must submit all transmittals for 2018 paycheck reversals by 4:00 p.m. on Friday, December 21, 2018 in order to update the employee’s 2018 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2019 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
2018 Adjustments and Supplementals
In order to update employee balances for 2018, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 21, 2018. The Run B off-cycle for the pay period ending December 15, 2018 generated on the night of Wednesday, December 26, 2018 will have a check issue date of December 31, 2018; all activity for this off-cycle will be reflected in the employees’ 2018 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2018 date.
2019 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2019, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 21, 2018, will be considered to be 2019 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2019 business, the employee’s 2019 balances will be updated. These files should contain a ‘C’ indicating current year business.
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2019, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2019 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2019 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 21, 2018 deadline for the December 26, 2018 Run B’s off-cycle payroll will not be processed until the April 15, 2019 off-cycle payroll. The deadline for submitting payroll interface files for the April 15, 2019 off-cycle is 4:00 p.m. on Friday, April 12, 2019.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2018 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 16, 2018 and December 29, 2018 in order for the last 2018 deduction to be taken on the paycheck issued December 28, 2018 if the deduction was taken over 26 pay periods. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2019, agencies can enter a new row effective-dated between December 16, 2018 and December 29, 2018 in order for the first deduction for United Way or Community Health Charities for 2019 to be taken on the January 11, 2019 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 15, 2019 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2019.
A batch process will run the night of December 28, 2018 to establish the fee portion (deduction code UTFXXX) of the 2019 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2019. This process will reduce the 2019 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2019 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 31, 2018 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2019 United Way/Community Health Charities deductions after December 28, 2018, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on November 30, 2018 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created to identify these employees. The worklist will be sent on November 30, 2018 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under Main Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2019. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2019 W-4s. Employees should submit new paper W-4s by December 21, 2018 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 28, 2018 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2019.
The KPAY320 will be processed the evening of December 30, 2018. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2019 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2019 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2019 paper W-4s (for employees claiming exemption from withholding) received between December 30, 2018 and January 2, 2019, agency personnel will need to enter the data with a January 2, 2019 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2019 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. SHaRP employees are encouraged to use the Employee Self Service functionality to file their 2019 K-4’s.
The 2019 Form W-4 will be posted to the Office of the Chief Financial Officer’s website as soon as it is available from the IRS.
The KPAY320 will also enter a new effective-dated row in the SHARP federal tax data records on December 30, 2018 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2019. The new tax data row will be dated January 1, 2019. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2019 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2019 are biweekly except:
-Group Health Insurance (Medical and Dental): semi-monthly, deducted on the first and second pay dates of the month.
-Group Health Insurance (Vision): monthly, deducted on the first pay date of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the second pay date of the month when applicable.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
-Supplemental Voluntary Health Insurance: monthly, deducted on the first pay date of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the second pay date of the month when applicable.
-Long Term Care Insurance (new deduction beginning in Feb, 2019): monthly, deducted on the first pay date of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the second pay date of the month when applicable.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle B cut-off date of December 26, 2018. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2018 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 15, 2018 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2018 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 28, 2018. Please remember that these forms are only for those arrearages that are actively being collected.
On December 30, 2018, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on January 3, 2019 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 3, 2019 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 21, 2018. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between January 3, 2019 and January 7, 2019. Electronic W-2 forms through Employee Self Service will be available on or before January 7, 2019. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2019. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
November/December Calendar
Attached is a revised calendar for the end of November and the month of December 2018 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist.
Attachment
Printable Version of 19-P-012
DH:NTR:abe
Informational Circular No.: 19-P-013
Supersedes Informational Circular No: 18-P-018
Effective Date: January 1, 2019
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2019
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2019 per IRS Notice 1036. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2019. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance has increased to $4,200 for 2019.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2019 has increased to $8,000. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Publication 1494 for 2018 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf. Regents should be aware that the withholding on supplemental wages rate remained at 22% for 2019.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2019 W-4s. The 2019 Form W-4 has been published by the IRS and can be found on the Office of the Chief Financial Officer website at https://admin.ks.gov/resources/document-center.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2018 must file a new 8233 form for calendar year 2019 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Office of the Chief Financial Officer, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Tables for Percentage Method of Withholding
Printable version of 19-P-013
Informational Circular No.: 19-P-014
Supersedes Informational Circular No: 18-P-013
Effective Date: January 1, 2019
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2019
The Internal Revenue Service (IRS) has announced the standard mileage rate will increase to 58 cents beginning January 1, 2019 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 58 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2019 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,700 for a car (up from $15,600 in 2018), and $17,600 (unchanged from 2018) for a passenger truck or van. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
DH:NTR:abe
Printable Version of 19-P-014
Informational Circular No.: 19-P-015
Supersedes Informational Circular No: 18-P-016
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Information Pertaining to Employee 2018 W-2 Statements
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2018 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of January 4, 2019. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after February 4, 2019.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2018 W-2's that were generated for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2018 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2018. The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service (ESS). For those receiving a printed W-2, the form will be printed and sealed in an envelope. Please note that any employees who have retired or separated from state service continue to have access to consent and receive W-2 forms electronically via Employee Self Service for 18 months following separation. However, each retired/separated employee will have his/her consent reset to ensure generation of a mailed copy of his/her W-2 if the former employee does not re-consent/receive the W-2 electronically via Employee Self Service.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.
All paper 2018 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2019. At that time, they will be destroyed.
In cases where the 2018 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2014 through 2018, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service, and then view and print the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who have separated or retired from State service have access to consent to consent/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011, and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2018, 2017, 2016, 2015, or 2014) the reissued W-2 is needed. Duplicate W-2’s for 2014- 2017 are currently available, and duplicate W-2’s for 2018 will be available starting on Wednesday, February 6, 2019.
The Office of the Chief Financial Officer, Statewide Payroll will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Statewide Payroll by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Statewide Payroll. Agencies are requested to submit one blanket request for duplicate 2018 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2018 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Statewide Payroll at telephone number 785-296-7059.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that off-cycle paychecks dated December 31, 2018 are included in the 2018 W-2 amounts.
Attachment A
Attachment B
Printable Version of 19-P-015
DH:NTR:abe
Informational Circular No.: 19-P-016
Supersedes Informational Circular No: 18-P-017
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: 2019 W-2 Production Report Schedule
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2019 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2019 W-2 production reports are scheduled to be generated:
Friday, April 19, 2019
Friday, May 17, 2019
Friday, June 14, 2019
Friday, July 12, 2019
Friday, August 9, 2019
Friday, September 6, 2019
Friday, October 4, 2019
Friday, November 1, 2019
Friday, November 15, 2019
Wednesday, November 27, 2019
Monday, December 9, 2019
Monday, December 16, 2019
Monday, December 23, 2019
Friday, December 27, 2019
Monday, December 30, 2019
Thursday, January 2, 2020 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 report in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. No action is required by the agency on the KTXPR55. Once the W-2’s for 2019 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Printable Version of 19-P-016
DH:NTR:abe
Informational Circular No.: 19-P-017
Effective Date: Immediately
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: United Way of Winfield Name Change
Statewide Payroll has been notified that Winfield United Way (UTD098) and Arkansas City United Way have combined. The new name for this United Way is Cowley County United Way.
The deduction and general deduction tables in SHARP will be updated with the organization’s new name. In addition, the supplier table in SMART has been updated to reflect the new name and address. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 19-P-017
Informational Circular No.: 19-P-019
Supersedes Informational Circular No: 18-P-014
Effective Date: Payroll Period Ending March 9, 2019
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG060
The organization dues for members of Fraternal Order of Police, Lawrence Lodge #2, will change from $13.58 to $15.20 per biweekly payroll period. The new rate will become effective with the payroll period beginning February 24, 2019 and ending March 9, 2019, paid March 22, 2019.
The amounts listed above include the deduction amount (ORG060 deduction code) and the $0.06 service fee (ORF060 deduction code) added together. The new rate for deduction code ORG060 will increase from $13.52 to $15.14 and the fee (ORF060) will remain at $.06 (for a total deduction of $15.20 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
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Printable Version of 19-P-018
Informational Circular No.: 19-P-019
Effective Date: March/April 2019
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: Earl.Brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP FLUID Upgrade and Impact on Payroll Processing Dates in March/April 2019
The Department of Administration is pleased to announce that the SHARP system is being upgraded to a new user interface called FLUID. FLUID will modernize both the navigation and ‘look and feel’ of SHARP. However, the functionality of the SHARP pages (the actions you take when you reach a certain page) is not changing.
Upon logging into SHARP following the upgrade, users will land on a SHARP Homepage containing various tiles. Users will click on the specified tiles to navigate to the desired links on that Homepage. Also, from the SHARP Homepage, users can navigate to either the Payroll, Time and Labor or Workforce Administration Homepages. From the desired Homepage, users will click on the specified tiles and navigate to the appropriate SHARP pages using the left side navigation links. SHARP users can get a Sneak Peek of FLUID at: https://www.admin.ks.gov/offices/personnel-services/sharp/fluid-9-2-training
Fluid Sneak Peak
This informational circular also covers key dates and Payroll/Time and Labor changes in SHARP as a result of the transition to the SHARP FLUID upgrade. On-cycle and off-cycle dates have been changed in March/early April in order to accommodate the transition to FLUID. Please review carefully the information contained in this circular.
Due to the SHARP FLUID upgrade, scheduled to begin Friday night, March 29, 2019, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Agencies should also be aware that additional maintenance is required in mid-March in preparation for the upgrade. SHARP and Employee Self Service will be closed beginning 7:00 AM on Saturday, March 16 through 7:00 PM on Saturday, March 16 due to scheduled maintenance. Agencies are strongly encouraged to notify employees of the dates and times that Employee Self Service will be unavailable to ensure that employees plan ahead for timely access to electronic W-2s.
In addition, SHARP monthly maintenance will begin at 6:00 PM on Saturday, March 23 and continue through 6:00 PM on Sunday, March 24 (or earlier). However, Employee Self Service will remain open for the entire duration of the monthly maintenance timeframe. Agencies should plan accordingly since the following week will be a shortened week for calculating paychecks.
Friday, March 22, 2019
Payday for the payroll period ending March 9, 2019.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending March 23, 2019 submitted to the Department of Administration for processing by 5:00 PM on March 22, 2019. (These files would normally be due Monday, March 25, 2019.) Last opportunity to submit files will be noon on Monday, March 25, 2019.
Regents’ Run C off-cycle payroll files for the period ending March 9, 2019 must be received by the Department of Administration by 4:00 PM on March 22, 2019.
Monday, March 25, 2019
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending March 23, 2019 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on March 25, 2019.
NOTE: Terminations and Retirements must be entered by 6:00 PM on March 25, 2019 and reported time must be submitted (and approved if applicable) by 5:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending March 23, 2019 will be created on Monday, March 25, 2019. (Paysheets would normally be created on Tuesday, March 26, 2019.) For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on March 25, 2019 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending March 23, 2019 will also occur March 25, 2019. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM. After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending March 23, 2019.
The Run C off-cycle for the period ending March 9, 2019 will be processed March 25, 2019. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated March 28, 2019.
Tuesday, March 26, 2019
The second on-cycle preliminary pay calculation for the period ending March 23, 2019 will occur March 26, 2019.
Regents’ on-cycle files for the period ending March 23, 2019 must be received by the Department of Administration by 4:00 PM on March 26, 2019.
Wednesday, March 27, 2019
Final pay confirmation for the on-cycle payroll for the period ending March 23, 2019 will occur March 27, 2019. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on March 27, 2019 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on March 27, 2019 in order to be reflected in the final paycheck created for the employee.
Thursday, March 28, 2019
The Regents’ on-cycle payroll files for the period ending March 23, 2019 will be processed on this date.
Regents’ Run A off-cycle payroll files for the period ending March 23, 2019 must be received by the Department of Administration by 4:00 PM on March 28, 2019. (These files would normally be due Friday, March 29, 2019.)
Friday, March 29, 2019
The Run A off-cycle for the period ending March 23, 2019 will be processed March 29, 2019. (This off-cycle would normally be scheduled for Monday, April 1, 2019.) SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated April 5, 2019. NOTE: This off-cycle is the final payroll cycle run before the FLUID upgrade begins.
The Regents’ Run A off-cycle payroll files for the period ending March 23, 2019 will also be processed on this date.
Saturday, March 30, 2019
SHARP system and Employee Self Service shut down. Transition to FLUID begins.
Sunday, March 31, 2019
SHARP system and Employee Self Service closed. Transition to FLUID continues.
Monday, April 1, 2019
SHARP FLUID system and Employee Self Service open to core users only for validation.
No batch jobs processing.
Tuesday, April 2, 2019
SHARP FLUID system and Employee Self Service open to all users.
Beginning Tuesday, April 2, 2019 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the months of March/April 2019, which highlights key payroll processing activity for these months. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at https://www.admin.ks.gov/resources/informational-circulars.
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Attachment
Printable Version of 19-P-019
Informational Circular No.: 19-P-020
Supersedes Informational Circular No: 14-P-022
Effective Date: Payroll Period Ending April 6, 2019
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG357
The organization dues for members of the AFSCME Council 72, Local 1357, will increase from $15.32 to $19.31 per biweekly payroll period. The new rate will become effective with the payroll period beginning March 24, 2019 and ending April 6, 2019, paid April 19, 2019.
The amounts listed above include the deduction amount (ORG357 deduction code) and the $0.06 service fee (ORF357 deduction code) added together. The new rate for deduction code ORG357 will increase from $15.26 to $19.25 and the fee (ORF357) will remain at $.06 (for a total deduction of $19.31 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
NTR:abe
Printable Version 19-P-020
Informational Circular No.: 19-P-021
Effective Date: June 2019
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: Earl.Brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll/SMART processing schedule changes due to 2019 Fiscal Year End
Due to the upcoming 2019 Fiscal Year End in SMART and the payroll pay check date occurring close to the last day of the fiscal year in SHARP, June 28, 2019, it is necessary to make a few changes to the normal payroll/SMART processing schedules to accommodate the early closing of SMART on Thursday, June 27, 2019.
Regents/Agencies are asked to pay close attention to the changes noted below to file due dates and processing dates for payroll in SHARP and for budget checking and posting of payroll journals in SMART. Please note that the payroll processing changes in this FYE circular are reflected in the CY 2019 on and off cycle payroll processing calendars that were released with payroll informational circular 19-P-003.
Wednesday, June 19, 2019
Regents’ on-cycle payroll files for the period ending June 15, 2019 must be received by the Department of Administration by 4:00 PM on June 19, 2019. (These files would normally be due on Thursday, June 20, 2019).
Regent file sets for the period ending June 15, 2019 ‘A’ off-cycle may be submitted.
SHARP on-cycle payroll pre-calculation for the period ending June 15, 2019 will be processed as normal on this date.
Thursday, June 20, 2019
Regents’ on-cycle files for the period ending June 15, 2019 will be processed on this date. (The Regent’ on-cycle files would normally be processed on Monday, June 24, 2019).
SHARP on-cycle payroll pre-calculation for the period ending June 15, 2019 will be processed as normal on this date.
Friday, June 21, 2019
Regents’ on-cycle payroll journals for the period ending June 15, 2019 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 26, 2019).
Regents’ Run A off-cycle payroll files for the period ending June 15, 2019 must be received by the Department of Administration by 4:00 PM on June 21, 2019. NOTE: If necessary, Regents can work directly with Statewide Payroll to submit off-cycle ‘A’ payroll files for approval on Monday, June 24, 2019, but all files must be approved no later than 3pm on Monday, June 24, 2019 for processing in the ‘A’ off-cycle.
SHARP on-cycle final payroll calculation for the period ending June 15, 2019 will be processed as normal on this date.
Monday, June 24, 2019
SHARP on-cycle payroll journals for the period ending June 15, 2019 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 26, 2019).
NOTE: SHARP and Regents’ off-cycle ‘A’ payroll for the period ending June 15, 2019 will be processed as normal on June 24, 2019. This will be the last payroll cycle for fiscal year 2019.
Tuesday, June 25, 2019
Regents’ and SHARP off-cycle ‘A’ payroll journals for the period ending June 15, 2019 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 26, 2019).
Regents’ Run B off-cycle payroll files for the period ending June 15, 2019 must be received by the Department of Administration by 4:00 PM on June 25, 2019.
Wednesday, June 26, 2019
SHARP and Regents’ off-cycle ‘B’ payroll for the period ending June 15, 2019 will be processed as normal in SHARP on June 26, 2019. This will be the first payroll cycle for fiscal year 2020.
Thursday, June 27, 2019
SMART closed to Agencies.
Friday, June 28, 2019
SMART closed to Agencies.
Payday for the payroll period ending June 15, 2019.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending June 29, 2019 submitted to the Department of Administration for processing by 5:00 PM on June 28, 2019. (These files would normally be due Monday, July 1, 2019.) Last opportunity to submit files will be noon on Monday, July 1, 2019.
Regents’ Run C off-cycle payroll files for the period ending June 15, 2019 must be received by the Department of Administration by 4:00 PM on June 28, 2019.
Monday, July 1, 2019
SMART open to Agencies.
Regents’ and SHARP off-cycle ‘B’ payroll journals for the period ending June 15, 2019 (off-cycle ‘B’ payroll was processed in SHARP on Wednesday, June 26, 2019) will be budget checked and posted in SMART on this date.
SHARP and Regents’ off-cycle ‘C’ payroll for the period ending June 15, 2019 will be processed as normal on July 1, 2019.
NOTE: Due to the July 4, 2019 holiday, paysheets for the SHARP on-cycle payroll for the period ending June 29, 2019 will be created on Monday, July 1, 2019. (Paysheets would normally be created on Tuesday, July 2, 2019.)
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending June 29, 2019 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on July 1, 2019.
Terminations and Retirements must be entered by 6:00 PM on July 1, 2019 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
The first on-cycle preliminary pay calculation for the period ending June 29, 2019 will also occur July 1, 2019. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM. After the final Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM. on July 1, 2019 in order for a paycheck record to be created.
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Printable Version of 19-P-021
Informational Circular No.: 19-P-022
Supersedes Informational Circular No: 18-P-022
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: Joyce.Dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Summary of Fiscal Year End Payroll Processing
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2020 payroll contribution rates will be issued as soon as the information becomes available. There is also informational circular 19-P-021 available regarding the key payroll processing dates related to fiscal year end processing in SHARP and SMART.
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 pay periods ending on or before June 15, 2019 will use fiscal year 2019 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 15, 2019 will use fiscal year 2020 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run A off-cycle (scheduled for June 24, 2019, paid June 28, 2019) for the pay period ending June 15, 2019 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2019 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 23, 2019 and should be completed by Monday morning, June 24, 2019. In that process, a new row will be added to the Department Budget tables with an effective date of June 16, 2019 (beginning date of the first on-cycle payroll charged to FY2020). The Budget End Date will be June 13, 2020.
Agencies should send Combination Code files or any Department Budget Table files for FY2020 changes into Payroll Services by Friday, June 21, 2019. These files will be loaded into SHARP beginning Tuesday, June 25, 2019. Agencies should not enter any rows with an effective date greater than or equal to June 16, 2019 until June 25, 2019. When adding new rows for FY2020, agencies should verify that June 13, 2020 was used as the Budget End Date for FY2020.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Tuesday June 25, 2019 after the ‘A’ off-cycle process has been completed for the June 15, 2019 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 25. Agencies are encouraged to complete all FY2019 payroll adjustments on or before the ‘A’ off-cycle which processes on Monday night, June 24, 2019, since the ‘A’ off-cycle is the last payroll cycle in SHARP for FY2019. Otherwise, any adjustments processed in the ‘B’ off-cycle on Wednesday, June 26, 2019 will be included with FY2020 transactions and will not be included on the KPAYGL5C file until it is run again on Tuesday night, July 2, 2019.
GHI Adjustments
June is a popular retirement month. Many employees will retire by June 15th impacting the amount of GHI for which the employee should be charged for the month of June. In order to avoid processing a refund, MAP should be updated with an employee’s termination date prior to the paycheck for the Pay Period Ending 6/1/2019, if at all possible. This will allow the correct calculation of insurance for the employee in the on-cycle processed for the 6/1/2019 pped. If you have any questions or concerns, contact Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 about event maintenance that may affect claims processing for any employee.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period.Agencies should not change Job Data including the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling.Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation.The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
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Printable Version 19-P-022
Informational Circular No.: 19-P-023
Supersedes Informational Circular No: 18-P-021
Effective Date: July 1, 2019
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: Carmen.Waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R.1-19-9
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of the Chief Financial Officer. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2020 will require entry into the SHARP system at the Payroll Homepage > Employee Payroll/Benefits Data Tile > Create Additional Pay for fringe benefit income. FY2020 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday July 1, 2019 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 29, 2019 (paychecks dated July 12, 2019).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment
Printable Version of 19-P-023
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Informational Circular No.: 19-P-024
Effective Date: Month Day, Year
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Establish New Organization Dues Deduction Codes for JJA
Per notice by the Teamsters Local Union #696, additional deduction codes will be added for membership dues deductions for employees at the Juvenile Justice Authority. The existing deduction codes for Hourly Pay Rate ranges below $20.67 remain unchanged. Currently each organization dues deduction must be entered into SHARP as two separate deduction codes, one for the deduction (ORGXXX) and a corresponding (ORFXXX) row for the $.06 per deduction fee. These bi-weekly deductions of organization dues, effective May 5, 2019, are based on new hourly pay rate ranges as follows:
Hourly Pay Rate Range |
Bi-Weekly Deduction Amount (including the $.06 fee) |
Org. Dues Deduction Code for Local #696 |
Admin Fees Deduction Code for Local #696 |
---|---|---|---|
$20.67 - $21.10 |
$23.50 |
ORG632 |
ORF632 |
$21.11 - $21.55 |
$24.00 |
ORG633 |
ORF633 |
$21.56 - $21.99 |
$24.50 |
ORG634 |
ORF634 |
$22.00 - $22.44 |
$25.00 |
ORG635 |
ORF635 |
$22.45 - $22.88 |
$25.50 |
ORG636 |
ORF636 |
$22.89 - $23.33 |
$26.00 |
ORG637 |
ORF637 |
As a reminder, this organization is only available for membership to employees who work in the specific positions at the Juvenile Justice Authority.
The Office of the Chief Financial Officer, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay.
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Printable Version of 19-P-024
Informational Circular No.: 19-P-025
Supersedes Informational Circular No: 18-P-023
Effective Date: Pay Period Beginning June 16, 2019; Ending June 29, 2019; Paid July 12, 2019
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: Carmen.Waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2020-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 2020. The fiscal year 2020 rates will become effective with the on-cycle payroll period beginning June 16, 2019, ending June 29, 2019 and paid July 12, 2019. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2019.
For Fiscal Year 2020, the employer’s contribution to KPERS Death and Disability Insurance 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 25, 2016 and September 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.
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.
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Attachment A
Attachment B
Attachment C
Printable Version of 19-P-025
Informational Circular No.: 19-P-026
Supersedes Informational Circular No: 11-P-026
Effective Date: Payroll Period Ending June 29, 2019
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Change in Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59
The organization dues for members of the Kansas Game Wardens Fraternal Order of Police Lodge #59, ORG059, will be increased from $15.94 to $17.94 per biweekly payroll period. The service fee will remain $0.06 per biweekly payroll period. The new rate will become effective with the payroll period beginning June 16, 2019 and ending June 29, 2019, paid July 12, 2019.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above.
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Printable Version 19-P-026
Informational Circular No.: 18-P-001
Supersedes Informational Circular No: 17-P-002
Effective Date: Payroll Period Ending September 23, 2017
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for KAPE
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 10, 2017 and ending September 23, 2017, paid October 6, 2017 as follows:
Deduction Code |
Hourly Rate of Pay |
Bi-Weekly Salary |
Dues Deduction |
---|---|---|---|
ORG001 |
$ 13.99 or Less |
$ 1,119.20 or Less |
$12.95 |
ORG002 |
$ 14.00 – 14.99 |
$ 1,119.21 – 1,199.20 |
$13.74 |
ORG003 |
$ 15.00 – 15.99 |
$ 1,199.21 – 1,279.20 |
$14.78 |
ORG004 |
$ 16.00 – 16.99 |
$ 1,279.21 – 1,359.20 |
$18.57 |
ORG005 |
$ 17.00 – 17.99 |
$ 1,359.21 – 1,439.20 |
$19.67 |
ORG006 |
$ 18.00 or Greater |
$ 1,439.21 or Greater |
$20.76 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 18-P-001
Informational Circular No.: 18-P-002
Supersedes Informational Circular No: 17-P-003
Effective Date: Payroll Period Ending September 9, 2017
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: Amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for ORG030
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $30.91 to $31.21 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 27, 2017 and ending September 9, 2017, paid September 22, 2017.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $30.85 to $31.15 and the fee (ORF030) will remain at $.06 (for a total deduction of $31.21 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
DH:NTR:ckw
Printable version of 18-P-002
Informational Circular No.: 18-P-003
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Missouri State withholding tax law change for residents of Missouri working in another state.
The State of Missouri Employer’s Tax Guide was updated in 2017 to reflect a change in the tax law regarding residents of Missouri working in another state. The tax law states that if a Missouri resident employee performs services in a state with an income tax rate that is lower than Missouri, the employer must withhold and remit to Missouri the difference between the states’ withholding requirements. This change has been implemented within the SHARP system for all current employees who reside in Missouri, effective with the paycheck dated August 11, 2017. Regent agencies are responsible for implementing this withholding change in the Regent agency systems for any Missouri resident employed in Kansas.
When an agency hires an employee who resides in Missouri, the agency will have the responsibility to ensure state tax data is set up correctly. In SHARP, when an employee’s home address is entered in personal data, the system will automatically establish a state tax row for both the State of Kansas, and the State of residence. If the employee’s State of residence is Missouri, the agency should not delete the tax row for the state of Missouri. Any additional state tax rows inserted for an employee’s state of residence that is other than Missouri should continue to be deleted when completing the employee tax setup. SHARP will default the Marital Status to Single and Zero withholding allowances for the tax calculation for both Kansas and Missouri. Missouri residents employed in Kansas should complete both the KS W-4 and the MO W-4 Employee’s Withholding Allowance Certificate at the time of hire if the employee wishes to have the additional Missouri withholding.
If the employee does not wish to have the additional required Missouri tax withheld or is claiming exempt status from withholding taxes, the employee must complete the attached Form MO W-4C Withholding Affidavit for Missouri Residents. This form will relieve the State of Kansas from the responsibility of deducting the additional tax amount from the employee’s paycheck. If an employee submits Form MO W-4C, the agency HR staff should delete the Missouri Tax Row in SHARP and retain the Form MO W-4C in the employee’s personnel file.
MO-W-4
MO-W-4C
Printable Version of 18-P-003
DH:NTR:abe
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Informational Circular No.: 18-P-004
Supersedes Informational Circular No: 16-P-022
Effective Date: Paychecks Issued On or After October 6, 2017
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning September 10, 2017 and ending September 23, 2017, paid October 6, 2017
House Bill 2002 section 175, passed in the 2017 legislative session, extended the suspension of employer contributions for KPERS Death and Disability Insurance through the first 6 pay periods of fiscal year 2018. The 2017 moratorium will expire with pay period ending September 23, 2017. As a result, the Office of the Chief Financial Officer, Payroll Services will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning September 10, 2017 and ending September 23, 2017, paid October 6, 2017.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after October 1, 2017 for pay periods ending on and between April 3, 2010 and June 12, 2010, on and between March 19, 2011 and June 11, 2011, on and between March 31, 2012 and June 9, 2012, on and between March 30, 2013 and June 8, 2013 and on and between March 12, 2016 and September 9, 2017 will continue to NOT have the contributions collected and remitted.
The Office of the Chief Financial Officer, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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Printable Version of 18-P-004
Informational Circular No.: 18-P-005
Supersedes Informational Circular No: 17-P-006
Effective Date: Calendar Year 2018
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2018
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2018. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of the Chief Financial Officer must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
DH:NTK:abe
Printable version of 18-P-005
Informational Circular No.: 18-P-006
Effective Date: December 17, 2017
Contact Name: Jude Overton
Ph: (785) 296-2290
Email: jude.overton@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Benefit Plans/Deduction Codes for Group Health Insurance for Plan Year 2018
The Kansas State Employees Health Care Commission recently approved adding three new medical insurance plans (J, N and Q), in addition to the existing Plan A and Plan C options, for State of Kansas employees via payroll deduction. These new medical plans will be offered by Aetna and Blue Cross Blue Shield of Kansas during open enrollment in October 2017 for coverage beginning January 1, 2018.
To implement the new medical insurance payroll deductions, new benefit plans and deduction codes will be added to SHaRP. The new medical insurance payroll deductions will be processed in SHaRP effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018.
The new medical insurance benefit plans and deduction codes effective December 17, 2017 are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
---|---|---|---|---|
10 |
BCJJAT |
BCBS – Plan J AT |
MedicalAT |
BCJJAT |
10 |
BCJJBT |
BCBS – Plan J BT |
MedicalBT |
BCJJBT |
10 |
BCNNAT |
BCBS – Plan N AT |
MedicalAT |
BCNNAT |
10 |
BCNNBT |
BCBS – Plan N BT |
MedicalBT |
BCNNBT |
10 |
BCQQAT |
BCBS – Plan Q AT |
MedicalAT |
BCQQAT |
10 |
BCQQBT |
BCBS – Plan Q BT |
MedicalBT |
BCQQBT |
10 |
AETJAT |
AETNA-Plan J AT |
MedicalAT |
AETJAT |
10 |
AETJBT |
AETNA-Plan J BT |
MedicalBT |
AETJBT |
10 |
AETNAT |
AETNA-Plan N AT |
MedicalAT |
AETNAT |
10 |
AETNBT |
AETNA-Plan N BT |
MedicalBT |
AETNBT |
10 |
AETQAT |
AETNA-Plan Q AT |
MedicalAT |
AETQAT |
10 |
AETQBT |
AETNA-Plan Q BT |
MedicalBT |
AETQBT |
Also, effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018, new employer-only deduction codes will be implemented in SHaRP to assist in processing/tracking the HealthQuest employer contribution rewards paid to employees. These new deduction codes will appear on employee paychecks for each pay period in which an employee’s earned HealthQuest credits are processed.
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
---|---|---|---|---|
67 |
HSAREW |
Health Savings Acct Rewards |
HSARewards |
HSAREW |
68 |
HRAREW |
Health Reimb Acct Rewards |
HRARewards |
HRAREW |
The regular quarterly HSA/HRA employer contribution deduction codes will not change. These deduction codes are HSADR or HSASR for Health Savings Account contributions and HRADR or HRASR for Health Reimbursement Account contributions.
In addition, the voluntary supplemental insurance carrier is changing from Colonial to MetLife effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018. Therefore, new voluntary supplemental insurance benefit plans and after-tax deduction codes effective December 17, 2017 are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
---|---|---|---|---|
29 |
MTAIAT |
MetLife Accident Ins AT
|
VolSuppIns |
MTAIAT |
29 |
MTCIEN |
MetLife Crit Ill High Plan AT
|
VolSuppIns |
MTCIEN |
29 |
MTCIBA |
MetLife Crit Ill Low Plan AT
|
VolSuppIns |
MTCIBA |
29 |
MTHIBA |
MetLife Hosp Ind Low Plan AT
|
VolSuppIns |
MTHIBA |
29 |
MTHIEN |
MetLife Hosp Ind High Plan AT
|
VolSuppIns |
MTHIEN |
The 2017 plan year voluntary supplemental insurance benefit plans/deduction codes created for Colonial will be discontinued effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018. Employees who continue their coverage through Colonial will be direct billed by Colonial for premiums effective in 2018. Colonial will be sending the direct billing information out to impacted employees in the future.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction codes/benefit plans by November 30, 2017.
Printable version of 18-P-006
DH:NTR:ewb
Informational Circular No.: 18-P-007
Supersedes Informational Circular No: 17-P-007
Effective Date: January 1, 2018
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Social Security Wage Base Increase to $128,700 effective January 1, 2018
The Social Security wage base for OASDI will be $128,700 for calendar year 2018. This is a $1,500 increase from the wage base of calendar year 2017 of $127,200. The OASDI tax rate for 2018 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2018 will be $7,979.40. There continues to be no limit on wages subject to the Medicare tax in 2018. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $7,979.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
DH:NTR:ckw
Printable version of 18-P-007
Informational Circular No.: 18-P-008
Supersedes Informational Circular No: 17-P-010
Effective Date: January 1, 2018
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: 2018 Deferred Compensation and Tax Sheltered Annuity Limits
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2018 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to $18,500 (up from $18,000 in 2017) or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $37,000 (up from $36,000 in 2017). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $6,000 for 2018 making the total $24,500. The provision for 2017 was $6,000 making the total for 2017 $24,000.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2018 is the lesser of $55,000 or 100% of compensation, increased from $54,000 for 2017.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $270,000 (for 2017) to $275,000 (for 2018). The $275,000 applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School for the Blind and School for the Deaf employees, the maximum contribution that can be made to the plan is $27,500 ($275,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $38,500 ($275,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $400,000 (for 2017) to $405,000 (for 2018). However, participants should note their maximum annual compensation limit will be $392,857.14, since the $392,857.14 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $55,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) increases to $18,500 for 2018 (up from $18,000 in 2017). The age 50 or older catch-up provision remains unchanged at $6,000 for 2018. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($18,500 for 2018) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
DH:NTR:ckw
Printable version of 18-P-008
Informational Circular No.: 18-P-009
Supersedes Informational Circular No: 17-P-008
Effective Date: November 2017
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll processing schedule changes due to the November 2017 holidays
Friday, November 10, 2017 (Veterans' Day), Thursday, November 23, 2017 and Friday, November 24, 2017 (Thanksgiving Holiday) are designated as officially observed holidays and therefore no batch jobs are scheduled for those nights.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. Please review carefully the information contained in this circular and in the attached partial calendar.
Monday, October 30, 2017
The Run A off-cycle for the period ending October 21, 2017 will be processed October 30, 2017. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 3, 2017.
Regents’ on-cycle files for the period ending October 21, 2017 will also be processed on this date.
Tuesday, October 31, 2017
Regents’ Run B off-cycle payroll files for the period ending October 21, 2017 must be received by the Department of Administration by 4:00 PM on October 31, 2017 in order to be processed on Wednesday, November 1, 2017.
Wednesday, November 1, 2017
The Run B off-cycle for the period ending October 21, 2017 will be processed November 1, 2017. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 6, 2017.
Friday, November 3, 2017
Payday for the payroll period ending October 21, 2017.
First Opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 4, 2017 submitted to the Department of Administration for processing by 5:00 PM on November 3, 2017. (These files would normally be due on Monday, November 6, 2017). Last opportunity to submit files will be noon on Monday, November 6, 2017.
Regents’ Run C off-cycle payroll files for the period ending October 21, 2017 must be received by the Department of Administration by 4:00 PM on November 3, 2017.
Monday, November 6, 2017
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 4, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 6, 2017.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 6, 2017 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 4, 2017 will be created on Monday, November 6, 2017. (Paysheets would normally be created on Tuesday, November 7, 2017.) For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 6, 2017 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 4, 2017 will also occur November 6, 2017. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on November 6, 2017 in order for a paycheck record to be created.
The Run C off-cycle for the period ending October 21, 2017 will be processed November 6, 2017. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 9, 2017.
Tuesday, November 7, 2017
The second on-cycle preliminary pay calculation for the period ending November 4, 2017 will occur November 7, 2017.
Regent file sets for the period ending November 4, 2017 on-cycle and ‘A’ off-cycle may be submitted.
Wednesday, November 8, 2017
The third on-cycle preliminary pay calculation for the period ending November 4, 2017 will occur November 8, 2017.
Regents’ on-cycle payroll files for the period ending November 4, 2017 must be received by the Department of Administration by 4:00 PM on November 8, 2017. Regent file sets for the period ending November 4, 2017 ‘A’ off-cycle may be submitted.
Thursday, November 9, 2017
Final pay confirmation for the on-cycle payroll for the period ending November 4, 2017 will occur November 9, 2017. All employees’ payable time must be approved, by 6:00 PM on November 9, 2017 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 9, 2017 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 4, 2017 must be received by the Department of Administration by 4:00 PM on November 9, 2017.
Friday, November 10, 2017
Veterans Day Holiday
No batch jobs processing
Monday, November 13, 2017
The Run A off-cycle for the period ending November 4, 2017 will be processed November 13, 2017. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 17, 2017.
The Regents’ on-cycle and Run A off-cycle payroll files for the period ending November 4, 2017 will also be processed on this date.
Tuesday, November 14, 2017
Regents’ Run B off-cycle payroll files for the period ending November 4, 2017 must be received by the Department of Administration by 4:00 PM on November 14, 2017.
Wednesday, November 15, 2017
The Run B off-cycle for the period ending November 4, 2017 will be processed November 15, 2017. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 20, 2017.
Friday, November 17, 2017
Payday for the payroll period ending November 4, 2017.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 18, 2017 submitted to the Department of Administration for processing by 5:00 PM on November 17, 2017. (These files would normally be due Monday, November 20, 2017.) Last opportunity to submit files will be noon on Monday, November 20, 2017.
Regents’ Run C off-cycle payroll files for the period ending November 4, 2017 must be received by the Department of Administration by 4:00 PM on November 17, 2017.
Monday, November 20, 2017
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 18, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 20, 2017.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 20, 2017 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 18, 2017 will be created on Monday, November 20, 2017. (Paysheets would normally be created on Tuesday, November 21, 2017.) For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 20, 2017 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 18, 2017 will also occur November 20, 2017. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 18, 2017.
The Run C off-cycle for the period ending November 4, 2017 will be processed November 20, 2017. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 27, 2017. (These checks would normally be dated Thursday, November 23, 2017)
Tuesday, November 21, 2017
The second on-cycle preliminary pay calculation for the period ending November 18, 2017 will occur November 21, 2017.
Regents’ on-cycle files for the period ending November 18, 2017 must be received by the Department of Administration by 4:00 PM on November 21, 2017.
Wednesday, November 22, 2017
Final pay confirmation for the on-cycle payroll for the period ending November 18, 2017 will occur November 22, 2017. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 22, 2017 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 22, 2017 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 18, 2017 must be received by the Department of Administration by 4:00 PM on November 22, 2017.
Thursday, November 23, 2017
Thanksgiving Holiday
No batch jobs scheduled.
Friday, November 24, 2017
Thanksgiving Holiday
No batch jobs scheduled.
Beginning Monday, November 27, 2017 batch jobs will return to the normal payroll schedule. Attached is a partial calendar for the month of November 2017, which highlights key payroll processing activity for the month. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
DH:NTR:abe
Attachment
Printable Version of 18-P-009
Informational Circular No.: 18-P-010
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: December 2017 Payroll Processing and Updated December Processing Calendar
As 2017 calendar year-end approaches, the Office of the Chief Financial Officer is making preparations for the issuance of calendar year 2017 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2017 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2018 balances; a corrected W-2 (Form W-2C) for 2017 will not be issued for the employee involved.
FINAL 2017 PAYCHECK
The final on-cycle paychecks for calendar year 2017 will be issued December 29, 2017. Payroll transactions for the December 29, 2017 on-cycle paychecks will be posted to SMART on Wednesday night, December 27, 2017. The final off-cycle paychecks for calendar year 2017 will be issued on December 29, 2017 (generated from the off-cycle processed on December 26, 2017).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 26, 2017 to enter paycheck adjustment requests for any 2017 paychecks. Adjustments processed in the December 26, 2017 off-cycle payroll will be reflected on the employee’s 2017 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2017 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of the Chief Financial Officer, Payroll Section by 5:00 p.m. on Wednesday, December 13, 2017.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 13, 2017 on or before the December 26, 2017 off-cycle. However, if a large volume of DA-180 forms is received on the December 13, 2017 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2017 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 26, 2017 which are adjusting paychecks issued prior to January 1, 2018 will not result in a W-2C; the adjustment will update the employee’s 2018 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 26, 2017 will update the employee’s 2018 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 16, 2017, paid December 29, 2017 are due to the Department of Administration by 4:00 p.m. on December 20, 2017.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2017 Paycheck Reversals
Regent Institutions must submit all transmittals for 2017 paycheck reversals by 4:00 p.m. on Friday, December 22, 2017 in order to update the employee’s 2017 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2018 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2018 submitted after 4:00 p.m. on December 22, 2017 should default the pay adjust check date to January 1, 2018.
2017 Adjustments and Supplementals
In order to update employee balances for 2017, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 22, 2017. The Run A off-cycle for the pay period ending December 16, 2017 generated on the night of Tuesday, December 26, 2017 will have a check issue date of December 29, 2017; all activity for this off-cycle will be reflected in the employees’ 2017 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2017 date.
2018 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2018, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 22, 2017, will be considered to be 2018 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2018 business, the employee’s 2018 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2018 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2018, agencies should default the pay adjust check date to January 1, 2018).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2018, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2018 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2018 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 22, 2017 deadline for the December 26, 2017 Run A’s off-cycle payroll will not be processed until the April 16, 2018 off-cycle payroll. The deadline for submitting payroll interface files for the April 16, 2018 off-cycle is 4:00 p.m. on Friday, April 13, 2018.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2017 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 17, 2017 and December 30, 2017 in order for the last 2017 deduction to be taken on the paycheck issued December 29, 2017 if the deduction was taken over 26 pay periods. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2018, agencies can enter a new row effective-dated between December 17, 2017 and December 30, 2017 in order for the first deduction for United Way or Community Health Charities for 2018 to be taken on the January 12, 2018 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2018 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2018.
A batch process will run the night of December 29, 2017 to establish the fee portion (deduction code UTFXXX) of the 2018 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2018. This process will reduce the 2018 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2018 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Tuesday, January 2, 2018 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2018 United Way/Community Health Charities deductions after December 29, 2017, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2017 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created to identify these employees. The worklist will be sent on December 1, 2017 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under Main Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2018. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2018 W-4s. Employees should submit new paper W-4s by December 22, 2017 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 29, 2017 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2018.
The KPAY320 will be processed the evening of December 29, 2017. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2018 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2018 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2018 paper W-4s (for employees claiming exemption from withholding) received between December 29, 2017 and January 2, 2018, agency personnel will need to enter the data with a January 2, 2018 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2018 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. SHaRP employees are encouraged to use the Employee Self Service functionality to file their 2018 K-4’s.
The 2018 Form W-4 will be posted to the Office of the Chief Financial Officer’s website as soon as it is available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 29, 2017 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2018. The new tax data row will be dated January 1, 2018. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2018 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2018 are biweekly except:
-Group Health Insurance (Medical and Dental): semi-monthly, deducted on the first and second pay dates of the month.
-Group Health Insurance (Vision): monthly, deducted on the first pay date of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the second pay date of the month when applicable.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
-Supplemental Voluntary Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle A cut-off date of December 26, 2017. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2017 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 16, 2017 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2017 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 27, 2017. Please remember that these forms are only for those arrearages that are actively being collected.
On December 29, 2017, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on January 2, 2018 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 2, 2018 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 22, 2017. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between January 4, 2018 and January 8, 2018. Electronic W-2 forms through Employee Self Service will be available on or before January 8, 2018. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2018. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2017 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment
Printable version of 18-P-010
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Informational Circular No.: 18-P-011
Supersedes Informational Circular No: 17-P-011
Effective Date: Payroll Period Ending December 30, 2017
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG133
The organization dues for members of the Public Service Employees Local Union 1290 P.E. (represents employees at the University of Kansas and the University of Kansas Medical Center)
will increase from $17.14 to $17.60 per biweekly payroll period. The new rate will become effective with the payroll period beginning December 17, 2017 and ending December 30, 2017, paid January 12, 2018.
The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $17.08 to $17.54 and the fee (ORF133) will remain at $0.06 (for a total deduction of $17.60 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
DH:NTR:ckw
Printable version of 18-P-011
Informational Circular No.: 18-P-012
Supersedes Informational Circular No: 18-P-007
Effective Date: January 1, 2018
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Social Security Wage Base Lowered by the SSA to $128,400 from previously announced wage base effective January 1, 2018
The Social Security wage base for OASDI was lowered to $128,400 for calendar year 2018, from $128,700 that the Social Security Administration had previously announced in October 2017. This is a $1,200 increase from the wage base of calendar year 2017 of $127,200. The OASDI tax rate for 2018 will remain at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2018 will be $7,960.80, lowered from the original employee portion of $7,979.40.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
DH:NTR:ckw
Printable version of 18-P-012
Informational Circular No.: 18-P-013
Supersedes Informational Circular No: 17-P-015
Effective Date: January 1, 2018
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2018
The Internal Revenue Service (IRS) has announced the standard mileage rate will increase to 54.5 cents beginning January 1, 2018 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 54.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2018 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,600 for a car (down from $15,900 in 2017), and $17,600 (down from $17,800 in 2017) for a passenger truck or van. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
DH:NTR:ckw
Printable Version of 18-P-013
Informational Circular No.: 18-P-015
Effective Date: January 1, 2018
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Working After Retirement Membership Code and Rule Changes Effective January 1, 2018
New rules for retirees ‘Working After Retirement’ go into effect on January 1, 2018. For payroll purposes this would be effective for the pay period of December 17, 2017 to December 30, 2017, paid on January 12, 2018. The new requirements will result in necessary changes to some of the previous SHARP KPERS benefit plan codes associated with payroll deductions for those employees ‘Working After Retirement.’
Details on which current KPERS benefit plan codes will have a new description for 2018 are listed below.
PLAN TYPE |
BENEFIT PLAN CODE |
NEW DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
70 |
AC |
Working After Ret EEs 1/1/2018 |
KPERS AC |
70 |
ANC |
Non-Covered |
KPERS ANC |
70 |
AXD |
Working After Ret 2018 > $25,000 |
KPERS AXD |
Current codes AU (Retired Nurses) and ALE (KLETC Instructors) will continue to be used with the current descriptions. Current codes PR, AW, AD, AB and ABD will be discontinued effective January 1, 2018.
KPERS recently sent out a reminder to agencies to update employee membership codes in the KPERS system. Agencies may also need to update SHARP effective December 17, 2017 if you have a retiree that is affected by the new rules. Going forward, employees who are in non-covered positions will need to be enrolled in the ‘ANC’ KPERS benefit plan code. The definition of a covered vs non-covered position as provided by KPERS is below.
Covered vs Non-Covered
- A non-covered position is seasonal/temporary or requires less than 1,000 hours of work per year.
- A covered position is not seasonal/temporary and requires at least 1,000 hours of work per year.
Retirees working in a covered position should be enrolled in the ‘AC’ KPERS benefit plan code (statutory rate) effective December 17, 2017. In addition, once the employee has earned $25,000 they need to be enrolled in the ‘AXD’ KPERS benefit plan code (30% rate), effective with the pay period immediately following the period in which the employee crosses the $25,000 earnings threshold, for the remainder of the calendar year. Agencies are responsible for tracking the $25,000 employee earnings limit and subsequently making the necessary benefit plan code changes in SHARP when the earnings limit has been met.
The attachment to this informational circular is the amended Attachment A to Informational Circular 17-P-024 issued previously on June 21, 2017. This amendment deletes the Working After Retirement benefit plan codes no longer in use for 2018.
Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
DH:NTR:ewb
Attachment
Printable Version of 18-P-015
Informational Circular No.: 18-P-016
Supersedes Informational Circular No: 17-P-017
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Information Pertaining to Employee 2017 W-2 Statements
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2017 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of January 5, 2018. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after February 4, 2018.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2017 W-2's that were generated for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2017 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2017. The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service (ESS). For those receiving a printed W-2, the form will be printed and sealed in an envelope. Please note that any employees who have retired or separated from state service continue to have access to consent and receive W-2 forms electronically via Employee Self Service for 18 months following separation. However, each retired/separated employee will have his/her consent reset to ensure generation of a mailed copy of his/her W-2 if the former employee does not re-consent/receive the W-2 electronically via Employee Self Service.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.
All paper 2017 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2018. At that time, they will be destroyed.
In cases where the 2017 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2012 through 2017, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service, and then view and print the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who have separated or retired from State service have access to consent to consent/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011, and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2017, 2016, 2015, 2014, 2013, or 2012) the reissued W-2 is needed. Duplicate W-2’s for 2012- 2016 are currently available, and duplicate W-2’s for 2017 will be available starting on Wednesday, February 7, 2018.
The Office of the Chief Financial Officer, Statewide Payroll will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Statewide Payroll by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Statewide Payroll. Agencies are requested to submit one blanket request for duplicate 2017 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2017 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Statewide Payroll at telephone number 785-296-7059.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 29, 2017 are included in the 2017 W-2 amounts.
Attachment A
Attachment B
Printable version of 18-P-016
DH:NTR:abe
Informational Circular No.: 18-P-017
Supersedes Informational Circular No: 17-P-018
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: 2018 W-2 Production Report Schedule
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2018 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2018 W-2 production reports are scheduled to be generated:
Friday, March 23, 2018
Friday, April 20, 2018
Friday, May 18, 2018
Friday, June 15, 2018
Friday, July 13, 2018
Friday, August 10, 2018
Friday, September 7, 2018
Friday, October 5, 2018
Friday, November 2, 2018
Friday, November 16, 2018
Friday, November 30, 2018
Monday, December 10, 2018
Monday, December 17, 2018
Wednesday, December 26, 2018
Monday, December 31, 2018
Thursday, January 3, 2019 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 report in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. No action is required by the agency on the KTXPR55. Once the W-2’s for 2018 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Printable Version of 18-P-017
DH:NTR:abe
Informational Circular No.: 18-P-018
Supersedes Informational Circular No: 17-P-014
Effective Date: February 9, 2018
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After February 9, 2018
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2018 per IRS Notice 1036. The IRS has directed that employers should implement the 2018 withholding rates as soon as possible but not later than February 15, 2018. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after February 9, 2018. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance has increased to $4,150 for 2018.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2018 has increased to $7,850. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Publication 1494 for 2018 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf. Regents should be aware that the withholding on supplemental wages rate has decreased to 22% for 2018.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2018 W-4s. The 2018 Form W-4 has not currently been published by the IRS. The Office of the Chief Financial Officer will post it to their website as soon as it becomes available.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2017 must file a new 8233 form for calendar year 2018 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Office of the Chief Financial Officer, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
DH:NTR:abe
Attachment: Tables for Percentage Method of Withholding
Printable Version of 18-P-018
Informational Circular No.: 18-P-019
Effective Date: January 1, 2018
Contact Name: Nancy Ruoff Statewide Payroll and Accounting, Jackie Craine Statewide Policy
Ph: (785) 296-2853, (785) 296-2934
Email: Nancy.Ruoff@ks.gov, Jackie.Craine@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Changes to Taxability of Moving Expense Reimbursements
This Informational Circular (IC) is issued to announce the following changes to the process for the reimbursement of qualified moving expenses to state employees:
The federal Tax Cuts and Job Act (H.R.1) enacted into law on December 22, 2017 amends Internal Revenue Code – Title 26, § 132(g) suspending the existing exclusion for qualified moving expense reimbursements from gross income.
Effective January 1, 2018 all qualified moving expense reimbursements are subject to taxes and are to be reimbursed directly to the employee through payroll (SHARP) using the Moving Expense Taxable (MVT) earnings code.
As authorized by KSA 75-3225(d), the Secretary of Administration intends to amend KAR 1-16-2b to require that moving expenses be reimbursed directly to the employee and to no longer allow payments to a commercial carrier. Therefore, moving related direct billed (commercial carrier, lodging, or airfare) payments are no longer authorized to be paid via the SMART Accounts Payable module or agency procurement card. Nor should any moving related reimbursements be paid to the employee through the SMART Travel & Expense module due to the taxable fringe benefit reporting requirements.
All moving expenses are to be paid after the move has occurred and all the necessary documents and receipts have been submitted by the employee for reimbursement. As authorized by KSA 75-3225, per KAR 1-16-2b(b)(1), the amount to be paid for moving household and personal effects may not in any case exceed the amount of the actual reimbursable moving expenses verified by receipts and bill of lading or the amount of moving expenses for moving twelve thousand (12,000) pounds of household goods by commercial carrier, whichever is the lesser amount. The agency is required to determine the actual amount of the moving expense to be reimbursed to the employee and notify the appropriate agency HR/Payroll staff of the employee and the amount to be added to the employee’s timesheet as MVT earnings. Agency HR/Payroll staff should include the reimbursement on the employee’s timesheet in the pay period following submission of the documentation.
As specified in KSA 76-727(b)(2), applicable to state educational institutions, the amount of the reimbursement cannot exceed the amount of the actual moving expenses verified by receipts or the amount of moving expenses for moving 12,000 pounds of household goods, whichever is the lesser amount.
Documentation for all moving expense reimbursements paid through SHARP with the MVT code should be maintained at the agency.
Approval to Reimburse Qualified Moving Expenses
The approval process for both in-state and out-of-state authorizations are not impacted by the taxability of the moving expense reimbursements.
As required by KSA 75-3225(a), an agreement must be signed by the agency head prior to authorizing the reimbursement of moving expenses to an employee using Form DA-22, Agreement for Reimbursement of Moving Expenses.
If an applicant is from out-of-state; prior approval of the Secretary of Administration and the Governor should be obtained using Form DA-29, Request to Pay Expenses of Out of State to reimburse moving expenses. (KSA 76-727 (3c) exempts state educational institutions and the Board of Regents from obtaining prior approval of the governor).
Policy Manual 3,607 - Employee Moving Expense Reimbursement has been updated and will be available on or before March 30th on the Department of Administration website.
DH:nr/jc
Printable Version of 18-P-019
Informational Circular No.: 18-P-020
Effective Date: June 2018
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll/SMART processing schedule changes due to 2018 Fiscal Year End
Due to the upcoming 2018 Fiscal Year End in SMART and the payroll pay check date occurring close to the last day of the fiscal year in SHARP, June 29, 2018, it is necessary to make a few changes to the normal payroll/SMART processing schedules to accommodate the early closing of SMART on Thursday, June 28, 2018.
Regents/Agencies are asked to pay close attention to the changes noted below to file due dates and processing dates for payroll in SHARP and for budget checking and posting of payroll journals in SMART.
Wednesday, June 20, 2018
Regents’ on-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 20, 2018. (These files would normally be due on Thursday, June 21, 2018).
Regent file sets for the period ending June 16, 2018 ‘A’ off-cycle may be submitted.
SHARP on-cycle payroll pre-calculation for the period ending June 16, 2018 will be processed as normal on this date.
Thursday, June 21, 2018
Regents’ on-cycle files for the period ending June 16, 2018 will be processed on this date. (The Regent’ on-cycle files would normally be processed on Monday, June 25, 2018).
SHARP on-cycle payroll pre-calculation for the period ending June 16, 2018 will be processed as normal on this date.
Friday, June 22, 2018
Regents’ on-cycle payroll journals for the period ending June 16, 2018 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 27, 2018).
Regents’ Run A off-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 22, 2018. NOTE: If necessary, Regents can work directly with Statewide Payroll to submit off-cycle ‘A’ payroll files for approval on Monday, June 25, 2018, but all files must be approved no later than 3pm on Monday, June 25, 2018 for processing in the ‘A’ off-cycle.
SHARP on-cycle final payroll calculation for the period ending June 16, 2018 will be processed as normal on this date.
Monday, June 25, 2018
SHARP on-cycle payroll journals for the period ending June 16, 2018 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 27, 2018).
NOTE: SHARP and Regents’ off-cycle ‘A’ payroll for the period ending June 16, 2018 will be processed as normal on June 25, 2018. This will be the last payroll cycle for fiscal year 2018.
Tuesday, June 26, 2018
Regents’ and SHARP off-cycle ‘A’ payroll journals for the period ending June 16, 2018 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 27, 2018).
Regents’ Run B off-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 26, 2018.
Wednesday, June 27, 2018
SHARP and Regents’ off-cycle ‘B’ payroll for the period ending June 16, 2018 will be processed as normal in SHARP on June 27, 2018. This will be the first payroll cycle for fiscal year 2019.
Thursday, June 28, 2018
SMART closed to Agencies.
Friday, June 29, 2018
SMART closed to Agencies.
Payday for the payroll period ending June 16, 2018.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending June 30, 2018 submitted to the Department of Administration for processing by 5:00 PM on June 29, 2018. (These files would normally be due Monday, July 2, 2018.) Last opportunity to submit files will be noon on Monday, July 2, 2018.
Regents’ Run C off-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 29, 2018.
Monday, July 2, 2018
SMART open to Agencies.
Regents’ and SHARP off-cycle ‘B’ payroll journals for the period ending June 16, 2018 (off-cycle ‘B’ payroll was processed in SHARP on Wednesday, June 27, 2018) will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Friday, June 29, 2018).
SHARP and Regents’ off-cycle ‘C’ payroll for the period ending June 16, 2018 will be processed as normal on July 2, 2018.
NOTE: Due to the July 4, 2018 holiday, paysheets for the SHARP on-cycle payroll for the period ending June 30, 2018 will be created on Monday, July 2, 2018. (Paysheets would normally be created on Tuesday, July 3, 2018.)
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending June 30, 2018 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on July 2, 2018.
Terminations and Retirements must be entered by 6:00 PM on July 2, 2018 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
The first on-cycle preliminary pay calculation for the period ending June 30, 2018 will also occur July 2, 2018. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on July 2, 2018 in order for a paycheck record to be created.
On-Cycle Revised
Off-Cycle Revised
Printable Version of 18-P-020
DH:NTR:ewb
Informational Circular No.: 18-P-021
Supersedes Informational Circular No: 17-P-023
Effective Date: July 1, 2018
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R.1-19-9
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of the Chief Financial Officer. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2019 will require entry into the SHARP system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2019 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday July 2, 2018 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 30, 2018 (paychecks dated July 13, 2018).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment
Printable version of 18-P-021
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Informational Circular No.: 18-P-022
Supersedes Informational Circular No: 17-P-022
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Summary of Fiscal Year End Payroll Processing
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2019 payroll contribution rates will be issued as soon as the information becomes available. There is also informational circular 18-P-020 available regarding the key payroll processing dates related to fiscal year end processing in SHARP and SMART.
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 pay periods ending on or before June 16, 2018 will use fiscal year 2018 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 16, 2018 will use fiscal year 2019 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run A off-cycle (scheduled for June 25, 2018, paid June 29, 2018) for the pay period ending June 16, 2018 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2018 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 24, 2018 and should be completed by Monday morning, June 25, 2018. In that process, a new row will be added to the Department Budget tables with an effective date of June 17, 2018 (beginning date of the first on-cycle payroll charged to FY2019). The Budget End Date will be June 15, 2019.
Agencies should send Combination Code files or any Department Budget Table files for FY19 changes into Payroll Services by Friday, June 22, 2018. These files will be loaded into SHARP beginning Tuesday, June 26, 2018. Agencies should not enter any rows with an effective date greater than or equal to June 17, 2018 until June 26, 2018. When adding new rows for FY2019, agencies should verify that June 15, 2019 was used as the Budget End Date for FY2019.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Tuesday June 26, 2018 after the ‘A’ off-cycle process has been completed for the June 16, 2018 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 26. Agencies are encouraged to complete all FY18 payroll adjustments on or before the ‘A’ off-cycle which processes on Monday night, June 25, 2018, since the ‘A’ off-cycle is the last payroll cycle in SHARP for FY18. Otherwise, any adjustments processed in the ‘B’ off-cycle on Wednesday, June 27, 2018 will be included with FY19 transactions and will not be included on the KPAYGL5C file until it is run again on Tuesday night, July 3, 2018.
GHI Adjustments
June is a popular retirement month. Many employees will retire by June 16th impacting the amount of GHI for which the employee should be charged for the month of June. In order to avoid processing a refund, MAP should be updated with an employee’s termination date prior to the paycheck for the Pay Period Ending 6/2/2018, if at all possible. This will allow the correct calculation of insurance for the employee in the on-cycle processed for the 6/2/18 pped. The paycheck for pped 6/16/18 is the 3rd check of the month so no insurance deductions or refunds will be processed on that paycheck. If you have any questions or concerns, contact Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 about event maintenance that may affect claims processing for any employee.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:
1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls are generally created on the Tuesday night following the end of the payroll period. Agencies should not change Job Data including the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling. Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
Printable version of 18-P-022
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Informational Circular No.: 18-P-023
Supersedes Informational Circular No: 17-P-024
Effective Date: Pay Period Beginning June 17, 2018; Ending June 30, 2018; Paid July 13, 2018
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: Carmen.Waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2019-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 2019. The fiscal year 2019 rates will become effective with the on-cycle payroll period beginning June 17, 2018, ending June 30, 2018 and paid July 13, 2018. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2018.
For Fiscal Year 2019, the employer’s contribution to KPERS Death and Disability Insurance 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 25, 2016 and September 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.
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.
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Attachment A
Attachment B
Attachment C
Printable Version of 18-P-023
Informational Circular No.: 17-P-001
Supersedes Informational Circular No: 15-P-034
Effective Date: July 1, 2016
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff
(Original Signature on File)
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of the Chief Financial Officer. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2017 will require entry into the SHARP v9.1 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2017 rate changes for maintenance should be entered into SHARP by 6:00 pm on Tuesday, July 5, 2016 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending July 2, 2016 (paychecks dated July 15, 2016).
Please note that paychecks for payroll period ending June 18, 2016 (paychecks dated July 1, 2016) should have had new FY2017 rates included as well. Agencies will need to review payroll to ensure that no adjustments are needed.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
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Printable version of 17-P-001
Informational Circular No.: 17-p-002
Supersedes Informational Circular No: 16-p-001
Effective Date: Payroll Period Ending September 24, 2016
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for KAPE
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 11, 2016 and ending September 24, 2016, paid October 7, 2016 as follows:
Deduction Code |
Hourly Rate of Pay |
Bi-Weekly Salary |
Dues Deduction |
---|---|---|---|
ORG001 |
$ 13.99 or Less |
$ 1,119.20 or Less |
$12.89 |
ORG002 |
$ 14.00 – 14.99 |
$ 1,119.21 – 1,199.20 |
$13.68 |
ORG003 |
$ 15.00 – 15.99 |
$ 1,199.21 – 1,279.20 |
$14.71 |
ORG004 |
$ 16.00 – 16.99 |
$ 1,279.21 – 1,359.20 |
$18.51 |
ORG005 |
$ 17.00 – 17.99 |
$ 1,359.21 – 1,439.20 |
$19.61 |
ORG006 |
$ 18.00 or Greater |
$ 1,439.21 or Greater |
$20.70 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable version of 17-P-002
Informational Circular No.: 17-P-003
Supersedes Informational Circular No: 16-P-002
Effective Date: Payroll Period Ending August 27, 2016
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for ORG030
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $30.81 to $30.91 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 14, 2016 and ending August 27, 2016, paid September 9, 2016.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $30.75 to $30.85 and the fee (ORF030) will remain at $.06 (for a total deduction of $30.91 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable version of 17-P-003
Informational Circular No.: 17-P-004
Effective Date: January 1, 2017
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Roth Plan Type/Benefit Plans/Post-Tax Deduction Code for Deferred Compensation
In recent years, Congress extended to 457 plans the option of allowing contributions to a Roth 457 account, using post-tax contributions. As a result of 2016 legislation, KPERS will expand the KPERS 457 plan so that participants can choose between pre-tax and post-tax contributions effective January 1, 2017.
To implement this new deferred compensation option, a new Roth post-tax deduction code, benefit plan type and benefit plans will be added to SHaRP. The first Roth deferred compensation payroll deductions will be processed in SHaRP effective for the payroll period beginning December 18, 2016, ending December 31, 2016, paid January 13, 2017.
The new Roth Deferred Compensation benefit plan type, benefit plans and after-tax deduction code are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
---|---|---|---|---|---|
4R |
457DRA |
Deferred Compensation-Roth |
DefCompRth |
457DRA |
Deferred Compensation-Roth |
4R |
457DRA |
Deferred Compensation-Roth |
DefCompRth |
457DRC |
Deferred Compensation-Roth |
4R |
457DRA |
Deferred Compensation-Roth |
DefCompRth |
457DRR |
Deferred Compensation-Roth |
The three new Benefit Plans are established for the following employee deferred comp categories:
Benefit Plan Employee Category
457DRA Roth-regular contribution (all participants)
457DRC Roth- catch-up provision for participants who are 50 years of age or older
457DRR Roth- special catch-up for participants who are within three years of normal retirement age
The contribution maximums for the benefit plans will include both the pre- tax and post-tax deferred compensation plans added together. Currently, the maximum contribution amounts are listed below.
Benefit Plans 457DEF and 457DRA - $18,000
Benefit Plans 457DEC and 457DRC - $24,000
Benefit Plans 457DER and 457DRR - $36,000
Note: New maximums for 2017 have not been published as of this publication.
Refer to payroll informational circular 15-P-012 for additional information on Deferred Compensation and Tax Sheltered Annuity Limits.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction/benefit plans by November 1, 2016.
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Printable version of 17-P-004
Informational Circular No.: 17-P-005
Effective Date: January 1, 2017
Contact Name: Jude Overton
Ph: (785) 296-2290
Email: jude.overton@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Benefit Plan Type/Benefit Plans/Deduction Codes for Voluntary Supplemental Insurance
The Employee Health Care Commission recently passed a motion authorizing the offering of voluntary supplemental employee insurance products to State of Kansas employees via payroll deduction. These new products will be offered by Colonial Life during open enrollment in October, 2016 for coverage beginning January 1, 2017.
To implement this new Voluntary Supplemental Insurance payroll deduction, a new benefit plan type, benefit plans and deduction codes will be added to SHaRP. The new Voluntary Supplemental Insurance payroll deductions will be processed in SHaRP effective for the payroll period beginning December 18, 2016, ending December 31, 2016, paid January 13, 2017.
The new Voluntary Supplemental Insurance benefit plan type, benefit plans and deduction codes are:
PLAN |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
---|---|---|---|---|---|
29 |
VSPIAT |
Voluntary Supp Insurance-AT |
VolSuppIns |
VSPIAT |
Voluntary Supp Insurance-AT |
29 |
VSPIBT |
Voluntary Supp Insurance-BT |
VolSuppIns |
VSPIBT |
Voluntary Supp Insurance-BT |
As previously communicated to Regent institutions, the new Voluntary Supplemental Insurance payroll deduction will be included on the State Employee Health Plan BERF file provided to SHaRP and to each Regent payroll system to complete the Colonial Life deduction via the existing payroll process. Employees with multiple coverages with Colonial Life will be ‘rolled’ together into one payroll deduction by Tax Class. Please note that during 2017 payroll deductions will only be offered on an after-tax basis; pre-tax payroll deductions are anticipated to be available for qualifying deductions beginning in January, 2018.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction/benefit plans by November 1, 2016.
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Printable Version of 17-P-005
Informational Circular No.: 17-P-006
Effective Date: Month Day, Year
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2017
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2017. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. Please note these schedules are subject to change during the go-live for the SHARP upgrade to version 9.2 in May 2017. Additional communications detailing any changes to these schedules will be issued at that time.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of the Chief Financial Officer must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Printable Version of 17-P-006
Informational Circular No.: 17-P-007
Supersedes Informational Circular No: 15-P-010
Effective Date: January 1, 2017
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Social Security Wage Base Increase to $127,200 effective January 1, 2017
The Social Security wage base for OASDI will be $127,200 for calendar year 2017. This is a $8,700 increase from the wage base of calendar year 2016 of $118,500. The OASDI tax rate for 2017 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2017 will be $7,886.40. There continues to be no limit on wages subject to the Medicare tax in 2017. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $7,886.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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Printable version of 17-P-007
Informational Circular No.: 17-P-008
Supersedes Informational Circular No: 16-P-007
Effective Date: November 2016
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll processing schedule changes due to the November 2016 holidays
Friday, November 11, 2016 (Veterans' Day), Thursday, November 24, 2016 and Friday, November 25, 2016 (Thanksgiving Holiday) are designated holidays and therefore no batch jobs are scheduled for those nights.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. Please review carefully the information contained in this circular and in the attached partial calendar.
Monday, October 31, 2016
The Run A off-cycle for the period ending October 22, 2016 will be processed October 31, 2016. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 4, 2016.
Regents’ on-cycle files for the period ending October 22, 2016 will also be processed on this date.
Tuesday, November 1, 2016
Regents’ Run B off-cycle payroll files for the period ending October 22, 2016 must be received by the Department of Administration by 4:00 PM on November 1, 2016 in order to be processed on Wednesday, November 2, 2016.
Wednesday, November 2, 2016
The Run B off-cycle for the period ending October 22, 2016 will be processed November 2, 2016. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 7, 2016.
Friday, November 4, 2016
Payday for the payroll period ending October 22, 2016.
First Opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 5, 2016 submitted to the Department of Administration for processing by 5:00 PM on November 4, 2016. (These files would normally be due on Monday, November 7, 2016). Last opportunity to submit files will be noon on Monday, November 7, 2016.
Regents’ Run C off-cycle payroll files for the period ending October 22, 2016 must be received by the Department of Administration by 4:00 PM on November 4, 2016.
Monday, November 7, 2016
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 5, 2016 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 7, 2016.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 7, 2016 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 5, 2016 will be created on Monday, November 7, 2016. (Paysheets would normally be created on Tuesday, November 8, 2016.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 7, 2016 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 5, 2016 will also occur November 7, 2016. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on November 7, 2016 in order for a paycheck record to be created.
The Run C off-cycle for the period ending October 22, 2016 will be processed November 7, 2016. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 10, 2016.
Tuesday, November 8, 2016
The second on-cycle preliminary pay calculation for the period ending November 5, 2016 will occur November 8, 2016.
Regent file sets for the period ending November 5, 2016 on-cycle and ‘A’ off-cycle may be submitted.
Wednesday, November 9, 2016
The third on-cycle preliminary pay calculation for the period ending November 5, 2016 will occur November 9, 2016.
Regents’ on-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 9, 2016. Regent file sets for the period ending November 5, 2016 ‘A’ off-cycle may be submitted.
Thursday, November 10, 2016
Final pay confirmation for the on-cycle payroll for the period ending November 5, 2016 will occur November 10, 2016. All employees’ payable time must be approved, by 6:00 PM on November 10, 2016 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 10, 2016 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 10, 2016.
Friday, November 11, 2016
Veterans Day Holiday
No batch jobs processing
Monday, November 14, 2016
The Run A off-cycle for the period ending November 5, 2016 will be processed November 14, 2016. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 18, 2016.
The Regents’ on-cycle and Run A off-cycle payroll files for the period ending November 5, 2016 will also be processed on this date.
Tuesday, November 15, 2016
Regents’ Run B off-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 15, 2016.
Wednesday, November 16, 2016
The Run B off-cycle for the period ending November 5, 2016 will be processed November 16, 2016. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 21, 2016.
Friday, November 18, 2016
Payday for the payroll period ending November 5, 2016.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 19, 2016 submitted to the Department of Administration for processing by 5:00 PM on November 18, 2016. (These files would normally be due Monday, November 21, 2016.) Last opportunity to submit files will be noon on Monday, November 21, 2016.
Regents’ Run C off-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 18, 2016.
Monday, November 21, 2016
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 19, 2016 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 21, 2016.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 21, 2016 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 19, 2016 will be created on Monday, November 21, 2016. (Paysheets would normally be created on Tuesday, November 22, 2016.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 21, 2016 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 19, 2016 will also occur November 21, 2016. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 19, 2016.
The Run C off-cycle for the period ending November 5, 2016 will be processed November 21, 2016. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 28, 2016. (These checks would normally be dated Thursday, November 24, 2016)
Tuesday, November 22, 2016
The second on-cycle preliminary pay calculation for the period ending November 19, 2016 will occur November 22, 2016.
Regents’ on-cycle files for the period ending November 19, 2016 must be received by the Department of Administration by 4:00 PM on November 22, 2016.
Wednesday, November 23, 2016
Final pay confirmation for the on-cycle payroll for the period ending November 19, 2016 will occur November 23, 2016. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 23, 2016 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 23, 2016 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 19, 2016 must be received by the Department of Administration by 4:00 PM on November 23, 2016.
Thursday, November 24, 2016
Thanksgiving Holiday
No batch jobs scheduled.
Friday, November 25, 2016
Thanksgiving Holiday
No batch jobs scheduled.
Attached is a partial calendar for the month of November 2016, which highlights key payroll processing activity for the month. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
DH:NTR:abe
Attachment
Printable version of 17-P-008
Informational Circular No.: 17-P-009
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: December 2016 Payroll Processing and Updated December Processing Calendar
As 2016 calendar year-end approaches, the Office of the Chief Financial Officer is making preparations for the issuance of calendar year 2016 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2016 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2017 balances; a corrected W-2 (Form W-2C) for 2016 will not be issued for the employee involved.
FINAL 2016 PAYCHECK
The final on-cycle paychecks for calendar year 2016 will be issued December 30, 2016. Payroll transactions for the December 30, 2016 on-cycle paychecks will be posted to SMART on Wednesday night, December 28, 2016. The final off-cycle paychecks for calendar year 2016 will be issued on December 30, 2016 (generated from the off-cycle processed on December 27, 2016).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 27, 2016 to enter paycheck adjustment requests for any 2016 paychecks. Adjustments processed in the December 27, 2016 off-cycle payroll will be reflected on the employee’s 2016 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2016 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of the Chief Financial Officer, Payroll Section by 5:00 p.m. on Wednesday, December 14, 2016.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 14, 2016 on or before the December 27, 2016 off-cycle. However, if a large volume of DA-180 forms is received on the December 14, 2016 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2016 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 27, 2016 which are adjusting paychecks issued prior to January 1, 2017 will not result in a W-2C; the adjustment will update the employee’s 2017 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2016 will update the employee’s 2017 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 17, 2016, paid December 30, 2016 are due to the Department of Administration by 4:00 p.m. on December 22, 2016.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2016 Paycheck Reversals
Regent Institutions must submit all transmittals for 2016 paycheck reversals by 4:00 p.m. on Friday, December 23, 2016 in order to update the employee’s 2016 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2017 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2017 submitted after 4:00 p.m. on December 23, 2016 should default the pay adjust check date to January 1, 2017.
2016 Adjustments and Supplementals
In order to update employee balances for 2016, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 23, 2016. The Run A off-cycle for the pay period ending December 17, 2016 generated on the night of Tuesday, December 27, 2016 will have a check issue date of December 30, 2016; all activity for this off-cycle will be reflected in the employees’ 2016 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2016 date.
2017 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2017, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 23, 2016, will be considered to be 2017 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2017 business, the employee’s 2017 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2017 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2017, agencies should default the pay adjust check date to January 1, 2017).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2017, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2017 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2017 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2016 deadline for the December 27, 2016 Run A’s off-cycle payroll will not be processed until the April 17, 2017 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 3, 2017. The deadline for submitting payroll interface files for the April 17, 2017 off-cycle is 4:00 p.m. on Friday, April 14, 2017.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2016 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 18, 2016 and December 31, 2016 in order for the last 2016 deduction to be taken on the paycheck issued December 30, 2016 if the deduction was taken over 26 pay periods. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2017, agencies can enter a new row effective-dated between December 18, 2016 and December 31, 2016 in order for the first deduction for United Way or Community Health Charities for 2017 to be taken on the January 13, 2017 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 17, 2017 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2017.
A batch process will run the night of December 30, 2016 to establish the fee portion (deduction code UTFXXX) of the 2017 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2017. This process will reduce the 2017 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2017 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Tuesday, January 3, 2017 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2017 United Way/Community Health Charities deductions after December 30, 2016, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2016 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created to identify these employees. The worklist will be sent on December 1, 2016 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under Main Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2017. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2017 W-4s. Employees should submit new paper W-4s by December 23, 2016 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 30, 2016 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2017.
The KPAY320 will be processed the evening of December 30, 2016. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2017 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2017 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2017 paper W-4s (for employees claiming exemption from withholding) received between December 30, 2016 and January 3, 2017, agency personnel will need to enter the data with a January 2, 2017 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2017 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. SHaRP employees are encouraged to use the Employee Self Service functionality to file their 2017 K-4’s.
The 2017 Form W-4 will be posted to the Office of the Chief Financial Officer’s website as soon as it is available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 30, 2016 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2017. The new tax data row will be dated January 1, 2017. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2017 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2017 are biweekly except:
-Group Health Insurance (Medical and Dental): semi-monthly, deducted on the first and second pay dates of the month.
-Group Health Insurance (Vision): monthly, deducted on the first pay date of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
-Supplemental Voluntary Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle A cut-off date of December 27, 2016. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2016 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 17, 2016 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2016 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 28, 2016. Please remember that these forms are only for those arrearages that are actively being collected.
On December 30, 2016, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on January 3, 2017 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 3, 2017 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2016. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between January 5, 2017 and January 9, 2017. Electronic W-2 forms through Employee Self Service will be available on or before January 9, 2017. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2017. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2016 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment
Printable version of 17-P-009
DH:NTR:abe
Informational Circular No. |
17-P-010 |
|
Supersedes Informational Circular No: |
15-P-012 |
|
Effective Date: |
January 1, 2017 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2017 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit remains unchanged at $18,000 or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit remains unchanged at $36,000. The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $6,000 for 2017 making the total unchanged at $24,000.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2017 is the lesser of $54,000 or 100% of compensation, increased from $53,000 for 2016.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $265,000 (for 2016) to $270,000 (for 2017). The $270,000 applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School for the Blind and School for the Deaf employees, the maximum contribution that can be made to the plan is $27,000 ($270,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $37,800 ($270,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $390,000 (for 2016) to $400,000 (for 2017). However, participants should note their maximum annual compensation limit will be $385,714.30, since the $385,714.30 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $54,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) remains unchanged at $18,000 for 2017. The age 50 or older catch-up provision remains unchanged at $6,000 for 2017. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($18,000 for 2017) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
Printable version of 17-P-010
DH:NTR:ckw
Informational Circular No.: 17-P-011
Supersedes Informational Circular No: 16-P-010
Effective Date: Payroll Period Ending December 31, 2016
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: (amanda.entress@ks.gov)
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG133
The organization dues for members of the Public Service Employees Local Union 1290 P.E. (represents employees at the University of Kansas and the University of Kansas Medical Center) will increase from $14.37 to $17.14 per biweekly payroll period. The new rate will become effective with the payroll period beginning December 18, 2016 and ending December 31, 2016, paid January 13, 2017.
The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $14.31 to $17.08 and the fee (ORF133) will remain at $0.06 (for a total deduction of $17.14 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
Printable Version of 17-P-011
DH:NTR:abe
Informational Circular No.: 17-P-012
Supersedes Informational Circular No: 15-P-015
Effective Date: Payroll Period Ending December 31, 2016
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: (amanda.entress@ks.gov)
Approval: Nancy Ruoff (Original Signature on File)
Summary: Change in Organization Dues Deduction for SEAK Members
The organization dues for the State Employees Association of Kansas (SEAK) will be increased from $7.50 to $9.25 for regular members (ORG050) and from $4.50 to $6.25 for single, head of household members (ORG051) per biweekly payroll period. The new rates will become effective with the payroll period beginning December 18, 2016 and ending December 31, 2016, paid January 13, 2017.
Currently, organization dues must be entered into SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code. In this case, the new rate for deduction code ORG050 will increase from $7.44 to $9.19 and the fee (ORF050) will remain at $.06 (for a total of $9.25 per biweekly payroll period). The new rate for deduction code ORG051 will increase from $4.44 to $6.19 and the fee (ORF051) will remain at $.06 (for a total of $6.25 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems effective with the payroll period noted above.
Printable version of 17-P-012
DH:NTR:ckw
Informational Circular No.: 17-P-013
Effective Date: Immdeiately
Contact Name: Amanda Entress SHARP - Statewide Payroll, Nancy Haufler SMART - Statewide Accouting
Ph: (785) 296-3887, (785) 296-5368
Email: amanda.entress@ks.gov, nancy.haufler@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Account Codes for KPERS Working After Retirement 3rd Party/Independent Contractor Expenditure Tracking
As a result of the implementation of KPERS Working After Retirement (WAR) 3rd Party/Independent Contractor member contributions, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code is eligible to be used starting immediately.
Account Code Description Short Description
518101 ER KPERS WAR 3rd PTY/CNSLNT SHARP REQ
This account code is to be used to track non-payroll employer contributions for KPERS WAR 3rd Party/Independent Contractor member type ACTR that are not tracked in SHARP. Agencies are reminded that they will need to work with KPERS to establish reporting procedures and billing frequencies for these members. As these member contributions are not tracked in SHARP agencies are required to be billed via a SMART interfund for amounts due to KPERS. Agencies should use SMART account code 518101(ER KPERS WAR 3rd PTY/CNSLNT) to record the expense side of the interfund.
Any interfunds that have been processed using any SMART account code other than 518101 will need to be corrected by creating a journal voucher in the Accounts Payable module, not Interfund module See the How to Enter a Journal Voucher job aid for instruction on entering the AP journal voucher. The payment method on the Payments tab of the journal voucher may need to be changed to ‘CHK’ in order to save the journal voucher. Submit a ManageEngine Service Desk ticket if you need additional assistance.
Printable version of 17-P-013
DH:NTR:abe
Informational Circular No.: 17-P-014
Supersedes Informational Circular No: 16-P-011
Effective Date: January 1, 2017
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2017
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2017. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2017. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance remains unchanged at $4,050 for 2017.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2017 has increased to $2,300. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Publication 1494 for 2017 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2016 to all SHARP employees who were exempt from federal withholding in 2016. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2017. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2017 W-4s. The 2017 Form W-4 has not currently been published by the IRS. The Office of the Chief Financial Officer will post it to their website as soon as it becomes available. Employees should submit their new W-4s as soon as possible to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 30, 2016 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2017.
The KPAY320 will process during the batch cycle generated on the evening of December 30, 2016. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2017 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’.
For any Form W-4s for 2017 received after December 30, 2016, agency personnel will need to enter the data with a January 2, 2017 effective date. Agency Workflow Administrators also will need to change the effective date to January 2, 2017 for any electronic FormsW-4s for 2017 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2016 must file a new 8233 form for calendar year 2017 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 that will process on December 30, 2016, will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2017. The new tax data row will be dated January 1, 2017. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2017 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 30, 2016. The report will be available in the agency directory on the MVS on Tuesday, January 2, 2017. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Office of the Chief Financial Officer, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Tables for Percentage Method of Withholding
Printable version of 17-P-014
Informational Circular No.: 17-P-015
Supersedes Informational Circular No: 16-P-014
Effective Date: January 1, 2017
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2017
The Internal Revenue Service (IRS) has announced the standard mileage rate will decrease to 53.5 cents beginning January 1, 2017 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 53.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2017 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,900 for a car (unchanged from 2016), and $17,800 (up from $17,700 in 2016) for a passenger truck or van. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
Printable version of 17-P-015
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Informational Circular No.: 17-016
Supersedes Informational Circular No: 14-P-024
Effective Date: Payroll Period Ending January 14, 2017
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG037
The organization dues for members of the FOP Lodge #37 will change from $20.31 to $25.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 1, 2017 and ending January 14, 2017, paid January 27, 2017.
The amounts listed above include the deduction amount (ORG037 deduction code) and the $0.06 service fee (ORF037 deduction code) added together. The new rate for deduction code ORG037 will increase from $20.25 to $24.94 and the fee (ORF037) will remain at $.06 (for a total deduction of $25.00 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 17-P-016
Informational Circular No.: 17-P-017
Supersedes Informational Circular No: 16-P-015
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Information Pertaining to Employee 2016 W-2 Statements
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2016 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of January 6, 2017. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after February 5, 2017.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2016 W-2's that were generated for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2016 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2016. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service (ESS). For those receiving a printed W-2, the form will be printed and sealed in an envelope. Please note that any employees who have retired or separated from state service continue to have access to consent and receive W-2 forms electronically via Employee Self Service for 18 months following separation. However, retired/separated employees will have his/her consent reset in order to ensure generation of a mailed copy of his/her W-2 if the former employee does not re-consent/receive the W-2 electronically via Employee Self Service.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.
All paper 2016 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2016. At that time, they will be destroyed.
In cases where the 2016 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2010 through 2016, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service, and then view and print the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who have separated or retired from State service have access to consent to consent/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2016, 2015, 2014, 2013, 2012, 2011, or 2010) the reissued W-2 is needed. Duplicate W-2’s for 2010- 2015 are currently available, and duplicate W-2’s for 2016 will be available starting on Wednesday, February 8, 2017.
The Office of the Chief Financial Officer, Payroll Services will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2016 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2016 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-7059.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 30, 2016 are included in the 2016 W-2 amounts.
Printable Version of 17-P-017
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Informational Circular No.: 17-P-018
Supersedes Informational Circular No: 16-P-016
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: <insert summary information here>
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2017 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2017 W-2 production reports are scheduled to be generated:
Friday, February 10, 2017
Friday, March 10, 2017
Friday, April 21, 2017
Friday, May 19, 2017
Friday, June 16, 2017
Friday, July 14, 2017
Friday, August 11, 2017
Friday, September 8, 2017
Friday, October 6, 2017
Friday, November 3, 2017
Friday, November 17, 2017
Monday, December 4, 2017
Monday, December 11, 2017
Monday, December 18, 2017
Tuesday, December 26, 2017
Tuesday, January 2, 2018
Thursday, January 4, 2018 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by the Office of the Chief Financial Officer. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2017 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Printable Version of 17-P-018
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Informational Circular No.: 17-P-019
Supersedes Informational Circular No: 13-P-013
Effective Date: Payroll Period Ending February 11, 2017
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for KOSE
The organization dues for members of the Kansas Organization of State Employees (KOSE) will be changing effective with the payroll period beginning January 29, 2017 and ending February 11, 2017, paid February 24, 2017 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Dues Deduction |
---|---|---|
ORG502 | $ 13.99 or Less | $17.43 |
ORG503 | $ 14.00 - 14.99 | $18.02 |
ORG504 | $ 15.00 - 15.99 | $19.12 |
ORG505 | $ 16.00 - 16.99 | $20.21 |
ORG506 | $ 17.00 - 17.99 | $21.31 |
ORG507 | $18.00 or Greater | $22.40 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG502-507 deduction codes) and the $0.06 service fee (ORF502-507 deduction codes) added together.
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KOSE dues deductions. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 24, 2017.
Printable version of 17-P-019
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Informational Circular No.: 17-P-020
Effective Date: May 2017
Contact Name: Earl Brynds - OCFO, Brent Smith - OPS
Ph: (785) 296-5376, (785) 296-1432
Email: earl.brynds@ks.gov, brent.smith@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP 9.2 Upgrade-Payroll/Time and Labor Changes and Impact on Payroll Processing Dates in May 2017
This informational circular covers key dates and Payroll/Time and Labor changes in SHARP as a result of the transition to the SHARP version 9.2 Upgrade. On-cycle and off-cycle dates have been changed in May in order to accommodate the transition to v9.2. Please review carefully the information contained in this circular and in the calendar attached.
Due to the SHARP 9.2 Upgrade, scheduled to begin Friday night, May 12, 2017, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, May 5, 2017
Payday for the payroll period ending April 22, 2017.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending May 6, 2017 submitted to the Department of Administration for processing by 5:00 PM on May 5, 2017. (These files would normally be due Monday, May 8, 2017.) Last opportunity to submit files will be noon on Monday, May 8, 2017.
Regents’ Run C off-cycle payroll files for the period ending April 22, 2017 must be received by the Department of Administration by 4:00 PM on May 5, 2017.
Last day to load new combination codes. No new combination codes will be loaded until after the 9.2 environment is live on May 16, 2017.
Monday, May 8, 2017
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending May 6, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on May 8, 2017.
NOTE: Terminations and Retirements must be entered by 6:00 PM on May 8, 2017 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending May 6, 2017 will be created on Monday, May 8, 2017. (Paysheets would normally be created on Tuesday, May 9, 2017.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on May 8, 2017 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending May 6, 2017 will also occur May 8, 2017. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) in SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending May 6, 2017.
The Run C off-cycle for the period ending April 22, 2017 will be processed May 8, 2017. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated May 11, 2017.
Tuesday, May 9, 2017
The second on-cycle preliminary pay calculation for the period ending May 6, 2017 will occur May 9, 2017.
Regents’ on-cycle files for the period ending May 6, 2017 must be received by the Department of Administration by 4:00 PM on May 9, 2017. (These files would normally be due Thursday, May 11, 2017.)
Wednesday, May 10, 2017
Final pay confirmation for the on-cycle payroll for the period ending May 6, 2017 will occur May 10, 2017. (Final pay confirmation would normally occur Friday, May 12, 2017). For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. All employees’ payable time must be approved, by 6:00 PM on May 10, 2017 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on May 10, 2017 in order to be reflected in the final paycheck created for the employee.
Thursday, May 11, 2017
The Regents’ on-cycle files for the period ending May 6, 2017 will be processed.
Regents’ Run A off-cycle payroll files for the period ending May 6, 2017 must be received by the Department of Administration by 4:00 PM on May 11, 2017. (These files would normally be due Friday, May 12, 2017.)
Friday, May 12, 2017
The Run A off-cycle for the period ending May 6, 2017 will be processed May 12, 2017. (This off-cycle would normally be scheduled for Monday, May 15, 2017.) SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated May 19, 2017. NOTE: This off-cycle is the final payroll cycle run in v9.1.
Saturday, May 13, 2017
SHARP system shut down. Data conversion for transition to v9.2 begins. Regent’s institutions should hold all interface files until the SHARP 9.2 system comes back up on the morning of May 16, 2017.
Monday, May 15, 2017
Upgraded SHARP system open to Central Department of Administration upgrade team members only for validation.
Tuesday, May 16, 2017
SHARP system open to all users. Normal Payroll Processing Schedule resumes.
Regents’ Run B off-cycle payroll files for the period ending May 6, 2017 must be received by the Department of Administration by 4:00 PM on May 16, 2017.
Wednesday, May 17, 2017
The Run B off-cycle for the period ending May 6, 2017 will be processed May 17, 2017. Paychecks for the Run B off-cycle will be dated May 22, 2017.
Note: This is the first payroll processed in v9.2.
Attached is a partial calendar for the month of May 2017, which highlights key payroll processing activity for the month. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
Additional Key Payroll/Time and Labor Changes for Transition to 9.2
As a result of the SHARP 9.2 upgrade, the following is a brief summary of additional key Payroll/Time and Labor changes that are being implemented in SHARP effective beginning May 16, 2017.
Time and Labor
- The look and feel of the electronic timesheet has changed. The Department ID is now visible via a pop up box when hovering over the employee’s Job Title. Additional job attributes are also visible in the pop up Job Information box. There are also some new folder tabs on the timesheet which contain key Reported Time and Payable Time information. Managers and Timekeepers will approve timesheets individually so that online timesheet edits are invoked. Managers can no longer approve time via the Time Summary page. Individual timesheets must be pulled up to approve time.
WorkCenters
- New WorkCenter functionality is being offered through both Payroll and Time and Labor. Through the WorkCenter, some agency users with the assigned security roles will be able to run a few centrally maintained queries for the first time ever in SHARP. For the Time and Labor WorkCenter, initial queries will be available for Reported Time (Timesheet) for multiple time periods as well as for Payable Time for one pay period. Another Time and Labor query will be initially available for Time Reporter Data like employee’s Workgroup, Taskgroup, etc. Depending on system performance with this new functionality, additional queries may be added to the WorkCenter in the future.
- For Payroll, four queries will initially be available in the Payroll WorkCenter for the assigned agency users. These centrally maintained queries are intended for agencies to run during pay calc week to help identify/resolve certain scenarios on employee paychecks before final pay calc. The initial payroll queries will be available to identify calculated checks with ADV (Advance) earnings, checks with an arrearage collection (ADVNCE or ADJUST deductions), checks with WCH (Workers Comp Hours) earnings code and a KPERS deduction, and calculated checks that are missing a KPERS deduction.
Payroll
- The Direct Deposit account numbers will be masked except for the last four characters of the account number in the following SHARP system locations:
- The Net Pay Distribution area on the Paycheck Deductions tab under the Review Paycheck page.
- The Net Pay Distribution area on the PDF pay advice document under View Paycheck in Employee Self-Service.
- The Distribution area on the employee Request Direct Deposit page (enrollment page).
- The entire account number is still visible on the Direct Deposit enrollment page either in correction mode or by clicking on the ‘+’ in the upper right of the page (NOTE: don’t save the resulting new row that is added from clicking on the ‘+’).
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Printable Version of 17-P-020
Informational Circular No.: 17-P-021
Effective Date: June 2017
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll/SMART processing schedule changes due to 2017 Fiscal Year End
Due to the upcoming 2017 Fiscal Year End in SMART and the payroll pay check date occurring on the last day of the fiscal year in SHARP, June 30, 2017, it is necessary to make a few changes to the normal payroll/SMART processing schedules to accommodate the early closing of SMART on Wednesday, June 28, 2017.
Regents/Agencies are asked to pay close attention to the changes noted below to file due dates and processing dates for payroll in SHARP and for budget checking and posting of payroll journals in SMART.
Wednesday, June 21, 2017
Regents’ on-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 21, 2017. (These files would normally be due on Thursday, June 22, 2017).
Regent file sets for the period ending June 17, 2017 ‘A’ off-cycle may be submitted.
SHARP on-cycle payroll pre-calculation for the period ending June 17, 2017 will be processed as normal on this date.
Thursday, June 22, 2017
Regents’ on-cycle files for the period ending June 17, 2017 will be processed on this date. (The Regent’ on-cycle files would normally be processed on Monday, June 26, 2017).
SHARP on-cycle payroll pre-calculation for the period ending June 17, 2017 will be processed as normal on this date.
Friday, June 23, 2017
Regents’ on-cycle payroll journals for the period ending June 17, 2017 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 28, 2017).
Regents’ Run A off-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 23, 2017. NOTE: If necessary, Regents can work directly with Statewide Payroll to submit off-cycle ‘A’ payroll files for approval on Monday, June 26, 2017, but all files must be approved no later than 3pm on Monday, June 26, 2017 for processing in the ‘A’ off-cycle.
SHARP on-cycle final payroll calculation for the period ending June 17, 2017 will be processed as normal on this date.
Monday, June 26, 2017
SHARP on-cycle payroll journals for the period ending June 17, 2017 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 28, 2017).
NOTE: SHARP and Regents’ off-cycle ‘A’ payroll for the period ending June 17, 2017 will be processed as normal on June 26, 2017. This will be the last payroll cycle for fiscal year 2017.
Tuesday, June 27, 2017
Regents’ and SHARP off-cycle ‘A’ payroll journals for the period ending June 17, 2017 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 28, 2017).
Regents’ Run B off-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 27, 2017.
Wednesday, June 28, 2017
SMART closed to Agencies.
SHARP and Regents’ off-cycle ‘B’ payroll for the period ending June 17, 2017 will be processed as normal in SHARP on June 28, 2017. This will be the first payroll cycle for fiscal year 2018.
Thursday, June 29, 2017 through Friday, June 30, 2017
SMART closed to Agencies.
Regents’ Run C off-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 30, 2017.
Monday, July 3, 2017
SMART open to Agencies.
Regents’ and SHARP off-cycle ‘B’ payroll journals for the period ending June 17, 2017 (off-cycle ‘B’ payroll was processed in SHARP on Wednesday, June 28, 2017) will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Friday, June 30, 2017).
SHARP and Regents’ off-cycle ‘C’ payroll for the period ending June 17, 2017 will be processed as normal on July 3, 2017.
NOTE: Due to the July 4, 2017 holiday, paysheets for the SHARP on-cycle payroll for the period ending July 1, 2017 will be created on Monday, July 3, 2017. (Paysheets would normally be created on Tuesday, July 4, 2017.)
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending July 1, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on July 3, 2017.
Terminations and Retirements must be entered by 6:00 PM on July 3, 2017 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
The first on-cycle preliminary pay calculation for the period ending July 1, 2017 will also occur July 3, 2017. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on July 3, 2017 in order for a paycheck record to be created.
Printable Version of 17-P-021
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Informational Circular No.: 17-P-022
Supersedes Informational Circular No: 16-P-023
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Summary of Fiscal Year End Payroll Processing
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2018 payroll contribution rates will be issued as soon as the information becomes available. There is also informational circular 17-P-021 available regarding the key payroll processing dates related to fiscal year end processing in SHARP and SMART.
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 pay periods ending on or before June 17, 2017 will use fiscal year 2017 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 17, 2017 will use fiscal year 2018 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run A off-cycle (scheduled for June 26, 2017, paid June 30, 2017) for the pay period ending June 17, 2017 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2017 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 25, 2017 and should be completed by Monday morning, June 26, 2017. In that process, a new row will be added to the Department Budget tables with an effective date of June 18, 2017 (beginning date of the first on-cycle payroll charged to FY2018). The Budget End Date will be June 17, 2018.
Agencies should send Combination Code files or any Department Budget Table files for FY18 changes into Payroll Services by Friday, June 23, 2017. These files will be loaded into SHARP beginning Monday, June 26, 2017. Agencies should not enter any rows with an effective date greater than or equal to June 18, 2017 until after the FY2018 insert has been completed. When adding new rows for FY2018, agencies should verify that June 17, 2018 was used as the Budget End Date for FY2018.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Tuesday June 27, 2017 after the ‘A’ off-cycle process has been completed for the June 17, 2017 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 27. Agencies are encouraged to complete all FY17 payroll adjustments on or before the ‘A’ off-cycle which processes on Monday night, June 26, 2017, since the ‘A’ off-cycle is the last payroll cycle in SHARP for FY17. Otherwise, any adjustments processed in the ‘B’ off-cycle on Wednesday, June 28, 2017 will be included with FY18 transactions and will not be included on the KPAYGL5C file until it is run again on Wednesday night, July 5, 2017.
GHI Adjustments
As a reminder, GHI adjustments can only be processed for terminated employees. Contact SEHP Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 at Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan about event maintenance that may affect claims processing for any active employees.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period. Agencies should not change the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling. Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
Printable Version of 17-P-022
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Informational Circular No.: 17-P-023
Supersedes Informational Circular No: 17-P-001
Effective Date: July 1, 2017
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Annual review of housing, food service, and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of the Chief Financial Officer. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2017 will require entry into the SHARP system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2018 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday July 3, 2017 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending July 1, 2017 (paychecks dated July 14, 2017).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment
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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
Email: carmen.waters@ks.gov
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.
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Attachment A
Attachment B
Attachment C
Printable Version of 17-P-024
Informational Circular No.: 17-P-025
Effective Date: August 1, 2017
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: Carmen.Waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: US Bank is the new payroll Paycard provider effective 8/1/17
The Office of the Chief Financial Officer, Statewide Payroll has signed a new contract for payroll Paycard services with US Bank featuring the US Bank FOCUS Paycard program. Employees that currently utilize the Skylight payroll paycard will have the option to continue to use their existing Skylight paycard or transition to the new US Bank FOCUS Paycard program.
The FOCUS Paycard program will expand the features and ATM networks available to State of Kansas employees who choose to participate in the FOCUS Paycard program.
Some of the key features for FOCUS Paycard program participants include:
- Expanded ATM network including US Bank, Allpoint, and MoneyPass ATMs
- U.S. Bank FOCUS Mobile App to access account, check balance, and view transactions
- Available interest-bearing savings account feature
- Text/Email alerts, online bill pay, and more!
Statewide Payroll is working with the US Bank transition team to implement the new paycard program by August 1, 2017. Agencies will be receiving a request from Statewide Payroll to provide the agency-specific information required to set up the administrative portal for the US Bank FOCUS Paycard program. The process for issuing a FOCUS Paycard will be similar to the existing process including instant-issue packs, auto-inventory replenishment options, and on-line instant-issue card enrollment. US Bank and Statewide Payroll will provide training for agency HR/Payroll staff on the US Bank FOCUS Paycard administrative portal in late July. Additional information will be sent out as it is available.
Agencies are asked to continue to use the Skylight paycard for any new employees requesting a Paycard through July 31, 2017. Effective August 1, 2017, agencies will issue the US Bank FOCUS Paycard to new or existing employees seeking to utilize a paycard as part of their payroll payment solution.
Questions regarding the new Paycard program can be directed to Carmen Waters at 785-296-7059 or by email at Carmen.waters@ks.gov, or to Amanda Entress at 785-296-3887 or by email at Amanda.entress@ks.gov.
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Printable Version of 17-P-025
Informational Circular No.: 17-P-026
Supersedes Informational Circular No: 15-P-018
Effective Date: July 1, 2017
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New State Withholding Tax Tables Effective for Paychecks Issued On or After July 1, 2017
The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2017. Please note that the standard deduction for one withholding allowance remains unchanged at $ 2,250.00 per year in calendar year 2017. The attached tables are to be used in computing state tax withholding for wages paid on or after January 1, 2017. In order to use the attached tables, income must be annualized. To annualize income, multiply state taxable income for the current bi-weekly pay period by twenty-six pay periods. All checks issued on or after July 1, 2017, including adjustments processed for checks that were originally issued prior to July 1, 2017, will use the new withholding rates.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system to implement the new withholding tax rates. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Tables for Percentage Method of Withholding
Printable version of 17-P-026
Informational Circular No.: 16-P-001
Supersedes Informational Circular No: 15-P-003
Effective Date: Payroll Period Ending September 12, 2015
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: Amanda.Entress@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for KAPE
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning August 30, 2015 and ending September 12, 2015, paid September 25, 2015 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 13.99 or Less | $ 1119.20 or Less | $12.83 |
ORG002 | $ 14.00 - 14.99 | $ 1119.21 - 1199.20 | $13.62 |
ORG003 | $ 15.00 - 15.99 | $ 1199.21 - 1279.20 | $14.65 |
ORG004 | $ 16.00 - 16.99 | $ 1279.21 - 1359.20 | $18.45 |
ORG005 | $ 17.00 - 17.99 | $ 1259.21 - 1439.20 | $19.55 |
ORG006 | $ 18.00 or Greater | $ 1439.21 or Greater | $20.64 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Informational Circular No.: 116-P-002
Supersedes Informational Circular No: 15-P-002
Effective Date: Payroll Period Ending August 15, 2015
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: Amanda.Entress@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes of ORG030
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $30.50 to $30.81 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 2, 2015 and ending August 15, 2015, paid August 28, 2015.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $30.44 to $30.75 and the fee (ORF030) will remain at $.06 (for a total deduction of $30.81 per biweekly payroll period).
The Office of the Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Informational Circular No.: 16-P-003
Supersedes Informational Circular No: 10-P-018
Effective Date: Payroll Period Beginning August 30, 2015 and Ending September 12, 2015, Paid September 25, 2015
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for ORG281
The organization dues for members of the Kansas State Troopers Association will increase from $16.85 to $20.00 per bi-weekly pay period. The new rate will become effective with the payroll period beginning August 30, 2015 and ending September 12, 2015, paid September 25, 2015.
The amounts listed above include the deduction amount (ORG281 deduction code) and the $0.06 service fee (ORF281 deduction code) added together. The new rate for deduction code ORG281 will increase from $16.79 to $19.94 and the fee (ORF281) will remain at $0.06 (for a total deduction of $20.00 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 25, 2015.
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Informational Circular No.: 16-P-004
Effective Date: September 13, 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Service Buyback Deduction Code for Members of KPERS 3
Pursuant to Sub House Bill (HB) 2333 passed in the 2012 legislature, a new Kansas Public Employees Retirement System KPERS 3 cash balance retirement plan was created for new hires under the KPERS Regular retirement program beginning January 1, 2015. This plan includes new employees hired after January 1, 2015 and inactive KPERS Tier 1 and Tier 2 members who are not vested and return to work January, 2015 and thereafter. Beginning with the fourth quarter of calendar year 2015, KPERS 3 members will be allowed to purchase back previous years of service. Therefore, a new KPERS 3 Buyback deduction code will be added in SHARP effective for the payroll period beginning September 13, 2015, ending September 26, 2015, paid October 9, 2015, as follows:
PLAN TYPE | BEN PLAN/DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION |
---|---|---|---|
4V | KPERB3 | KPERS Buyback-Tier3 | KPERBuybck |
(Note: this code does not apply to the corrections, law enforcement or judges retirement plans)
The KPERB3 service buybacks will be set up differently in the Savings Plan table than the current service buybacks for Tier 1 and 2 members which are calculated as a percentage of pay. The KPERB3 service buybacks will be set up and calculated as a flat amount each pay period for a fixed amount of time with a beginning and ending date. However, the final flat amount payment will possibly need to be changed in order to complete the service purchase.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ Institutions are responsible for ensuring that these changes are reflected in their individual systems.
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Informational Circular No.: 16-P-005
Effective Date: January 1, 2016
Contact Name: Heather DeBusk
Ph: (785) 296-2434
Email: heather.debusk@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New General Deduction Codes for Dependent Child Group Life
The KPERS Board has approved the implementation of Dependent Child Group Life through payroll deduction. In order for employees to be eligible for Dependent Child Group Life, the employee needs to be employed in a KPERS covered position. However, for KPERS KP&F (Kansas Police and Fireman) members only, employees need to be enrolled in Optional Group Life before they are eligible for Dependent Child Group Life. Regent employees covered by the Death and Disability plan or the Deferred Compensation employees who are covered by the Death and Disability plan would also be eligible for Dependent Child Group Life. Open enrollment for this new benefit will be conducted in October 2015.
For this type of coverage, Minnesota Life will not be collecting any information on the covered children. Therefore, since no child information will be stored in SHaRP, these deductions will be processed on employee paychecks as general deductions.
Coverage for Dependent Child Group Life will be effective January 1, 2016. The new general deduction codes will be added to SHaRP October 25, 2015. The first deduction will be processed effective for the payroll period beginning January 3, 2016, ending January 16, 2016, paid January 29, 2016.
The new Dependent Child Group Life after-tax deduction codes are:
PLAN TYPE | DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION | COVERAGE | MONTHLY PREMIUM |
---|---|---|---|---|---|
00 | CHLIF1 | Dep Child Group Life 1 | CHGL1 | $10,000 | $1.00 |
00 | CHLIF2 | Dep Child Group Life 2 | CHGL2 | $20,000 | $2.00 |
These general deduction codes will be set up on the Deduction Table to only deduct on the second paycheck of the month, similar to the other OGL deduction codes. There will not be an administrative fee associated with these deduction codes.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.
Questions regarding the system set-up/interfaces for this new payroll deduction can be directed to Earl Brynds (Earl.Brynds@da.ks.gov or 785.296.5376) or to Heather DeBusk (Heather.DeBusk@da.ks.gov or 785.296.2434).
Questions regarding the child group life benefit should be directed to Minnesota Life at:
Email: topekabranchoffice@securian.com
In Topeka: (785) 354-0783
Toll Free: 1-877-215-1476
Or contact the KPERS Info line at 1-888-275-5737 or in Topeka at (785) 296-6166 and they will direct calls for help with Dependent Child OGL questions.
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Printable Version of 16-P-005
Informational Circular No.: 16-P-006
Supersedes Informational Circular No: 15-P-008
Effective Date: Calendar Year 2016
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: (earl.brynds@da.ks.gov)
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2016
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2016. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of the Chief Financial Officer must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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2016 On-cycle
2016 Off-cycle
Printable Version of 16-P-006
Informational Circular No. 16-P-007
Supersedes Informational Circular No: 15-P-011
Effective Date: November 2015
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: (joyce.dickerson@da.ks.gov)
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll processing schedule changes due to the SHARP/SMART Upgrades and the November 2015 holidays
This informational circular addresses key dates and changes in SHARP as a result of the PeopleTools upgrade to version 8.54 and the SMART upgrade to version 9.2 beginning at 6:00 p.m. on Thursday, November 5, 2015. In addition, Wednesday, November 11, 2015 (Veterans' Day), Thursday, November 26, 2015 and Friday, November 27, 2015 (Thanksgiving Holiday) are designated holidays and therefore no batch jobs are scheduled for those nights.
Due to the SHARP PeopleTools upgrade, SMART upgrade and the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. Please review carefully the information contained in this circular and in the attached partial calendar.
Monday, November 2, 2015
The Run A off-cycle for the period ending October 24, 2015 will be processed November 2, 2015. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 6, 2015.
Regents’ on-cycle files for the period ending October 24, 2015 will also be processed on this date.
Tuesday, November 3, 2015
Regents’ Run B off-cycle payroll files for the period ending October 24, 2015 must be received by the Department of Administration by 4:00 PM on November 3, 2015 in order to be processed on Wednesday, November 4, 2015.
Wednesday, November 4, 2015
The Run B off-cycle for the period ending October 24, 2015 will be processed November 4, 2015. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 9, 2015.
Thursday, November 5, 2015
Regents’ Run C off-cycle payroll files for the period ending October 24, 2015 must be received by the Department of Administration by 4:00 PM on November 5, 2015.
SHARP system (Including Employee Self-service [ESS]) shut down at 6:00 PM. Transition to PeopleTools v8.54 begins. No batch jobs scheduled.
Note: SMART system also shut down at 6:00 PM for transition to v9.2 upgrade.
Friday, November 6, 2015
SHARP/ESS system shut down. Transition to PeopleTools v8.54 continues.
No batch jobs scheduled.
SMART system shut down. Transition to v9.2 upgrade continues.
Payday for the payroll period ending October 24, 2015.
Saturday, November 7, 2015
SHARP/ESS system shut down. Transition to PeopleTools v8.54 continues.
No batch jobs scheduled.
SMART system shut down. Transition to v9.2 upgrade continues.
Sunday, November 8, 2015
SHARP/ESS system shut down. NOTE: SHARP system open to Central Department of Administration/OITS core users only.
SMART system shut down. Transition to v9.2 upgrade continues.
Monday, November 9, 2015
SHARP/ESS system open to all users.
SMART system shut down. Transition to v9.2 upgrade continues.
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 7, 2015 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 9, 2015.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 9, 2015 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 7, 2015 will be created on Monday, November 9, 2015. (Paysheets would normally be created on Tuesday, November 10, 2015.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 9, 2015 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 7, 2015 will also occur November 9, 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on November 9, 2015 in order for a paycheck record to be created.
The Run C off-cycle for the period ending October 24, 2015 will be processed November 9, 2015. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 13, 2015.
NOTE: EFT Return checks will NOT be processed from November 9, 2015 through November 12, 2015 while SMART is shut down. Depending on volume, every effort will be made to process all EFT returns in SMART on November 13, 2015.
Tuesday, November 10, 2015
The second on-cycle preliminary pay calculation for the period ending November 7, 2015 will occur November 10, 2015.
Regent file sets for the period ending November 7, 2015 on-cycle and ‘A’ off-cycle may be submitted. KREGPAY1 and KADJPAY1 will be processed in SHaRP. The corresponding INF06 files will be held until SMART is open Friday, November 13, 2015.
Wednesday, November 11, 2015
Veterans' Day Holiday
No batch jobs scheduled.
Thursday, November 12, 2015
The third on-cycle preliminary pay calculation for the period ending November 7, 2015 will occur November 12, 2015.
Regent file sets for the period ending November 7, 2015 on-cycle and ‘A’ off-cycle may be submitted. KREGPAY1 and KADJPAY1 will be processed in SHaRP. The corresponding INF06 files will be held until SMART is open Friday, November 13, 2015.
SMART system shut down. Transition to v9.2 upgrade continues.
Friday, November 13, 2015
Final pay confirmation for the on-cycle payroll for the period ending November 7, 2015 will occur November 13, 2015. All employees’ payable time must be approved, by 6:00 PM on November 13, 2015 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 13, 2015 in order to be reflected in the final paycheck created for the employee.
Regent INF06 files will be run in SMART.
Regents’ on-cycle and Run A off-cycle payroll files for the period ending November 7, 2015 must be received by the Department of Administration by 4:00 PM on November 13, 2015.
SMART system open to all users.
Monday, November 16, 2015
The Run A off-cycle for the period ending November 7, 2015 will be processed November 16, 2015. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 20, 2015.
The Regents’ on-cycle files for the period ending November 7, 2015 will also be processed on this date.
Tuesday, November 17, 2015
Regents’ Run B off-cycle payroll files for the period ending November 7, 2015 must be received by the Department of Administration by 4:00 PM on November 17, 2015.
Wednesday, November 18, 2015
The Run B off-cycle for the period ending November 7, 2015 will be processed November 18, 2015. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 23, 2015.
Friday, November 20, 2015
Payday for the payroll period ending November 7, 2015.
First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 21, 2015 submitted to the Department of Administration for processing by 5:00 PM on November 20, 2015. (These files would normally be due Monday, November 23, 2015.) Last opportunity to submit files will be noon on Monday, November 23, 2015.
Regents’ Run C off-cycle payroll files for the period ending November 7, 2015 must be received by the Department of Administration by 4:00 PM on November 20, 2015.
Monday, November 23, 2015
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 21, 2015 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 23, 2015.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 23, 2015 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 21, 2015 will be created on Monday, November 23, 2015. (Paysheets would normally be created on Tuesday, November 24, 2015.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 23, 2015 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 21, 2015 will also occur November 23, 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 21, 2015.
The Run C off-cycle for the period ending November 7, 2015 will be processed November 23, 2015. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 30, 2015. (These checks would normally be dated Thursday, November 26, 2015.)
Tuesday, November 24, 2015
The second on-cycle preliminary pay calculation for the period ending November 21, 2015 will occur November 24, 2015.
Regents’ on-cycle files for the period ending November 21, 2015 must be received by the Department of Administration by 4:00 PM on November 24, 2015.
Wednesday, November 25, 2015
Final pay confirmation for the on-cycle payroll for the period ending November 21, 2015 will occur November 25, 2015. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 25, 2015 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 25, 2015 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 21, 2015 must be received by the Department of Administration by 4:00 PM on November 25, 2015.
Thursday, November 26, 2015
Thanksgiving Holiday
No batch jobs scheduled.
Friday, November 27, 2015
Thanksgiving Holiday
No batch jobs scheduled.
Attached is a partial calendar for the month of November 2015, which highlights key payroll processing activity for the month. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
DH:NTR:ewb
Attachment
Printable Version of 16-P-007
Informational Circular No.: 16-P-008
Effective Date: Pay Period Beginning December 20, 2015; Ending January 2, 2016; Paid January 15, 2016
OCFO Contact: Earl Brynds
KDHE Contact: Melody Connell
Ph: (785) 296-5376, (785) 368-6533
Email: earl.brynds@da.ks.gov, mconnell@kdheks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Addition of New Vision Provider Deduction Codes/Benefit Plan Codes
The Health Care Commission approved a new vision provider for plan year 2016. Surency Life and Health will replace Superior Vision. A basic and enhanced plan will continue to be offered.
To accommodate the new vision vendor, the following new Benefit Plans/Deduction Codes are being added in SHARP effective 12/20/2015:
PLAN TYPE | DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION | BENEFIT PLAN CODE | TAX CLASS |
---|---|---|---|---|---|
14 | SYHIBT | Vision-Surency Enhanced | Vision | SYHIBT | Before-Tax |
14 | SYHIAT | Vision-Surency Enhanced | Vision | SYHIAT | After-Tax |
14 | SYLOBT | Vision-Surency Basic | Vision | SYLOBT | Before-Tax |
14 | SYLOAT | Vision-Surency Basic | Vision | SYLOAT | After-Tax |
The new deduction codes/benefit plans will be added in SHARP effective for the payroll period beginning December 20, 2015 and ending January 2, 2016, paid January 15, 2016.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.
Questions regarding the system set-up/interfaces for this new payroll deduction can be directed to Earl Brynds (Earl.Brynds@da.ks.gov or 785.296.5376).
Questions regarding the vision benefit should be directed to Melody Connell, Benefits Consultant (mconnell@kdheks.gov or 785.368.6533).
DH:EWB:ckw
Printable Version of 16-P-008
Informational Circular No.: 16-P-009
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Changes to the payroll processing schedule for the payroll periods ending December 5, 2015 and December 19, 2015 due to December 24 and 25, 2015 being designated state holidays.
As a result of Governor Brownback declaring Thursday, December 24, and Friday, December 25, 2015 as state holidays, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 5, 2015 and December 19, 2015:
Monday, December 7, 2015
The Run 'C' off-cycle for the payroll period ending November 21, 2015 continues to be scheduled for December 7, 2015. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will remain Thursday, December 10, 2015.
Time and Labor Interface agencies must have time and leave files for the period ending December 5, 2015 submitted to the Department of Administration for processing by 5:00 p.m. on December 7, 2015.
Tuesday, December 8, 2015
Paysheets for the on-cycle payroll for the period ending December 5, 2015 will be created as usual on Tuesday, December 8, 2015. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 8, 2015 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 5, 2015 will also occur December 8, 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 p.m., payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Wednesday, December 9, 2015
The second on-cycle preliminary pay calculation for the period ending December 5, 2015 will occur December 9, 2015.
Thursday, December 10, 2015
The third on-cycle preliminary pay calculation for the period ending December 5, 2015 will occur December 10, 2015.
Regents’ on-cycle payroll files for the period ending December 5, 2015 are due to the Department of Administration by 4:00 p.m. on December 10, 2015.
Friday, December 11, 2015
Final pay confirmation for the on-cycle payroll for the period ending December 5, 2015 will occur December 11, 2015. For SHARP agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 11, 2015 in order for a paycheck record to be created. All non-health benefit deductions and tax data changes must be entered by 6:00 p.m. on December 11, 2015 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, December 18, 2015.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 5, 2015 are due to the Department of Administration by 4:00 p.m. on December 11, 2015.
Monday, December 14, 2015
The Run ‘A’ off-cycle for the period ending December 5, 2015 will be processed December 14, 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, December 18, 2015.
The Regents’ on-cycle files for the period ending December 5, 2015 will be processed.
Tuesday, December 15, 2015
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 5, 2015 must be received by the Department of Administration by 4:00 p.m. on December 15, 2015.
Wednesday, December 16, 2015
The Run 'B' off-cycle for the payroll period ending December 5, 2015 continues to be scheduled for December 16, 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘B’ off-cycle will be dated Monday, December 21, 2015.
Friday, December 18, 2015
Payday for the payroll period ending December 5, 2015.
Regents’ Run ‘C’ off-cycle payroll files for the period ending December 5, 2015 must be received by the Department of Administration by 4:00 p.m. on December 18, 2015.
First opportunity for Time and Labor interface agencies to have time and leave files for the period ending December 19, 2015 submitted to the Department of Administration for processing by 5:00 p.m. on December 18, 2015. (The files would normally be due on Monday, December 21, 2015). Last opportunity to submit files will be noon on Monday, December 21, 2015.
Monday, December 21, 2015
The Run 'C' off-cycle for the payroll period ending December 5, 2015 continues to be scheduled for December 21, 2015. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will be Monday, December 28, 2015. (It would normally be on Thursday, December 24, 2015).
Please note that paysheets for the on-cycle payroll for the period ending December 19, 2015 will be created on Monday, December 21, 2015, instead of the normal day on Tuesday, December 22, 2015, to allow for maximum preliminary payroll calculation opportunities. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 21, 2015 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 19, 2015 will also occur December 21, 2015. (It would normally be on Tuesday, December 22, 2015.) For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Time and Labor interface agencies can submit time and leave files for the period ending December 19, 2015 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on December 21, 2015.
NOTE: Terminations and Retirements must be entered by 6:00 PM on December 21, 2015 and reported time must be submitted by 11:00 AM or 3:30 PM in order for leave payouts to be calculated correctly.
Tuesday, December 22, 2015
The second on-cycle preliminary pay calculation for the period ending December 19, 2015 will occur December 22, 2015. Please note there will be only two preliminary pay calculations for the period ending December 19, 2015.
Regents’ on-cycle payroll files for the period ending December 19, 2015 are due to the Department of Administration by 4:00 p.m. on December 22, 2015. (The files would normally be due on Thursday, December 24, 2015).
Wednesday, December 23, 2015
Final pay confirmation for the on-cycle payroll for the period ending December 19, 2015 will occur December 23, 2015. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the on-cycle will be Thursday, December 31, 2015. The Check issue date for the on-cycle will be Thursday, December 31, 2015. (It would normally be on Friday, January 1, 2016).
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 19, 2015 are due to the Department of Administration by 4:00 p.m. on December 23, 2015.
Thursday, December 24, 2015
Christmas Eve Holiday
Friday, December 25, 2015
Christmas Holiday
Sunday, December 27, 2015
The Regents’ on-cycle files for the period ending December 19, 2015 will be processed.
Monday, December 28, 2015
The Run ‘A’ off-cycle for the period ending December 19, 2015 will be processed December 28, 2015. IMPORTANT NOTE: This is the final off-cycle for calendar year 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Thursday, December 31, 2015.
Tuesday, December 29, 2015
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 19, 2015 are due to the Department of Administration by 4:00 p.m. on December 29, 2015.
Wednesday, December 30, 2015
The Run 'B' off-cycle for the payroll period ending December 19, 2015 continues to be scheduled for December 30, 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘B’ off-cycle will be dated Tuesday, January 5, 2016. (They would normally be dated on Monday, January 4, 2016).
Attached is a revised calendar for the month of December 2015 that highlights the payroll processing schedule changes due to the Christmas holidays. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
SG:NTR:ckw
Attachment
Printable version of 16-P-009
Informational Circular No.: 16-P-010
Supersedes Informational Circular No: 15-P-021
Effective Date: Payroll Period Ending January 2, 2015
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG133
The organization dues for members of the Public Service Employees Local Union 1290 P.E. (represents employees at the University of Kansas and the University of Kansas Medical Center)
will increase from $13.56 to $14.37 per biweekly payroll period. The new rate will become effective with the payroll period beginning December 20, 2015 and ending January 2, 2016, paid January 15, 2016.
The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $13.50 to $14.31 and the fee (ORF133) will remain at $0.06 (for a total deduction of $14.37 per biweekly payroll period).
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
DH:NTR:ckw
Printable version of 16-P-010
Informational Circular No.:16-P-011
Supersedes Informational Circular No: 15-P-019
Effective Date: January 1, 2016
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2016
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2016. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2016. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance has increased to $4,050 for 2016.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2016 has decreased to $2,250. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Publication 1494 for 2016 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2015 to all SHARP employees who were exempt from federal withholding in 2015. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2016. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2016 W-4s. The 2016 Form W-4 has not currently been published by the IRS. The Office of the Chief Financial Officer will post it to their website as soon as it becomes available. Employees should submit their new W-4s as soon as possible to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 30, 2015 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2016.
The KPAY320 will process during the batch cycle generated on the evening of December 30, 2015. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2016 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’.
For any Form W-4s for 2016 received after December 30, 2015, agency personnel will need to enter the data with a January 2, 2016 effective date. Agency Workflow Administrators also will need to change the effective date to January 2, 2016 for any electronic FormsW-4s for 2016 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2015 must file a new 8233 form for calendar year 2016 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 30, 2015, will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2016. The new tax data row will be dated January 1, 2016. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2016 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 30, 2015. The report will be available in the agency directory on the MVS on Friday, December 31, 2015. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Office of the Chief Financial Officer, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
DH:NTR:abe
Attachment: Tables for Percentage Method Withholding
Printable Version of 16-P-011
Informational Circular No.: 16-P-012
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: December 2015 Payroll Processing and Updated December Processing Calendar
As 2015 calendar year-end approaches, the Office of the Chief Financial Officer is making preparations for the issuance of calendar year 2015 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2015 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2016 balances; a corrected W-2 (Form W-2C) for 2015 will not be issued for the employee involved.
FINAL 2015 PAYCHECK
The final on-cycle paychecks for calendar year 2015 will be issued December 31, 2015. Payroll transactions for the December 31, 2015 on-cycle paychecks will be posted to SMART on Tuesday night, December 29, 2015. The final off-cycle paychecks for calendar year 2015 will be issued on December 31, 2015 (generated from the off-cycle processed on December 28, 2015).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 28, 2015 to enter paycheck adjustment requests for any 2015 paychecks. Adjustments processed in the December 28, 2015 off-cycle payroll will be reflected on the employee’s 2015 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2015 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of the Chief Financial Officer, Payroll Section by 5:00 p.m. on Wednesday, December 16, 2015.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2015 for inclusion in the December 28, 2015 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2015 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2015 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 28, 2015 which are adjusting paychecks issued prior to January 1, 2016 will not result in a W-2C; the adjustment will update the employee’s 2016 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 28, 2015 will update the employee’s 2016 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 19, 2015, paid December 31, 2015 are due to the Department of Administration by 4:00 p.m. on December 22, 2015.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2015 Paycheck Reversals
Regent Institutions must submit all transmittals for 2015 paycheck reversals by 4:00 p.m. on Wednesday, December 23, 2015 in order to update the employee’s 2015 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2016 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2016 submitted after 4:00 p.m. on December 23, 2015 should default the pay adjust check date to January 1, 2016.
2015 Adjustments and Supplementals
In order to update employee balances for 2015, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Wednesday, December 23, 2015. The Run A off-cycle for the pay period ending December 19, 2015 generated on the night of Monday, December 28, 2015 will have a check issue date of December 31, 2015; all activity for this off-cycle will be reflected in the employees’ 2015 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2015 date.
2016 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2016, any adjustments or supplementals submitted after 4:00 p.m. on Wednesday, December 23, 2015, will be considered to be 2016 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2016 business, the employee’s 2016 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2016 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2016, agencies should default the pay adjust check date to January 1, 2016).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2016, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2016 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2016 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2015 deadline for the December 28, 2015 Run A’s off-cycle payroll will not be processed until the April 11, 2016 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 4, 2016. The deadline for submitting payroll interface files for the April 11, 2016 off-cycle is 4:00 p.m. on Friday, April 8, 2016.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2015 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 6, 2015 and December 19, 2015 in order for the last 2015 deduction to be taken on the paycheck issued December 18, 2015 if the deduction was taken over 26 pay periods. If the deduction was to be taken over 27 pay periods, a deduction end date of December 20, 2015 should be entered. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2016, agencies can enter a new row effective-dated between December 20, 2015 and January 2, 2016 in order for the first deduction for United Way or Community Health Charities for 2016 to be taken on the January 15, 2016 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 18, 2016 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2016.
A batch process will run the night of December 31, 2015 to establish the fee portion (deduction code UTFXXX) of the 2016 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2016. This process will reduce the 2016 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2016 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, January 4, 2016 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2016 United Way/Community Health Charities deductions after December 31, 2015, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification was sent on December 1, 2015 to all SHARP employees who are exempt from federal withholding. Notifications were sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center at:https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications were sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist was created to identify these employees. The worklist was sent on December 1, 2015 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under Main Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2016. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2016 W-4s. Employees should submit new paper W-4s by December 23, 2015 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 30, 2015 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2016.
The KPAY320 will be processed the evening of December 30, 2015. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2016 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2016 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2016 paper W-4s (for employees claiming exemption from withholding) received between December 30, 2015 and January 1, 2016, agency personnel will need to enter the data with a January 2, 2016 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2016 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. SHaRP employees are encouraged to use the Employee Self Service functionality to file their 2016 K-4’s.
The 2016 Form W-4 will be posted to the Office of the Chief Financial Officer’s website as soon as it is available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 30, 2015 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2016. The new tax data row will be dated January 1, 2016. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2016 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2016 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle A cut-off date of December 28, 2015. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2015 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 19, 2015 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2015 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 29, 2015. Please remember that these forms are only for those arrearages that are actively being collected.
On December 31, 2015, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on January 5, 2016 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 5, 2016 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2015. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between January 6, 2016 and January 11, 2016. Electronic W-2 forms through Employee Self Service will be available on or before January 11, 2016. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2016. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2015 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Printable version of 16-P-012
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Informational Circular No.: 16-p-013
Supersedes Informational Circular No: 15-P-033
Effective Date: Payroll Period Beginning December 20, 2015 and Ending January 2, 2016, Paid January 15, 2016
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Parking Fee Decrease - Curtis Building Garage
Pursuant to Kansas Administrative Regulation 1-45-22(b)(1), parking fees for the Curtis Building Garage will decrease effective January 1, 2016. To implement this change, the following payroll deduction codes and associated administrative fee code will decrease effective with the payroll period beginning December 20, 2015 and ending January 2, 2016, paid January 15, 2016:
Deduction Code New bi-weekly rate for pped 1/2/16 PKT08B 23.08
PPKT08 23.08 PKAD05 (admin fee) 1.77
Employees who park on the roof of the Curtis Building Garage under parking deduction codes PKT0CB and PPKT0C will have a new bi-weekly deduction and associated administrative fee as follows:
Deduction Code New bi-weekly rate for pped 1/2/16 PKT0CB 16.15
PPKT0C 16.15 PKAD12 (admin fee) 1.24
Employees with Attorney General and Department of Commerce who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee decrease as follows:
Deduction Code New bi-weekly rate for pped 1/2/16 PKT10B 11.54
PPKT10 11.54 PKAD07 (admin fee) 0.88
The parking rates for Secretary of State employees are listed below and do not change:
Deduction Code Bi-weekly rate since pped 6/20/15 PKT09B 9.23
PPKT09 9.23 PKAD06 (admin fee) 0.71
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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Informational Circular No.: 16-P-014
Supersedes Informational Circular No: 15-P-022
Effective Date: January 1, 2016
Contact Name: Amanda Entress
Ph: (785) 296-3887
Email: amanda.entress@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2016
The Internal Revenue Service (IRS) has announced the standard mileage rate will decrease to 54 cents beginning January 1, 2016 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 54 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2016 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,900 for a car (down from $16,000 in 2015), and $17,700 (up from $17,500 in 2015) for a passenger truck or van. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
Printable version of 16-P-014
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Informational Circular No.: 16-P-015
Supersedes Informational Circular No: 15-P-025
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Information Pertaining to Employee 2015 W-2 Statements
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2015 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of January 7, 2016. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after February 5, 2016. In reviewing the report, please note that 27 paycheck dates occurred in calendar year 2015 and are included on the 2015 W-2 Wage and Tax Statements as required by IRS regulations.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2015 W-2's that were generated for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2015 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2015. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service (ESS). For those receiving a printed W-2, the form will be printed and sealed in an envelope. Please note that any employees who have retired or separated from state service continue to have access to consent and receive W-2 forms electronically via Employee Self Service for 18 months following separation. However, retired/separated employees will have his/her consent reset in order to ensure generation of a mailed copy of his/her W-2 if the former employee does not re-consent/receive the W-2 electronically via Employee Self Service.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.
All paper 2015 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2016. At that time, they will be destroyed.
In cases where the 2015 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2010 through 2015, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service at https://sharp.ks.gov/psp/ESS/, and then viewing and printing the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who have separated or retired from State service have access to consent to view/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2015, 2014, 2013, 2012, 2011, or 2010) the reissued W-2 is needed. Duplicate W-2’s for 2010- 2014 are currently available, and duplicate W-2’s for 2015 will be available starting on Wednesday, February 10, 2016. Please note that duplicate W-2’s for the year 2010 will no longer be available after mid-April 2016.
The Office of the Chief Financial Officer, Payroll Services will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2015 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2015 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-7059.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 31, 2015 are included in the 2015 W-2 amounts.
Attachment A
Attachment B
Printable version of 16-P-015
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Informational Circular No.: 16-P-016
Supersedes Informational Circular No: 15-P-026
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: 2016 W-2 Production Report Schedule
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2016 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2016 W-2 production reports are scheduled to be generated:
Friday, February 12, 2016
Friday, March 11, 2016
Friday, April 22, 2016
Friday, May 20, 2016
Friday, June 17, 2016
Friday, July 15, 2016
Friday, August 12, 2016
Friday, September 9, 2016
Friday, October 7, 2016
Friday, November 4, 2016
Friday, November 18, 2016
Monday, December 5, 2016
Monday, December 12, 2016
Monday, December 19, 2016
Tuesday, December 27, 2016
Tuesday, January 3, 2017
Thursday, January 5, 2017 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by the Office of the Chief Financial Officer. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2016 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Printable version of 16-P-016
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Informational Circular No.: 16-P-017
Effective Date: Payroll Period Beginning January 31, 2016 and Ending February 13, 2016, Paid February 26, 2016
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: Earl.Brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Additional Parking Codes for State Parking Lot 3 at 1020 Kansas Avenue
Pursuant to an agreement entered into by the Kansas Department of Wildlife, Parks & Tourism (KDWP) and the Department of Administration for State parking lot 3, current inactive parking deduction codes PKT05B (after-tax), and PPKT05 (before-tax) were updated in SHARP to be used for these employee parking deductions. KDWP employees enrolled in parking codes PKT05B and PPKT05 will have a bi-weekly payroll deduction of $8.08. KDWP employees enrolled in parking deductions PKT05B and PPKT05 will also be enrolled in the parking administrative fee code PKADR3. Parking code PKADR3 will result in an employer bi-weekly payroll contribution of $0.62. These parking codes are effective with the pay period beginning January 31, 2016, ending February 13, 2016, and paid February 26, 2016.
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
Printable version of 16-P-017
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Informational Circular No.: 16-P-018
Supersedes Informational Circular No: 13-P-025
Effective Date: Payroll Period Beginning February 28, 2016 and Ending March 12, 2016, paid March 25, 2016
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: (earl.brynds@da.ks.gov)
Approval: Nancy Ruoff (Original Signature on File)
Summary: Suspension of Employer Contributions for KPERS Death and Disability Insurance for the Final Seven Pay Periods of Fiscal Year 2016
House Sub for SB 112, passed in the 2015 legislative session, calls for an additional moratorium that suspends employer contributions for KPERS Death and Disability Insurance for the final seven payroll periods of fiscal year 2016. As a result, the Office of the Chief Financial Officer will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods during the moratorium. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning February 28, 2016 and ending March 12, 2016, paid March 25, 2016 and end with the pay period beginning May 22, 2016 and ending June 4, 2016, paid June 17, 2016. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on the original pay period end dates, so paycheck adjustments processed after March 14, 2016 for pay period end dates prior to March 12, 2016 will continue to have the contributions collected and remitted. Refer to Informational Circulars 11-P-025 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2011, 12-P-023 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2012 and 13-P-020 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2013 to review the dates the previous moratoriums were in effect for 2010 through 2013. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after February 27,2016 even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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 require the "employee" to remit the required contribution while on leave without pay.
The Office of the Chief Financial Officer, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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Informational Circular No.: 16-P-019
Effective Date: Pay Period Beginning June 5, 2016; Ending June 18, 2016; Paid July 1, 2016
OCFO Contact Name: Earl Brynds
KDHE Contact Name: Peter Nagurny
Ph: (785) 296-5376, (785) 296-0185
Email: earl.brynds@ks.gov, pnagurny@kdheks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: <insert summary information here>
The Health Care Commission approved a policy change for the timing of vision payroll deductions from twice a month to once a month. Starting with payroll period beginning June 5, 2016 and ending June 18, 2016, paid July 1, 2016 the vision payroll deduction for a month will be taken in the first coverage period of that month. Any mid-month eligibility or coverage changes that result in a deduction change to vision would roll into the first coverage period of the following month. Since the vision deduction is a monthly deduction, a mid-month termination will not result in a proration of the vision deduction.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.
Questions regarding the system set-up/interfaces for this payroll deduction can be directed to Earl Brynds (Earl.Brynds@ks.gov or 785.296.5376).
Questions regarding the vision benefit should be directed to Peter Nagurny, Health Plan Data Manager (pnagurny@kdheks.gov or 785.296.0185).
Printable version of 16-P-019
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Informational Circular No.: 16-P-020
Effective Date: April 10, 2016
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Addition of Earnings Code ‘VOA’ for Volunteerism Award
At the implementation of the State of Kansas Employee Award and Recognition Program, an award for volunteerism was categorized as a nonmonetary award and was recorded on the employee’s timesheet under earnings code NMA. After further review of the definition of volunteerism from the Employee Award and Recognition Program, it was determined that this award should be a monetary award. The definition and program guidelines can be found on the Department of Administration’s website at http://www.admin.ks.gov/offices/personnel-services/policies-and-programs/award-and-recognition-program.
Therefore, a new earnings code has been added to SHARP effective April 10, 2016 to administer a volunteerism award. The following earnings code is eligible to be used starting with the pay period beginning April 10, 2016 through April 23, 2016 paid May 6, 2016.
Earnings Code Description Short Description Effective Dat
VOA Award – Volunteerism Award 04/10/2016
SHARP agencies: The Office of Personnel Services has created the VOA (Volunteerism Award) Time Reporting Code (TRC) and has mapped the VOA TRC to the VOA earnings code effective April 10, 2016. The VOA TRC is now visible in Time and Labor drop down lists.
The Office of the Chief Financial Officer, 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.
Printable Version of 16-P-020
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Informational Circular No.: 16-P-021
Supersedes Informational Circular No: 15-P-031
Effective Date: July 1, 2016
Contact Name: Heather DeBusk
Ph: (785) 296-2434
Email: (Heather.DeBusk@ks.gov)
Approval: Nancy Ruoff (Original Signature on File)
Summary: Optional Group Life Insurance Rate Changes, Optional Spousal Life Insurance and Child Life Insurance Changes
KPERS has approved a new Optional Group Life Insurance provider effective July 1, 2016. The Standard will replace Minnesota Life. Due to this change in provider the Employee Optional Group Life Insurance rates are changing effective July 1, 2016 as follows:
Age as of Monthly Premium
January 1, 2016 per $1,000
Under 25 $0.037
25-29 $0.037
30-34 $0.055
35-39 $0.064
40-44 $0.073
45-49 $0.110
50-54 $0.156
55-59 $0.293
60-64 $0.467
65-69 $0.869
70-74 $1.409
75 and Older $1.528
An administrative fee of $0.20 per month will continue to be added to the employee premium each month. Maximum employee coverage available is $300,000.00. The age calculation will continue to be based on the employee’s attained age as of January 1st of the current calendar year.
At this time the Spousal Group Life Insurance and Child Life Insurance rates will remain the same. An administrative fee of $0.20 per month will continue to be added to the spousal premium each month. Effective, July 1, 2016, a new $.20 administrative fee will be added to the child premium each month. Maximum coverage is available up to $100,000 for Spousal Group Life Insurance and $20,000 for Child Life Insurance.
The new rates are effective with coverage for the month of July, 2016. Therefore, the July 15, 2016 paycheck (paycheck issued for the payroll period ending July 2, 2016) will be the first check issued with the new rates since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month’s coverage.
The Office of the Chief Financial Officer, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to July 1, 2016.
Printable Version of 16-P-021
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Informational Circular No.: 16-P-022
Supersedes Informational Circular No: 16-P-018
Effective Date: Payroll Period Beginning June 5, 2016 and Ending June 18, 2016, paid July 1, 2016
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Extension of the Suspension of Employer Contributions for KPERS Death and Disability Insurance for all of Fiscal Year 2017
House Substitute for Senate Bill 161 Section 97, passed in the 2016 legislative session, calls for an extension of the moratorium that suspends employer contributions for KPERS Death and Disability Insurance for all of fiscal year 2017. As a result, the Office of the Chief Financial Officer will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods during the moratorium. The KPERS Death and Disability Insurance moratorium will end after the pay period beginning June 4, 2017 and ending June 17, 2017, paid June 30, 2017. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on the original pay period end dates, so paycheck adjustments processed after March 14, 2016 for pay period end dates prior to March 12, 2016 will continue to have the contributions collected and remitted. Refer to Informational Circulars 11-P-025 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2011, 12-P-023 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2012 and 13-P-020 at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars/payroll-circulars/p-fy-2013 to review the dates the previous moratoriums were in effect for 2010 through 2013. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after February 27,2016 even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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 require the "employee" to remit the required contribution while on leave without pay.
The Office of the Chief Financial Officer, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
Printable version of 16-P-022
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Informational Circular No.: 16-P-023
Supersedes Informational Circular No: 15-P-032
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Summary of Fiscal Year End Payroll Processing
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2017 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 4, 2016 will use fiscal year 2016 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 4, 2016 will use fiscal year 2017 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run C off-cycle (scheduled for June 20, 2016, paid June 23, 2016) for the pay period ending June 4, 2016 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2016 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 12, 2016 and should be completed by Monday morning, June 13, 2016. In that process, a new row will be added to the Department Budget tables with an effective date of June 5, 2016 (beginning date of the first on-cycle payroll charged to FY2017). The Budget End Date will be June 4, 2017.
Agencies should send Combination Code files or any Department Budget Table files for FY17 changes into Payroll Services by Friday, June 10, 2016. These files will be loaded into SHARP beginning Monday, June 13, 2016. Agencies should not enter any rows with an effective date greater than or equal to June 5, 2016 until after the FY2017 insert has been completed. When adding new rows for FY2017, agencies should verify that June 4, 2017 was used as the Budget End Date for FY2017.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday, June 17, 2016 after the ‘B’ off-cycle process has been completed for the June 4, 2016 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 17. Agencies are encouraged to complete all FY16 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 15, 2016, to take advantage of this early run of the KPAYGL5C. Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 20, 2016 will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 22, 2016.
GHI Adjustments
As a reminder, GHI adjustments can only be processed for terminated employees. Contact SEHP Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 at Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan about event maintenance that may affect claims processing for any active employees.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period. Agencies should not change the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling. Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
Printable version of 16-P-023
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Informational Circular No.: 16-P-024
Effective Date: July 1, 2016
OCFO Contact Name: Jude Overton
OPS Contact Name: Connie Guerrero
Ph: (785) 296-2290, (785) 296-0754
Email: jude.overton@ks.gov, connie.guerrero@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Benefit Plans for KPERS Working After Retirement and New Rules/Instructions for Tracking in SHARP
Pursuant to Sen Sub for House Bill 2095 passed in the 2015 legislature, changes are being implemented for KPERS working after retirement (WAR) rules for both employers and members effective July 1, 2016. Agencies can refer to the Working After Retirement flyer as well as the attached notes from KPERS for additional information. As a result of these changes, nine new KPERS benefit plans will be added in SHARP effective for the payroll period beginning July 3, 2016, ending July 16, 2016, paid July 29, 2016, as follows:
PLAN TYPE |
BENEFIT PLAN CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
70 |
AC |
Working After Ret EEs-7/1/16 |
KPERS AC |
70 |
ANC |
Non-Covered HIR bef 5/1/15 |
KPERS ANC |
70 |
AW |
Same ER HIR bef 5/1/15 |
KPERS AW |
70 |
AU |
Retired Nurses |
KPERS AU |
70 |
AD |
Hardship Positions |
KPERS AD |
70 |
AXD |
1yr Extended Hardship Position |
KPERS AXD |
70 |
ALE |
KLETC Instructors |
KPERS ALE |
70 |
AB |
Same ER HIR bef 7/1/06 |
KPERS AB |
70 |
ABD |
Different ER HIR bef 7/1/06 |
KPERS ABD |
These nine new benefit plans will be linked to the existing RETRET deduction code (KPERS-Hired Retirees) in SHARP the same as the current PR benefit plan (KPERS AT member code) for hired retirees. The PR benefit plan (KPERS AT member code) will continue to be used for any WAR employee currently in SHARP who accepted their position before 5/1/15. These employees will be grandfathered in.
The FY17 employer only rates (and Earnings Limit) for each of the new benefit plans are listed on the attached document from KPERS. These employer rates will also be listed on the FY2017 Payroll Contribution Rates informational circular that will be published in the near future.
NOTE: There is an additional KPERS member code being added to the KPERS system only (NOT added in SHARP), ACTR – Working after Retirement – 3rd party or independent contractor, that is subject to a $25,000 limitation and employer rate of 10.81%, effective start date July 3, 2016. This KPERS member code is established for retirees who return to an agency in a staff position, but the agency is paying a third party (example, Westaff). KPERS will work directly with the agencies or third party vendors to identify and report the necessary information for KPERS. Third party/independent contractor retirees will not be tracked in SHARP.
The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ Institutions are responsible for ensuring that these changes are reflected in their individual systems.
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Attachment
Printable version of 16-P-024
Informational Circular No.: 16-P-025
Supersedes Informational Circular No: 15-P-035
Effective Date: Pay Period Beginning June 5, 2016; Ending June 18, 2016; Paid July 1, 2016
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: Carmen.Waters@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2017-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 2017. The fiscal year 2017 rates will become effective with the on-cycle payroll period beginning June 5, 2016, ending June 18, 2016 and paid July 1, 2016. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2016.
For Fiscal Year 2017, the employer’s contribution to KPERS Death and Disability Insurance will continue to be suspended due to the moratorium called for by House Substitute for Senate Bill 161. 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 greater than March 12, 2016; between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; 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.
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Attachment B
Attachment C
Printable Version of 16-P-025
Informational Circular No.: 15-p-001
Effective Date: June 27, 2014
Contact Name: Heather DeBusk
Ph: (785)296-2434
Email: heather.debusk@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Modification made to KPAY711 to include the employee name with each filled position listed on the report.
The KPAY711 report (Department Positions and Budget Earnings funding report for SHARP agencies) has been modified to include employee name with all active/filled position numbers listed on the report. The employee name will be listed after the Effective Status column on the report only if the position listed is active/filled. This change will be effective with the report that will run on June 27, 2014.
If you have any questions regarding this report change, please contact Heather DeBusk with the Office of Systems Management, Payroll Services at Heather.DeBusk@da.ks.gov or 785.296.2434.
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Informational Circular No.: 15-p-002
Effective Date: Payroll Period Ending August 16, 2014
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for ORG030
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $30.11 to $30.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 3, 2014 and ending August 16, 2014, paid August 29, 2014.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $30.05 to $30.44 and the fee (ORF030) will remain at $.06 (for a total deduction of $30.50 per biweekly payroll period).
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Informational Circular No.: 15-p-003
Supersedes Informational Circular No: 14-P-005
Effective Date: Payroll Period Ending September 13, 2014
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Changes for KAPE
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning August 31, 2014 and ending September 13, 2014, paid September 26, 2014 as follows:
Deduction Code |
Hourly Rate of Pay |
Bi-Weekly Salary |
Dues Deduction |
---|---|---|---|
ORG001 |
$ 13.99 or Less |
$ 1119.20 or Less |
$10.08 |
ORG002 |
$ 14.00 – 14.99 |
$ 1119.21 – 1199.20 |
$11.07 |
ORG003 |
$ 15.00 – 15.99 |
$ 1199.21 – 1279.20 |
$12.01 |
ORG004 |
$ 16.00 – 16.99 |
$ 1279.21 – 1359.20 |
$18.32 |
ORG005 |
$ 17.00 – 17.99 |
$ 1359.21 – 1439.20 |
$19.42 |
ORG006 |
$ 18.00 or Greater |
$ 1439.21 or Greater |
$20.51 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Informational Circular No.: 15-p-004
Date: September 10, 2014
Effective Date: Immediately
Contact Name: Kathy Ogle
Ph: (785) 296-2290
Email: kathy.ogle@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Kansas State Tax Data (k-4) update capability through Employee Self Service has been added
The Office of Systems Management is pleased to announce that new functionality has been added to SHARP Employee Self Service (ESS) that allows employees to update their Kansas State Tax Data information electronically. The new ESS menu option, Update K-4 State Tax Data, allows employees to update their Kansas marital status, number of allowances, amount of additional withholding, and exempt status on-line themselves. Prior to this, employees had to submit a paper K-4, Kansas Employee’s Withholding Allowance Certificate, to their agency Human Resource personnel for changes.
The Update K-4 State Tax Data link in ESS works similarly to the Update W-4 Federal Tax Data functionality. After an employee has entered and submitted the desired changes, the updated information is inserted into SHaRP. Two rows are inserted, effective dated with the current date. A row is inserted into Federal Tax Data, pulling forward the prior row’s data, and a row is inserted into State Tax Data with the updated information. If an employee makes both a State Tax Data and a Federal Tax Data change on the same day using ESS, both updates will display in SHaRP effective dated with the current date. After submitting an ESS K-4 State Tax update, the system generates emails to both the employee and the employee’s Agency Payroll Administrator with the details of the update made.
Please communicate this new ESS Update K-4 State Tax Data capability with your agency’s employees. If you have any questions regarding this new functionality, please contact Kathy Ogle with the Office of Systems Management, Payroll Services at kathy.ogle@da.ks.gov or 785.296.2290.
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Informational Circular No.: 15-p-005
Effective Date: Payroll Period Ending September 13, 2014
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: (Earl.Brynds@da.ks.gov)
Approval: Nancy Ruoff (Original Signature on File)
Summary: Transition form SHARP to COBRAGuard for Administration of State Employee Health Benefits
The Health Care Commission has approved using a third party vendor, COBRAGuard, to administer state employee health benefits from the COBRAGuard Membership Administration Portal (MAP) system. MAP becomes the source system for maintaining the state employee health benefits replacing SHARP. This change is effective beginning September 1, 2014. Open enrollment for 2015 employee health benefits will also occur in MAP during October, 2014.
Therefore, starting with the September 13, 2014 pay end date, paid on September 26, 2014, COBRAGuard will send to SHARP via a bi-weekly interface file from MAP, the employee health benefit deductions and employer contribution information to load directly to employee paychecks. The current Benefit Plan/Deduction codes in SHARP will continue to be used for paycheck deductions for the remainder of 2014. To accommodate Regent agencies who want to simplify the number of valid deduction codes, the following new Benefit Plans/Deduction codes are being added in SHARP effective 8/31/2014:
PLAN TYPE | BEN PLAN/DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION |
---|---|---|---|
10 | GHIEEB | Medical-Before Tax | Medical |
10 | GHIEEA | Medical - After Tax | Medical |
11 | DNTLBT | Dental-Before Tax | Dental |
11 | DNTLAT | Dental-After Tax | Dental |
14 | VISONB | Vision - Before Tax | Vision |
14 | VISONA | Vision - After Tax | Vision |
67 | HSADR | Health Sav Acct-ER-Dep | HSA-ER Dep |
67 | HSASR | Health Sav Acct-ER-Single | HSA-ER Sgl |
6Y | HSAEE | Health Savings Acct – Single | HSA-Single |
6Z | HSAED | Health Savings Acct –Dependent | HSA-Depend |
Any updates or changes to employee health benefits required to be made between Aug. 27 and Sept. 15, 2014, will need to be made in both the MAP system and SHARP by the Kansas Department of Health and Environment (KDHE), Division of Health Care Finance since the Sept. 12, 2014 paycheck will calculate using the health benefits data stored in SHARP. After Sept. 15, any required updates or changes to employee health benefits data for a time period from Sept. 15, 2014 forward will need to be made in the MAP system. Any changes to employee health benefits for a time period prior to Sept. 15, 2014 will manually be calculated and entered into MAP by KDHE.
In addition, beginning with the Sept. 26, 2014 paycheck, there will no longer be any Employer Flexible Spending Account (FSA) nontaxable contributions (5.74 percent of employee deduction) processed on employee paychecks in SHARP. Regents will also no longer be required to send in the Employer FSA contributions on their pay detail files. These employer FSA contributions will be processed outside of SHARP by KDHE.
For SHARP payroll processing, any necessary prior period adjustments for health benefits will be generated out of MAP and sent to payroll to process on employee paychecks. For example, if an employee does not receive a paycheck for a specific pay period in which health insurance should have been deducted, the MAP system will submit the current period and the ‘missed deduction’ for the prior period on the next paycheck, resulting in a double-deduction for health insurance for that employee.
Any adjustments to employee health benefits for a time period prior to Sept. 15, 2014 will be manually calculated and entered in MAP by KDHE. These lump-sum adjustment amounts will then be sent to SHARP from MAP via the bi-weekly interface file for payroll processing. Agencies should be aware that adjustments for multiple pay periods may be submitted as one lump-sum adjustment amount to SHARP from the MAP system. Details as to the periods covered by the lump-sum adjustment amount must be obtained from the MAP system. The existing payroll advance process in SHARP will continue to be utilized. This process advances funds and establishes a payroll arrearage to cover the cost of certain health benefits when an employee’s gross pay will not cover the full benefit amount.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that the changes required to accurately calculate payroll following the transition to COBRAGuard are made in their respective systems effective with the payroll period noted above.
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Informational Circular No.: 15-p-006
Effective Date: Immediately
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: ING Financial Services Name Change to Voya Financial, Inc.
As of September 1, 2014, ING Financial Services, our deferred compensation vendor as well as a TSA & VTSA vendor, has changed its name to Voya Financial, Inc. This name change is reflected in the SMART and SHaRP vendor tables for the following Vendor IDs:
0000000015
0000000016
0000000017
0000159432
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Informational Circular No.: 15-p-007
Effective Date: September 28, 2014
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Addition of Earnings Code 'LWN' for Leave Without Pay for Non-Exempt Employees
A request has been submitted from the University of Kansas and the University of Kansas Medical Center to add a new Earnings Code to SHARP for use in Affordable Care Act (ACA) reporting and also for use in tracking metrics.
Therefore, a new earnings code has been added to SHARP effective September 28, 2014 to administer Leave Without Pay for non-exempt employees. The following earnings code is eligible to be used starting with the pay period beginning September 28, 2014 through October 11, 2014 paid October 24, 2014.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
LWN | Leave Without Pay-Non-Exempt | LWOPNE | 09/28/2014 |
LWN is an Hours Only earnings code and does not add to Gross Pay. Agencies can also use the existing Leave-Without Pay earnings code (LWP) for time reporting for Exempt employees.
SHARP agencies: The Office of Personnel Services has mapped the existing LWPNE (Leave-Without Pay Non-exempt) Time Reporting Code (TRC) to the LWN Earnings Code effective September 28, 2014. Therefore, use of the LWPNE TRC will now result in the LWN earnings code processing on the employee paycheck and any associated payroll reports.
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.
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Informational Circular No.: 15-p-008
Supersedes Informational Circular No: 14-p-007
Effective Date: Calendar Year 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP On-Cycle and Off-Cycle Payroll Processing Schedules for 2015.
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2015. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of Systems Management must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Informational Circular No.: 15-p-009
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll Processing Impacts and Changes in SHARP due to COBRAGuard (MAP) Implementation for State Employee Health Benefits
As a result of the COBRAGuard MAP implementation for State Employee Health Benefits effective Sept. 1, 2014, agencies should be aware of the following payroll processing impacts and changes in SHARP. Also, agencies are reminded that the MAP system is used for administering Health Benefits only. Health Benefits administered through the MAP system include Group Health Insurance (Medical/Dental/Drug), Vision, Flexible Spending Accounts (Dependent Care/Health Care), and Health Savings Accounts. All other benefits, including Optional/Spousal Group Life, will continue to be administered in SHARP. Therefore, in addition to maintaining employee changes that impact Health Benefits in MAP, it is very important that agencies continue to update the employee Benefit Program Code field in SHARP as well in order to process the other employee benefits accurately.
New Payroll Report
To respond to agency requests, a new payroll report (KPAY228- MAP HEALTH BENEFIT ADJUSTMENTS AND REFUNDS) is being developed and will be run on the first night of pay calc week, normally on Tuesday night, and sent to agency directories in their MVS mailbox. This report will list all health benefit deductions for any employees who have either an adjustment (Type = ADJ) or a refund (Type = REF) sent to payroll from MAP to be processed on the employee’s paycheck for a particular pay period. Agencies can use this report as a tool for contacting employees and working arrearages in advance of issuing their paychecks. This report is currently being developed and a separate SHARP infolist message will be sent out when the report becomes available. Until this report is available, Payroll Services will be identifying adjustments and refunds on the incoming file and notifying agencies via e-mail of this information.
SEHP Deduction Cutoff Schedule for MAP
Attached is a deduction cutoff schedule developed by the State Employee Health Plan for 2014-2015 that lists the MAP entry cutoff dates. As noted on the schedule, SEHP Benefit requests must be entered into MAP by the MAP Entry Cutoff Date column in order to facilitate final processing by SEHP Membership Services for the corresponding pay date. Requests that are not entered by Human Resource Officers by the MAP Entry Cutoff Date will not appear on that corresponding payroll date.
Health Benefit Paycheck Adjustments – Exceptions to MAP Processing
Agencies can no longer request adjustments for health benefits (GHI, FSA, HSA) in SHARP. However, agencies can submit DA-180’s centrally to process the following health benefit adjustments as exceptions only:
- Employees who pre-pay health insurance for a pay period where they have no pay
- Termed employees
Health Benefit Adjustments/Refunds Processed Through MAP
Except for the two scenarios listed above, health benefit adjustments and refunds will be processed in the on-cycle for the pay period received from the MAP system as long as the employee has a paysheet created. When an employee has a change in coverage that is recorded in MAP, the increase or decrease in the premium amount for the previous applicable pay periods will be processed in the on-cycle. For employees who do not have a paycheck, the deduction amounts will accumulate until the pay period in which the employee has a paysheet created.
Agencies can enter an ADJ or ADV on the employee’s timesheet in the amount of the adjustment if the employee has an accumulation of health benefit deductions for multiple pay periods that were not previously deducted due to a paysheet not being created. ADJ would be used for all after-tax deductions that were not taken in previous pay periods due to no employee paysheet. ADV would be used for all before-tax deduction adjustments where the employee had a paysheet. Agencies are reminded that any arrearages established for benefits deductions should be collected over the same number of pay periods where missed deductions resulted in the establishment of the arrearage.
Creation of Online Checks
Agency personnel will need to be aware that when using the Online Check process in SHARP, all health benefit deductions for the employees will now need to be entered on the One-Time Deductions page since health benefit deductions are no longer maintained in SHARP. Guidance for adding the deductions has been added to the procedures on the OSM website at the following link: http://admin.ks.gov/offices/osm/payroll-procedures.
E-mail Extension for Confirmation Statements from MAP
It appears that some agency e-mail filters are blocking Open Enrollment confirmation statements sent from MAP to State of Kansas employee e-mail addresses. Agency HR/Payroll are encouraged to contact their agency IT staff to request that the domain extension HRISSUITE.COM be added as a trusted extension for incoming e-mails. After the domain extension is added, employees who did not receive a confirmation statement after completing the Open Enrollment process in MAP can go back through the process, re-confirm their initial selections, and click the final Save to receive an email confirmation statement.
Questions Regarding Health Benefits/MAP
Agencies are reminded that any agency and employee questions regarding health benefits, the MAP system, and health benefit adjustments should be directed to the State Employee Health Plan at SEHPMembership@kdheks.gov or via phone at 785-296-3226 as the SHARP system no longer maintains detail information regarding employee health benefits. In addition, all questions that relate to any pay period end date prior to Sept. 1, 2014 (MAP implementation) should be directed to SEHP first, in order to verify how to handle the adjustment, before contacting Payroll Services.
Deduction Cutoff Schedule to Send
SG:NTR:ewb
Informational Circular No.: 15-p-010
Supersedes Informational Circular No: 14-p-009
Effective Date: January 1, 2015
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Social Security Wage Base Increase to $118,500 effective January 1, 2015.
The Social Security wage base for OASDI will be $118,500 for calendar year 2015. This is a $1,500 increase from the wage base of calendar year 2014 of $117,000. The OASDI tax rate for 2015 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2015 will be $7,347.00. There continues to be no limit on wages subject to the Medicare tax in 2015. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $7,347.00 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
SG:NTR:kao
Printable Version of 15-P-010
Informational Circular No: 15-p-011
Supersedes Informational Circular No: 14-p-008
Effective Date: November 2014
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Payroll processing schedule changes due to the November 2014 holidays.
Tuesday, November 11, 2014 (Veterans' Day), Thursday, November 27, 2014 and Friday, November 28, 2014 (Thanksgiving Holiday) are designated holidays for state service in 2014.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Monday, November 3, 2014
The Run A off-cycle for the period ending October 25, 2014 will be processed November 3, 2014. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 7, 2014.
Regents’ on-cycle files for the period ending October 25, 2014 will also be processed on this date.
Tuesday, November 4, 2014
Regents’ Run B off-cycle payroll files for the period ending October 25, 2014 must be received by the Department of Administration by 4:00 PM on November 4, 2014 in order to be processed on Wednesday, November 5, 2014.
Wednesday, November 5, 2014
The Run B off-cycle for the period ending October 25, 2014 will be processed November 5, 2014. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 10, 2014.
Friday, November 7, 2014
Payday for the payroll period ending October 25, 2014.
First opportunity for Time and Labor interface agencies to have time and leave files for the period ending November 8, 2014 submitted to the Department of Administration for processing by 5:00 PM on November 7, 2014. (These files would normally be due Monday, November 10, 2014). Last opportunity to submit files will be noon on Monday, November 10, 2014.
Regents’ Run C off-cycle payroll files for the period ending October 25, 2014 must be received by the Department of Administration by 4:00 PM on November 7, 2014.
Monday, November 10, 2014
Time and Labor interface agencies can submit time and leave files for the period ending November 8, 2014 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 10, 2014.
Paysheets for the on-cycle payroll for the period ending November 8, 2014 will be created on Monday, November 10, 2014. (Paysheets would normally be created on Tuesday, November 11, 2014.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 10, 2014 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 8, 2014 will also occur November 10, 2014. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on November 10, 2014 in order for a paycheck record to be created.
The Run C off-cycle for the period ending October 25, 2014 will be processed November 10, 2014. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 14, 2014.
Tuesday, November 11, 2014
Veterans' Day Holiday
Wednesday, November 12, 2014
The second on-cycle preliminary pay calculation for the period ending November 8, 2014 will occur November 12, 2014.
Thursday, November 13, 2014
The third on-cycle preliminary pay calculation for the period ending November 8, 2014 will occur November 13, 2014.
Regents’ on-cycle payroll files for the period ending November 8, 2014 are due to the Department of Administration by 4:00 PM on November 13, 2014.
Friday, November 14, 2014
Final pay confirmation for the on-cycle payroll for the period ending November 8, 2014 will occur November 14, 2014. All employees’ payable time must be approved, by 6:00 PM on November 14, 2014 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 14, 2014 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 8, 2014 must be received by the Department of Administration by 4:00 PM on November 14, 2014.
Monday, November 17, 2014
The Run A off-cycle for the period ending November 8, 2014 will be processed November 17, 2014. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 21, 2014.
The Regents’ on-cycle files for the period ending November 8, 2014 will also be processed on this date.
Tuesday, November 18, 2014
Regents’ Run B off-cycle payroll files for the period ending November 8, 2014 must be received by the Department of Administration by 4:00 PM on November 18, 2014.
Wednesday, November 19, 2014
The Run B off-cycle for the period ending November 8, 2014 will be processed November 19, 2014. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 24, 2014.
Friday, November 21, 2014
Payday for the payroll period ending November 8, 2014.
First opportunity for Time and Labor interface agencies to have time and leave files for the period ending November 22, 2014 submitted to the Department of Administration for processing by 5:00 PM on November 21, 2014. (These files would normally be due Monday, November 24, 2014.) Last opportunity to submit files will be noon on Monday, November 24, 2014.
Regents’ Run C off-cycle payroll files for the period ending November 8, 2014 must be received by the Department of Administration by 4:00 PM on November 21, 2014.
Sunday, November 23, 2014
The one-time $250.00 legislature authorized bonus will be inserted into eligible employee timesheets.
Monday, November 24, 2014
Time and Labor interface agencies can submit time and leave files for the period ending November 22, 2014 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 24, 2014.
NOTE: Terminations and Retirements must be entered by 6:00 PM on November 24, 2014 and reported time must be submitted by 3:30 PM in order for leave payouts to be calculated correctly.
Paysheets for the on-cycle payroll for the period ending November 22, 2014 will be created on Monday, November 24, 2014. (Paysheets would normally be created on Tuesday, November 25, 2014.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 24, 2014 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 22, 2014 will also occur November 24, 2014. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 22, 2014.
The Run C off-cycle for the period ending November 8, 2014 will be processed November 24, 2014. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated December 1, 2014. (These checks would normally be dated Thursday, November 27, 2014.)
Tuesday, November 25, 2014
The second on-cycle preliminary pay calculation for the period ending November 22, 2014 will occur November 25, 2014.
Regents’ on-cycle files for the period ending November 22, 2014 must be received by the Department of Administration by 4:00 PM on November 25, 2014.
Wednesday, November 26, 2014
Final pay confirmation for the on-cycle payroll for the period ending November 22, 2014 will occur November 26, 2014. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 26, 2014 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 26, 2014 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 22, 2014 must be received by the Department of Administration by 4:00 PM on November 26, 2014.
Thursday, November 27, 2014
Thanksgiving Holiday
Friday, November 28, 2014
Thanksgiving Holiday
Attached is a calendar for the month of November 2014, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.admin.ks.gov/resources/informational-circulars.
SG:NTR:ccl
Attachment
Printable version of 15-P-011
Informational Circular No.: 15-p-012
Supersedes Informational Circular No: 14-p-010
Effective Date: January 1, 2015
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: 2015 Deferred Compensation and Tax Sheltered Annuity Limits
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2015 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit is increased from the lesser of $17,500 or 100% of includible compensation (2014 calendar year limit) to the lesser of $18,000 or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $36,000. The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $6,000 for 2015 making the total $24,000. The provision for 2014 was $5,500, making the total for 2014 $23,000.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2015 is the lesser of $53,000 or 100% of compensation, increased from $52,000 for 2014.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $260,000 (for 2014) to $265,000 (for 2015). The $265,000 applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School for the Blind and School for the Deaf employees, the maximum contribution that can be made to the plan is $26,500 ($265,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $37,100 ($265,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $385,000 (for 2014) to $395,000 (for 2015). However, participants should note their maximum annual compensation limit will be $378,571.43, since the $378,571.43 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $53,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $17,500 for 2014 to $18,000 for 2015. The age 50 or older catch-up provision is increased from $5,500 for 2014 to $6,000 for 2015. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($18,000 for 2015) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
SG:NTR:kao
Printable version of 15-P-012
Informational Circular No.: 15-p-013
Effective Date: January 1, 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Deduction Codes/Benefit Plans for Future Members of KPERS (Tier 3)
Pursuant to Sub House Bill (HB) 2333 passed in the 2012 legislature, a new Kansas Public Employees Retirement System (KPERS) Tier 3 cash balance retirement plan is created for new hires beginning January 1, 2015. This plan includes new employees hired after January 1, 2015 and inactive KPERS Tier 1 and Tier 2 members who are not vested and return to work January, 2015 and after. Correctional Officers are not included in the new Tier 3 plan. As a result of this legislation, future members of the KPERS system will begin contributing 6% of their salary to the new cash balance retirement plan. This will be effective with the first day of employment in an eligible position. Employer contribution percentages are the same for Tier 3 as they are for Tier 1 and Tier 2. Further information on the specifics of this new KPERS cash balance plan can be found at http://www.kpers.org/pdf/KPERS3plan.pdf.
Current Tier 1 members include those first employed before July 1, 2009. Current Tier 2 members include those first employed between July 1, 2009 and December 31, 2014; the existing KPERS deduction codes and benefit plans will continue to be used for current Tier 1 and Tier 2 members. For future KPERS members (Tier 3), which includes employees first hired on or after January 1, 2015, two new KPERS deduction codes and ten benefit plans are being added in SHARP effective for the payroll period beginning December 21, 2014, ending January 3, 2015, paid January 16, 2015.
The new KPERS deduction codes and benefit plans are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
GTL DED CD |
---|---|---|---|---|---|---|
70 |
RETRE3 |
KPERS- Regular Tier 3 |
KPERS-Reg |
PT3 |
KPERS Ret Code P Tier 3 |
GTLREG |
4X |
RETLE3 |
KPERS- Legislator Tier 3 |
KPERS-Leg |
L1T3 |
KPERS Ret Code L1 Tier 3 |
GTLL1 |
|
|
|
|
L5T3 |
KPERS Ret Code L5 Tier 3 |
GTLL5 |
|
|
|
|
L7T3 |
KPERS Ret Code L7 Tier 3 |
GTLL7 |
|
|
|
|
LIT3 |
KPERS Ret Code LI Tier 3 |
GTLLI |
|
|
|
|
LJT3 |
KPERS Ret Code LJ Tier 3 |
GTLLJ |
|
|
|
|
LKT3 |
KPERS Ret Code LK Tier 3 |
GTLLK |
|
|
|
|
LLT3 |
KPERS Ret Code LL Tier 3 |
GTLLL |
|
|
|
|
LNT3 |
KPERS Ret Code LN Tier 3 |
GTLLN |
|
|
|
|
LUT3 |
KPERS Ret Code LU Tier 3 |
GTLLU |
(Note: these codes do not apply to the corrections, law enforcement or judges retirement plans)
The existing ‘GTL’ deduction codes and benefit plans as noted in the table above will continue to be used for the employer contributions for death and disability insurance provided to participating KPERS members.
The SMART Expenditure Account Code for Employer Contributions for the new deduction codes will be the same as the current KPERS deduction codes (518100 for Regular and Legislator).
The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ Institutions are responsible for ensuring that these changes are reflected in their individual systems.
SG:NTR:ewb
Printable version of 15-P-013
Informational Circular No.: 15-p-014
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Changes to the payroll processing schedule for the payroll periods ending December 6, 2014 and December 20, 2014 due to December 24 (half day), 25, and 26, 2014 being designated state holidays.
As a result of Governor Brownback declaring a half-day Wednesday, December 24, Thursday, December 25, and Friday, December 26 as state holidays, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 6, 2014 and December 20, 2014:
Monday, December 8, 2014
The Run 'C' off-cycle for the payroll period ending November 22, 2014 continues to be scheduled for December 8, 2014. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will remain Thursday, December 11, 2014.
Time and Labor Interface agencies must have time and leave files for the period ending December 6, 2014 submitted to the Department of Administration for processing by 5:00 p.m. on December 8, 2014.
Tuesday, December 9, 2014
Paysheets for the on-cycle payroll for the period ending December 6, 2014 will be created as usual on Tuesday, December 9, 2014. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 9, 2014 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 6, 2014 will also occur December 9, 2014. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 p.m., payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Wednesday, December 10, 2014
The second on-cycle preliminary pay calculation for the period ending December 6, 2014 will occur December 10, 2014.
Thursday, December 11, 2014
The third on-cycle preliminary pay calculation for the period ending December 6, 2014 will occur December 11, 2014.
Regents’ on-cycle payroll files for the period ending December 6, 2014 are due to the Department of Administration by 4:00 p.m. on December 11, 2014.
Friday, December 12, 2014
Final pay confirmation for the on-cycle payroll for the period ending December 6, 2014 will occur December 12, 2014. For SHARP agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 12, 2014 in order for a paycheck record to be created. All non-health benefit deductions and tax data changes must be entered by 6:00 p.m. on December 12, 2014 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, December 19, 2014.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 6, 2014 are due to the Department of Administration by 4:00 p.m. on December 12, 2014.
Monday, December 15, 2014
The Run ‘A’ off-cycle for the period ending December 6, 2014 will be processed December 15, 2014. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, December 19, 2014.
The Regents’ on-cycle files for the period ending December 6, 2014 will be processed.
Tuesday, December 16, 2014
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 6, 2014 must be received by the Department of Administration by 4:00 p.m. on December 16, 2014.
Wednesday, December 17, 2014
The Run 'B' off-cycle for the payroll period ending December 6, 2014 continues to be scheduled for December 17, 2014. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘B’ off-cycle will be dated Monday, December 22, 2014.
Friday, December 19, 2014
Payday for the payroll period ending December 6, 2014.
Regents’ Run ‘C’ off-cycle payroll files for the period ending December 6, 2014 must be received by the Department of Administration by 4:00 p.m. on December 19, 2014.
First opportunity for Time and Labor interface agencies to have time and leave files for the period ending December 20, 2014 submitted to the Department of Administration for processing by 5:00 p.m. on December 19, 2014. (The files would normally be due on Monday, December 22, 2014). Last opportunity to submit files will be noon on Monday, December 22, 2014.
Monday, December 22, 2014
The Run 'C' off-cycle for the payroll period ending December 6, 2014 continues to be scheduled for December 22, 2014. IMPORTANT NOTE: This is the final off-cycle for calendar year 2014. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will be Monday, December 29, 2014. (It would normally be on Thursday, December 25, 2014).
Please note that paysheets for the on-cycle payroll for the period ending December 20, 2014 will be created on Monday, December 22, 2014, instead of the normal day on Tuesday, December 23, 2014, to allow for maximum preliminary payroll calculation opportunities. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 22, 2014 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 20, 2014 will also occur December 22, 2014. (It would normally be on Tuesday, December 23, 2014.) For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Time and Labor interface agencies can submit time and leave files for the period ending December 20, 2014 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on December 22, 2014.
NOTE: Terminations and Retirements must be entered by 6:00 PM on December 22, 2014 and reported time must be submitted by 11:00 AM or 3:30 PM in order for leave payouts to be calculated correctly.
Tuesday, December 23, 2014
The second on-cycle preliminary pay calculation for the period ending December 20, 2014 will occur December 23, 2014. Please note there will be only two preliminary pay calculations for the period ending December 20, 2014.
Regents’ on-cycle payroll files for the period ending December 20, 2014 are due to the Department of Administration by 4:00 p.m. on December 23, 2014. (The files would normally be due on Thursday, December 25, 2014).
Wednesday, December 24, 2014
Christmas Eve ½ Day Holiday
Final pay confirmation for the on-cycle payroll for the period ending December 20, 2014 will occur December 24, 2014. Due to this being a half-day holiday, all employees’ reported time must be entered (and approved if applicable) by 11:30 a.m. Payable time must be approved by noon. All non-health benefit deductions and tax data changes must also be entered by noon on December 24, 2014 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 2, 2015.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 20, 2014 are due to the Department of Administration by 4:00 p.m. on December 24, 2014.
Thursday, December 25, 2014
Christmas Holiday
Friday, December 26, 2014
Christmas Holiday
Monday, December 29, 2014
The Run ‘A’ off-cycle for the period ending December 20, 2014 will be processed December 29, 2014. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, January 2, 2015.
The Regents’ on-cycle files for the period ending December 20, 2014 will be processed.
Tuesday, December 30, 2014
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 20, 2014 are due to the Department of Administration by 4:00 p.m. on December 30, 2014.
Wednesday, December 31, 2014
The Run 'B' off-cycle for the payroll period ending December 20, 2014 continues to be scheduled for December 31, 2014. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘B’ off-cycle will be dated Monday, January 6, 2015.
Attached is a revised calendar for the month of December 2014 that highlights the payroll processing schedule changes due to the Christmas holidays. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
SG:NTR:ccl
Attachment
Printable version of 15-P-014
Informational Circular No.: 15-p-015
Supersedes Informational Circular No: 13-p-008
Effective Date: Payroll Period Ending December 20, 2014
Contact Name: Joyce Dickerson
Ph: (785)296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Change in Organization Dues Deduction for SEAK Members
The organization dues for the State Employees Association of Kansas (SEAK) will be increased from $6.50 to $7.50 for regular members (ORG050) and from $3.50 to $4.50 for single, head of household members (ORG051) per biweekly payroll period. The new rates will become effective with the payroll period beginning December 7, 2014 and ending December 20, 2014, paid January 2, 2015.
Currently, organization dues must be entered into SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code. In this case, the new rate for deduction code ORG050 will increase from $6.44 to $7.44 and the fee (ORF050) will remain at $.06 (for a total of $7.50 per biweekly payroll period). The new rate for deduction code ORG051 will increase from $3.44 to $4.44 and the fee (ORF051) will remain at $.06 (for a total of $4.50 per biweekly payroll period).
The Office of Systems Management, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems effective with the payroll period noted above.
SG:NTR:ccl
Printable version of 15-P-015
Informational Circular No.: 15-p-016
Effective Date: Payroll Period Ending December 20, 2014
OSM Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
KDHE Contact Name: Delos DeCelle
Ph: (785) 296-3667
Email: ddecelle@kdheks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Addition of new Health Reimbursement Accounts/Medical Benefit Plans and Deduction Codes and Other Changes for Group Health Insurance Plan Year 2015
The Health Care Commission has approved adding Aetna as a new medical vendor for plan year 2015. In addition, beginning with plan year 2015, those employees enrolled in Plan C that are not eligible for a Health Savings Account (HSA) may now elect a Health Reimbursement Account (HRA). A Health Reimbursement Account is an employer-sponsored plan that has similarities to both a Health Care Flexible Spending Account and a Health Savings Account. However, contributions are funded entirely by the employer - no employee contributions are permitted, the HRA is not portable and any remaining funds at the end of the year will not roll into the next plan year.
To accommodate the new medical vendor and the HRA option processing, the following new Plan Type (68) and Benefit Plans/Deduction codes are being added in SHARP effective 12/7/2014:
PLAN TYPE | BEN PLAN/DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION |
---|---|---|---|
10 | AETABT | Medical-Aetna Plan A | Medical |
10 | AETCBT | Medical-Aetna Plan C | Medical |
10 | AETAAT | Medical-Aetna Plan A | Medical |
10 | AETCAT | Medical-Aetna Plan C | Medical |
68 | HRADR | Health Reimb Acct-ER-Dep | HRA-ER Dep |
68 | HRASR | Health Reimb Acct-ER-Single | HRA-ER Sgl |
For plan year (PY) 2015, the Health Care Commission has again approved making the employer contribution amount to an HSA and also an HRA benefit option in two equal installments. The first installment will be made during the second pay period in January (January 16, 2015 paycheck date) and the second installment will be made during the first pay period in July (July 2, 2015 paycheck date). This employer contribution will be processed in SHARP for each employee participating through the State of Kansas health insurance program in a High Deductible Health Plan (HDHP) and making the required employee contribution to an HSA, or if not eligible for an HSA is eligible for an HRA. For employees who still have a balance in their Health Care Flexible Spending Account on December 31, 2014, both the prorated bi-annual employer contribution and employee contributions will be delayed until after March 15, 2015. Employee HSA contributions will continue to be deducted semi-monthly throughout PY 2015. However, the January 2015 employee deductions will occur on the second and third paychecks of January. All other employee deductions for 2015 will occur as normal on the first and second paychecks of the remaining months.
For both HDHP benefit options (Blue Cross and Aetna) for 2015, the combined total for both HSA (and HRA) bi-annual employer contribution amounts for full-time employees will be $1,500 for single coverage and $2,250 for dependent coverage. For part-time employees, the combined total for both HSA (and HRA) bi-annual employer contribution amounts will be $1,125.20 for single coverage and $1,687.60 for dependent coverage. Prorated employer contribution amounts for all employees will be as follows depending on the month the employee is enrolled for coverage:
Fulltime |
Single |
Employee + dependent |
Parttime |
Single |
Employee + dependent |
---|---|---|---|---|---|
January |
$750.00 |
$1,125.00 |
January |
$562.60 |
$843.80 |
February |
$625.00 |
$937.50 |
February |
$468.83 |
$703.16 |
March |
$500.00 |
$750.00 |
March |
$375.06 |
$562.53 |
April |
$375.00 |
$562.50 |
April |
$281.30 |
$421.90 |
May |
$250.00 |
$375.00 |
May |
$187.54 |
$281.27 |
June |
$125.00 |
$187.50 |
June |
$93.77 |
$140.63 |
July |
$750.00 |
$1,125.00 |
July |
$562.60 |
$843.80 |
August |
$625.00 |
$937.50 |
August |
$468.83 |
$703.16 |
September |
$500.00 |
$750.00 |
September |
$375.06 |
$562.53 |
October |
$375.00 |
$562.50 |
October |
$281.30 |
$421.90 |
November |
$250.00 |
$375.00 |
November |
$187.54 |
$281.27 |
December |
$125.00 |
$187.50 |
December |
$93.77 |
$140.63 |
For employees who are enrolled after the beginning of 2015 and for when a hire occurs in the middle of the month, the coverage begin date entered into MAP should be effective for the beginning of the month following 30 days from the date of hire and the appropriate bi-annual prorated employer contribution should also be processed effective on the first paycheck of that month. For example, a new employee is hired on June 17, 2015 and enrolls in HSA. The coverage begin date should be entered effective August 1, 2015 and the HSA prorated bi-annual employer contribution for August will be processed on their first paycheck in August.
For all employees, the agency GHI composite rate cost for the HDHP benefit options will continue to be reduced by the amount of the semi-monthly HSA/HRA employer contribution. All GHI, HSA, and HRA employer contributions will be charged to Account Code 519500.
Beginning in 2015, a pared down list of valid benefit plans/deduction codes will be used for Health Benefit processing from the MAP Health Benefits system into SHARP. The valid benefit plans/deduction codes listing is attached to this circular. Regents should also use this list of valid codes when submitting their pay detail files to Payroll Services beginning with the January 2, 2015 paycheck.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system for these changes. Regent’s institutions are responsible for ensuring that the new medical deduction codes as well as the Health Reimbursement Account processing procedures are implemented in their individual systems effective for the payroll period noted above.
Attachment
Printable version of 15-P-016
SG:NTR:ewb
INFORMATIONAL CIRCULAR NO: 15-P-017
Effective Date: Immdeiately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: December 2014 Payroll Processing and Updated December Processing Calendar
As 2014 calendar year-end approaches, the Office of Systems Management is making preparations for the issuance of calendar year 2014 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2014 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2015 balances; a corrected W-2 (Form W-2C) for 2014 will not be issued for the employee involved.
FINAL 2014 PAYCHECK
The final on-cycle paychecks for calendar year 2014 will be issued December 19, 2014. Payroll transactions for the December 19, 2014 on-cycle paychecks will be posted to SMART on Wednesday night, December 17, 2014. The final off-cycle paychecks for calendar year 2014 will be issued on December 29, 2014 (generated from the off-cycle processed on December 22, 2014).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 22, 2014 to enter paycheck adjustment requests for any 2014 paychecks. Adjustments processed in the December 22, 2014 off-cycle payroll will be reflected on the employee’s 2014 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2014 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Systems Management, Payroll Section by 5:00 p.m. on Monday, December 15, 2014.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2014 for inclusion in the December 22, 2014 off-cycle. However, if a large volume of DA-180 forms is received on the December 15, 2014 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2014 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 22, 2014 which are adjusting paychecks issued prior to January 1, 2015 will not result in a W-2C; the adjustment will update the employee’s 2015 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 22, 2014 will update the employee’s 2015 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 6, 2014, paid December 19, 2014 are due to the Department of Administration by 4:00 p.m. on December 11, 2014.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2014 Paycheck Reversals
Regent Institutions must submit all transmittals for 2014 paycheck reversals by 4:00 p.m. on Friday, December 19, 2014 in order to update the employee’s 2014 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2015 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2015 submitted after 4:00 p.m. on December 19, 2014 should default the pay adjust check date to January 1, 2015.
2014 Adjustments and Supplementals
In order to update employee balances for 2014, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 19, 2014. The Run C off-cycle for the pay period ending December 6, 2014 generated on the night of Monday, December 22, 2014 will have a check issue date of December 29, 2014; all activity for this off-cycle will be reflected in the employees’ 2014 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2014 date.
2015 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2015, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 19, 2014, will be considered to be 2015 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2015 business, the employee’s 2015 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2015 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2015, agencies should default the pay adjust check date to January 1, 2015).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2015, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2015 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2015 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 19, 2014 deadline for the December 22, 2014 Run C’s off-cycle payroll will not be processed until the April 13, 2015 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 6, 2015. The deadline for submitting payroll interface files for the April 13, 2015 off-cycle is 4:00 p.m. on Friday, April 10, 2015.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2014 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 07, 2014 and December 20, 2014 in order for the last 2014 deduction to be taken on the paycheck issued December 19, 2014. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2015, agencies can enter a new row effective-dated between December 07, 2014 and December 20, 2014 in order for the first deduction for United Way or Community Health Charities for 2015 to be taken on the January 2, 2015 paycheck. If the deduction is to be taken over 27 pay periods, a deduction end date of December 20, 2015 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2015.
A batch process will run the night of December 19, 2014 to establish the fee portion (deduction code UTFXXX) of the 2015 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2015. This process will reduce the 2015 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2015 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 22, 2014 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2015 United Way/Community Health Charities deductions after December 19, 2014, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2014 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 1, 2014 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under Main Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2015. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2015 W-4s. Employees should submit new paper W-4s by December 10, 2014 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 18, 2014 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2015.
The KPAY320 will be processed the evening of December 18, 2014. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2015 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2015 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2015 paper W-4s (for employees claiming exemption from withholding) received between December 18, 2014 and January 1, 2015, agency personnel will need to enter the data with a January 2, 2015 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2015 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. See Payroll Informational Circular 15-P-004 issued September 10, 2014 for information pertaining to Employee Self Service K-4 update capability.
The 2015 Form W-4 will be posted to the Office of Systems Management’s website as soon as it is available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 18, 2014 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2015. The new tax data row will be dated January 1, 2015. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2015 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2015 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month except for January, deducted on the second and third pay dates of the month.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the cut-off date of December 22, 2014. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Any arrearage collections made by personal reimbursement that are collected after December 12, 2014, and prior to December 22, 2014, must be sent to the Office of Systems Management, Payroll Section for processing in order to impact the 2014 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2014 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 6, 2014 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2014 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 19, 2014. Please remember that these forms are only for those arrearages that are actively being collected.
On December 31, 2014, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 23, 2014 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 23, 2014 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 19, 2014. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 29, 2014 and January 2, 2015. Electronic W-2 forms through Employee Self Service will be available on or before January 2, 2015. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2015. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2014 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment
Printable version of 15-P-017
SG:NTR:kao
Informational Circular No.: 15-P-018
Supersedes Informational Circular No: 14-P-012
Effective Date: January 1, 2015
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New State Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2015
The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2015. Please note that the standard deduction for one withholding allowance remains unchanged at $ 2,250.00 per year in calendar year 2015. The attached tables are to be used in computing state tax withholding for wages paid on or after January 1, 2015. In order to use the attached tables, income must be annualized. To annualize income, multiply state taxable income for the current bi-weekly pay period by twenty-six pay periods.
The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system to implement the new withholding tax rates. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
SG:NTR:ewb
Attachment: Table for Percentage Method of Withholding
Printable version of 15-P-018
Informational Circular No.: 15-p-019
Supersedes Informational Circular No: 14-P-014
Effective Date: January 1, 2015
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued on or After January 1, 2015
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2015. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2015. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In addition, the value of one withholding allowance has increased to $4,000 for 2015.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2015 has increased to $2,300. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Currently, the IRS has not yet released Publication 1494 for 2015.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2014 to all SHARP employees who were exempt from federal withholding in 2014. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2015. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at Sharp Login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2015 W-4s. The 2015 Form W-4 is immediately available at the IRS website at IRS W4 and at the Office of Systems Management website at Document Center. Employees should submit their new W-4s as soon as possible to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 18, 2014 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2015.
The KPAY320 will process during the batch cycle generated on the evening of December 18, 2014. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2015 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’.
For any Form W-4s for 2015 received between December 18, 2014 and January 1, 2015, agency personnel will need to enter the data with a January 2, 2015 effective date. Agency Workflow Administrators also will need to change the effective date to January 2, 2015 for any electronic FormsW-4s for 2015 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2014 must file a new 8233 form for calendar year 2015 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 18, 2014, will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2015. The new tax data row will be dated January 1, 2015. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2015 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 18, 2014. The report will be available in the agency directory on the MVS on Friday, December 19, 2014. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Office of Systems Management, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
SG:NTR:ewb
Attachment:
Tables for Percentage Method of Withholding
Printable version of 15-P-019
Informational Circular No.: 15-p-020
Effective Date: Immediately
Contact Name: Jennifer Holthaus
Ph: (785) 368-6313
Email: jennifer.holthaus@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Changes to Procedures for Lump Sum Income Withholding Orders
In September 2013, Payroll Services issued payroll informational circular 14-P-006, Implementation of Lump Sum Withholding Orders per HB2015. HB2015, passed during the 2013 Legislative Session, requires a 14-day notice be provided to the Department of Children and Families (DCF) prior to a lump sum payment being made by a payor (employer) to an obligor (employee) for whom an active income withholding order (IWO) with an arrears amount has been served on the employer. The 14-day notice is required in order to allow DCF to request a new IWO specifying the amount the employer is required to withhold from the lump sum payment. Legislation allows the employer the right to withhold up to 100% of the lump sum wages to pay towards the IWO arrears amount.
As a full year has passed since implementation of the Lump Sum IWO legislation, DCF Child Support Services division has conducted a review of the procedures and has notified Payroll Services of the following change going forward:
While maintaining the legal right to withhold up to 100% of the lump sum wages, DCF’s intent is to cap the withholding on lump sum wages at 50% of the lump sum bonus going forward. In order to implement the 50% cap on lump sum wage withholding going forward, DCF will be modifying the existing lump sum income withholding orders issued to Payroll Services to specify on the order a flat dollar amount to be withheld. This will require Payroll Services to provide to DCF the amount of the anticipated bonus when providing the notification to DCF. Payroll Services has made modifications to the KPAY226 “Employees with Title IV-D IWO Garnishments with Arrears”, to include the known amount of the longevity bonus an employee is to receive. For employees identified on the KPAY226 as requiring notification of lump sum payments, any future payment related to leave payouts will require the agency to provide the following information
- Employee Name
- Estimated pay check date of the lump sum payment
- Total hours (Sick and Vacation, if both are to be paid) to be paid to employee
to Jennifer Holthaus in Payroll Services at Jennifer.Holthaus@da.ks.gov NO LATER THAN 21 DAYS PRIOR TO THE CHECK DATE ON WHICH THE PAYMENT IS SCHEDULED TO BE PAID. A calculation of the total amount to be paid to the employee for leave payouts will be provided to DCF, based on the information provided by the agency. DCF has been made aware that in the case of leave payouts, this may be an estimated lump sum amount if it is provided prior to the actual pay period in which the payout occurs. DCF is in agreement with that approach as they are retaining the legal right to withhold up to 100% of the bonus amount.
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Printable version of 15-P-020
Informational Circular No.: 15-p-021
Supersedes Informational Circular No: 08-P-028
Effective Date: Payroll Period Ending January 3, 2015
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG133
The organization dues for members of the Public Service Employees Local Union 1290 P.E. (represents employees at the University of Kansas and the University of Kansas Medical Center)
will increase from $13.47 to $13.56 per biweekly payroll period. The new rate will become effective with the payroll period beginning December 21, 2014 and ending January 3, 2015, paid January 16, 2015.
The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $13.41 to $13.50 and the fee (ORF133) will remain at $.06 (for a total deduction of $13.56 per biweekly payroll period).
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
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Printable Version of 15-P-021
Informational Circular No.: 15-p-022
Supersedes Informational Circular No: 14-P-015
Effective Date: January 1, 2015
Contact Name: Kathy Ogle
Ph: (785) 296-2290
Email: kathy.ogle@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2015
The Internal Revenue Service (IRS) has announced the standard mileage rate will increase to 57.5 cents beginning January 1, 2015 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 57.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2015 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $16,000 for a car (unchanged from 2013 and 2014), and $17,500 (up from $17,300 in 2014) for a passenger truck or van. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
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Printable version of 15-P-022
Informational Circular No.: 15-p-023
Supersedes Informational Circular No: 14-P-030 Attachment A
Effective Date: Pay Period Beginning December 21, 2014; Ending January 3, 2015; Paid January 16, 2015
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: KPERS Employer Rate Reduction for the Remainder of Fiscal Year 2015
Pursuant to the Governor’s announced allotment plan, some KPERS employer contribution rates will be reduced for the second half of Fiscal Year 2015. The rate for Regular and Corrections KPERS members will be reduced from the current rate of 12.12 percent (base rate of 11.27 percent plus Death and Disability rate of 0.85 percent) to a composite rate of 9.5 percent (base rate of 8.65 percent plus Death and Disability rate of 0.85 percent). This rate reduction also includes Legislators and legislative agencies. However, it does not include KPERS Police and Fire members and Judges. The reduced contribution rates will be effective with the payroll period beginning December 21, 2014 and ending January 3, 2015, paid January 16, 2015.
Please refer to the attachment for a revised listing of all KPERS employer rates. The employer rates that have been reduced are in bold font on the attachment.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to reflect these changes in employee contribution rates. Regent institutions are responsible for ensuring these rate changes are reflected in their individual systems.
Attachment
Printable Version of 15-P-023
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Informational Circular No.: 15-p-024
Supersedes Informational Circular No: 14-P-018
Effective Date: Pay Period Beginning January 4, 2015; Ending January 17, 2015; Paid January 30, 2015
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: New KPERS Employee Contribution Rate for Tier 1 Members
Pursuant to Sub House Bill (HB) 2333 passed in the 2012 legislature, the KPERS employee contribution rate for Tier 1 members will increase from the current 5% of such member’s compensation to 6% beginning January 1, 2015. The new contribution rate of 6% will be deducted from Tier 1 member’s pay effective with the payroll period beginning January 4, 2015 and ending January 17, 2015, paid January 30, 2015. This rate increase also includes Tier 1 correctional and legislative employees.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to reflect these changes in employee contribution rates. Regent institutions are responsible for ensuring these rate changes are reflected in their individual systems.
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Printable Version of 15-P-024
Informational Circular NO: 15-P-025
Supersedes Informational Circular No: 14-P-019
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Information Pertaining to Employee 2014 W-2 Statements.
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2014 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2014. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 28, 2015.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2014 W-2's that were printed for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with mailing the 2014 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2014. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service. For those receiving a printed W-2, the form will be printed and pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.
All paper 2014 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2015. At that time, they will be destroyed.
In cases where the 2014 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2009 through 2014, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service at https://sharp.ks.gov/psp/ESS/, and then viewing and printing the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who retired or terminated from State service on or after September 16, 2011, have access to consent to view/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2014, 2013, 2012, 2011, 2010, or 2009) the reissued W-2 is needed. Duplicate W-2’s for 2009- 2013 are currently available, and duplicate W-2’s for 2014 will be available starting on Wednesday, February 11, 2014. Please note that duplicate W-2’s for the year 2009 will no longer be available after mid-April 2015.
The Office of Systems Management, Payroll Services will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2014 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2014 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-7059.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 19, 2014 and off-cycle checks dated December 22, 2014 and December 29, 2014 are included in the 2014 W-2 amounts.
Attachment A
Attachment B
Printable Version of 15-P-025
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Informational Circular No.: 15-p-026
Supersedes Informational Circular No: 14-p-020
Effective Date: Immediately
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: 2015 W-2 Production Report Schedule
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2015 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2015 W-2 production reports are scheduled to be generated:
Friday, February 13, 2015
Friday, March 13, 2015
Friday, April 24, 2015
Friday, May 22, 2015
Friday, June 19, 2015
Friday, July 17, 2015
Friday, August 14, 2015
Friday, September 11, 2015
Friday, October 9, 2015
Friday, November 6, 2015
Friday, November 20, 2015
Monday, December 7, 2015
Monday, December 14, 2015
Monday, December 21, 2015
Monday, December 28, 2015
Monday, January 4, 2016
Wednesday, January 6, 2016 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by the Office of Systems Management. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2015 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
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Printable version of 15-P-026
Informational Circular No.: 15-p-027
Supersedes Informational Circular No: 11-P-004
Effective Date: January 2, 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Modification of Earnings Code S16 due to Memorandum of Agreement between the State of Kansas and the Fraternal Order of Police Lodge No. 64 Signed January 2, 2015
The Memorandum of Agreement, Article 25, between the State of Kansas Department of Corrections (KDOC) and the Fraternal Order of Police Lodge No. 64 signed in January 2015 now stipulates that if Parole Duty Officers respond to calls after regularly scheduled work hours, weekends and holidays in accordance to departmental policy IMPP 14-147 – Parole Duty Officer, duty officer hours shall be compensated at a rate of $28.00 per day (previously $1.25 per hour) for hours beyond regularly scheduled work as designated duty officer. As a result of the agreement, the description for earnings code S16 has been modified in SHARP effective January 4, 2015 as follows:
Earnings Short Effective Code Description Description Date
S16 Duty Officer Pay-FOP-$28.00 Shft FOP 1/4/2015
The Office of Personnel Services has also updated the S16 Time Reporting Code (TRC) to reflect the S16 Earnings Code changes. In addition, timesheet entry will now allow only a one (1) to be entered per day. If a value other than 1 is entered on the timesheet, the following message will display upon Saving and validating time worked or Submitting: “Daily quantity for TRC S16 must be between 1 and 1. Current total for 2015-01-05 is X. (13504,234). Review all your entries for the TRC and adjust as necessary.”
KDOC employees will enter a ‘1’ on their timesheet for each day they need to be paid the $28.00. The system configuration will automatically calculate the total amount to be paid over the bi-weekly pay period for the S16 earnings.
The S16 earnings code is only available for use by Department of Corrections. The details of the agreement can be found at http://admin.ks.gov/docs/default-source/ops/labor-relations/docmoa.pdf?sfvrsn=4.
The Office of Systems Management, Payroll Systems Team, is responsible for updating this earnings code in the SHARP system.
Printable version of 15-P-027
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Informational Circular No.: 15-p-028
Effective Date: December 21, 2014
Contact Name: Nancy Ruoff
Ph: (785) 296-2853
Email: nancy.ruoff@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
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 Devices
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.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
COM | Communication Device | CommDev | 12/21/2014 |
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.
Printable Version of 15-P-028
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Informational Circular No: 15-P-029
Effective Date: April 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP SCI Hosting-Payroll Changes and Impact on Payroll Processing Dates in April 2015
This informational circular will discuss key dates and payroll changes in SHARP as a result of the transition to the SHARP Sierra-Cedar (SCI) Hosting site. On-cycle and off-cycle dates have been changed in April in order to accommodate the transition to SCI Hosting. Please review carefully the information contained in this circular and in the calendar attached.
Due to the Hosting transition, scheduled to begin Friday night, April 3, 2015, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Monday, March 30, 2015
The Run C off-cycle for the period ending March 14, 2015 will be processed March 30, 2015. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated April 2, 2015.
Tuesday, March 31, 2015
Paysheets for the on-cycle payroll for the period ending March 28, 2015 will be created on Tuesday, March 31, 2015. For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on March 31, 2015 in order to be reflected on the paysheets for this period. FLSA status changes should not be entered Wednesday through Friday of this week.
The first on-cycle preliminary pay calculation for the period ending March 28, 2015 will also occur March 31, 2015. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on March 31, 2015 in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending March 28, 2015.
Wednesday, April 1, 2015
The second on-cycle preliminary pay calculation for the period ending March 28, 2015 will occur April 1, 2015. NOTE: This will be the last preliminary pay calculation before final pay confirmation runs on April 2, 2015.
Thursday, April 2, 2015
Regents’ on-cycle payroll files for the period ending March 28, 2015 must be received by the Department of Administration by 4:00 PM on April 2, 2015. NOTE: This deadline will be strictly enforced due to running the on-cycle files during the day on Friday, April 3, 2015.
Final pay confirmation for the SHARP on-cycle payroll for the period ending March 28, 2015 will occur April 2, 2015. (Final pay confirmation would normally occur Friday, April 3, 2015). All employees’ time and leave records must be ‘OK to Process’, and all employees’ payable time must be approved, by 6:00 PM on April 2, 2015 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on April 2, 2015 in order to be reflected in the final paycheck created for the employee.
Friday, April 3, 2015
The Regents’ on-cycle files for the period ending March 28, 2015 will be processed during the day on Friday, April 3, 2015.
Regents’ Run A off-cycle payroll files for the period ending March 28, 2015 must be received by the Department of Administration by 4:00 PM on April 3, 2015.
SHARP system (Including Employee Self-service [ESS]) shut down at 6:00 PM. Transition to SCI Hosting begins.
Saturday, April 4, 2015
SHARP/ESS system shut down. Transition to SCI Hosting continues.
Sunday, April 5, 2015
SHARP/ESS system shut down. Transition to SCI Hosting continues.
Monday, April 6, 2015
SHARP/ESS system shut down. NOTE: SHARP system open to Central Department of Administration/OITS core users only.
Tuesday, April 7, 2015
SHARP/ESS system open to all users.
The Run A off-cycle for the period ending March 28, 2015 will be processed April 7, 2015. (This off-cycle would normally be scheduled for Monday, April 6, 2015.) Agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated April 10, 2015.
Wednesday, April 8, 2015
Normal Payroll Processing Schedule resumes.
The Run B off-cycle for the period ending March 28, 2015 will be processed April 8, 2015. Paychecks for the Run B off-cycle will be dated April 13, 2015.
Attached is a partial month calendar for the month of April 2015, which highlights key payroll processing activity around the dates of the Hosting transition. The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
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Attachment
Printable Version of 15-P-029
Informational Circular No.: 15-P-030
Supersedes Informational Circular No: N/A
Effective Date: April 2015
Contact Name: Functional: Earl Brynds, Technical: Greg Smith
Ph: (785) 296-5376, (785) 296-4462
Email: Earl.Brynds@da.ks.gov, Greg.Smith@ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: SHARP SCI Hosting - System access and changes to website address for SHARP and Employee Self-Service Log-In
As discussed in Informational Circular 15-P-029, the transition for SHARP to the Sierra-Cedar (SCI) Hosting site will begin Friday night, April 3, 2015. Agencies should have access restored to SHARP and Employee Self-service (ESS) beginning 7 AM Tuesday morning, April 7, 2015.
This change to the SCI Hosting will require a new URL to be used for logging into the production environments. The new URLs are listed below. Agency HR/Payroll staff, who have not previously tested the new links, should test the URL’s now to ensure agency staff are able to reach the sign-in page. DO NOT try to sign in (prior to Tuesday, April 7, 2015) because the links are not active yet.
If the standard SHARP sign-in and ESS sign-in pages do not appear when testing the URLs, contact your agency IT staff to ensure the URL/IP is available from your agency network. Agency HR/Payroll staff should also communicate the new URLs to all employees. In addition, new ‘Favorites’ will need to be established with the new URL’s as the old ones will not work after the cutover to SCI Hosting.
PRD URL |
NEW URL For SHARP and ESS |
IP Address |
---|---|---|
Signon Page-HR |
208.99.170.147 /Port 443 |
|
ESS
|
208.99.170.147 /Port 443 |
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Printable Version of 15-P-030
Informational Circular No.: 15-p-031
Supersedes Informational Circular No: 11-P-014
Effective Date: June 1, 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: Earl.brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Optional Group Life Insurance and Optional Spousal Life Insurance Rate Changes.
Please note that effective June 1, 2015 the Optional Group Life Insurance rates are changing as follows:
Age at the Beginning Monthly Premium
of June 2015 per $1,000
Under 25 $0.04
25-29 $0.04
30-34 $0.06
35-39 $0.07
40-44 $0.08
45-49 $0.12
50-54 $0.17
55-59 $0.32
60-64 $0.51
65-69 $0.95
70-74 $1.54
75 and Older $1.67
An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available is $300,000.00. The age calculation will continue to be based on the employee’s attained age as of January 1st of the current calendar year.
Effective June 1, 2015 the Spousal Group Life Insurance rates are changing as follows:
Age at the Beginning Monthly Premium
of June 2015 per $1,000
Under 25 $0.09
25-29 $0.09
30-34 $0.13
35-39 $0.14
40-44 $0.16
45-49 $0.23
50-54 $0.34
55-59 $0.65
60-64 $0.99
65-69 $1.91
70-74 $3.08
75 and Older $3.33
The new rates are effective with coverage for the month of June 2015. Therefore, the June 19, 2015 paycheck (paycheck issued for the payroll period ending June 6, 2015) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month’s coverage.
The Department of Administration, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to June 1, 2015.
Printable version of 15-P-031
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Informational Circular No.: 15-p-032
Supersedes Informational Circular No: 14-P-027
Effective Date: Immediately
Contact Name: Joyce Dickerson
Ph: (785) 296-3979
Email: joyce.dickerson@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Summary of Fiscal Year End Payroll Processing
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2016 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 6, 2015 will use fiscal year 2015 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 6, 2015 will use fiscal year 2016 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run C off-cycle (scheduled for June 22, 2015, paid June 25, 2015) for the pay period ending June 6, 2015 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2015 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 14, 2015 and should be completed by Monday morning, June 15, 2015. In that process, a new row will be added to the Department Budget tables with an effective date of June 7, 2015 (beginning date of the first on-cycle payroll charged to FY2016). The Budget End Date will be June 6, 2016.
Agencies should send Combination Code files or any Department Budget Table files for FY16 changes into Payroll Services by Friday, June 12, 2015. These files will be loaded into SHARP beginning Monday, June 15, 2015. Agencies should not enter any rows with an effective date greater than or equal to June 7, 2015 until after the FY2016 insert has been completed. When adding new rows for FY2016, agencies should verify that June 6, 2016 was used as the Budget End Date for FY2016.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday, June 19, 2015 after the ‘B’ off-cycle process has been completed for the June 6, 2015 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 19. Agencies are encouraged to complete all FY15 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 17, 2015, to take advantage of this early run of the KPAYGL5C. Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 22, 2015 will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 24, 2015.
GHI Adjustments
As of September 1, 2014, GHI adjustments can only be processed for terminated employees. Contact SEHP Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 at Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan about event maintenance that may affect claims processing for any active employees.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period.Agencies should not change the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling.Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation.The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
Printable Version of 15-P-032
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Informational Circular No.: 15-P-033
Supersedes Informational Circular No: 14-P-028 & 14-P-031
Effective Date: Payroll Period Beginning June 7, 2015 and Ending June 20, 2015, Paid July 2, 2015
Contact Name: Earl Brynds
Ph: (785) 296-5376
Email: Earl.Brynds@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Parking Fee Increase - Curtis Building Garage - FY2016
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2016. To implement this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 7, 2015 and ending June 20, 2015, paid July 2, 2015:
Deduction Code | New bi-weekly rate for pped 6/20/15 |
---|---|
PKT08B | 27.40 |
PPKT08 | 27.40 |
PKAD05 (admin fee) | 2.10 ($27.40 * .0765) |
Employees with Attorney General and Department of Commerce who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code | New bi-weekly rate for pped 6/20/15 |
---|---|
PKT10B | 13.70 |
PPKT10 | 13.70 |
PKAD07 (admin fee) | 1.05($13.70 * .0765) |
The parking rates for Secretary of State employees are listed below and do not change:
Deduction Code | Bi-weekly rate for pped 6/20/15 |
---|---|
PKT09B | 9.23 |
PPKT09 | 9.23 |
PKAD06 (admin fee) | 0.71 ($9.23 * .0765) |
The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
Printable version of 15-P-033
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Informational Circular No.: 15-p-034
Supersedes Informational Circular No: 14-p-029
Effective Date: July 1, 2015
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: Carmen.Waters@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of the Chief Financial Officer. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2016 will require entry into the SHARP v9.1 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2016 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 22, 2015 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 20, 2015 (paychecks dated July 2, 2015).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment
Printable Version of 15-P-034
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Informational Circular No.: 15-p-035
Supersedes Informational Circular No: 14-p-030
Effective Date: Pay Period Beginning June 7, 2015; Ending June 20, 2015; Paid July 2, 2015
Contact Name: Carmen Waters
Ph: (785) 296-7059
Email: carmen.waters@da.ks.gov
Approval: Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2016-Employeee/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 2016. The fiscal year 2016 rates will become effective with the on-cycle payroll period beginning June 7, 2015, ending June 20, 2015 and paid July 2, 2015. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2015.
For Fiscal Year 2016, the employer’s contribution to KPERS Death and Disability Insurance 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 April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; 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 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2016, employer rates are 11.44% Actuarial Employer Rate, 6.00% Statutory Employer Rate, for a Total Combined Rate of 17.44%. Retirees enrolled in the ‘PR’ benefit plan 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.
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Attachment A
Attachment B
Attachment C
Printable Version of 15-P-035
DATE: | August 12, 2005 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | Payroll Period Ending September 10, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning August 28, 2005 and ending September 10, 2005, paid September 23, 2005 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.35 or Less | $ 588.00 or Less | $ 8.05 |
ORG002 | $ 7.36 - $ 8.51 | $ 588.80 - $ 680.80 | $ 8.55 |
ORG003 | $ 8.52 - $ 9.39 | $ 681.60 - $ 751.20 | $ 9.05 |
ORG004 | $ 9.40 - $ 10.35 | $ 752.00 - $ 828.00 | $ 9.55 |
ORG005 | $ 10.36 - $ 11.41 | $ 828.80 - $ 912.80 | $10.05 |
ORG006 | $ 11.42 or Greater | $ 913.60 - or Greater | $10.55 |
ORG888 | KU Medical Center - Nurses | $10.55 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $ 8.75 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 23, 2005.
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DATE: | August 29, 2005 | ||
---|---|---|---|
SUBJECT: | Additions/Change of Earnings Codes (S12, S13, S10) | ||
EFFECTIVE DATE: | Various | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Additions/Change of Earnings Codes (S12, S13, S10) |
Executive Directive No. 05-363 establishes two new pay differential Earnings Codes, and changes one as follows:
A new public accommodation pay premium of $1.20 per hour has been established for eligible employees. This pay premium is only available for use by the Kansas Department of Transportation for employees in eligible job classes who work a regularly scheduled evening or night shift on construction and maintenance projects for highways or roads, as provided in supplemental agreements with appropriate employee organizations. The new earnings code is effective for the payroll period beginning June 5, 2005; ending June 18, 2005; paid July 1, 2005, will add to gross earnings and will be displayed as follows:
Earnings Code |
Description |
Short Description |
Rate |
Effective Date |
---|---|---|---|---|
S12 | Pay Prem-Public Accommodation | PP-Pub Acc | $1.20 | 06/05/2005 |
A new special duty differential of $1.00 per hour has been established for Certified Nurse Aide I employees of the Kansas Commission on Veterans' Affairs for the actual hours of work spent passing medications. The new earnings code is effective for the payroll period beginning July 3, 2005; ending July 16, 2005; paid July 29, 2005, will add to gross earnings and will be displayed as follows:
Earnings Code |
Description |
Short Description |
Rate |
Effective Date |
---|---|---|---|---|
S13 | Pay Diff-KCVA-CNA I Meds | PD-KCVA | $1.00 | 07/03/2005 |
The amount of pay differential paid using Earnings Code S10 has been changed from $1.00 per hour to $1.50 per hour. This pay differential is only available for use by the Kansas Department of Transportation for non-exempt employees performing and/or supporting emergency snow removal activities. The new amount is effective for the payroll period beginning August 28, 2005; ending September 10, 2005; paid September 23, 2005, and will be displayed as follows:
Earnings Code |
Description |
Short Description |
Rate |
Effective Date |
---|---|---|---|---|
S10 | Shift 10-KDOT-$1.50 | Shift KDOT | $1.50 | 08/28/2005 |
The SHARP self-service paycheck view will display the earnings using the 'Short Description' noted above while the paycheck stub will display the earnings using the 'Description' column. The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these new earnings code and changing the existing code in the SHARP system. Regent's institutions are responsible for ensuring that these changes are reflected in their payroll systems.
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DATE: | August 30, 2005 | ||
---|---|---|---|
SUBJECT: | Organization Dues Changes for ORG030 | ||
EFFECTIVE DATE: | Payroll Period Ending September 10, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code 'ORG030', will change from $24.05 to $24.55 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 28, 2005 and ending September 10, 2005, paid September 23, 2005.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 23, 2005.
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DATE: | September 8, 2005 | ||
---|---|---|---|
SUBJECT: | Organization Dues Change for ORG133 | ||
EFFECTIVE DATE: | Payroll Period Ending September 24, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change in Organization Dues Deduction for Public Service Employees Union Local 1132 |
The organization dues for members of the Public Service Employees Union, Local 1132, ORG133, will be increased from $11.00 to $12.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning September 11, 2005 and ending September 24, 2005, paid October 7, 2005.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after October 7, 2005.
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DATE: | September 16, 2005 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | September 1, 2005 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | IRS Changes to Cents-Per-Mile Valuation Rule for End of Calendar Year 2005 |
The Internal Revenue Service (IRS) has increased the mileage rate from 40.5 cents (for January 1, 2005 through August 31, 2005) to 48.5 cents (for September 1, 2005 through December 31, 2005) under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned or leased vehicle. The new rate is effective for the last four months of 2005 in a response by the IRS to the recent gas price increases. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 48.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle's total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2005 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $14,800. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.
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DATE: | September 30, 2005 | ||
---|---|---|---|
SUBJECT: | Organization Dues Change for ORG371 | ||
EFFECTIVE DATE: | Payroll Period Ending October 8, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change in Organization Dues Deduction for AFSCME Council 72 Local 3371 |
The organization dues for members of the AFSCME Council 72, Local 3371, ORG371, will be increased from $13.82 to $15.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning September 25, 2005 and ending October 8, 2005, paid October 21, 2005.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after October 21, 2005.
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DATE: | October 4, 2005 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for 2006 | ||
EFFECTIVE DATE: | Calendar Year 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2006 |
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2006. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run 'A') will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs 'B' and 'C') will normally be dated three working days from the date the off-cycle is processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll.
Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Attachments: Bi-Weekly Payroll Schedule for Calendar Year 2006 (pdf)
DATE: | October 5, 2005 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | Abby.Moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Changes |
Payroll Services has been notified that the name for American Express Financial Advisors, Inc. (VTSA #321) has changed to Ameriprise Financial Services, Inc. Vendor number 410823832-05 in STARS has been closed and remittances have been redirected to the new vendor/suffix combination 410973005-00 for Ameriprise Financial Services, Inc.
In addition to the above name change, the Kansas Board of Regents has requested that the Principal Financial Group (VTSA #084) be removed from the list of approved providers for voluntary tax sheltered annuities. This company has no current subscribers and is deleted effective September 25, 2005.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | October 14, 2005 | ||
---|---|---|---|
SUBJECT: | Addition of Payroll Deduction Codes for Health Savings Account | ||
EFFECTIVE DATE: | Pay Period Beginning December 18, 2005; Ending December 31, 2005; Paid January 13, 2006 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | Nancy.Ruoff@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Payroll Deduction Code for the Health Savings Account Program |
For Plan Year 2006, a Qualified High Deductible Health Plan (QHDHP) is available to employees as a benefit option under the State of Kansas health insurance program. The QHDHP is offered through Coventry Healthcare. Employees electing the QHDHP option are also required to contribute to a Health Savings Account (HSA). An HSA is a special account owned by an individual where contributions to the account are to pay for current and future medical expenses. HSA's were created in Medicare legislation signed into law by President Bush on December 8, 2003. United Missouri Bank (UMB) is the custodian for the State of Kansas HSA program.
To accommodate the new HSA employee contribution, new plan types and deduction codes will be added in SHARP effective for the payroll period beginning December 18 and ending December 31, 2005, paid January 13, 2006. These new plan types/deduction codes are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y | HSASGL | HSA-Single Coverage/High Ded | HSA-Single |
6Z | HSADEP | HSA-Dependent Coverage/HighDed | HSA-Depend |
The HSA deduction will always be taken on a pretax basis. The Health Savings Account deduction will occur semi-monthly on the first two paychecks of the month. Payroll deductions for the Health Savings Account program will be remitted to UMB on payday and should be posted to the individual employee accounts on payday.
If an employee enrolls in the new Coventry QHDHP, they will be required to enroll in a Health Savings Account with payroll deductions on a pretax basis for Plan Year 2006. The open enrollment process on the web will require the employee who enrolls in the Coventry QHDHP to also enroll in the HSA. These employees will not be eligible to enroll in the KanElect Health Care Flexible Spending Account for 2006.
For 24 pay cycle employees, the minimum semi-monthly payroll deduction will be $25.00. The maximum semi-monthly payroll deduction will be $62.50 if enrolling in single coverage and $125.00 if enrolling in any level of dependent coverage. For 16 pay cycle employees, the minimum semi-monthly payroll deduction will be $37.50. The maximum semi-monthly payroll deduction will be $93.75 if enrolling in single coverage and $187.50 if enrolling in any level of dependent coverage.
Upon completion of Open Enrollment, an enrollment file will be sent to Coventry by the Division of Health Policy and Finance. Coventry will then provide the enrollment information to UMB bank. UMB will send the employee the HSA account enrollment form and obtain the required signature. Upon receipt by UMB Bank of the required enrollment form, an HSA account will be opened and a debit card sent to the employee.
The following new Fund/Index combination has been established for the Department of Administration clearing fund for Health Savings Account:
AGENCY | FUND | BUDGET UNIT | INDEX |
---|---|---|---|
173 | 9051 | 9075 | 9075 |
In addition, index code 9702 has been added to the STARS system for each of the Regent's Payroll Funds (98XX) to record the receipt of the deduction by the individual Regent's institutions. Attached is an updated copy of the "Index Codes for Agency and DOA Clearing Funds". This document has been updated for the changes noted above and replaces the document issued with Informational Circular 04-P-014 dated November 4, 2003.
The Division of Accounts and Reports, Payroll Services Section will remit the monies to UMB for all agencies. The KPAYHSA2 report will be available in the agency MVS directories to provide employee detail for each remittance period.
The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Health Savings Account Deduction. Regent's institutions are responsible for ensuring that the Health Savings Account deduction is available in their individuals systems. In addition, Regent's institutions should be prepared to test their benefits interface and payroll files for the new deduction prior to November 15, 2005.
DB:JJM:ntr
Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | October 18, 2005 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $94,200 effective January 1, 2006 |
The Social Security wage base for OASDI will be $94,200 for calendar year 2006. This is a $4,200 increase from the 2005 wage base of $90,000. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2006 will be $5,840.40. There continues to be no limit on wages subject to the Medicare tax in 2006. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,840.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:kao
DATE: | November 1, 2005 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2006 | ||
EFFECTIVE DATE: | January 1, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | 2006 Deferred Compensation and Tax Sheltered Annuity Limits |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will increase effective January 1, 2006 as follows:
457(b) Deferred Compensation:
The Deferred Compensation annual contribution limit increases from the lesser of $14,000 or 100% of includible compensation (2005 calendar year limit) to the lesser of $15,000 or 100% of includible compensation (2006 calendar year limit).
The Deferred Compensation special catch-up limit increases from $28,000 (2005 calendar year limit) to $30,000 (2006 calendar year limit). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $5,000 (for 2006) to a total of $20,000.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2006 is the lesser of $44,000 or 100% of compensation.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $210,000 (for 2005) to $220,000 (for 2006). The $220,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees who participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $22,000 ($220,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $30,800 ($220,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2006 is the lesser of $44,000 or 100% of compensation.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $210,000 (for 2005) to $220,000 (for 2006). The $220,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees who participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $22,000 ($220,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $30,800 ($220,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents' mandatory plan prior to 1996, participants are 'grandfathered' and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $315,000 (for 2005) to $325,000 (for 2006). However, participants should note their maximum annual compensation limit will be $314,285.71, since the $314,285.71 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $44,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $14,000 (for 2005) to $15,000 (for 2006). In addition, the age 50 or older catch-up provision is increased from $4,000 (for 2005) to $5,000 (for 2006). Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on annual contribution by $5,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($15,000 for 2006) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents' institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents' institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
DB:JJM:kao
DATE: | November 2, 2005 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2005 | ||
EFFECTIVE DATE: | November 2005 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2005 holidays. |
Friday, November 11, 2005 (Veterans' Day), Thursday, November 24, 2005 and Friday, November 25, 2005 (Thanksgiving Holiday) are designated holidays for state service in 2005. Due to the holidays in November, variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, November 4, 2005
Payday for the payroll period ending October 22, 2005.
Time and leave interface agencies must have time and leave files for the period ending November 5, 2005 submitted to the Department of Administration for processing by 5:00 PM on November 4, 2005 (these files would normally be due Monday, November 7, 2005).
Regents' Run C off-cycle payroll files for the period ending October 22, 2005 must be received by the Department of Administration by 5:00 PM on November 4, 2005.
Monday, November 7, 2005
Paysheets for the on-cycle payroll for the period ending November 5, 2005 will be created on Monday, November 7, 2005. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 7, 2005 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 5, 2005 will also occur November 7, 2005; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM.
The Run C off-cycle for the period ending October 22, 2005 will be processed November 7, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 10, 2005.
Tuesday, November 8, 2005
The second on-cycle preliminary pay calculation for the period ending November 5, 2005 will occur November 8, 2005.
Wednesday, November 9, 2005
The third on-cycle preliminary pay calculation for the period ending November 5, 2005 will occur November 9, 2005.
Thursday, November 10, 2005
Regents' on-cycle payroll files for the period ending November 5, 2005 are due to the Department of Administration by 6:00 AM on November 10, 2005.
Final pay confirmation for the on-cycle payroll for the period ending November 5, 2005 will occur November 10, 2005. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 10, 2005 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 10, 2005 in order to be reflected in the final paycheck created for the employee.
Regents' Run A off-cycle payroll files for the period ending November 5, 2005 must be received by the Department of Administration by 5:00 PM on November 10, 2005.
Friday, November 11, 2005
(Veterans' Day Holiday)
Monday, November 14, 2005
The Run A off-cycle for the period ending November 5, 2005 will be processed November 14, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 18, 2005.
Tuesday, November 15, 2005
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 5, 2005 will be posted to STARS during Tuesday night's STARS batch processing cycle.
Regents' Run B off-cycle payroll files for the period ending November 5, 2005 must be received by the Department of Administration by 5:00 PM on November 15, 2005 in order to be processed on Wednesday, November 16, 2005.
Wednesday, November 16, 2005
The Run B off-cycle for the period ending November 5, 2005 will be processed November 16, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 21, 2005.
Friday, November 18, 2005
Payday for the payroll period ending November 5, 2005.
Time and leave interface agencies must have time and leave files for the period ending November 19, 2005 submitted to the Department of Administration for processing by 5:00 PM on November 18, 2005 (these files would normally be due Monday, November 21, 2005).
Regents' Run C off-cycle payroll files for the period ending November 5, 2005 must be received by the Department of Administration by 5:00 PM on November 18, 2005.
Monday, November 21, 2005
Paysheets for the on-cycle payroll for the period ending November 19, 2005 will be created on Monday, November 21, 2005. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 21, 2005 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 19, 2005 will also occur November 21, 2005; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 19, 2005.
The Run C off-cycle for the period ending November 5, 2005 will be processed November 21, 2005. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 28, 2005.
Tuesday, November 22, 2005
The second on-cycle preliminary pay calculation for the period ending November 19, 2005 will occur November 22, 2005.
Wednesday, November 23, 2005
Final pay confirmation for the on-cycle payroll for the period ending November 19, 2005 will occur November 23, 2005 (Final pay confirmation would normally occur Friday, November 25, 2005). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 23, 2005 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 23, 2005 in order to be reflected in the final paycheck created for the employee.
Regents' on-cycle payroll files for the period ending November 19, 2005 are due to the Department of Administration by 6:00 AM on November 23, 2005.
Regents' Run A off-cycle payroll files for the period ending November 19, 2005 must be received by the Department of Administration by 5:00 PM on November 23, 2005.
Attached is a calendar for the month of November 2005, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
DB:JJM:kao
Attachment: November 2005 Payroll Calendar
DATE: | November 22, 2005 | ||
---|---|---|---|
SUBJECT: | December 2005 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | December 2005 Payroll Processing |
As 2005 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2005 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2005 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2006 balances; a corrected W-2 (Form W-2C) for 2005 will not be issued for the employee involved.
FINAL 2005 PAYCHECK
The final on-cycle paychecks for calendar year 2005 will be issued December 30, 2005. Paychecks will be mailed on December 29, 2005. The final off-cycle paychecks for calendar year 2005 will also be issued on December 30, 2005 (generated from the off-cycle processed on December 27, 2005).
PAYCHECK REVERSALS
Any 2005 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 27, 2005 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 27, 2005 will update calendar year 2006 balances and will not be reflected in the employee's 2005 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 27, 2005 to enter paycheck adjustment requests for any 2005 paychecks. Adjustments processed in the December 27, 2005 off-cycle payroll will be reflected on the employee's 2005 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2005 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Friday, December 16, 2005.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2005 for inclusion in the December 27, 2005 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2005 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2005 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 27, 2005 which are adjusting paychecks issued prior to January 1, 2006 will not result in a W-2C; the adjustment will update the employee's 2006 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2005 will update the employee's 2006 payroll balances.
REGENTS' INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 17, 2005, paid December 30, 2005 are due to the Department of Administration by 6:00 a.m. on December 22, 2005.
REGENTS' INSTITUTIONS: OFF-CYCLE FILES
2005 Paycheck Reversals
Regent Institutions must submit all transmittals for 2005 paycheck reversals by 5:00 p.m. on Friday, December 23, 2005 in order to update the employee's 2005 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2006 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2006 submitted after 5:00 pm on December 23, 2005 should default the pay adjust check date to January 1, 2006.
2005 Adjustments and Supplementals
In order to update employee balances for 2005, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 23, 2005. The Run A off-cycle for the pay period ending December 17, 2005 generated on the night of Tuesday, December 27, 2005 will have a check issue date of December 30, 2005; all activity for this off-cycle will be reflected in the employees' 2005 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2005 date.
2006 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2006, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 23, 2005, will be considered to be 2006 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2006 business, the employee's 2006 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2006 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2006, agencies should default the pay adjust check date to January 1, 2006).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2006, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2006 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2005 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years andlimited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of 'P', will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2005 deadline for the December 27, 2005 Run A's off-cycle payroll will not be processed until the January 23, 2006 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 17, 2006. The deadline for submitting payroll interface files for the January 23, 2006 off-cycle is 5:00 p.m. on Friday, January 20, 2006.
GENERAL REMINDERS
United Way
The deduction END date on the general deduction panel for 2005 United Way contributions should be dated between December 18, 2005 and December 31, 2005 in order for the last 2005 deduction to be taken on the paycheck issued December 30, 2005. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2006, agencies can enter a new row effective-dated between December 18, 2005 and December 31, 2005 in order for the first deduction for 2006 to be taken on the January 13, 2006 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 17, 2006 should be entered.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2005 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced EIC payments. Notifications will be sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at: https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications will be sent to the agency email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2006 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 16, 2005 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 20, 2005 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons 'New W-4 Received' and/or 'New W-5 Received' on the employee's 'Federal Tax Data 1' and 'Federal Tax Data 2' panels in SHARP for the effective-dated rows they enter. Agency Workflow Administrators also need to check the radio button 'New W-4 Received' on the electronic W-4s submitted by the employee for calendar year 2006.
The KPAY320 will be processed the evening of December 20, 2005. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2006 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2006 effective-dated row will update the employee's marital status to 'single' with zero exemptions and/or stop any advance EIC payments for paychecks with a 2006 pay date.
For any 2006 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 20, 2005 and January 1, 2006, agency personnel will need to enter the data with a January 2, 2006 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2005 for any electronic W-4s received in this time period.
The 2006 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 20, 2005 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2006. The new tax data row will be dated January 1, 2006. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2006 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
Deduction Information
All deductions for calendar year 2006 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Long Term Care: monthly, deducted on the first pay date of the month.
- Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
- Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 2005. Please refer to the most recent PAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. Any arrearage collections made by personal reimbursement that are collected after December 23, 2005, and prior to December 27, 2005, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2005 W-2.
Agencies are reminded that advance ('ADV') earnings are being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 2005 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 17, 2005 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has a mailing address on the SHARP Personal Data page, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee's Personal Data page by 6:00 pm on December 28, 2005 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 28, 2005 to update the Personal Data page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2005. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees' address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 28, 2003 and January 6, 2006. W-2 forms will be mailed on or before January 31, 2006. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2005 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 06-P-007, dated October 4, 2005. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm.
Attachment: December 2005 Payroll Calendar
DB:JJM:rdb
DATE: | December 6, 2005 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2006 |
The Internal Revenue Service (IRS) has lowered the mileage rate from 48.5 cents to 44.5 cents beginning January 1, 2006 under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned or leased vehicle. The new rate reflects the drop in gas prices after the sharp increase experienced in the aftermath of Hurricane Katrina. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023. Using this methodology, fringe benefit income is calculated by multiplying the 44.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle's total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2006 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $14,800. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.
DB:JJM:kao
DATE: | December 9, 2005 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | IRS Changes Luxury Vehicle Fair Market Value for Calendar Year 2006 |
The Internal Revenue Service (IRS) has changed the definition of a "luxury vehicle" beginning January 1, 2006. A "luxury vehicle" will be defined as one with a fair market value in excess of $15,000, increased from $14,800, for a passenger vehicle first made available for an employee's personal use in 2006. This definition is used under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned or leased vehicle. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023. Using this methodology, fringe benefit income is calculated by multiplying the 44.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle's total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2006 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,000. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.
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DATE: | December 9, 2005 | ||
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SUBJECT: | New Advance Earned Income Credit Tables for 2006 | ||
EFFECTIVE DATE: | January 1, 2006 | ||
CONTACT: | Earl Byrnds | (785) 296-5376 | earl.brynds@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2006 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2006. The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2006. In order to use the attached tables, income must be annualized. When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
The IRS has also released the 2006 Form W-5 - Earned Income Credit Advance Payment Certificate. The 2006 form can be obtained on the IRS website at http://www.irs.gov/formspubs/lists/0,,id=97817,00.html.
The 2005 Form W-5 expires on December 31, 2005. The 2006 Form W-5 must be filed with the employer before advance 2006 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2006 earned and adjusted gross income will each be less than $32,001.00 for single employees or $34,001.00 if filing jointly (include spouse's income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating foreign earned income). Finally, a nonresident alien may not claim the advance EIC for 2006 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2006.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
An e-mail notification was sent on December 1, 2005 to all SHARP employees receiving advance EIC payments in 2005. The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2006. The notification was sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at https://SHARP.state.ks.us/servlets/iclientservlet/ess/?cmd=login. The notification was sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notifications to their employees. A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.
Agency personnel have until 6:00 p.m. on December 19, 2005 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2006. It is important that agency personnel check the 'New W-5 Received' radio button on the employee's 'Federal Tax Data 2' page for the new effective-dated row that is entered.
The KPAY320 will process in the batch cycle generated the evening of December 19, 2005. This process will search for employees who were sent a W-5 notification. If a new W-5 has not been received, a January 1, 2006 effective-dated row will be inserted in the employee's Tax Data record with an EIC status of 'Not Applicable'. (Please note the KPAY320 process will also update all employees claiming exemption from withholding tax in 2005, if a new W-4 has not been received. The update will place a January 1, 2006 effective-dated row in the employee's tax record with a marital status of 'single' and zero exemptions.)
For any Forms W-5 for 2006 (or Forms W-4 for 2005 for employees claiming exemption from withholding) received between December 20, 2005 and January 1, 2006, agency personnel will need to enter the data with a January 2, 2006 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 6, 2006 in order to be reflected in the on-cycle paycheck dated January 13, 2006. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 19, 2005. The report will be available in the agency directory on the MVS on Tuesday, December 20.
The Department of Administration will make all of the necessary changes in the computation of the advance EIC for SHARP agencies. Regent's institutions are responsible for implementing the new advance EIC rates in their respective payroll systems.
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Attachment: Advance Earned Income Credit Formulas
DATE: | December 9, 2006 | |
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SUBJECT: | 2006 Percentage Method Tables for Federal Tax Withholding | |
EFFECTIVE DATE: | January 1, 2006 | |
CONTACT: | Earl Byrnds | (785) 296-5376 |
APPROVAL: | ||
SUMMARY: | New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2006. |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2006. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2006. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,300 for 2006.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous years, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2005 to all SHARP employees who were exempt from federal withholding in 2005. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2006. The notification was sent to the employee's e-mail address listed under 'Update My Profile' in the Employee Self Service Center at https://SHARP.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications were sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notification to their employees. A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2006 W-4s. As of this date, the IRS has not issued the 2006 Form W-4 - Employee's Withholding Allowance Certificate. Once the W-4 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm. Employees should submit their new W-4s by December 16, 2005 to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 19, 2005 to enter all paper W-4s into the system. It is important that agency personnel check the 'New W-4 Received' radio button on the employee's 'Federal Tax Data 1' page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the 'New W-4 Received' radio button on electronic W-4s submitted by the employee for calendar year 2006.
The KPAY320 will process in the batch cycle generated the evening of December 19, 2005. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2006 effective-dated row will be placed in the employee Tax Data record, and will update the employee's marital status to 'single' and exemptions to 'zero'. (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2005 in which the 'New W-5 Received' radio button is not checked. The update will insert a January 1, 2006 effective dated row with an EIC Status of 'Not Applicable'.)
For any Forms W-4s for 2006 (or Forms W-5s for 2006 for employees claiming the advanced EIC) received between December 20, 2005 and January 1, 2006, agency personnel will need to enter the data with a January 2, 2006 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 6, 2006 in order to be reflected in the on-cycle paycheck dated January 13, 2006. Agency Workflow Administrators will also need to change the effective date to January 2, 2006 for any electronic Forms W-4s for 2006 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 2005 must file a new 8233 form for calendar year 2006 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 19, 2005 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2006. The new tax data row will be dated January 1, 2006. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2006 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 19, 2005. The report will be available in the agency directory on the MVS on Tuesday, December 20. A report will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Tables for Percentage Method of Withholding
DATE: | December 22, 2005 | ||
---|---|---|---|
SUBJECT: | Increase in Parking Fees for City of Topeka Parking Garages | ||
EFFECTIVE DATE: | Payroll Period Beginning December 18, 2005 and Ending December 31, 2005, Paid January 13, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for City of Topeka Parking Garages |
Effective January 1, 2006, the City of Topeka is increasing its non-reserved parking rates for all City parking garages. This rate increase impacts State of Kansas agencies with contracts for parking in the Centre City Garage (9th and Kansas) and the 512 Jackson garage. The monthly parking rate for non-reserved spaces has increased from $57.00 a month to $59.50 a month. Employees who park in non-reserved spaces will see their parking deduction increase starting with the payroll period beginning December 18, 2005 and ending December 31, 2005, paid January 13, 2006.
Due to the increase, the parking deduction codes for APKA02 and PPKA02 (used by the Department on Aging at 512 Jackson) are increasing from $14.77 per bi-weekly pay period to $15.92 per bi-weekly pay period. The related parking administrative fee code, PKAD04, will also increase from $1.13 per bi-weekly pay period to $1.22 per bi-weekly pay period.
The following parking deduction codes used for the Centre City garage are also effected by this increase: APKA07 and PPKA07 (used by the Department of Agriculture), APKA08 and PPKA08 (used by the Ethics Commission), APKA09 and PPKA09 (used by the Conservation Commission), and APKA10 and PPKA10 (used by the Kansas Water Office). The deduction amount for these codes will increase from $26.31 per bi-weekly pay period to $27.46 per bi-weekly pay period. Parking administrative fee code PKAD11 will increase from $2.01 per bi-weekly pay period to $2.10 per bi-weekly pay period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | January 4, 2006 | ||
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SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2005 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
Debbie Esquibel | (785) 368-6313 | Debbie.Esquibel@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2005 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2005 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2005.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2005 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2005 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will once again be used for 2005. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. Most employees should continue to receive their W-2's at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2005 W-2's, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 17, 2006. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2005 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2's for years 2002 through 2005, agencies are strongly encouraged to recommend that employees use the 'W-2 Reissue Request' functionality found in Employee Self Service at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. After logging into the system and selecting 'W-2 Reissue Request', the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2005, 2004, 2003, or 2002) the reissued W-2 is needed. Duplicate W-2's for 2002 - 2004 are currently available, with duplicate W-2's for 2005 becoming available Monday, January 23, 2006.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2's for those employees who cannot access Employee Self Service. Requests for duplicate W-2's received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2's and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2005 W-2's for each printing. The requests should be in social security number order and should include each employee's name, employee ID, and correct mailing address in addition to the SSN. Requests for duplicate W-2's for years prior to 2005 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.state.ks.us.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, on-line agencies may also consider utilizing the SHARP KPAY318, "Year to Date Balances" report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that both on-cycle and off-cycle paychecks dated December 30, 2005 are included in the 2005 W-2 amounts.
Attachments: 2005 W-2 Wage and Tax Statement Calculations (.pdf)
Sample KPAY318.SQR (.pdf)
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DATE: | January 4, 2006 | ||
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SUBJECT: | 2006 W-2 Production Report Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | 2006 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2006 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2006 W-2 production reports are scheduled to be generated:
- Friday, February 10, 2006
- Friday, March 10, 2006
- Friday, April 7, 2006
- Friday, May 5, 2006
- Friday, June 2, 2006
- Friday, June 30, 2006
- Friday, July 28, 2006
- Friday, August 25, 2006
- Friday, September 22, 2006
- Friday, October 20, 2006
- Friday, November 3, 2006
- Friday, November 17, 2006
- Friday, December 1, 2006
- Wednesday, December 13, 2006
- Monday, December 18, 2006
- Tuesday, December 26, 2006
- Thursday, December 28, 2006 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2's for 2006 are complete, a final KTXPR55 report will be generated for each agency's information and review.
In addition, the Regent's institutions will receive the report KTAX900 in their agency mailbox on the MVS. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
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DATE: | January 4, 2006 | ||
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SUBJECT: | Change in Organization Dues Deduction Amounts for AFSCME Council 72 | ||
EFFECTIVE DATE: | Payroll Period Beginning January 1, 2006 and Ending January 14, 2006, Paid January 27, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, 1469 and 1715 |
The organization dues for members of AFSCME Council 72 will change from $13.40 to $13.80 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 1, 2006 and ending January 14, 2006, paid January 27, 2006. The following deduction codes will be updated to reflect the new deduction amounts:
<table width="65%" summary="This table shows the organizational dues deduction amounts for the AFSCME locals affiliated with Local 1715 effective with the March 15 paychecks."> Deduction Code Union Dues Deduction ORG270 Local 1270 $13.80 ORG357 Local 1357 $13.80 ORG469 Local 1469 $13.80 ORG715 Local 1715 $13.80
The Division of Accounts and Reports, Payroll Systems Team is responsible for making these changes in the SHARP system. Regent's institutions are responsible for ensuring these changes are reflected in their individual systems effective for paychecks issued on or after January 27, 2006.
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DATE: | February 16, 2006 | ||
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SUBJECT: | Voluntary Tax Sheltered Annuity Company Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | Abby.Moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Changes |
Payroll Services has been notified of a name and address change for Manufacturers Life (VTSA Company #830). Effective immediately, the name is changed to John Hancock Life Insurance Company (USA). STARS Vendor number 222265014-01 has been closed and remittances have been redirected to the new vendor/suffix combination 010233346-00 for John Hancock Life Insurance Company (USA) at the following address:
John Hancock Life Insurance Company (USA)
PO Box 55230
Boston, MA 02205-5230
Payroll Services has also been notified of an address change for John Hancock Funds (VTSA Company #357). The new company address is:
John Hancock Funds
380 Stuart Street
Boston, MA 02116
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | April 3, 2006 | ||
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SUBJECT: | Change in Organization Dues Deduction for FOP Lodge #37 | ||
EFFECTIVE DATE: | Payroll Period Ending April 22, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for ORG037 |
The organization dues for members of the FOP Lodge #37, ORG037, will be increased from $11.55 to $17.31 per biweekly payroll period. The new rate will become effective with the payroll period beginning April 9, 2006 and ending April 22, 2006, paid May 5, 2006.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after May 5, 2006.
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DATE: | April 3, 2006 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | Abby.Moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Changes |
Payroll Services has been notified of a name change for AIM Distributors, Inc. (VTSA Company #025). Effective immediately, the name is changed to AIM Investment Services, Inc. The STARS vendor number and address for this VTSA company remain the same.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regent’s institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | April 19, 2006 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2006 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2007 payroll contribution rates will be issued as soon as the information becomes available.
Note: Fiscal year 2006 contains an extra pay period (27 pay periods).
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 pay periods ending on or before June 17, 2006 will use fiscal year 2006 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 17, 2006 will use fiscal year 2007 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 pay period being adjusted. For example, the Run A off-cycle (processed June 26, paid June 30) for the pay period ending June 17, 2006 will be charged to fiscal year 2006 expenditures. The Run B off-cycle (processed June 28, paid July 3) for the pay period ending June 17, 2006 will be charged to fiscal year 2007 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run A off-cycle scheduled for June 26, 2006 (paid June 30) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2006 expenditures.
Once the Run A off-cycle for the period ending July 1, 2006 (processed July 10, paid July 14) has been processed, agencies should not request or process paycheck reversals until STARS FY 2006 closing has been successfully completed. STARS is scheduled to resume processing July 21, 2006.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 the morning of June 26, 2006 and should be completed by 8:30 a.m. In that process, a new row will be added to the Department Budget tables with an effective date of June 18, 2006 (beginning date of the first on-cycle payroll charged to FY2007). The Budget End Date will be June 17, 2007. Agencies should not enter any rows with an effective date greater than or equal to June 18, 2006 until after the FY2007 insert has been completed. When adding new rows for FY2007, agencies should verify that June 17, 2007 was used as the Budget End Date for FY2007.
GHI Adjustments
As of July 1, 2006, NO payroll processing for GHI adjustments should be made for contract year 2004. 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 2004.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2006. 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 (assuming processing occurs before midnight), the Run A off-cycle for the pay period ending June 17, 2006 (processed June 26, paid June 30) will have 361 as the Julian date in the document number and expenditures will be charged to fiscal year 2006. The Run B off-cycle for the pay period ending June 17, 2006 (processed June 28, paid July 3) will have 363 as the Julian date in the document number and expenditures will be charged to fiscal year 2007. The Run C off-cycle for the pay period ending June 17, 2006 (processed July 3, paid July 6) will have 003 as the Julian date in the document number and expenditures will be charged to fiscal year 2007.
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 2007.
Reminders
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 payrolls 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 on-cycle paycheck for the period and will require special handling.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 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 'Nontaxable'.
RM:JJM:kao
DATE: | April 21, 2006 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2006 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates for fiscal year 2007 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents' are responsible for updating any rate changes into their payroll system.
RLM:JJM:ewb
Attachment: DA-171 (.pdf)
DATE: | May 23, 2006 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Code 'S14' | ||
EFFECTIVE DATE: | May 21, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Code 'S14' |
Senate Bill 480 establishes a new pay differential of $0.30 per hour for building trade classes effective May 21, 2006 to be used with the pay period beginning June 18, 2006 through July 1, paid July 14.
The following earnings code will be added to SHARP for this pay differential:
Earns Code | Description | Rate |
---|---|---|
S14 | Pay Diff-Building Trade Class | $0.30 |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents' institutions are responsible for implementing the new earnings code in their payroll systems.
RLM:JJM:kao
DATE: | May 25, 2006 | ||
---|---|---|---|
SUBJECT: | Free Parking for Capitol Complex Flat Surface Lots | ||
EFFECTIVE DATE: | June 04, 2006 | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Free Parking for Capitol Complex Flat Surface Lots |
Pursuant to a memorandum from the Division of Facilities Management dated May 18, 2006, parking in the flat surface lots in the Capitol Complex will be free and deductions will no longer be taken for the following lots:
Lot | SHARP Deduction Codes | Admin Fee Deduction Codes |
---|---|---|
1 | PKT01B, PPKT01, PPKTR1 | PKAD01, PKADR1 |
2 | PKT02B, PPKT02, PPKTR2 | PKAD01, PKADR1 |
4 | PKT04B, PPKT04 | PKAD01, PKADR1 |
7 | PKT07B, PPKT07, PPKTR7 | PKAD01, PKADR1 |
8 | PKT0BB, PKTRBB, PPKT0B, PPKTRB, PPKT11, PKT0DB, PKTRDB, PPKT0D, PPKTRD |
PKAD01, PKADR1, PKAD13, PKADR2, PKAD08 |
This change is effective for the payroll period beginning June 4, 2006 through June 17, 2006, paid June 30, 2006 because parking is prepaid and the June 30, 2006 paycheck covers parking for the period July 2, 2006 through July 15, 2006. Therefore, employees assigned to the above noted surface lots will no longer have a parking deduction effective with their June 30, 2006 paychecks. No action is required by agencies to implement this change.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for making this change in the SHARP system.
RLM:JJM:kao
DATE: | May 31, 2006 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage - FY2007 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 18, 2006 and Ending July 1, 2006, Paid July 14, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - Curtis Building Garage – FY2007 |
Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2007. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $22.93 per bi-weekly pay period effective with the payroll period beginning June 18, 2006 and ending July 1, 2006, paid July 14, 2006. The associated administrative fee code PKAD05 increases to $1.75 ($22.93 X .0765).
Employees with the Department of Commerce, the Board of Accountancy, and Board of Regents who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction increased to $11.46. The associated administrative fee code PKAD07 increases to $0.88 ($11.46 X .0765).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
RLM:JJM:kao
DATE: | June 7, 2006 | ||
---|---|---|---|
SUBJECT: | Deduction Codes for Parking Administrative Fees | ||
EFFECTIVE DATE: | June 04, 2006 | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Deduction Codes for Parking Administrative Fees |
Currently State Parking Lots 1 through 8 use the same parking administrative fee deduction codes, PKAD01 (regular) and PKADR1 (reserved). Because the flat surface lots in the Capitol Complex (Lots 1, 2, 4, 7, and 8) will be free effective for the payroll period beginning June 4, 2006 through June 17, 2006, paid June 30, 2006 (see Informational Circular 06-P-028) it is necessary to add two new administrative fee deduction codes for Lots 3, 5, and 6 as follows:
Lot | SHARP Deduction Codes | Admin Fee Deduction Codes |
---|---|---|
3 | PKT03B, PPKT03 PKTR3B, PPKTR3 |
PKAD03 PKADR3 |
5 | PKT05B, PPKT05 PPKTR5 |
PKAD03, PKADR3 |
6 | PKT06B, PPKT06 | PKAD03 |
Employees with active deductions for Lots 3, 5, and 6 will have a deduction end date of June 4, 2006 placed on their maximum effective dated row for deduction codes PKAD01 and PKADR1 in the General Deduction Data. Also for those employees, a new deduction row of PKAD03 or PKADR3 will be added to the General Deduction Data with an effective date of June 4, 2006. This change will be made June 12, 2006 and is effective for the payroll period beginning June 4, 2006 through June 17, 2006, paid June 30, 2006. No action is required by agencies to implement this change.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for making this change in the SHARP system.
RLM:JJM:kao
DATE: | June 16, 2006 | ||
---|---|---|---|
SUBJECT: | Changes to July 2006 Payroll Processing Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Changes to July 2006 payroll processing schedule due to July 3, 2006 being designated as a state holiday. |
As a result of Governor Sebelius declaring Monday, July 3, 2006 as an additional state holiday for 2006, the following changes have been made to the July payroll processing schedule:
Monday, July 3, 2006
The check issue date for the Run ‘B’ off-cycle for the payroll period ending June 17, 2006, run on June 28, 2006 will remain July 3, 2006 since this is not a banking holiday.
Wednesday, July 5, 2006
The Run ‘C’ off-cycle for the payroll period ending June 17, 2006 will be run on Wednesday, July 5, 2006 rather than Monday, July 3, 2006. The check issue date for this off-cycle will be moved from Thursday, July 6, 2006 to Friday, July 7, 2006.
On-cycle paysheets for the payroll period ending July 1, 2006 will be created on Wednesday, July 5, 2006 rather than Monday, July 3, 2006. This delay will continue to allow agencies one working day after the end of the pay period to enter job actions effective for the payroll period ending July 1, 2006 and to have the job changes reflected on the paysheets.
The first preliminary payroll calculation for the payroll period ending July 1, 2006 will be run Wednesday, July 5, 2006. All time and leave information must be entered into SHARP and the timesheet marked ‘OK to Process’ by 6:00 PM on July 5 in order for an employee to be processed in the first preliminary payroll calculation and have a calculated paycheck available for review on Thursday, July 6. Please note that there will only be two preliminary payroll calculations for the payroll period ending July 1, 2006.
Thursday, July 6, 2006
The second preliminary payroll calculation for the payroll period ending July 1, 2006 will be run Thursday, July 6, 2006.
Friday, July 7, 2006
The final payroll calculation and confirm for the payroll period ending July 1, 2006 will be run Friday, July 7, 2006. Regent’s on-cycle files for the payroll period ending July 1, 2006 will continue to be due to the Department of Administration by 6:00 a.m. on Friday, July 7, 2006.
Please make sure to note the above payroll processing dates and adjust your schedules accordingly.
RLM:JJM:kao
DATE: | June 21, 2006 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2007 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 18, 2006; Ending July 1, 2006; Paid July 14, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2007-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 2007. The fiscal year 2007 rates will become effective with the on-cycle payroll period beginning June 18, 2006, ending July 1, 2006 and paid July 14, 2006. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2006.
In FY2007, the employer's contribution to KPERS Death and Disability Insurance increases to 1.00% (except for retirement codes J1, J2, J3 which are .4%). Agencies are reminded of the moratoriums for KPERS Death and Disability Insurance contribution that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. 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 the moratorium period.
New legislation (House Substitute for SB 270) 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 KPERS DA Memo - April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in the newly established Benefit Plan 'PR' and Deduction Code 'RETRET'. For fiscal year 2007, employer rates are 5.84% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 9.84%. Retirees enrolled in the 'PR' benefit plan are not subject to KPERS life and disability insurance.
The Division of Accounts and Reports, 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 STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2007.
RLM:JJM: kao
Attachments A, B & C (.pdf)
DATE: July 5, 2013
SUBJECT: SHARP Employee Self Service PDF Paycheck Advices
EFFECTIVE DATE: July 29, 2013
CONTACT: Kathy Ogle, (785) 296-2290, ( Kathy.Ogle@da.ks.gov)
APPROVAL: Nancy Ruoff (Original Signature on File)
SUMMARY: SHARP Employee Self Service Paycheck Advices Displayed in PDF Format Effective with Checks Dated August 2, 2013
The Office of Systems Management, Payroll Services, is pleased to announce that effective with paychecks dated on or after August 2, 2013, pay advices will be processed using PDF format in SHARP Employee Self Service (ESS), View Paycheck, unless Accessibility Mode is requested for an employee. In addition to displaying most of the same information as the current format, every PDF pay advice will now display year-to-date (YTD) information as of the pay period end date of the paycheck. Currently, when viewing pay advices in ESS, only the most recent paycheck displays YTD information. With the new PDF format, every pay advice dated on or after August 2, 2013 will include YTD information.
To view PDF pay advices (once checks dated August 2, 2013 are available in ESS), click the View Paycheck menu item. Employees will notice a checkmark in the PDF File column check box. Click on the Check Date link to display the PDF pay advice. In addition to each PDF pay advice displaying YTD information, differences between the PDF pay advice and the current pay advice view to be noted are:
- No column totals are displayed in the Employer Paid Benefits section.
- There is a new Year-To-Date Paid Time Off and Sick Leave section displaying vacation (paid time off) and sick leave information: a year-to-date starting balance with hours earned, bought (this row is not used), taken, sold (this row is not used), adjustments, and the resulting end balance. The message section below this box informs the viewer to go to the View Leave Balances or Update My Time Sheet links to view other leave balance information.
- Adjustment checks resulting in a zero dollar net balance will now display as a PDF advice. Currently, these advices do not appear in View Paycheck.
- PDF Pay Advices are only available starting with paychecks dated on or after August 2, 2013. PDF pay advices will not be available for any paychecks dated prior to August 2, 2013.
Employees wishing to continue to view pay advices utilizing the current ESS Paycheck View for ADA purposes will need to request Accessibility Mode. For an employee using Accessibility Mode, no change will occur and View Paycheck will continue to function in its current form. For Accessibility Mode requests, an employee should contact their human resource office, who in turn should contact the service desk at 785-368-8000.
The new PDF View Paycheck option will only include paycheck advices. Employees who receive a paycheck rather than using direct deposit for a particular pay period will not have the PDF pay advice available for that pay period and will view paycheck information in the current format for that pay period.
Because Regent Institutions calculate their own paychecks, the View Paycheck option in either format is not available for Regent employees.
SG:NTR:kao
DATE: July 11, 2013
SUBJECT: Discontinue Organization Dues Deduction for Teamsters Local Union #795 (JJA in Larned)
EFFECTIVE DATE: Payroll Period Ending July 6, 2013
CONTACT: Nancy Ruoff, (785) 296-2853, (Nancy.Ruoff@da.ks.gov)
APPROVAL: Nancy Ruoff, (Original Signature on File)
SUMMARY: Deduction Codes ORG620-631 and ORF620-631 Discontinued
Payroll Services received notification from Teamsters Local #795, the union previously representing Juvenile Corrections Officers at the Juvenile Justice Authority (JJA) facility in Larned, indicating that they no longer represent State of Kansas employees. Therefore, in place of Local #795, Teamsters Local #696, the union already representing officers at JJAs in Topeka, Atchison, and Beloit, now also represents Juvenile Corrections Officers at Larned.
To implement this change, payroll deduction codes for Teamsters Local #795 membership dues and fees, listed below, will be discontinued in SHARP effective with the payroll period beginning June 23, 2013 and ending July 6, 2013, paid July 19, 2013.
Org. Dues Deduction Code for Local #795 |
Admin Fees Deduction Code for Local #795 |
---|---|
ORG620 |
ORF620 |
ORG621 |
ORF621 |
ORG622 |
ORF622 |
ORG623 |
ORF623 |
ORG624 |
ORF624 |
ORG625 |
ORF625 |
ORG626 |
ORF626 |
ORG627 |
ORF627 |
ORG628 |
ORF628 |
ORG629 |
ORF629 |
ORG630 |
ORF630 |
ORG631 |
ORF631 |
The existing Local #696 organization dues deduction codes should also be used for Larned JJA employees who join Local #696. Currently each organization dues deduction must be entered into SHARP as two separate deduction codes, one for the deduction (ORGXXX) and a corresponding (ORFXXX) row for the $.06 per deduction fee. The current pay rate ranges, deduction codes, and bi-weekly deduction amounts (including the $0.06 service fee) for Teamsters Local Union #696 are as follows:
Hourly Pay Rate Range |
Bi-Weekly Deduction Amount (including the $.06 fee) |
Org. Dues Deduction Code for Local #696 |
Admin Fees Deduction Code for Local #696 |
---|---|---|---|
$12.00 - $12.21 |
$13.50 |
ORG600 |
ORF600 |
$12.22 - $12.66 |
$14.00 |
ORG601 |
ORF601 |
$12.67 - $13.10 |
$14.50 |
ORG602 |
ORF602 |
$13.11 - $13.55 |
$15.00 |
ORG603 |
ORF603 |
$13.56 - $13.99 |
$15.50 |
ORG604 |
ORF604 |
$14.00 - $14.44 |
$16.00 |
ORG605 |
ORF605 |
$14.45 - $14.88 |
$16.50 |
ORG606 |
ORF606 |
$14.89 - $15.33 |
$17.00 |
ORG607 |
ORF607 |
$15.34 - $15.77 |
$17.50 |
ORG608 |
ORF608 |
$15.78 - $16.21 |
$18.00 |
ORG609 |
ORF609 |
$16.22 - $16.66 |
$18.50 |
ORG610 |
ORF610 |
$16.67 - $17.10 |
$19.00 |
ORG611 |
ORF611 |
$17.11 - $17.55 |
$19.50 |
ORG612 |
ORF612 |
$17.56 - $17.99 |
$20.00 |
ORG613 |
ORF613 |
$18.00 - $18.44 |
$20.50 |
ORG614 |
ORF614 |
$18.45 - $18.88 |
$21.00 |
ORG615 |
ORF615 |
$18.89 - $19.33 |
$21.50 |
ORG616 |
ORF616 |
$19.34 - $19.77 |
$22.00 |
ORG617 |
ORF617 |
$19.78 - $20.21 |
$22.50 |
ORG618 |
ORF618 |
$20.22 - $20.66 |
$23.00 |
ORG619 |
ORF619 |
The Office of Systems Management, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
DATE: August 5, 2013
SUBJECT: Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30
EFFECTIVE DATE: Payroll Period Ending August 17, 2013
CONTACT: Nancy Ruoff, (785) 296-2853, (Nancy.Ruoff@da.ks.gov)
APPROVAL: Nancy Ruoff, (Original Signature on File)
SUMMARY: Organization Dues Changes for ORG030
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $29.76 to $30.11 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 4, 2013 and ending August 17, 2013, paid August 30, 2013.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $29.70 to $30.05 and the fee (ORF030) will remain at $.06 (for a total deduction of $30.11 per biweekly payroll period).
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
DATE: August 15, 2013
SUBJECT: Parking Arrangement Changes for Department for Aging and Disability Services (Agency 039)
EFFECTIVE DATE: Payroll Period Beginning August 4, 2013 and Ending August 17, 2013, Paid August 30, 2013
CONTACT: Cindy Lo, (785) 296-2259, (Cindy.Lo@da.ks.gov)
APPROVAL: Nancy Ruoff, (Original Signature on File)
SUMMARY: Addition of New Parking Codes for 615 Quincy Parking Garage, Discontinuation of Parking Codes for 412 Jackson Garage, and Changing Parking Rates for 512 Jackson Garage
The Department for Aging and Disability Services (the Agency) requested the following changes be made, effective with the payroll period beginning August 4, 2013 and ending August 17, 2013, paid August 30, 2013, regarding parking arrangements in the City of Topeka for their employees:
Pursuant to the agreement the Agency entered into with the Park N Shop Garage at 615 Quincy, new parking deduction codes PPKA15 (before tax), APKA15 (after tax), and PKAD18 (admin fee) will be added to SHARP. Employees enrolled in parking codes PPKA15 and APKA15 will have a bi-weekly payroll parking deduction of $10.50. Employees enrolled in parking deduction code PPKA15 will also need to be enrolled in the new parking administrative fee code – PKAD18. Parking code PKAD18 will process an employer bi-weekly payroll contribution of $0.80.
The Agency will pay the entire parking fee for their employees parking in the 412 Jackson surface lot. As a result, the payroll parking deduction codes for that lot, PPKA01, APKA01, and PKAD16, will be discontinued in SHARP. A deduction end date effective 8/5/2013 has been updated on the applicable employee’s general deduction records.
The Agency will also reduce the amount their employees will pay for parking in the 512 Jackson garage. The payroll parking deduction codes affected by this change are PPKA02, APKA02, and PKAD04. The new bi-weekly rate for PPKA02 and APKA02 will be $10.50, and the new parking administrative fee, PKAD04, will be $.80.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
DATE: August 21, 2013
SUBJECT: Change in Organization Dues Deduction Amounts
EFFECTIVE DATE: Payroll Period Ending September 14, 2013
CONTACT: Nancy Ruoff, (785) 296-2853, (Nancy.Ruoff@da.ks.gov)
APPROVAL: Nancy Ruoff, (Original Signature on File)
SUMMARY: Organization Dues Changes for KAPE
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 1, 2013 and ending September 14, 2013, paid September 27, 2013 as follows:
Deduction Code |
Hourly Rate of Pay |
Bi-Weekly Salary |
Dues Deduction |
---|---|---|---|
ORG001 |
$ 13.99 or Less |
$ 1119.20 or Less |
$ 9.97 |
ORG002 |
$ 14.00 – 14.99 |
$ 1119.21 – 1199.20 |
$10.96 |
ORG003 |
$ 15.00 – 15.99 |
$ 1199.21 – 1279.20 |
$11.91 |
ORG004 |
$ 16.00 – 16.99 |
$ 1279.21 – 1359.20 |
$12.88 |
ORG005 |
$ 17.00 – 17.99 |
$ 1359.21 – 1439.20 |
$13.85 |
ORG006 |
$ 18.00 or Greater |
$ 1439.21 or Greater |
$14.82 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
DATE: September 12, 2013
SUBJECT: Implementation of Lump Sum Withholding Orders Per HB2015
EFFECTIVE DATE: Immediately
CONTACT: Jennifer Holthaus, (785) 368-6313, (Jennifer.Holthaus@da.ks.gov)
APPROVAL: Nancy Ruoff (Original Signature on File)
SUMMARY: Changes for IWO’s With Arrears for Pending Lump Sum Payments as a Result of HB2015
HB2015, passed during the 2013 Legislative Session, requires that a 14-day notice be provided to the Department of Children and Families (DCF) prior to a lump sum payment being made by a payor (employer) to an obligor (employee) for whom an active income withholding order (IWO) with an arrears amount has been served on the employer. Effective immediately, Agency HR/Payroll staff will be required to provide 21-days notice to Payroll Services, as specified in this circular, prior to any lump sum payment being made to an employee identified as having an active IWO with arrears. Failure to provide adequate notice may require that the lump sum payment to the employee be delayed in order to meet the 14-day notification period.
HB2015 defines lump sum payment as “income in the form of a bonus, commission, an amount paid in lieu of vacation or other leave time, or any other payment to an obligor” (employee). For employees of the State of Kansas, wages paid as a bonus, longevity payment, or leave payout qualify as a lump sum payment. A full listing of State of Kansas earnings codes considered to be lump sum payments for the purposes of HB2015 is included in Attachment A.
HB2015 specifies that the 14-day notice is required in order to allow the Title IV-D agency (DCF) to request a new IWO specifying the amount the payor (employer) is required to withhold from the lump sum payment.
Payroll Services is working closely with DCF to identify the employees impacted by this legislation based on the specific IWOs with arrears to which this legislation applies. For IWOs that need to be tracked under HB2015, the garnishment ID has been updated in garn_spec_data in SHARP to reflect a ‘D’ on the end of the garnid.
A new report, KPAY226 titled “Employees with Title IV-D IWO Garnishments with Arrears”, will be available every Monday in the agency’s MVS mailbox if the agency has any employees who meet the criteria of HB2015. The KPAY226 report will not appear in the agency’s MVS mailbox if no employees in that agency meet the criteria for a particular pay period.
The report identifies the employees the agency HR/Payroll staff is responsible for tracking. The report also lists any upcoming, scheduled longevity payments and the pay period end date for which they are scheduled. Agencies are not required to notify Payroll Services of scheduled longevity payments.
Note: If an employee on the KPAY226 agency listing is scheduled to receive an upcoming lump sum payment that is not a longevity payment (leave payouts, bonus payments, etc.), the agency must provide the following information:
- Employee Name
- Estimated pay check date of the lump sum payment
to Jennifer Holthaus in Payroll Services at Jennifer.Holthaus@da.ks.gov NO LATER THAN 21 DAYS PRIOR TO THE CHECK DATE ON WHICH THE PAYMENT IS SCHEDULED TO BE PAID. Failure to provide adequate notice of an upcoming lump sum payment may result in the lump sum payment being held until the 14 day required notice to DCF can be completed. After the 14-day notification has been completed, payment of the bonus amount to the employee can proceed unless the agency is notified by Payroll Services of any additional delays due to an employee appeal of a lump sum IWO.
For regent agencies, a new edit has been added to the KREGPAY1 Regent Pay Detail Interface which will provide a warning message when a lump sum payment is being processed for an individual identified as having an active IWO with arrears. If the appropriate prior notification has not been provided to Payroll Services, the lump sum payment will need to be delayed so notice can be provided to DCF. The payment will need to be removed from the file and the pay detail file resubmitted for processing.
Attachment A xls
SG:NTR:ewb
DATE: | September 25, 2013 | ||
---|---|---|---|
SUBJECT: |
SHARP Bi-Weekly Payroll Schedule for 2014
|
||
EFFECTIVE DATE: | Calendar Year 2014 | ||
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2014
|
||
|
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2014. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of Systems Management must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
SG:NTR:ewb
Attachments
ON CYCLE XLS
OFF CYCLE XLS
DATE: | October 25, 2013 | ||
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SUBJECT: |
Key Payroll Processing Dates in November 2013
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EFFECTIVE DATE: | November 2013 | ||
CONTACT: |
Joyce Dickerson
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(785) 296-3979
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
Payroll processing schedule changes due to the November 2013 holidays
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Monday, November 11, 2013 (Veterans' Day), Thursday, November 28, 2013 and Friday, November 29, 2013 (Thanksgiving Holiday) are designated holidays for state service in 2013.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, November 1, 2013
Final pay confirmation for the on-cycle payroll for the period ending October 26, 2013 will occur November 1, 2013. For SHARP agencies, all employees’ payable time must be approved by 6:00 PM on November 1, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 1, 2013 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending October 26, 2013 must be received by the Department of Administration by 4:00 PM on November 1, 2013.
Monday, November 4, 2013
The Run A off-cycle for the period ending October 26, 2013 will be processed November 4, 2013. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 8, 2013.
Regents’ on-cycle files for the period ending October 26, 2013 will also be processed on this date.
Tuesday, November 5, 2013
Regents’ Run B off-cycle payroll files for the period ending October 26, 2013 must be received by the Department of Administration by 4:00 PM on November 5, 2013 in order to be processed on Wednesday, November 6, 2013.
Wednesday, November 6, 2013
The Run B off-cycle for the period ending October 26, 2013 will be processed November 6, 2013. SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 12, 2013 (These checks would normally be dated Monday, November 11, 2013).
Friday, November 8, 2013
Payday for the payroll period ending October 26, 2013.
First opportunity for Time and Labor interface agencies to have time and leave files for the period ending November 9, 2013 submitted to the Department of Administration for processing by 5:00 PM on November 8, 2013. (These files would normally be due Monday, November 11, 2013). Last opportunity to submit files will be noon on Tuesday, November 12, 2013.
Regents’ Run C off-cycle payroll files for the period ending October 26, 2013 must be received by the Department of Administration by 4:00 PM on November 8, 2013.
Monday, November 11, 2013
Veterans' Day Holiday
Tuesday, November 12, 2013
Time and Labor interface agencies can submit time and leave files for the period ending November 9, 2013 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on November 12, 2013.
Paysheets for the on-cycle payroll for the period ending November 9, 2013 will be created on Tuesday, November 12, 2013. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 12, 2013 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 9, 2013 will also occur November 12, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on November 12, 2013 in order for a paycheck record to be created.
The Run C off-cycle for the period ending October 26, 2013 will be processed November 12, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 15, 2013.
Wednesday, November 13, 2013
The second on-cycle preliminary pay calculation for the period ending November 9, 2013 will occur November 13, 2013.
Thursday, November 14, 2013
The third on-cycle preliminary pay calculation for the period ending November 9, 2013 will occur November 14, 2013.
Regents’ on-cycle payroll files for the period ending November 9, 2013 are due to the Department of Administration by 4:00 PM on November 14, 2013.
Friday, November 15, 2013
Final pay confirmation for the on-cycle payroll for the period ending November 9, 2013 will occur November 15, 2013. All employees’ payable time must be approved, by 6:00 PM on November 15, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 15, 2013 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 9, 2013 must be received by the Department of Administration by 4:00 PM on November 15, 2013.
Monday, November 18, 2013
The Run A off-cycle for the period ending November 9, 2013 will be processed November 18, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 22, 2013.
The Regents’ on-cycle files for the period ending November 9, 2013 will also be processed on this date.
Tuesday, November 19, 2013
Regents’ Run B off-cycle payroll files for the period ending November 9, 2013 must be received by the Department of Administration by 4:00 PM on November 19, 2013.
Wednesday, November 20, 2013
The Run B off-cycle for the period ending November 9, 2013 will be processed November 20, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 25, 2013.
Friday, November 22, 2013
Payday for the payroll period ending November 9, 2013.
First opportunity for Time and Labor interface agencies to have time and leave files for the period ending November 23, 2013 submitted to the Department of Administration for processing by 5:00 PM on November 22, 2013. (These files would normally be due Monday, November 25, 2013.) Last opportunity to submit files will be noon on Monday, November 25, 2013.
Regents’ Run C off-cycle payroll files for the period ending November 9, 2013 must be received by the Department of Administration by 4:00 PM on November 22, 2013.
Monday, November 25, 2013
Time and Labor interface agencies can submit time and leave files for the period ending November 23, 2013 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on November 25, 2013.
Paysheets for the on-cycle payroll for the period ending November 23, 2013 will be created on Monday, November 25, 2013. (Paysheets would normally be created on Tuesday, November 26, 2013.) For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 25, 2013 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 23, 2013 will also occur November 25, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 23, 2013.
The Run C off-cycle for the period ending November 9, 2013 will be processed November 25, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated December 2, 2013. (These checks would normally be dated Thursday, November 28, 2013.)
Tuesday, November 26, 2013
The second on-cycle preliminary pay calculation for the period ending November 23, 2013 will occur November 26, 2013.
Regents’ on-cycle files for the period ending November 23, 2013 must be received by the Department of Administration by 4:00 PM on November 26, 2013.
Wednesday, November 27, 2013
Final pay confirmation for the on-cycle payroll for the period ending November 23, 2013 will occur November 27, 2013. For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 27, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 27, 2013 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 23, 2013 must be received by the Department of Administration by 4:00 PM on November 27, 2013.
Thursday, November 28, 2013
Thanksgiving Holiday
Friday, November 29, 2013
Thanksgiving Holiday
Attached is a calendar for the month of November 2013, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
SG:NTR:ccl
DATE: | October 31, 2013 | ||
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SUBJECT: |
Change in Social Security Base Rate
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EFFECTIVE DATE: |
January 1, 2014 |
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CONTACT: |
Amanda Entress
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(785) 296-3887
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
Social Security Wage Base Increase to $117,000 effective January 1, 2014
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The Social Security wage base for OASDI will be $117,000 for calendar year 2014. This is a $3,300 increase from the wage base of calendar year 2013 of $113,700. The OASDI tax rate for 2014 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2014 will be $7,254.00. There continues to be no limit on wages subject to the Medicare tax in 2014. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $7,254.00 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
SG:NTR:kao
DATE: | November 7 , 2013 | ||
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SUBJECT: |
Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2014 |
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EFFECTIVE DATE: |
January 1, 2014 |
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CONTACT: |
Joyce Dickerson
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(785) 296-3979
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
2014 Deferred Compensation and Tax Sheltered Annuity Limits
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Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2014 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit remains unchanged at the lesser of $17,500 or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit remains unchanged at $35,000. The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) remains the same with an annual contribution limit of $5,500 for 2014 making the total $23,000.
Please note that the two different catch-up provisions cannot be used concurrently.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2014 is the lesser of $52,000 or 100% of compensation, increased from $51,000 for 2013.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $255,000 (for 2013) to $260,000 (for 2014). The $260,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $26,000 ($260,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $36,400 ($260,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $380,000 (for 2013) to $385,000 (for 2014). However, participants should note their maximum annual compensation limit will be $371,428.57, since the $371,428.57 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $52,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) remains unchanged at $17,500 for 2014. The age 50 or older catch-up provision remains the same at $5,500 for 2014. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $5,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($17,500 for 2014) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
SG:NTR:kao
DATE: | November 25 , 2013 | ||
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SUBJECT: |
Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 7, 2013 and December 21, 2013 |
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EFFECTIVE DATE: |
Immediately |
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CONTACT: |
Joyce Dickerson
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(785) 296-3979
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
Changes to the payroll processing schedule for the payroll periods ending December 7, 2013 and December 21, 2013 due to December 25, 2013 being designated a state holiday
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As a result of Governor Brownback declaring Wednesday, December 25 as a state holiday, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 7, 2013 and December 21, 2013:
Monday, December 9, 2013
The Run 'C' off-cycle for the payroll period ending November 23, 2013 continues to be scheduled for December 9, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will remain Thursday, December 12, 2013.
Time and Labor Interface agencies must have time and leave files for the period ending December 7, 2013 submitted to the Department of Administration for processing by 5:00 p.m. on December 9, 2013.
Tuesday, December 10, 2013
Paysheets for the on-cycle payroll for the period ending December 7, 2013 will be created as usual on Tuesday, December 10, 2013. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 10, 2013 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 7, 2013 will also occur December 10, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 p.m., payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Wednesday, December 11, 2013
The second on-cycle preliminary pay calculation for the period ending December 7, 2013 will occur December 11, 2013.
Thursday, December 12, 2013
The third on-cycle preliminary pay calculation for the period ending December 7, 2013 will occur December 12, 2013.
Regents’ on-cycle payroll files for the period ending December 7, 2013 are due to the Department of Administration by 4:00 p.m. on December 12, 2013.
Friday, December 13, 2013
Final pay confirmation for the on-cycle payroll for the period ending December 7, 2013 will occur December 13, 2013. For SHARP agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 13, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 13, 2013 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, December 20, 2013.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 7, 2013 are due to the Department of Administration by 4:00 p.m. on December 13, 2013.
Monday, December 16, 2013
The Run ‘A’ off-cycle for the period ending December 7, 2013 will be processed December 16, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, December 20, 2013.
The Regents’ on-cycle files for the period ending December 7, 2013 will be processed.
Tuesday, December 17, 2013
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 7, 2013 must be received by the Department of Administration by 4:00 p.m. on December 17, 2013 in order to be processed on Wednesday, December 18, 2013.
Wednesday, December 18, 2013
The Run 'B' off-cycle for the payroll period ending December 7, 2013 continues to be scheduled for December 18, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘B’ off-cycle will be dated Monday, December 23, 2013.
Friday, December 20, 2013
Payday for the payroll period ending December 7, 2013.
Regents’ Run ‘C’ off-cycle payroll files for the period ending December 7, 2013 must be received by the Department of Administration by 4:00 p.m. on December 20, 2013.
First opportunity for Time and Labor interface agencies to have time and leave files for the period ending December 21, 2013 submitted to the Department of Administration for processing by 5:00 p.m. on December 20, 2013. (The files would normally be due on Monday, December 23, 2013). Last opportunity to submit files will be noon on Monday, December 23, 2013.
Monday, December 23, 2013
The Run 'C' off-cycle for the payroll period ending December 7, 2013 continues to be scheduled for December 23, 2013. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will be Friday, December 27, 2013. (It would normally be on Thursday, December 26, 2013).
Please note that paysheets for the on-cycle payroll for the period ending December 21, 2013 will be created on Monday, December 23, 2013, instead of the normal day on Tuesday, December 24, 2013 as previously provided on the 2013 SHARP Bi-Weekly On-cycle Payroll Schedule, to allow for maximum preliminary payroll calculation opportunities. Some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on December 23, 2013 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 21, 2013 will also occur December 23, 2013. (It would normally be on Tuesday, December 24, 2013.) For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Time and Labor interface agencies can submit time and leave files for the period ending December 21, 2013 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on December 23, 2013.
Tuesday, December 24, 2013
The second on-cycle preliminary pay calculation for the period ending December 21, 2013 will occur December 24, 2013.
Wednesday, December 25, 2013
Christmas Holiday
Thursday, December 26, 2013
The third on-cycle preliminary pay calculation for the period ending December 21, 2013 will occur December 26, 2013.
Regents’ on-cycle payroll files for the period ending December 21, 2013 are due to the Department of Administration by 4:00 p.m. on December 26, 2013.
Friday, December 27, 2013
Final pay confirmation for the on-cycle payroll for the period ending December 21, 2013 will occur December 27, 2013. For SHARP agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 27, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 27, 2013 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 3, 2014.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 21, 2013 are due to the Department of Administration by 4:00 p.m. on December 27, 2013.
Monday, December 30, 2013
The Run ‘A’ off-cycle for the period ending December 21, 2013 will be processed December 30, 2013. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, January 3, 2014.
The Regents’ on-cycle files for the period ending December 21, 2013 will be processed.
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 21, 2013 are due to the Department of Administration by 4:00 p.m. on December 30, 2013.
Attached is a revised calendar for the month of December 2013 that highlights the payroll processing schedule changes due to the December 25th Christmas holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Calendar doc
SG:NTR:ccl
DATE: | November 25 , 2013 | ||
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SUBJECT: |
2014 Percentage Method Tables for State Tax Withholding |
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EFFECTIVE DATE: |
January 1, 2014 |
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CONTACT: |
Nancy Ruoff |
(785) 296-2853 |
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
New State Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2014 |
The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2014. Please note that the standard deduction for one withholding allowance remains unchanged at $ 2,250.00 per year in calendar year 2014. The attached tables are to be used in computing state tax withholding for wages paid on or after January 1, 2014. In order to use the attached tables, income must be annualized. To annualize income, multiply state taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system to implement the new withholding tax rates. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
SG:NTR:ewb
Attachment: Tables for Percentage Method of Withholding
DATE: | November 27 , 2013 | ||
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SUBJECT: |
December 2013 Payroll Processing |
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EFFECTIVE DATE: |
Immediately |
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CONTACT: |
Joyce Dickerson
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(785) 296-3979
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
December 2013 Payroll Processing and Updated December Processing Calendar
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As 2013 calendar year-end approaches, the Office of Systems Management is making preparations for the issuance of calendar year 2013 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2013 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2014 balances; a corrected W-2 (Form W-2C) for 2013 will not be issued for the employee involved.
FINAL 2013 PAYCHECK
The final on-cycle paychecks for calendar year 2013 will be issued December 20, 2013. Payroll transactions for the December 20, 2013 on-cycle paychecks will be posted to SMART on Wednesday night, December 18, 2013. The final off-cycle paychecks for calendar year 2013 will be issued on December 27, 2013 (generated from the off-cycle processed on December 23, 2013).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 23, 2013 to enter paycheck adjustment requests for any 2013 paychecks. Adjustments processed in the December 23, 2013 off-cycle payroll will be reflected on the employee’s 2013 Form W-2.Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2013 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Systems Management, Payroll Section by 5:00 p.m. on Monday, December 16, 2013.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2013 for inclusion in the December 23, 2013 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2013 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2013 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 23, 2013 which are adjusting paychecks issued prior to January 1, 2014 will not result in a W-2C; the adjustment will update the employee’s 2014 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 23, 2013 will update the employee’s 2014 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 7, 2013, paid December 20, 2013 are due to the Department of Administration by 4:00 p.m. on December 12, 2013.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2013 Paycheck Reversals
Regent Institutions must submit all transmittals for 2013 paycheck reversals by 4:00 p.m. on Friday, December 20, 2013 in order to update the employee’s 2013 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2014 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2014 submitted after 4:00 p.m. on December 20, 2013 should default the pay adjust check date to January 1, 2014.
2013 Adjustments and Supplementals
In order to update employee balances for 2013, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 20, 2013. The Run C off-cycle for the pay period ending December 7, 2013 generated on the night of Monday, December 23, 2013 will have a check issue date of December 27, 2013; all activity for this off-cycle will be reflected in the employees’ 2013 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2013 date.
2014 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2014, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 20, 2013, will be considered to be 2014 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2014 business, the employee’s 2014 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2014 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2014, agencies should default the pay adjust check date to January 1, 2014).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2014, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2014 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2014 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years andlimited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 20, 2013 deadline for the December 23, 2013 Run C’s off-cycle payroll will not be processed until the April 14, 2014 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 7, 2014. The deadline for submitting payroll interface files for the April 14, 2014 off-cycle is 4:00 p.m. on Friday, April 11, 2014.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2013 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 08, 2013 and December 21, 2013 in order for the last 2013 deduction to be taken on the paycheck issued December 20, 2013. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2014, agencies can enter a new row effective-dated between December 08, 2013 and December 21, 2013 in order for the first deduction for United Way or Community Health Charities for 2014 to be taken on the January 3, 2014 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 7, 2014 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2014.
A batch process will run the night of December 20, 2013 to establish the fee portion (deduction code UTFXXX) of the 2014 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2014. This process will reduce the 2014 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2014 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 23, 2013 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2014 United Way/Community Health Charities deductions after December 20, 2013, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 2, 2013 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 2, 2013 to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2014. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2014 W-4s. Employees should submit new paper W-4s by December 11, 2013 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 19, 2013 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2014.
The KPAY320 will be processed the evening of December 19, 2013. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2014 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2014 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2014 paper W-4s (for employees claiming exemption from withholding) received between December 19, 2013 and January 1, 2014, agency personnel will need to enter the data with a January 2, 2014 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2014 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change. See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4.
The 2014 Form W-4 will be posted to the Office of Systems Management’s website as soon as it is available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 19, 2013 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2014. The new tax data row will be dated January 1, 2014. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2014 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2014 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month except for January, deducted on the second and third pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 23, 2013. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Any arrearage collections made by personal reimbursement that are collected after December 13, 2013, and prior to December 23, 2013, must be sent to the Office of Systems Management, Payroll Section for processing in order to impact the 2013 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2013 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 7, 2013 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 24, 2013 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 24, 2013 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 20, 2013. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 26, 2013 and January 2, 2014. Electronic W-2 forms through Employee Self Service will be available on or before January 2, 2014. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2014. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2013 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment
SG:NTR:kao
DATE: | December 4, 2013 | ||
---|---|---|---|
SUBJECT: |
2014 Percentage Method Tables for Federal Tax Witholding |
||
EFFECTIVE DATE: |
January 1, 2014 |
||
CONTACT: |
Nancy Ruoff
|
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2014
|
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2014. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2014. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance has increased to $3,950 for 2014.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2014 has increased to $2,250. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Currently, the IRS has not yet released Publication 1494 for 2014.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 2, 2013 to all SHARP employees who were exempt from federal withholding in 2013. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2014. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2014 W-4s. The IRS has indicated that the 2014 Form W-4 will be available in the near future at the IRS website at http://www.irs.gov/ and will also be available at the Office of Systems Management website on the Forms Page once it is released by the IRS. Employees should submit their new W-4s as soon as possible to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 19, 2013 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2014.
The KPAY320 will process during the batch cycle generated on the evening of December 19, 2013. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2014 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’.
For any Form W-4s for 2014 received between December 19, 2013 and January 1, 2014, agency personnel will need to enter the data with a January 2, 2014 effective date. Agency Workflow Administrators also will need to change the effective date to January 2, 2014 for any electronic FormsW-4s for 2014 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2013 must file a new 8233 form for calendar year 2014 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 19, 2013, will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2014. The new tax data row will be dated January 1, 2014. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2014 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 19, 2013. The report will be available in the agency directory on the MVS on Friday, December 20, 2013. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Office of Systems Management, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
SG:NTR:ewb
Attachment: Tables for Percentage Method of Withholding
DATE: | December 10, 2013 | ||
---|---|---|---|
SUBJECT: |
Employee Taxability of State-Owned or Leased Vehicles |
||
EFFECTIVE DATE: |
January 1, 2014 |
||
CONTACT: |
Kathy Ogle
|
(785) 296-2290
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2014
|
The Internal Revenue Service (IRS) has announced the standard mileage rate will decrease to 56.0 cents beginning January 1, 2014 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 56.0 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2014 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $16,000 for a car (unchanged from 2013), and $17,300 (up from $17,000 in 2013) for a passenger truck or van. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
SG:NTR:kao
DATE: | December 12, 2013 | ||
---|---|---|---|
SUBJECT: |
Changes to Health Savings Accounts Processing for 2014
|
||
EFFECTIVE DATE: |
Pay Period Beginning December 8, 2013; Ending December 21, 2013; Paid January 3, 2014 |
||
OSM CONTACT: KDHE CONTACT: |
Earl Brynds Delos DeCelle |
(785) 296-5376 (785) 296-3667
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Changes to the Health Savings Accounts Employer Deduction Frequency and Other Changes for Health Savings Accounts Plan Year 2014 Payroll Processing
|
For plan year (PY) 2014, the Health Care Commission approved changes which include making the employer contribution amount to a Health Savings Account (HSA) benefit option in two equal installments. The first installment will be made during the second pay period in January (January 17, 2014 paycheck date) and the second installment will be made during the first pay period in July (July 3, 2014 paycheck date). This employer contribution will be processed in SHARP for each employee participating through the State of Kansas health insurance program in a High Deductible Health Plan (HDHP) and making the required employee contribution to an HSA. For employees who still have a balance in their Health Care Flexible Spending Account on December 31, 2013, both the prorated bi-annual employer contribution and employee contributions will be delayed until the first pay date in April, 2014. Employee HSA contributions will continue to be deducted semi-monthly throughout PY 2014. However, the January 2014 employee deductions will occur on the second and third paychecks of January. All other employee deductions for 2014 will occur as normal on the first and second paychecks of the remaining months.
For all three HDHP benefit options, the combined total for both HSA bi-annual employer contribution amounts for full-time employees will be $1,500 for single coverage and $2,250 for dependent coverage. For part-time employees, the combined total for both HSA bi-annual employer contribution amounts will be $1,125.20 for single coverage and $1,687.60 for dependent coverage. Prorated employer contribution amounts for all employees will be as follows depending on the month the employee is enrolled for coverage:
Fulltime |
Single |
Employee + dependent |
Parttime |
Single |
Employee + dependent |
---|---|---|---|---|---|
January |
$750.00 |
$1,125.00 |
January |
$562.60 |
$843.80 |
February |
$625.00 |
$937.50 |
February |
$468.83 |
$703.16 |
March |
$500.00 |
$750.00 |
March |
$375.06 |
$562.53 |
April |
$375.00 |
$562.50 |
April |
$281.30 |
$421.90 |
May |
$250.00 |
$375.00 |
May |
$187.54 |
$281.27 |
June |
$125.00 |
$187.50 |
June |
$93.77 |
$140.63 |
July |
$750.00 |
$1,125.00 |
July |
$562.60 |
$843.80 |
August |
$625.00 |
$937.50 |
August |
$468.83 |
$703.16 |
September |
$500.00 |
$750.00 |
September |
$375.06 |
$562.53 |
October |
$375.00 |
$562.50 |
October |
$281.30 |
$421.90 |
November |
$250.00 |
$375.00 |
November |
$187.54 |
$281.27 |
December |
$125.00 |
$187.50 |
December |
$93.77 |
$140.63 |
For employees who are enrolled after the beginning of 2014 and for when a hire occurs in the middle of the month, the coverage begin date entered into SHARP should be effective for the beginning of the month following 30 days from the date of hire and the appropriate bi-annual prorated employer contribution should also be processed effective on the first paycheck of that month. For example, a new employee is hired on June 17, 2014 and enrolls in HSA. The coverage begin date should be entered effective August 1, 2014 and the HSA prorated bi-annual employer contribution for August will be processed on their first paycheck in August.
For all employees, the agency GHI composite rate cost for the HDHP benefit options will continue to be reduced by the amount of the semi-monthly HSA employer contribution and the HSA bi-annual/prorated employer contributions will be added as flat employer contributions to the FSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Account Code 519500.
To accommodate the new 2014 HSA payroll processing procedures in SHARP, the setup on the Deduction Table for all current HSA employee only deduction codes in SHARP for Plan Types 6Y and 6Z will be changed to allow deductions on the third paycheck of a month effective December 21, 2013.
As a reminder, Regents should not be using the HSR%%% plan type 67 benefit plans/deduction codes since it was decided among Regents in 2013 to only use the HSM%%% plan type 67 benefit plans/deduction codes instead.
The Office of Systems Management, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account processing. Regents’ institutions are responsible for ensuring that the new Health Savings Account processing procedures are implemented in their individual systems.
SG:NTR:ewb
DATE: | December 13, 2013 | ||
---|---|---|---|
SUBJECT: |
Combined Regent Institutions’ and State Agencies’ Flexible Spending Accounts Remittance Files for 2014
|
||
EFFECTIVE DATE: |
Pay Period Beginning December 8, 2013; Ending December 21, 2013; Paid January 3, 2014 |
||
OSM CONTACT: KDHE CONTACT: |
Kathy Ogle Delos DeCelle |
(785) 296-2290 (785) 296-3667
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Combined Regent Institutions’ and State Agencies’ Flexible Spending Accounts Remittance Files for Plan Year 2014
|
Beginning with the 2014 benefit year, Flexible Spending Account (FSA) deduction information for Regent institutions and State agencies will be combined and included on one KPAYFSA2 remittance file. Effective for the pay period beginning December 8, 2013, ending December 21, 2013, and paid January 3, 2014, one KPAYFSA2 file will be sent centrally to the new FSA vendor for 2014, NueSynergy. Currently, each Regent institution and the State supply a remittance file to the FSA vendor. Regent institutions will no longer be required to submit their remittance file to the FSA vendor.
No additional FSA information will be required of Regent institutions. All required information will be pulled from the information in SHaRP already being provided through the open enrollment process and KREGBEN1 (for those Regent institutions using this file), and from normal payroll processing.
FSA deductions will be processed and balanced as part of the existing payroll processes that are used to reconcile other remittances. Kansas Department of Health and Environment will be responsible for balancing and submitting the combined remittance files to the new vendor.
SG:NTR:kao
DATE: | December 16, 2013 | ||
---|---|---|---|
SUBJECT: |
KPERS Tier 1 Members Contribution Rate and Benefit Multiplier Changes
|
||
EFFECTIVE DATE: |
Pay Period Beginning January 5, 2014; Ending January 18, 2014; Paid January 31, 2014 |
||
CONTACT:
|
Nancy Ruoff
|
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New KPERS Employee Contribution Rate and Benefit Mulitplier for Tier 1 Members
|
Pursuant to Sub House Bill (HB) 2333 passed in the 2012 legislature, the KPERS employee contribution rate for Tier 1 members will increase from the current 4% of such member’s compensation to 5% beginning January 1, 2014. The new contribution rate of 5% will be deducted from Tier 1 member’s pay effective with the payroll period beginning January 5, 2014 and ending January 18, 2014, paid January 31, 2014. This rate increase also includes Tier 1 correctional and legislative employees. In addition, the Tier 1 employee rate is scheduled for an increase to 6% on January 1, 2015 and after.
Along with the contribution rate increases, the legislation also stipulates that the KPERS benefit multiplier for compensation earned by Tier 1 members on and after January 1, 2014 will be increased to 1.85%. The KPERS benefit multiplier for compensation earned prior to January, 2014 will stay at the current 1.75%.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to reflect these changes in employee contribution rates. Regent institutions are responsible for ensuring these rate changes are reflected in their individual systems.
SG:NTR:ccl
DATE: | January 7, 2014 | ||
---|---|---|---|
SUBJECT: |
W-2 Wage and Tax Statements for Calendar Year 2013
|
||
EFFECTIVE DATE: |
Immediately |
||
OSM CONTACT:
|
Amanda Entress
|
(785) 296-3887
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Information Pertaining to Employee 2013 W-2 Statements
|
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2013 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2013. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 28, 2014.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2013 W-2's that were printed for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with mailing the 2013 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2013. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records). For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service. For those receiving a printed W-2, the form will be printed and pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All paper 2013 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 15, 2014. At that time, they should be destroyed.
In cases where the 2013 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation. For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2008 through 2013, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service at https://sharp.ks.gov/psp/ESS/, and then viewing and printing the duplicate using ‘View W-2/W-2c Forms’. For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested. Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who retired or terminated from State service on or after September 16, 2011, have access to consent to view/view/print and to request duplicate paper W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to consent/view/print or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2013, 2012, 2011, 2010, 2009, or 2008) the reissued W-2 is needed. Duplicate W-2’s for 2008- 2012 are currently available, and duplicate W-2’s for 2013 will be available starting on Wednesday, February 12, 2014. Please note that duplicate W-2’s for the year 2008 will no longer be available after mid-April 2014.
The Office of Systems Management, Payroll Services will continue to provide duplicate paper W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2013 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2013 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-3887.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 20, 2013 and off-cycle checks dated December 23, 2013 and December 27, 2013 are included in the 2013 W-2 amounts.
SG:NTR:kao
DATE: | January 7, 2014 | ||
---|---|---|---|
SUBJECT: |
2014 W-2 Production Report Schedule
|
||
EFFECTIVE DATE: |
Immediately |
||
OSM CONTACT:
|
Amanda Entress
|
(785) 296-3887
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
2014 W-2 Production Report Schedule
|
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2014 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2014 W-2 production reports are scheduled to be generated:
- Friday, February 14, 2014
- Friday, March 14, 2014
- Friday, April 25, 2014
- Friday, May 9, 2014
- Friday, June 6, 2014
- Thursday, July 3, 2014
- Friday, August 1, 2014
- Friday, August 29, 2014
- Friday, September 26, 2014
- Friday, October 24, 2014
- Friday, November 7, 2014
- Wednesday, November 19, 2014
- Wednesday, December 3, 2014
- Monday, December 8, 2014
- Monday, December 15, 2014
- Monday, December 22, 2014
- Monday, December 29, 2014 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by the Office of Systems Management. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2014 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
SG:NTR:kao
Date: | January 14, 2014 |
---|---|
Subject: | Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2 |
Effective Date: | Payroll Period Ending January 18, 2014 |
Approval: |
Nancy Ruoff (Original Signature on File) |
Summary: | Organization Dues Change for ORG060 |
The organization dues for members of Fraternal Order of Police, Lawrence Lodge #2, will change from $11.54 to $12.96 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 5, 2014 and ending January 18, 2014, paid January 31, 2014.
The amounts listed above include the deduction amount (ORG060 deduction code) and the $0.06 service fee (ORF060 deduction code) added together. The new rate for deduction code ORG060 will increase from $11.48 to $12.90 and the fee (ORF060) will remain at $.06 (for a total deduction of $12.96 per biweekly payroll period).
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
Date: | January 14, 2014 |
---|---|
Subject: | Change in Organization Dues Deduction for AFSCME Council 72, Local 1357 |
Effective Date: | Payroll Period Ending January 18, 2014 |
Contact: | Nancy Ruoff (785) 296-2853 (Nancy.Ruoff@da.ks.gov) |
Approval: |
Nancy Ruoff (Original Signature on File) |
Summary: | Organization Dues Change for ORG357 |
The organization dues for members of the AFSCME Council 72, Local 1357, will increase from $14.77 to $15.32 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 5, 2014 and ending January 18, 2014, paid January 31, 2014.
The amounts listed above include the deduction amount (ORG357 deduction code) and the $0.06 service fee (ORF357 deduction code) added together. The new rate for deduction code ORG357 will increase from $14.71 to $15.26 and the fee (ORF357) will remain at $.06 (for a total deduction of $15.32 per biweekly payroll period).
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
Date: | January 15, 2014 |
---|---|
Subject: | Payroll Calculation Tool |
Effective Date: | Immediately |
Contact: | Nancy Ruoff (785) 296-2853 (Nancy.Ruoff@da.ks.gov) |
Approval: |
Nancy Ruoff (Original Signature on File) |
Summary: | Payroll Calculation Tool has been updated to reflect 2014 rates |
The payroll calculation tool was developed to assist employees and agencies with creating paycheck models outside of the SHaRP payroll system. Employees can use the tool to calculate what their paycheck amounts will be when they use different tax and benefit option scenarios.
It is strongly encouraged that agency staff refers retiring and terminating employees to the tool when they are trying to determine what tax and benefit options the employee should use for their final paycheck. The tool will also be helpful to employees wishing to review the impact to their paycheck of the increased employee KPERS contribution rate which takes effect with paychecks dated on or after January 31, 2014.
The Payroll Calculation Tool can be accessed through the State Employee Service Center website at http://www.kansas.gov/employee/. Once the page comes up, select the Payroll Calculation hyperlink on the right side of the screen, under the Employee Self-Service heading.
The calculation tool contains three tabs. The first tab is the Information tab. This tab provides an explanation of what the tool is used for and other important information. The second tab is the Data Entry tab. This tab is where the user will enter all of the necessary information for the calculation. Refer to the instructions by each yellow box for additional information on the data to enter. It is helpful to have a paycheck stub or screen print to use for reference when entering data on this tab. After all the data is entered, click on the green box ‘Click here to see your result’ link at the bottom of the page. The third tab is the Estimated Payroll Calculation tab. This tab will display all the results of the calculation after the user clicks on the result link on the second tab.
The Office of Systems Management, Payroll Processing Team has made the necessary updates to the tool to reflect 2014 rates.
SG:NTR:had
DATE: February 26, 2014
SUBJECT: Change in Organization Dues Deduction for FOP Lodge #37
EFFECTIVE DATE: Payroll Period Ending March 1, 2014
OSM CONTACT: Nancy Ruoff (785) 296-2853 (Nancy.Ruoff@da.ks.gov)
APPROVAL:
Nancy Ruoff
(Original Signature on File)
SUMMARY: Organization Dues Change for ORG037
The organization dues for members of the FOP Lodge #37 will change from $17.31 to $20.31 per biweekly payroll period. The new rate will become effective with the payroll period beginning February 16, 2014 and ending March 1, 2014, paid March 14, 2014.
The amounts listed above include the deduction amount (ORG037 deduction code) and the $0.06 service fee (ORF037 deduction code) added together. The new rate for deduction code ORG037 will increase from $17.25 to $20.25 and the fee (ORF037) will remain at $.06 (for a total deduction of $20.31 per biweekly payroll period).
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
Date: | March 18, 2014 |
---|---|
Subject: | New Deduction Codes for Spousal Group Life Payroll Deductions |
Effective Date: | May 1, 2014 |
OSM Contact: | Heather DeBusk (785) 296-2434 (Heather.DeBusk@da.ks.gov) |
Approval: | Nancy Ruoff (Original Signature on File) |
Summary: | New Deduction Codes/Benefit Plans for Spousal Group Life |
The KPERS Board has approved the implementation of Spousal Group Life through payroll deduction. In order for employees to be eligible for Spousal Group Life, the employee needs to be employed in a KPERS covered position. However, for KPERS KP&F (Kansas Police and Fireman) members only, employees need to be enrolled in Optional Group Life before they are eligible for Spousal Group Life. Open enrollment for this new benefit was conducted February 1-28, 2014.
Coverage for spousal group life will be effective May 1, 2014. The new deduction codes will be added to SHaRP and the first deduction will be processed effective for the payroll period beginning April 27, 2014, ending May 10, 2014, paid May 23, 2014.
The new Spousal Group Life after-tax deduction codes and benefit plans are:
PLAN |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
---|---|---|---|---|---|
28 |
OGLSPS |
Spousal Group Life |
SGL |
OGLSPS |
Spousal Group Life |
2C |
OGLSPS |
Spousal Group Life Admin Fee |
SGL Fee |
OGLADS |
Spousal Group Life Admin Fee |
The Administrative Fee for the Spousal Group Life is a flat $0.20 per deduction and is processed just like the administrative fee for the employee Optional Group Life.
Automatic enrollment of all SHARP/Regent Optional Group Life will continue to occur in SHaRP via the KBEN218 interface file sent by KPERS. Any spouse enrolling into Spousal Group Life must have the Dependent/Beneficiary Type set to ‘O’ for ‘Both’ on the Dependent/Beneficiary page in SHaRP. The Regent agency KREGBEN files should also reflect this value. The first enrollment file and enrollment/confirmation letters containing spousal group life are anticipated to be received in early April from KPERS. The Regent agencies will have two options for creating enrollment records in their Regent system. Option 1 is to continue to enroll individuals manually or Option 2 is the use of the KBEN218 interface file to automate the enrollment. SHaRP will continue to generate a termination interface to KPERS based on terminations interfaced by Regent agencies to SHaRP. Remittance of deductions for spousal group life will be included in the existing remittance information for employee optional group life submitted monthly to KPERS.
The Office of Systems Management, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system. Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.
Questions regarding the system set-up/interfaces for this new payroll deduction can be directed to Earl Brynds (Earl.Brynds@da.ks.gov or 785.296.5376) or to Heather DeBusk (Heather.DeBusk@da.ks.gov or 785.296.2434).
Questions regarding the spousal group life benefit should be directed to Minnesota Life at:
Email: topekabranchoffice@securian.com
In Topeka: (785) 354-0783
Toll Free: 1-877-215-1476
Or contact the KPERS Info line at 1-888-275-5737 or in Topeka at (785) 296-6166 and they will direct calls for help with Spousal OGL questions.
SG:NTR:had
Informational Circular No. | 14-p-026 | |
---|---|---|
Date of this Informational Circular: | April 24, 2014 | |
Contact Name: Amanda Entress |
Ph: (785) 296-3887 |
Email: (amanda.entress@da.ks.gov) |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary:
Outstanding Payroll Debts Will Be Submitted to Setoff at Calendar Year End |
A recent review of the PAY007 Deductions in Arrears Report indicated a significant number of unresolved, outstanding payroll arrearages. As a result, Payroll Services, with the approval of the Office of Financial Management, is instituting new policies and procedures to proactively work with agencies to address outstanding payroll arrearages.
As a one-time clean-up option, a list of arrearages over $25, owed by an employee who terminated employment more than five years ago, will be mailed to responsible agencies for approval to allow these debts to be written off without them being sent to the State’s Setoff Program for collection. Agencies have the option to not approve the write-off and commit to collect the debts before December 1, 2014 according to the procedures specified in the Policy and Procedure Manual Filing Number 8001, K.A.R.s 1-2b-1 and 1-2b-2.
All outstanding payroll debts less than five years old, whether for an employee who is terminated or active, must continue to be pursued by the agency for collection and the necessary collection steps completed prior to calendar year end. Beginning in 2014, at the end of each calendar year, agencies will be notified via the SHARP Infolist of the deadline for providing notice to Payroll Services of arrearage recoveries which are in process and should not be submitted to Setoff. Following the close of the notification period, Payroll Services will generate a file of all outstanding payroll arrearages, excluding GHI advances for active employees and arrearages requested to be excluded by agencies, to be sent directly to the State of Kansas’ Setoff program. The arrearages will then be removed from the SHARP system.
SG:NTR:ccl
Informational Circular No. | 14-p-027 | |
---|---|---|
Supersedes Informational Circular No: | 13-p-022 | |
Effective Date: | Immediately | |
Date: | May 19, 2014 |
|
Contact Name: Joyce Dickerson |
Ph: (785) 296-3979 |
Email: joyce.dickerson@da.ks.gov |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2015 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 7, 2014 will use fiscal year 2014 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 7, 2014 will use fiscal year 2015 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run C off-cycle (scheduled for June 23, 2014, paid June 26, 2014) for the pay period ending June 7, 2014 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2014 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 15, 2014 and should be completed by Monday morning, June 16, 2014. In that process, a new row will be added to the Department Budget tables with an effective date of June 8, 2014 (beginning date of the first on-cycle payroll charged to FY2015). The Budget End Date will be June 7, 2015.
Agencies should send Combination Code files or any Department Budget Table files for FY15 changes into Payroll Services by Friday, June 13, 2014. These files will be loaded into SHARP beginning Monday, June 16, 2014. Agencies should not enter any rows with an effective date greater than or equal to June 8, 2014 until after the FY2015 insert has been completed. When adding new rows for FY2015, agencies should verify that June 7, 2015 was used as the Budget End Date for FY2015.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday, June 20 after the ‘B’ off-cycle process has been completed for the June 7, 2014 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 20. Agencies are encouraged to complete all FY14 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 18, 2014, to take advantage of this early run of the KPAYGL5C. Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 23, 2014 will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 25, 2014.
GHI Adjustments
As of July 1, 2014, NO GHI adjustments can be processed for any pay period prior to the December 22, 2012 pay period end date, which was the beginning of contract year 2013. Contact SEHP Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 at Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan about any event maintenance changes that may affect claims processing for contract year 2012 or prior.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period.Some changes to the employee’s job data information (i.e. change in FLSA status) that are entered after the creation of the paysheets will not be reflected in the employee’s on-cycle paycheck for the period and will require special handling.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation.The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
SG:NTR:ewb
Informational Circular No. | 14-p-028 | |
---|---|---|
Supersedes Informational Circular No: | 13-P-024 | |
Effective Date: | June 2, 2014 | |
Contact Name: Cindy Lo |
Ph: (785) 296-2259 |
Email: cindy.lo@da.ks.gov |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: Parking Fee Increase - Curtis Building Garage - FY2015 |
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2015. To implement this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 8, 2014 and ending June 21, 2014, paid July 3, 2014:
Deduction Code | New bi-weekly rate for pped 6/21/14 |
---|---|
PKT08B | 26.87 |
PPKT08 | 26.87 |
PKAD05 (admin fee) | 2.06 ($26.87 * .0765) |
Employees with Attorney General who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code | New bi-weekly rate for pped 6/21/14 |
---|---|
PKT10B | 13.43 |
PPKT10 | 13.43 |
PKAD07 (admin fee) | 1.03 ($13.43 * .0765) |
The parking rates for Secretary of State employees are listed below and do not change:
Deduction Code | New bi-weekly rate for pped 6/21/14 |
---|---|
PKT09B | 9.23 |
PPKT09 | 9.23 |
PKAD06 (admin fee) | 0.71 ($9.23 * .0765) |
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
SG:NTR:ccl
Date of this Informational Circular: | June 13, 2014 | ||
---|---|---|---|
Supersedes Informational Circular No: | 13-p-026 |
||
Effective Date: | July 1, 2014 | ||
Contact Name: Carmen Waters |
Ph: (785) 296-7059 |
Email: Carmen.Waters@da.ks.gov |
|
Approval: | Nancy Ruoff (Original Signature on File) |
||
Summary: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of Systems Management. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2015 will require entry into the SHARP v9.1 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2015 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 23, 2014 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 21, 2014 (paychecks dated July 3, 2014).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
SG:NTR:ewb
Informational Circular No. | 14-p-030 | |
---|---|---|
Supersedes Informational Circular No: | 13-p-027 |
|
Date : | June 17, 2014 | |
Effective Date: | Pay Period Beginning June 8, 2014; Ending June 21, 2014; Paid July 3, 2014 | |
Contact Name: Kathy Ogle |
Ph: (785) 296-2290 |
Email: Kathy.Ogle@da.ks.gov |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: Fiscal Year 2015-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 2015. The fiscal year 2015 rates will become effective with the on-cycle payroll period beginning June 8, 2014, ending June 21, 2014 and paid July 3, 2014. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2014.
For Fiscal Year 2015, the employer’s contribution to KPERS Death and Disability Insurance will be 0.85% (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 April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; 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 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2015, employer rates are 10.80% Actuarial Employer Rate, 5.00% Statutory Employer Rate, for a Total Combined Rate of 15.80%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Office of Systems Management, 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.
SG:NTR:kao
Informational Circular No. | 14-p-031 | |
---|---|---|
Date of this Informational Circular: | June 20, 2014 | |
Effective Date: | Payroll Period Beginning June 8, 2014 and Ending June 21, 2014, Paid July 3, 2014 | |
Contact Name: Cindy Lo |
Ph: (785) 296-2259 |
Email: cindy.lo@da.ks.gov |
Approval: | Nancy Ruoff (Original Signature on File) |
|
Summary: FY 2015 Curtis Building Garage Parking Fee for Department of Commerce Employees |
As an update to Informational Circular No. 14-P-028, in addition to the parking rates listed on the circular, the following parking codes and associated administrative fee, previously specified on the circular as for employees with Attorney General, will also apply to the Kansas Department of Commerce employees who park in the Curtis Building Garage:
Deduction Code | New bi-weekly rate for pped 6/21/14 |
---|---|
PKT10B | 13.43 |
PPKT10 | 13.43 |
PKAD07 (admin fee) | 1.03 ($13.43 * .0765) |
The above change will take effect with the payroll period beginning June 8, 2014 and ending June 21, 2014, paid July 3, 2014.
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
SG:NTR:ccl
DATE: | August 17, 2012 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30 |
||
EFFECTIVE DATE: | Pay Period Ending August 18, 2012 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Organization Dues Changes for ORG030
|
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $29.50 to $29.76 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 5, 2012 and ending August 18, 2012, paid August 31, 2012.
Currently, organization dues must be entered into SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code. In this case, the new rate for deduction code ORG030 will increase from $29.44 to $29.70 and the fee (ORF030) will remain at $.06 (for a total of $29.76 per biweekly payroll period).
The Office of General Services, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after August 31, 2012.
MJ:NTR:ccl
DATE: | August 31, 2012 | ||
---|---|---|---|
SUBJECT: | Addition of Graduate Teaching Assistant GHI Deduction Code for Regents | ||
EFFECTIVE DATE: | Pay Period Beginning September 2, 2012; Ending September 15, 2012; Paid September 28, 2012 | ||
CONTACT: |
Kathy Ogle |
(785) 296-2290
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Addition of New Graduate Teaching Assistant GHI Deduction Code (GTAGHI) and File Submission Procedures
|
As a result of the Patient Protection and Affordable Care Act, a new requirement exists for W-2 reporting for tax years 2012 and forward to report in Box 12DD the aggregate cost of applicable employer-sponsored group health plan coverage provided to individual employees. The reportable cost of coverage includes both the portion of the cost paid by the employer and the portion of the cost paid by the employee, whether through pre-tax or after-tax contributions. Because graduate assistant students at the Regents Institutions (GRA/GTA/GAA) are considered employees of the State of Kansas for employment and W-2 reporting purposes, a new deduction code has been established for the submission of this information to SHARP on the KREGPAY1 Regent Payroll Interface as follows:
PLAN TYPE: 00 (General Deduction)
DEDUCTION CODE: GTAGHI
DESCRIPTION: Graduate Assist Group Hlth Ins
SHORT DESCRIPTION: Grad GHI
DEDUCTION CLASS: A (After-Tax employee deduction)
N ( Nontaxable Benefit employer contribution)
The new deduction code will be effective in SHARP the payroll period beginning September 2 and ending September 15, 2012, paid September 28, 2012. Account Code 519250, Graduate Assistant Group Health Insurance, should be used for the expensing of the employer fringe benefit portion of the deduction on the Payroll INF06.
The new deduction code allows for the recording and processing of this health insurance cost through the payroll process going forward. A ‘catch-up’ file will be required to address premiums already paid for 2012. As an alternative, a file may be submitted on an annual basis instead of throughout the year, if this would better match with the agency’s existing business process. Balances will need to be in place in SHARP by W-2 cut-off in late December in order to be reported on the 2012 W-2s. Information on the ‘catch-up’ and annual files will be communicated directly to regent agencies in the near future. Note: The recording of these health insurance costs in SHARP is required but the remittance responsibility for these payments remains with the regent agency.
The Office of General Services, Payroll Systems Team will make changes to the SHARP payroll system to implement the new GTAGHI deduction code. Please note, if your agency chooses to track the health coverage for GTA, GRA, and GAA students using different deduction codes in your system, all of those charges should be rolled into the SHARP GTAGHI general deduction code for reporting on the KREGPAY1. A test KREGPAY1/INF06 file set with the new deduction code should be submitted to Payroll Services before processing into the production environment. Attachment A is an example of the pay detail and payroll journal when using the GTAGHI deduction code.
MJ:NTR:kao
DATE: | October 8, 2012 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for 2013 | ||
EFFECTIVE DATE: | Calendar Year 2013 | ||
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2013 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2013. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run 'A') will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs 'B' and 'C') will normally be dated three working days from the date the off-cycle is processed. SHARP Time and Leave agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll. SHARP Time and Labor agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing.
Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of General Services must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
Note: Two On-cycle schedules are attached-one for v8.9 and one for after the SHARP upgrade to v9.1 (currently scheduled for February 9-12, 2013) when all SHARP agencies will also transition to Time and Labor. Note that off-cycle B for the 2/2/2013 Pay Period End Date will be cancelled due to the upgrade as marked with asterisks on the Off-cycle schedule.
MJ:NTR:ewb
Attachments
Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2013 (v8.9) xls
Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2013 (v9.1) xls
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2013 xls
DATE: | October 11, 2012 | ||
---|---|---|---|
SUBJECT: | Addition of New Health Savings Accounts Employer Deduction Codes/Benefit Plans | ||
EFFECTIVE DATE: | Pay Period Beginning December 9, 2012; Ending December 22, 2012; Paid January 4, 2013 | ||
CONTACT: |
Earl Brynds Eric Strate
|
(785) 296-5376 (785) 291-3546
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Addition of New Health Savings Accounts Employer Deduction Codes/Benefit Plans and Other Changes for Health Savings Accounts Plan Year 2013 Payroll Processing |
For plan year (PY) 2013, the Health Care Commission approved changes which include making the full employer contribution amount to a Health Savings Account (HSA) benefit option in one lump sum during the first pay period in January, 2013 (January 4, 2013 paycheck) for employees with a zero balance in their Health Care Flexible Spending Account by December 31, 2012. This employer contribution will be processed in SHARP for each employee participating through the State of Kansas health insurance program in a High Deductible Health Plan (HDHP) and making the required employee contribution to an HSA. For employees that still have a balance in their Health Care Flexible Spending Account on December 31, 2012, both the prorated employer contribution and employee contributions will be delayed until the first pay date in April, 2013. Employee HSA contributions will continue to be deducted semi-monthly throughout PY 2013.
For all three HDHP benefit options, the full HSA annual employer contribution amounts for full-time employees will be $1,500 for single coverage and $2,250 for dependent coverage. For part-time employees, the full HSA annual employer contribution amounts will be $1,125.20 for single coverage and $1,687.60 for dependent coverage. Prorated annual employer contribution amounts for all employees except 9-month paid employees at Regents Institutions will be as follows depending on the month the employee is enrolled for coverage:
Fulltime |
Single |
Employee + dependent |
Parttime |
Single |
Employee + dependent |
---|---|---|---|---|---|
January |
$1,500.00 |
$2,250.00 |
January |
$1,125.20 |
$1,687.60 |
February |
$1,375.00 |
$2,062.50 |
February |
$1,031.36 |
$1,546.82 |
March |
$1,250.00 |
$1,875.00 |
March |
$937.60 |
$1,406.20 |
April |
$1,125.00 |
$1,687.50 |
April |
$843.84 |
$1,265.58 |
May |
$1,000.00 |
$1,500.00 |
May |
$750.08 |
$1,124.96 |
June |
$875.00 |
$1,312.50 |
June |
$656.32 |
$984.34 |
July |
$750.00 |
$1,125.00 |
July |
$562.56 |
$843.72 |
August |
$625.00 |
$937.50 |
August |
$468.80 |
$703.10 |
September |
$500.00 |
$750.00 |
September |
$375.04 |
$562.48 |
October |
$375.00 |
$562.50 |
October |
$281.28 |
$421.86 |
November |
$250.00 |
$375.00 |
November |
$187.52 |
$281.24 |
December |
$125.00 |
$187.50 |
December |
$93.76 |
$140.62 |
For employees who are enrolled after the beginning of 2013 and for when a hire occurs in the middle of the month, the coverage begin date entered into SHARP should be effective for the beginning of the month following 30 days from the date of hire and the appropriate prorated employer contribution should also be processed effective on the first paycheck of that month. For example, a new employee is hired on June 17, 2013 and enrolls in HSA. The coverage begin date should be entered effective August 1, 2013 and the HSA prorated employer contribution for August will be processed on their first paycheck in August.
For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the HDHP benefit options will continue to be reduced by the amount of the semi-monthly HSA employer contribution and the HSA annual/prorated employer contributions will be added as flat employer contributions to the FSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Account Code 519500.
For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost. Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from KDHE, Division of Health Care Finance on a monthly, quarterly, or annual basis. Prorated annual employer contribution amounts for 9-month paid Regent employees (16 deductions) will be as follows depending on the month the employee is enrolled for coverage:
Fulltime |
Single |
Employee + dependent |
Parttime |
Single |
Employee + dependent |
---|---|---|---|---|---|
January |
$1,500.00 |
$2,250.00 |
January |
$1,125.20 |
$1,687.60 |
February |
$1,500.00 |
$2,250.00 |
February |
$1,125.20 |
$1,687.60 |
March |
$1,500.00 |
$2,250.00 |
March |
$1,125.20 |
$1,687.60 |
April |
$1,500.00 |
$2,250.00 |
April |
$1,125.20 |
$1,687.60 |
May |
$1,500.00 |
$2,250.00 |
May |
$1,125.20 |
$1,687.60 |
June |
$1,312.50 |
$1,968.68 |
June |
$984.48 |
$1,476.44 |
July |
$1,125.00 |
$1,687.44 |
July |
$843.84 |
$1,265.52 |
August |
$937.50 |
$1,406.20 |
August |
$703.20 |
$1,054.60 |
September |
$750.00 |
$1,124.96 |
September |
$562.56 |
$843.68 |
October |
$562.50 |
$843.72 |
October |
$421.92 |
$632.76 |
November |
$375.00 |
$562.48 |
November |
$281.28 |
$421.84 |
December |
$187.50 |
$281.24 |
December |
$140.64 |
$210.92 |
To accommodate the new HSA payroll processing procedures, the setup on the Deduction Table for all current HSA deduction codes in SHARP for Plan Types 6Y and 6Z will be changed to employee only deduction codes effective December 9, 2012. A new Benefit Plan Type (67) will be used in SHARP to process the employer only contributions. Also, new employer deduction codes/benefit plans will be added in SHARP effective for the payroll period beginning December 9 and ending December 22, 2012, paid January 4, 2013 and are applicable to all three HDHP benefit options.
The new HSA employer deduction codes/benefit plans are:
All employees except Regent 9-month:
PLAN TYPE | DEDUCTION CODE | DESCRIPTION | SHORTDESCRIPTION |
---|---|---|---|
67 | HSMSBL | Health Sav Acct-ER-Single-FT | HSA-ER Sgl |
67 | HSMSBX | Health Sav Acct-ER-Single PT | HSAERSglPT |
67 | HSMDBP | Health Sav Acct-ER-Dep-FT | HSA-ER Dep |
67 | HSMDBX | Health Sav Acct-ER-Dep-PT | HSAERDepPT |
Regent 9-month (16deductions):
PLAN TYPE | DEDUCTION CODE | DESCRIPTION | SHORTDESCRIPTION |
---|---|---|---|
67 | HSRSBL | Health Sav Acct-ER-Single-FT16 | HSA-ER Sgl16 |
67 | HSRSBX | Health Sav Acct-ER-Single PT16 | HSAERSglPT16 |
67 | HSRDBP | Health Sav Acct-ER-Dep-FT16 | HSA-ER Dep16 |
67 | HSRDBX | Health Sav Acct-ER-Dep-PT16 | HSAERDepPT16 |
The Office of General Services, Payroll Services Section will remit the employee and employer monies to one bank (US Bank) for all agencies and for all three health plan vendors (Blue Cross and Blue Shield of Kansas, Coventry/PHS and UnitedHealthcare) beginning with the January 4, 2013 paychecks.
The Office of General Services, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account benefit plan type/new deduction codes. Regents’ institutions are responsible for ensuring that the new Health Savings Account benefit plan type/new deduction codes are available in their individual systems. In addition, Regents’ institutions should be prepared to test their benefits interface and payroll files for the new deductions by November 15, 2012.
MJ:NTR:ewb
DATE: | October 19, 2012 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2013 | ||
CONTACT: |
Amanda Entress
|
(785) 296-3887
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Social Security Wage Base Increase to $113,700 effective January 1, 2013 |
The Social Security wage base for OASDI will be $113,700 for calendar year 2013. This is a $3,600 increase from the wage base of calendar year 2012 of $110,100. The OASDI tax rate for 2013 will be 6.2% for both employees and employers. (Note that the 2012 OASDI tax rate was 4.2% for employees and 6.2% for employers under the Middle Class Tax Relief and Job Creation Act of 2012, and that rate is scheduled to be 6.2% for both employees and employers in 2013. However, bills currently being considered in Congress may change this.) If no changes are passed by Congress, the maximum OASDI employee contribution for 2013 will be $7,049.40. There continues to be no limit on wages subject to the Medicare tax in 2013. Medicare tax rates for employers and employees remain at 1.45%. However, beginning in calendar year 2013, wages paid in excess of $200,000 will be subject to an extra 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax. Office of General Services staff are closely tracking legislation pending in Congress and additional informational circulars will be issued as necessary to communicate any changes for 2013 resulting from Federal Legislation.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $7,049.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Office of General Services, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
MJ:NTR:kao
DATE: | October 29, 2012 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2012 | ||
EFFECTIVE DATE: | November 2012 | ||
CONTACT: |
Joyce Dickerson
|
(785) 296-3979
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Payroll processing schedule changes due to the November 2012 holidays. |
||
|
Monday, November 12, 2012 (Veterans' Day), Thursday, November 22, 2012 and Friday, November 23, 2012 (Thanksgiving Holiday) are designated holidays for state service in 2012.
Due to the holidays in November, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Thursday, November 1, 2012
The third on-cycle preliminary pay calculation for the period ending October 27, 2012 will occur November 1, 2012.
Regents’ on-cycle files for the period ending October 27, 2012 must be received by the Department of Administration by 4:00 PM on November 1, 2012.
Friday, November 2, 2012
Final pay confirmation for the on-cycle payroll for the period ending October 27, 2012 will occur November 2, 2012. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on November 2, 2012 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 2, 2012 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending October 27, 2012 must be received by the Department of Administration by 4:00 PM on November 2, 2012.
Monday, November 5, 2012
The Run A off-cycle for the period ending October 27, 2012 will be processed November 5, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run A off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 9, 2012.
The Regents’ on-cycle files for the period ending October 27, 2012 will also be processed.
Tuesday, November 6, 2012
Regents’ Run B off-cycle payroll files for the period ending October 27, 2012 must be received by the Department of Administration by 4:00 PM on November 6, 2012 in order to be processed on Wednesday, November 7, 2012.
Wednesday, November 7, 2012
The Run B off-cycle for the period ending October 27, 2012 will be processed November 7, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 13, 2012.
Friday, November 9, 2012
Payday for the payroll period ending October 27, 2012.
First opportunity for Time and Leave/Time and Labor interface agencies to have time and leave files for the period ending November 10, 2012 submitted to the Department of Administration for processing by 5:00 PM on November 9, 2012. (These files would normally be due Monday, November 12, 2012). Last opportunity to submit files will be noon on Tuesday, November 13, 2012.
Regents’ Run C off-cycle payroll files for the period ending October 27, 2012 must be received by the Department of Administration by 4:00 PM on November 9, 2012.
Monday, November 12, 2012
Veterans' Day Holiday
Tuesday, November 13, 2012
The Run C off-cycle for the period ending October 27, 2012 will be processed November 13, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 16, 2012.
Paysheets for the on-cycle payroll for the period ending November 10, 2012 will be created on Tuesday, November 13, 2012. For Time and Leave agencies, all job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 13, 2012 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 10, 2012 will also occur November 13, 2012; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on November 13, 2012 in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 10, 2012.
Time and Leave/Time and Labor interface agencies can submit time and leave files for the period ending November 10, 2012 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on November 13, 2012.
Wednesday, November 14, 2012
The second on-cycle preliminary pay calculation for the period ending November 10, 2012 will occur November 14, 2012. Regents’ on-cycle payroll files for the period ending November 10, 2012 are due to the Department of Administration by 4:00 PM on November 14, 2012. (These files would normally be due Thursday, November 15, 2012.)
Thursday, November 15, 2012
Final pay confirmation for the on-cycle payroll for the period ending November 10, 2012 will occur November 15, 2012. (Final pay confirmation would normally occur Friday, November 16, 2012). For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on November 15, 2012 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 15, 2012 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 10, 2012 must be received by the Department of Administration by 4:00 PM on November 15, 2012. (These files would normally be due Friday, November 16, 2012.)
Friday, November 16, 2012
The Regents’ on-cycle files for the period ending November 10, 2012 will be processed.
The Run A off-cycle for the period ending November 10, 2012 will be processed November 16, 2012. (This off-cycle would normally be scheduled for Monday, November 19, 2012.) SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 21, 2012.
Monday, November 19, 2012
Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 10, 2012 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 21, 2012.)
Tuesday, November 20, 2012
Regents’ Run B off-cycle payroll files for the period ending November 10, 2012 must be received by the Department of Administration by 4:00 PM on November 20, 2012.
Wednesday, November 21, 2012
Payday for the payroll period ending November 10, 2012. (It would normally be Friday, November 23, 2012)
The Run B off-cycle for the period ending November 10, 2012 will be processed November 21, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 28, 2012. (Paychecks would normally be dated Monday, November 26, 2012.)
Regents’ Run C off-cycle payroll files for the period ending November 10, 2012 must be received by the Department of Administration by 4:00 PM on November 21, 2012. (These files would normally be due Friday, November 23, 2012.)
Thursday, November 22, 2012
Thanksgiving Holiday
Friday, November 23, 2012
Thanksgiving Holiday
Monday, November 26, 2012
The Run C off-cycle for the period ending November 10, 2012 will be processed November 26, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 29, 2012.
Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 24, 2012 submitted to the Department of Administration for processing by 5:00 PM on November 26, 2012.
Tuesday, November 27, 2012
Paysheets for the on-cycle payroll for the period ending November 24, 2012 will be created on Tuesday, November 27, 2012. For Time and Leave agencies, all job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 27, 2012 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 24, 2012 will also occur November 27, 2012; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck to be created. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created.
Wednesday, November 28, 2012
The second on-cycle preliminary pay calculation for the period ending November 24, 2012 will occur November 28, 2012.
Thursday, November 29, 2012
The third on-cycle preliminary pay calculation for the period ending November 24, 2012 will occur November 29, 2012.
Regents’ on-cycle files for the period ending November 24, 2012 must be received by the Department of Administration by 4:00 PM on November 29, 2012.
Friday, November 30, 2012
Final pay confirmation for the on-cycle payroll for the period ending November 24, 2012 will occur November 30, 2012. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on November 30, 2012 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 30, 2012 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 24, 2012 must be received by the Department of Administration by 4:00 PM on November 30, 2012.
Attached is a calendar for the month of November 2012, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
MJ:NTR:ccl
Attachment pdf
DATE: |
October 29, 2012 |
||
---|---|---|---|
SUBJECT: |
Deferred Compensation and Tax Sheltered Annuity |
||
EFFECTIVE DATE: |
January 1, 2013 |
||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
2013 Deferred Compensation and Tax Sheltered Annuity Limits |
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Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2013 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit is increased from the lesser of $17,000 or 100% of includible compensation (2012 calendar year limit) to the lesser of $17,500 or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit is increased from $34,000 (2012 calendar year limit) to $35,000. The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) remains the same with an annual contribution limit of $5,500 for 2013 making the total $23,000.
Please note that the two different catch-up provisions cannot be used concurrently.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2013 is the lesser of $51,000 or 100% of compensation, increased from $50,000 for 2012.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $250,000 (for 2012) to $255,000 (for 2013). The $255,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $25,500 ($255,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $35,700 ($255,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $375,000 (for 2012) to $380,000 (for 2013). However, participants should note their maximum annual compensation limit will be $364,285.71, since the $364.285.71 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $51,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $17,000 for 2012 to $17,500 for 2013. The age 50 or older catch-up provision remains the same at $5,500 for 2013. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $5,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($17,500 for 2013) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
MJ:NTR:kao
DATE: | November 19, 2012 | ||
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SUBJECT: | Organization Dues Change for ORG050 and ORG051 | ||
EFFECTIVE DATE: | Payroll Period Ending December 8, 2012 | ||
CONTACT: |
Joyce Dickerson
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(785) 296-3979
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
Change in Organization Dues Deduction for SEAK Members |
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The organization dues for the State Employees Association of Kansas (SEAK) will be increased from $5.50 to $6.50 for regular members (ORG050) and from $2.50 to $3.50 for single, head of household members (ORG051) per biweekly payroll period. The new rates will become effective with the payroll period beginning November 25, 2012 and ending December 8, 2012, paid December 21, 2012.
Currently, organization dues must be entered into SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code. In this case, the new rate for deduction code ORG050 will increase from $5.44 to $6.44 and the fee (ORF050) will remain at $.06 (for a total of $6.50 per biweekly payroll period). The new rate for deduction code ORG051 will increase from $2.44 to $3.44 and the fee (ORF051) will remain at $.06 (for a total of $3.50 per biweekly payroll period).
The Office of General Services, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after December 21, 2012.
MJ:NTR:ldk
DATE: | November 27, 2012 | ||
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SUBJECT: | Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 8, 2012 and December 22, 2012 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson
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(785) 296-3979
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
Changes to the payroll processing schedule for the payroll periods ending December 8, 2012 and December 22, 2012 due to December 24 and 25, 2012 being designated state holidays |
As a result of Governor Brownback declaring Monday, December 24 and Tuesday, December 25, 2012 as state holidays, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 8, 2012 and December 22, 2012:
Monday, December 10, 2012
The Run 'C' off-cycle for the payroll period ending November 24, 2012 continues to be scheduled for December 10, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will remain Thursday, December 13, 2012.
Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending December 8, 2012 submitted to the Department of Administration for processing by 5:00 p.m. on December 10, 2012.
Tuesday, December 11, 2012
Paysheets for the on-cycle payroll for the period ending December 8, 2012 will be created as usual on Tuesday, December 11, 2012. For Time and Leave agencies, all job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 11, 2012 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 8, 2012 will also occur December 11, 2012; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 p.m., payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Wednesday, December 12, 2012
The second on-cycle preliminary pay calculation for the period ending December 8, 2012 will occur December 12, 2012.
Thursday, December 13, 2012
The third on-cycle preliminary pay calculation for the period ending December 8, 2012 will occur December 13, 2012.
Regents’ on-cycle payroll files for the period ending December 8, 2012 are due to the Department of Administration by 4:00 p.m. on December 13, 2012.
Friday, December 14, 2012
Final pay confirmation for the on-cycle payroll for the period ending December 8, 2012 will occur December 14, 2012. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 14, 2012 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 14, 2012 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, December 21, 2012.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 8, 2012 are due to the Department of Administration by 4:00 p.m. on December 14, 2012.
Monday, December 17, 2012
The Run ‘A’ off-cycle for the period ending December 8, 2012 will be processed December 17, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, December 21, 2012.
The Regents’ on-cycle files for the period ending December 8, 2012 will be processed.
Tuesday, December 18, 2012
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 8, 2012 must be received by the Department of Administration by 4:00 p.m. on December 18, 2012 in order to be processed on Wednesday, December 19, 2012.
Wednesday, December 19, 2012
The Run 'B' off-cycle for the payroll period ending December 8, 2012 continues to be scheduled for December 19, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run ‘B’ off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. However, the check issue date for the Run 'B' off-cycle will be Wednesday, December 26, 2012. (It would normally be Monday, December 24, 2012).
Thursday, December 20, 2012
Regents’ Run ‘C’ off-cycle payroll files for the period ending December 8, 2012 must be received by the Department of Administration by 4:00 p.m. on December 20, 2012 in order to be processed on Friday, December 21, 2012. (The files would normally be due on Friday, December 21, 2012 and processed on Monday, December 24, 2012).
Friday, December 21, 2012
Payday for the payroll period ending December 8, 2012.
The Run 'C' off-cycle for the payroll period ending December 8, 2012 is scheduled for December 21, 2012. (It would normally be on Monday, December 24, 2012.) SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run ‘C’ off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. The check issue date for the Run 'C' off-cycle will be Friday, December 28, 2012. (It would normally be on Thursday, December 27, 2012).
First opportunity for Time and Leave/Time and Labor interface agencies to have time and leave files for the period ending December 22, 2012 submitted to the Department of Administration for processing by 5:00 p.m. on December 21, 2012. (The files would normally be due on Monday, December 24, 2012). Last opportunity to submit files will be noon on Wednesday, December 26, 2012.
Monday, December 24, 2012
Christmas Eve Holiday
Tuesday, December 25, 2012
Christmas Holiday
Wednesday, December 26, 2012
Paysheets for the on-cycle payroll for the period ending December 22, 2012 will be created on Wednesday, December 26, 2012. (Paysheets would normally be created on Tuesday, December 25, 2012.) For Time and Leave agencies, all job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 26, 2012 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 22, 2012 will also occur December 26, 2012. (It would normally be on Tuesday, December 25, 2012.) For Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created. Please note that there will only be two SHARP on-cycle preliminary payroll calculations for the pay period ending December 22, 2012.
Time and Leave/Time and Labor interface agencies can submit time and leave files for the period ending December 22, 2012 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on December 26, 2012.
Thursday, December 27, 2012
The 2nd on-cycle preliminary pay calculation for the period ending December 22, 2012 will occur December 27, 2012. (The 2nd pre-calc would normally be on Wednesday, December 26, 2012.)
Regents’ on-cycle payroll files for the period ending December 22, 2012 are due to the Department of Administration by 4:00 p.m. on December 27, 2012.
Friday, December 28, 2012
Final pay confirmation for the on-cycle payroll for the period ending December 22, 2012 will occur December 28, 2012. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 28, 2012 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 28, 2012 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 4, 2013.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 22, 2012 are due to the Department of Administration by 4:00 p.m. on December 28, 2012.
Sunday, December 30, 2012
The Regents’ on-cycle files for the period ending December 22, 2012 will be processed.
Monday, December 31, 2012
The Run ‘A’ off-cycle for the period ending December 22, 2012 will be processed December 31, 2012. SHARP Time and Leave/Time and Labor agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run ‘A’ off-cycle will be dated Friday, January 4, 2013.
Attached is a revised calendar for the month of December 2012 that highlights the payroll processing schedule changes due to the December 24th and 25th Christmas holidays. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at
http://da.ks.gov/sharp/infolist.htm.
Revised calendar for the month of December 2012 pdf
MJ:NTR:ccl
DATE: | November 28, 2012 | ||
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SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2013 | ||
CONTACT: |
Kathy Ogle
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(785) 296-2290
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2013 |
The Internal Revenue Service (IRS) has announced the standard mileage rate will increase to 56.5 cents beginning January 1, 2013 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 56.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2013 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $16,000 for a car (up from $15,900 in 2012), and $17,000 for a passenger truck or van (up from $16,700 in 2012). Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
MJ:NTR:kao
DATE: | November 29, 2012 | ||
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SUBJECT: | December 2012 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson
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(785) 296-3979
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APPROVAL: |
Nancy Ruoff (Original Signature on File) |
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SUMMARY: |
December 2012 Payroll Processing and Updated December Processing Calendar |
As 2012 calendar year-end approaches, the Office of General Services is making preparations for the issuance of calendar year 2012 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2012 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2013 balances; a corrected W-2 (Form W-2C) for 2012 will not be issued for the employee involved.
FINAL 2012 PAYCHECK
The final on-cycle paychecks for calendar year 2012 will be issued December 21, 2012. Payroll transactions for the December 21, 2012 on-cycle paychecks will be posted to SMART on Wednesday night, December 19, 2012. The final off-cycle paychecks for calendar year 2012 will be issued on December 28, 2012 (generated from the off-cycle processed on December 21, 2012).
PAYCHECK REVERSALS
Any 2012 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 21, 2012 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 21, 2012 will update calendar year 2013 balances and will not be reflected in the employee’s 2012 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 21, 2012 to enter paycheck adjustment requests for any 2012 paychecks. Adjustments processed in the December 21, 2012 off-cycle payroll will be reflected on the employee’s 2012 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2012 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of General Services, Payroll Section by 5:00 p.m. on Monday, December 17, 2012.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 17, 2012 for inclusion in the December 21, 2012 off-cycle. However, if a large volume of DA-180 forms is received on the December 17, 2012 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2012 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 21, 2012 which are adjusting paychecks issued prior to January 1, 2013 will not result in a W-2C; the adjustment will update the employee’s 2013 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 21, 2012 will update the employee’s 2013 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 8, 2012, paid December 21, 2012 are due to the Department of Administration by 4:00 p.m. on December 13, 2012.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2012 Paycheck Reversals
Regent Institutions must submit all transmittals for 2012 paycheck reversals by 4:00 p.m. on Thursday, December 20, 2012 in order to update the employee’s 2012 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2013 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2013 submitted after 4:00 p.m. on December 20, 2012 should default the pay adjust check date to January 1, 2013.
2012 Adjustments and Supplementals
In order to update employee balances for 2012, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Thursday, December 20, 2012. The Run C off-cycle for the pay period ending December 8, 2012 generated on the night of Friday, December 21, 2012 will have a check issue date of December 28, 2012; all activity for this off-cycle will be reflected in the employees’ 2012 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2012 date.
2013 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2013, any adjustments or supplementals submitted after 4:00 p.m. on Thursday, December 20, 2012, will be considered to be 2013 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2013 business, the employee’s 2013 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2013 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2013, agencies should default the pay adjust check date to January 1, 2013).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2013, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2013 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2013 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 20, 2012 deadline for the December 21, 2012 Run C’s off-cycle payroll will not be processed until the April 15, 2013 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 8, 2013. The deadline for submitting payroll interface files for the April 15, 2013 off-cycle is 4:00 p.m. on Friday, April 12, 2013.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2012 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 09, 2012 and December 22, 2012 in order for the last 2012 deduction to be taken on the paycheck issued December 21, 2012. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2013, agencies can enter a new row effective-dated between December 09, 2012 and December 22, 2012 in order for the first deduction for United Way or Community Health Charities for 2013 to be taken on the January 4, 2013 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 8, 2013 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2013.
A batch process will run the night of December 21, 2012 to establish the fee portion (deduction code UTFXXX) of the 2013 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2013. This process will reduce the 2013 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2013 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Wednesday, December 26, 2012 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on November 30, 2012 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on November 30, 2012 to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2013. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2013 W-4s. Employees should submit new paper W-4s by December 12, 2012 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 20, 2012 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2013.
The KPAY320 will be processed the evening of December 20, 2012. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2013 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2013 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2013 paper W-4s (for employees claiming exemption from withholding) received between December 20, 2012 and January 1, 2013, agency personnel will need to enter the data with a January 2, 2013 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2013 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change. See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4.
The 2013 Form W-4 will be posted to the Office of General Services’ website as soon as it is available from the IRS.
In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed. The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010. Agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2013.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 20, 2012 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2013. The new tax data row will be dated January 1, 2013. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2013 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2013 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 21, 2012. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Any arrearage collections made by personal reimbursement that are collected after December 14, 2012, and prior to December 21, 2012, must be sent to the Office of General Services, Payroll Section for processing in order to impact the 2012 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2012 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 8, 2012 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 26, 2012 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 26, 2012 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 21, 2012. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 27, 2012 and January 2, 2013. W-2 forms will be mailed on or before January 31, 2013. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2012 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Revised calendar for the month of December 2012
MJ:NTR:kao
DATE: | December 17, 2012 | ||
---|---|---|---|
SUBJECT: | 2013 Percentage Method Tables for State Tax Withholding | ||
EFFECTIVE DATE: | January 1, 2013 | ||
CONTACT: |
Nancy Ruoff
|
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New State Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2013 |
The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2013. Please note that the standard deduction for one withholding allowance remains unchanged at $ 2,250.00 per year in calendar year 2013. The attached tables are to be used in computing state tax withholding for wages paid on or after January 1, 2013. In order to use the attached tables, income must be annualized. To annualize income, multiply state taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
At this time, the reduction in the OASDI employee tax rate under the Middle Class Tax Relief and Job Creation Act of 2012 is scheduled to expire December 31, 2012 and the employee and employer rates are scheduled to be 6.2% for 2013. Payroll Services has not been notified of any changes in the federal income tax withholding tables. However, negotiations continue in Congress that could impact the OASDI employee rate and the Federal income tax rates. Any changes which may occur to the tables will be issued in a separate informational circular when the information is available.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
MJ:NTR:ewb
Attachment: Tables for Percentage Method of Withholding
DATE: | December 19, 2012 | ||
---|---|---|---|
SUBJECT: | Change in KOSE Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | Payroll Period Ending January 5, 2013 | ||
CONTACT: |
Nancy Ruoff
|
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Organization Dues Changes for KOSE |
The organization dues for members of the Kansas Organization of State Employees (KOSE) will be changing effective with the payroll period beginning December 23, 2012 and ending January 5, 2013, paid January 18, 2013 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Dues Deduction |
---|---|---|
ORG502 |
$ 13.99 or Less |
$15.43 |
ORG503 |
$ 14.00 – 14.99 |
$16.02 |
ORG504 |
$ 15.00 – 15.99 |
$17.12 |
ORG505 |
$ 16.00 – 16.99 |
$18.21 |
ORG506 |
$ 17.00 – 17.99 |
$19.31 |
ORG507 |
$ 18.00 or Greater |
$20.40 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG502-507 deduction codes) and the $0.06 service fee (ORF502-507 deduction codes) added together.
The Office of General Services, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KOSE dues deductions. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after January 18, 2013.
MJ:NTR:ldk
DATE: | January 7, 2013 | ||
---|---|---|---|
SUBJECT: |
W-2 Wage and Tax Statements for Calendar Year 2012 |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Amanda Entress
|
(785) 296-3887
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Information Pertaining to Employee 2012 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2012 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 28, 2012. There may be two KTXPR55 reports with a December 28, 2012 date. The one with the later time stamp should be used. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 27, 2013.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2012 W-2's that were printed for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with mailing the 2012 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2012. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2012 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 15, 2013. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial
within department number and returned to the Office of General Services, Payroll Services.
In cases where the 2012 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2007 through 2012, agencies are expected to recommend that employees use the ‘W-2 Reissue Request’ functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/. A Desk Aid that explains the procedures for requesting a duplicate W-2 from ESS is attached and may be distributed to employees to assist them in this process. Agencies are reminded that employees who retired or terminated from State service on or after September 16, 2011, have access to request duplicate W-2’s for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to request a duplicate W-2. After logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2012, 2011, 2010, 2009, 2008, or 2007) the reissued W-2 is needed. Duplicate W-2’s for 2007- 2011 are currently available, and duplicate W-2’s for 2012 will be available starting on Wednesday, January 16, 2013. Please note that duplicate W-2’s for the year 2007 will no longer be available after mid-April 2013.
The Office of General Services, Payroll Services will continue to provide duplicate W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2012 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2012 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-3887.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 21, 2012 and off-cycle checks dated December 26, 2012 and December 28, 2012 are included in the 2012 W-2 amounts.
Attachments
2012 W-2 Wage and Tax Statement Calculations
MJ:NTR:kao
DATE: | January 7, 2013 | ||
---|---|---|---|
SUBJECT: |
W-2 Wage and Tax Statements for Calendar Year 2012 |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Amanda Entress
|
(785) 296-3887
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
2013 W-2 Production Report Schedule
|
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2013 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2013 W-2 production reports are scheduled to be generated:
Friday, March 1, 2013
Friday, March 29, 2013
Friday, April 26, 2013
Friday, May 24, 2013
Friday, June 21, 2013
Friday, July 19, 2013
Friday, August 16, 2013
Friday, September 13, 2013
Friday, October 11, 2013
Friday, November 8, 2013
Friday, November 22, 2013
Wednesday, December 4, 2013
Monday, December 9, 2013
Monday, December 16, 2013
Monday, December 23, 2013
Thursday, December 26, 2013 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by the Office of General Services. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2013 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
MJ:NTR:kao
DATE: | January 8, 2013 | ||
---|---|---|---|
SUBJECT: |
2013 Percentage Method Tables for Federal Tax Withholding |
||
EFFECTIVE DATE: | January 18, 2013 | ||
CONTACT: |
Nancy Ruoff
|
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 18, 2013
|
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2013. The IRS has directed that employers should implement the 2013 withholding tables as soon as possible but not later than February 15, 2013. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 18, 2013. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance has increased to $3,900 for 2013.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2013 has increased to $2,200. In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments. Currently, the IRS has not yet released Publication 1494 for 2013.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2012 to all SHARP employees who were exempt from federal withholding in 2012. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2013. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2013 W-4s. The IRS has indicated that the 2013 Form W-4 will be available in the near future at the IRS website at http://www.irs.gov/ and will also be available at the Office of General Services website at http://www.da.ks.gov/ar/payroll/default.htm once it is released by the IRS. Employees should submit their new W-4s as soon as possible to allow adequate time for processing. Agency personnel had until 6:00 p.m. on December 20, 2012 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2013.
The KPAY320 processed during the batch cycle generated on the evening of December 20, 2012. This process searched for employees for whom a W-4 notification was sent. If a new W-4 had not been received, a January 1, 2013 effective-dated row was placed in the employee’s Tax Data record, and updated the employee’s marital status to ‘single’ and exemptions to ‘zero’. In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed. The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010. Therefore, agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2013.
For any Form W-4s for 2013 received between December 20, 2012 and January 1, 2013, agency personnel should have entered the data with a January 2, 2013 effective date. Agency Workflow Administrators also needed to change the effective date to January 2, 2013 for any electronic FormsW-4s for 2013 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2012 must file a new 8233 form for calendar year 2013 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 20, 2012, entered a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2013. The new tax data row was dated January 1, 2013. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2013 has been submitted.
The KPAY320 created a report (by SHARP agency) that identified all agency employees whose exempt withholding status was updated in SHARP on the night of December 20, 2012. The report was available in the agency directory on the MVS on Friday, December 21, 2012. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
MJ:NTR:ewb
Attachment: Tables for Percentage Method of Withholding
DATE: | January 22, 2013 | ||
---|---|---|---|
SUBJECT: |
SHARP 9.1 Upgrade and Key Payroll Processing Dates in February 2013
|
||
EFFECTIVE DATE: | Februrary, 2013 | ||
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
SHARP 9.1 Upgrade-Payroll Changes and Impact on Payroll Processing Dates in February 2013
|
||
|
This informational circular will discuss key dates and payroll changes in SHARP as a result of the transition to the SHARP version 9.1 Upgrade. On-cycle and off-cycle dates have been changed in February in order to accommodate the transition to v9.1. Please review carefully the information contained in this circular and in the calendar attached.
Due to the SHARP 9.1 Upgrade, scheduled to begin Friday night, February 8, 2013, changes are required to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, February 1, 2013
Payday for the payroll period ending January 19, 2013.
Regents’ Run C off-cycle payroll files for the period ending January 19, 2013 must be received by the Department of Administration by 4:00 PM on February 1, 2013.
Monday, February 4, 2013
The Run C off-cycle for the period ending January 19, 2013 will be processed February 4, 2013. SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated February 7, 2013.
Paysheets for the on-cycle payroll for the period ending February 2, 2013 will be created on Monday, February 4, 2013. For Time and Leave agencies, all job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on February 4, 2013 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending February 2, 2013 will also occur February 4, 2013; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM, on February 4, 2013 in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending February 2, 2013.
Time and Leave/Time and Labor interface agencies can submit time and leave files for the period ending February 2, 2013 to the Department of Administration for processing by 7:30 a.m. to be processed at 7:45 a.m. or by noon to be processed at 12:30 p.m. on February 4, 2013.
Tuesday, February 5, 2013
The second on-cycle preliminary pay calculation for the period ending February 2, 2013 will occur February 5, 2013. Regents’ on-cycle payroll files for the period ending February 2, 2013 are due to the Department of Administration by 4:00 PM on February 5, 2013. (These files would normally be due Thursday, February 7, 2013.)
Wednesday, February 6, 2013
Final pay confirmation for the on-cycle payroll for the period ending February 2, 2013 will occur February 6, 2013. (Final pay confirmation would normally occur Friday, February 8, 2013). For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on February 6, 2013 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on February 6, 2013 in order to be reflected in the final paycheck created for the employee.
Thursday, February 7, 2013
The Regents’ on-cycle files for the period ending February 2, 2013 will be processed.
Regents’ Run A off-cycle payroll files for the period ending February 2, 2013 must be received by the Department of Administration by 4:00 PM on February 7, 2013. (These files would normally be due Friday, February 8, 2013.)
Friday, February 8, 2013
The Run A off-cycle for the period ending February 2, 2013 will be processed February 8, 2013. (This off-cycle would normally be scheduled for Monday, February 11, 2013.) SHARP Time and Leave/Time and Labor agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. For Time and Labor agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated February 15, 2013. NOTE: This off-cycle is the final payroll cycle run in v8.9.
Saturday, February 9, 2013
SHARP system shut down. Data conversion for transition to v9.1 begins.
Monday, February 11, 2013
SHARP system open to core users only for validation.
Wednesday, February 13, 2013
SHARP system open to all users.
The Run B off-cycle for the period ending February 2, 2013 normally processed on Wednesday, February 13 is cancelled.
Thursday, February 14, 2013
Normal Payroll Processing Schedule resumes.
Friday, February 15, 2013
Payday for the payroll period ending February 2, 2013.
Regents’ Run C off-cycle payroll files for the period ending February 2, 2013 must be received by the Department of Administration by 4:00 PM on February 15, 2013.
Monday, February 18, 2013
The Run C off-cycle for the period ending February 2, 2013 will be processed February 18, 2013. Paychecks for the Run C off-cycle will be dated February 21, 2013.
Note: This is the first payroll processed in v9.1.
Attached is a partial month calendar for the month of February 2013, which highlights key payroll processing activity around the dates of the upgrade. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
Additional Key Payroll Changes for Transition to 9.1
As a result of the SHARP 9.1 upgrade, the following is a summary of additional key Payroll/Time and Labor changes that are being implemented in SHARP effective beginning February 13, 2013.
Time and Labor
• The old custom Time and Leave system will be discontinued and all remaining agencies will be reporting employees’ time through the Time and Labor module (Currently 11 agencies already use the Time and Labor module).
• Agencies utilizing Employee Self Service (ESS) time reporting are encouraged to have employees review their default ESS time document following go-live. Please do not request that all employees from an agency access ESS at once to review the information but rather stagger the number of employees accessing ESS for timesheet review/reporting throughout the days of Wed., Feb. 13th –Fri., Feb. 15th.
• Time Administration runs in Time and Labor to create payable time. It is imperative for agencies to understand that payable time must be approved by agency staff with the Agency Time and Labor HR role before it can be processed by payroll. Approved payable time from Time and Labor will load into payroll.
• Both exempt and non-exempt employees will report time using the same Time and Labor Time Reporting Codes (TRC). A complete listing of the crosswalk for the new leave codes that exempts should use can be found at “Time and Labor Salaried Leave TRC Crosswalk” on the SHARP website referenced above under the “Time and Labor Documents” section.
• Time Reporting Codes map to Earnings Codes used in Payroll. Regular pay will be captured in the ‘Other Earnings’ section of the employee paycheck view and the PAY002 report instead of in the ‘Earnings’ section. A new earnings code ‘RE1’ will be used for regular pay for both exempt and non-exempt employees.
• Some Time and Labor agencies will be utilizing the Labor Distribution functionality of Time and Labor. Payable time is sent to payroll; when the labor distribution process runs, payable and non-payable time (if applicable) are allocated based on percentages that are entered for agency project task profiles in Time and Labor.
• It is very important for agencies to NOT update any of their task profile information after pay calculation has begun for a pay period as it could result in pay errors.
• All task profile allocation percentages should not be less than 3% when setting up task profiles. These allocations can be viewed in the ‘Other Earnings’ section of the employee paycheck view and on the PAY002 report.
Non-Pay Affecting Adjustments
• Adjustments to employees’ previous timesheets that result in a zero net pay change will be processed in the first payroll on-cycle or off-cycle following the change to the timesheet. Time adjustment changes (such as vacation to sick) or funding adjustments can be entered on a previous timesheet(s) to process through payroll.
• A new payroll error message (number 100007) will be generated if the adjustment does not net to zero and the change will not be processed in the payroll cycle.
• Multiple non-pay affecting corrections can be made to the same employee timesheet or to multiple prior pay period timesheets in the same payroll cycle.
• Any changes made on the timesheets must be approved after the Time Administration process runs in order to flow through to payroll.
KPAYWAGE and PAY011 Reports
• The KPAYWAGE report is being discontinued and will no longer be run. Agencies should use the KPAYGL5C file to manage salary information as published in informational circular 12-P-026. Please contact Lisa Kraus at (785) 296-3699 or Lisa.Kraus@da.ks.gov for questions regarding the KPAYGL5C file.
• Agencies will no longer be able to run the PAY011-Payroll Error Messages report on-line after the conversion to SHARP 9.1. Agencies can access a copy of the PAY011 after each payroll calc in the agency MVS directory. Agencies are reminded that they should save the report to a secure directory since the MVS reports are accessible for 30 days only.
Direct Deposit Maximum Accounts
The maximum number of direct deposit accounts for an employee’s pay increases from 9 to 10. Any employees choosing to deposit their pay in 10 direct deposit accounts must fill out a revised DA-184 form. For questions on direct deposit and access to the DA-184 form, refer to the Department of Administration Payroll website at http://www.da.ks.gov/ar/payroll/payforms.htm under the Payroll Procedures & Forms section, Direct Deposit Procedures link and Direct Deposit Questions and Answers link.
MM:NTR:ewb
DATE: | January 31, 2013 | ||
---|---|---|---|
SUBJECT: |
SHARP 9.1 Upgrade HR/Payroll Checklist
|
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
See Attachment
|
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
SHARP 9.1 Upgrade HR/Payroll Checklist Tool for Agencies to use in Preparation for Go-Live Scheduled for February 13, 2013
|
In preparation for the upgrade to PeopleSoft version 9.1 for SHARP a checklist titled “HR/Payroll Checklist for SHARP Upgrade to 9.1”, attached as Appendix A to this circular, has been developed as a tool to assist agency HR and Payroll staff in completing necessary tasks prior to and following the upgrade. All agency staff involved in time reporting and payroll processing for an agency are encouraged to review the checklist and utilize this tool to successfully complete the transition to SHARP version 9.1 for their agency. In addition, a list of central HR and Payroll contacts for various HR/Payroll tasks is included at the end of the checklist. These contacts are available as resources for agency questions that may arise during this transition.
MM:NTR:ewb
Appendix A attachment
DATE: | March 7, 2013 | ||
---|---|---|---|
SUBJECT: |
Establish New Organization Dues Deduction Codes for Teamsters Local Union #696 (JJA) |
||
EFFECTIVE DATE: | Payroll Period Ending March 16, 2013 | ||
CONTACT: |
Nancy Ruoff
|
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Establish New Organization Dues Deduction Codes for JJA
|
Per notice by the Teamsters Local Union #696, seven new deduction codes will be added for membership dues deductions for employees at the Juvenile Justice Authority located in Topeka, Atchison, and Beloit. These bi-weekly deductions of organization dues, effective March 3, 2013, are based on new hourly pay rate ranges as follows:
Hourly Pay Rate Range |
Bi-Weekly Deduction Amount |
Deduction Code for Local #696 |
---|---|---|
$17.56 to $17.99 |
$20.00 |
ORG613 |
$18.00 to $18.44 |
$20.50 |
ORG614 |
$18.45 to $18.88 |
$21.00 |
ORG615 |
$18.89 to $19.33 |
$21.50 |
ORG616 |
$19.34 to $19.77 |
$22.00 |
ORG617 |
$19.78 to $20.21 |
$22.50 |
ORG618 |
$20.22 to $20.66 |
$23.00 |
ORG619 |
Agencies should refer to Informational Circular No. 08-P-024 and 09-P-035 for information regarding the initial pay rate ranges, deduction codes and bi-weekly deduction amounts for Teamsters Local Union #696.
These deduction codes will be established effective with the payroll period beginning March 3, 2013 and ending March 16, 2013, paid March 29, 2013. As a reminder, the service fee will remain $0.06 per biweekly payroll period. Agencies must enter organization dues as two separate deduction codes into employee general deduction data in SHARP. Therefore, the amounts listed above include the deduction amount (ORG613-619 deduction codes) and the $0.06 service fee (ORF613-619 deduction codes) added together.
In order to accommodate a change in an hourly pay rate range and corresponding deduction code, agencies must enter a deduction end date on both the existing ORGXXX and ORFXXX general deduction rows to stop an organizational dues deduction and fee in addition to adding the two new deduction codes for the new organizational dues deduction and fee.
Also, as a reminder, this organization is only available for membership to employees who work in specific positions at the Juvenile Justice Authority facilities in Topeka, Atchison, and Beloit.
The Office of Systems Management, Payroll Systems Team is responsible for making these updates in the SHARP system. Regent’s institutions should ensure that the use of the listed deduction codes is reflected in their individual systems effective March 3, 2013.
SG:NTR:ewb
DATE: | March13, 2013 | ||
---|---|---|---|
SUBJECT: |
Employer KPERS Death and Disability Insurance Contributions Moratorium |
||
EFFECTIVE DATE: | April 1, 2013 | ||
CONTACT: |
Cindy Lo
|
(785) 296-2259
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2013 to June 30, 2013 |
House Sub for SB 294, passed in the 2012 legislative session, calls for an additional moratorium that suspends employer contributions for KPERS Death and Disability Insurance from April 1, 2013 to June 30, 2013. As a result, the Office of Systems Management will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods during the moratorium. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning March 17, 2013 and ending March 30, 2013, paid April 12, 2013 and end with the pay period beginning May 26, 2013 and ending June 8, 2013, paid June 21, 2013. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on the original pay period end dates, so paycheck adjustments processed after April 1, 2013 for pay period end dates prior to March 30, 2013 will continue to have the contributions collected and remitted. Refer to Informational Circulars 11-P-025 and 12-P-023 at http://www.da.ks.gov/ar/infocirc/fy2012/IC12p023.htm to review the dates the previous moratoriums were in effect for 2010 through 2012. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after March 17, 2013, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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 require the "employee" to remit the required contribution while on leave without pay.
The Office of Systems Management, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
SG:NTR:ccl
DATE: | May 15, 2013 | ||
---|---|---|---|
SUBJECT: |
KPAY210, Payroll EFT Returns and Notifications of Change |
||
EFFECTIVE DATE: | June 7, 2013 | ||
CONTACT: |
Carol Beck Joyce Dickerson
|
(785) 296-2002 (785) 296-3979
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New report for payroll EFT returns and notifications of change, KPAY210
|
A new report has been created to notify agencies when a financial institution has informed the State Treasurer’s Office that a change has been made to an employee’s payroll direct deposit information. KPAY210, Payroll EFT Returns and Notifications of Change, will be placed in your agency’s MVS mailbox when these changes occur for an employee of your agency. This report replaces the “Return/NOC PAYROLL Items Received” notices previously emailed to agencies by Payroll Services.
An email will be sent to your agency staff with the [WF] Agy Payroll Administrator role in SHaRP, indicating that a KPAY210 has been placed in your agency’s MVS mailbox. This is the same role that receives W-4 changes and other SHARP payroll related workflow notices. It is imperative that at least one employee from each agency has this role in order to receive the email so that the direct deposit information can be corrected in a timely manner. In order to set up an employee with this SHaRP role, please reach out to your Agency SHARP Security Contact. If you don’t know who your contact is please check with staff in your agency’s human resource office.
When an agency receives an email indicating that KPAY210 has been placed in the agency MVS mailbox, the report should be downloaded from the MVS mailbox. Please review the report and compare the records listed with the DA-184, Authorization for Direct Deposit of Employee Pay, previously completed by the employee. The bank transit number, account number and account type (checking or savings) must be accurate to ensure proper handling of the direct deposit transaction. Contacting the employee may also be required.
The report displays department ID, employee ID, employee name, effective date, transaction code, bank transit routing number, account number, amount, and type of error. Most errors are for incorrect transit numbers and/or account numbers. An incorrect transaction code means the wrong account type is being used. A Correct Data field showing transaction code of 21 or 22 signifies a checking account. A Correct Data field showing transaction code of 31 or 32 signifies a savings account.
For SHaRP agencies, the corrected direct deposit information should be entered into SHaRP by agency staff through the Main Menu, Payroll for North America, Employee Pay Data USA, Request Direct Deposit. If the correct information cannot be obtained prior to final pay calc, please inactivate the direct deposit information or delete the bad account so that money is not re-deposited to a problem account. Regent institutions are responsible for ensuring changes are made in their individual systems and including correct direct deposit information in their interface files.
For EFT returns with money, a SMART check will be mailed to the employee’s address found in SHaRP. If a different address should be used or the employee should not be paid, contact Payroll Services as soon as possible. New direct deposit information must be updated in SHaRP and Regent interface files by payroll cut-off dates to avoid additional returned deposits.
Please direct any questions regarding the report or this circular, to the contacts listed above.
SG:NTR:kao
DATE: | May 23, 2013 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2013 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Summary of Fiscal Year End Payroll Processing
|
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2014 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 8, 2013 will use fiscal year 2013 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 8, 2013 will use fiscal year 2014 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run C off-cycle (scheduled for June 24, 2013, paid June 27, 2013) for the pay period ending June 8, 2013 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2013 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 16, 2013 and should be completed by Monday morning, June 17, 2013. In that process, a new row will be added to the Department Budget tables with an effective date of June 9, 2013 (beginning date of the first on-cycle payroll charged to FY2014). The Budget End Date will be June 8, 2014.
Agencies should send Combination Code files or any Department Budget Table files for FY14 changes into Payroll Services by Friday, June 14, 2013. These files will be loaded into SHARP beginning Monday, June 17, 2013. Agencies should not enter any rows with an effective date greater than or equal to June 9, 2013 until after the FY2014 insert has been completed. When adding new rows for FY2014, agencies should verify that June 8, 2014 was used as the Budget End Date for FY2014.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday, June 21 after the 'B' off-cycle process has been completed for the June 8, 2013 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 21. Agencies are encouraged to complete all FY13 payroll adjustments on or before the 'B' off-cycle which processes on Wednesday night, June 19, 2013, to take advantage of this early run of the KPAYGL5C. Otherwise, any adjustments processed in the 'C' off-cycle on Monday, June 24, 2013 will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 26, 2013.
GHI Adjustments
As of July 1, 2013, NO GHI adjustments can be processed for any pay period prior to the December 24, 2011 pay period end date, which was the beginning of contract year 2012. Contact Brenda Vaughn (785) 296-3147 or Lea Weishaar (785) 296-0611Weishaar@kdheks.gov at Kansas Dept of Health & Environment, Division of Health Care Finance, State Employee Health Plan about any event maintenance changes that may affect claims processing for contract year 2011 or prior.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally created on the Tuesday night following the end of the payroll period. Some changes to the employee's job data information (i.e. change in FLSA status) that are entered after the creation of the paysheets will not be reflected in the employee's on-cycle paycheck for the period and will require special handling.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee's paycheck deduction information for the period. Employer contributions have a deduction class of 'Nontaxable'.
SG:NTR:ewb
DATE: | June 4, 2013 | ||
---|---|---|---|
SUBJECT: | Inactivation of Payroll Deductions for Kansas Organization of State Employees (KOSE) Political Action Committees (PAC) | ||
EFFECTIVE DATE: | July 1, 2013 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Deduction Codes ORG501 and ORF501 Discontinued
|
Senate Sub for HB 2022 prohibits the employer from deducting any portion of the employee's pay to be used for partisan or political purposes. As a result, payroll deductions for KOSE PAC and fees, deduction codes ORG501 and ORF501, will be discontinued effective with the payroll period beginning June 9, 2013 and ending June 22, 2013, paid July 5, 2013.
No action is required from SHARP agencies to implement this change. A Deduction End Date of 06/09/2013 will be inserted centrally into any active ORG501 and ORF501 rows for employees on the General Deduction Table on Tuesday, June 25, 2013 to discontinue these deductions.
The Office of Systems Management, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
SG:NTR:ccl
DATE: | June 5, 2013 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage – FY2014 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 9, 2013 and Ending June 22, 2013, Paid July 5, 2013 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Parking Fee Increase - Curtis Building Garage – FY2014
|
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2014. To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 9, 2013 and ending June 22, 2013, paid July 5, 2013:
Deduction Code | New bi-weekly rate for pped 6/22/13 |
---|---|
PKT08B | 26.34 |
PPKT08 | 26.34 |
PKAD05 (admin fee) | 2.01 ($26.342 * .0765) |
Employees with Attorney General who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code | New bi-weekly rate for pped 6/22/13 |
---|---|
PKT10B | 13.17 |
PPKT10 | 13.17 |
PKAD07 (admin fee) | 1.01 ($13.17 * .0765) |
The parking rates for Secretary of State employees are listed below and do not change:
Deduction Code | New bi-weekly rate for pped 6/22/13 |
---|---|
PKT09B | 9.23 |
PPKT09 | 9.23 |
PKAD06 (admin fee) | 0.71 ($9.23 * .0765) |
The Office of Systems Management, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
SG:NTR:ccl
DATE: | June 6, 2013 | ||
---|---|---|---|
SUBJECT: |
Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium |
||
EFFECTIVE DATE: | July 1, 2013 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning June 9, 2013 and ending June 22, 2013, paid July 5, 2013
|
House Sub for SB 294, passed in the 2012 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2013 until June 30, 2013. The 2013 moratorium will expire on July 1, 2013. As a result, the Office of Systems Management, Payroll Services will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning June 9, 2013 and ending June 22, 2013, paid July 5, 2013.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after July 1, 2013 for pay periods ending on and between April 3, 2010 and June 12, 2010, on and between March 19, 2011 and June 11, 2011, on and between March 31, 2012 and June 9, 2012 and on and between March 30, 2013 and June 8, 2013 will continue to NOT have the contributions collected and remitted.
The Office of Systems Management, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
SG:NTR:ewb
DATE: | June 14, 2013 | ||
---|---|---|---|
SUBJECT: |
Housing, Food Service and Other Employee Maintenance |
||
EFFECTIVE DATE: | July 1, 2013 | ||
CONTACT: |
Amanda Entress Joyce Dickerson |
(785) 296-3887 (785) 296-3979
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Annual review of housing, food service and other employee
|
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of Systems Management. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2014 will require entry into the SHARP v9.1 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2014 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 24, 2013 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 22, 2013 (paychecks dated July 5, 2013).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
SG:NTR:ewb
DATE: | June 14, 2013 | ||
---|---|---|---|
SUBJECT: |
Fiscal Year 2014 Payroll Contribution Rates |
||
EFFECTIVE DATE: | Pay Period Beginning June 9, 2013; Ending June 22, 2013; Paid July 5, 2013 |
||
CONTACT: |
Kathy Ogle
|
(785) 296-2290
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Fiscal Year 2014-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 2014. The fiscal year 2014 rates will become effective with the on-cycle payroll period beginning June 9, 2013, ending June 22, 2013 and paid July 5, 2013. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2013.
For Fiscal Year 2014, the employer’s contribution to KPERS Death and Disability Insurance will be 0.85% (except for retirement codes J1, J2, J3 which are .4%). Due to the end of the moratorium implemented from April 1, 2013 to June 30, 2013, the Office of Systems Management will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions at the new rate of 0.85% effective with the pay period beginning June 9, 2013 and ending June 22, 2013, paid July 5, 2013.
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 April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; 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 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2014, employer rates are 9.82% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 13.82%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Office of Systems Management, 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.
SG:NTR:kao
Attachment A pdf
Attachment B pdf
Attachment C pdf
12-P-001 | |||
---|---|---|---|
DATE: | July 6, 2011 | ||
SUBJECT: | Addition of Earnings Code for Settlement Pay-No KPERS | ||
EFFECTIVE DATE: | July 10, 2011 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376
|
|
APPROVAL: | Signature on File | ||
SUMMARY: |
Addition of Earnings Code ‘STP’ for Settlement Pay-No KPERS |
A recent KPERS interpretation of KSA 74-4902(33) in regard to the KPERS eligible salary definition stipulates that salary shall not include severance/settlement pay or any other payments to the member determined by the board to not be payments for personal services performed. Currently, there is no settlement type pay earnings code set up in SHARP that is not subject to KPERS.
Therefore, a new earnings code has been added to SHARP effective July 10, 2011 to administer the Settlement Pay-No KPERS earnings. The following earnings code is eligible to be used starting with the pay period beginning July 10, 2011 through July 23, 2011 paid August 5, 2011.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
STP |
Settlement Pay-No KPERS |
SetNoKPERS |
07/10/2011 |
STP is an Amounts Only earnings code and any settlement pay earnings distributed by its use will not be subject to KPERS. The Settlement Pay earnings code should only be used for negotiated compensation settlements.
Time and Labor agencies: The Division of Personnel Services has created a corresponding STP (Settlement Pay-No KPERS) Time Reporting Code (TRC) to coincide with the STP Earnings Code. It is also effective July 10, 2011.
The Division of Accounts and Reports, 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.
KEO:NTR:ewb
DATE: | July 25, 2011 | ||
---|---|---|---|
SUBJECT: | Learning Quest changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Nancy Haufler
|
(785) 296-5368
|
|
APPROVAL: | |||
SUMMARY: |
Learning Quest payroll deduction changes |
State employees can now start or change a Learning Quest payroll deduction online at www.learningquest.com. Employees can either log in to their account and select payroll deduction from the list on the left or print the Payroll Direct Deposit form from the Learning Quest Forms page at https://www.learningquest.com/content/forms.html
and send it to Learning Quest. Once the request is processed on-line, the employee will receive a confirmation page with instructions to complete the form (see example of confirmation page attachment) and then they should bring it to their HR/Payroll office so that it can be entered in SHARP as a Learning Quest deduction. If the employee mails in their request, they will receive the confirmation page with instructions back in the mail.
If the employee forgets to check the box on their application/change request identifying themselves as a state employee, the instructions they get back from Learning Quest will include a routing number and account number that other employers use for ACH instructions. If an employee brings in ACH instructions, please disregard it and use the information on the confirmation page to enter/update the Learning Quest deduction in SHARP as needed.
The Learning Quest Payroll Deduction form that previously resided on the A&R website should no longer be used to request Learning Quest changes.
Employees with a current Learning Quest payroll deduction are only affected by this change if they choose to make a change to their current deduction.
Questions regarding the Learning Quest Program can be directed to Scott Gates, Learning Quest Director at 785-296-5317.
KEO:NTR:ewb
DATE: | August 25, 2011 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Codes for Voluntary Retirement Incentive Program Implementation | ||
EFFECTIVE DATE: | August 2, 2011 | ||
DPS Contact: | Kraig Knowlton | (785) 296-1082 | kraig.knowlton@da.ks.gov |
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New Earnings Codes for Voluntary Retirement Incentive Program Implementation |
The 2011 State of Kansas Voluntary Retirement Incentive Program has been implemented effective August 2, 2011 and continues through September 19, 2011.
As a result of the implementation of this program, new earnings codes have been added to SHARP effective August 7, 2011 to administer the Voluntary Retirement Incentive program. The State Leave Assessment Fund may not be used to fund these payouts. The following earnings codes are eligible to be used starting with the pay period beginning August 7, 2011, in accordance with the provisions set out in the materials regarding the Voluntary Retirement Incentive Program, which can be seen at the following link: http://www.da.ks.gov/vrip/default.htm.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
VRI |
Vol Retire Incentive -No KPERS |
VolNoKPERS |
8/7/2011 |
SLV |
Sick Leave Payout - Voluntary |
SickPayout |
8/7/2011 |
SLX |
Sick Leave Payout-Vol-No KPERS |
SickPayout |
8/7/2011 |
VLV |
Vacation Leave Payout Voluntary |
VacPayout |
8/7/2011 |
VLX |
Vac Leave Payout-Vol-No KPERS |
VacPayout |
8/7/2011 |
Pursuant to the completion of the Voluntary Retirement Incentive Program, the new earnings codes should no longer be used for payroll processing after the on-cycle is confirmed for the pay period beginning September 18, 2011 through October 1, 2011 paid October 14, 2011.
VRI is an Amounts Only earnings code and the lump sum earnings ($ 6,500.00) distributed by its use will not be subject to KPERS. Following the insertion of the standard vacation and sick leave payout codes on Tuesday night of payroll calc week in SHARP, agency personnel are responsible for updating the default codes to the appropriate new earnings codes/time reporting codes on the employee time sheet as follows for employees retiring under the incentive program only:
VLP must be updated to VLV
VLK must be updated to VLX
SLP must be updated to SLV
SLK must be updated to SLX
Time and Labor agencies: The Division of Personnel Services has created corresponding Time Reporting Codes (TRCs) to coincide with the Earnings Codes listed above. They are also effective August 7, 2011. Time and Labor agencies will continue to use the SLH (Sick Leave Payout Hours) and VLH (Vacation Leave Payout Hours) TRCs to record the payout hours.
Agencies/Positions funded solely from State sources:
For agencies/positions funded solely from State funding sources, Sick and Vacation leave payouts, as well as the lump sum retirement incentive ($6,500) will be funded by the agencies and will charge to the applicable funding splits that are used to fund the final paycheck for the retiree. Agencies who wish to fund the lump sum retirement incentive or payouts from a state funding source available to the agency that is different from the employee’s regular payroll funding can set up funding for the applicable earnings codes (VRI,VLV, VLX, SLV, SLX) using combo codes in the Department Budget Tables in SHARP and/or on the timesheet in Time and Labor.
Agencies/Positions funded in part or in full from Federal sources:
For agencies/positions funded in part or in full from Federal sources, agencies are responsible for the determination of which payments (if any) related to the voluntary retirement incentive (vacation leave payout, sick leave payout, and the lump sum incentive) are eligible to be funded from the Federal programs/funding sources utilized to fund the employee/position. If the agency determines that the payments cannot be funded using the same funding/splits for the employee’s final paycheck, the agency is then responsible for ensuring the appropriate funding (Federal or State) is established through set up of the applicable earnings codes (i.e. VRI, VLV, VLX, SLV, SLX) using combo codes in the Department Budget Tables in SHARP and/or on the timesheet in Time and Labor in order to insure the appropriate funding is charged to State sources or Federal sources.
The Office of General Services, Payroll Systems Team, is responsible for adding the new earnings codes in the SHARP system. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems.
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DATE: | August 30, 2011 | ||
---|---|---|---|
SUBJECT: | Addition of New Account Codes for Voluntary Retirement Incentive Program Expenditure Tracking | ||
EFFECTIVE DATE: | August 2, 2011 | ||
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New Account Codes for Voluntary Retirement Incentive Program Expenditure Tracking-Supplement to Info Circ 12-P-003 |
As a result of the implementation of the Voluntary Retirement Incentive Program, new account codes have been added to SMART/SHARP effective August 7, 2011 to use for payroll expenditure tracking. The following account codes are eligible to be used starting with the pay period beginning August 7, 2011.
Account Code | Description | Short Description | Effective Date |
---|---|---|---|
514401 |
Volntry Retire Incntv Cash Opt |
VolRetCash |
8/7/2011 |
514402 |
Volntry Rtire Inctv Vac Payout |
VolRetVac |
8/7/2011 |
514403 |
Volntry Retire Incntv Sick Pay |
VolRetSick |
8/7/2011 |
Account Code 514401 will be used for the cash lump sum retirement incentive ($6,500) only and processed with earnings code VRI. Account Code 514402 will be used for the Vacation leave payouts only and processed with earnings codes VLV and VLX. Account Code 514403 will be used for the Sick leave payouts only and processed with earnings codes SLV and SLX. These account codes will only track gross payout expenditures. No related employer fringe costs will be recorded using these account codes.
Pursuant to the completion of the Voluntary Retirement Incentive Program, the new account codes should no longer be used for payroll processing after the on-cycle is confirmed for the pay period beginning September 18, 2011 through October 1, 2011 paid October 14, 2011.
The Office of General Services, Payroll Systems Team, is responsible for adding the new account codes in the SHARP system. Regents' institutions are responsible for implementing the new account codes in their payroll systems.
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DATE: | September 2, 2011 | ||
---|---|---|---|
SUBJECT: | Extension of the Voluntary Retirement Incentive Program | ||
EFFECTIVE DATE: | August 31, 2011 | ||
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Extension of the Voluntary Retirement Incentive Program- Earnings and Account Code Usage |
On August 31, 2011, the Voluntary Retirement Incentive Program (VRIP) was extended through October 31, 2011. As a result of the extension, agencies should also note the extended use of the new earnings and account codes established in SHARP to administer the VRIP.
Pursuant to the completion of the Voluntary Retirement Incentive Program, the new earnings and account codes should now no longer be used for payroll processing after the on-cycle is confirmed for the pay period beginning October 30, 2011 through November 12, 2011 paid November 23, 2011.
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DATE: | September 6, 2011 Supersedes: 11-P-007 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | Payroll Period Ending September 17, 2011 | ||
CONTACT: |
Janice Wolfley
|
(785) 296-3699
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 4, 2011 and ending September 17, 2011, paid September 30, 2011 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 13.99 or Less | $ 1119.20 or Less | $ 9.82 |
ORG002 | $ 14.00 – 14.99 | $ 1119.21 – 1199.20 | $10.81 |
ORG003 | $ 15.00 – 15.99 | $ 1199.21 – 1279.20 | $11.75 |
ORG004 | $ 16.00 – 16.99 | $ 1279.21 – 1359.20 | $12.72 |
ORG005 | $ 17.00 – 17.99 | $ 1359.21 – 1439.20 | $13.69 |
ORG006 | $ 18.00 or Greater | $ 1439.21 or Greater | $14.66 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.
The Office of General Services, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 30, 2011.
MJ:NTR:ccl
DATE: | September 15, 2011 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for 2012 | ||
EFFECTIVE DATE: | Calendar Year 2012 | ||
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2012 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2012. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. SHARP Time and Leave agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. SHARP Time and Labor agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of General Services must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
MJ:NTR:ewb
Attachments
Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2012 PDF
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2012 PDF
DATE: | September 29, 2011 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30 |
||
EFFECTIVE DATE: | Payroll Period Ending October 1, 2011 | ||
CONTACT: |
Nancy Ruoff
|
(785) 296-2853
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $28.65 to $29.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning September 18, 2011 and ending October 1, 2011, paid October 14, 2011.
Currently, organization dues must be entered into SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code. In this case, the new rate for deduction code ORG030 will increase from $28.59 to $29.44 and the fee (ORF030) will remain at $.06 (for a total of $29.50 per biweekly payroll period).
The Office of General Services, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after October 14, 2011.
MJ:NTR:ccl
DATE: | October 5, 2011 | ||
---|---|---|---|
SUBJECT: | Addition of New Health Savings Accounts/Medical Deduction Codes | ||
EFFECTIVE DATE: | Pay Period Beginning December 11, 2011; Ending December 24, 2011; Paid January 6, 2012 | ||
CONTACT: |
Earl Brynds
|
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Addition of New Health Savings Accounts/Medical Deduction Codes and Other Changes for Group Health Insurance Plan Year 2012 |
For plan year (PY) 2012, the Health Care Commission approved the addition of a new Health Savings Account (HSA) benefit option for each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. In addition to the current QHDHP’s offered by Coventry Healthcare and United Healthcare, employees will be eligible to enroll in a new QHDHP offered through Blue Cross. SelectAccount is the custodian for Blue Cross participants.
Another major change for PY 2012 is Preferred Health being merged with Coventry. Current Preferred Health HSA and medical deduction codes will not be valid and will no longer be used in PY 2012. Members in prior Preferred Health HSA plans will be converted to Coventry HSA plans during open enrollment. Any adjustments made to previous Preferred Health HSA and medical deduction codes will be reported and remitted to Coventry.
For all three QHDHP benefit options, the HSA annual employer contribution amounts for full-time employees will be $900 for single coverage and $1350 for dependent coverage. For part-time employees, the HSA annual employer contribution amounts will be $675.12 for single coverage and $1012.56 for dependent coverage.
For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP benefit options will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the FSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Account Code 519500.
For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost. Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from KDHE, Division of Health Care Finance on a monthly, quarterly, or annual basis.
To accommodate the new HSA plan, new deduction codes will be added in SHARP effective for the payroll period beginning December 11 and ending December 24, 2011, paid January 6, 2012.
The new Medical and HSA deduction codes for Blue Cross are:
PLAN TYPE | DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
10 |
BCCCAD |
BCBS - Plan C - AT - NTU Disc | MedNTUDisc |
10 |
BCCCAT |
BCBS - Plan C - AT - TU NoDisc | Medical |
10 |
BCCCBD |
BCBS - Plan C - BT - NTU Disc | MedNTUDisc |
10 |
BCCCBT |
BCBS - Plan C - BT - TU NoDisc | Medical |
All employees except Regent 9-month:
PLAN TYPE | DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y |
HSASBL |
BCBS-Health Sav Acct-Single-FT | HSA-Single |
6Y |
HSASBX |
BCBS-Health Sav Acct-Single-PT | HSA-SglePT |
6Z |
HSADBP |
BCBS-Health Sav Acct-Dep-FT | HSA-Depend |
6Z |
HSADBX |
BCBS-Health Sav Acct-Dep-PT | HSA-DepPT |
Regent 9-month (16deductions):
PLAN TYPE | DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y |
HSXSBL |
BCBS-Health Sav Act-Sgl-FT16 | HSA-Sing16 |
6Y |
HSXSBX |
BCBS-Health Sav Act-Sgl-PT16 | HSA-SgPT16 |
6Z |
HSXDBP |
BCBS-Health Sav Acct-Dep-FT16 | HSA-Dep16 |
6Z |
HSXDBX |
BCBS-Health Sav Acct-Dep-PT16 | HSADepPT16 |
The Office of General Services, Payroll Services Section will remit the employee and employer monies to SelectAccount for all agencies.
The Office of General Services, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account benefit option/new deduction codes. Regent’s institutions are responsible for ensuring that the new Health Savings Account benefit option/new deduction codes are available in their individual systems. In addition, Regent’s institutions should be prepared to test their benefits interface and payroll files for the new deductions by November 1, 2011.
MJ:NTR:ewb
DATE: | October 25, 2011 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2011 | ||
EFFECTIVE DATE: | November 2011 | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Payroll processing schedule changes due to the November 2011 holidays. |
Friday, November 11, 2011 (Veterans' Day), Thursday, November 24, 2011 and Friday, November 25, 2011 (Thanksgiving Holiday) are designated holidays for state service in 2011.
Due to the holidays in November, changes are required to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Tuesday, November 1, 2011
Paysheets for the on-cycle payroll for the period ending October 29, 2011 will be created on Tuesday, November 1, 2011. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 1, 2011 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending October 29, 2011 will also occur November 1, 2011; therefore, for Time and Leave agencies, all employees' time and leave data must be entered into SHARP and designated 'OK to Process' by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees' reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.
Wednesday, November 2, 2011
The second on-cycle preliminary pay calculation for the period ending October 29, 2011 will occur November 2, 2011.
Regents' on-cycle payroll files for the period ending October 29, 2011 are due to the Department of Administration by 4:00 PM on November 2, 2011. (These files would normally be due Thursday, November 3, 2011.)
Thursday, November 3, 2011
The third on-cycle preliminary pay calculation for the period ending October 29, 2011 will occur November 3, 2011.
Friday, November 4, 2011
Final pay confirmation for the on-cycle payroll for the period ending October 29, 2011 will occur November 4, 2011. For Time and Leave agencies, all employees' time and leave records must be 'OK to Process', and for Time and Labor agencies, all employees' payable time must be approved, by 6:00 PM on November 4, 2011 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 4, 2011 in order to be reflected in the final paycheck created for the employee.
Regents' Run A off-cycle payroll files for the period ending October 29, 2011 must be received by the Department of Administration by 4:00 PM on November 4, 2011.
Sunday, November 6, 2011
The Regents' on-cycle files for the period ending October 29, 2011 will be processed.
Monday, November 7, 2011
The Run A off-cycle for the period ending October 29, 2011 will be processed November 7, 2011. Paychecks for the Run A off-cycle will be dated November 10, 2011.
Tuesday, November 8, 2011
Regents' Run B off-cycle payroll files for the period ending October 29, 2011 must be received by the Department of Administration by 4:00 PM on November 8, 2011 in order to be processed on Wednesday, November 9, 2011.
Wednesday, November 9, 2011
The Run B off-cycle for the period ending October 29, 2011 will be processed November 9, 2011. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 14, 2011.
Thursday, November 10, 2011
Payday for the payroll period ending October 29, 2011.
Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 12, 2011 submitted to the Department of Administration for processing by 5:00 PM on November 10, 2011. (These files would normally be due Monday, November 14, 2011.)
Regents' Run C off-cycle payroll files for the period ending October 29, 2011 must be received by the Department of Administration by 4:00 PM on November 10, 2011.
Friday, November 11, 2011
Veterans' Day Holiday
Monday, November 14, 2011
The Run C off-cycle for the period ending October 29, 2011 will be processed November 14, 2011. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 17, 2011.
Paysheets for the on-cycle payroll for the period ending November 12, 2011 will be created on Monday, November 14, 2011. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 14, 2011 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, November 15, 2011.)
The first on-cycle preliminary pay calculation for the period ending November 12, 2011 will also occur November 14, 2011, rather than Tuesday, November 15, 2011; therefore, for Time and Leave agencies, all employees' time and leave data must be entered into SHARP and designated 'OK to Process' by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees' reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM.on November 14, 2011 in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 12, 2011.
Tuesday, November 15, 2011
The second on-cycle preliminary pay calculation for the period ending November 12, 2011 will occur November 15, 2011.
Regents' on-cycle payroll files for the period ending November 12, 2011 are due to the Department of Administration by 4:00 PM on November 15, 2011. (These files would normally be due Thursday, November 17, 2011.)
Wednesday, November 16, 2011
Final pay confirmation for the on-cycle payroll for the period ending November 12, 2011 will occur November 16, 2011. (Final pay confirmation would normally occur Friday, November 18, 2011). For Time and Leave agencies, all employees' time and leave records must be 'OK to Process', and for Time and Labor agencies, all employees' payable time must be approved, by 6:00 PM on November 16, 2011 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 16, 2011 in order to be reflected in the final paycheck created for the employee.
Thursday, November 17, 2011
The Regents' on-cycle files for the period ending November 12, 2011 will be processed.
Regents' Run A off-cycle payroll files for the period ending November 12, 2011 must be received by the Department of Administration by 4:00 PM on November 17, 2011. (These files would normally be due Friday, November 18, 2011.)
Friday, November 18, 2011
The Run A off-cycle for the period ending November 12, 2011 will be processed November 18, 2011. (This off-cycle would normally be scheduled for Monday, November 21, 2011.) Paychecks for the Run A off-cycle will be dated November 23, 2011.
Monday, November 21, 2011
Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 12, 2011 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 23, 2011.)
Tuesday, November 22, 2011
Regents' Run B off-cycle payroll files for the period ending November 12, 2011 must be received by the Department of Administration by 4:00 PM on November 22, 2011.
Wednesday, November 23, 2011
Payday for the payroll period ending November 12, 2011. (It would normally be Friday, November 25, 2011)
The Run B off-cycle for the period ending November 12, 2011 will be processed November 23, 2011. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 30, 2011. (Paychecks would normally be dated Monday, November 28, 2011.)
Regents' Run C off-cycle payroll files for the period ending November 12, 2011 must be received by the Department of Administration by 4:00 PM on November 23, 2011. (These files would normally be due Friday, November 25, 2011.)
Thursday, November 24, 2011
Thanksgiving Holiday
Friday, November 25, 2011
Thanksgiving Holiday
Monday, November 28, 2011
The Run C off-cycle for the period ending November 12, 2011 will be processed November 28, 2011. Paychecks for the Run C off-cycle will be dated December 1, 2011.
Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 26, 2011 submitted to the Department of Administration for processing by 5:00 PM on November 28, 2011.
Tuesday, November 29, 2011
Paysheets for the on-cycle payroll for the period ending November 26, 2011 will be created on Tuesday, November 29, 2011. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 29, 2011 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 26, 2011 will also occur November 29, 2011; therefore, for Time and Leave agencies, all employees' time and leave data must be entered into SHARP and designated 'OK to Process' by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees' reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.
Wednesday, November 30, 2011
The second on-cycle preliminary pay calculation for the period ending November 26, 2011 will occur November 30, 2011.
Attached is a calendar for the month of November 2011, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
MJ:NTR:ccl
DATE: | October 27, 2011 | ||
---|---|---|---|
SUBJECT: | Terminated/Retired Employee Self Service Access Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Kathy Ogle |
(785) 296-2290 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Request W-2 Reissue access in Employee Self Service has been extended for terminated and retired users. |
Changes have been made in SHARP to allow retired and terminated Employee Self Service (ESS) users access to ESS for longer than 30 days for the purpose of requesting the reissue of W-2 duplicates. Retired/terminated employees will continue to have full ESS access for 30 days after their termination effective date. After 30 days, these users will be given a new limited security role which is restricted to two ESS links: Update My Profile and Request W-2 Reissue. These users may access these two links for 18 months from their termination effective date, at which time all access will be terminated. The changes to ESS access for 18 months following retirement/termination is effective for any employee who was active in the SHARP payroll system as of September 16, 2011 and becomes inactive after that date.
Reissue requests for W-2 duplicates for the most recent 5 years will be available through Employee Self Service. Currently reissue requests for 2006-2010 are available through ESS. Reissue requests from 2002 up to the most recent five years (currently 2002-2005) must continue to be requested through Payroll Services. W-2 duplicates are no longer available for calendar years prior to 2002.
Agencies should inform employees upon their retirement/termination that they have the ability to request a duplicate W-2 themselves for 18 months after their termination effective date. ESS may be accessed through the Self Service Center website located at www.kansas.gov/employee by clicking the Employee Self Service hyperlink located on the right side of the page. The Self Service Center is available anytime except during daily routine systems maintenance from 6:00 p.m. to 7:00 p.m. CT and Sundays from 8:00 a.m. to 12:00 noon CT. A Desk Aid that explains the procedures for requesting a duplicate W-2 from ESS is attached and may be distributed to retiring/terminating employees. It is also available on the Self Service Center website. If the past employee does not remember their password at any time during this 18 month period, a 'Forgot Your Password Tutorial' is also available on the Self Service Center website. Other resources available on this website that may be of interest are 'Employee Self Service Center – Frequently Asked Questions' and 'Request W-2 Reissue FAQ's'.
The changes to SHARP ESS access have been completed and are effective immediately. Because the Request W-2 Reissue section is available to employees of both SHARP agencies and Regent's institutions, all retiring/terminating employees should be informed of the extended ESS access to request duplicate W-2s.
MJ:NTR:kao
DATE: | November 1, 2011 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2012 |
||
EFFECTIVE DATE: | January 1, 2012 | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
2012 Deferred Compensation and Tax Sheltered Annuity Limits |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2012 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit is increased from the lesser of $16,500 or 100% of includible compensation (2011 calendar year limit) to the lesser of $17,000 or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit is increased from $33,000 (2011 calendar year limit) to $34,000. The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) remains the same with an annual contribution limit of $5,500 for 2012 making the total $22,500.
Please note that the two different catch-up provisions cannot be used concurrently.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2012 is the lesser of $50,000 or 100% of compensation, increased from $49,000 for 2011.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $245,000 (for 2011) to $250,000 (for 2012). The $250,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $25,000 ($250,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $35,000 ($250,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $360,000 (for 2011) to $375,000 (for 2012). However, participants should note their maximum annual compensation limit will be $357,142.86, since the $357,142.86 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $50,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $16,500 for 2011 to $17,000 for 2012. The age 50 or older catch-up provision remains the same at $5,500 for 2012. Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on an annual contribution by $5,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($17,000 for 2012) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
MJ:NTR:kao
DATE: | November 17, 2011 | ||
---|---|---|---|
SUBJECT: | Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 10, 2011 and December 24, 2011 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Changes to the payroll processing schedule for the payroll periods ending December 10, 2011 and December 24, 2011 due to December 26, 2011 being designated a state holiday |
As a result of former Governor Parkinson declaring Monday, December 26, 2011 as a state holiday, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 10, 2011 and December 24, 2011:
Monday, December 12, 2011
The Run 'C' off-cycle for the payroll period ending November 26, 2011 continues to be scheduled for December 12, 2011. The check issue date for the Run 'C' off-cycle will remain Thursday, December 15, 2011.
Interface agencies must have time and leave files for the period ending December 10, 2011 submitted to the Department of Administration for processing by 5:00 p.m. on December 12, 2011.
Tuesday, December 13, 2011
Paysheets for the on-cycle payroll for the period ending December 10, 2011 will be created as usual on Tuesday, December 13, 2011. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 13, 2011 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 10, 2011 will also occur December 13, 2011; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Wednesday, December 14, 2011
The second on-cycle preliminary pay calculation for the period ending December 10, 2011 will occur December 14, 2011.
Thursday, December 15, 2011
The third on-cycle preliminary pay calculation for the period ending December 10, 2011 will occur December 15, 2011.
Regents’ on-cycle payroll files for the period ending December 10, 2011 are due to the Department of Administration by 4:00 p.m. on December 15, 2011.
Friday, December 16, 2011
Final pay confirmation for the on-cycle payroll for the period ending December 10, 2011 will occur December 16, 2011. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 16, 2011 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 16, 2011 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, December 23, 2011.
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 10, 2011 are due to the Department of Administration by 4:00 p.m. on December 16, 2011.
Monday, December 19, 2011
The Run ‘A’ off-cycle for the period ending December 10, 2011 will be processed December 19, 2011. SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will be dated Friday, December 23, 2011.
The Regents’ on-cycle files for the period ending December 10, 2011 will be processed.
Tuesday, December 20, 2011
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 10, 2011 must be received by the Department of Administration by 4:00 p.m. on December 20, 2011 in order to be processed on Wednesday, December 21, 2011.
Wednesday, December 21, 2011
The Run 'B' off-cycle for the payroll period ending December 10, 2011 continues to be scheduled for December 21, 2011. The check issue date for the Run 'B' off-cycle will be Tuesday, December 27, 2011. (It would normally be Monday, December 26, 2011.)
Friday, December 23, 2011
Payday for the payroll period ending December 10, 2011.
Regents’ Run ‘C’ off-cycle payroll files for the period ending December 10, 2011 must be received by the Department of Administration by 4:00 p.m. on December 23, 2011 in order to be processed on Tuesday, December 27, 2011.
Interface agencies must have time and leave files for the period ending December 24, 2011 submitted to the Department of Administration for processing by 5:00 p.m. on December 23, 2011.
Monday, December 26, 2011
Christmas Holiday
Tuesday, December 27, 2011
The Run 'C' off-cycle for the payroll period ending December 10, 2011 is scheduled for December 27, 2011. (It would normally be on Monday, December 26, 2011.) The check issue date for the Run 'C' off-cycle will be Friday, December 30, 2011. (It would normally be on Thursday, December 29, 2011.)
Paysheets for the on-cycle payroll for the period ending December 24, 2011 will be created as usual on Tuesday, December 27, 2011. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 27, 2011 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 24, 2011 will also occur December 27, 2011. For Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.
Wednesday, December 28, 2011
The 2nd on-cycle preliminary pay calculation for the period ending December 24, 2011 will occur December 28, 2011.
Regents’ on-cycle payroll files for the period ending December 24, 2011 are due to the Department of Administration by 4:00 p.m. on December 28, 2011. (They would normally be due on Thursday, December 29, 2011.)
Thursday, December 29, 2011
The 3rd on-cycle preliminary pay calculation for the period ending December 24, 2011 will occur December 29, 2011.
Friday, December 30, 2011
Final pay confirmation for the on-cycle payroll for the period ending December 24, 2011 will occur December 30, 2011. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 p.m. on December 30, 2011 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 30, 2011 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 6, 2012.
Attached is a revised calendar for the month of December 2011 that highlights the payroll processing schedule changes due to the December 26th Christmas holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at
http://da.ks.gov/sharp/infolist.htm.
Attachment: Calendar pdf
MJ:NTR:ccl
DATE: | November 29, 2011 | ||
---|---|---|---|
SUBJECT: | December 2011 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
December 2011 Payroll Processing and Updated December Processing Calendar |
As 2011 calendar year-end approaches, the Office of General Services is making preparations for the issuance of calendar year 2011 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2011 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2012 balances; a corrected W-2 (Form W-2C) for 2011 will not be issued for the employee involved.
FINAL 2011 PAYCHECK
The final on-cycle paychecks for calendar year 2011 will be issued December 23, 2011. Payroll transactions for the December 23, 2011 on-cycle paychecks will be posted to SMART on Wednesday night, December 21, 2011. The final off-cycle paychecks for calendar year 2011 will be issued on December 30, 2011 (generated from the off-cycle processed on December 27, 2011).
PAYCHECK REVERSALS
Any 2011 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 27, 2011 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 27, 2011 will update calendar year 2012 balances and will not be reflected in the employee’s 2011 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 27, 2011 to enter paycheck adjustment requests for any 2011 paychecks. Adjustments processed in the December 27, 2011 off-cycle payroll will be reflected on the employee’s 2011 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2011 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of General Services, Payroll Section by 5:00 p.m. on Wednesday, December 14, 2011.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 14, 2011 for inclusion in the December 27, 2011 off-cycle. However, if a large volume of DA-180 forms is received on the December 14, 2011 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2011 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 27, 2011 which are adjusting paychecks issued prior to January 1, 2012 will not result in a W-2C; the adjustment will update the employee’s 2012 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2011 will update the employee’s 2012 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 10, 2011, paid December 23, 2011 are due to the Department of Administration by 4:00 p.m. on December 15, 2011.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2011 Paycheck Reversals
Regent Institutions must submit all transmittals for 2011 paycheck reversals by 4:00 p.m. on Friday, December 23, 2011 in order to update the employee’s 2011 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2012 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2012 submitted after 4:00 p.m. on December 23, 2011 should default the pay adjust check date to January 1, 2012.
2011 Adjustments and Supplementals
In order to update employee balances for 2011, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 23, 2011. The Run C off-cycle for the pay period ending December 10, 2011 generated on the night of Tuesday, December 27, 2011 will have a check issue date of December 30, 2011; all activity for this off-cycle will be reflected in the employees’ 2011 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2011 date.
2012 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2012, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 23, 2011, will be considered to be 2012 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2012 business, the employee’s 2012 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2012 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2012, agencies should default the pay adjust check date to January 1, 2012).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2012, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2012 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2012 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2011 deadline for the December 27, 2011 Run C’s off-cycle payroll will not be processed until the April 11, 2012 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 9, 2012. The deadline for submitting payroll interface files for the April 11, 2012 off-cycle is 4:00 p.m. on Tuesday, April 10, 2012.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2011 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 11, 2011 and December 24, 2011 in order for the last 2011 deduction to be taken on the paycheck issued December 23, 2011. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2012, agencies can enter a new row effective-dated between December 11, 2011 and December 24, 2011 in order for the first deduction for United Way or Community Health Charities for 2012 to be taken on the January 6, 2012 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 9, 2012 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2012.
A batch process will run the night of December 23, 2011 to establish the fee portion (deduction code UTFXXX) of the 2012 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2012. This process will reduce the 2012 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2012 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Tuesday, December 27, 2011 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding
must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2011 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 1, 2011 to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2012. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2012 W-4s. Employees should submit new paper W-4s by December 14, 2011 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 19, 2011 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2012.
The KPAY320 will be processed the evening of December 19, 2011. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2012 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2012 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2012 paper W-4s (for employees claiming exemption from withholding) received between December 19, 2011 and January 1, 2012, agency personnel will need to enter the data with a January 2, 2012 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2012 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change. See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4.
The 2012 Form W-4 will be posted to the Office of General Services website as soon as it is available from the IRS.
In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed. The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010. Agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2012.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 19, 2011 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2012. The new tax data row will be dated January 1, 2012. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2012 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2012 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 2011. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Any arrearage collections made by personal reimbursement that are collected after December 16, 2011, and prior to December 27, 2011, must be sent to the Office of General Services, Payroll Section for processing in order to impact the 2011 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2011 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 10, 2011 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 28, 2011 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 28, 2011 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2011. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 29, 2011 and January 3, 2012. W-2 forms will be mailed on or before January 31, 2012. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2011 that highlights the key payroll processing activity. Please note that the original 12/23/2011 due date for Time and Leave and Time and Labor files for all interface agencies as previously published in Informational Circular 12-P-013 has also been extended to Monday, December 26, 2011 by 5:00 p.m. for night batch processing and Tuesday, December 27, 2011 by 12:00 p.m. for 12:30 p.m. day batch processing. These extended due dates/times have also been added to the attached calendar. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.state.ks.us/sharp/infolist.htm.
Attachment: Calendar pdf
MJ:NTR:kao
DATE: | December 6, 2011 | ||
---|---|---|---|
SUBJECT: | Change in KOSE Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | Payroll Period Ending January 7, 2012 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-2853 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Organization Dues Changes for KOSE |
The organization dues for members of the Kansas Organization of State Employees (KOSE) will be changing effective with the payroll period beginning December 25, 2011 and ending January 7, 2012, paid January 20, 2012 as follows:
Deduction Code |
Hourly Rate of Pay |
Bi-Weekly Dues Deduction |
---|---|---|
ORG502 | $ 13.99 or Less |
$15.29 |
ORG503 | $ 14.00 – 14.99 |
$15.88 |
ORG504 | $ 15.00 – 15.99 |
$16.98 |
ORG505 | $ 16.00 – 16.99 |
$18.07 |
ORG506 | $ 17.00 – 17.99 |
$19.17 |
ORG507 | $ 18.00or Greater |
$20.26 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG502-507 deduction codes) and the $0.06 service fee (ORF502-507 deduction codes) added together.
The Office of General Services, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KOSE dues deductions. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after January 20, 2012.
MJ:NTR:ccl
DATE: | December 6, 2011 | ||
---|---|---|---|
SUBJECT: | 2012 Percentage Method Tables for Federal Tax Withholding | ||
EFFECTIVE DATE: | January 1, 2012 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-2853 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2012. |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2012. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2012. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,800 for 2012.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2011 to all SHARP employees who were exempt from federal withholding in 2011. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2012. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2012 W-4s. The IRS has indicated that the 2012 Form W-4 will be available in the near future at the IRS website at http://www.irs.gov/ and will also be available at the Accounts and Reports website at http://www.da.ks.gov/ar/payroll/default.htm once it is released by the IRS. Employees should submit their new W-4s as soon as possible to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 19, 2011 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2012.
The KPAY320 will process during the batch cycle generated on the evening of December 19, 2011. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2012 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’. In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed. The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010. Therefore, agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2012.
For any Form W-4s for 2012 received between December 19, 2011 and January 1, 2012, agency personnel will need to enter the data with a January 2, 2012 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Thursday, December 29, 2011 in order to be reflected in the on-cycle paycheck dated January 6, 2012. Agency Workflow Administrators will also need to change the effective date to January 2, 2012 for any electronic FormsW-4s for 2012 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2011 must file a new 8233 form for calendar year 2012 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 19, 2011 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2012. The new tax data row will be dated January 1, 2012. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2012 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 19, 2011. The report will be available in the agency directory on the MVS on Tuesday, December 20, 2011. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
MJ:NTR:ewb
Attachment: Tables for Percentage Method of Withholding
DATE: | December 12, 2011 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2012 | ||
CONTACT: |
Kathy Ogle |
(785) 296-2290 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2012 |
The Internal Revenue Service (IRS) has announced the standard mileage rate will remain unchanged at 55.5 cents beginning January 1, 2012 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 55.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2012 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,900 for a car (up from $15,300 in 2011), and $16,700 for a passenger truck or van (up from $16,200 in 2011). Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
MJ:NTR:kao
DATE: | December 13, 2011 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2012 | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Social Security Wage Base Increase to $110,100 effective January 1, 2012 |
The Social Security wage base for OASDI will be $110,100 for calendar year 2012. This is a $3,300 increase from the wage base of the past three years of $106,800. If no changes are passed by Congress, the OASDI tax rate for 2012 will be 6.2% for both employees and employers. (Note that the 2011 OASDI tax rate was 4.2% for employees and 6.2% for employers under the Tax Relief Act of 2010, and that rate is scheduled to be 6.2% for both employees and employers in 2012. However, bills currently being considered in Congress may change this.) If no changes are passed by Congress, the maximum OASDI employee contribution for 2012 will be $6,826.20. There continues to be no limit on wages subject to the Medicare tax in 2012. Medicare tax rates for employers and employees remain at 1.45%. Office of General Services staff are closely tracking legislation pending in Congress and additional informational circulars will be issued as necessary to communicate any changes for 2012 resulting from Federal Legislation.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $6,826.20 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Office of General Services, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
MJ:NTR:kao
DATE: | December 28, 2011 | ||
---|---|---|---|
SUBJECT: | Extension of OASDI 4.2% Tax Rate for Employees | ||
EFFECTIVE DATE: | January 1, 2012 | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Extension of OASDI 4.2% Tax Rate for Employees |
Congress has granted a two-month extension to the Tax Relief Act of 2010 by passing the Temporary Payroll Tax Cut Continuation Act of 2011. The OASDI tax rate for the first two months of 2012 will be 4.2% for employees and 6.2% for employers. If no changes are passed by Congress, the OASDI tax rate for employees will increase to 6.2% beginning March 1, 2012. However, Congress continues negotiations that would extend the payroll tax cut for the remainder of 2012. Medicare tax rates for employers and employees remain at 1.45%. Office of General Services staff are closely tracking legislation pending in Congress and additional informational circulars will be issued as necessary to communicate any changes for 2012 resulting from Federal Legislation.
The Office of General Services, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
MJ:NTR:kao
DATE: | January 3, 2012 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2011 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Information Pertaining to Employee 2011 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2011 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2011. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 28, 2012.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2011 W-2's that were printed for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with mailing the 2011 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2011. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2's at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2011 W-2's, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2012. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial
within department number and returned to the Office of General Services, Payroll Services.
In cases where the 2011 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2's for years 2006 through 2011, agencies are expected to recommend that employees use the 'W-2 Reissue Request' functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/. A Desk Aid that explains the procedures for requesting a duplicate W-2 from ESS is attached and may be distributed to employees to assist them in this process. Agencies are reminded that employees who retired or terminated from State service on or after September 16, 2011, have access to request duplicate W-2's for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to request a duplicate W-2. After logging into the system and selecting 'W-2 Reissue Request', the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2011, 2010, 2009, 2008, 2007, or 2006) the reissued W-2 is needed. Duplicate W-2's for 2006- 2010 are currently available, and duplicate W-2's for 2011 will be available starting on Wednesday, January 18, 2012. Please note that duplicate W-2's for the year 2006 will no longer be available after mid-April 2012.
The Office of General Services, Payroll Services will continue to provide duplicate W-2's for those employees who cannot access Employee Self Service. Requests for duplicate W-2's received by Payroll Services by noon of each Thursday will be processed Thursday afternoon and mailed the next day. Agencies need to verify the mailing addresses for the W-2's and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2011 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2011 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-2311.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, "Year to Date Balances" report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 23, 2011 and off-cycle checks dated December 27, 2011 and December 30, 2011 are included in the 2011 W-2 amounts.
Attachments:
Attachment A (.xls)
Attachment B (.xls)
Desk Aid (.doc)
MJ:NTR:kao
DATE: | January 3, 2012 | ||
---|---|---|---|
SUBJECT: | 2012 W-2 Production Report Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
2012 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2012 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2012 W-2 production reports are scheduled to be generated:
Friday, February 17, 2012
Friday, March 16, 2012
Friday, April 27, 2012
Friday, May 11, 2012
Friday, June 8, 2012
Friday, July 6, 2012
Friday, August 3, 2012
Friday, August 31, 2012
Friday, September 28, 2012
Friday, October 26, 2012
Friday, November 9, 2012
Wednesday, November 21, 2012
Wednesday, December 5, 2012
Monday, December 10, 2012
Monday, December 17, 2012
Friday, December 21, 2012
Thursday, December 27, 2012 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by the Office of General Services. Regent's institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2's for 2012 are complete, a final KTXPR55 report will be generated for each agency's information and review.
In addition, the Regent's institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
MJ:NTR:kao
DATE: | March 1, 2012 | ||
---|---|---|---|
SUBJECT: | New Organization Dues Deduction Codes ORG902 and ORF902 and Dues Rate Increases for ORG900 and ORG901 | ||
EFFECTIVE DATE: | Payroll Periods Ending February 18, 2012 and March 3, 2012 | ||
CONTACT: |
Sunni Zentner Joyce Dickerson |
(785) 296-7058 (785) 296-3979 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Establish New Organization Dues Deduction Codes ORG902 and ORF902 for Fort Hays State University-American Association of University Professors (FHSU-AAUP) and Dues Rate Increases for ORG900 and ORG901
|
Please be advised of the creation of a third category for organization dues for “associate members” of the Fort Hays State University-American Association of University Professors. Therefore, a new organization dues deduction code (ORG902) and a corresponding fee deduction code (ORF902) will be added in SHARP, effective with the payroll period beginning February 19, 2012 and ending March 3, 2012, paid March 16, 2012 to administer membership dues deductions for participating employees. Currently, organization dues must be entered into employee general deduction data in SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code.
The bi-weekly deduction amount will be $11.94 for ORG902 and $.06 for ORF902 for total membership dues of $12.00 per bi-weekly payroll period. Also, existing organization dues deduction codes ORG900 and ORG901 are increasing effective with the payroll period beginning February 5, 2012 and ending February 18, 2012, paid March 2, 2012. The bi-weekly deduction amount will be $8.94 for ORG900 and $.06 for ORF900 for total membership dues of $9.00 per bi-weekly payroll period. The bi-weekly deduction amount will be $13.94 for ORG901 and $.06 for ORF901 for total membership dues of $14.00 per bi-weekly payroll period.
Please note that the new contact at FHSU-AAUP is Dr. Win Jordan, Fort Hays State University, 600 Park Street, Hays, Kansas 67601.
The Office of General Services, Payroll Systems Team is responsible for adding the new deduction codes and making the necessary updates in the SHARP system. Regent’s institutions should ensure that the addition of the listed deduction codes and necessary updates are reflected in their individual systems effective February 18, 2012.
MJ:NTR:ewb
DATE: | March 13, 2012 | ||
---|---|---|---|
SUBJECT: | Employer KPERS Death and Disability Insurance Contributions Moratorium | ||
EFFECTIVE DATE: | April 1, 2012 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2012 to June 30, 2012
|
||
|
As a result of Senate Sub for HB 2014, passed in the 2011 legislative session, a moratorium that suspends employer contributions for KPERS Death and Disability Insurance is being implemented from April 1, 2012 to June 30, 2012. The Office of General Services will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods that have an original check issue date on and after April 13, 2012. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning March 18, 2012 and ending March 31, 2012, paid April 13, 2012. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after April 1, 2012 for pay period end dates prior to March 31, 2012 will continue to have the contributions collected and remitted. Refer to Informational Circular 11-P-025 at the following link FY 2011to review the dates the previous moratorium was in effect for 2011. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after March 18, 2012, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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 require the "employee" to remit the required contribution while on leave without pay.
The Office of General Services, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
MJ:NTR:ccl
DATE: | March 21, 2012 | ||
---|---|---|---|
SUBJECT: | Continuation of the Extension of OASDI 4.2% Tax Rate for Employees | ||
EFFECTIVE DATE: | March 1, 2012 | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Continuation of the Extension of OASDI 4.2% Tax Rate for Employees
|
President Obama has signed the Middle Class Tax Relief and Job Creation Act of 2012 which extends the employee OASDI tax rate reduction for the remaining ten months of 2012. The OASDI tax rate will be 4.2% for employees and 6.2% for employers for the remainder of 2012. If no further changes are passed by Congress, the OASDI tax rate for employees will increase to 6.2% beginning January 1, 2013. Medicare tax rates for employers and employees remain at 1.45%.
The Office of General Services, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
MJ:NTR:ewb
DATE: | April 24, 2012 | ||
---|---|---|---|
SUBJECT: | New Organization Dues Deduction Codes ORG165 and ORF165 | ||
EFFECTIVE DATE: | Payroll Period Ending May12, 2012 | ||
CONTACT: |
Sunni Zentner Joyce Dickerson |
(785) 296-7058 (785) 296-3979
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Establish New Organization Dues Deduction Codes ORG165 and ORF165 for Fraternal Order of Police KS Lodge #64
|
Please be advised of the creation of a second category for organization dues for an optional program offered to FOP members only through the FOP Grand Lodge of the Fraternal Order of Police KS Lodge #64. Therefore, a new organization dues deduction code (ORG165) and a corresponding fee deduction code (ORF165) will be added in SHARP, effective with the payroll period beginning April 29, 2012 and ending May 12, 2012, paid May 25, 2012 to administer membership dues deductions for participating employees. Currently, organization dues must be entered into employee general deduction data in SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code.
The bi-weekly deduction amount will be $20.94 for ORG165 and $.06 for ORF165 for total membership dues of $21.00 per bi-weekly payroll period.
The Office of General Services, Payroll Systems Team is responsible for making this update in the SHARP system. Regent’s institutions are responsible for ensuring this update is reflected in their individual systems and is effective for paychecks issued on or after May 25, 2012. The Office of General Services, Reconciliation and Remittance team will be responsible for the remittance of the deductions to FOP Lodge #64.
MJ:NTR:ewb
DATE: | May 3, 2012 | ||
---|---|---|---|
SUBJECT: | KPAYGL5C File Available For All Agencies | ||
EFFECTIVE DATE: | May17, 2012 | ||
CONTACT: |
Sunni Zentner Lisa Kraus |
(785) 296-7058 (785) 296-3699
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
KPAYGL5C File Available For All Agencies in a CSV Version Format-File Layout Attached
|
The Office of General Services, Payroll Services, is pleased to announce that the KPAYGL5C file will be available effective May 17, 2012 for all agencies to download from their MVS directory using CoreFTP. Step-by-step instructions regarding the download and use of the KPAYGL5C file are attached to this circular and can also be found at the Office of General Services, Payroll Procedures and Forms webpage located at:
As a reminder, the KPAYGL5C is a file that contains information regarding the accounting transactions created in SHARP that corresponds to every paycheck funded by the receiving agency. Previously, the KPAYGL5C was available to selected agencies using a flat file format. Effective May 17, 2012, the KPAYGL5C will be available to all agencies using a CSV (comma delimited) format. The CSV version file layout is attached to this circular. Agencies who were receiving the KPAYGL5C prior to May 17, 2012 will continue to receive it in their current format. Any agency currently receiving the flat file format can switch solely to the CSV version upon request to the OGS contacts listed above.
The CSV version of the KPAYGL5C file is easy to open and use in Excel or a similar spreadsheet application. Column dividers are inserted automatically and the top row of the file contains column labels for each data element. The file contains a subset of the data fields from the payroll accounting table and includes expenditure accounting transactions only. The file lists the detail rows for the payroll journals that are summarized by matching chartfields and sent to SMART. The Journal IDs that appear on the detail rows are the same Journal IDs that are processed in SMART for your agency payroll. If, due to journal edit errors or budget errors, funding has to be changed in SMART after the original payroll journal has been generated, these changes are not reflected on the KPAYGL5C.
The KPAYGL5C file is generated twice per pay period. The first file includes only on-cycle paycheck information and is usually generated the Saturday following the end of the pay period. The first file does not include Journal ID information since the file is created prior to sending the data to SMART. Several agencies use this first file to get total expenditures of federal funds in order to request federal draw-downs. The second file for the pay period is usually generated the Wednesday evening following pay day. This file is cumulative and contains the on-cycle as well as off-cycles A, B and C data including the Journal ID information. Please note that holidays could slightly alter the KPAYGL5C processing schedule.
Agencies should accumulate all KPAYGL5C files for the fiscal year in a secure location to assist with fiscal year-to-date budget and reporting information. As a reminder, the KPAYGL5C file should be downloaded within 30 days of the date the file is generated. The file will be deleted from CoreFTP after 30 days. The data on the KPAYGL5C can also be filtered by various data fields, such as Project ID to assist with special reporting needs associated with a project or grant. The KPAYGL5C provides the same data as the KPAYWAGE report in order to obtain wage and fringe information by position number for a particular program code or funding source. The KPAYWAGE report will be discontinued in February, 2013 with the implementation of PeopleSoft 9.1. Agencies are strongly encouraged to begin using the KPAYGL5C file during this time of transition, in order to obtain the wage and fringe information required for reporting purposes.
Agencies can obtain more information on downloading the KPAYGL5C file and some suggested tips on its use during a presentation at the upcoming ASTRA meeting held in Topeka on May 17, 2012. Any questions regarding the KPAYGL5C file should be directed to the OGS contacts listed at the top of this informational circular.
Attachments
KPAYGL5C CSV Version File Layout xls
KPAYGL5C Download to Excel Procedures docx
MJ:NTR:ewb
DATE: |
May 15, 2012 |
||
---|---|---|---|
SUBJECT: |
Fiscal Year End Payroll Processing for FY 2012 |
||
EFFECTIVE DATE: |
Immediately |
||
CONTACT: |
Joyce Dickerson |
(785) 296-3979
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Summary of Fiscal Year End Payroll Processing
|
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2013 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 9, 2012 will use fiscal year 2012 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 9, 2012 will use fiscal year 2013 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run C off-cycle (scheduled for June 25, 2012, paid June 28, 2012) for the pay period ending June 9, 2012 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2012 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 17, 2012 and should be completed by Monday morning, June 18, 2012. In that process, a new row will be added to the Department Budget tables with an effective date of June 10, 2012 (beginning date of the first on-cycle payroll charged to FY2013). The Budget End Date will be June 9, 2013. Agencies should not enter any rows with an effective date greater than or equal to June 10, 2012 until after the FY2013 insert has been completed. When adding new rows for FY2013, agencies should verify that June 9, 2013 was used as the Budget End Date for FY2013.
GHI Adjustments
As of July 1, 2012, NO GHI adjustments can be processed for any pay period prior to the December 25, 2010 pay period end date, which was the beginning of contract year 2011. Contact Brenda Vaughn (785) 296-3147 bvaughn@kdheks.gov or Lea Weishaar (785) 296-0611LWeishaar@kdheks.gov at Kansas Dept of Health & Environment, Division of Health Care Finance, State Employee Health Plan about any event maintenance changes that may affect claims processing for contract year 2010 or prior.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally 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 on-cycle paycheck for the period and will require special handling.
-
Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
MJ:NTR:ewb
DATE: | June 1, 2012 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage – FY2013 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 10, 2012 and Ending June 23, 2012, Paid July 6, 2012 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Parking Fee Increase - Curtis Building Garage – FY2013
|
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2013. To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012:
Deduction Code | New bi-weekly rate for pped 6/23/12 |
---|---|
PKT08B |
25.82 |
PPKT08 | 25.82 |
PKAD05 (admin fee) | 1.98 ($25.82 * .0765) |
Employees with Attorney General who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code | New bi-weekly rate for pped 6/23/12 |
---|---|
PKT10B | 12.91 |
PPKT10 |
12.91 |
PKAD07 (admin fee) | 0.99 ($12.91 * .0765) |
The parking rates for Secretary of State employees are listed in Group 3 below and do not change:
Deduction Code | Bi-weekly rate for pped 6/23/12 |
---|---|
PKT09B | 9.23 |
PPKT09 | 9.23 |
PKAD06 (admin fee) | 0.71 ($9.23 * .0765) |
The Office of General Services, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
MJ:NTR:ccl
DATE: | June 4, 2012 | ||
---|---|---|---|
SUBJECT: | Clarification of KPERS Policy Regarding Worker’s Comp/GTL | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Clarification of KPERS Policy Regarding Worker’s Comp/GTL and KPERS Eligibility
|
In the fall of 2010, KPERS issued a policy requiring a member on workers compensation to receive at least 50% of full pay to be KPERS eligible. The policy was handed out at the Designated Agent (DA) workshops in October, 2010 and is included in the 2011 Fall DA workshop (page 65) of the KPERS website located at the following link: http://www.kpers.org/daworkshop_statepresentation.pdf.
Per clarification from KPERS, any individual who does not receive at least 50% of their regular bi-weekly rate of pay from a combination of regular, vacation, and sick leave and who has been off the payroll for ten days or more is no longer considered as being in a KPERS eligible position. For employees in this situation, agencies should:
-
- Stop KPERS deductions for the employee with an effective date of the first day of the first pay period after the employee has ceased to receive 50% of their regular bi-weekly rate
- Stop GTL deductions for the employee with the same effective date as the KPERS deduction
- Complete the KPERS-60 Employer’s Report of Disability located at http://www.kpers.org/forms/k60.pdf in order to ensure continued group-term life insurance coverage for the employee while they are on short-term disability
Please ensure all steps above are completed as agencies have been inconsistent in stopping the GTL deductions which can have an impact on an employee’s calculated amount for taxable group life insurance.
Questions regarding KPERS eligibility may be directed to KPERS at 1-888-275-5737 or in Topeka at 785-296-6166.
MJ:NTR:ldk
DATE: | June 15, 2012 | ||
---|---|---|---|
SUBJECT: | Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium | ||
EFFECTIVE DATE: | July 1, 2012 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012 |
||
|
Senate Sub for HB 2014, passed in the 2011 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2012 until June 30, 2012. The 2012 moratorium will expire on July 1, 2012. As a result, the Office of General Services, Payroll Services will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012.
House Sub for SB 294, passed in the 2012 legislative session, calls for an additional moratorium between April 1, 2013 and June 30, 2013. Another informational circular will be issued closer to the implementation date of the 2013 moratorium on April 1, 2013 to remind agencies to suspend employer KPERS Death and Disability Insurance contributions.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after July 1, 2012 for pay periods ending on and between April 3, 2010 and June 12, 2010, on and between March 19, 2011 and June 11, 2011 and on and between March 31, 2012 and June 9, 2012 will continue to NOT have the contributions collected and remitted.
The Office of General Services, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
MJ:NTR:ewb
DATE: | June 21, 2012 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2013 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 10, 2012; Ending June 23, 2012; Paid July 6, 2012 |
||
CONTACT: |
Kathy Ogle |
(785) 296-2290
|
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Fiscal Year 2013-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 2013. The fiscal year 2013 rates will become effective with the on-cycle payroll period beginning June 10, 2012, ending June 23, 2012 and paid July 6, 2012. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2012.
For Fiscal Year 2013, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). Due to the end of the moratorium implemented from April 1, 2012 to June 30, 2012, the Office of General Services will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions effective with the pay period beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012. However, House Sub. for SB 294 calls for an additional moratorium between April 1, 2013 and June 30, 2013. Collection of the employer’s contribution to KPERS Death and Disability Insurance will again be suspended at that time.
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 April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; between April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; and between April 1, 2012 and June 30, 2012.
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 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2013, employer rates are 9.55% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 13.55%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Office of General Services, 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.
MJ:NTR:kao
Attachment A xls
Attachment B xls
Attachment C xls
DATE: | June 22, 2012 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2012 | ||
CONTACT: |
Jennifer Holthaus Joyce Dickerson |
(785) 368-6313 (785) 296-3979 |
|
APPROVAL: |
Nancy Ruoff (Original Signature on File) |
||
SUMMARY: |
Annual review of housing, food service and other employee
|
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Office of General Services. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2013 will require entry into the SHARP v8.9 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2013 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 25, 2012 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 23, 2012 (paychecks dated July 6, 2012).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment DA-171 pdf
MJ:NTR:ewb
DATE: | July 9, 2010 | ||
---|---|---|---|
SUBJECT: |
Addition of New Parking Codes for Centre City Garage |
||
EFFECTIVE DATE: | Payroll Period Beginning June 13, 2010 and Ending June 26, 2010, Paid July 9, 2010 | ||
CONTACT: |
Cindy Lo |
(785) 296-2290 |
|
APPROVAL: | |||
SUMMARY: |
Addition of New Parking Codes for Centre City Garage at 9th and Kansas |
Pursuant to an agreement entered into by the Kansas Technology Enterprise Corp (KTEC) and the Department of Administration for parking in the Centre City Garage, new parking deduction codes APKA64 (after tax), PPKA64 (before tax), and PKAD17 (admin fee) were added to SHARP. Employees enrolled in parking codes APKA64 and PPKA64 will have a bi-weekly payroll parking deduction of $3.58. Employees enrolled in parking deduction code PPKA64 will also need to be enrolled in the new parking administrative fee code – PKAD17. Parking code PKAD17 will result in an employer bi-weekly payroll contribution of $0.27. These parking codes are effective with the pay period beginning June 13, 2010, ending June 26, 2010, and paid July 9, 2010.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
KEO:NTR:ccl
DATE: | July 12, 2010 | ||
---|---|---|---|
SUBJECT: |
Reporting and Remittance for Basic Life and Disability Insurance Coverage During Leave Without Pay |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Abby Moore |
(785) 296-2133 |
|
KPERS CONTACT: | Amy Whitmer | (785) 296-7901 | awhitmer@kpers.org |
APPROVAL: | |||
SUMMARY: | Reporting and Remittance Requirements to Facilitate Employee Payments for Basic Life and Disability Insurance Coverage During Leave Without Pay Status |
With the implementation of SMART, changes are being made for the reporting and remittance of payments for basic life and disability insurance coverage for Board of Regent employee’s on leave without pay pursuant to K.S.A. 74-4927a(5).
These changes shall be effective immediately for the pay period beginning June13, 2010 and ending June 26, 2010, paid July 9, 2010.
Regent institutions will submit the detailed information for these transactions in the following format directly to KPERS by email or fax to Amy Whitmer, awhitmer@kpers.org or fax 785-296-6057.
Agency | SSN | Last Name, First Name | Date of Coverage | Contribution |
---|---|---|---|---|
XXX |
XXX-XX-XXXX |
XXXXXXXXXXXX,XXXXXXXXXX |
MM/DD/YYYY to MM/DD/YYYY |
$ XXX.XX |
XXX |
XXX-XX-XXXX |
XXXXXXXXXXXX,XXXXXXXXXX |
MM/DD/YYYY to MM/DD/YYYY |
$ XXX.XX |
Regent institutions shall remit such employee contributions directly to KPERS via SMART interfund processing.
KEO:NTR:nlh
DATE: | July 30, 2010 | |||
---|---|---|---|---|
SUBJECT: |
DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel |
|||
EFFECTIVE DATE: | Immediately | |||
CONTACT: | SHaRP- |
Carol Beck |
(785) 296-2002 |
|
SMART- | Randy Kennedy | (785) 296-2125 | Randy.Kennedy @da.ks.gov | |
APPROVAL: | ||||
SUMMARY: | Issuance of combined DA-184 Form for Authorization for Direct Deposit of Employee Pay and/or Employee Travel |
The updated DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel is now available at http://www.da.ks.gov/ar/pm/forms/default.htm.
Agencies are encouraged to utilize the new combined form and to develop the appropriate business process flow within their agency to correctly route the information provided by an employee on the DA-184 form to all necessary parties for data entry and agency record-keeping. Direct deposit of employee payroll will be entered in the Statewide Human Resource and Payroll system and direct deposit of employee travel and expense is entered into the Statewide Management, Accounting, and Reporting Tool Travel and Expense module.
Please note the following:
- An employee may only select one account for SMART (travel and expense) and 100% of all travel and expense reimbursements will be deposited to that account.
- An employee may select up to a maximum of nine accounts for SHARP (employee payroll) and identify the account priority and the percentage or amount of net pay that is distributed to each account.
- The “International ACH Bank” checkbox is intended to be selected if the entire amount of the direct deposit to a specific account may result in the transfer of funds to a financial agency outside the U.S. The functionality to support the International ACH requirements is not yet in place so agencies should refrain from using this checkbox at this time. Additional instructions will be released when the necessary programming changes are made to implement International ACH payments.
KEO:nr
DATE: | August 17, 2010 | ||
---|---|---|---|
SUBJECT: |
Addition of New Earnings Code S16 due to FOP Agreement |
||
EFFECTIVE DATE: | August 8, 2010 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Addition of New Earnings Code S16 due to Memorandum of Agreement between the State of Kansas and the Fraternal Order of Police Lodge No. 64 |
The Memorandum of Agreement, Article 25, between the State of Kansas Department of Corrections and the Fraternal Order of Police Lodge No. 64 signed in June 2010 stipulates that if Parole Duty Officers respond to calls after regularly scheduled work hours, weekends and holidays in accordance to departmental policy IMPP 14-147 – Parole Duty Officer, duty officer hours shall be incurred and compensated at a rate of $1.25/hr for every hour beyond regularly scheduled work hours they are designated as duty officer. As a result of the agreement, earnings code S16 has been added to SHARP effective August 8, 2010 to administer the duty officer pay:
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
S16 | Duty Officer Pay-FOP-$1.25 | Duty Officer Pay FOP | August 8, 2010 |
The S16 earning code is only available for use by Department of Corrections.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these new earnings codes in the SHARP system. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems.
KEO:NTR:ccl
DATE: | August 20, 2010 | ||
---|---|---|---|
SUBJECT: |
Implementation of Direct Deposit and Paycards Policy |
||
EFFECTIVE DATE: | Immediately (Full Implementation Deadline: Sept. 24, 2010) | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
Information for Implementation of Direct Deposit or Paycard method and Availability of Employee Paycard Presentations |
K.S.A. 44-314 provides the authority for employers in the State of Kansas to designate the method by which employees receive wages including electing to pay wages only by electronic funds transfer or deposit to an automated clearinghouse member financial institution account designated by the employee. An employer may elect to pay wages in this manner provided that the employer offers an alternative payment method as a default option, such as a payroll card, for employees who fail to designate a financial institution account for electronic funds transfer or deposit.
For payroll purposes, employees who currently receive a paper paycheck must be transitioned to either traditional direct deposit or a Skylight paycard no later than Sept. 24, 2010. All active and new employees who do not elect to have their payroll directly deposited to a traditional bank account will be required to establish a paycard account. Information concerning this new policy was initially announced on May 21, 2010.
Agency Paper Paycheck Report
To assist with this transition period, a new report, the KPAY208 Paper Paycheck Report is available each pay cycle in the MVS directory for agencies that have employees with paper paychecks. The report is available on the Monday prior to each paydate to identify all employees currently in an agency who receive a paper paycheck for all or a portion of their net pay. Agency personnel are encouraged to download and utilize this report to communicate the new policy and options for electronic payroll to those employees currently receiving paper paychecks.
DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel
The updated DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel is now available here. Please see Informational Circular 11-P-003 for more information regarding this new combined form.
Skylight Paycard
The Department of Administration has renewed its partnership with Skylight Financial, Inc. (associated with U.S. Bank) to provide a Skylight paycard to employees who do not elect to have their payroll directly deposited to a checking or savings account. The Skylight paycard is an FDIC insured ATM/debit-based bank account where pay and other deposits, such as travel and expense reimbursements, can be made.
Employees can withdraw 100% of their payroll net pay from the paycard by a teller transaction at any VISA member bank by presenting their paycard and one form of picture id. Skylight has provided the attached VISA Bank
Teller Service handout that can be provided to employees if they experience any issues with completing a teller transaction for the full amount of their net pay. There is a daily limit of $2,000 for ATM withdrawals. The daily limit for POS transactions or cash withdrawal via a VISA-member bank teller transaction is $7,500 effective Aug. 25, 2010.
Agency Human Resource/Payroll professionals participated in Skylight Training in June and Skylight Paycard Instant Issue Packs have been issued to all requesting agencies. Any agency that requires additional training information or that did not initially request Skylight Paycard Instant Issue Packs and now wishes to obtain an inventory of paycards should contact Jennifer Holthaus at (785) 368-6313 or Jennifer.Holthaus@da.ks.gov to obtain further information. Please note that an employee cannot be required to designate a financial institution for direct deposit at which time the paycard becomes the default payroll payment option for the employee.
The new paycard contract provides increased benefits, convenience, and flexibility to employees. As an added benefit, Skylight will be auto-generating a name-embossed paycard for every employee following the first direct deposit to the paycard. This will be mailed to the address on the Skylight account and is at no cost to the employee. In addition, it does not count toward the employee’s one-free-per-year card replacement or upgrade. Employees will need to follow the instructions received with the card to activate the new name-embossed card. Electronic marketing materials are available for distribution to your employees here under the Skylight One section.
Employee Communication
Attached is a sample Memorandum to Employees which can be used by your agency to assist in communicating this change to existing and incoming employees. Information should be provided to all existing employees who appear on the agency KPAY208 report and employees should be encouraged to take the necessary steps as soon as possible to request direct deposit to an existing checking and/or savings account or to sign-up for a payroll paycard.
Employee Paycard Informational Meetings
Payroll Services has scheduled employee informational meetings to provide an overview of direct deposit and the Skylight One paycard. The informational meetings will be available via webcast utilizing dimdim. Registration instructions for the dimdim broadcast are being provided via the SHARP Infolist to agency HR/Payroll personnel. Agencies are encouraged to arrange an agency meeting location, convenient for their employees, at which the webcast can be broadcast/projected or to provide the registration instructions to employees who require remote attendance. Employees should be encouraged to attend at the agency location or in person on the following dates:
Wed., Aug. 25 | 1:30pm – 2:30pm | Rm 106 | Landon State Office Building, Topeka |
---|---|---|---|
Thurs., Sept. 9 | 10:00am – 11:00am | Rm 106 | Landon State Office Building, Topeka |
No Exceptions
No exceptions will be granted for payroll payments to new or existing, active employees. The implementation of this policy will result in an estimated $250,000 annual savings for the State of Kansas. Special awards or payments requiring payroll processing for active or retiring employees should be paid to the employee via direct deposit or paycard.
Payroll payments required to be processed through the payroll system for terminated employees for whom direct deposit or paycard information cannot be confirmed may be made via paper paycheck, but only upon approval from the Director of Accounts and Reports.
Attachments
Memo to Employees
VISA Bankteller
KEO:nr
DATE: | August 30, 2010 | ||
---|---|---|---|
SUBJECT: |
Change in Organization Dues Deduction for Pittsburg State |
||
EFFECTIVE DATE: | Payroll Period Ending September 4, 2010 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $28.35 to $28.65 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 22, 2010 and ending September 4, 2010, paid September 17, 2010.
Currently, organization dues must be entered into SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code. In this case, the new rate for deduction code ORG030 will increase from $28.29 to $28.59 and the fee (ORF030) will remain at $.06 (for a total of $28.65 per biweekly payroll period).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 17, 2010.
KEO:NTR:ccl
DATE: | September 10, 2010 | ||
---|---|---|---|
SUBJECT: |
Change in Organization Dues Deduction Amounts |
||
EFFECTIVE DATE: | Payroll Period Ending September 18, 2010 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the dues structure (pay ranges) and the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 5, 2010 and ending September 18, 2010, paid October 1, 2010 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 |
$ 13.99 or Less |
$ 1119.20 or Less |
$ 9.68 |
ORG002 |
$ 14.00 – 14.99 |
$ 1119.21 – 1199.20 |
$10.68 |
ORG003 |
$ 15.00 – 15.99 |
$ 1199.21 – 1279.20 |
$11.62 |
ORG004 |
$ 16.00 – 16.99 |
$ 1279.21 – 1359.20 |
$12.59 |
ORG005 |
$ 17.00 – 17.99 |
$ 1359.21 – 1439.20 |
$13.56 |
ORG006 |
$ 18.00 or Greater |
$ 1439.21 or Greater |
$14.5 |
Due to the change to the pay ranges to which these deduction codes apply, the Division of Personnel Services (DPS) will review the individual employees with active deductions for the impacted deduction codes. If the employee’s rate of pay requires the movement of the employee to a new deduction code based on the new dues structure, DPS will make the necessary changes to end the existing deduction (both the ORG – dues deduction and ORF – fee deduction) and establish the new deduction codes (both the new ORG – dues deduction and ORF – fee deduction).
Existing deduction rows (ORG/ORF) will be ended with a Deduction End Date of September 5, 2010 and the new deduction rows (ORG/ORF) will be established with an effective date of September 5, 2010. For SHARP agencies, the deduction updates will be completed in SHARP by 6:00 pm on Tuesday, September 21, 2010 in order to be included in the first preliminary on-cycle payroll calculation for the period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after October 1, 2010.
KEO:NTR:ccl
DATE: | September 13, 2010 | ||
---|---|---|---|
SUBJECT: |
SHARP Bi-Weekly Payroll Schedule for 2011 |
||
EFFECTIVE DATE: | Calendar Year 2011 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2011 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2011. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. SHARP Time and Leave agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. SHARP Time and Labor agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Attachments:
Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2011 PDF
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2011 PDF
DATE: | October 18, 2010 | ||
---|---|---|---|
SUBJECT: |
Key Payroll Processing Dates in November 2010 |
||
EFFECTIVE DATE: | November 2010 | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
Payroll processing schedule changes due to the November 2010 holidays. |
Thursday, November 11, 2010 (Veterans' Day), Thursday, November 25, 2010 and Friday, November 26, 2010 (Thanksgiving Holiday) are designated holidays for state service in 2010.
Due to the holidays in November, variations have been made to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Monday, November 1, 2010
The Run C off-cycle for the period ending October 16, 2010 will be processed November 1, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be
dated November 4, 2010.
Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending October 30, 2010 submitted to the Department of Administration for processing by 5:00 PM on November 1, 2010.
Tuesday, November 2, 2010
Paysheets for the on-cycle payroll for the period ending October 30, 2010 will be created on Tuesday, November 2, 2010. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 2, 2010 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending October 30, 2010 will also occur November 2, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.
Wednesday, November 3, 2010
The second on-cycle preliminary pay calculation for the period ending October 30, 2010 will occur November 3, 2010.
Regents’ on-cycle payroll files for the period ending October 30, 2010 are due to the Department of Administration by 4:00 PM on November 3, 2010.
Thursday, November 4, 2010
The third on-cycle preliminary pay calculation for the period ending October 30, 2010 will occur November 4, 2010.
Friday, November 5, 2010
Final pay confirmation for the on-cycle payroll for the period ending October 30, 2010 will occur November 5, 2010. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on November 5, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 5, 2010 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending October 30, 2010 must be received by the Department of Administration by 4:00 PM on November 5, 2010.
Sunday, November 7, 2010
The Regents’ on-cycle files for the period ending October 30, 2010 will be processed.
Monday, November 8, 2010
The Run A off-cycle for the period ending October 30, 2010 will be processed November 8, 2010. Paychecks for the Run A off-cycle will be dated November 12, 2010.
Tuesday, November 9, 2010
Regents’ Run B off-cycle payroll files for the period ending October 30, 2010 must be received by the Department of Administration by 4:00 PM on November 9, 2010 in order to be processed on Wednesday, November 10, 2010.
Wednesday, November 10, 2010
The Run B off-cycle for the period ending October 30, 2010 will be processed November 10, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 15, 2010.
Thursday, November 11, 2010
Veterans' Day Holiday
Friday, November 12, 2010
Payday for the payroll period ending October 30, 2010.
Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 13, 2010 submitted to the Department of Administration for processing by 5:00 PM on November 12, 2010. (These files would normally be due Monday, November 15, 2010.)
Regents’ Run C off-cycle payroll files for the period ending October 30, 2010 must be received by the Department of Administration by 4:00 PM on November 12, 2010.
Monday, November 15, 2010
The Run C off-cycle for the period ending October 30, 2010 will be processed November 15, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 18, 2010.
Paysheets for the on-cycle payroll for the period ending November 13, 2010 will be created on Monday, November 15, 2010. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 15, 2010 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, November 16, 2010.)
The first on-cycle preliminary pay calculation for the period ending November 13, 2010 will also occur November 15, 2010, rather than Tuesday, November 16, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM.on November 15, 2010 in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 13, 2010.
Tuesday, November 16, 2010
The second on-cycle preliminary pay calculation for the period ending November 13, 2010 will occur November 16, 2010.
Regents’ on-cycle payroll files for the period ending November 13, 2010 are due to the Department of Administration by 4:00 PM on November 16, 2010. (These files would normally be due Thursday, November 18, 2010.)
Wednesday, November 17, 2010
Final pay confirmation for the on-cycle payroll for the period ending November 13, 2010 will occur November 17, 2010. (Final pay confirmation would normally occur Friday, November 19, 2010). For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on November 17, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 17, 2010 in order to be reflected in the final paycheck created for the employee.
Thursday, November 18, 2010
The Regents’ on-cycle files for the period ending November 13, 2010 will be processed.
Regents’ Run A off-cycle payroll files for the period ending November 13, 2010 must be received by the Department of Administration by 4:00 PM on November 18, 2010. (These files would normally be due Friday, November 19, 2010.)
Friday, November 19, 2010
The Run A off-cycle for the period ending November 13, 2010 will be processed November 19, 2010. (This off-cycle would normally be scheduled for Monday, November 22, 2010.) Paychecks for the Run A off-cycle will be dated November 24, 2010.
Monday, November 22, 2010
Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 13, 2010 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 24, 2010.)
Tuesday, November 23, 2010
Regents’ Run B off-cycle payroll files for the period ending November 13, 2010 must be received by the Department of Administration by 4:00 PM on November 23, 2010.
Wednesday, November 24, 2010
Payday for the payroll period ending November 13, 2010. (It would normally be Friday, November 26, 2010)
The Run B off-cycle for the period ending November 13, 2010 will be processed November 24, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated December 1, 2010. (Paychecks would normally be dated Monday, November 29, 2010.)
Regents’ Run C off-cycle payroll files for the period ending November 13, 2010 must be received by the Department of Administration by 4:00 PM on November 24, 2010. (These files would normally be due Friday, November 26, 2010.)
Thursday, November 25, 2010
Thanksgiving Holiday
Friday, November 26, 2010
Thanksgiving Holiday
Monday, November 29, 2010
The Run C off-cycle for the period ending November 13, 2010 will be processed November 29, 2010. Paychecks for the Run C off-cycle will be dated December 2, 2010.
Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 27, 2010 submitted to the Department of Administration for processing by 5:00 PM on November 29, 2010.
Tuesday, November 30, 2010
Paysheets for the on-cycle payroll for the period ending November 27, 2010 will be created on Tuesday, November 30, 2010. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 30, 2010 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 27, 2010 will also occur November 30, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.
Attached is a calendar for the month of November 2010, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.state.ks.us/sharp/infolist.htm.
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Attachment pdf
DATE: | October 25, 2010 | ||
---|---|---|---|
SUBJECT: |
Re-Creation of FY11 SHARP Payroll Reports and Interfaces |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: | |||
SUMMARY: |
Re-creation of Corrected KPAYWAGE, KPAY303, KPAYGL5C Payroll Reports and Interfaces for FY11 |
The implementation of the delivered general ledger process required updates to several reports and interfaces generated from the Statewide Human Resource and Payroll (SHARP) system. Reports and interfaces generated on or after June 23, 2010 included the changes.
Initial issues with specific payroll reports and interfaces resulted in immediate corrections and
re-issuance of certain reports and interfaces either Statewide or for specific agencies. The recent identification of issues that impact multiple agencies has resulted in additional programming to correct these errors. The errors have included missing or duplicated data for certain adjustment transactions and incorrect position numbers for employees with multiple positions.
Due to these additional changes, the payroll reports and interfaces listed below will be re-run for all pay period end dates paid in FY11.
It is strongly recommended that agencies discard previous reports and interfaces and download the most current version from the agency MVS directory to provide accurate data for reporting.
- KPAYWAGE: Salary and Wages Breakdown by Classification
- KPAY303: Agency Salary and Expense File by Jobcode
- KPAYGL5C: General Ledger Interface Download (select agencies)
The reports and interfaces will be run in order starting on Oct. 25, 2010 and beginning with the earliest FY11 pay period end date and moving forward to the most recent pay period end date.
The reports and interfaces for several pay period end dates may be recreated on the same day. Agency functional and technical staff should review agency processes to determine if any changes are necessary to accommodate these files. Agencies will have to review the Date/Time stamp on the file or open the file to determine the pay period end date of the data.
Agencies are encouraged to contact Payroll Services if any additional questions or issues are encountered with these reports.
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DATE: | November 5, 2010 | ||
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SUBJECT: |
Addition of New Earnings Codes ORG and ORE due to FOP Agreement |
||
EFFECTIVE DATE: | November 14, 2010 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Addition of New Earnings Codes ORG and ORE due to Memorandum of Agreement between the State of Kansas and the Fraternal Order of Police Lodge No. 64 |
The Memorandum of Agreement, Article 21, between the State of Kansas Department of Corrections and the Fraternal Order of Police Lodge No. 64 signed in June 2010 granted the Lodge representatives statewide up to a total of one hundred and sixty (160) hours per calendar year shared among all eligible employees, which may be taken intermittently, to conduct or participate in the following FOP activities: FOP-related seminars and educational programs; FOP Kansas State Lodge Board meetings; FOP Kansas State Lodge conferences and conventions; National FOP board meetings or conferences and conventions; attend legislative hearings to discuss issues related to collective bargaining and terms and conditions of employment of bargaining unit members; attend Parole regional meetings to discuss membership with Parole staff members.
As a result of the agreement, earnings codes ORG (for Time and Leave non-exempt employees and Time and Labor non-exempt and exempt employees) and ORE (for Time and Leave exempt employees) have been added to SHARP effective November 14, 2010 to administer the organization paid leave hours:
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
ORG |
Leave-Organization | Leave-Org | Nov. 14, 2010 |
ORE |
Leave-Organization Exempt | Leave-Org | Nov. 14, 2010 |
The above earnings codes are only available for use by certain (covered) Department of Corrections FOP Lodge No. 64 parole officer I & II positions. The details of the agreement can be found at http://www.da.ks.gov/ps/subject/labor/docmoa.pdf.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these new earnings codes in the SHARP system
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DATE: | November 9, 2010 | ||
---|---|---|---|
SUBJECT: |
International ACH Transactions (IAT) in SHARP |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
Implementation of IAT Transactions in SHARP |
The functionality for processing new International ACH transactions (IAT) has been completed in SHARP for all non-Regent agencies. Agencies are reminded that new National Automated Clearing House Association (NACHA) rules require the identification of any ACH payment that may result in the transfer of those funds to a financial agency outside the U.S. as an International ACH transaction (IAT). Transactions identified as IAT require additional information to be provided for the transactions to flow through the banking process. However, it is anticipated that very few, if any, State of Kansas payroll transactions will be required to be identified as International ACH transactions. The “International ACH Bank” checkbox is intended to be selected if AND ONLY IF the entire amount of the direct deposit to a specific account may result in the transfer of funds to a financial agency outside the U.S. Otherwise, the “International ACH Bank” checkbox should be left blank on the employee Direct Deposit page in SHARP. Agencies should also confirm with any employee who has checked the ‘International ACH Bank’ box on Form DA-184, Authorization for Direct Deposit of Employee Pay, that the designation is valid before making entries on the Direct Deposit page.
Agencies can refer to Accounts and Reports Informational Circular 10-P-012 for information on where the IAT checkbox is located on the SHARP employee Direct Deposit page.
The final step for full IAT implementation is to complete changes for Regents processing. Changes required to the Regents files to implement the IAT functionality will be released to the Regents in the near future.
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DATE: | November 10, 2010 | ||
---|---|---|---|
SUBJECT: |
New VTSA Roth 403(b) After-Tax Investment Option |
||
EFFECTIVE DATE: | January 1, 2011 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
New Plan Type, Benefit Plans and Deduction Code for Voluntary Tax Sheltered Annuity Roth 403(b) Investment Option |
The Kansas Board of Regents (KBOR) has approved the recommendation to add a Roth 403(b) after-tax investment option as part of the voluntary retirement plan (VTSA). Only Regent university employees as well as employees of the KBOR office (agency 561) will be eligible to participate in the new Roth after-tax option. Eligible employees will have the flexibility to participate in either the current before-tax option, the new after-tax option, or both options concurrently. Employee contributions made under the after-tax investment option will not be reported on the employee’s W-2 per IRS regulations. Seven investment companies who currently offer the before-tax option will also offer the Roth 403(b) after-tax option and are listed in the table below.
To implement the new after-tax option, a new benefit plan type, a new payroll deduction code and new benefit plans will be added to SHARP effective for the payroll period beginning December 12, 2010 and ending December 25, 2010, paid January 7, 2011.
The new Benefit Plan Type, VTSA deduction code and benefit plans are:
PLAN TYPE | DEDUCTION CODE | DESCRIPTION | SHORT DESCRIPTION | BENEFIT PLAN | BENEFIT PLAN DESCRIPTION | INVEST OPTION |
---|---|---|---|---|---|---|
4T |
VTSART |
Voluntary TaxSheltAnnuity -Roth |
VTSAnnRoth |
VTR009 |
VTSA-Roth After-Tax |
009-ING Voluntary |
4T |
VTSART |
Voluntary TaxSheltAnnuity -Roth |
VTSAnnRoth |
VTR321 |
VTSA-Roth After-Tax |
321-Ameriprise Financial Services, Inc |
4T |
VTSART |
Voluntary TaxSheltAnnuity -Roth |
VTSAnnRoth |
VTR413 |
VTSA-Roth After-Tax |
413-Lincoln Investment Planning, Inc |
4T |
VTSART |
Voluntary TaxSheltAnnuity -Roth |
VTSAnnRoth |
VTR416 |
VTSA-Roth After-Tax |
416-Lincoln National Life Ins Co |
4T |
VTSART |
Voluntary TaxSheltAnnuity -Roth |
VTSAnnRoth |
VTR655 |
VTSA-Roth After-Tax |
655-Security Benefit Life Ins Co |
4T |
VTSART |
Voluntary TaxSheltAnnuity -Roth |
VTSAnnRoth |
VTR695 |
VTSA-Roth After-Tax |
695-Teachers Ins Annuity Assoc |
4T |
VTSART |
Voluntary TaxSheltAnnuity -Roth |
VTSAnnRoth |
VTR769 |
VTSA-Roth After-Tax |
769-AIG Variable Annuity Life Ins Co |
The Department of Administration is responsible for making the necessary updates to the SHARP payroll system and for remitting these new VTSART payroll deductions for employees of the KBOR office (agency 561). Regents’ institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above and for remitting these new VTSART payroll deductions for their impacted employees.
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DATE: | November 12, 2010 | ||
---|---|---|---|
SUBJECT: |
Optional Group Life Insurance Rate Changes |
||
EFFECTIVE DATE: | January 1, 2011 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Optional Group Life Insurance Rate Changes |
Please note that effective January 1, 2011 the Optional Group Life Insurance rates are changing as follows:
Age at the Beginningof the Calendar Year | Monthly Premium per $1,000 |
---|---|
Under 25 |
$0.05 (no change) |
25-29 |
$0.05 |
30-34 |
$0.07 |
35-39 |
$0.08 |
40-44 |
$0.09 |
45-49 |
$0.13 |
50-54 |
$0.19 |
55-59 |
$0.36 |
60-64 |
$0.55 |
65-69 |
$1.06 |
70-74 |
$1.71 |
75 and older |
$1.85 |
An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available is $250,000.00. The age calculation will continue to be based on the employee’s attained age as of January 1st of the current calendar year.
The new rates are effective with coverage for the month of January 2011. Therefore, the January 21, 2011 paycheck (paycheck issued for the payroll period ending January 8, 2011) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month’s coverage.
The Division of Accounts and Reports, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to January 1, 2011.
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DATE: | November 17, 2010 | ||
---|---|---|---|
SUBJECT: |
Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 11, 2010 and December 25, 2010 |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
Changes to the payroll processing schedule for the payroll periods ending December 11, 2010 and December 25, 2010 due to December 24, 2010 and December 31, 2010 being designated state holidays |
As a result of Governor Parkinson declaring Friday, December 24, 2010 and Friday, December 31, 2010 as state holidays, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 11, 2010 and December 25, 2010:
Friday, December 10, 2010
Payday for the payroll period ending November 27, 2010.
Monday, December 13, 2010
The Run 'C' off-cycle for the payroll period ending November 27, 2010 continues to be scheduled for December 13, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, December 16, 2010.
Tuesday, December 14, 2010
Paysheets for the on-cycle payroll for the period ending December 11, 2010 will be created as usual on Tuesday, December 14, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 14, 2010 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 11, 2010 will also occur December 14, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.
Wednesday, December 15, 2010
The second on-cycle preliminary pay calculation for the period ending December 11, 2010 will occur December 15, 2010.
Regents’ on-cycle payroll files for the period ending December 11, 2010 are due to the Department of Administration by 4:00 PM on December 15, 2010. (These files would normally be due Thursday, December 16, 2010.)
Thursday, December 16, 2010
The third on-cycle preliminary pay calculation for the period ending December 11, 2010 will occur December 16, 2010.
Friday, December 17, 2010
Final pay confirmation for the on-cycle payroll for the period ending December 11, 2010 will occur December 17, 2010. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on December 17, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on December 17, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Thursday, December 23, 2010. (It would normally be Friday, December 24, 2010.)
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 11, 2010 are due to the Department of Administration by 4:00 p.m. on December 17, 2010.
Sunday, December 19, 2010
The Regents’ on-cycle files for the period ending December 11, 2010 will be processed.
Monday, December 20, 2010
The Run ‘A’ off-cycle for the period ending December 11, 2010 will be processed December 20, 2010. SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will be dated Thursday, December 23, 2010.
Tuesday, December 21, 2010
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 11, 2010 must be received by the Department of Administration by 4:00 pm. on December 21, 2010 in order to be processed on Wednesday, December 22, 2010.
Wednesday, December 22, 2010
The Run 'B' off-cycle for the payroll period ending December 11, 2010 continues to be scheduled for December 22, 2010. The check issue date for the Run 'B' off-cycle will remain Monday, December 27, 2010.
Thursday, December 23, 2010
Payday for the payroll period ending December 11, 2010. (It would normally be Friday, December 24, 2010)
Friday, December 24, 2010
Christmas Holiday
Monday, December 27, 2010
The Run 'C' off-cycle for the payroll period ending December 11, 2010 continues to be scheduled for December 27, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, December 30, 2010.
Interface agencies must have time and leave files for the period ending December 25, 2010 submitted to the Department of Administration for processing by 5:00 p.m. on December 27, 2010.
Paysheets for the on-cycle payroll for the period ending December 25, 2010 will be created on Monday, December 27, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 27, 2010 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, December 28, 2010.)
The first on-cycle preliminary pay calculation for the period ending December 25, 2010 will also occur December 27, 2010, rather than Tuesday, December 28, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.
Tuesday, December 28, 2010
The 2nd on-cycle preliminary pay calculation for the period ending December 25, 2010 will occur December 28, 2010.
Wednesday, December 29, 2010
The 3rd on-cycle preliminary pay calculation for the period ending December 25, 2010 will occur December 29, 2010.
Regents’ on-cycle payroll files for the period ending December 25, 2010 are due to the Department of Administration by 4:00 PM on December 29, 2010. (These files would normally be due Thursday, December 30, 2010.)
Thursday, December 30, 2010
Final pay confirmation for the on-cycle payroll for the period ending December 25, 2010 will occur December 30, 2010. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on December 30, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on December 30, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 7, 2011.
Friday, December 31, 2010
New Year’s Holiday
Attached is a revised calendar for the month of December 2010 that highlights these payroll processing schedule changes due to the December 24th Christmas holiday and December 31st New Year’s holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment: Calendar pdf
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DATE: | November 23, 2010 | ||
---|---|---|---|
SUBJECT: |
New Organization Dues Deduction Codes ORG065 and ORF065 |
||
EFFECTIVE DATE: | Payroll Period Ending December 25, 2010 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Establish New Organization Dues Deduction Codes ORG065 and ORF065 for Public Employees Association of Kansas, Inc. (PEAK) |
Public Employees Association of Kansas, Inc. (PEAK) has met the requirements of K.S.A. 75-5501(3)(b) for employee membership dues deductions. Therefore, a new organization dues deduction code (ORG065) and a corresponding fee deduction code (ORF065) will be added in SHARP, effective with the payroll period beginning December 12, 2010 and ending December 25, 2010, paid January 7, 2011 to administer membership dues deductions for participating employees. Currently, organization dues must be entered into employee general deduction data in SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code.
The bi-weekly deduction amount will be $9.17 for ORG065 and $.06 for ORF065 for total membership dues of $9.23 per bi-weekly payroll period.
As a reminder, for all non-KOSE employee organizations, agency personnel should receive enrollment/cancel cards from the organization for their employees. Agency personnel should then update SHARP and retain the cards for their files.
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes in the SHARP system. Regent’s institutions should ensure that the addition of the listed deduction codes is reflected in their individual systems effective December 12, 2010.
KEO:NTR:ccl
DATE: | November 29, 2010 | ||
---|---|---|---|
SUBJECT: |
December 2010 Payroll Processing |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
December 2010 Payroll Processing |
As 2010 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2010 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2010 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2011 balances; a corrected W-2 (Form W-2C) for 2010 will not be issued for the employee involved.
FINAL 2010 PAYCHECK
The final on-cycle paychecks for calendar year 2010 will be issued December 23, 2010. Payroll transactions for the December 23, 2010 on-cycle paychecks will be posted to SMART on Tuesday night, December 21, 2010. The final off-cycle paychecks for calendar year 2010 will be issued on December 30, 2010 (generated from the off-cycle processed on December 27, 2010).
PAYCHECK REVERSALS
Any 2010 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 27, 2010 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 27, 2010 will update calendar year 2011 balances and will not be reflected in the employee’s 2010 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 27, 2010 to enter paycheck adjustment requests for any 2010 paychecks. Adjustments processed in the December 27, 2010 off-cycle payroll will be reflected on the employee’s 2010 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2010 paycheck has been previously adjusted and requires additional adjustment, form DA-180, ‘SHARP Paycheck Reversal/Adjustment/Supplemental’, should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 15, 2010.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2010 for inclusion in the December 27, 2010 off-cycle. However, if a large volume of DA-180 forms is received on the December 15, 2010 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2010 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 27, 2010 which are adjusting paychecks issued prior to January 1, 2011 will not result in a W-2C; the adjustment will update the employee’s 2011 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2010 will update the employee’s 2011 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 11, 2010, paid December 23, 2010 are due to the Department of Administration by 4:00 p.m. on December 15, 2010.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2010 Paycheck Reversals
Regent Institutions must submit all transmittals for 2010 paycheck reversals by 4:00 p.m. on Thursday, December 23, 2010 in order to update the employee’s 2010 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2011 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2011 submitted after 4:00 p.m. on December 23, 2010 should default the pay adjust check date to January 1, 2011.
2010 Adjustments and Supplementals
In order to update employee balances for 2010, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Thursday, December 23, 2010. The Run C off-cycle for the pay period ending December 11, 2010 generated on the night of Monday, December 27, 2010 will have a check issue date of December 30, 2010; all activity for this off-cycle will be reflected in the employees’ 2010 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2010 date.
2011 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2011, any adjustments or supplementals submitted after 4:00 p.m. on Thursday, December 23, 2010, will be considered to be 2011 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2011 business, the employee’s 2011 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2011 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2011, agencies should default the pay adjust check date to January 1, 2011).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2011, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2011 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2011 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2010 deadline for the December 27, 2010 Run C’s off-cycle payroll will not be processed until the April 13, 2011 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of April 11, 2011. The deadline for submitting payroll interface files for the April 13, 2011 off-cycle is 4:00 p.m. on Tuesday, April 12, 2011.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2010 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 12, 2010 and December 24, 2010 in order for the last 2010 deduction to be taken on the paycheck issued December 23, 2010. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2011, agencies can enter a new row effective-dated between December 12, 2010 and December 25, 2010 in order for the first deduction for United Way or Community Health Charities for 2011 to be taken on the January 7, 2011 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 11, 2011 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2011.
A new batch process will run the night of December 23, 2010 to establish the fee portion (deduction code UTFXXX) of the 2011 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2011. This process will reduce the 2011 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2011 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 27, 2010 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding
must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2010 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 1, 2010 to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2011. If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2011 W-4s. Employees should submit new paper W-4s by December 15, 2010 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 20, 2010 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2011.
The KPAY320 will be processed the evening of December 20, 2010. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2011 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2011 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.
For any 2011 paper W-4s (for employees claiming exemption from withholding) received between December 20, 2010 and January 1, 2011, agency personnel will need to enter the data with a January 2, 2011 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2011 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change. See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4.
The 2011 Form W-4 will be posted to the Accounts and Reports website as soon as it is available from the IRS.
In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed. The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010. An email notification will be sent December 1, 2010 to all SHARP employees who are receiving advanced EIC payments, informing them of this change. Agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2011. KPAY320, which will process December 20, 2010, will insert a January 1, 2011 effective-dated row in the Employee Tax Data record of employees to whom a W-5 email notification was sent. This record will stop all advance EIC payments for paychecks with a 2011 pay date. Agency payroll/human resource staff should verify that all employees’ advance EIC payments have been stopped.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 20, 2010 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2011. The new tax data row will be dated January 1, 2011. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2011 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.
Deduction Information
All deductions for calendar year 2011 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 2010. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Any arrearage collections made by personal reimbursement that are collected after December 17, 2010, and prior to December 27, 2010, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2010 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2010 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 11, 2010 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 28, 2010 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 28, 2010 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2010. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 29, 2010 and January 3, 2011. W-2 forms will be mailed on or before January 31, 2011. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2010 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.state.ks.us/sharp/infolist.htm.
Attachment: December 2010 Calendar pdf
KEO:NTR:kao
DATE: | December 6, 2010 | ||
---|---|---|---|
SUBJECT: |
Employee Taxability of State-Owned or Leased Vehicles |
||
EFFECTIVE DATE: | January 1, 2011 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2011 |
The Internal Revenue Service (IRS) has increased the standard mileage rate from 50 cents to 51 cents beginning January 1, 2011 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 51 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2011 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,300 for a car (unchanged from 2010), and $16,200 for a passenger truck or van (up from $16,000 in 2010). Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
KEO:NTR:ccl
DATE: | December 17, 2010 | ||
---|---|---|---|
SUBJECT: |
2011 Percentage Method Tables for Federal Tax Withholding |
||
EFFECTIVE DATE: | January 1, 2011 | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2011. |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2011. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2011. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,700 for 2011.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2010 to all SHARP employees who were exempt from federal withholding in 2010. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2011. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2011 W-4s. The IRS has indicated that the 2011 Form W-4 will be available in the near future at the IRS website at http://www.irs.gov/ and will also be available at the Accounts and Reports website at http://www.da.ks.gov/ar/payroll/default.htm once it is released by the IRS. Employees should submit their new W-4s as soon as possible to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 20, 2010 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2011.
The KPAY320 will process during the batch cycle generated on the evening of December 20, 2010. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2011 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’.
In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed. The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010. An email notification was sent December 1, 2010 to all SHARP employees who are receiving advanced EIC payments, informing them of this change. Agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2011. KPAY320 will insert a January 1, 2011 effective-dated row in the Employee Tax Data record of employees to whom a W-5 email notification was sent. This record will stop all advance EIC payments for paychecks with a 2011 pay date. Agency payroll/human resource staff should verify that all employees’ advance EIC payments have been stopped.
For any Form W-4s for 2011 received between December 20, 2010 and January 1, 2011, agency personnel will need to enter the data with a January 2, 2011 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Thursday, December 30, 2010 in order to be reflected in the on-cycle paycheck dated January 7, 2011. Agency Workflow Administrators will also need to change the effective date to January 2, 2011 for any electronic FormsW-4s for 2011 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2010 must file a new 8233 form for calendar year 2011 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 20, 2010 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2011. The new tax data row will be dated January 1, 2011. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2011 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 20, 2010. The report will be available in the agency directory on the MVS on Tuesday, December 21. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
KEO:NTR:ewb
Attachment: Tables for Percentage Method of Withholding pdf
DATE: | December 17, 2010 | ||
---|---|---|---|
SUBJECT: |
Change in Social Security Employee Tax Rate |
||
EFFECTIVE DATE: | January 1, 2011 | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
Social Security Employee Tax Rate Decreases to 4.2% effective January 1, 2011 |
As a result of the passage of the Tax Relief Act of 2010, the employee OASDI tax rate is reduced from 6.2% to 4.2% effective for wages paid in 2011. The employer OASDI tax rate remains at 6.2%. The Social Security wage base for OASDI will continue to be $106,800 for calendar year 2011. Therefore, the maximum OASDI employee contribution for 2011 will be $4,485.60, a $2,136.00 decrease from the 2010 maximum of $6,621.60. There continues to be no limit on wages subject to the Medicare tax in 2011. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $4,485.60 for OASDI and no maximum for Medicare.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
KEO:NTR:ewb
DATE: | December 30, 2010 | ||
---|---|---|---|
SUBJECT: | Submission of Prior Period Adjustments on Form DA-180 | ||
EFFECTIVE DATE: | January 1, 2011 | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Submission of All Prior Period Adjustments on Form DA-180 Due to Social Security Tax Employee Rate Reduction for 2011 |
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid for calendar year 2011. The IRS has released Notice 1036 that contains this lower Social Security withholding rate and related information for implementing the change.
For SHARP agencies, any pay-affecting adjustment processed in 2011 to a check originally issued in 2010 will result in an unintended OASDI refund since the new rate will be applied to the entire gross amount of the original paycheck. To avoid this unintended OASDI impact, all prior year SHARP pay-affecting adjustments requested in 2011 for checks issued in 2010 will need to be submitted for processing to the Division of Account and Reports, Payroll Processing Team on Form DA-180. The ‘Attachment to DA-180’ should accompany the form. Any pay-affecting adjustment entered for a check issued in 2010 will create an error in the off-cycle calculation. Leave adjustments can continue to be made directly to the time sheet with no adverse effects.
Regent’s institutions are responsible for reviewing their adjustment processing to insure that prior year adjustments processed in 2011 do not generate an unintended OASDI adjustment for the entire OASDI gross based on the OASDI employee rate change.
KEO:NTR:kao
DATE: | January 3, 2011 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2010 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Jennifer Holthaus | (785) 368-6313 | jennifer.holthaus@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Information Pertaining to Employee 2010 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2010 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2010. There may be two KTXPR55 reports with a December 30, 2010 date. The one with the later time stamp should be used. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 28, 2011.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2010 W-2's that were printed for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with mailing the 2010 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2010. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2010 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 18, 2011. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial
within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2010 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2005 through 2010, agencies are strongly encouraged to recommend that employees use the ‘W-2 Reissue Request’ functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/. After logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2010, 2009, 2008, 2007, 2006, or 2005) the reissued W-2 is needed. Duplicate W-2’s for 2005 - 2009 are currently available, and duplicate W-2’s for 2010 will be available starting on Wednesday, January 19, 2011. Please note that duplicate W-2’s for the year 2005 will no longer be available after mid-April 2011.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2010 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2010 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-2311.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 23, 2010 and off-cycle checks dated December 27, 2010 and December 30, 2010 are included in the 2010 W-2 amounts.
Attachments:
2010 W-2 Wage and Tax Statement Calculations(xls)
Sample KPAY318.SQR (xls)
KEO:NTR:kao
DATE: | January 3, 2011 | ||
---|---|---|---|
SUBJECT: | 2011 W-2 Production Report Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Jennifer Holthaus | (785) 368-6313 | jennifer.holthaus@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
2011 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2011 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2011 W-2 production reports are scheduled to be generated:
- Friday, February 18, 2011
- Friday, March 18, 2011
- Friday, April 29, 2011
- Friday, May 13, 2011
- Friday, June 10, 2011
- Friday, July 8, 2011
- Friday, August 5, 2011
- Friday, September 2, 2011
- Friday, September 30, 2011
- Friday, October 28, 2011
- Thursday, November 10, 2011
- Wednesday, November 23, 2011
- Wednesday, December 7, 2011
- Monday, December 12, 2011
- Monday, December 19, 2011
- Tuesday, December 27, 2011
- Thursday, December 29, 2011 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by Accounts and Reports. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2011 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
KEO:NTR:kao
DATE: | February 10, 2011 | ||
---|---|---|---|
SUBJECT: | New Organization Dues Deduction Codes ORG066 and ORF066 | ||
EFFECTIVE DATE: | Payroll Period Ending March 5, 2011 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Establish New Organization Dues Deduction Codes ORG066 and ORF066 for Public Employees Association of Kansas, Inc. (PEAK) |
Public Employees Association of Kansas, Inc. (PEAK) has requested that part-time employees have the ability to enroll as a member of PEAK at a dues rate that is less than the current dues rate for a full-time employee. For the purposes of this deduction, a part-time employee is an individual whose employment position has a Full-Time Equivalent rate (FTE) < 1.0.
A new organization dues deduction code (ORG066) and a corresponding fee deduction code (ORF066) will be added in SHARP, effective with the payroll period beginning February 20, 2011 and ending March 5, 2011, paid March 18, 2011 to administer membership dues deductions for participating employees who qualify for the part-time rate. Currently, organization dues must be entered into employee general deduction data in SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code.
The bi-weekly deduction amount will be $4.55 for ORG066 and $.06 for ORF066 for total membership dues of $4.61 per bi-weekly payroll period.
As a reminder, for all non-KOSE employee organizations, agency personnel should receive enrollment/cancel cards from the organization for their employees. For employees enrolling in the Public Employees Association of Kansas, Inc, (PEAK), it is the responsibility of the employing agency to review the employee’s position FTE and assign the appropriate deduction code based on full-time or part-time employment. Agency personnel should then update SHARP and retain the cards for their files.
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes in the SHARP system. Regent’s institutions should ensure that the addition of the listed deduction codes is reflected in their individual systems effective February 20, 2011.
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DATE: | February 21, 2011 | ||
---|---|---|---|
SUBJECT: | Employer KPERS Death and Disability Insurance Contributions Moratorium | ||
EFFECTIVE DATE: | April 1, 2011 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | Cindy.Lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2011 to June 30, 2011 |
S Sub for HB 2219, passed in the 2010 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2010 until June 30, 2010, and then again from April 1, 2011 to June 30, 2011. As a result, the Division of Accounts and Reports will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods that have an original check issue date on and after April 1, 2011. The KPERS Death and Disability Insurance moratorium will commence again effective with the pay period beginning March 6, 2011 and ending March 19, 2011, paid April 1, 2011.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after April 1, 2011 for an original check issue date and pay period that does NOT fall within a moratorium period will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after March 6, 2011, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
KEO:NTR:ccl
DATE: | March 28, 2011 | ||
---|---|---|---|
SUBJECT: | Organization Dues Change for ORG059 | ||
EFFECTIVE DATE: | Payroll Period Ending April 2, 2011 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley @da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Change in Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59 |
The organization dues for members of the Kansas Game Wardens Fraternal Order of Police Lodge #59, ORG059, will be increased from $14.94 to $15.94 per biweekly payroll period. The service fee will remain $0.06 per biweekly payroll period. The new rate will become effective with the payroll period beginning March 20, 2011 and ending April 2, 2011, paid April 15, 2011.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after April 15, 2011.
KEO:NTR:kao
DATE: | April 15, 2011 | ||
---|---|---|---|
SUBJECT: |
Change in KOSE Organization Dues Deduction Amounts |
||
EFFECTIVE DATE: | Payroll Period Ending April 30, 2011 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for KOSE |
The organization dues for members of the Kansas Organization of State Employees (KOSE) will be changing effective with the payroll period beginning April 17, 2011 and ending April 30, 2011, paid May 13, 2011 as follows:
Deduction Code | Hourly Rate of Pay | Bi-weekly Dues Deduction |
---|---|---|
ORG502 | $ 13.99 or Less | $15.08 |
ORG503 | $ 14.00 - $ 14.99 | $15.66 |
ORG504 | $ 15.00 - $ 15.99 | $16.74 |
ORG505 | $ 16.00 - $ 16.99 | $17.82 |
ORG506 | $ 17.00 - $ 17.99 | $18.90 |
ORG507 | $ 18.00 or Greater | $19.98 |
As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG502-507 deduction codes) and the $0.06 service fee (ORF502-507 deduction codes) added together.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KOSE dues deductions. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after May 13, 2011.
KEO:NTR:ewb
DATE: | May 12 , 2011 | ||
---|---|---|---|
SUBJECT: |
Fiscal Year End Payroll Processing for FY 2011 |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2012 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 11, 2011 will use fiscal year 2011 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 11, 2011 will use fiscal year 2012 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run C off-cycle (scheduled for June 27, 2011, paid June 30, 2011) for the pay period ending June 11, 2011 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2011 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 19, 2011 and should be completed by Monday morning, June 20, 2011. In that process, a new row will be added to the Department Budget tables with an effective date of June 12, 2011 (beginning date of the first on-cycle payroll charged to FY2012). The Budget End Date will be June 11, 2012. Agencies should not enter any rows with an effective date greater than or equal to June 12, 2011 until after the FY2012 insert has been completed. When adding new rows for FY2012, agencies should verify that June 11, 2012 was used as the Budget End Date for FY2012.
GHI Adjustments
As of July 1, 2011, NO payroll processing for GHI adjustments should be made for contract year 2009. Contact Brenda Vaughn (785) 296-3226 Brenda.Vaughn@khpa.ks.gov at Kansas Health Policy Authority about any event maintenance changes that may affect claims processing for contract year 2009.
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 SMART INF06 interface files affect the correct fiscal year expenditures.
Reminders
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 payrolls are generally 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 on-cycle paycheck for the period and will require special handling.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
KEO:NTR:ewb
DATE: | June 7, 2011 | ||
---|---|---|---|
SUBJECT: |
Parking Fee Increase - Curtis Building Garage – FY2012 |
||
EFFECTIVE DATE: | Payroll Period Beginning June 12, 2011 and Ending June 25, 2011, Paid July 8, 2011 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
Parking Fee Increase - Curtis Building Garage – FY2012 |
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2012. To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 12, 2011 and ending June 25, 2011, paid July 8, 2011:
Deduction Code (Group 1) | New bi-weekly rate for pped 6/25/11 |
---|---|
PKT08B | 25.32 |
PPKT08 | 25.32 |
PKAD05 (admin fee) | 1.94 ($25.32 * .0765) |
Employees with Attorney General who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code(Group 2) | New bi-weekly rate for pped 6/25/11 |
---|---|
PKT10B | 12.66 |
PPKT10 | 12.66 |
PKAD07 (admin fee) | 0.97 ($12.66 * .0765) |
The parking rates for Secretary of State employees are listed in Group 3 below and do not change:
Deduction Code (Group 3) | Bi-weekly rate for pped 6/25/11 |
---|---|
PKT09B |
9.23 |
PPKT09 |
9.23 |
PKAD06 (admin fee) |
0.71 ($9.23 * .0765) |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
KEO:NTR:ewb
DATE: | June 17, 2011 | ||
---|---|---|---|
SUBJECT: |
Fiscal Year 2012 Payroll Contribution Rates |
||
EFFECTIVE DATE: | Pay Period Beginning June 12, 2011; Ending June 25, 2011; Paid July 8, 2011 |
||
CONTACT: |
Kathy Ogle |
(785) 296-2290 |
|
APPROVAL: | |||
SUMMARY: |
Fiscal Year 2012-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 2012. The fiscal year 2012 rates will become effective with the on-cycle payroll period beginning June 12, 2011, ending June 25, 2011 and paid July 8, 2011. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2011.
For the first nine months of Fiscal Year 2012, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). Due to the end of the moratorium implemented from April 1, 2011 to June 30, 2011, the Division of Accounts and Reports will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions effective with the pay period beginning June 12, 2011 and ending June 25, 2011, paid July 8, 2011. However, Senate Sub for HB 2014 calls for an additional moratorium between April 1, 2012 and June 30, 2012. Collection of the employer’s contribution to KPERS Death and Disability Insurance will again be suspended at that time.
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 April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; between March 1, 2009 and November 30, 2009; between April 1, 2010 and June 30, 2010; and between April 1, 2011 and June 30, 2011.
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 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2012, employer rates are 11.13% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 15.13%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Division of Accounts and Reports, 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.
KEO:NTR:kao
Attachments ABC pdf
DATE: |
June 20, 2011 |
||
---|---|---|---|
SUBJECT: |
Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium |
||
EFFECTIVE DATE: | July 1, 2011 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning June 12, 2011 and ending June 25, 2011, paid July 8, 2011 |
S Sub for HB 2219, passed in the 2010 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2010 until June 30, 2010, and then again from April 1, 2011 to June 30, 2011. The 2011 moratorium will expire on July 1, 2011. As a result, the Division of Accounts and Reports will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning June 12, 2011 and ending June 25, 2011, paid July 8, 2011.
Senate Sub for HB 2014, passed in the 2011 legislative session, calls for an additional moratorium between April 1, 2012 and June 30, 2012. Another informational circular will be issued closer to the implementation date of the 2012 moratorium on April 1, 2012 to remind agencies to suspend employer KPERS Death and Disability Insurance contributions.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after July 1, 2011 for pay periods ending on and between April 3, 2010 and June 12, 2010 and on and between March 19, 2011 and June 11, 2011 will continue to NOT have the contributions collected and remitted.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
KEO:NTR:ewb
DATE: |
June 22, 2011 |
||
---|---|---|---|
SUBJECT: |
Housing, Food Service and Other Employee Maintenance |
||
EFFECTIVE DATE: | July 1, 2011 | ||
CONTACT: |
Jennifer Holthaus Joyce Dickerson |
(785) 368-6313 (785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
Annual review of housing, food service and other employee |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2012 will require entry into the SHARP v8.9 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2012 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 27, 2011 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 25, 2011 (paychecks dated July 8, 2011).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment DA-171 pdf
KEO:NTR:ewb
DATE: |
June 27, 2011 |
||
---|---|---|---|
SUBJECT: |
Employee Taxability of State-Owned or Leased Vehicles |
||
EFFECTIVE DATE: | July 1, 2011 | ||
CONTACT: |
Kathy Ogle |
(785) 296-2290 |
|
APPROVAL: | |||
SUMMARY: |
IRS Changes Cents-Per-Mile Valuation Rule for Final Six Months of |
The Internal Revenue Service (IRS) has increased the standard mileage rate from 51 cents to 55.5 cents beginning July 1, 2011, through December 31, 2011 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 55.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2011 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,300 for a car (unchanged from 2010), and $16,200 for a passenger truck or van (up from $16,000 in 2010). Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
KEO:NTR:kao
DATE: | July 29, 2009 | ||
---|---|---|---|
SUBJECT: | Addition of New ING Voluntary Tax Sheltered Annuity Company Plan | ||
EFFECTIVE DATE: | July 26, 2009 | ||
CONTACT: |
Abby Moore |
(785) 296-2133 |
|
APPROVAL: | |||
SUMMARY: |
Addition of the ING 09 Voluntary Plan |
Payroll Services has been notified that ING is rolling out an enhanced voluntary plan in addition to their current 403b plan (VTSA #024). The new ING 09 Voluntary Plan is available to employees at institutions under the authority of the Kansas State Board of Regents. Each Regents institution should have already received correspondence from ING regarding remittance wire transfers. Non-wire remittances should be mailed to the following address:
ING Life Insurance and Annuity Company
C/O ING Trust
PO Box 31812
Hartford, CT 06150-1812
The current STARS vendor number/suffix of 710294708-01 should be used and VTSA Company number 009 has been assigned in SHARP as the new investment option.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
KEO:NTR:ccl
DATE: | August 25, 2009 | ||
---|---|---|---|
SUBJECT: |
SHARP Bi-Weekly Payroll Schedule for 2010 |
||
EFFECTIVE DATE: | Calendar Year 2010 | ||
A & R CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2010 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2010. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. SHARP agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
The new Statewide Management, Accounting and Reporting Tool (SMART) financial system will be implemented July 1, 2010 as a replacement to the current STARS system. As a result of this implementation, changes to the attached schedules may be required. In that event, another informational circular will be issued in 2010 to identify any necessary changes to these SHARP bi-weekly on-cycle and off-cycle schedules once they have been finalized.
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Attachment: Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2010 (pdf)
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2010 (pdf)
DATE: | September 8, 2009 | ||
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SUBJECT: |
Change in Organization Dues Deduction for Pittsburg State |
||
EFFECTIVE DATE: | Payroll Period Ending September 5, 2009 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
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APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code ‘ORG030’, will change from $27.45 to $28.35 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 23, 2009 and ending September 5, 2009, paid September 18, 2009.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 18, 2009.
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DATE: | October 8, 2009 | ||
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SUBJECT: |
Key Payroll Processing Dates in November 2009 |
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EFFECTIVE DATE: | November 2009 | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
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APPROVAL: | |||
SUMMARY: |
Payroll processing schedule changes due to the November 2009 holidays. |
Wednesday, November 11, 2009 (Veterans' Day), Thursday, November 26, 2009 and Friday, November 27, 2009 (Thanksgiving Holiday) are designated holidays for state service in 2009.
Due to the holidays in November, variations have been made to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Monday, November 2, 2009
The Run C off-cycle for the period ending October 17, 2009 will be processed November 2, 2009. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be
dated November 5, 2009.
Time and leave interface agencies must have time and leave files for the period ending October 31, 2009 submitted to the Department of Administration for processing by 5:00 PM on November 2, 2009.
Tuesday, November 3, 2009
Paysheets for the on-cycle payroll for the period ending October 31, 2009 will be created on Tuesday, November 3, 2009. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 3, 2009 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending October 31, 2009 will also occur November 3, 2009; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM.
Wednesday, November 4, 2009
The second on-cycle preliminary pay calculation for the period ending October 31, 2009 will occur November 4, 2009.
Thursday, November 5, 2009
The third on-cycle preliminary pay calculation for the period ending October 31, 2009 will occur November 5, 2009.
Regents’ on-cycle payroll files for the period ending October 31, 2009 are due to the Department of Administration by 6:00 AM on November 5, 2009.
Friday, November 6, 2009
Final pay confirmation for the on-cycle payroll for the period ending October 31, 2009 will occur November 6, 2009. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 6, 2009 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 6, 2009 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending October 31, 2009 must be received by the Department of Administration by 5:00 PM on November 6, 2009.
Sunday, November 8, 2009
The Regents’ on-cycle files for the period ending October 31, 2009 will be processed.
Monday, November 9, 2009
The Run A off-cycle for the period ending October 31, 2009 will be processed November 9, 2009. Paychecks for the Run A off-cycle will be dated November 13, 2009.
Tuesday, November 10, 2009
Regents’ Run B off-cycle payroll files for the period ending October 31, 2009 must be received by the Department of Administration by 5:00 PM on November 10, 2009 in order to be processed on Thursday, November 12, 2009.
Wednesday, November 11, 2009
Veterans' Day Holiday
Thursday, November 12, 2009
The Run B off-cycle for the period ending October 31, 2009 will be processed November 12, 2009. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 16, 2009.
Friday, November 13, 2009
Payday for the payroll period ending October 31, 2009.
Time and leave interface agencies must have time and leave files for the period ending November 14, 2009 submitted to the Department of Administration for processing by 5:00 PM on November 13, 2009. (These files would normally be due Monday, November 16, 2009.)
Regents’ Run C off-cycle payroll files for the period ending October 31, 2009 must be received by the Department of Administration by 5:00 PM on November 13, 2009.
Monday, November 16, 2009
Paysheets for the on-cycle payroll for the period ending November 14, 2009 will be created on Monday, November 16, 2009. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 16, 2009 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, November 17, 2009.)
The first on-cycle preliminary pay calculation for the period ending November 14, 2009 will also occur November 16, 2009, rather than Tuesday, November 17, 2009; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM November 16, 2009. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 14, 2009.
The Run C off-cycle for the period ending October 31, 2009 will be processed November 16, 2009. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 19, 2009.
Tuesday, November 17, 2009
The second on-cycle preliminary pay calculation for the period ending November 14, 2009 will occur November 17, 2009.
Wednesday, November 18, 2009
Final pay confirmation for the on-cycle payroll for the period ending November 14, 2009 will occur November 18, 2009. (Final pay confirmation would normally occur Friday, November 20, 2009). All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 18, 2009 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 18, 2009 in order to be reflected in the final paycheck created for the employee.
Regents’ on-cycle payroll files for the period ending November 14, 2009 are due to the Department of Administration by 6:00 AM on November 18, 2009. (These files would normally be due Friday, November 20, 2009.)
Thursday, November 19, 2009
The Regents’ on-cycle files for the period ending November 14, 2009 will be processed.
Regents’ Run A off-cycle payroll files for the period ending November 14, 2009 must be received by the Department of Administration by 5:00 PM on November 19, 2009. (These files would normally be due Friday, November 20, 2009.)
Friday, November 20, 2009
The Run A off-cycle for the period ending November 14, 2009 will be processed November 20, 2009. (This off-cycle would normally be scheduled for Monday, November 23, 2009.) Paychecks for the Run A off-cycle will be dated November 25, 2009.
Monday, November 23, 2009
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 14, 2009 will be posted to STARS during Monday night's STARS batch processing cycle. (This process would normally occur Tuesday, November 24, 2009.)
Tuesday, November 24, 2009
Regents’ Run B off-cycle payroll files for the period ending November 14, 2009 must be received by the Department of Administration by 5:00 PM on November 24, 2009.
Wednesday, November 25, 2009
Payday for the payroll period ending November 14, 2009. (It would normally be Friday, November 27, 2009)
The Run B off-cycle for the period ending November 14, 2009 will be processed November 25, 2009. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated December 2, 2009. (Paychecks would normally be dated Monday, November 30, 2009.)
Regents’ Run C off-cycle payroll files for the period ending November 14, 2009 must be received by the Department of Administration by 5:00 PM on November 25, 2009. (These files would normally be due Friday, November 27, 2009.)
Thursday, November 26, 2009
Thanksgiving Holiday
Friday, November 27, 2009
Thanksgiving Holiday
Monday, November 30, 2009
The Run C off-cycle for the period ending November 14, 2009 will be processed November 30, 2009. Paychecks for the Run C off-cycle will be dated December 3, 2009.
Attached is a calendar for the month of November 2009, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.state.ks.us/sharp/infolist.htm .
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Attachment pdf
DATE: | October 12, 2009 | ||
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SUBJECT: |
Addition of Earnings Codes for Leave Advancement |
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EFFECTIVE DATE: | October 18, 2009 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
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APPROVAL: | |||
SUMMARY: |
Addition of Earnings Codes ‘AVD’ and ‘AVE’ |
Executive Order 09-08 establishes a leave advancement policy whereby agency appointing authorities may provide paid leave to employees who have exhausted their own accrued leave not to exceed the amount of hours the employee is regularly scheduled to work in a bi-weekly pay period in order to remain in pay status while staying away from the workplace due to possible infection with the H1N1 flu virus, or for other circumstances where the appointing authority believes the granting of such leave would be in the best interests of the State of Kansas.
To administer the Leave Advancement policy, two new earnings codes will be established in the SHARP system effective October 18, 2009. The following earnings codes are eligible to be used starting with the pay period beginning October 18, 2009 through October 31, 2009 paid November 13, 2009.
Earnings Code | Description | Short Description | Effective Date |
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AVD |
Leave-Advancement |
LveAdvnce |
10/18/2009 |
AVE |
Leave-Advancement Exempt |
LveAdvnce |
10/18/2009 |
AVD should be used for Hourly employees and AVE for Salaried employees. For information on the specific procedures of using these new earnings codes, agencies should refer to the Division of Personnel Bulletin 09-05 found at the following link: http://da.ks.gov/ps/documents/bulletins/default.htm
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these new earnings codes in the SHARP system. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems.
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DATE: | October 26, 2009 | ||
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SUBJECT: |
Establish Organization Dues Deduction for Kansas State Parole Officers FOP Lodge #64 |
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EFFECTIVE DATE: | Payroll Period Ending October 31, 2009 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
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APPROVAL: | |||
SUMMARY: |
Establish Organization Dues for ORG164 |
The Kansas State Parole Officers Fraternal Order of Police Lodge #64 has met the requirements of K.S.A. 75-5501(3)(a) and (b) for employee membership dues deductions. Therefore, a new deduction code, ORG164, is being added in SHARP to accommodate payroll deduction of membership dues to this organization. The deduction for member dues will be $12.50 per bi-weekly payroll period effective with the payroll period beginning October 18, 2009 and ending October 31, 2009, paid November 13, 2009.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this update in the SHARP system. Regent’s institutions are responsible for ensuring this update is reflected in their individual systems and is effective for paychecks issued on or after November 13, 2009. The Division of Accounts and Reports, Reconciliation and Remittance team will be responsible for the remittance of the deductions to FOP Lodge #64.
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DATE: | November 10 , 2009 | ||
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SUBJECT: |
Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 12, 2009 and December 26, 2009 |
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EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
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APPROVAL: | |||
SUMMARY: |
Changes to the payroll processing schedule for the payroll periods ending December 12, 2009 and December 26, 2009 due to December 25, 2009 being designated a state holiday |
As a result of Governor Parkinson declaring Friday, December 25, 2009 as a state holiday for 2009, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 12, 2009 and December 26, 2009:
Friday, December 11, 2009
Payday for the payroll period ending November 28, 2009.
Monday, December 14, 2009
The Run 'C' off-cycle for the payroll period ending November 28, 2009 continues to be scheduled for December 14, 2009. The check issue date for the Run 'C' off-cycle will remain Thursday, December 17, 2009.
Tuesday, December 15, 2009
Paysheets for the on-cycle payroll for the period ending December 12, 2009 will be created as usual on Tuesday, December 15, 2009. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 15, 2009 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending December 12, 2009 will also occur December 15, 2009; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. December 15, 2009.
Wednesday, December 16, 2009
The second on-cycle preliminary pay calculation for the period ending December 12, 2009 will occur December 16, 2009.
Thursday, December 17, 2009
Regents’ on-cycle payroll files for the period ending December 12, 2009 are due to the Department of Administration by 6:00 AM on December 17, 2009. (These files would normally be due Friday, December 18, 2009.)
The third on-cycle preliminary pay calculation for the period ending December 12, 2009 will occur December 17, 2009.
Friday, December 18, 2009
Final pay confirmation for the on-cycle payroll for the period ending December 12, 2009 will occur December 18, 2009. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on December 18, 2009 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on December 18, 2009 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Thursday, December 24, 2009. (It would normally be Friday, December 25, 2009.)
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 12, 2009 are due to the Department of Administration by 5:00 p.m. on December 18, 2009.
Sunday, December 20, 2009
The Regents’ on-cycle files for the period ending December 12, 2009 will be processed.
Monday, December 21, 2009
The Run ‘A’ off-cycle for the period ending December 12, 2009 will be processed December 21, 2009. SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will be dated Thursday, December 24, 2009.
Tuesday, December 22, 2009
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 12, 2009 must be received by the Department of Administration by 5:00 pm. on December 22, 2009 in order to be processed on Wednesday, December 23, 2009.
Wednesday, December 23, 2009
The Run 'B' off-cycle for the payroll period ending December 12, 2009 continues to be scheduled for December 23, 2009. The check issue date for the Run 'B' off-cycle will remain Monday, December 28, 2009.
Thursday, December 24, 2009
Payday for the payroll period ending December 12, 2009. (It would normally be Friday, December 25, 2009)
Friday, December 25, 2009
Christmas Holiday
Monday, December 28, 2009
The Run 'C' off-cycle for the payroll period ending December 12, 2009 continues to be scheduled for December 28, 2009. The check issue date for the Run 'C' off-cycle will remain Thursday, December 31, 2009.
Time and leave interface agencies must have time and leave files for the period ending December 26, 2009 submitted to the Department of Administration for processing by 5:00 p.m. on December 28, 2009.
Paysheets for the on-cycle payroll for the period ending December 26, 2009 will be created on Monday, December 28, 2009. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 28, 2009 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, December 29, 2009.)
The first on-cycle preliminary pay calculation for the period ending December 26, 2009 will also occur December 28, 2009, rather than Tuesday, December 29, 2009; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. December 28, 2009.
Tuesday, December 29, 2009
The 2nd on-cycle preliminary pay calculation for the period ending December 26, 2009 will occur December 29, 2009.
Wednesday, December 30, 2009
The 3rd on-cycle preliminary pay calculation for the period ending December 26, 2009 will occur December 30, 2009.
Thursday, December 31, 2009
Regents’ on-cycle payroll files for the period ending December 26, 2009 are due to the Department of Administration by 6:00 AM on December 31, 2009. (These files would normally be due Friday, January 1, 2010.)
Final pay confirmation for the on-cycle payroll for the period ending December 26, 2009 will occur December 31, 2009. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on December 31, 2009 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on December 31, 2009 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 8, 2010.
Attached is a revised calendar for the month of December 2009 that highlights these payroll processing schedule changes due to the December 25th Christmas holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm .
Attachment: December 2009 calendar pdf
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DATE: | November 13 , 2009 | ||
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SUBJECT: |
Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium |
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EFFECTIVE DATE: | November 30 , 2009 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning November 15, 2009 and ending November 28, 2009, paid December 11, 2009 |
SB219, Section (4)(A), passed in the 2009 legislative session, that extended the suspension of employer contributions for KPERS Death and Disability Insurance will expire on November 30, 2009. As a result, the Division of Accounts and Reports will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning November 15, 2009 and ending November 28, 2009, paid December 11, 2009.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed on or after November 30, 2009 for pay periods ending on and between February 21, 2009 and November 14, 2009 will continue to NOT have the contributions collected and remitted.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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DATE: | November 20 , 2009 | ||
---|---|---|---|
SUBJECT: |
December 2009 Payroll Processing |
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EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
December 2009 Payroll Processing |
As 2009 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2009 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2009 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2010 balances; a corrected W-2 (Form W-2C) for 2009 will not be issued for the employee involved.
FINAL 2009 PAYCHECK
The final on-cycle paychecks for calendar year 2009 will be issued December 24, 2009. Paychecks will be mailed on December 23, 2009. Encumbrances for the December 24, 2009 on-cycle paychecks will process in STARS on Monday night, December 21, 2009. The final off-cycle paychecks for calendar year 2009 will be issued on December 31, 2009 (generated from the off-cycle processed on December 28, 2009).
PAYCHECK REVERSALS
Any 2009 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 28, 2009 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 28, 2009 will update calendar year 2010 balances and will not be reflected in the employee’s 2009 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 28, 2009 to enter paycheck adjustment requests for any 2009 paychecks. Adjustments processed in the December 28, 2009 off-cycle payroll will be reflected on the employee’s 2009 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2009 paycheck has been previously adjusted and requires additional adjustment, form DA-180, ‘SHARP Paycheck Reversal/Adjustment/Supplemental’, should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 16, 2009.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2009 for inclusion in the December 28, 2009 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2009 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2009 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 28, 2009 which are adjusting paychecks issued prior to January 1, 2010 will not result in a W-2C; the adjustment will update the employee’s 2010 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 28, 2009 will update the employee’s 2010 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 12, 2009, paid December 24, 2009 are due to the Department of Administration by 6:00 a.m. on December 17, 2009.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2009 Paycheck Reversals
Regent Institutions must submit all transmittals for 2009 paycheck reversals by 5:00 p.m. on Thursday, December 24, 2009 in order to update the employee’s 2009 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2010 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2010 submitted after 5:00 p.m. on December 24, 2009 should default the pay adjust check date to January 1, 2010.
2009 Adjustments and Supplementals
In order to update employee balances for 2009, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Thursday, December 24, 2009. The Run C off-cycle for the pay period ending December 12, 2009 generated on the night of Monday, December 28, 2009 will have a check issue date of December 31, 2009; all activity for this off-cycle will be reflected in the employees’ 2009 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2009 date.
2010 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2010, any adjustments or supplementals submitted after 5:00 p.m. on Thursday, December 24, 2009, will be considered to be 2010 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2010 business, the employee’s 2010 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2010 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2010, agencies should default the pay adjust check date to January 1, 2010).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2010, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2010 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2010 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 24, 2009 deadline for the December 28, 2009 Run C’s off-cycle payroll will not be processed until the January 19, 2010 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 11, 2010. The deadline for submitting payroll interface files for the January 19, 2010 off-cycle is 5:00 p.m. on Friday, January 15, 2010.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2009 United Way or Community Health Charities contributions should be dated between December 13, 2009 and December 25, 2009 in order for the last 2009 deduction to be taken on the paycheck issued December 24, 2009. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2010, agencies can enter a new row effective-dated between December 13, 2009 and December 26, 2009 in order for the first deduction for United Way or Community Health Charities for 2010 to be taken on the January 8, 2010 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 12, 2010 should be entered.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding
and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar
year. To facilitate this requirement, an email notification will be sent on December 2, 2009 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced
EIC payments. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 2, 2009 to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2010. If your agency has no employees claiming an exemption from federal withholding and/or advanced EIC, the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2010 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 16, 2009 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 21, 2009 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ and/or ‘New W-5 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2010.
The KPAY320 will be processed the evening of December 21, 2009. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2010 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2010 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions and/or stop any advance EIC payments for paychecks with a 2010 pay date.
For any 2010 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 21, 2009 and January 1, 2010, agency personnel will need to enter the data with a January 2, 2010 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2010 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change. See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4.
The 2010 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 21, 2009 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2010. The new tax data row will be dated January 1, 2010. The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2010 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
Deduction Information
All deductions for calendar year 2010 are biweekly except:
-Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 28, 2009. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Any arrearage collections made by personal reimbursement that are collected after December 16, 2009, and prior to December 28, 2009, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2009 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2009 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 12, 2009 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 29, 2009 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 29, 2009 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 24, 2009. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 29, 2009 and January 4, 2010. W-2 forms will be mailed on or before January 31, 2010. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2009 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.state.ks.us/sharp/infolist.htm .
Attachment December 2009 Calendar pdf
KEO:NTR:kao
DATE: | December 1, 2009 | ||
---|---|---|---|
SUBJECT: |
Establishing New Organization Dues Deduction Codes for KOSE |
||
EFFECTIVE DATE: | Payroll Period Ending January 23, 2010 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3669 |
|
APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for KOSE |
The Kansas Organization of State Employees (KOSE) is implementing a new bi-weekly membership dues structure based on salary tiers. As a result of this change, six new deduction codes are being added in SHARP to replace the current deduction code (ORG500) for KOSE members. The new deduction codes will be effective with the payroll period beginning January 10, 2010 and ending January 23, 2010, paid February 5, 2010 and are listed below:
Deduction Code | Hourly Rate of Pay | Bi-weekly Dues Deduction |
---|---|---|
ORG502 | $ 13.99 or Less | $13.96 |
ORG503 | $ 14.00 - $ 14.99 | $14.50 |
ORG504 | $ 15.00 - $ 15.99 | $15.50 |
ORG505 | $ 16.00 - $ 16.99 | $16.50 |
ORG506 | $ 17.00 - $ 17.99 | $17.50 |
ORG507 | $ 18.00 or Greater | $18.46 |
The Department of Administration, Division of Personnel Services, will be responsible for making updates to the General Deduction records in SHARP for employees affected by this change. The updates include ending the current ORG500 deduction effective January 10, 2010 and setting up the appropriate new deduction effective January 10, 2010 based on the member’s hourly rate of pay.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to add the new KOSE deduction codes. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 5, 2010
KEO:NTR:ewb
DATE: | December 4, 2009 | ||
---|---|---|---|
SUBJECT: |
Change in the Setup and Usage of Current Percentage Differential Earnings Codes |
||
EFFECTIVE DATE: | Payroll Period Ending December 26, 2009 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
Changes to Current Percentage Differential Earnings Codes in Preparation for the Implementation of Time and Labor |
Currently, percentage differential earnings codes in SHARP are paid using both an “Hours” earnings code and a “Pay” earnings code. The differential hours are entered with one code on the Timesheet and the pay code is entered on the employee’s Additional Pay page. This method of paying the differential earnings codes will not work correctly with the implementation of Time and Labor on July 1, 2010 due to the way the system calculates the Labor Cost allocation. Therefore, changes to the setup and usage of the percentage differential earnings codes have been identified and will be implemented effective with the payroll period beginning December 13, 2009 and ending December 26, 2009 paid January 8, 2010 so that the new usage of the earnings codes will be consistent throughout calendar year 2010.
The changes being implemented result in the ‘Pay’ earnings codes no longer being necessary. As a result, on December 22, 2009 the following ‘Pay’ codes will be automatically ended on each employee’s current Additional Pay page with an End Date of December 13, 2009. These ‘pay’ codes should no longer be used effective with payroll periods beginning on or after December 13, 2009. No action is required on the part of SHARP agency personnel to end the following pay codes on the employees’ Additional Pay record:
Earnings Code | Description |
---|---|
P1P | Pay Diff Pay-Corrections-10% |
P2P | Pay Diff Pay-JJA-Lead Wrkr-5% |
P3P | Pay Diff Pay-JJA-Spec Unit-5% |
P4P | Pay Differential Pay-2% |
S3P | Shift 3 Pay-10% |
Effective with the payroll period beginning December 13, 2009, only hours for percentage differential earnings will need to be entered on the employee’s timesheet at the time of other time and leave entry. The following ‘Hours’ differential earnings codes will continue to be used:
Earnings Code | Description |
---|---|
P1H | Pay Diff Hours-Corrections-10% |
P2H | Pay Diff Hours-JJA-Lead Wrkr-5% |
P3H | Pay Diff Hours-JJA-Spec Unit-5% |
P4H | Pay Differential Hours-2% |
S3H | Shift 3 Hours-10% |
The ‘Hours’ earnings will continue to default on the employee’s time sheet as long as the employee continues to be attached to a work schedule which includes the differential earnings code. Agencies will continue to be unable to process a paycheck adjustment for any paychecks that contain one of the ‘old’ ‘Pay’ earnings codes. In these situations, the agency should continue to submit a paycheck adjustment request to Accounts & Reports, Payroll Services on a Form DA-180, Paycheck Reversal/Supplemental/Adjustment. However, effective with the elimination of the use of the ‘Pay’ earnings codes (payroll period beginning December 13, 2009 and ending December 26, 2009) agencies will be able to process a paycheck reversal/adjustment directly in SHARP for paychecks which contain only the ‘Hours’ differential earnings codes.
The Division of Accounts and Reports, Payroll Systems Team is responsible for updating these earnings codes in the SHARP system. Regent’s institutions are responsible for ensuring these code changes are updated in their individual systems.
KEO:NTR:ewb
DATE: | December 7, 2009 | ||
---|---|---|---|
SUBJECT: |
Change in the SHaRP Direct Deposit Page |
||
EFFECTIVE DATE: | December 8, 2009 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
Changes to the SHaRP Direct Deposit Page for New International ACH Standards |
New National Automated Clearing House Association (NACHA) rules require the identification of any ACH payment that may result in the transfer of those funds to a financial agency outside the U.S. as an International ACH transaction (IAT). Transactions identified as IAT require additional information to be provided for the transaction to flow through the banking process.
As an interim step to prepare for the new requirements, changes to the Direct Deposit setup page will be effective in SHaRP on Tuesday, December 8, 2009. Existing direct deposit records will automatically be stored and viewed in the new page format. When entering new data into the updated Direct Deposit page, please note that the order of the fields has changed and two new additional fields have been added as follows:
Country Code: Value is ‘USA’
International ACH Bank Checkbox: Agencies should NOT check this box for any direct deposit account during this transition period.
Additional instructions and information, including an updated version of the DA-184 Authorization for Direct Deposit for Employee Pay Form, will be provided when all of the necessary changes are in place. It is anticipated that very few, if any, State of Kansas payroll transactions will be required to be identified as an International ACH transaction. An example of the page before and after the changes is provided below.
Direct Deposit page BEFORE changes:
Direct Deposit page AFTER changes:
Printable Version: IC 10-P-012 pdf
KEO:NTR
DATE: | December 8, 2009 | ||
---|---|---|---|
SUBJECT: |
Employee Taxability of State-Owned or Leased Vehicles |
||
EFFECTIVE DATE: | January 1, 2010 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2010 |
The Internal Revenue Service (IRS) has decreased the standard mileage rate from 55 cents to 50 cents beginning January 1, 2010 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 50 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2010 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,300 for a car (up from $15,000 in 2009), and $16,000 for a passenger truck or van (up from $15,200 in 2009). Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
KEO:NTR:ccl
DATE: | December 11, 2009 | ||
---|---|---|---|
SUBJECT: |
Addition of New Voluntary Tax Sheltered Annuity Company Benefit Plan Codes to Accommodate Vendor Setup in SHARP |
||
EFFECTIVE DATE: | December 13, 2009 | ||
CONTACT: |
Roger Heckerson |
(785) 296-2737 |
|
APPROVAL: | |||
SUMMARY: |
Change to the Setup of Voluntary Tax Sheltered Annuity Company Benefit Plans in SHARP |
Currently, only one Voluntary Tax Sheltered Annuity Benefit Plan (Plan Type-4Z, Benefit Plan- VTSA) is established in SHARP. Because of the implementation of the new Statewide Management, Accounting and Reporting Tool (SMART) system on July 1, 2010 new Voluntary Tax Sheltered Annuity Benefit Plans are being added in SHARP in order to accommodate required vendor configuration for each current VTSA investment option. All the new VTSA benefit plans will continue to use the same ‘VTSA’ deduction code and ‘4Z’ Plan Type. The following new VTSA benefit plans will be added in SHARP effective December 13, 2009.
Benefit Plan - Current Investment Option Description
VTS009 - ING Voluntary
VTS024 - ING
VTS025 - AIM Investment Services, Inc.
VTS057 - American United Life Ins Co
VTS059 - AIG SunAmerica Life Assurance
VTS064 - Thrivent Financial for Luthera
VTS186 - AXA Equitable Life Insurance
VTS272 - Guardian Life Ins Co of Americ
VTS321 - Ameriprise Financial Services
VTS337 - ICAP
VTS357 - John Hancock Funds, Inc.
VTS378 - Farm Bureau Life Insurance Co
VTS412 - Lincoln Benefit Life Company
VTS413 - Lincoln Investment Planning
VTS416 - Lincoln National Life Ins Co
VTS422 - Thrivent Financial for Luthera
VTS444 - Mass Mutual Life Ins Co V A
VTS446 - Metropolitan Life Insurance Co
VTS468 - Modern Woodmen of America
VTS470 - Conseco Life Insurance Company
VTS474 - Nationwide Life Insurance Co
VTS501 - New York Life Insurance Co
VTS506 - ReliaStar Life Insurance Co
VTS507 - Northwestern Mutual Life Ins C
VTS569 - Phoenix Mutual Life Ins Co
VTS584 - Prudential Ins Co of America
VTS595 - Putnam Financial Services Inc
VTS655 - Security Benefit Life Ins Co
VTS687 - MFS/Sun Life Assur of Can(USA)
VTS695 - Teachers Ins Annuity Assoc
VTS696 - Teachers Ins Annuity Assoc
VTS702 - Travelers Insurance Company
VTS710 - American Century Investments
VTS724 - The Union Central Life Ins Co
VTS728 - Variable Annuity Dept – UNUM
VTS743 - USAA Life Insurance Company
VTS769 - AIG Variable Annuity Life Ins
VTS775 - Fidelity Investments Inst Serv
VTS785 - Waddell & Reed Financial Serv
VTS792 - American General Annuity Ins
VTS821 - Pioneer Investment Mgmt Serv
VTS823 - The Vanguard Group of Inv Cos
VTS828 - PFS Investments Inc.
VTS829 - Mackay-Shields Tax Shltd An Pr
VTS830 - John Hancock Life Ins Co (USA)
VTS831 - Janus Capital Corporation
VTS834 - National Western Life Ins Co
VTS835 - Invesco Funds Group Inc
VTS838 - LIFEUSA
VTS839 - American Funds Investors
VTS842 - New England Financial
VTS843 - MetLife Investors USA Ins Co
VTS844 - First Investors Corp
For consistency of use throughout 2010, these new Benefit Plans will be effective in SHARP starting with the payroll period beginning December 13, 2009 and ending December 26, 2009, paid January 8, 2010. In order to transition the employee set up from the current Benefit Plan (VTSA) to the appropriate new Benefit Plan listed above, the Department of Administration, Division of Personnel Services (DPS) will be responsible for changing the current enrollment for affected employees on the Savings Plans table in SHARP effective December 13, 2009. DPS will establish a new row on the Savings Plans table effective December 13, 2009 using the new Benefit Plan appropriate for the Investment Option in which the employee is currently enrolled. Agencies should note that the Investment Options listed above already currently exist in SHARP under the one Benefit Plan (VTSA). Only the VTSXXX Benefit Plan codes listed above will be added new to the system.
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding these new Benefit Plan codes to the SHARP payroll system. Regent’s institutions are responsible for ensuring that all these changes are made in their respective systems effective with the payroll period noted above. Regent’s institutions should also ensure that these changes are included on the Benefits Interface file that is submitted to SHARP.
KEO:NTR:ewb
DATE: | December 11, 2009 | ||
---|---|---|---|
SUBJECT: | Increase in Parking Fees for City of Topeka Parking Garages | ||
EFFECTIVE DATE: | Payroll Period Beginning December 27, 2009 and Ending January 9, 2010, Paid January 22, 2010 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | cindy.lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Increase in Parking Fees for City of Topeka Parking Garages |
Effective January 1, 2010, the City of Topeka is increasing its monthly parking rates, including reserved stalls, for all City parking garages. This rate increase impacts State of Kansas agencies with contracts for parking in the Centre City Garage (9th and Kansas) and the 512 Jackson garage. The monthly parking rates will increase to $67.75 a month for non-reserved spaces and $75.50 a month for reserved spaces. Employees who park in these garages will see their parking deduction increase as follows starting with the payroll period beginning December 27, 2009 and ending January 9, 2010, paid January 22, 2010:
Garage Address | Dept/Agy | Rate | Parking Deduction Code | New bi-weekly deduction effective after pped 1/09/20 | Admin Fee Deduction Code | New Admin Fee effective for pped 1/09/2010 |
---|---|---|---|---|---|---|
512 Jackson |
Dept. on Aging |
Standard |
PPKA02 |
$19.73 |
PKAD04 |
$1.51 |
APKA02 |
$19.73 |
PKAD04 |
$1.51 |
|||
Centre City Garage |
Dept. of Agriculture |
Standard |
PPKA07 |
$31.27 |
PKAD11 |
$2.39 |
APKA07 |
$31.27 |
PKAD11 |
$2.39 |
|||
Reserved |
PPKA57 |
$34.85 |
PKAD50 |
$2.67 |
||
APKA57 |
$34.85 |
PKAD50 |
$2.67 |
|||
Centre City Garage |
Ethics Commission |
Standard |
PPKA08 |
$31.27 |
PKAD11 |
$2.39 |
APKA08 |
$31.27 |
PKAD11 |
$2.39 |
|||
Reserved |
PPKA58 |
$34.85 |
PKAD50 |
$2.67 |
||
APKA58 |
$34.85 |
PKAD50 |
$2.67 |
|||
Centre City Garage |
Conservation Commission |
Standard |
PPKA09 |
$31.27 |
PKAD11 |
$2.39 |
APKA09 |
$31.27 |
PKAD11 |
$2.39 |
|||
Reserved |
PPKA59 |
$34.85 |
PKAD50 |
$2.67 |
||
APKA59 |
$34.85 |
PKAD50 |
$2.67 |
|||
|
|
|
|
|
|
|
Centre City Garage |
Kansas Water Office |
Standard |
PPKA10 |
$31.27 |
PKAD11 |
$2.39 |
APKA10 |
$31.27 |
PKAD11 |
$2.39 |
|||
Reserved |
PPKA60 |
$34.85 |
PKAD50 |
$2.67 |
||
APKA60 |
$34.85 |
PKAD50 |
$2.67 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
KEO:NTR:ccl
DATE: | December 14, 2009 | ||
---|---|---|---|
SUBJECT: |
2010 Percentage Method Tables for Federal Tax Withholding |
||
EFFECTIVE DATE: | January 1, 2010 | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2010. |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2010. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2010. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance remains at $3,650 for 2010.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous years, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 2, 2009 to all SHARP employees who were exempt from federal withholding in 2009. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2010. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2010 W-4s. The 2010 Form W-4 is immediately available at the IRS website at http://www.irs.gov/pub/irs-pdf/fw4.pdf and at the Accounts and Reports website at http://www.da.ks.gov/ar/payroll/default.htm. Employees should submit their new W-4s by December 16, 2009 to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 21, 2009 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2010.
The KPAY320 will process during the batch cycle generated on the evening of December 21, 2009. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2010 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’. (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2009 in which the ‘New W-5 Received’ radio button is not checked. The update will insert a January 1, 2010 effective dated row with an EIC Status of ‘Not Applicable’.)
For any Forms W-4s for 2010 (or Forms W-5s for 2010 for employees claiming the advance EIC) received between December 21, 2009 and January 1, 2010, agency personnel will need to enter the data with a January 2, 2010 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Thursday, December 31, 2009 in order to be reflected in the on-cycle paycheck dated January 8, 2010. Agency Workflow Administrators will also need to change the effective date to January 2, 2010 for any electronic FormsW-4s for 2010 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2009 must file a new 8233 form for calendar year 2010 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 21, 2009 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2010. The new tax data row will be dated January 1, 2010. Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2010 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 21, 2009. The report will be available in the agency directory on the MVS on Tuesday, December 22. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but whose tax data records indicate a current 8233 form has not been received.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
KEO:NTR:ewb
Attachment: Tables for Percentage Method of Withholding pdf
DATE: | December 14, 2009 | ||
---|---|---|---|
SUBJECT: |
New Advance Earned Income Credit Tables for 2010 |
||
EFFECTIVE DATE: | January 1, 2010 | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2010 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2010. The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2010. In order to use the attached tables, income must be annualized. When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
As of this date, the IRS has not issued the 2010 Form W-5 - Earned Income Credit Advance Payment Certificate. Once the W-5 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/SHARP/infolist.htm. The 2009 Form W-5 expires on December 31, 2009. The 2010 Form W-5 must be filed with the employer before advance 2010 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2010 earned and adjusted gross income will each be less than $35,535.00 for single employees or $40,545.00 if filing jointly (include spouse’s income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the advance EIC for 2010 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2010.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
An e-mail notification was sent on December 2, 2009 to all SHARP employees receiving advance EIC payments in 2009. The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2010. The notification was sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
Agency personnel have until 6:00 p.m. on December 21, 2009 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2010. It is important that agency personnel check the ‘New W-5 Received’ radio button on the employee’s ‘Federal Tax Data’ page for the new effective-dated row that is entered.
The KPAY320 will process in the batch cycle generated the evening of December 21, 2009. This process will search for employees who were sent a W-5 notification. If a new W-5 has not been received, a January 1, 2010 effective-dated row will be inserted in the employee’s Tax Data record with an EIC status of ‘Not Applicable’. (Please note the KPAY320 process will also update all employees claiming exemption from federal withholding tax in 2009, if a new W-4 has not been received. The update will place a January 1, 2010 effective-dated row in the employee’s tax record with a marital status of ‘single’ and zero exemptions.)
For any Forms W-5 for 2010 (or Forms W-4 for 2010 for employees claiming exemption from withholding) received between December 21, 2009 and January 1, 2010, agency personnel will need to enter the data with a January 2, 2010 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Thursday, December 31, 2009 in order to be reflected in the on-cycle paycheck dated January 8, 2010. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 21, 2009. The report will be available in the agency directory on the MVS on Tuesday, December 22.
The Department of Administration will make all of the necessary changes in the computation of the advance EIC for SHARP agencies. Regent’s institutions are responsible for implementing the new advance EIC rates in their respective payroll systems.
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Attachment: Advance Earned Income Credit Formulas pdf
DATE: | December 15, 2009 | ||
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SUBJECT: |
Change in Organization Dues Deduction for the Kansas State Troopers Association |
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EFFECTIVE DATE: | Payroll Period Beginning January 10, 2010 and Ending January 23, 2010, Paid February 5, 2010 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
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APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for ORG281, ORG282 and ORG283 |
The bi-weekly organization dues for members of the Kansas State Troopers Association will increase for all three levels as follows:
DEDUCTION CODE | NEW RATE |
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ORG281 |
$16.85 |
ORG282 |
$ 23.52 |
ORG283 |
$ 27.67 |
The new rates will become effective with the payroll period beginning January 10, 2010 and ending January 23, 2010, paid February 5, 2010.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after February 5, 2010.
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DATE: | January 6, 2010 | ||
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SUBJECT: |
W-2 Wage and Tax Statements for Calendar Year 2009 |
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EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
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APPROVAL: | |||
SUMMARY: |
Information Pertaining to Employee 2009 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2009 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 31, 2009. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 29, 2010.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2009 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2009 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2009. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing the W-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2009 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2010. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial
within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2009 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2004 through 2009, agencies are strongly encouraged to recommend that employees use the ‘W-2 Reissue Request’ functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/. After logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2009, 2008, 2007, 2006, 2005, or 2004) the reissued W-2 is needed. Duplicate W-2’s for 2004 - 2008 are currently available, and duplicate W-2’s for 2009 will be available starting on Wednesday, January 20, 2010. Please note that duplicate W-2’s for the year 2004 will no longer be available after mid-April 2010.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2009 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2009 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-2311.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 24, 2009 and off-cycle checks dated December 28, 2009 and December 31, 2009 are included in the 2009 W-2 amounts.
Attachments:
2009 W-2 Wage and Tax Statement Calculations xls
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DATE: | January 6, 2010 | ||
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SUBJECT: |
2010 W-2 Production Report Schedule |
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EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
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APPROVAL: | |||
SUMMARY: |
2010 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2010 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2010 W-2 production reports are scheduled to be generated:
- Friday, February 19, 2010
- Friday, March 19, 2010
- Friday, April 30, 2010
- Friday, May 14, 2010
- Friday, June 11, 2010
- Friday, July 9, 2010
- Friday, August 6, 2010
- Friday, September 3, 2010
- Friday, October 1, 2010
- Friday, October 29, 2010
- Friday, November 12, 2010
- Wednesday, November 24, 2010
- Wednesday, December 8, 2010
- Monday, December 13, 2010
- Monday, December 20, 2010
- Monday, December 27, 2010
- Wednesday, December 29, 2010 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by Accounts and Reports. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2010 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
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DATE: | January 14, 2010 | ||
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SUBJECT: |
Organization Dues Change for ORG050 and ORG051 |
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EFFECTIVE DATE: | Payroll Period Ending January 23, 2010 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
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APPROVAL: | |||
SUMMARY: |
Change in Organization Dues Deduction for SEAK Members |
The organization dues for the State Employees Association of Kansas (SEAK) will be increased from $4.50 to $5.50 for regular members (ORG050) and from $1.50 to $2.50 for single, head of household members (ORG051) per biweekly payroll period. The new rates will become effective with the payroll period beginning January 10, 2010 and ending January 23, 2010, paid February 5, 2010.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after February 5, 2010.
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DATE: | February 9, 2010 | ||
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SUBJECT: |
KPAYGL5C Updated File Layout |
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EFFECTIVE DATE: | June 30, 2010 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
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APPROVAL: | |||
SUMMARY: |
KPAYGL5C, General Ledger Extract, Updated File Layout for Conversion to SMART |
KPAYGL5C, the General Ledger Extract Outbound Interface File, is a flat file of general ledger data provided to select agencies to assist with reporting needs. The KPAYGL5C is generated as part of the Day 4 and Day 6 payroll processing schedules. The KPAYGL5C generated on DAY 6 contains information for only the on-cycle payroll for the period; the file generated on DAY 4 contains information for the on-cycle payroll as well as all off-cycle activity for the period.
The implementation of the new Statewide Management and Reporting Tool (SMART) System requires significant changes to the layout of the KPAYGL5C file to account for the changes in chartfield values and source tables that will occur. Attached is the updated KPAYGL5C file layout which will be effective with all KPAYGL5C files generated on or after June 30, 2010.
As part of the on-going effort to protect and secure the personally identifiable information of employees of the State of Kansas, Social Security Number has been removed from the updated file layout. Employee ID as well as Position Number continue to be included.
Please note, the KPAYGL5C file is only created for those agencies who have requested that it be generated for their agency. If your agency is not currently receiving the KPAYGL5C and would like to have it generated for your agency beginning June 30, 2010, please contact Earl Brynds, Payroll Systems Team Lead, at Earl.Brynds@da.ks.gov or via phone at (785) 296-5376 to submit your request.
Attachment:
KPAYGL5C Updated File Layout xls
DATE: | April 1, 2010 | ||
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SUBJECT: |
Employer KPERS Death and Disability Insurance Contributions Moratorium |
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EFFECTIVE DATE: | April 1, 2010 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
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APPROVAL: | |||
SUMMARY: |
Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2010 to June 30, 2010 |
A moratorium that suspends employer contributions for KPERS Death and Disability Insurance is being implemented from April 1, 2010 to June 30, 2010. The Division of Accounts and Reports will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods that have an original check issue date on and after April 16, 2010. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning March 21, 2010 and ending April 3, 2010, paid April 16, 2010. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after April 1, 2010 for pay period end dates prior to April 3, 2010 will continue to have the contributions collected and remitted. Refer to Informational Circular 10-P-008 to review the dates the previous moratorium was in effect for 2009. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after March 21, 2010, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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DATE: | May 5 , 2010 | ||
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SUBJECT: |
Fiscal Year End Payroll Processing for FY 2010 and Transition to SMART for FY2011 |
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EFFECTIVE DATE: | Immediately | ||
CONTACTS: |
Joyce Dickerson Earl Brynds |
(785) 296-3979 (785) 296-5376 |
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APPROVAL: | |||
SUMMARY: |
Summary of Fiscal Year End Payroll Processing and SHARP Impacts for SMART Transition |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing as well as discuss key dates and payroll changes in SHARP as a result of the transition to the Statewide Management, Accounting and Reporting Tool (SMART) for Fiscal Year 2011. On-cycle and off-cycle dates have been changed in June in order to accommodate the transition to SMART. Please review carefully the information contained in this circular and in the calendars attached.
Note: Another informational circular regarding the fiscal year 2011 payroll contribution rates will be issued as soon as the information becomes available.
Prior Period Paycheck Reversals/Adjustments/Supplementals
Beginning with the implementation to SMART, the custom general ledger process currently used in SHARP is being replaced with the delivered PeopleSoft general ledger process. As a result, the Run A off-cycle processed in SHARP on Friday, June 18, 2010 will be the Final Payroll run for Fiscal Year 2010 and the last opportunity for agencies to enter any prior period adjustments on-line for pay periods prior to June 12, 2010. Please note that the previously scheduled Run B off-cycle for June 23, 2010 is cancelled due to conversion processes for SMART.
Starting with the first payroll run for Fiscal Year 2011 on June 28, 2010, all paycheck reversals/adjustments/supplementals for pay periods on or before June 12, 2010 must be submitted by completing form DA-180, Paycheck Reversal/Adjustment/Supplemental, for central processing by the Division of Accounts and Reports Payroll Services Team. Instructions for requesting a centrally entered adjustment can be found at http://www.da.ks.gov/ar/payroll/adjustment.htm .
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 pay periods ending on or before June 12, 2010 will use fiscal year 2010 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 12, 2010 will use fiscal year 2011 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run A off-cycle (scheduled for June 18, paid June 25) for the pay period ending June 12, 2010 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2010 expenditures. The Run C off-cycle (processed June 28, paid July 1) for the pay period ending June 12, 2010 will be charged to fiscal year 2011 expenditures.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Department Budget Tables and Fiscal Year Changes
For SMART conversion, all current FY2010 and prior rows in the Department Budget/Combination Code tables will be archived and deleted from the tables. New Fiscal Year 2011 agency funding will be uploaded to the Department Budget/Combination Code/Task Profile (Time & Labor) tables via agency spreadsheets provided for SMART conversion. This process is scheduled to run during the day of June 21, 2010. Agencies will have access in SHARP beginning Wednesday, June 23 to validate combination codes and Department Budget funding was loaded correctly. In that process, a new row will be added to the Department Budget tables with an effective date of June 13, 2010 (beginning date of the first on-cycle payroll charged to FY2011). The Budget End Date will be June 12, 2011. When adding new rows for FY2011, agencies should verify that June 12, 2011 was used as the Budget End Date for FY2011.
GHI Adjustments
As of July 1, 2010, NO payroll processing for GHI adjustments should be made for contract year 2008. Contact Brenda Vaughn (785) 296-3226 Brenda.Vaughn@khpa.ks.gov at Kansas Health Policy Authority about any event maintenance changes that may affect claims processing for contract year 2008.
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. Beginning with the first payroll run for Fiscal year 2011 on June 28, 2010, Regents will be replacing the STARS funding file and DA175/176 with an INF06 interface file processed in SMART.
Currently, local employer taxes are submitted in SHARP using employer general deduction codes LCO001, LCO002, LOR001, and LOR002 for locals in Colorado and Oregon. Effective July 1, 2010 local employer taxes must be submitted as taxes on the pay detail file using tax class ‘R’ for these and any future employer local taxes established. Balances for employees with 2010 year-to-date deductions will be moved to employer taxes by Accounts & Reports, Payroll at the time of the conversion to SMART.
Reminders
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 payrolls are generally 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 on-cycle paycheck for the period and will require special handling.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.
Additional Key Payroll Changes for Transition to SMART
As a result of the SMART implementation on July 1, 2010, the following is a summary of additional key payroll changes that are being implemented in SHARP effective beginning June 23, 2010.
Time and Labor
Twelve agencies will implement the PeopleSoft Time and Labor module. Agencies 039, 122, 143 and 710 will utilize an interface to enter employee’s time into Time and Labor. Agencies 046, 083, 171, 264, 296 and 300 will use self-service. Agencies 034 and 280 will use time keepers.
Payable time from Time and Labor will load into payroll. Regular pay will be captured in the ‘Other Earnings’ section of the employee paycheck view and the PAY002 report instead of the ‘Earnings’ section as from before with Time and Leave. Also, new earnings code ‘RE1’ will be used for regular pay for both exempt and non-exempt employees. Time and Labor uses Time Reporting Codes (TRC) to report time that map to Earnings Codes for use in Payroll. A complete listing of the TRC to Earnings code mapping can be found at “Time and Labor Time Reporting Codes” on the Department of Administration SHARP website at www.da.ks.gov/sharp/documents under the “Time and Labor Documents” section.
Exempt employees in Time and Labor will report leave time using different codes than from before in Time and Leave. A complete listing of the crosswalk for the new leave codes that exempts should use can be found at “Time and Labor Salaried Leave TRC Crosswalk” on the SHARP website referenced above under the “Time and Labor Documents” section.
Some Time and Labor agencies will be utilizing the Labor Distribution functionality of Time and Labor. Payable time is sent to payroll and then when the labor distribution process runs, payable and non-payable time (if applicable) are allocated based on percentages that are entered for agency project task profiles in Time and Labor. Please note that it is very important for agencies to NOT update any of their task profile information after pay calculation has begun for a pay period as it could result in pay errors. These allocations can be viewed in the ‘Other Earnings’ section of the employee paycheck view and on the PAY002 report.
Taxable Group Life
As a result of the implementation to SMART, the processing of the current employee taxable group life deduction (GTL%%% deduction code, deduction class ‘T’) in SHARP is changing effective with all checks paid on or after July 1, 2010. This amount of taxable group life will now be processed using an earnings code rather than a deduction. New earnings code ‘TGL’ will be used to record the taxable group life amount. However, the calculation of this amount will not change. The new earnings code does not add to Gross Pay but will be reported on the employee’s W-2. The TGL amount can be viewed in the ‘Other Earnings’ section of the employee paycheck view and on the PAY002 report. Please note that the non-taxable portion of group term life (GTL%%% deduction code, deduction class ‘N’) will continue to be processed as an employer deduction.
Organization Dues/United Way Fees
As a result of the implementation to SMART, the statutorily authorized fees currently deducted from the monthly remittance for organization dues and united way must be established as separate deduction codes effective with all checks paid on or after July 1, 2010. The fee for both organization dues and united way/health charities will be standardized at $ .06 per bi-weekly payroll period per deduction. The full amount of the employee contribution for united way/health charity deductions will continue to be included on the employee W-2 form.
For existing deductions:
- During the SHARP conversion, each existing ORG%%% and UTD%%% deduction code will have a corresponding ORF%%% and UTF%%% deduction code established in SHARP with a flat rate of $ .06. Conversion programs will automatically end the current general deduction row effective 6/13/10 and set up the new employee general deductions, including the fee rows, effective 6/13/10 with the appropriate deduction amounts.
- The Division of Accounts and Reports will make the necessary table updates required to modify the org dues flat rate deduction amounts.
Agencies are strongly encouraged to verify the new ORG/ORF and UTD/UTF setup for your employees in the general deduction table after SHARP is available on June 23, 2010 and report any issues to Payroll Services as soon as possible.
For future deductions:
- United Way/Health Charities: Agency personnel will continue to enter united way/health charity general deductions during the enrollment period as they have in the past. Following the closing date each year for united way general deduction enrollment, a batch program will be run to update the deduction amount to account for the fee and insert the corresponding UTF%%% row.
- Organization Dues: Effective 6/13/10, agency personnel will continue to establish the appropriate ORG%%% row upon employee enrollment. Agency personnel must also establish a corresponding ORF%%% (i.e. ORG001 and ORF001) row in order for the fee to be properly deducted.
- Ending United Way/Org Dues Deductions: When ending an employee deduction, agency personnel must be sure to insert the correct deduction end date on both the UTD%%%/ORG%%% and the corresponding UTF%%%/ORF%%% row in employee general deduction.
- KOSE/KAPE/PAC: The Division of Personnel Services will continue to process all KOSE/KAPE/PAC deductions and insert the appropriate general deduction rows upon employee enrollment.
The new ORF%%% and UTF%%% deduction codes can be viewed on the paycheck deductions page of the employee paycheck view and on the PAY002 report.
Paycheck Numbers on Printed Paychecks
Paycheck numbers on printed paychecks in SHARP will use 10 digits instead of the current 7 digits effective with all paychecks printed on or after July 1, 2010. Please note that the paycheck number on the employee paycheck view and on the PAY002 report will still use the current 7 digit number. However, when the paycheck is printed a prefix of ‘100’ is added to the 7 digit number. Also, this 10 digit number is sent to SMART via an INF48 interface file. For all paychecks issued on or after July 1, 2010, agencies should include the entire 10 digit paycheck number when completing form DA-6P (Paycheck Stop Payment Request).
Employer Expenditure Reporting Changes
Expenditure Sub-Object codes in STARS are being replaced with expenditure accounts in SMART. Expenditure accounts will consist of 6 digit account numbers that begin with ‘5’. Currently in SHARP, expenditure sub-object codes 1750 and 1950 are used to split out the State Employer Contribution for Dependent Health Insurance Contributions and Group Health and Hospitalization Insurance (employee). Effective with all paychecks paid on or after July 1, 2010, all employer contributions for Group Health Hospitalization will be charged to account 519500 only instead of charging two expenditure accounts.
Currently in SHARP, employer OASDI and Medicare are combined under expenditure sub-object code 1910. Effective with all paychecks paid on or after July 1, 2010, employer OASDI will be charged to account 519102 and employer Medicare will be charged to account 519101.
Payroll Journal Posting Schedule in SMART
Currently, payroll encumbrance transactions are posted to STARS during Tuesday evening of pay week in SHARP. There will not be any firm encumbrance processing in SMART. Posting Payroll Journals in SMART will be a 3 step process: edit, budget check, and post. Payroll journals will be sent to SMART three days prior to the paycheck issue date for editing. They will budget check and post in SMART two days before the paycheck issue date. For example, the on-cycle June 26, 2010 pay end date has a paycheck issue date of July 9, 2010. Payroll Journals will be sent to SMART on Tuesday, July 6, 2010 for editing. The payroll journals from this cycle will budget check and post in SMART the night of Wednesday, July 7, 2010. Delays in budget checking and posting could occur if there are errors on the journals.
Changes to the Payroll Processing Schedule
As a result of the implementation to SMART, the following changes have been made to the regular June/July payroll processing schedules for the payroll periods ending June 12, 2010 and June 26, 2010:
Friday, June 11, 2010
Payday for the payroll period ending May 29, 2010.
Time and leave interface agencies must have time and leave files for the period ending June 12, 2010 submitted to the Department of Administration for processing by 5:00 p.m.
Regents’ Run ‘C’ off-cycle payroll files for the period ending May 29, 2010 are due to the Department of Administration by 5:00 p.m.
Monday, June 14, 2010
The Run 'C' off-cycle for the payroll period ending May 29, 2010 continues to be scheduled for June 14, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, June 17, 2010.
Paysheets for the on-cycle payroll for the period ending June 12, 2010 will be created on Monday, June 14, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on June 14, 2010 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, June 15, 2010.)
The first on-cycle preliminary pay calculation for the period ending June 12, 2010 will also occur June 14, 2010, rather than Tuesday, June 15, 2010; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. June 14, 2010.
Tuesday, June 15, 2010
The second on-cycle preliminary pay calculation for the period ending June 12, 2010 will occur June 15, 2010.
Wednesday, June 16, 2010
Final pay confirmation for the on-cycle payroll for the period ending June 12, 2010 will occur June 16, 2010. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on June 16, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on June 16, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, June 25, 2010.
Regents’ on-cycle payroll files for the period ending June 12, 2010 are due to the Department of Administration by 6:00 AM on June 16, 2010. (These files would normally be due Friday, June 18, 2010.)
Thursday, June 17, 2010
The Regents’ on-cycle files for the period ending June 12, 2010 will be processed.
Regents’ Run ‘A’ off-cycle payroll files for the period ending June 12, 2010 are due to the Department of Administration by 5:00 p.m. on June 17, 2010.
Friday, June 18, 2010
The Run ‘A’ off-cycle for the period ending June 12, 2010 will be processed June 18, 2010. SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will be dated Friday, June 25, 2010. Please note that this is the final payroll run for Fiscal Year 2010 and the final opportunity for agencies to enter any prior period adjustments on-line for pay periods prior to June 12, 2010.
Saturday, June 19, 2010
SHARP is shut down and unavailable to agencies so that data conversion for SMART can begin.
Wednesday, June 23, 2010
SHARP is available to all agencies. Time and Labor agencies are go-live. Agencies should make it a priority to verify Combination Codes, Department Budget tables and Task Profiles if applicable.
Regularly scheduled Run ‘B’ off-cycle for the payroll period ending June 12, 2010 is cancelled.
Friday, June 25, 2010
Payday for the payroll period ending June 12, 2010.
Regents’ Run ‘C’ off-cycle payroll files for the period ending June 12, 2010 are due to the Department of Administration by 4:00 p.m. on June 25, 2010.
Monday, June 28, 2010
The Run 'C' off-cycle for the payroll period ending June 12, 2010 continues to be scheduled for June 28, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, July 1, 2010. Please note that this is the first payroll run for Fiscal Year 2011. As a reminder, all paycheck reversals/adjustments/supplementals for pay periods on or before June 12, 2010 must be submitted by completing form DA-180, Paycheck Reversal/Adjustment/Supplemental, for central processing by the Division of Accounts and Reports Payroll Services Team. However, please note that for this off-cycle, Time and Leave agencies will be able to enter supplementals only. Any reversals/adjustments will need to be processed by completing form DA-180.
Time and Leave/Time and Labor interface agencies must have time and leave/Time and Labor Interface (INF42) files for the period ending June 26, 2010 submitted to the Department of Administration for processing by 5:00 p.m. on June 28, 2010.
Agencies should have completed the verification of Combination Codes, Department Budget tables and Task Profiles if applicable.
Tuesday, June 29, 2010
Paysheets for the on-cycle payroll for the period ending June 26, 2010 will be created as usual on Tuesday, June 29, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on June 29, 2010 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending June 26, 2010 will also occur June 29, 2010; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. June 29, 2010. Time and Labor employee timesheets should have been entered and Reported Time submitted and approved prior to June 29, 2010. All Payable Time should be approved by 6:00 PM on June 29, 2010.
Wednesday, June 30, 2010
The 2nd on-cycle preliminary pay calculation for the period ending June 26, 2010 will occur June 30, 2010.
Regents’ on-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 PM on June 30, 2010.
Thursday, July 1, 2010
The 3rd on-cycle preliminary pay calculation for the period ending June 26, 2010 will occur July 1, 2010.
Friday, July 2, 2010
Final pay confirmation for the on-cycle payroll for the period ending June 26, 2010 will occur July 2, 2010. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on July 2, 2010 in order for a paycheck record to be created. Time and Labor employee timesheets must be entered and Reported Time submitted and approved by 11:00 AM on July 2, 2010. After Time Administration runs at 11:00 AM, all Payable Time must be approved by 6:00 PM on July 2, 2010. All deduction and tax data changes must be entered by 6:00 PM on July 2, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, July 9, 2010.
Regents’ Run ‘A’ off-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 p.m. on July 2, 2010.
Sunday, July 4, 2010
The Regents’ on-cycle files for the period ending June 26, 2010 will be processed.
Monday, July 5, 2010
Fourth of July Holiday Observed
Tuesday, July 6, 2010
The Run ‘A’ off-cycle for the period ending June 26, 2010 will be processed July 6, 2010. SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will be dated Friday, July 9, 2010.
Regents’ Run ‘B’ off-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 p.m.
Wednesday, July 7, 2010
The Run ‘B’ off-cycle for the period ending June 26, 2010 will be processed July 7, 2010. SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘B’ off-cycle. Paychecks for the Run ‘B’ off-cycle will be dated Monday, July 12, 2010.
Friday, July 9, 2010
Payday for the payroll period ending June 26, 2010.
Regents’ Run ‘C’ off-cycle payroll files for the period ending June 26, 2010 are due to the Department of Administration by 4:00 p.m. on July 9, 2010.
Monday, July 12, 2010
The Run 'C' off-cycle for the payroll period ending June 26, 2010 will be processed on July 12, 2010. The check issue date for the Run 'C' off-cycle will be Thursday, July 15, 2010.
Time and Leave/Time and Labor interface agencies must have time and leave/Time and Labor Interface (INF42) files for the period ending July 10, 2010 submitted to the Department of Administration for processing by 5:00 p.m. on July 12, 2010.
Attached are revised calendars for the month of June and July 2010 that highlight these payroll processing schedule changes due to the implementation of SMART. The attached calendars are intended for use as supplementary reference tools only; they do not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm
Attachments
June Calendar pdf
July Calendar pdf
KEO:NTR:ewb
DATE: | May 10, 2010 | ||
---|---|---|---|
SUBJECT: |
Housing, Food Service and Other Employee Maintenance |
||
EFFECTIVE DATE: | July 1, 2010 | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
Annual review of housing, food service and other employee |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2011 will require entry into the SHARP v8.9 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2011 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 28, 2010 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 26, 2010 (paychecks dated July 9, 2010).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment DA-171 pdf
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DATE: | May 21, 2010 | ||
---|---|---|---|
SUBJECT: |
Implementation of 100% Direct Deposit for State of Kansas Payroll |
||
EFFECTIVE DATE: | October 1, 2010; Transition period May 28, 2010 – Sept. 24, 2010 | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
Transition Timeline for Implementation of 100% Direct Deposit of Payroll for State of Kansas Employees |
On May 21, 2010, the Department of Administration announced the implementation of a policy of 100% direct deposit for employee payroll and travel and expense reimbursements effective with all payments made on or after October 1, 2010. For payroll purposes, employees who currently receive a paper paycheck will be transitioned to either traditional direct deposit or a Skylight paycard during the period of May 28, 2010 – Sept. 24, 2010.
Employees who have an existing checking or savings account are encouraged to sign up for direct deposit at their earliest convenience by completing a form DA-184, “Authorization For Direct Deposit of Employee Pay,” and submitting it to their agency Human Resource/Payroll office. The form is available on the Accounts and Reports website under Payroll Forms. The form provides employees with the ability to distribute payroll net pay to a maximum of nine different bank accounts.
The Department of Administration has renewed its partnership with Skylight Financial, Inc. (associated with U.S. Bank) to provide a Skylight paycard to employees who do not elect to have their payroll directly deposited to a checking or savings account. The Skylight paycard is an FDIC insured ATM/debit-based bank account where pay and other deposits, such as travel and expense reimbursements, can be made. Agency Human Resource/Payroll offices that currently have Skylight Instant Issue Packs that were provided under the previous Skylight contract should destroy the existing packets immediately, as updated inventory will reflect terms of the new contract. The new paycard contract provides increased benefits, convenience, and flexibility to employees.
Detailed information regarding the new paycard contract and the transition to 100% direct deposit will be issued over the next several weeks. The high-level transition plan detailed below will allow your agency and employees to begin preparations for this transition.
June, 2010
- Additional informational circulars will be issued detailing the new paycard contract, training dates, and details for implementation of 100% direct deposit for payroll and travel and expense reimbursement.
- Presentation of the paycard program, its benefits, and the schedule for implementation will be provided at the Human Resource Conference on Tuesday, June 8th.
- Skylight Marketing Materials will be released and Paycard registration packets will be shipped to agency Human Resource/Payroll offices.
- Accounts and Reports Payroll Services will work in conjunction with agency Human Resource/Payroll staff to provide notification of new policy and transition timeframe to employees currently receiving paper paychecks.
- Employees with existing checking/savings accounts will need to request Direct Deposit via completion of the DA-184 form.
- SHaRP Direct Deposit data will be converted to SMART for Travel and Expense Reimbursements on June 18, 2010.
- Paycard enrollment training for agency Human Resource/Payroll personnel will be provided.
Late June – Sept. 24, 2010
- Agency Human Resource/Payroll staff will work with employees to establish Direct Deposit of net pay either via DA-184 authorization form or enrollment in the payroll paycard.
- Accounts and Reports, Payroll Services will continue working in conjunction with agency Human Resource/Payroll staff to provide employee education and assistance to complete successful transition to 100% direct deposit on Sept. 24, 2010.
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DATE: | May 26, 2010 | ||
---|---|---|---|
SUBJECT: |
Discontinuation of Employer-Sponsored Payroll Savings Bond Programs by U.S. Department of Treasury |
||
EFFECTIVE DATE: | June 11, 2010 | ||
CONTACT: |
Janice Wolfley Vicky Swaim |
(785) 296-3699 (785) 296-5384 |
|
APPROVAL: | |||
SUMMARY: |
Employee Payroll Savings Bond Program and Deductions Ending Effective June 11, 2010 |
The Division of Accounts and Reports was recently notified that the U.S. Department of Treasury has announced that it will stop issuing paper savings bonds through employer-sponsored payroll savings plans. The paper savings bonds that have been issued through the payroll savings bond program will continue to be valid issues of the U.S. Treasury and will remain available for purchase at financial institutions.
The notice indicated this change is being made to reduce the costs associated with the U.S. Savings Bond Program and to support the Treasury’s long-term plan to issue all securities electronically. Employers are required to discontinue existing employer-sponsored payroll savings bond programs to coincide with this change.
In accordance with this directive, the final payroll deduction for any employee currently enrolled in the payroll savings bonds program will occur on the paycheck dated June 11, 2010. The Division of Accounts and Reports will make the necessary updates to end all employee payroll savings bond deductions in SHARP effective with the June 25, 2010 paycheck. Regent institutions are responsible for making the necessary changes to end savings bond deductions in their individual payroll systems.
Following the processing of the final savings bond purchase for the deductions withheld through June 11, 2010, Payroll Services will identify balances that remain in the Savings Bond Log for employees who have accumulated deductions that were not sufficient to purchase the selected bond denomination. Agencies will be notified of their employees with an outstanding savings bond balance, including the balance amount. This notification is planned for distribution to the agencies via email on Tuesday, June 8, 2010. On Monday, June 14, 2010, Payroll Services will be ending all savings bond deductions in General Deduction Data in SHARP for all employees using a deduction end date of May 30, 2010.
Agencies will also have a new report available in their MVS mailbox on Tuesday, June 15, 2010 that will identify which active employees had their bond deduction ended by Payroll. This report should be used as a tool by the agencies to notify the appropriate employees. A SHARP infolist message will be distributed before June 15, 2010 that will include the name of the new report.
SHARP agencies will need to submit form DA-180 to Payroll Services to initiate the appropriate savings bond balance refund for their employees. Regents’ institutions will need to include the appropriate refund transactions on an off-cycle adjustment file to initiate the refunds for their employees. The savings bonds refunds will need to be completed by the final off-cycle payroll for fiscal year 2010 processing (ie., ‘A’ off-cycle scheduled for Friday, June 18, 2010).
Employees are strongly encouraged to continue to invest in savings bonds and other Treasury securities through TreasuryDirect, a secure web-based system that allows investors to establish accounts to electronically purchase, hold and conduct transactions online for savings bonds and other Treasury securities. To obtain more information or establish a TreasuryDirect account, employees can visit www.treasurydirect.gov.
Once a TreasuryDirect account is established, an employee can continue to experience the convenience of automatic savings by requesting that a portion of their bi-weekly net pay be directed to their TreasuryDirect account by completing a form DA-184, “Authorization For Direct Deposit of Employee Pay,” and submitting it to their agency HR/Payroll office. The form is available on the Accounts and Reports website under Payroll Forms.
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DATE: | June 7, 2010 | ||
---|---|---|---|
SUBJECT: |
Parking Fee Increase - Curtis Building Garage – FY2011 |
||
EFFECTIVE DATE: | Payroll Period Beginning June 13, 2010 and Ending June 26, 2010, Paid July 9, 2010 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Parking Fee Increase - Curtis Building Garage – FY2011 |
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2011. To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 13, 2010 and ending June 26, 2010, paid July 9, 2010:
Deduction Code (Group 1) | New bi-weekly rate for pped 6/26/10 |
---|---|
PKT08B | 24.82 |
PPKT08 | 24.82 |
PKAD05 (admin fee) | 1.90 ($24.82 * .0765) |
The Kansas Department of Commerce (Commerce) will no longer subsidize the rate increases for their employee’s parking in the Curtis Building Garage. As a result of this decision, Commerce employees who originally were assigned to Group 2 parking deduction codes below will be switched to the standard rates listed in Group 1 above. The Division of Facilities Management will make the employee deduction code changes in SHARP and Commerce will notify their employees individually of the changes.
Employees with Attorney General and Board of Pharmacy who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code(Group 2) | New bi-weekly rate for pped 6/26/10 |
---|---|
PKT10B | 12.41 |
PPKT10 | 12.41 |
PKAD07 (admin fee) | 0.95 ($12.41 * .0765) |
The parking rates for Secretary of State employees are listed in Group 3 below and do not change:
Deduction Code (Group 3) | Bi-weekly rate for pped 6/26/10 |
---|---|
PKT09B |
9.23 |
PPKT09 |
9.23 |
PKAD06 (admin fee) |
0.71 ($9.23 * .0765) |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | June 10, 2010 | ||
---|---|---|---|
SUBJECT: |
KPAYGL5C and KPAY286A Updated Layouts for SMART |
||
EFFECTIVE DATE: | June 23, 2010 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
REMINDER: KPAYGL5C (General Ledger Extract) and KPAY286A (Outbound Management Reporting File – HR) Updated Layouts for Conversion to SMART |
As previously communicated, due to the new Statewide Management and Reporting Tool (SMART) System, agencies are reminded that the following Interface File Layouts have been updated:
• KPAYGL5C - General Ledger Extract
• KPAY286A - Outbound Management Reporting File – HR
These changes are effective with all interface files generated on or after June 23, 2010. Agency reports and processes that utilize these interface files as the data source must be reviewed and updated as necessary to account for the interface file layout changes. The updated file layouts are attached.
The KPAYGL5C is a flat file of general ledger data provided to select agencies to assist with reporting needs and is currently generated as part of the Day 4 and Day 6 payroll processing schedules.
The KPAY286A is a flat file of Human Resources related information including Funding, Position, and Balance information and is currently generated as part of the payroll processing schedule on all days except Day 7 and Day14.
Agencies should also note that there are no changes to the interface file layout for the KPAY286B-Outbound Agency Payroll Extract.
Please note, the KPAYGL5C file is only created for those agencies who have requested that it be generated for their agency. If your agency is not currently receiving the KPAYGL5C and would like to have it generated for your agency beginning June 30, 2010, please contact Earl Brynds, Payroll Systems Team Lead, at Earl.Brynds@da.ks.gov or via phone at (785) 296-5376 to submit your request.
Attachments
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DATE: | June 22, 2010 | ||
---|---|---|---|
SUBJECT: |
Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium |
||
EFFECTIVE DATE: | July1, 2010 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning June 13, 2010 and ending June 26, 2010, paid July 9, 2010 |
S Sub for HB 2219, passed in the 2010 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2010 until June 30, 2010, and then again from April 1, 2011 to June 30, 2011. The 2010 moratorium will expire on July 1, 2010. As a result, the Division of Accounts and Reports will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning June 13, 2010 and ending June 26, 2010, paid July 9, 2010.
Another informational circular will be issued closer to the implementation date of the 2011 moratorium on April 1, 2011 to remind agencies to suspend employer KPERS Death and Disability Insurance contributions.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after July 1, 2010 for pay periods ending on and between April 3, 2010 and June 12, 2010 will continue to NOT have the contributions collected and remitted.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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DATE: | June 23, 2010 | ||
---|---|---|---|
SUBJECT: |
Fiscal Year 2011 Payroll Contribution Rates |
||
EFFECTIVE DATE: | Pay Period Beginning June 13, 2010; Ending June 26, 2010; Paid July 9, 2010 |
||
CONTACT: |
Kathy Ogle |
(785) 296-2290 |
|
APPROVAL: | |||
SUMMARY: |
Fiscal Year 2011-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 2011. The fiscal year 2011 rates will become effective with the on-cycle payroll period beginning June 13, 2010, ending June 26, 2010 and paid July 9, 2010. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2010.
For the first nine months of FY2011, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). Due to the end of the moratorium implemented from April 1, 2010 to June 30, 2010, the Division of Accounts and Reports will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions effective with the pay period beginning June 13, 2010 and ending June 26, 2010, paid July 9, 2010. However, Senate Sub for HB 2219 calls for an additional moratorium between April 1, 2011 and June 30, 2011. Collection of the employer’s contribution to KPERS Death and Disability Insurance will again be suspended at that time.
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 April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; between April 1, 2003 and June 30, 2004; and between March 1, 2009 and November 30, 2009.
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 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2011, employer rates are 7.39% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 11.39%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Division of Accounts and Reports, 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.
KEO:NTR:kao
Attachments A B C PDF
DATE: | June 25, 2010 | ||
---|---|---|---|
SUBJECT: |
Organization Dues and United Way Fees in Employee General Deduction |
||
EFFECTIVE DATE: | July 1, 2010 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Organization Dues and United Way Fees in Employee General Deduction |
Agencies are reminded that the integration of SHaRP and SMART now requires that the processing fee for United Way and Organizational Dues deductions be maintained in SHaRP as a separate general deduction code. The SHaRP conversion that occurred June 20-21 updated all existing employee general deduction rows for this change.
Going forward, agency personnel who enter organizational dues enrollments for their agency must now remember to enter a corresponding effective dated ORFXXX general deduction row when enrolling an employee in an organizational dues deduction (XXX represents the specific organizational dues number). For example, if an employee is being enrolled in ORG001, a corresponding effective dated general deduction row of ORF001 must also be entered with the Deduction Calculation Routine set to “Default to Deduction Table”.
In addition, agency personnel must now remember to enter a corresponding deduction end date on both the ORGXXX and ORFXXX general deduction row to stop an organizational dues deduction and fee.
The United Way fee rows will be established by a centrally run batch process following the completion of the annual United Way enrollment process. Agency personnel will continue to enter the United Way transactions, as they have in the past, by entering the total authorized deduction amount during the United Way enrollment period. Once the United Way agency entry period is completed, a centrally run batch process will establish the UTFXXX general deduction row and reduce the UTDXXX general deduction amount by $.06. The total donation amount authorized for deduction by the employee will continue to be reported on the employee’s W-2 form for tax purposes.
If an employee enrolls in United Way at any other time during the year, the agency will need to enter the authorized deduction amount less the $.06 fee for the UTDXXX code on the general deduction data, and establish a corresponding effective dated UTFXXX row with the Deduction Calculation Routine Set to “Default to Deduction Table”. If an employee requests during the year that their United Way deduction be ended early, agency personnel must remember to insert a deduction end date on both the UTDXXX and UTFXXX general deduction row.
Please note, if an employee participates in more than one Organization Dues or United Way deduction, a corresponding ORF/UTF general deduction row is required for each.
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DATE: | July 30 , 2008 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30 |
||
EFFECTIVE DATE: | Payroll Period Ending August 23, 2008 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code ‘ORG030’, will change from $26.85 to $27.45 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 10, 2008 and ending August 23, 2008, paid September 5, 2008.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 5, 2008.
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DATE: | August 20 , 2008 | ||
---|---|---|---|
SUBJECT: |
Addition of Earnings Codes for Kansas Mentors Program |
||
EFFECTIVE DATE: | August 24, 2008 | ||
CONTACT: |
Earl Brynds |
(785) 296-5375 |
|
APPROVAL: | |||
SUMMARY: |
Addition of Earnings Codes ‘KMP’ and ‘KME’ |
Executive Order 08-10 establishes the Kansas Mentors Program which provides a way for interested State of Kansas employees to volunteer their time as a mentor to help Kansas children.
All full-time, classified and unclassified employees in the Executive Branch are eligible to spend up to 90 minutes of regularly scheduled work time per pay period for the purpose of working with any program which is part of the Kansas Mentors Gold Star program.
To administer the Kansas Mentors Program, two new earnings codes will be established in the SHARP system effective August 24, 2008. The following earnings codes are eligible to be used starting with the pay period beginning August 24, 2008 through September 6, 2008 paid September 19, 2008.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
KMP |
Kansas Mentor Program |
KSMentor |
8/24/2008 |
KME |
Kansas Mentor Program – Exempt |
KSMentor |
8/24/2008 |
KMP should be used for Hourly employees and counts toward FLSA/Overtime. KME should be used for salaried employees. Both earnings codes count toward leave accrual (hours in pay status for leave accrual purposes).
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these new earnings codes in the SHARP system. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems.
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DATE: | August 27, 2008 | ||
---|---|---|---|
SUBJECT: |
SHARP Bi-Weekly Payroll Schedule for 2009 |
||
EFFECTIVE DATE: | Calendar Year 2009 | ||
CONTACT: |
Earl Brynds |
(785) 296-5375 |
|
APPROVAL: | |||
SUMMARY: |
SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2009 |
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2009. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. SHARP agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Attachment: Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2009 (pdf)
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2009 (pdf)
DATE: | September 24, 2008 | ||
---|---|---|---|
SUBJECT: |
KOSE Enrollment/Cancellation Processing |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
John Yeary Lori Kitch |
(785) 296-2033 (785) 354-1174 |
|
APPROVAL: | |||
SUMMARY: |
Enrollment and Cancellation Processing for KOSE Members |
The Kansas Organization of State Employees (KOSE) conducts membership drives throughout the year. Normally, enrollment forms are completed and submitted directly to KOSE by the employee. KOSE then forwards copies of the enrollment forms to John Yeary in the Labor Relations office of the Department of Administration for entry into SHARP. Under normal processing procedures for KOSE enrollment forms, agencies will not receive copies of the authorization/cancellation forms.
If, for any reason, agency personnel receive a KOSE enrollment/cancellation form directly from an employee, the agency should forward the form to the KOSE office at the following address:
KOSE
1301 SW Topeka Boulevard
Topeka, KS 66612
KOSE will then forward the form to Labor Relations for SHARP entry.
Questions regarding an employee’s payroll deduction for KOSE should be directed to John Yeary using the contact information noted above.
The enrollment/cancellation procedures outlined above apply only to enrollment/cancellation forms for KOSE. The procedures for enrollment/cancellation forms for all other employee organizations remain unchanged.
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DATE: | September 29, 2008 | ||
---|---|---|---|
SUBJECT: |
Gift Card Interface File and FBN Processing |
||
EFFECTIVE DATE: | Immediately | ||
CONTACTS: |
Eric Strate, KHPA |
(785) 291-3546 (785) 296-3979 |
eric.strate@khpa.ks.gov joyce.dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Interface File and Fringe Benefit Income Processing for the HealthQuest Personal Health Assessment Gift Cards |
Kansas Health Policy Authority (KHPA) HealthQuest implemented a program for plan year 2008 that included the incentive of a $50 Gift Card for completing the HealthQuest Personal Health Assessment (PHA). As noted in previous communications from KHPA, if participating employees do not select a gift card of their choice by October 31, 2008, a gift card will be chosen for them.
The Gift Card Award is a taxable fringe benefit to the plan participant for the total of all gift cards selected by or for the plan participant and their eligible dependent(s). For State employees and their eligible dependents, the taxes on the fringe benefit income will be deducted from the participating employee’s paycheck. Fringe Benefit Income is added to, and reported in, gross wages on the W-2.
For active State employees paid through SHARP, an interface will be processed to generate the necessary fringe benefit income (‘FBN’) earnings for inclusion on the employee’s 11/14/08 paycheck. Each agency will receive a report in their agency mailbox on the MVS which lists all employees in the agency who had ‘FBN’ earnings added to their 10/19/08 – 11/01/08 timesheet.
The following procedures will be used for State employees paid through SHARP who have left State employment since the completion of the gift card requirements:
1. KHPA will receive an error listing of all fringe benefit income earnings that could not be updated to employee time records through the interface process (employee termed/retired, incorrect data, etc.)
2. KHPA will contact individual agencies to resolve all errors generated due to retired/terminated employees, incomplete data, etc.
3. For terminated/retired employees, agency personnel must complete the following steps:
-
- Agency personnel must complete a pay affecting adjustment to the employee’s most current paycheck in the current calendar year that has not been previously adjusted and does not contain a garnishment or specific earnings codes (see further information regarding Agency Payroll Adjustment here.)
-
- If agency personnel are unable to perform the adjustment due to garnishments or previous adjustments to the paycheck, the agency must submit a completed form DA-180, Paycheck Reversal/Adjustment/Supplemental for central processing by the Division of Accounts and Reports Payroll Services Team. Instructions for requesting a Centrally Entered Adjustment can be found here.
Once entered, processing the adjustment to create the Fringe Benefit Income for a retired or terminated employee will create an employee arrearage for the amount of the employee tax liability on the fringe benefit income. It is at the agency’s discretion to either work to recover the amount of this arrearage from the individual employee, or to write-off the amount of the employee arrearage. Further information on the policies and procedures regarding uncollectible arrearages can be located at: : Info Circ 00-p-020 - Salary Overpayments and Outstanding Arrearages.
The HealthQuest Personal Health Assessment (PHA) program with the gift card incentive is scheduled to be offered again by Kansas Health Policy Authority (KHPA) HealthQuest in Plan Year 2009. Currently, a bi-weekly interface process has been proposed to provide the data necessary for SHARP and Regent agencies to generate the necessary fringe benefit income (‘FBN’) earnings for calendar year 2009 on a regular basis.
All questions regarding the gift card program and interfaces should be directed to Eric Strate, Kansas Health Policy Authority at (785) 291-3546. The Division of Accounts and Reports will be responsible for processing the interface file to update time sheets with the fringe benefit income earnings for active State employees and for processing DA-180 forms submitted by agencies for entry of adjustments which could not be processed by the agency. Questions regarding the processing of adjustments can be directed to Joyce Dickerson, Division of Accounts and Reports, Payroll Services at (785) 296-3979. Regent institutions will be provided an interface file from KHPA for their agency and are responsible for the generation of the necessary fringe benefit income transactions for their employees as well as any adjustment transactions for terminated or retired employees.
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DATE: | October 3, 2008 | ||
---|---|---|---|
SUBJECT: |
Addition of New Health Savings Accounts/Plan Carriers and Non- Tobacco User Discount |
||
EFFECTIVE DATE: | Pay Period Beginning December 14, 2008; Ending December 27, 2008; Paid January 9, 2009 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: |
Addition of New Health Savings Accounts/Plan Carriers and Non- Tobacco User Discount for Group Health Insurance Plan Year 2009 |
For Plan Year 2009, the Health Care Commission approved the addition of two new Health Savings Account (HSA) benefit options for each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. In addition to the current QHDHP offered through Coventry Healthcare, employees will be eligible to enroll in a QHDHP offered through Preferred Health Systems and United Healthcare. American Chartered Bank is the custodian for United Healthcare participants and HealthEquity is the custodian for Preferred Health Systems participants.
For all three QHDHP benefit options, the HSA annual employer contribution amounts for full-time employees will be $900 for single coverage and $1350 for dependent coverage. For part-time employees, they will be $675 for single coverage and $1012.56 for dependent coverage.
For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP benefit options will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the HSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Object Code 1950.
For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost. Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from the Kansas Health Policy Authority on a monthly, quarterly, or annual basis.
To accommodate the new HSA plans, new deduction codes will be added in SHARP effective for the payroll period beginning December 14 and ending December 27, 2008, paid January 9, 2009.
The new deduction codes for Preferred Health Systems are:
All employees except Regent 9-month:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y | HSASPL | HSA-PrefHlth Sngl Cov/High Ded | HSA-Single |
6Y | HSASPX | HSA-PrefHlth Single Cov/PT | HSA-SglePT |
6Z | HSADPP | HSA-PrefHlth Depnd Cov/HighDed | HSA-Depend |
6Z | HSADPX | HSA-Pref Hlth Depend Cov/PT | HSA-DepPT |
Regent 9-month (16deductions):
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y | HSXSPL | HSA-PrefHlth Sgl Cov 16 cy EEs | HSA-Single |
6Y | HSXSPX | HSA-PrefHlth Sgl Cov/PT 16 cy | HSA-SglePT |
6Z | HSXDPP | HSA-PrefHlth Dep Cov/16 cy EEs | HSA-Depend |
6Z | HSXDPX | HSA-PrefHlth Dep Cov PT/16 cy | HSA-DepPT |
The Division of Accounts and Reports, Payroll Services Section will remit the employee and employer monies to HealthEquity for all agencies.
The new deduction codes for United Healthcare are below.
All employees except Regent 9-month:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y | HSASUL | HSA- UnHlth Sngle Cov/High Ded | HSA-Single |
6Y | HSASUX | HSA- UnHlth Single Cov/PT | HSA-SglePT |
6Z | HSADUP | HSA- UnHlth Depend Cov/HighDed | HSA-Depend |
6Z | HSADUX | HSA- UnHlth Depend Cov/PT | HSA-DepPT |
Regent 9-month (16deductions):
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y | HSXSUL | HSA-UnHlth Sgl Cov 16 cy EEs | HSA-Single |
6Y | HSXSUX | HSA-UnHlth Sgl Cov/PT 16 cy | HSA-SglePT |
6Z | HSXDUP | HSA-UnHlth Dep Cov/16 cy EEs | HSA-Depend |
6Z | HSXDUX | HSA-UnHlth Dep Cov PT/16 cy | HSA-DepPT |
The Division of Accounts and Reports, Payroll Services Section will remit the employee and employer monies to American Chartered Bank for all agencies. The KPAYHSA2 remittance report for all three Health Savings Accounts is available in the agency MVS directories.
Effective 12/14/08, the following additions to the Fund/Index combination will be completed for the Department of Administration clearing fund for the new Health Savings Account Deductions:
AGENCY |
FUND |
INDEX |
|
---|---|---|---|
173 |
9051 |
9766 |
SHARP EE Index (United Healthcare) |
173 |
9051 |
9866 |
SHARP Employer Index (United Healthcare) |
173 |
9051 |
9767 |
SHARP EE Index (Preferred Health Systems) |
173 |
9051 |
9867 |
SHARP Employer Index (Preferred Health Systems) |
In addition, index code 9666 has been added to the STARS system for United Healthcare and index code 9667 has been added to the STARS system for Preferred Health Systems for each of the Regent’s Payroll Funds (98XX) to record the receipt of the new HSA options’ employer contribution by the individual Regent’s institutions. Attached is an updated copy of the “Index Codes for Agency and DOA Clearing Funds”. This document has been updated for the changes noted above and replaces the document issued with Informational Circular 08-P-031 dated May 7, 2008.
NEW CARRIER/PLAN ADDITIONS
For Plan Year 2009, the Health Care Commission approved United Healthcare as a new medical provider. Employees are eligible to enroll in United Healthcare for Plan A, Plan B and the QHDP. In addition, employees are eligible to enroll in the new QHDP now offered by Preferred Health Systems.
Effective 12/14/08, the following additions to the Fund/Index combination will be completed for the Department of Administration clearing fund for the new carrier and plans:
AGENCY |
FUND |
INDEX |
|
---|---|---|---|
173 |
7700 |
9787 |
SHARP EE Index (United Healthcare Plan A) |
173 |
7700 |
9887 |
SHARP Employer Index (United Healthcare Plan A) |
173 |
7700 |
9788 |
SHARP EE Index (United Healthcare Plan B) |
173 |
7700 |
9888 |
SHARP Employer Index (United Healthcare Plan B) |
173 | 7700 | 9789 | SHARP EE Index (United Healthcare QHDP) |
173 | 7700 | 9889 | SHARP Employer Index (United Healthcare QHDP) |
173 | 7700 | 9796 | SHARP EE Index (Preferred Health Systems QHDP) |
173 | 7700 | 9896 | SHARP Employer Index (Preferred Health Systems QHDP) |
The attached document “Index Codes for Agency and DOA Clearing Funds” has also been updated for the new index codes noted above. In addition, new deduction codes will be added in SHARP effective for the payroll period beginning December 14 and ending December 27, 2008, paid January 9, 2009. Attached is document “Deduction Codes for Group Health Insurance Plan Year 2009” showing the deduction codes established in SHARP for the new carrier and plans.
NON-TOBACCO USER DISCOUNT
For Plan Year 2009, the Health Care Commission approved a $ 20.00 per pay period non-tobacco user discount for all medical plans. Employees must complete a tobacco certification during Open Enrollment to receive the discount. To implement this discount, new deduction codes will be added in SHARP effective for the payroll period beginning December 14 and ending December 27, 2008, paid January 9, 2009. Attached is document “Deduction Codes for Group Health Insurance Plan Year 2009” showing the new deduction codes established for the non-tobacco user discount.
The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account benefit options, new Carrier/Plans deduction codes and the new deduction codes for the Non-Tobacco User discount. Regent’s institutions are responsible for ensuring that the new Health Savings Account benefit options, new Carrier/Plan deduction codes and the new deduction codes for the Non-Tobacco User discount are available in their individual systems. In addition, Regent’s institutions should be prepared to test their benefits interface and payroll files for the new deductions by November 1, 2008.
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Attachments:
DATE: | October 8, 2008 | ||
---|---|---|---|
SUBJECT: |
Key Payroll Processing Dates in November 2008 |
||
EFFECTIVE DATE: | November 2008 | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
Payroll processing schedule changes due to the November 2008 holidays. |
Tuesday, November 11, 2008 (Veterans' Day), Thursday, November 27, 2008 and Friday, November 28, 2008 (Thanksgiving Holiday) are designated holidays for state service in 2008.
Due to the holidays in November, variations have been made to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Monday, November 3, 2008
The Run C off-cycle for the period ending October 18, 2008 will be processed November 3, 2008. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be
dated November 6, 2008.
Time and leave interface agencies must have time and leave files for the period ending November 1, 2008 submitted to the Department of Administration for processing by 5:00 PM on November 3, 2008.
Tuesday, November 4, 2008
Paysheets for the on-cycle payroll for the period ending November 1, 2008 will be created on Tuesday, November 4, 2008. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 4, 2008 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 1, 2008 will also occur November 4, 2008; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM.
Wednesday, November 5, 2008
The second on-cycle preliminary pay calculation for the period ending November 1, 2008 will occur November 5, 2008.
Thursday, November 6, 2008
The third on-cycle preliminary pay calculation for the period ending November 1, 2008 will occur November 6, 2008.
Regents’ on-cycle payroll files for the period ending November 1, 2008 are also due to the Department of Administration by 6:00 AM on November 6, 2008. (These files would normally be due Friday, November 7, 2008.)
Friday, November 7, 2008
Final pay confirmation for the on-cycle payroll for the period ending November 1, 2008 will occur November 7, 2008. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 7, 2008 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 7, 2008 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 1, 2008 must be received by the Department of Administration by 5:00 PM on November 7, 2008.
Sunday, November 9, 2008
The Regents’ on-cycle files for the period ending November 1, 2008 will be processed.
Monday, November 10, 2008
The Run A off-cycle for the period ending November 1, 2008 will be processed November 10, 2008. Paychecks for the Run A off-cycle will be dated November 14, 2008.
Regents’ Run B off-cycle payroll files for the period ending November 1, 2008 must be received by the Department of Administration by 5:00 PM on November 10, 2008 in order to be processed on Wednesday, November 12, 2008. (These files would normally be due Tuesday, November 11, 2008)
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 1, 2008 will be posted to STARS during Monday night's STARS batch processing cycle. (This process would normally occur Tuesday, November 11, 2008.)
Tuesday, November 11, 2008
Veterans' Day Holiday
Wednesday, November 12, 2008
The Run B off-cycle for the period ending November 1, 2008 will be processed November 12, 2008. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 17, 2008.
Thursday, November 13, 2008
Time and leave interface agencies must have time and leave files for the period ending November 15, 2008 submitted to the Department of Administration for processing by 5:00 PM on November 13, 2008. (These files would normally be due Monday, November 17, 2008.)
Friday, November 14, 2008
Payday for the payroll period ending November 1, 2008.
Regents’ Run C off-cycle payroll files for the period ending November 1, 2008 must be received by the Department of Administration by 5:00 PM on November 14, 2008.
Monday, November 17, 2008
Paysheets for the on-cycle payroll for the period ending November 15, 2008 will be created on Monday, November 17, 2008. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 17, 2008 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, November 18, 2008.)
The first on-cycle preliminary pay calculation for the period ending November 15, 2008 will also occur November 17, 2008, rather than Tuesday, November 18, 2008; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM November 17, 2008. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 15, 2008.
The Run C off-cycle for the period ending November 1, 2008 will be processed November 17, 2008. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 20, 2008.
Tuesday, November 18, 2008
The second on-cycle preliminary pay calculation for the period ending November 15, 2008 will occur November 18, 2008.
Wednesday, November 19, 2008
Final pay confirmation for the on-cycle payroll for the period ending November 15, 2008 will occur November 19, 2008. (Final pay confirmation would normally occur Friday, November 21, 2008). All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 19, 2008 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 19, 2008 in order to be reflected in the final paycheck created for the employee.
Regents’ on-cycle payroll files for the period ending November 15, 2008 are due to the Department of Administration by 6:00 AM on November 19, 2008. (These files would normally be due Friday, November 21, 2008.)
Thursday, November 20, 2008
Regents’ Run A off-cycle payroll files for the period ending November 15, 2008 must be received by the Department of Administration by 5:00 PM on November 20, 2008. (These files would normally be due Friday, November 21, 2008.) The Regents’ on-cycle files for the period ending November 15, 2008 will be processed.
Friday, November 21, 2008
The Run A off-cycle for the period ending November 15, 2008 will be processed November 21, 2008. (This off-cycle would normally be scheduled for Monday, November 24, 2008.) Paychecks for the Run A off-cycle will be dated November 26, 2008.
Monday, November 24, 2008
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 15, 2008 will be posted to STARS during Monday night's STARS batch processing cycle. (This process would normally occur Tuesday, November 25, 2008.)
Tuesday, November 25, 2008
Regents’ Run B off-cycle payroll files for the period ending November 15, 2008 must be received by the Department of Administration by 5:00 PM on November 25, 2008.
Wednesday, November 26, 2008
Payday for the payroll period ending November 15, 2008. (It would normally be Friday, November 28, 2008)
The Run B off-cycle for the period ending November 15, 2008 will be processed November 26, 2008. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated December 3, 2008. (Paychecks would normally be dated Monday, December 1, 2008.)
Regents’ Run C off-cycle payroll files for the period ending November 15, 2008 must be received by the Department of Administration by 5:00 PM on November 26, 2008. (These files would normally be due Friday, November 28, 2008.)
Thursday, November 27, 2008
Thanksgiving Holiday
Friday, November 28, 2008
Thanksgiving Holiday
Attached is a calendar for the month of November 2008, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.state.ks.us/sharp/infolist.htm.
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Attachment: November 2008 Payroll Calendar (pdf)
DATE: | October 14, 2008 | ||
---|---|---|---|
SUBJECT: |
Change in Organization Dues Deduction Amounts |
||
EFFECTIVE DATE: | Payroll Period Ending October 18, 2008 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning October 5, 2008 and ending October 18, 2008, paid October 31, 2008 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.35 or Less | $ 588.00 or Less | $ 9.85 |
ORG002 | $ 7.36 - $ 8.51 | $ 588.01 - $ 680.80 | $ 10.43 |
ORG003 | $ 8.52 - $ 9.39 | $ 680.81 - $ 751.20 | $ 10.95 |
ORG004 | $ 9.40 - $ 10.35 | $ 751.21 - $ 828.00 | $11.50 |
ORG005 | $ 10.36 - $ 11.41 | $ 828.01 - $ 912.80 | $12.05 |
ORG006 | $ 11.42 or Greater | $ 912.81 - or Greater | $12.60 |
ORG888 | KU Medical Center - Nurses | $12.60 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $ 10.23 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after October 31, 2008.
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DATE: | October 20, 2008 | ||
---|---|---|---|
SUBJECT: |
Change in Social Security Base Rate |
||
EFFECTIVE DATE: | January 1, 2009 | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: | |||
SUMMARY: |
Social Security Wage Base Increase to $106,800 effective January 1, 2009 |
The Social Security wage base for OASDI will be $106,800 for calendar year 2009. This is a $4,800 increase from the 2008 wage base of $102,000. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2009 will be $6,621.60. There continues to be no limit on wages subject to the Medicare tax in 2009. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $6,621.60 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | October 23, 2008 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2009 | ||
EFFECTIVE DATE: | January 1, 2009 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
Sunni Zentner | (785) 296-7058 | sunni.zentner@da.ks.gov | |
APPROVAL: | |||
SUMMARY: |
2009 Deferred Compensation and Tax Sheltered Annuity Limits |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2009 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit is increased from the lesser of $15,500 or 100% of includible compensation (2008 calendar year limit) to the lesser of $16,500 or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit is increased from $31,000 (2008 calendar year limit) to $33,000. The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $5,500 for 2009 to a total of $22,000. The increase for 2008 was $ 5,000 to a total of $ 20,500.
Please note that the two different catch-up provisions cannot be used concurrently.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2009 is the lesser of $49,000 or 100% of compensation, increased from $46,000 for 2008.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $230,000 (for 2008) to $245,000 (for 2009). The $245,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $24,500 ($245,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $34,300 ($245,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $345,000 (for 2008) to $360,000 (for 2009). However, participants should note their maximum annual compensation limit will be $350,000, since the $350,000 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $49,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $15,500 for 2008 to $16,500 for 2009. The age 50 or older catch-up provision is increased from $5,000 for 2008 to $5,500 for 2009. Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on an annual contribution by $5,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($16,500 for 2009) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
KEO:NTR:kao
DATE: | November 21, 2008 | ||
---|---|---|---|
SUBJECT: | Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 13, 2008 and December 27, 2008 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Changes to the payroll processing schedule for the payroll periods ending December 13, 2008 and December 27, 2008 due to December 26, 2008 being designated a state holiday |
As a result of Governor Sebelius declaring Friday, December 26, 2008 as an additional state holiday for 2008, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 13, 2008 and December 27, 2008:
Friday, December 12, 2008
Payday for the payroll period ending November 29, 2008.
Time and leave interface agencies must have time and leave files for the period ending December 13, 2008 submitted to the Department of Administration for processing by 5:00 PM on December 12, 2008. (These files would normally be due Monday, December 15, 2008.)
Monday, December 15, 2008
The Run 'C' off-cycle for the payroll period ending November 29, 2008 continues to be scheduled for December 15, 2008. The check issue date for the Run 'C' off-cycle will remain Thursday, December 18, 2008.
Paysheets for the on-cycle payroll for the period ending December 13, 2008 will be created on Monday, December 15, 2008. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 15, 2008 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, December 16, 2008.)
The first on-cycle preliminary pay calculation for the period ending December 13, 2008 will also occur December 15, 2008, rather than Tuesday, December 16, 2008; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. December 15, 2008. Please note that there will only be two SHARP on-cycle preliminary payroll calculations for the pay period ending December 13, 2008.
Tuesday, December 16, 2008
The second on-cycle preliminary pay calculation for the period ending December 13, 2008 will occur December 16, 2008.
Wednesday, December 17, 2008
Final pay confirmation for the on-cycle payroll for the period ending December 13, 2008 will occur December 17, 2008. (Final pay confirmation would normally occur Friday, December 19, 2008). All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on December 17, 2008 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on December 17, 2008 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Wednesday, December 24, 2008. (It would normally be Friday, December 26, 2008.)
Regents’ on-cycle payroll files for the period ending December 13, 2008 are due to the Department of Administration by 6:00 AM on December 17, 2008. (These files would normally be due Friday, December 19, 2008.)
Thursday, December 18, 2008
The Regents’ on-cycle files for the period ending December 13, 2008 will be processed. (These files would normally be processed on Saturday, December 20, 2008.)
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 13, 2008 must be received by the Department of Administration by 5:00 pm. on December 18, 2008 in order to be processed on Friday, December 19, 2008. (These files would normally be due Friday, December 19, 2008.)
Friday, December 19, 2008
The Run ‘A’ off-cycle for the period ending December 13, 2008 will be processed December 19, 2008. (This off-cycle would normally be on Monday, December 22, 2008.) SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will be dated Wednesday, December 24, 2008, rather than Friday, December 26, 2008.
Tuesday, December 23, 2008
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 13, 2008 must be received by the Department of Administration by 5:00 pm. on December 23, 2008 in order to be processed on Wednesday, December 24, 2008.
Wednesday, December 24, 2008
Payday for the payroll period ending December 13, 2008. (It would normally be Friday, December 26, 2008)
The Run 'B' off-cycle for the payroll period ending December 13, 2008 continues to be scheduled for December 24, 2008. The check issue date for the Run 'B' off-cycle will be changed to Wednesday, December 31, 2008. (Checks would normally be dated Monday, December 29, 2008.)
Time and leave interface agencies must have time and leave files for the period ending December 27, 2008 submitted to the Department of Administration for processing by 5:00 PM on December 24, 2008. (The interface was originally scheduled on December 26, 2008.)
Thursday, December 25, 2008
Christmas Holiday
Friday, December 26, 2008
Christmas Holiday
Monday, December 29, 2008
Paysheets for the on-cycle payroll for the period ending December 27, 2008 will be created on Monday, December 29, 2008. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 29, 2008 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, December 30, 2008.)
The first on-cycle preliminary pay calculation for the period ending December 27, 2008 will also occur December 29, 2008, rather than Tuesday, December 30, 2008; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. December 29, 2008.
The Run 'C' off-cycle for the payroll period ending December 13, 2008 continues to be scheduled for December 29, 2008. The check issue date for the Run 'C' off-cycle will remain Friday, January 2, 2009.
Attached is a revised calendar for the month of December 2008 that highlights these payroll processing schedule changes due to the December 26th additional holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment: December 2008 calendar pdf
KEO:NTR:ccl
DATE: | November 25, 2008 | ||
---|---|---|---|
SUBJECT: | December 2008 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
December 2008 Payroll Processing |
As 2008 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2008 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2008 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2009 balances; a corrected W-2 (Form W-2C) for 2008 will not be issued for the employee involved.
FINAL 2008 PAYCHECK
The final on-cycle paychecks for calendar year 2008 will be issued December 24, 2008. Paychecks will be mailed on December 23, 2008. Encumbrances for the December 24, 2008 on-cycle paychecks will process in STARS on Monday night, December 22, 2008. The final off-cycle paychecks for calendar year 2008 will be issued on December 31, 2008 (generated from the off-cycle processed on December 24, 2008).
PAYCHECK REVERSALS
Any 2008 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 24, 2008 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 24, 2008 will update calendar year 2009 balances and will not be reflected in the employee’s 2008 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 24, 2008 to enter paycheck adjustment requests for any 2008 paychecks. Adjustments processed in the December 24, 2008 off-cycle payroll will be reflected on the employee’s 2008 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2008 paycheck has been previously adjusted and requires additional adjustment, form DA-180, ‘SHARP Paycheck Reversal/Adjustment/Supplemental’, should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 17, 2008.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 17, 2008 for inclusion in the December 24, 2008 off-cycle. However, if a large volume of DA-180 forms is received on the December 17, 2008 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2008 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 24, 2008 which are adjusting paychecks issued prior to January 1, 2009 will not result in a W-2C; the adjustment will update the employee’s 2009 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 24, 2008 will update the employee’s 2009 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 13, 2008, paid December 24, 2008 are due to the Department of Administration by 6:00 a.m. on December 17, 2008.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2008 Paycheck Reversals
Regent Institutions must submit all transmittals for 2008 paycheck reversals by 5:00 p.m. on Tuesday, December 23, 2008 in order to update the employee’s 2008 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2009 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2009 submitted after 5:00 p.m. on December 23, 2008 should default the pay adjust check date to January 1, 2009.
2008 Adjustments and Supplementals
In order to update employee balances for 2008, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Tuesday, December 23, 2008. The Run B off-cycle for the pay period ending December 13, 2008 generated on the night of Wednesday, December 24, 2008 will have a check issue date of December 31, 2008; all activity for this off-cycle will be reflected in the employees’ 2008 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2008 date.
2009 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2009, any adjustments or supplementals submitted after 5:00 p.m. on Tuesday, December 23, 2008, will be considered to be 2009 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2009 business, the employee’s 2009 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2009 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2009, agencies should default the pay adjust check date to January 1, 2009).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2009, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2009 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2009 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2008 deadline for the December 24, 2008 Run B’s off-cycle payroll will not be processed until the January 20, 2009 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 12, 2009. The deadline for submitting payroll interface files for the January 20, 2009 off-cycle is 5:00 p.m. on Friday, January 16, 2008.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2008 United Way or Community Health Charities contributions should be dated between December 14, 2008 and December 27, 2008 in order for the last 2008 deduction to be taken on the paycheck issued December 24, 2008. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2009, agencies can enter a new row effective-dated between December 14, 2008 and December 27, 2008 in order for the first deduction for United Way or Community Health Charities for 2009 to be taken on the January 9, 2009 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 13, 2009 should be entered.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding
and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar
year. To facilitate this requirement, an email notification will be sent on December 3, 2008 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced
EIC payments. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 3rd to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles. The worklist can be accessed two ways in SHARP: from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home. For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2009. If your agency has no employees claiming an exemption from federal withholding and/or advanced EIC, the worklist will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2009 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 16, 2008 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 22, 2008 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ and/or ‘New W-5 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2009.
The KPAY320 will be processed the evening of December 22, 2008. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2009 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2009 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions and/or stop any advance EIC payments for paychecks with a 2009 pay date.
For any 2009 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 22, 2008 and January 1, 2009, agency personnel will need to enter the data with a January 2, 2009 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2009 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change. See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4. The 2009 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 22, 2008 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2009. The new tax data row will be dated January 1, 2009. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2009 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
Deduction Information
All deductions for calendar year 2009 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
- Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 24, 2008. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. Any arrearage collections made by personal reimbursement that are collected after December 17, 2008, and prior to December 24, 2008, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2008 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2008 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 13, 2008 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 p.m. on December 29, 2008 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 29, 2008 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 24, 2008. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 29, 2008 and January 5, 2009. W-2 forms will be mailed on or before January 31, 2009. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2008 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment: December 2008 calendar pdf
KEO:NTR:kao
DATE: | December 1, 2008 | ||
---|---|---|---|
SUBJECT: | One-time Exception to Arrearage Collection Procedures | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
One-time exception to minimum collection procedures for Gift Card Arrearages less than or equal to $25 |
Informational Circular 00-P-020 identifies the minimum collection procedures required before an arrearage can be determined to be uncollectible. A one-time exception to these procedures has been granted by the Director of Accounts and Reports only for the arrearages less than or equal to $25 created due to the recent adjustments required to record the fringe benefit income for the gift cards received for completion of the Personal Health Assessment. For arrearages less than or equal to $25 which were created as a result of a gift card fringe benefit transaction, it is at the agency’s discretion to choose to either pursue collection from the employee or write off the arrearage amount. The write off can be accomplished by immediately notifying the Director of Accounts and Reports of the arrearages which should be written off based on the agency determination that it is not cost effective to pursue recovery for the arrearage. For all non-gift card arrearages, and for all gift card arrearages greater than $25, the policies and procedures of Informational Circular 00-P-020 remain in effect.
KEO:NTR:ccl
DATE: | December 2, 2008 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2009 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | cindy.lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
IRS Changes Cents-Per-Mile Valuation Rule for |
The Internal Revenue Service (IRS) has decreased the standard mileage rate from 58.5 cents to 55 cents beginning January 1, 2009 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 55 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2009 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,000. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
KEO:NTR:ccl
DATE: | December 5, 2008 | ||
---|---|---|---|
SUBJECT: | 2009 Percentage Method Tables for Federal Tax Withholding | ||
EFFECTIVE DATE: | January 1, 2009 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | sunni.zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2009. |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2009. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2009. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,650 for 2009.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous years, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 3, 2008 to all SHARP employees who were exempt from federal withholding in 2008. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2009. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2009 W-4s. As of this date, the IRS has not issued the 2009 Form W-4 - Employee’s Withholding Allowance Certificate. Once the W-4 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/SHARP/infolist.htm. Employees should submit their new W-4s by December 16, 2008 to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 22, 2008 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2009.
The KPAY320 will process during the batch cycle generated on the evening of December 22, 2008. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2009 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’. (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2008 in which the ‘New W-5 Received’ radio button is not checked. The update will insert a January 1, 2009 effective dated row with an EIC Status of ‘Not Applicable’.)
For any Forms W-4s for 2009 (or Forms W-5s for 2009 for employees claiming the advance EIC) received between December 22, 2008 and January 1, 2009, agency personnel will need to enter the data with a January 2, 2009 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 2, 2009 in order to be reflected in the on-cycle paycheck dated January 9, 2009. Agency Workflow Administrators will also need to change the effective date to January 2, 2009 for any electronic FormsW-4s for 2009 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2008 must file a new 8233 form for calendar year 2009 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 22, 2008 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2009. The new tax data row will be dated January 1, 2009. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2008 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 22, 2008. The report will be available in the agency directory on the MVS on Tuesday, December 23. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
KEO:NTR:ewb
Attachment: Tables for Percentage Method of Withholding pdf
DATE: | December 5, 2008 | ||
---|---|---|---|
SUBJECT: | New Advance Earned Income Credit Tables for 2009 | ||
EFFECTIVE DATE: | January 1, 2009 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | sunni.zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2009 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2009. The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2009. In order to use the attached tables, income must be annualized. When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
As of this date, the IRS has not issued the 2009 Form W-5 - Earned Income Credit Advance Payment Certificate. Once the W-5 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/SHARP/infolist.htm. The 2008 Form W-5 expires on December 31, 2008. The 2009 Form W-5 must be filed with the employer before advance 2009 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2009 earned and adjusted gross income will each be less than $35,463.00 for single employees or $38,583.00 if filing jointly (include spouse’s income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the advance EIC for 2009 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2009.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
An e-mail notification was sent on December 4, 2008 to all SHARP employees receiving advance EIC payments in 2008. The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2009. The notification was sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
Agency personnel have until 6:00 p.m. on December 22, 2008 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2009. It is important that agency personnel check the ‘New W-5 Received’ radio button on the employee’s ‘Federal Tax Data’ page for the new effective-dated row that is entered.
The KPAY320 will process in the batch cycle generated the evening of December 22, 2008. This process will search for employees who were sent a W-5 notification. If a new W-5 has not been received, a January 1, 2009 effective-dated row will be inserted in the employee’s Tax Data record with an EIC status of ‘Not Applicable’. (Please note the KPAY320 process will also update all employees claiming exemption from federal withholding tax in 2008, if a new W-4 has not been received. The update will place a January 1, 2009 effective-dated row in the employee’s tax record with a marital status of ‘single’ and zero exemptions.)
For any Forms W-5 for 2009 (or Forms W-4 for 2009 for employees claiming exemption from withholding) received between December 22, 2008 and January 1, 2009, agency personnel will need to enter the data with a January 2, 2009 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 2, 2009 in order to be reflected in the on-cycle paycheck dated January 9, 2009. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 22, 2008. The report will be available in the agency directory on the MVS on Tuesday, December 23.
The Department of Administration will make all of the necessary changes in the computation of the advance EIC for SHARP agencies. Regent’s institutions are responsible for implementing the new advance EIC rates in their respective payroll systems.
KEO:NTR:ewb
Attachment: Advance Earned Income Credit Formulas pdf
DATE: | December 23, 2008 | ||
---|---|---|---|
SUBJECT: | Increase in Parking Fees for City of Topeka Parking Garages | ||
EFFECTIVE DATE: | Payroll Period Beginning December 28, 2008 and Ending January 10, 2009, Paid January 23, 2009 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | cindy.lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Increase in Parking Fees for City of Topeka Parking Garages |
Effective January 1, 2009, the City of Topeka is increasing its monthly parking rates, including reserved stalls, for all City parking garages. This rate increase impacts State of Kansas agencies with contracts for parking in the Centre City Garage (9th and Kansas) and the 512 Jackson garage. The monthly parking rates will increase to $66.00 a month for non-reserved spaces and $73.75 a month for reserved spaces. Employees who park in these garages will see their parking deduction increase as follows starting with the payroll period beginning December 28, 2008 and ending January 10, 2009, paid January 23, 2009:
Garage Address |
Dept/Agy |
Rate |
Parking Deduction Code |
New bi-weekly deduction effective for pped 1/10/2009 |
Admin Fee Deduction Code |
New Admin Fee effective for pped 1/10/2009 |
---|---|---|---|---|---|---|
512 Jackson |
Dept. on Aging |
Standard |
PPKA02 |
$18.92 |
PKAD04 |
$1.45 |
APKA02 |
$18.92 |
PKAD04 |
$1.45 |
|||
Centre City Garage |
Dept. of Agriculture |
Standard |
PPKA07 |
$30.46 |
PKAD11 |
$2.33 |
APKA07 |
$30.46 |
PKAD11 |
$2.33 |
|||
Reserved |
PPKA57 |
$34.04 |
PKAD50 |
$2.60 |
||
APKA57 |
$34.04 |
PKAD50 |
$2.60 |
|||
Centre City Garage |
Ethics Commission |
Standard |
PPKA08 |
$30.46 |
PKAD11 |
$2.33 |
APKA08 |
$30.46 |
PKAD11 |
$2.33 |
|||
Reserved |
PPKA58 |
$34.04 |
PKAD50 |
$2.60 |
||
APKA58 |
$34.04 |
PKAD50 |
$2.60 |
|||
Centre City Garage |
Conservation Commission |
Standard |
PPKA09 |
$30.46 |
PKAD11 |
$2.33 |
APKA09 |
$30.46 |
PKAD11 |
$2.33 |
|||
Reserved |
PPKA59 |
$34.04 |
PKAD50 |
$2.60 |
||
APKA59 |
$34.04 |
PKAD50 |
$2.60 |
|||
Centre City Garage |
Kansas Water Office |
Standard |
PPKA10 |
$30.46 |
PKAD11 |
$2.33 |
APKA10 |
$30.46 |
PKAD11 |
$2.33 |
|||
Reserved |
PPKA60 |
$34.04 |
PKA D50 |
$2.60 |
||
APKA60 |
$34.04 |
PKAD50 |
$2.60 |
|||
Centre City Garage |
State Board of Technical Professions |
Reserved |
PPKA61 |
$34.04 |
PKAD50 |
$2.60 |
APKA61 |
$34.04 |
PKAD50 |
$2.60 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
KEO:NTR:ccl
DATE: | January 9, 2009 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2008 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Information Pertaining to Employee 2008 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2008 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2008. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 28, 2009.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2008 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2008 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2008. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2008 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2009. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial
within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2008 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2003 through 2008, agencies are strongly encouraged to recommend that employees use the ‘W-2 Reissue Request’ functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/ <------- Broken link. After logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2008, 2007, 2006, 2005, 2004, or 2003) the reissued W-2 is needed. Duplicate W-2’s for 2003 - 2007 are currently available, and duplicate W-2’s for 2008 will be available starting on Wednesday, January 21, 2009. Please note that duplicate W-2’s for the year 2003 will no longer be available after mid-April 2009.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2’s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2008 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2008 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Payroll Services at telephone number 785-296-2311.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 24, 2008 and off-cycle checks dated December 31, 2008 are included in the 2008 W-2 amounts.
Attachments
2008 W-2 Wage and Tax Statement Calculations (xls)
Sample KPAY318.SQR (xls)
KEO:NTR:kao
DATE: | January 9, 2009 | ||
---|---|---|---|
SUBJECT: | 2009 W-2 Production Report Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
2009 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2009 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2009 W-2 production reports are scheduled to be generated:
- Friday, February 20, 2009
- Friday, March 20, 2009
- Friday, April 17, 2009
- Friday, May 15, 2009
- Friday, June 12, 2009
- Friday, July 10, 2009
- Friday, August 7, 2009
- Friday, September 4, 2009
- Friday, October 2, 2009
- Friday, October 30, 2009
- Friday, November 13, 2009
- Wednesday, November 25, 2009
- Wednesday, December 9, 2009
- Monday, December 14, 2009
- Monday, December 21, 2009
- Monday, December 28, 2009
- Wednesday, December 30, 2009 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by Accounts and Reports. Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner. No action is required by the agency on the KTXPR55. Once the W-2’s for 2009 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
KEO:NTR:kao
DATE: | January 27, 2009 | ||
---|---|---|---|
SUBJECT: | Addition of Form 8233 Data to the Regent Inbound MRI | ||
EFFECTIVE DATE: | March 16, 2009 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Form 8233 Requirement Discontinued and New Fields Added to Regent Inbound MRI |
Effective immediately, Regent institutions should discontinue submitting copies of Form 8233 (Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual) to the Division of Accounts and Reports. Under the previous procedure, these forms were completed by employees at Regent institutions, recorded in the agency’s system, mailed to the Payroll Section of Accounts and Reports, and then manually entered into SHARP. At one time the State of Kansas was required to mail these forms to the IRS at the end of the year along with Form 1042-S, but that is no longer a requirement. The new procedure will require the Regent institution to retain Form 8233 and the option to send the data to the Payroll Section on the Regents’ inbound management reporting interface (MRI). The new file layout will go into effect for all Regent MRIs submitted for processing on or after March 16, 2009. Additionally, Regents institutions will have the option to manually enter the necessary data on-line in SHARP instead of using the inbound MRI.
Two new fields have been added to the Federal Tax Data Record on the Regents’ inbound MRI to allow Regent institutions to enter information from Form 8233. The two fields added are “Form 8233 Received” and “Form 8233 in Effect Date”. A copy of the updated MRI layout is attached to this circular; the Federal Tax Data Record is located on page 14 of the layout and is the only record being changed at this time. The “Form 8233 Received” field should be populated with either values ‘N’ (No), ‘Y’ (Yes), or ‘X’ (Not Applicable). If this field is populated with ‘Y’, then the field “Form 8233 in Effect Date” becomes a required field. This date field should be populated using a CCYY-MM-DD format and should record the date Form 8233 was submitted.
As noted in the instructions for Form 8233 (available on the IRS website at: http://www.irs.gov/pub/irs-pdf/i8233.pdf), within 5 days of acceptance, one copy of the form should be forwarded to the IRS at the following address:
Internal Revenue Service
International Section
P.O. Box 920
Bensalem, PA 19020-8518
Regents institutions should continue to send the 8233 forms into the IRS as directed in the instructions. A copy of each form needs to be retained at the agency for no less than four calendar years. Also, the KPAY249 report will continue to be provided in agency MVS mailboxes and agencies need to continue resolving any errors that appear on the report. Form 8233s received by the Payroll Section of Accounts and Reports thus far for calendar year 2009 will be returned to the respective Regents institution.
Any questions regarding this information should be directed to Sunni Zentner in the Payroll Section of Accounts and Reports at (785) 296-7058. Any questions regarding the testing of these changes on the Regents’ inbound MRI should be directed to Kathy Ogle in the Payroll Section of Accounts and Reports at (785) 296-2290.
Attachment - MRI Record Layout [excel]
KEO:NTR:kao
DATE: | January 30, 2009 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Code ‘MDP’ for Military Differential Pay | ||
EFFECTIVE DATE: | January 1, 2009 | ||
CONTACT: | Earl Brynds | (785) 296-5376 | earl.brynds@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Addition of New Earnings Code for Military Differential Pay due to Changes by the IRS |
Currently, a differential is available, limited to $ 1,000 per pay period, for eligible State of Kansas employees who are activated to full-time military duty, mobilized and deployed for more than 30 consecutive days in support of a military operation to defend our nation, on or after July 1, 2008. This military differential is paid directly to the eligible employees through STARS and reported to the Internal Revenue Service (IRS) on Form 1099 MISC.
Effective January 1, 2009, the IRS rules related to Military Differential Payments have changed. Pursuant to the Heroes Earning Assistance and Relief Tax Act (Pub. L. No. 110-245), all such payments made January 1, 2009 and forward are considered wages for federal income tax purposes and must be reported on the employee’s W-2 forms. However, these payments are still not subject to FICA. Because of these changes, the military differential will now be processed and paid to eligible employees out of the SHARP system. Note that this change does not impact Military Activation payments. Approved Military Activation payments for eligible employees will continue to be processed in STARS.
To administer the military differential from SHARP, a new earnings code will be established effective January 1, 2009. The following earnings code should be used to process military differential pay to eligible employees:
Earnings Code |
Description |
Short Description |
Effective Date |
---|---|---|---|
MDP | Military Differential Pay | MilDifPay | 1/1/2009 |
The new earnings code is subject to Federal and State withholding taxes but is not subject to FICA. Additionally, ‘MDP’ is subject to UCI, Worker’s Compensation, State Leave and KPERS. Also, a new expenditure sub-object code (1430) has been established in STARS for Military Differential Pay. For more information regarding this new sub-object code refer to Accounts and Reports Informational Circular 09-A-004. Agencies should use the ‘MDP’ earnings code to process any military differential pay for eligible employees starting with the pay period beginning January 25, 2009 through February 7, 2009 paid February 20, 2009.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents’ institutions are responsible for implementing the new earnings code in their payroll systems.
KEO:NTR:ewb
DATE: | January 30, 2009 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Code for No Response Time | ||
EFFECTIVE DATE: | January 25, 2009 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | cindy.lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Addition of Earnings Code ‘NOR’ for Eligible KOSE Employees |
The Unit 1 Supplemental Agreement between the State of Kansas and the Kansas Organization of State Employees (KOSE) that became effective January 25, 2009, stipulates that in the event eligible KOSE non-exempt employees are sent home early from their regularly scheduled shift in anticipation of call-back but are not called, they shall be paid for the no response time constituting the remainder of that shift.
A new earnings code has been added to SHARP effective January 25, 2009 to administer the no response time earnings. The following earnings code is eligible to be used starting with the pay period beginning January 25, 2009 through February 7 , 2009 paid February 20, 2009.
Earnings Code |
Description |
Short Description |
Effective Date |
---|---|---|---|
NOR | No Response Time | NoRespTime | 01/25/2009 |
NOR should be used for eligible non-exempt employees only and counts toward FLSA/Overtime and leave accrual (hours in pay status for leave accrual purposes).
The Division of Accounts and Reports, 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.
KEO:NTR:ccl
DATE: | February 10, 2009 | ||
---|---|---|---|
SUBJECT: | Freeze in Changes to SHARP Application for Duration of FMS/Sunflower Project |
||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Kent Olson | (785) 296-2314 | kent.olson@da.ks.gov |
APPROVAL: | Kent Olson, Director, Accounts and Reports Project Director, Sunflower Project George Vega, Director, Division of Personnel Services Denise Moore, Director, DISC Sponsor, Sunflower Project Duane Goossen, Budget Director Sponsor, Sunflower Project Carol Foreman, Deputy Director of DoA Administrative Services Sponsor, Sunflower Project |
||
SUMMARY: |
SHARP Programming Freeze for the Duration of the FMS Project |
The State of Kansas is currently in the process of implementing a new Statewide Financial Management System (FMS). The Sunflower Project Team, in conjunction with the Department of Administration and Executive Sponsors, is dedicated to bringing the Financial Management System online for all agencies on July 1, 2010. The new FMS system will use PeopleSoft Financial Management as the software and will be fully integrated with the Statewide Human Resource and Payroll System (SHARP).
In order to provide the most stable production, development and testing environments possible for the extensive design, programming, and testing required for the success of the Sunflower Project, a programming freeze is being instituted for the Statewide Human Resource and Payroll (SHARP) system. Effective immediately, only changes required to comply with legislative mandates, remain current with system maintenance, or resolve production processing issues will be applied to the SHARP system. The implementation of this freeze will minimize disruption to development, testing and production environments and maximize the resources available to assist in the successful implementation of the new Financial Management System.
Requests for programming action or changes that fall outside of the areas noted above will be reviewed and prioritized for action after a stable processing environment is established following the go live date of July 1, 2010.
KEO:NTR:ewb
DATE: | February 23, 2009 | ||
---|---|---|---|
SUBJECT: | Employer KPERS Death and Disability Insurance Contributions | ||
EFFECTIVE DATE: | March 1, 2009 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | cindy.lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of March 1, 2009 to June 30, 2009 |
SB23, passed in the 2009 legislative session, suspends employer contributions for KPERS Death and Disability Insurance from March 1, 2009 to June 30, 2009. As a result of this legislation, the Division of Accounts and Reports will not collect or remit the employer portion of KPERS Death and Disability insurance contributions for pay periods that have an original check issue date on and after March 6, 2009. The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning February 8, 2009 and ending February 21, 2009, paid March 6, 2009. Please note that the KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after March 1, 2009 for pay period end dates prior to February 21, 2009 will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after February 8, 2009, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, then imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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DATE: | February 27, 2009 | ||
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SUBJECT: | Revised 2009 Percentage Method Tables for Federal Tax Withholding and Advance Earned Income Credit Payment Tables | ||
EFFECTIVE DATE: | March 20, 2009 | ||
CONTACT: | Jennifer Holthaus | (785) 368-6313 | jennifer.holthaus@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Revised Federal Withholding Tax Tables and Revised Advance Earned Income Credit Payment Tables Effective for Paychecks Issued On or After March 20, 2009 |
The Internal Revenue Service (IRS) has issued revised tables for the percentage method of withholding and advance earned income credit (EIC) payment tables for 2009. These tables were revised due to changes to the tax law made in the American Recovery and Reinvestment Act of 2009. The attached tables are to be used in computing federal tax withholding and advance EIC payments for wages paid on or after March 20, 2009. As a reminder, in order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
Employees are not required to complete a new Form W-4 for Federal withholding. The revised tables were developed to apply for withholding for all employees and to take into account all current tax provisions. Also, employees are not required to complete a new Form W-5 for Advance EIC payments.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes and advance EIC payments for SHARP agencies. Regent institutions are responsible for implementing the new withholding tax rates and advance EIC payments in their respective payroll systems.
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Attachments:
DATE: | March 2, 2009 | ||
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SUBJECT: | Suspension of Employer Group Health Insurance Contributions | ||
EFFECTIVE DATE: | February 22, 2009 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | cindy.lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Suspension of Employer Contributions for Group Health Insurance for the Payroll Periods February 22, 2009 to June 13, 2009 |
Senate Bill 23, passed in the 2009 legislative session, suspends employer contributions for group health insurance for the payroll periods from February 22, 2009 to June 13, 2009. As a result of this legislation, the Division of Accounts and Reports will not collect or remit the employer portion of group health insurance contributions for pay periods that have an original check issue date from March 20, 2009 to June 26, 2009. This moratorium will start effective with the pay period beginning February 22, 2009 and ending March 7, 2009, paid March 20, 2009. This moratorium, however, does not impact the employer contributions collected and remitted to employee Health Savings Accounts.
Please note that the group health insurance contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after February 22, 2009 for pay period end dates prior to March 7, 2009 will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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DATE: | March 30, 2009 | ||
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SUBJECT: | Addition of Earnings Code for Skill Differential 5 - MBO | ||
EFFECTIVE DATE: | March 22, 2009 | ||
CONTACT: | Cindy Lo | (785) 296-2259 | cindy.lo@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Addition of Earnings Code ‘SK5’ |
The Memorandum of Agreement between the Division of Printing and the Graphic Communications Conference/International Brotherhood of Teamsters 49C (Union) that became effective March 16, 2009, establishes that Bookbinders shall be paid an additional $2.00 per hour of skill code pay for operating by themselves (including loading and unloading) the folder (MBO) once the job is approved by the Manager. This skill code is only available for use by the Department of Administration-Division of Printing.
A new earnings code has been added to SHARP effective March 22, 2009 to administer the skill code pay earnings. The following earnings code is eligible to be used starting with the pay period beginning March 22, 2009 through April 4 , 2009 paid April 17, 2009.
Earnings Code |
Description |
Short Description |
Effective Date |
---|---|---|---|
SK5 |
Skill Differential 5 - MBO |
SkillDiff5 |
03/22/2009 |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding the new earnings code in the SHARP system.
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DATE: | April 8, 2009 | ||
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SUBJECT: | Organization Dues Change for ORG059 | ||
EFFECTIVE DATE: | Payroll Period Ending April 18, 2009 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Change in Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59 |
The organization dues for members of the Kansas Game Wardens Fraternal Order of Police Lodge #59, ORG059, will be increased from $12.00 to $15.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning April 5, 2009 and ending April 18, 2009, paid May 1, 2009.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after May 1, 2009.
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DATE: | April 8, 2009 | ||
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SUBJECT: | Establish Contribution Deduction for KOSE Political Action Committees (PAC) | ||
EFFECTIVE DATE: | Payroll Period Ending May 2, 2009 | ||
CONTACT: | John Yeary | (785) 296-2033 | John.Yeary@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Establish Organization Contribution Deduction for ORG501 |
Article 6, Section 2 of the Kansas Organization of State Employees (KOSE) Memorandum of Agreement with the State of Kansas authorizes voluntary contributions to the Union’s Political Action Committees (PAC) which include the American Federation of State County and Municipal Employees PEOPLE and the American Federation of Teachers COPE Committees.
Therefore, a new, after-tax, deduction code, ORG501, is being added in SHARP effective with the payroll period beginning April 19, 2009 and ending May 2, 2009, paid May 15, 2009 to accommodate the payroll deductions of voluntary contributions to these Committees. The fund/index combination for the new deduction code will be Fund 9084, Index 9710 which is the same fund/index combination used for Organization Dues deductions. Additionally, participating employees will see the description “ORG PAC – KOSE 501” printed on their paystubs or “ORG PAC” as the description in self-service for this new deduction.
All PAC contribution enrollment/cancellation forms will be provided by the Committees and/or KOSE. Normally, these enrollment forms are completed and submitted directly to KOSE by the employee. KOSE then forwards copies of the enrollment forms to John Yeary in the Labor Relations office of the Department of Administration for entry into SHARP. Under normal processing procedures for PAC enrollment forms, agencies will not receive copies of the authorization forms.
To expedite the cancellation process, the KOSE PEOPLE/COPE cancellation form instructs employees to submit the cancellation form to their agency payroll officer. All KOSE PAC cancellation forms and any PAC enrollment forms received by agency personnel should be forwarded to Labor Relations for processing at the following address:
Labor Relations
900 SW Jackson Room 252
Topeka, KS 66612
Labor Relations will forward any enrollment/cancellation forms received to KOSE PEOPLE/COPE following SHARP entry.
Questions regarding an employee’s payroll deduction for PAC should be directed to John Yeary using the contact information noted above.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this deduction code update in the SHARP system. The Division of Accounts and Reports, Reconciliation and Remittance Team will be responsible for the remittance of the deductions to KOSE.
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DATE: | April 14, 2009 | ||
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SUBJECT: | Child Support Enforcement Information Requests | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Debra Jones | (785) 296-3887 | Debra.Jones@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Child Support Enforcement Information Requests |
In an effort to facilitate the Child Support Enforcement process, a policy decision has been made to forward the Child Support Enforcement information requests directly to the employing agency.
When your agency receives such a request from the Division of Accounts and Reports, please complete the attached form and return to the appropriate Child Support Enforcement Office within the specified time period. For requests originating in Kansas, state law requires an employer to respond to the request for information within ten days. Requests originating from other states may have different due dates for response.
If you need to determine whether an Income Withholding Order is currently in effect for the employee, you can review the employee’s most current paycheck in SHARP (Payroll for North America > Payroll Processing USA > Produce Payroll > Review Paycheck). If the Garnishments data under the Paycheck Deductions tab contains information for a garnishment ID beginning with ‘IWO’, an Income Withholding Order is in effect. If you do not know the answers to any specific questions (for example, Insurance Group # or Policy #), leave the information blank.
This change should not alter the current Income Withholding Order process. The actual Income Withholding Orders should be forwarded immediately to the Director of Accounts and Reports and will continue to be processed centrally by the Division of Accounts and Reports, Payroll Services.
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DATE: | April 16, 2009 | ||
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SUBJECT: | Fiscal Year End Payroll Processing for FY 2009 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson @da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2010 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 13, 2009 will use fiscal year 2009 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 13, 2009 will use fiscal year 2010 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 pay period being adjusted. For example, the Run B off-cycle (processed June 24, paid June 29) for the pay period ending June 13, 2009 will be charged to fiscal year 2009 expenditures. The Run C off-cycle (processed June 29, paid July 2) for the pay period ending June 13, 2009 will be charged to fiscal year 2010 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run B off-cycle scheduled for June 24, 2009 (paid June 29) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2009 expenditures.
Once the Run B off-cycle for the period ending June 27, 2009 (processed July 8, paid July 13) has been processed, agencies should not request or process paycheck reversals until STARS FY 2009 closing has been successfully completed. STARS is scheduled to resume processing July 22, 2009.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 21, 2009 and should be completed by Monday morning, June 22. In that process, a new row will be added to the Department Budget tables with an effective date of June 14, 2009 (beginning date of the first on-cycle payroll charged to FY2010). The Budget End Date will be June 13, 2010. Agencies should not enter any rows with an effective date greater than or equal to June 14, 2009 until after the FY2010 insert has been completed. When adding new rows for FY2010, agencies should verify that June 13, 2010 was used as the Budget End Date for FY2010.
GHI Adjustments
As of July 1, 2009, NO payroll processing for GHI adjustments should be made for contract year 2007. Contact Brenda Vaughn (785) 296-3226 Brenda.Vaughn@khpa.ks.gov or Jeanne Wright (785) 296-0880 Jeanne.Wright@khpa.ks.gov at Kansas Health Policy Authority about any event maintenance changes that may affect claims processing for contract year 2007.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2009. 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 (assuming processing occurs before midnight), the Run B off-cycle for the pay period ending June 13, 2009 (processed June 24, paid June 29) will have 359 as the Julian date in the document number and expenditures will be charged to fiscal year 2009. The Run C off-cycle for the pay period ending June 13, 2009 (processed June 29, paid July 2) will have 364 as the Julian date in the document number and expenditures will be charged to fiscal year 2010. The Run A off-cycle for the pay period ending June 27, 2009 (processed July 6, paid July 10) will have 006 as the Julian date in the document number and expenditures will be charged to fiscal year 2010.
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 2010.
Reminders
To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:
1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls 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 on-cycle paycheck for the period and will require special handling.
2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 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 ‘Nontaxable’.
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DATE: | April 16, 2009 | ||
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SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2009 | ||
CONTACT: | Jennifer Holthaus | (785) 368-6313 | Jennifer.Holthaus@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Annual review of housing, food service and other employee |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2010 will require entry into the SHARP v8.9 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2010 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 29, 2009 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 27, 2009 (paychecks dated July 10, 2009).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment DA-171 pdf
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DATE: | April 21, 2009 | ||
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SUBJECT: | Payroll Record Retention Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Nancy Ruoff | (785) 296-2853 | Nancy.Ruoff@da.ks.gov |
APPROVAL: | |||
SUMMARY: |
Payroll Record Retention Change |
In order to increase data security, staff efficiency and provide consistency, the policy regarding record retention of payroll data has been changed. Effective immediately, the Division of Accounts and Reports, Payroll Services Section will maintain historical payroll data dating back ten full years (plus the current calendar year) and respond to documented requests for historical payroll data pertaining to that period of time. Prior to this change, fifty years of historical payroll data was maintained using various storage mediums. This data includes savings bond reports and W-2 records which contain personally identifiable information. Changing the retention schedule allows for the proper disposal of forty years of historical data and the increased protection of sensitive employee personal data. Staff research time for requests for employee historical data will also be more efficient. No legal obligation exists to maintain records or respond to requests greater than seven years old.
Questions regarding this policy change should be directed to Nancy Ruoff, Division of Accounts and Reports, Payroll Services, using the contact information noted above.
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DATE: | April 29, 2009 | ||
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SUBJECT: | New Deduction Codes for KPERS Tier 2 Deductions | ||
EFFECTIVE DATE: | July 1, 2009 | ||
CONTACT: |
Heather DeBusk, A&R Patti Pearce, DPS |
(785) 296-2434 (785) 296-7232 |
|
APPROVAL: | |||
SUMMARY: |
New Deduction Codes/Benefit Plans for Future Members of KPERS |
Per Senate Bill 362 of the 2007 Legislative Session, the retirement plan for current and future members of the Kansas Public Employees Retirement System (KPERS) will be modified effective July 1, 2009. This modification will provide certain benefit enhancements for current and retired KPERS members. As a result of this legislation, future members of the KPERS system will begin contributing 6% of their salary to the retirement plan. This will be effective with the first day of employment in an eligible position. For these members, there will not be a year of waiting for the KPERS deductions to begin. Further information on the specifics of the KPERS plan design changes can be found at http://www.kpers.org/issuebrief_plandesign.pdf.
Current members include those first employed before July 1, 2009; the existing KPERS deduction codes and benefit plans will continue to be used for current members as their KPERS contributions will continue at the current participation rates. For future KPERS members, which includes employees first hired on or after July 1, 2009, three new KPERS deduction codes and thirteen benefit plans are being added in SHARP effective for the payroll period beginning June 28, 2009, ending July 11, 2009, paid July 24, 2009.
The new KPERS deduction codes and benefit plans are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
GTL DED CD |
---|---|---|---|---|---|---|
70 |
RETRE2 |
KPERS- Regular Tier 2 |
KPERS-Reg |
PT2 |
KPERS Ret Code P Tier 2 |
GTLREG |
70 |
RETCO2 |
KPERS- Corrections Tier 2 |
KPERS-Cor |
XAT2 |
KPERS Ret Code XA Tier 2 |
GTLCOR |
XBT2 |
KPERS Ret Code XB Tier 2 |
GTLCOR |
||||
XCT2 |
KPERS Ret Code XC Tier 2 |
GTLCOR |
||||
4X |
RETLE2 |
KPERS- Legislator Tier 2 |
KPERS-Leg |
L1T2 |
KPERS Ret Code L1 Tier 2 |
GTLL1 |
L5T2 |
KPERS Ret Code L5 Tier 2 |
GTLL5 |
||||
L7T2 |
KPERS Ret Code L7 Tier 2 |
GTLL7 |
||||
LIT2 |
KPERS Ret Code LI Tier 2 |
GTLLI |
||||
LJT2 |
KPERS Ret Code LJ Tier 2 |
GTLLJ |
||||
LKT2 |
KPERS Ret Code LK Tier 2 |
GTLLK |
||||
LLT2 |
KPERS Ret Code LL Tier 2 |
GTLLL |
||||
LNT2 |
KPERS Ret Code LN Tier 2 |
GTLLN |
||||
LUT2 |
KPERS Ret Code LU Tier 2 |
GTLLU |
(Note: these codes do not apply to the law enforcement or judges retirement plans)
The existing ‘GTL’ deduction codes and benefit plans as noted in the table above will continue to be used for the employer contributions for death and disability insurance provided to participating KPERS members.
The Department of Administration Payroll clearing fund and index codes for these new Tier 2 KPERS deduction codes will be the same as the current KPERS codes (Fund 9009, Index 9730 for employee contributions and 9830 for employer contributions). In addition, the STARS Expenditure Sub-Object Codes for Employer Contributions for the new deduction codes will be the same as the current KPERS deduction codes (1810 for Regular and Legislator, 1870 for Corrections).
The Department of Administration is responsible for making the necessary updates to the SHARP payroll system. Regents’ Institutions are responsible for ensuring that these changes are reflected in their individual systems.
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DATE: | May 11, 2009 | ||
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SUBJECT: | Establish New Organization Dues Deduction Code ORG612 for Teamsters Local Union #696 (JJA) | ||
EFFECTIVE DATE: | Payroll Period Ending May 16, 2009 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: |
Establish New Organization Dues Deduction for JJA |
Per notice by the Teamsters Local Union #696, a new deduction code will be added for membership dues deductions for employees at the Juvenile Justice Authority located in Topeka, Atchison, and Beloit. This bi-weekly deduction of organization dues, effective May 3, 2009, is based on a new hourly pay rate range as follows:
Hourly Pay Rate Range | Bi-Weekly Deduction Amount | Deduction Code for Local #696 |
---|---|---|
$17.11 to $17.55 | $19.50 | ORG612 |
Agencies should refer to Informational Circular No. 08-P-024 for information regarding the initial pay rate ranges, deduction codes and bi-weekly deduction amounts for Teamsters Local Union #696.
This deduction will be established effective with the payroll period beginning May 3, 2009 and ending May 16, 2009, paid May 29, 2009.
As a reminder, this organization is only available for membership to employees who work in specific positions at the Juvenile Justice Authority facilities in Topeka, Atchison, and Beloit.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this update in the SHARP system. Regent’s institutions should ensure that the use of the listed deduction code is reflected in their individual systems effective May 3, 2009.
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DATE: | May 15 , 2009 | ||
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SUBJECT: | Gift Card Interface Files and FBN Processing for CY 2009 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Julie Faust, KHPA Joyce Dickerson, A&R |
(785) 296-5624 (785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: |
Interface Files and Fringe Benefit Income Processing for the HealthQuest Personal Health Assessment Gift Cards for 2009 |
Kansas Health Policy Authority (KHPA) HealthQuest has again implemented a program for plan year 2009 that includes the incentive of a $50 Gift Card for completing the HealthQuest Personal Health Assessment (PHA). The PHA is available from April 1, 2009 through September 30, 2009 and participating employees have until October 31, 2009 to select a gift card. Employees are encouraged to claim their gift card in a timely manner to minimize adjustments required for individuals who complete the PHA but leave State employment prior to claiming their gift card. As noted in previous communications from KHPA, if participating employees do not select a gift card of their choice by October 31, 2009, a gift card will be chosen for them, unless they have opted out of the incentive. To opt out, employees can contact Julie Faust at (785) 296-5624 or at julie.faust@khpa.ks.gov. It is important to note that employees will need to opt out prior to completing the PHA if they do not want to claim a gift card.
The Gift Card Award is a taxable fringe benefit to the plan participant for the total of all gift cards selected by or for the plan participant and their eligible dependent(s). For State employees and their eligible dependents, the taxes on the fringe benefit income will be deducted from the participating employee’s paycheck based on the issue date of the employee e-mail and/or notification letter which provides the information for gift card redemption. Fringe Benefit Income is added to, and reported in, gross wages on the W-2.
For active State employees paid through SHARP, an interface will be processed biweekly beginning Monday night, May 18, 2009 to generate the necessary fringe benefit income (‘FBN’) earnings for inclusion on the employee’s paycheck. Processing the ‘FBN’ earnings on a biweekly basis will minimize the number of adjustments required for employees who have left State employment. Each agency will receive a report (KTECKHPA) in their agency mailbox on the MVS, available on Tuesday morning, which lists all employees in the agency who had ‘FBN’ earnings added to their timesheet for the biweekly pay period being processed. The first pay period for plan year 2009 to be processed for gift card ‘FBN’ earnings will be May 3 to May 16 paid on May 29, 2009.
The following procedures will be used for State employees paid through SHARP who have left State employment since the completion of the gift card requirements:
- KHPA will receive an error listing of all fringe benefit income earnings that could not be updated to employee time records through the interface process (employee termed/retired, incorrect data, etc.)
- KHPA will contact individual agencies to resolve all errors generated due to retired/terminated employees, incomplete data, etc.
- For terminated/retired employees, agency personnel must complete the following steps:
- Agency personnel must complete a pay affecting adjustment to the employee’s most current paycheck in the current calendar year that has not been previously adjusted and does not contain a garnishment or specific earnings codes (see further information regarding Agency Payroll Adjustment at Job Aids).
- If agency personnel are unable to perform the adjustment due to garnishments or previous adjustments to the paycheck, the agency must submit a completed form DA-180, Paycheck Reversal/Adjustment/Supplemental for central processing by the Division of Accounts and Reports Payroll Services Team. Instructions for requesting a Centrally Entered Adjustment can be found at http://www.da.ks.gov/ar/payroll/adjustment.htm.
Once entered, processing the adjustment to create the Fringe Benefit Income for a retired or terminated employee will create an employee arrearage for the amount of the employee tax liability on the fringe benefit income. It is at the agency’s discretion to either work to recover the amount of this arrearage from the individual employee, or to write-off the amount of the employee arrearage. Further information on the policies and procedures regarding uncollectible arrearages can be located at: Info Circ 00-p-020 - Salary Overpayments and Outstanding Arrearages.
All questions regarding the gift card program and interfaces should be directed to Julie Faust, Kansas Health Policy Authority at (785) 296-5624. The Division of Accounts and Reports will be responsible for processing the interface file to update time sheets with the fringe benefit income earnings for active State employees and for processing DA-180 forms submitted by agencies for entry of adjustments which could not be processed by the agency. Questions regarding the processing of adjustments can be directed to Joyce Dickerson, Division of Accounts and Reports, Payroll Services at (785) 296-3979. Regent institutions will be provided an interface file from KHPA for their agency and are responsible for the generation of the necessary fringe benefit income transactions for their employees as well as any adjustment transactions for terminated or retired employees.
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DATE: | May 18 , 2009 | ||
---|---|---|---|
SUBJECT: | IRS Information on Federal Tax Withholding | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Jennifer Holthaus |
(785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: |
Information on Federal Tax Withholding as a Result of the American Recovery and Reinvestment Act (ARRA) of 2009 |
||
Recently the IRS issued updated withholding tables to implement the withholding adjustments required by the American Recovery and Reinvestment Act of 2009. The new Wage Withholding and Advance Earned Income Credit Payment Tables were implemented for the State of Kansas effective for paychecks issued on or after March 20, 2009. Refer to informational circular 09-P-025 issued on February 27, 2009 http://www.da.ks.gov/ar/infocirc/fy2009/IC09p025.htm to view the revised tables.
The IRS has subsequently issued additional information encouraging employees in certain categories to review their withholding to determine if enough tax is being withheld. Please provide the following information to your employees and encourage them to seek advice from their personal tax accountant or to visit www.irs.gov to utilize the on-line withholding calculator to determine if it is necessary to file a revised W-4 to ensure adequate wage withholding to meet their estimated income tax liability. State of Kansas Payroll and Human Resources staff members cannot make recommendations to individual employees regarding personal income tax withholding. Employees can revise their Federal W-4 withholding allowances or request an additional Federal withholding amount via the Update W-4 Federal Tax Data page in Employee Self Service www.kansas.gov/employee.
Below is a summary of information per the IRS website:
In 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.
This tax credit will be calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.
Wage earners will benefit immediately with a larger paycheck as a result of the changes made to the federal income tax withholding tables to implement the Making Work Pay tax credit. Some individuals may find that the changes built into the withholding tables result in less tax being withheld than they prefer.
Depending on your personal situation, you may have less withheld from your paycheck than you need or want. If you believe your current withholding is not appropriate for your personal situation, you can perform a quick check using the IRS withholding calculator which can be found at http://www.irs.gov/individuals/article/0,,id=96196,00.html. Adjustments can be made by filing a revised Form W-4, Employee's Withholding Allowance Certificate, with your employer.
The following groups should check their withholding to see if enough is being withheld:
- Individuals who work two or more jobs,
- Married couples who both work,
- Pensioners,
- Dependents who work but who are not eligible for the making Work Pay tax credit due to their dependent status, and
- Non-resident aliens, and some resident aliens, who do not have valid Social Security numbers and who are not eligible for the credit.
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DATE: | May 26 , 2009 | ||
---|---|---|---|
SUBJECT: | Extension of Employer KPERS Death and Disability Insurance Contributions Moratorium | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Extending the Suspension of Employer Contributions for KPERS Death and Disability Insurance to November 30, 2009 |
SB219, Section (4)(A), passed in the 2009 legislative session, extended the suspension of employer contributions for KPERS Death and Disability Insurance to the period of March 1, 2009 to November 30, 2009, from the original period of March 1, 2009 to June 30, 2009 as stipulated in SB23. As a result of this legislation, the Division of Accounts and Reports will NOT resume collecting or remitting the employer portion of KPERS Death and Disability insurance contributions until the pay period beginning November 15, 2009 and ending November 28, 2009, paid December 11, 2009, as opposed to the pay period beginning June 14, 2009 and ending June 27, 2009, paid July 10, 2009 as previously scheduled.
The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after March 1, 2009 for pay period end dates prior to February 21, 2009 will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after February 8, 2009, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, then imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does 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.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll periods noted above.
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DATE: | June 9 , 2009 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage – FY2010 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 14, 2009 and Ending June 27, 2009, Paid July 10, 2009 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Parking Fee Increase - Curtis Building Garage – FY2010 |
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2010. To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 14, 2009 and ending June 27, 2009, paid July 10, 2009:
Deduction Code (Group 1) | New bi-weekly rate for pped 6/27/09 |
---|---|
PKT08B | 24.33 |
PPKT08 | 24.33 |
PKAD05 (admin fee) | 1.86 ($24.33 * .0765) |
The Kansas Department of Health and Environment (KDHE) will no longer subsidize the rate increases for their employees parking in the Curtis Building Garage. As a result of this decision, KDHE employees will see their rates, listed in Group 2 below, increased to the same level as the standard rates listed in Group 1 above. To avoid redundancy, the employees currently assigned to Group 2 parking deduction codes will eventually be switched to the deduction codes in Group 1, and the employee deduction codes in Group 2 will be ended after the switch. The Division of Facilities Management will make the employee deduction code changes in SHARP and KDHE will notify their employees individually of the changes.
Deduction Code (Group 2) | New bi-weekly rate for pped 6/27/09 |
---|---|
PKT12B | 24.33 |
PPKT12 | 24.33 |
PKAD15 (admin fee) | 1.86 ($24.33 * .0765) |
Employees with the Department of Commerce, Attorney General, and Board of Pharmacy who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code | New bi-weekly rate for pped 6/27/09 |
---|---|
PKT10B | 12.17 |
PPKT10 | 12.17 |
PKAD07 (admin fee) | 1.93 ($12.17 * .0765) |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | June 25, 2009 | ||
---|---|---|---|
SUBJECT: | Discontinuation of Employer Group Health Insurance Contributions Moratorium | ||
EFFECTIVE DATE: | June 14, 2009 | ||
CONTACT: |
Cindy Lo |
(785) 296-2259 |
|
APPROVAL: | |||
SUMMARY: |
Resume Collecting Employer Contributions for Group Health Insurance Beginning with the Pay Period June 14 to June 27, Paid July 10, 2009 |
Senate Bill 23, passed in the 2009 legislative session, suspended collections of employer contributions for group health insurance (GHI) for the payroll periods from February 22, 2009 to June 13, 2009. The original GHI moratorium informational circular (09-P-026) stated “…the Division of Accounts and Reports will not collect or remit the employer portion of group health insurance contributions for pay periods that have an original check issue date from March 20, 2009 to June 26, 2009…”. To better explain the legislation, the language in the circular should have read “…the Division of Accounts and Reports will not collect or remit the employer portion of group health insurance contributions for pay periods that have an original on-cycle check issue date from March 20, 2009 to June, 26, 2009…”. To clarify, any supplemental or paycheck adjustments for the effected payroll periods processed in the ‘B’ and ‘C’ off-cycles for the payroll period ending June 13, 2009 should also be included in the moratorium.
Since the moratorium period from SB 23 has expired on June 13, 2009, the Division of Accounts and Reports will now resume collecting and remitting the employer portion of GHI contributions effective with the pay period beginning June 14, 2009 and ending June 27, 2009, paid July 10, 2009.
Please note that the group health insurance contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed for pay period end dates from March 7, 2009 to June 13, 2009 will NOT have the employer portion of GHI contributions. All other prior period adjustments will continue to have the contributions collected and remittances made according to the normal schedule.
The Division of Accounts and Reports, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect aforementioned changes for all employees for whom SHARP calculates pay. Regent institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll periods noted above.
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DATE: | June 29, 2009 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2010 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 14, 2009; Ending June 27, 2009; Paid July 10, 2009 |
||
CONTACT: |
Kathy Ogle |
(785) 296-2290 |
|
APPROVAL: | |||
SUMMARY: |
Fiscal Year 2010-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 2010. The fiscal year 2010 rates will become effective with the on-cycle payroll period beginning June 14, 2009, ending June 27, 2009 and paid July 10, 2009, except for the new KPERS Tier 2 deductions, which will become effective with the on-cycle payroll period beginning June 28, 2009, ending July 11, 2009 and paid July 24, 2009. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2009.
In FY2010, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). However, SB219, Section (4)(A), passed in the 2009 legislative session extended the suspension of employer contributions for KPERS Death and Disability Insurance until November 30, 2009. As a result, the Division of Accounts and Reports will not resume collecting or remitting the employer portion of KPERS Death and Disability insurance contributions until the pay period beginning November 15, 2009 and ending November 28, 2009, paid December 11, 2009. For Regent institutions, the moratorium does 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.
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 the moratorium period. Agencies are reminded also of previous moratoriums for KPERS Death and Disability Insurance contributions that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004.
Legislation passed in 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm . 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2010, employer rates are 7.34% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 11.34%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
The Division of Accounts and Reports, 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 STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2010.
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DATE: | June 28 , 2007 | ||
---|---|---|---|
SUBJECT: | Revised SHARP Bi-Weekly Payroll Schedule for 2007 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Revised SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2007 due to SHARP Upgrade |
In order to facilitate the upgrade from SHARP 8.01 to SHARP 8.9, some processing dates have been changed from the original payroll schedule for 2007. On the summary below, agencies are asked to note the SHARP version number after the date.
Monday, July 16, 2007 – V8.01
First preliminary calculation for the SHARP on-cycle for the pay period ending July 14, 2007, paid July 27, 2007.
SHARP and Regent off-cycle (Run C) for the pay period ending June 30, 2007, paid July 19, 2007.
Tuesday, July 17, 2007 – V8.01
Second preliminary calculation for the SHARP on-cycle for the pay period ending July 14, 2007, paid July 27, 2007.
Wednesday, July 18, 2007 – V8.01
Final pay calculation and confirm for the SHARP on-cycle for the pay period ending July 14, 2007, paid July 27, 2007. (Normally ran on Friday, July 20.)
Regents on-cycle cutoff at 6:00 a.m. for the pay period ending July 14, 2007, paid July 27, 2007.
Thursday, July 19, 2007 – V8.01
Regents on-cycle for the pay period ending July 14, 2007, paid July 27, 2007. (Normally ran on Monday, July 23.)
Friday, July 20, 2007 – V8.01
SHARP and Regents off-cycles (Run A) for the pay period ending July 14, 2007, paid July 27, 2007. (Normally ran on Monday, July 23.)
Saturday, July 21, 2007 through Tuesday, July 24, 2007 – V8.01 and V8.9
Once batch processing has completed on Friday, July 20, 2007, the conversion from V8.01 to V8.9 begins. Both SHARP and the Employee Self-Service Center are unavailable to core users and employees during the conversion process.
Wednesday, July 25, 2007 – V8.9
No SHARP or Regents off-cycles processed.
Please note: There will only be two off-cycle payrolls processed for the pay period ending July 14, 2007. One will be processed on July 20, 2007 and the second on July 30, 2007.
SHARP 8.9 is opened to all core users.
Employee Self-Service Center is available to employees at http://www.kansas.gov/employee.
Friday, July 27, 2007 – V8.9
Regents off-cycle files are due by 5:00 p.m. for the pay period ending July 14, 2007, paid August 2, 2007.
Monday, July 30, 2007 – V8.9
SHARP and Regents off-cycles (Run C) for the pay period ending July 14, 2007, paid August 2, 2007.
Tuesday, July 31, 2007 – V8.9
First preliminary calculation for the SHARP on-cycle for the pay period ending July 28, 2007, paid August 10, 2007.
Wednesday, August 1, 2007 – V8.9
Second preliminary calculation for the SHARP on-cycle for the pay period ending July 28, 2007, paid August 10, 2007.
Thursday, August 2, 2007 – V8.9
Third preliminary calculation for the SHARP on-cycle for the pay period ending July 28, 2007, paid August 10, 2007.
Regents on-cycle cutoff at 6:00 a.m. for the pay period ending July 28, 2007, paid August 10, 2007.
Friday, August 3, 2007 – V8.9
Final pay calculation and confirm for the SHARP on-cycle for the pay period ending July 28, 2007, paid August 10, 2007.
Monday, August 6, 2007 – V8.9
Regents on-cycle for the pay period ending July 28, 2007, paid August 10, 2007.
SHARP and Regents off-cycles for the pay period ending July 28, 2007, paid August 10, 2007. (Run A)
Wednesday, August 8, 2007 – V8.9
SHARP and Regents off-cycles for the pay period ending July 28, 2007, paid August 13, 2007. (Run B)
Monday, August 13, 2007 – V8.9
SHARP and Regents off-cycles for the pay period ending July 28, 2007, paid August 16, 2007. (Run C)
Attached are the revised SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2007. Revised dates are bolded.
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DATE: | June 5, 2007 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Codes P4H and P4P | ||
EFFECTIVE DATE: | June 17, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Codes P4H and P4P |
Executive Directive No. 07-381 requires the establishment of a 2% pay differential effective June 17, 2007, for those employees in the Highway Patrol Trooper, Highway Patrol Master/Technical Trooper, Highway Patrol Lieutenant, Highway Patrol Captain, Highway Patrol Major, Law Enforcement Officer I and Law Enforcement Officer II (only Motor Carrier Inspector employees with full law enforcement authority), and Law Enforcement Officer III (Motor Carrier Inspection Sergeant) job classifications. This premium is only available for use by the Kansas Highway Patrol (Agency 280).
The following earnings codes will be added to SHARP for this pay differential:
Earnings Code | Description |
---|---|
(This ‘hours’ code should be entered on the employee’s timesheet at the time of other time and leave entry.) | |
P4H | Pay Differential Hours-2% |
(This ‘pay’ code should be added ONE TIME to the Additional Pay page.) | |
P4P | Pay Differential Pay-2% |
Both the ‘hours’ and the ‘pay’ differential earnings codes will update the paycheck. The ‘hours’ earnings code will contain an amount equal to the differential hours entered on the timesheet times the employee’s hourly rate of pay. This amount will not add to gross pay. The ‘pay’ earnings code will reflect the amount that adds to gross pay (the ‘hours’ amount times the factor associated with the differential which is 2%).
The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating these earnings codes in the SHARP system. Regents’ Institutions are responsible for ensuring these code changes are updated in their individual systems.
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DATE: | July 20, 2007 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2008 Unemployment Compensation Insurance Contribution Rate Correction | ||
EFFECTIVE DATE: | July 1, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2008 Unemployment Compensation Insurance Contribution Rate Correction |
Informational Circular 07-P-032, dated June 18, 2007, reported the fiscal year 2008 Unemployment Compensation Insurance (UCI) rate for the State of Kansas as 0.13%. The correct rate is 0.10% and is effective July 1, 2007.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. SHARP agencies do not need to initiate paycheck adjustments to correct the erroneous UCI contributions withheld for the first two payroll periods of FY08. The UCI contributions will ‘self-adjust’ on the next paycheck calculated by SHARP for the employee.
Regents’ Institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | July 26, 2007 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2008 Workers' Compensation Insurance Contribution Rate Correction | ||
EFFECTIVE DATE: | July 15, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2008 Workers' Compensation Insurance Contribution Rate Correction |
Workers’ Compensation Insurance (WCI) contribution rates as reported in Informational Circular 07-P-032, dated June 18, 2007, for fiscal year 2008 have been amended. The correct rates are shown on Attachment A of this circular and will be used beginning with the payroll beginning July 15, 2007, ending July 28, 2007, paid August 10, 2007.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Agencies do not need to initiate paycheck adjustments to correct the erroneous WCI contributions withheld for the first two payroll periods of FY08. The Health Care Finance Authority will process interfund vouchers to correct these contributions.
Regents’ Institutions are responsible for ensuring that this change is made in their individual systems.
KEO:JJM:kao
Attachment: A (.pdf)
DATE: | August 13, 2007 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for AFSCME Council 72 Local 1357 | ||
EFFECTIVE DATE: | Payroll Period Ending August 25, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for ORG357 |
The organization dues for members of the AFSCME Council 72, Local 1357, ORG357, will be increased from $13.80 to $14.77 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 12, 2007 and ending August 25, 2007, paid September 7, 2007.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 7, 2007.
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DATE: | August 21, 2007 | ||
---|---|---|---|
SUBJECT: |
Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30 |
||
EFFECTIVE DATE: | Payroll Period Ending August 25, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code ‘ORG030’, will change from $25.15 to $26.85 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 12, 2007 and ending August 25, 2007, paid September 7, 2007.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 7, 2007.
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DATE: | August 30 , 2007 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for 2008 | ||
EFFECTIVE DATE: | Calendar Year 2008 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2008 |
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2008. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. SHARP agencies generally have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
KEO:JJM:kao
Attachment: Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2008 (pdf)
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2008 (pdf)
DATE: | October 8, 2007 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2007 | ||
EFFECTIVE DATE: | November 2007 | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2007 holidays. |
Monday, November 12, 2007 (Veterans' Day), Thursday, November 22, 2007 and Friday, November 23, 2007 (Thanksgiving Holiday) are designated holidays for state service in 2007.
Due to the holidays in November, variations have been made to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, November 2, 2007
Payday for the payroll period ending October 20, 2007.
Regents’ Run C off-cycle payroll files for the period ending October 20, 2007 must be received by the Department of Administration by 5:00 PM on November 2, 2007.
Monday, November 5, 2007
Time and leave interface agencies must have time and leave files for the period ending November 3, 2007 submitted to the Department of Administration for processing by 5:00 PM on November 5, 2007.
The Run C off-cycle for the period ending October 20, 2007 will be processed November 5, 2007. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 8, 2007.
Tuesday, November 6, 2007
Paysheets for the on-cycle payroll for the period ending November 3, 2007 will be created on Tuesday, November 6, 2007. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 6, 2007 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 3, 2007 will also occur November 6, 2007; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM.
Wednesday, November 7, 2007
The second on-cycle preliminary pay calculation for the period ending November 3, 2007 will occur November 7, 2007.
Thursday, November 8, 2007
The third on-cycle preliminary pay calculation for the period ending November 3, 2007 will occur November 8, 2007.
Regents’ on-cycle payroll files for the period ending November 3, 2007 are due to the Department of Administration by 6:00 AM on November 8, 2007. (These files would normally be due Friday, November 9, 2007.)
Friday, November 9, 2007
Final pay confirmation for the on-cycle payroll for the period ending November 3, 2007 will occur November 9, 2007. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 9, 2007 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 9, 2007 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 3, 2007 must be received by the Department of Administration by 5:00 PM on November 9, 2007.
Monday, November 12, 2007
Veterans' Day Holiday
Tuesday, November 13, 2007
The Run A off-cycle for the period ending November 3, 2007 will be processed November 13, 2007. (This off-cycle would normally be scheduled for Monday, November 12, 2007.) SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 16, 2007.
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 3, 2007 will be posted to STARS during Tuesday night's STARS batch processing cycle.
Regents’ Run B off-cycle payroll files for the period ending November 3, 2007 must be received by the Department of Administration by 5:00 PM on November 13, 2007 in order to be processed on Wednesday, November 14, 2007.
Wednesday, November 14, 2007
The Run B off-cycle for the period ending November 3, 2007 will be processed November 14, 2007. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 19, 2007.
Friday, November 16, 2007
Payday for the payroll period ending November 3, 2007.
Time and leave interface agencies must have time and leave files for the period ending November 17, 2007 submitted to the Department of Administration for processing by 5:00 PM on November 16, 2007. (These files would normally be due Monday, November 19, 2007.)
Regents’ Run C off-cycle payroll files for the period ending November 3, 2007 must be received by the Department of Administration by 5:00 PM on November 16, 2007.
Monday, November 19, 2007
Paysheets for the on-cycle payroll for the period ending November 17, 2007 will be created on Monday, November 19, 2007. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 19, 2007 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, November 20, 2007.)
The first on-cycle preliminary pay calculation for the period ending November 17, 2007 will also occur November 19, 2007, rather than Tuesday, November 20, 2007; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM November 19, 2007. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 17, 2007.
The Run C off-cycle for the period ending November 3, 2007 will be processed November 19, 2007. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 26, 2007. (Paychecks would normally be dated Thursday, November 22, 2007.)
Tuesday, November 20, 2007
The second on-cycle preliminary pay calculation for the period ending November 17, 2007 will occur November 20, 2007.
Wednesday, November 21, 2007
Final pay confirmation for the on-cycle payroll for the period ending November 17, 2007 will occur November 21, 2007. (Final pay confirmation would normally occur Friday, November 23, 2007). All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 21, 2007 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 21, 2007 in order to be reflected in the final paycheck created for the employee.
Regents’ on-cycle payroll files for the period ending November 17, 2007 are due to the Department of Administration by 6:00 AM on November 21, 2007. (These files would normally be due Friday, November 23, 2007.)
Regents’ Run A off-cycle payroll files for the period ending November 17, 2007 must be received by the Department of Administration by 5:00 PM on November 21, 2007. (These files would normally be due Friday, November 23, 2007.)
Thursday, November 22, 2007
Thanksgiving Holiday
Friday, November 23, 2007
Thanksgiving Holiday
Attached is a calendar for the month of November 2007, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
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Attachment:November 2007 Payroll Calendar
DATE: | October 22, 2007 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2008 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | sunni.zentner @da.ks.gov |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $102,000 effective January 1, 2008 |
The Social Security wage base for OASDI will be $102,000 for calendar year 2008. This is a $4,500 increase from the 2007 wage base of $97,500. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2008 will be $6,324. There continues to be no limit on wages subject to the Medicare tax in 2008. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $6,324 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | October 22, 2007 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2008 |
||
EFFECTIVE DATE: | January 1, 2008 | ||
CONTACT: | Janice Wolfley Sunni Zentner |
(785) 296-3699 (785) 296-7058 |
|
APPROVAL: | |||
SUMMARY: | 2008 Deferred Compensation and Tax Sheltered Annuity Limits |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2008 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit remains the same at the lesser of $15,500 or 100% of includible compensation (2007 calendar year limit).
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit remains the same at $31,000 (2007 calendar year limit). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $5,000 (for 2008, unchanged from 2007) to a total of $20,500.
Please note that the two different catch-up provisions cannot be used concurrently.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2008 is the lesser of $46,000 or 100% of compensation.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $225,000 (for 2007) to $230,000 (for 2008). The $230,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $23,000 ($230,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $32,200 ($230,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $335,000 (for 2007) to $345,000 (for 2008). However, participants should note their maximum annual compensation limit will be $328,571.43, since the $328,571.43 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $46,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) remains unchanged at $15,500 for 2008. The age 50 or older catch-up provision is unchanged from 2007 remaining at $5,000 for 2008. Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on annual contribution by $5,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($15,500 for 2008) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
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DATE: | October 25, 2007 | ||
---|---|---|---|
SUBJECT: | New Form K-4 and SHARP Employee Self Service Update W-4 Tax Information Page Change | ||
EFFECTIVE DATE: | January 1, 2008 | ||
CONTACT: | Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: | |||
SUMMARY: | New Form K-4 and SHARP Employee Self Service Update W-4 Tax Information Page Change |
As announced in Notice 07-07, the Kansas Department of Revenue has developed its own Employee Withholding Allowance Certificate, Form K-4, which will become effective January 1, 2008. (Notice 07-07, New K-4 Form For State Withholding, can be found at: http://www.ksrevenue.org/newtaxnotices.htm ). Form K-4 will be available on the Accounts and Reports webpage, http://www.da.ks.gov/ar/ , under General Accounting/Forms.
With this new form, State of Kansas employees will designate number of allowances, marital status, additional withholding, and exemption claim for Kansas state withholding. These options may now differ from the Federal withholding elections made on Form W-4. Currently, only additional withholding may differ. The Additional Tax Form, DA-186, used to request additional Kansas state withholding will be eliminated. Beginning January 1, 2008, new employees and current employees wanting to change any of their Kansas state withholding options must submit a Form K-4 to their agency Payroll office. New employees and current employees wanting to change any of their federal withholding options may still choose to make those changes themselves through the Employee Self Service Update W-4 Tax Information page or they may submit a Form W-4 to their agency Payroll office. Currently, all changes (except changes to additional withholding) made using Employee Self Service update both federal and state withholding options. With the implementation of Form K-4, updates made by employees using Employee Self Service will affect Federal withholding options only. Changes to Kansas state withholding tax information can only be made via Form K-4 and must be submitted via paper to the agency Payroll office. For recordkeeping purposes, agencies are required to maintain copies of the K-4 forms on file for three years after they are no longer effective. This change will be implemented in SHARP beginning December 26, 2007, for paychecks issued after January 1, 2008.
Regent’s institutions are responsible for ensuring that the requirements are met within their individual systems.
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DATE: | November 2, 2007 | ||
---|---|---|---|
SUBJECT: | Changes to the Payroll Processing Schedule for the Payroll Period Ending December 15, 2007 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: | Changes to the payroll processing schedule for the payroll period ending December 15, 2007 due to December 24, 2007 being designated a state holiday |
As a result of Governor Sebelius declaring Monday, December 24, 2007 as an additional state holiday for 2007, the following changes have been made to the December payroll processing schedule for the payroll period ending December 15, 2007:
Friday, December 14, 2007
Payday for the payroll period ending December 1, 2007.
Time and leave interface agencies must have time and leave files for the period ending December 15, 2007 submitted to the Department of Administration for processing by 5:00 p.m. on December 14, 2007. (These files would normally be due Monday, December 17, 2007.)
Monday, December 17, 2007
Paysheets for the on-cycle payroll for the period ending December 15, 2007 will be created on Monday, December 17, 2007. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 17, 2007 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, December 18, 2007.)
The first on-cycle preliminary pay calculation for the period ending December 15, 2007 will also occur December 17, 2007, rather than Tuesday, December 18, 2007; therefore, all time and leave data should be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. December 17, 2007. Please note that there will only be two SHARP on-cycle preliminary payroll calculations for the pay period ending December 15, 2007.
The Run 'C' off-cycle for the payroll period ending December 1, 2007 continues to be scheduled for December 17, 2007. The check issue date for the Run 'C' off-cycle will remain Thursday, December 20, 2007.
Tuesday, December 18, 2007
The second on-cycle preliminary pay calculation for the period ending December 15, 2007 will occur December 18, 2007.
Wednesday, December 19, 2007
Final pay confirmation for the on-cycle payroll for the period ending December 15, 2007 will occur December 19, 2007. (Final pay confirmation would normally occur Friday, December 21, 2007.) All employees’ time and leave records must be ‘OK to Process’ by 6:00 p.m. on December 19, 2007 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 p.m. on December 19, 2007 in order to be reflected in the final paycheck created for the employee.
Regents’ on-cycle payroll files for the period ending December 15, 2007 are due to the Department of Administration by 6:00 a.m. on December 19, 2007. (These files would normally be due Friday, December 21, 2007.)
Thursday, December 20, 2007
Regents’ Run ‘A’ off-cycle payroll files for the period ending December 15, 2007 must be received by the Department of Administration by 5:00 pm. on December 20, 2007 in order to be processed on Friday, December 21, 2007.
Friday, December 21, 2007
The Run ‘A’ off-cycle for the period ending December 15, 2007 will be processed December 21, 2007. (This off-cycle would normally be scheduled for Monday, December 24, 2007.) SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will de dated December 28, 2007.
Regents’ Run ‘B’ off-cycle payroll files for the period ending December 15, 2007 must be received by the Department of Administration by 5:00 pm. on December 21, 2007 in order to be processed on Wednesday, December 26, 2007. (These files would normally be due on Monday, December 24, 2007.
Monday, December 24, 2007
Christmas Eve Holiday
Tuesday, December 25, 2007
Christmas Holiday
Attached is a revised calendar for the month of December 2007 that highlights these payroll processing schedule changes due to the December 24th additional holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this informational circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
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Calendar (PDF)
DATE: | November 7, 2007 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Code ‘BOL’ for December Bonus | ||
EFFECTIVE DATE: | November 18, 2007 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | nancy.ruoff@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Code ‘BOL’ |
Executive Directive 07-376 authorized a bonus of $860 to be paid on December 14, 2007 to eligible employees based on the guidelines stated in the Executive Directive. Specific detail regarding employee eligibility can be found in the August 20, 2007 Memorandum from the Division of Personnel Services titled “December 14, 2007 Bonus” located at http://www.da.ks.gov/ps/subject/arc/memos/
To administer the December 14, 2007 bonus, a new earnings code will be established in the SHARP system effective November 18, 2007. The following earnings code is to be used for the pay period beginning November 18, 2007 through December 1, 2007 paid December 14, 2007.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
BOL | Bonus-Legislature Authorized | Bonus | 11/18/2007 |
Programming will default the earnings code BOL with an amount of $860 (or a prorated amount based on the employee’s Full Time Equivalency [FTE]) into eligible employee timesheets for the pay period ending 12/1/07. In addition, coding is being developed to automatically calculate and default overtime differential pay due, using earnings code ‘BSO’ OT-Differential Pay 12/14/2007, for those employees who recorded overtime from 6/17/07 through 11/17/07. The default of the BOL and any applicable BSO earnings is scheduled to occur the evening of December 2, 2007.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents’ institutions are responsible for implementing the new earnings code in their payroll systems.
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DATE: | November 13, 2007 | ||
---|---|---|---|
SUBJECT: | Elimination of the State of Kansas Paycard Program Enrollment Fee | ||
EFFECTIVE DATE: | October 4 , 2007 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Changes to the State of Kansas Paycard Program Account Agreement |
In accordance with HB 2316, Session 2007 which amended KSA 44-314, the $ 3.50 enrollment fee has been eliminated from the State of Kansas Paycard Program effective October 4, 2007. Other changes to the Skylight Debit Card Account Agreement are as follows:
- A free VISA upgrade will be offered to existing accountholders.
- All new enrollees will receive a free VISA upgrade upon their first deposit.
The amended fee schedule is posted to the A&R website at Paycard Program under the State of Kansas Paycard Program, Account Fees link.
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DATE: | November 26, 2007 | ||
---|---|---|---|
SUBJECT: | December 2007 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | joyce.dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: | December 2007 Payroll Processing |
As 2007 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2007 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2007 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2008 balances; a corrected W-2 (Form W-2C) for 2007 will not be issued for the employee involved.
FINAL 2007 PAYCHECK
The final on-cycle paychecks for calendar year 2007 will be issued December 28, 2007. Paychecks will be mailed on December 27, 2007. The final off-cycle paychecks for calendar year 2007 will be issued on December 31, 2007 (generated from the off-cycle processed on December 26, 2007).
PAYCHECK REVERSALS
Any 2007 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 26, 2007 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 26, 2007 will update calendar year 2008 balances and will not be reflected in the employee’s 2007 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 26, 2007 to enter paycheck adjustment requests for any 2007 paychecks. Adjustments processed in the December 26, 2007 off-cycle payroll will be reflected on the employee’s 2007 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2007 paycheck has been previously adjusted and requires additional adjustment, form DA-180, ‘SHARP Paycheck Reversal/Adjustment/Supplemental’, should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Friday, December 14, 2007.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 14, 2007 for inclusion in the December 26, 2007 off-cycle. However, if a large volume of DA-180 forms is received on the December 14, 2007 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2007 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 26, 2007 which are adjusting paychecks issued prior to January 1, 2008 will not result in a W-2C; the adjustment will update the employee’s 2008 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 26, 2007 will update the employee’s 2008 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 15, 2007, paid December 28, 2007 are due to the Department of Administration by 6:00 a.m. on December 19, 2007.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2007 Paycheck Reversals
Regent Institutions must submit all transmittals for 2007 paycheck reversals by 5:00 p.m. on Friday, December 21, 2007 in order to update the employee’s 2007 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2008 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2008 submitted after 5:00 pm on December 21, 2007 should default the pay adjust check date to January 1, 2008.
2007 Adjustments and Supplementals
In order to update employee balances for 2007, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 21, 2007. The Run B off-cycle for the pay period ending December 15, 2007 generated on the night of Wednesday, December 26, 2007 will have a check issue date of December 31, 2007; all activity for this off-cycle will be reflected in the employees’ 2007 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2007 date.
2008 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2008, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 21, 2007, will be considered to be 2008 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2008 business, the employee’s 2008 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2008 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2008, agencies should default the pay adjust check date to January 1, 2008).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2008, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2008 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2008 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 21, 2007 deadline for the December 26, 2007 Run B’s off-cycle payroll will not be processed until the January 22, 2008 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 14, 2008. The deadline for submitting payroll interface files for the January 22, 2008 off-cycle is 5:00 p.m. on Friday, January 18, 2008.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction panel for 2007 United Way or Community Health Charities contributions should be dated between December 16, 2007 and December 29, 2007 in order for the last 2007 deduction to be taken on the paycheck issued December 28, 2007. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly. For calendar year 2008, agencies can enter a new row effective-dated between December 16, 2007 and December 29, 2007 in order for the first deduction for United Way or Community Health Charities for 2008 to be taken on the January 11, 2008 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 14, 2008 should be entered.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding
and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar
year. To facilitate this requirement, an email notification will be sent on December 3, 2007 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced
EIC payments. Notifications will be sent to the employee’s email address listed under ‘Update
My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login. Notifications will be sent to the agency email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2008 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 14, 2007 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 21, 2007 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ and/or ‘New W-5 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2008.
The KPAY320 will be processed the evening of December 21, 2007. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2008 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2008 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions and/or stop any advance EIC payments for paychecks with a 2008 pay date.
For any 2008 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 21, 2007 and January 1, 2008, agency personnel will need to enter the data with a January 2, 2008 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2008 for any electronic W-4s received in this time period.
Note: These processes relating to W-4 exemption status will update both the Federal Tax Data and the Kansas State Tax Data records. Beginning January 1, 2008 with the new Form K-4, Employee Withholding Allowance Certificate, it will be possible to have State of Kansas number of allowances, marital status, additional withholding, and exemption claim options that differ from Federal options. The tax data should be entered with an effective date on or after January 2, 2008. See Information Circular 08-P-011 for information pertaining to the use of Form K-4. The 2008 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 21, 2007 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2008. The new tax data row will be dated January 1, 2008. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2008 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
Deduction Information
All deductions for calendar year 2008 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
- Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 26, 2007. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. Any arrearage collections made by personal reimbursement that are collected after December 19, 2007, and prior to December 26, 2007, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2007 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2007 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 15, 2007 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has a mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 6:00 pm on December 26, 2007 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 26, 2007 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 21, 2007. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 28, 2007 and January 4, 2008. W-2 forms will be mailed on or before January 31, 2008. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2007 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular, and in the Informational Circular No. 08-P-012, Changes to the Payroll Processing Schedule for the Payroll Period Ending December 15, 2007, dated November 2, 2007. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.
Attachment
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DATE: | November 28, 2007 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2008 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | nancy.ruoff@da.ks.gov |
APPROVAL: | |||
SUMMARY: | IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2008 |
The Internal Revenue Service (IRS) has increased the standard mileage rate from 48.5 cents to 50.5 cents beginning January 1, 2008 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023. Using this methodology, fringe benefit income is calculated by multiplying the 50.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2008 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,000. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
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DATE: | November 30, 2007 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Payroll Services has been notified of the following address change for Thrivent Financial for Lutherans (VTSA #064). Effective immediately, remittances should be mailed as follows:
Thrivent Financial for Lutherans
4321 N. Ballard Road
Appleton, WI 54919-5001
Vendor number 390123480-00 in STARS has been updated to reflect the address change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP system. Regents’ institutions are responsible for ensuring this change is reflected in their individual systems.
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DATE: | December 12, 2007 | ||
---|---|---|---|
SUBJECT: | New Advance Earned Income Credit Tables for 2008 | ||
EFFECTIVE DATE: | January 1, 2008 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | sunni.zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: | New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2008 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2008. The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2008. In order to use the attached tables, income must be annualized. When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
The IRS has also released the 2008 Form W-5 – Earned Income Credit Advance Payment Certificate. The 2008 form can be obtained on the IRS website at http://www.irs.gov/pub/irs-pdf/fw5.pdf. The 2007 Form W-5 expires on December 31, 2007. The 2008 Form W-5 must be filed with the employer before advance 2008 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2008 earned and adjusted gross income will each be less than $33,995.00 for single employees or $36,995.00 if filing jointly (include spouse’s income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the advance EIC for 2008 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2008.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
An e-mail notification was sent on December 3, 2007 to all SHARP employees receiving advance EIC payments in 2007. The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2008. The notification was sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
Agency personnel have until 6:00 p.m. on December 21, 2007 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2008. It is important that agency personnel check the ‘New W-5 Received’ radio button on the employee’s ‘Federal Tax Data 2’ page for the new effective-dated row that is entered.
The KPAY320 will process in the batch cycle generated the evening of December 21, 2007. This process will search for employees who were sent a W-5 notification. If a new W-5 has not been received, a January 1, 2008 effective-dated row will be inserted in the employee’s Tax Data record with an EIC status of ‘Not Applicable’. (Please note the KPAY320 process will also update all employees claiming exemption from withholding tax in 2007, if a new W-4 has not been received. The update will place a January 1, 2008 effective-dated row in the employee’s tax record with a marital status of ‘single’ and zero exemptions.)
For any Forms W-5 for 2008 (or Forms W-4 for 2008 for employees claiming exemption from withholding) received between December 21, 2007 and January 1, 2008, agency personnel will need to enter the data with a January 2, 2008 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 4, 2008 in order to be reflected in the on-cycle paycheck dated January 11, 2008. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 21, 2007. The report will be available in the agency directory on the MVS on Wednesday, December 26.
The Department of Administration will make all of the necessary changes in the computation of the advance EIC for SHARP agencies. Regent’s institutions are responsible for implementing the new advance EIC rates in their respective payroll systems.
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Attachment: Advance Earned Income Credit Formulas PDF
DATE: | December 12, 2007 | ||
---|---|---|---|
SUBJECT: | 2008 Percentage Method Tables for Federal Tax Withholding | ||
EFFECTIVE DATE: | January 1, 2008 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | sunni.zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2008. |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2008. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2008. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,500 for 2008.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous years, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 3, 2007 to all SHARP employees who were exempt from federal withholding in 2007. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2008. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2008 W-4s. As of this date, the IRS has not issued the 2008 Form W-4 - Employee’s Withholding Allowance Certificate. Once the W-4 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/SHARP/infolist.htm. Employees should submit their new W-4s by December 17, 2007 to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 21, 2007 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2008.
The KPAY320 will process during the batch cycle generated on the evening of December 21, 2007. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2008 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’. (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2007 in which the ‘New W-5 Received’ radio button is not checked. The update will insert a January 1, 2008 effective dated row with an EIC Status of ‘Not Applicable’.)
For any Forms W-4s for 2008 (or Forms W-5s for 2008 for employees claiming the advance EIC) received between December 21, 2007 and January 1, 2008, agency personnel will need to enter the data with a January 2, 2008 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 4, 2008 in order to be reflected in the on-cycle paycheck dated January 11, 2008. Agency Workflow Administrators will also need to change the effective date to January 2, 2008 for any electronic FormsW-4s for 2008 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 2007 must file a new 8233 form for calendar year 2008 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 21, 2007 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2008. The new tax data row will be dated January 1, 2008. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2008 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 21, 2007. The report will be available in the agency directory on the MVS on Wednesday, December 26. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Tables for Percentage Method of Withholding PDF
DATE: | December 18, 2007 | ||
---|---|---|---|
SUBJECT: | Addition of New Voluntary Tax Sheltered Annuity Company | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Change |
Payroll Services has been notified that the following company is authorized to write voluntary tax sheltered annuities effective immediately for institutions under the authority of the Kansas State Board of Education:
First Investors Corp
PO Box 7837
Edison, NJ 08818-7837
A new vendor number/suffix of 132608328-00 has been assigned in STARS and VTSA Company number 844 has been assigned in SHARP as an investment option.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | December 20, 2007 | ||
---|---|---|---|
SUBJECT: | Annual Purchase Limit for Savings Bonds | ||
EFFECTIVE DATE: | January 1, 2008 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Purchase Limit for Savings Bonds Set at $5,000 |
The U.S. Department of the Treasury has announced the annual limitation on purchases of United States Savings Bonds will be set at $5,000 per Social Security Number, effective January 1, 2008. The limit applies separately to Series EE and Series I savings bonds, and separately to bonds issued in paper or electronic form. Under the new rules, an individual can buy a maximum of $5,000 worth of electronic and paper bonds of each series in a single calendar year, or a total of $20,000, in single ownership form.
Additional information regarding the change in the purchase limit for savings bonds can be found on the Department of the Treasury web site at: http://www.treasurydirect.gov . Please share this information with your employees who purchase savings bonds through payroll deduction.
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DATE: | January 14, 2008 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2007 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Sunni Zentner Debbie Esquibel |
(785) 296-7058 (785) 368-6313 |
|
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2007 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2007 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 29, 2007. This report should be downloaded and retained by your agency to meet your historical record needs. This report will be removed from your MVS mailbox and will be no longer available for downloading after January 27, 2008.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2007 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2007 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2007. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2007 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2008. At that
time, they should be sorted in alphabetical order by last name, first name, and middle initial
within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2007 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2002 through 2007, agencies are strongly encouraged to recommend that employees use the ‘W-2 Reissue Request’ functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/ <------- Broken link. After logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2007, 2006, 2005, 2004, 2003, or 2002) the reissued W-2 is needed. Duplicate W-2’s for 2002 - 2006 are currently available, and duplicate W-2’s for 2007 will be available Friday, January 25, 2008.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2007 W-2's for each printing. The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID. Requests for duplicate W-2's for years prior to 2007 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.ks.gov.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle and off-cycle paychecks dated December 28, 2007 and off-cycle checks dated December 31, 2007 are included in the 2007 W-2 amounts.
Attachments: 2007 W-2 Wage and Tax Statement Calculations
Sample KPAY318.SQR (.pdf)
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DATE: | January 14, 2008 | ||
---|---|---|---|
SUBJECT: | 2008 W-2 Production Report Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: | |||
SUMMARY: | 2008 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2008 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2008 W-2 production reports are scheduled to be generated:
- Friday, February 22, 2008
- Friday, March 21, 2008
- Friday, April 18, 2008
- Friday, May 16, 2008
- Friday, June 13, 2008
- Friday, July 11, 2008
- Friday, August 8, 2008
- Friday, September 5, 2008
- Friday, October 3, 2008
- Friday, October 31, 2008
- Friday, November 14, 2008
- Wednesday, November 26, 2008
- Wednesday, December 10, 2008
- Monday, December 15, 2008
- Monday, December 22, 2008
- Wednesday, December 24, 2008
- Monday, December 29, 2008 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2’s for 2008 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent’s institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
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DATE: | January 29, 2008 | ||
---|---|---|---|
SUBJECT: | Establish Organization Dues Deduction for Teamsters (JJA) | ||
EFFECTIVE DATE: | Payroll Period Ending February 9, 2008 | ||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: | Establish Organization Dues for Juvenile Justice Authority |
The Teamsters Organization has met the requirements of K.S.A. 75-5501(3)(b) for employee membership dues deductions for employees at the Juvenile Justice Authority. Teamsters Local Union #696 has been established for employees of the Juvenile Justice Authority facilities located in Topeka, Atchison, and Beloit. Teamsters Local Union #795 has been established for employees of the Juvenile Justice Authority facility in Larned.
The bi-weekly organization dues deduction is based on the hourly pay rate of the participating employee. Therefore, new deduction codes are being added in SHARP effective January 27, 2008 to accommodate payroll deduction of membership dues to these organizations as follows:
Hourly Pay Rate Range |
Bi-Weekly Deduction Amount | Deduction Code for Local #696 | Deduction Code for Local #795 |
---|---|---|---|
$12.00 - $12.21 |
$13.50 |
ORG600 |
ORG620 |
$12.22 - $12.66 |
$14.00 |
ORG601 |
ORG621 |
$12.67 - $13.10 |
$14.50 |
ORG602 |
ORG622 |
$13.11 - $13.55 |
$15.00 |
ORG603 |
ORG623 |
$13.56 - $13.99 |
$15.50 |
ORG604 |
ORG624 |
$14.00 - $14.44 |
$16.00 |
ORG605 |
ORG625 |
$14.45 - $14.88 |
$16.50 |
ORG606 |
ORG626 |
$14.89 - $15.33 |
$17.00 |
ORG607 |
ORG627 |
$15.34 - $15.77 |
$17.50 |
ORG608 |
ORG628 |
$15.78 - $16.21 |
$18.00 |
ORG609 |
ORG629 |
$16.22 - $16.66 |
$18.50 |
ORG610 |
ORG630 |
$16.67 - $17.10 |
$19.00 |
ORG611 |
ORG631 |
The deduction for member dues will be established effective with the payroll period beginning January 27, 2008 and ending February 9, 2008, paid February 22, 2008.
As a reminder, this organization is only available for membership to employees who work in specific positions at the Juvenile Justice Authority facilities.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this update in the SHARP system. Regent’s institutions should ensure that the use of the listed deduction codes is reflected in their individual systems effective January 27, 2008.
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DATE: | February 1 , 2008 | ||
---|---|---|---|
SUBJECT: | Increase in Parking Fees for City of Topeka Parking Garages | ||
EFFECTIVE DATE: | Payroll Period Beginning January 27, 2008 and Ending February 9, 2008, Paid February 22, 2008 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-5369 |
|
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for City of Topeka Parking Garages |
Effective March 1, 2008, the City of Topeka is increasing its monthly parking rates, including reserved stalls, for all City parking garages. This rate increase impacts State of Kansas agencies with contracts for parking in the Centre City Garage (9th and Kansas) and the 512 Jackson garage. The monthly parking rates will increase to $64.50 a month for non-reserved spaces and $72.00 a month for reserved spaces. Employees who park in these garages will see their parking deduction increase as follows starting with the payroll period beginning January 27, 2008 and ending February 9, 2008, paid February 22, 2008:
Garage Address |
Dept/Agy |
Rate |
Parking Deduction Code |
New bi-weekly deduction effective for pped 2/09/2008 |
Admin Fee Deduction Code |
New Admin Fee effective for pped 2/09/2008 |
---|---|---|---|---|---|---|
512 Jackson |
Dept. on Aging |
Standard |
PPKA02 |
$18.23 |
PKAD04 |
$1.39 |
|
|
|
APKA02 |
$18.23 |
PKAD04 |
$1.39 |
|
|
|
|
|
|
|
Centre City Garage |
Dept. of Agriculture |
Standard |
PPKA07 |
$29.77 |
PKAD11 |
$2.28 |
|
|
|
APKA07 |
$29.77 |
PKAD11 |
$2.28 |
|
|
Reserved |
PPKA57 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
APKA57 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
|
|
|
|
Centre City Garage |
Ethics Commission |
Standard |
PPKA08 |
$29.77 |
PKAD11 |
$2.28 |
|
|
|
APKA08 |
$29.77 |
PKAD11 |
$2.28 |
|
|
Reserved |
PPKA58 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
APKA58 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
|
|
|
|
Centre City Garage |
Conservation Commission |
Standard |
PPKA09 |
$29.77 |
PKAD11 |
$2.28 |
|
|
|
APKA09 |
$29.77 |
PKAD11 |
$2.28 |
|
|
Reserved |
PPKA59 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
APKA59 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
|
|
|
|
Centre City Garage |
Kansas Water Office |
Standard |
PPKA010 |
$29.77 |
PKAD11 |
$2.28 |
|
|
|
APKA010 |
$29.77 |
PKAD11 |
$2.28 |
|
|
Reserved |
PPKA060 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
APKA060 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
|
|
|
|
Centre City Garage |
State Board of Technical Professions |
Reserved |
PPKA61 |
$33.23 |
PKAD50 |
$2.54 |
|
|
|
APKA61 |
$33.23 |
PKAD50 |
$2.54 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | February 7 , 2008 | ||
---|---|---|---|
SUBJECT: | Increase in Parking Fees for City of Topeka Surface Lot; Addition of New Parking Admin Code | ||
EFFECTIVE DATE: | Payroll Period Beginning January 27, 2008 and Ending February 9, 2008, Paid February 22, 2008 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-5369 |
|
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for City of Topeka Parking Garages |
Effective March 1, 2008, the City of Topeka is increasing its monthly parking rates for surface lots. This rate increase impacts Department on Aging contracts for parking in the 412 Jackson surface lot. The monthly parking rates will increase to $45.00 a month. In addition, a new deduction code, PKAD16, is being established for the administration fee associated with the increased deduction. Employees who park in this lot will see their parking deduction increase as follows starting with the payroll period beginning January 27, 2008 and ending February 9, 2008, paid February 22, 2008:
Deduction Codes | New Bi-Weekly Deduction |
---|---|
PPKA01 | $16.15 |
APKA01 | $16.15 |
PKAD16 (Admin Fee) | $ 1.24 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | March 25, 2008 | ||
---|---|---|---|
SUBJECT: | Change in Employee Parking Fee for City of Topeka Surface Lot | ||
EFFECTIVE DATE: | Payroll Period Beginning March 9, 2008 and Ending March 22, 2008, Paid April 4, 2008 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-5369 |
|
APPROVAL: | |||
SUMMARY: | Decrease for Dept. on Aging Employee Parking Fees for City of Topeka Surface Lot |
Effective March 1, 2008, the City of Topeka increased its monthly parking rates for surface lots. This rate increase impacted Department on Aging contracts for parking in the 412 Jackson surface lot. In response to the increase, the Department on Aging recently increased the agency-paid portion of the parking fee. Employees who park in this lot will see their parking deduction decrease as follows starting with the payroll period beginning March 9, 2008 and ending March 22, 2008, paid April 4, 2008:
Deduction Codes | New Bi-Weekly Deduction |
---|---|
PPKA01 | $9.23 |
APKA01 | $9.23 |
PKAD16 (Admin Fee) | $ 0.71 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | March 28, 2008 | ||
---|---|---|---|
SUBJECT: | Organization Dues Name and Rate Change for ORG133 | ||
EFFECTIVE DATE: | Payroll Period Ending January 26, 2008 for Name Change Payroll Period Ending April 19, 2008 for Rate Change |
||
CONTACT: |
Janice Wolfley |
(785) 296-3699 |
|
APPROVAL: | |||
SUMMARY: | Org Dues Name Change from Public Service Employees Union Local 1132 to Public Service Employees Local Union 1290 P.E. |
Effective with the payroll period beginning January 13, 2008, the Public Service Employees Union, Local 1132 has changed its name to Public Service Employees Local Union 1290 P.E. due to restructuring. All employees who were previously known as members of Public Service Employees Union, Local 1132 will now be known as members of Public Service Employees Local Union 1290 P.E. The current deduction code used for this organization, ORG133, will remain the same. However, the organization dues for members will be reduced from $ 14.00 to $ 12.97 per biweekly payroll period. The new rate will become effective with the payroll period beginning April 6, 2008 and ending April 19, 2008, paid May 2, 2008.
Public Service Employees Local Union 1290 P.E. will continue to represent employees at the University of Kansas and the University of Kansas Medical Center.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the name and rate changes in the SHARP system. Regent’s institutions are responsible for ensuring this name change is reflected in their individual systems as well as the new rate effective for paychecks issued on or after May 2, 2008.
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DATE: | April 11, 2008 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2008 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: |
Joyce Dickerson |
(785) 296-3979 |
|
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2009 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 14, 2008 will use fiscal year 2008 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 14, 2008 will use fiscal year 2009 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 pay period being adjusted. For example, the Run B off-cycle (processed June 25, paid June 30) for the pay period ending June 14, 2008 will be charged to fiscal year 2008 expenditures. The Run C off-cycle (processed June 30, paid July 3) for the pay period ending June 14, 2008 will be charged to fiscal year 2009 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run B off-cycle scheduled for June 25, 2008 (paid June 30) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2008 expenditures.
Once the Run B off-cycle for the period ending June 28, 2008 (processed July 9, paid July 14) has been processed, agencies should not request or process paycheck reversals until STARS FY 2008 closing has been successfully completed. STARS is scheduled to resume processing July 23, 2008.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 22, 2008 and should be completed by Monday morning, June 23. In that process, a new row will be added to the Department Budget tables with an effective date of June 15, 2008 (beginning date of the first on-cycle payroll charged to FY2009). The Budget End Date will be June 14, 2009. Agencies should not enter any rows with an effective date greater than or equal to June 15, 2008 until after the FY2009 insert has been completed. When adding new rows for FY2009, agencies should verify that June 14, 2009 was used as the Budget End Date for FY2009.
GHI Adjustments
As of July 1, 2008, NO payroll processing for GHI adjustments should be made for contract year 2006. Contact Gina Vinyard, Kansas Health Policy Authority, at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 2006.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2008. 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 (assuming processing occurs before midnight), the Run B off-cycle for the pay period ending June 14, 2008 (processed June 25, paid June 30) will have 360 as the Julian date in the document number and expenditures will be charged to fiscal year 2008. The Run C off-cycle for the pay period ending June 14, 2008 (processed June 30, paid July 3) will have 365 as the Julian date in the document number and expenditures will be charged to fiscal year 2009. The Run A off-cycle for the pay period ending June 28, 2008 (processed July 7, paid July 11) will have 007 as the Julian date in the document number and expenditures will be charged to fiscal year 2009.
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 2009.
Reminders
To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:
1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls 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 on-cycle paycheck for the period and will require special handling.
2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 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 ‘Nontaxable’.
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DATE: | April 11, 2008 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2008 | ||
CONTACT: |
Sunni Zentner |
(785) 296-7058 |
|
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2009 will require entry into the SHARP v8.9 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income. FY2009 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 30, 2008 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 28, 2008 (paychecks dated July 11, 2008).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment: DA-171 (.pdf)
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DATE: | May 7, 2008 | ||
---|---|---|---|
SUBJECT: | Updated Index Codes for Agency and DOA Clearing Funds | ||
EFFECTIVE DATE: | Pay Period Beginning December 16, 2007; Ending December 29, 2007; Paid January 11, 2008 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | nancy.ruoff@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Updated Index Codes for Agency and DOA Clearing Funds |
The attached “Index Codes for Agency and DOA Clearing Funds” spreadsheet includes all index codes available which became effective with the pay period beginning December 16, 2007. The spreadsheet contains updates for the 2008 Group Health Insurance description changes and the clarification regarding which Local earnings tax codes are included in Department of Administration Clearing Funds 7704 and 9030. This document has been updated for the changes noted above and replaces the document issued with Informational Circular 07-P-013 dated November 14, 2006.
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Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | May 9, 2008 | ||
---|---|---|---|
SUBJECT: | Addition of Four New Earnings Codes due to KOSE Agreement | ||
EFFECTIVE DATE: | May 18, 2008 | ||
CONTACT: |
Earl Brynds |
(785) 296-5376 |
|
APPROVAL: | |||
SUMMARY: | Addition of Four New Earnings Codes due to Memorandum of Agreement between the State of Kansas and KOSE |
A new Memorandum of Agreement between the State of Kansas and the Kansas Organization of State Employees (KOSE) relating to the terms and conditions of employment for those employees represented by KOSE will be signed effective May 16, 2008. As a result of the agreement, the following earnings codes have been added to SHARP effective May 18, 2008 to address new pay and leave scenarios covered in the agreement:
Earnings Code |
Description |
Short Description |
Effective Date |
---|---|---|---|
ST7 | Standby Pay-KOSE | StandbyPay | May 18, 2008 |
S15 | Shift 15-KOSE-$.50 | Shift 15 | May 18, 2008 |
KOE | Leave-Union Business-Exempt | LeaveUnion | May 18, 2008 |
KOS | Leave-Union Business | LeaveUnion | May 18, 2008 |
Earnings Code ST7 has been established to reflect the standby compensation rate of $ 2.00 per hour under the new agreement. Earnings Code S15 has been established to reflect the shift differential rate of $.50 per hour under the new agreement.
Per the agreement, Union representatives will be allowed time off with pay consistent with the operational needs of the employer for Union business such as state or area-wide committee meetings or state or International conventions, and training activities provided the employee provides reasonable notices to his or her supervisor of such absence. Time may be used in one hour increments. Earnings Code KOE has been established for time reporting for FLSA exempt employees and earnings code KOS has been established for time reporting for FLSA non-exempt employees. All leave for Union activities shall be reported on employee time sheets using the appropriate KOE or KOS earnings codes.
In accordance with the agreement, leave for Union activities shall not exceed 800 hours on a statewide basis per calendar year. The Division of Personnel Services will monitor the usage of KOE/KOS earnings to ensure the 800 hour limitation is not exceeded.
The earnings codes noted above apply only to employees in covered positions represented by KOSE. Detailed information about the newly signed KOSE memorandum of agreement as well as information regarding the PERB assigned units including job codes, class titles and the number of unit eligible employees in each is available on the Department of Administration’s Labor Relations website at: http://www.da.ks.gov/ps/subject/labor/laborrelations.htm . Agencies are responsible for ensuring that the appropriate earnings codes are reported for their employees.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these new earnings codes in the SHARP system. Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems.
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DATE: | June 4, 2008 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage – FY2009 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 15, 2008 and Ending June 28, 2008, Paid July 11, 2008 | ||
CONTACT: |
Nancy Ruoff |
(785) 296-5369 |
|
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - Curtis Building Garage – FY2009 |
Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2009. To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 15, 2008 and ending June 28, 2008, paid July 11, 2008:
Deduction Code | New bi-weekly rate for pped 6/30/08 |
---|---|
PKT08B | 23.86 |
PPKT08 | 23.86 |
PKAD05 (admin fee) | 1.83 ($23.86 * .0765) |
Employees with the Department of Commerce, Attorney General, and Board of Pharmacy who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:
Deduction Code | New bi-weekly rate for pped 6/30/08 |
---|---|
PKT10B | 11.92 |
PPKT10 | 11.92 |
PKAD07 (admin fee) | 0.91 ($11.92 * .0765) |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | June 18, 2008 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2009 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 15, 2008; Ending June 28, 2008; Paid July 11, 2008 |
||
CONTACT: | Earl Brynds | (785) 296-5376 | Earl.Brynds@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2009-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 2009. The fiscal year 2009 rates will become effective with the on-cycle payroll period beginning June 15, 2008, ending June 28, 2008 and paid July 11, 2008. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2008.
In FY2009, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). Agencies are reminded of the moratoriums for KPERS Death and Disability Insurance contribution that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. 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 the moratorium period.
Legislation passed in 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2009, employer rates are 7.35% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 11.35%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS life and disability insurance.
The Division of Accounts and Reports, 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 STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2009.
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Attachments A, B & C (.pdf)
DATE: | June 25, 2008 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | July 1, 2008 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | nancy.ruoff@da.ks.gov |
APPROVAL: | |||
SUMMARY: | IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2008 |
The Internal Revenue Service (IRS) has increased the standard mileage rate from 50.5 cents to 58.5 cents beginning July 1, 2008 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The standard mileage rate of 50.5 cents is effective for miles driven between January 1 – June 30, 2008 and 58.5 cents for miles driven on or after July 1, 2008. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 58.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2008 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,000. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
KEO:ntr
DATE: | June 26, 2008 | ||
---|---|---|---|
SUBJECT: | Organization Dues Change for ORG500 | ||
EFFECTIVE DATE: | Payroll Period Ending July 12, 2008 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Change in Organization Dues Deduction for Kansas Organization of State Employees (KOSE) |
The organization dues for members of the Kansas Organization of State Employees, ORG500, will be increased from $13.61 to $13.96 per biweekly payroll period. The new rate will become effective with the payroll period beginning June 29, 2008 and ending July 12, 2008, paid July 25, 2008.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after July 25, 2008.
KEO:ewb
DATE: | June 27, 2006 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | Payroll Period Ending July 15, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wofley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning July 2, 2006 and ending July 15, 2006, paid July 28, 2006 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.35 or Less | $ 588.00 or Less | $ 8.55 |
ORG002 | $ 7.36 - $ 8.51 | $ 588.80 - $ 680.80 | $ 9.05 |
ORG003 | $ 8.52 - $ 9.39 | $ 681.60 - $ 751.20 | $ 9.55 |
ORG004 | $ 9.40 - $ 10.35 | $ 752.00 - $ 828.00 | $10.05 |
ORG005 | $ 10.36 - $ 11.41 | $ 828.80 - $ 912.80 | $10.55 |
ORG006 | $ 11.42 or Greater | $ 913.60 - or Greater | $11.03 |
ORG888 | KU Medical Center - Nurses | $11.03 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $ 9.25 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after July 28, 2006.
RLM:JJM:ewb
DATE: | July 5, 2006 | ||
---|---|---|---|
SUBJECT: | Addition of New Parking Codes for Curtis Building Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning June 18, 2006 and Ending July 1, 2006, Paid July 14, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Codes for Curtis Building Garage |
Pursuant to an agreement entered into by the Kansas Department of Health and Environment and the Department of Administration for parking in the Curtis Building Garage, parking deduction codes PKT12B and PPKT12 were added to SHARP. Parking codes PKT12B (after tax) and PPKT12 (pre-tax) will both result in an employee bi-weekly parking deduction of $22.48. Parking administrative fee deduction code PKAD15 was also added. Employees enrolled in parking deduction code PPKT12 will also need to be enrolled in this new parking administrative fee code. Parking code PKAD15 will result in an employer bi-weekly contribution of $1.72. These parking codes are effective with the pay period beginning June 18, 2006, ending July 1, 2006, and paid July 14, 2006
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
RLM:JJM:kao
DATE: | August 18, 2006 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30 | ||
EFFECTIVE DATE: | Payroll Period Ending September 9, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code ‘ORG030’, will change from $24.55 to $25.15 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 27, 2006 and ending September 9, 2006, paid September 22, 2006.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 22, 2006.
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DATE: | September 11, 2006 | ||
---|---|---|---|
SUBJECT: | New Community Health Charities Deduction Code | ||
EFFECTIVE DATE: | Payroll Period Ending December 30, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of Deduction Code for Community Health Charities |
The legislature passed, and Governor Sebelius signed, HB2727 authorizing a new payroll deduction for Community Health Charities beginning January 1, 2007. A new, after-tax, deduction code ‘UTD100’ will be added to the SHARP deduction code table effective with the pay period December 17, 2006 – December 30, 2006 and paid January 12, 2007.
For calendar year 2007, agencies can enter in SHARP a new General Deduction row effective-dated between December 17, 2006 and December 30, 2006 in order for the first deduction for 2007 to be taken on the January 12, 2007 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2007 should be entered.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to establish this deduction code for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made to their individual payroll systems for all paychecks issued for the pay period ending December 30, 2006 and beyond. The fund/index combination for the new deduction code will be Fund 9094, Index 9715 which is the same fund/index combination used for United Way deductions. The Division of Accounts and Reports, Reconciliation and Remittance Team will be responsible for the remittance of the deductions for all SHARP and Regent employees to Community Health Charities.
RLM:JJM:ntr
DATE: | September 18, 2006 | ||
---|---|---|---|
SUBJECT: | Addition of Employer Deduction Codes/Funding Changes for Health Savings Account | ||
EFFECTIVE DATE: | Pay Period Beginning December 17, 2006; Ending December 30, 2006; Paid January 12, 2007 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | nancy.ruoff@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Employer Payroll Deduction Codes and Funding Changes for the Health Savings Account Program |
For Plan Year 2007, the Health Care Commission approved the addition of an employer contribution to the Health Savings Account (HSA) of each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. Employer contributions for the Health Savings Accounts will be remitted to UMB on payday and should be posted to the individual employee accounts on payday.
The new HSA annual employer contribution amounts for full-time employees are $900 for single coverage and $1350 for dependent coverage. For part-time employees, they are $675 for single coverage and $1012.56 for dependent coverage.
For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the HSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Object Code 1950.
For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost. Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from the Kansas Health Policy Authority on a monthly, quarterly, or annual basis.
To accommodate the new HSA employer contribution, new plan types and deduction codes will be added in SHARP effective for the payroll period beginning December 17 and ending December 30, 2006, paid January 12, 2007. These new plan types/deduction codes are:
All employees except Regent 9-month:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y | HSASGL | HSA-Single Coverage/High Ded | HSA-Single |
6Y | HSASGX | HSA-Single Coverage/Part-time | HSA-SglePT |
6Z | HSADEP | HSA-Dependent Coverage/HighDed | HSA-Depend |
6Z | HSADEX | HSA-Dependent Cov/Part-time | HSA-DepPT |
Regent 9-month (16deductions):
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
---|---|---|---|
6Y | HSXSGL | Health Sav Acct-Single-FT-16 | HSXSGL |
6Y | HSXSGX | Health Sav Acct-Single-PT-16 | HSXSGX |
6Z | HSXDEP | Health Sav Acct-Dep-FT-16 | HSXDEP |
6Z | HSXDEX | Health Sav Acct-Dep-PT-16 | HSXDEX |
The Division of Accounts and Reports, Payroll Services Section will remit the employee and employer monies to UMB for all agencies. The KPAYHSA2 report is available in the agency MVS directories and will be modified to provide employee and employer detail for each remittance period.
REGENTS PAYROLL SYSTEM PROCESSING CHANGES
The following changes will be made to accommodate the new employer contribution and to make the fund/index processing for the employee deduction consistent with previously established standards.
The following additions/change to the Fund/Index combination will be completed for the Department of Administration clearing fund for Health Savings Account Deductions:
AGENCY | FUND | BUDGET UNIT | INDEX |
---|---|---|---|
173 | 9051 | 9075 | 9764 SHARP EE Index (replacing 9075) |
173 | 9051 | 9075 | 9864 SHARP Employer Index (new) |
Effective 12/17/06, index code 9764 will replace the previously established index code of 9702 to record the receipt of the employee deductions by the individual Regent’s institutions. In addition, index code 9664 has been added to the STARS system for each of the Regent’s Payroll Funds (98XX) to record the receipt of the new employer contribution by the individual Regent’s institutions. Attached is an updated copy of the “Index Codes for Agency and DOA Clearing Funds”. This document has been updated for the changes noted above and replaces the document issued with Informational Circular 06-P-009 dated October 14, 2005.
The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Health Savings Account employer contribution. Regent’s institutions are responsible for ensuring that the Health Savings Account employer contribution is available in their individuals systems. In addition, Regent’s institutions should be prepared to test their benefits interface and payroll files for the new deduction prior to November 1, 2006.
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Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | September 21, 2006 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - KPERS Building Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning September 10, 2006 and Ending September 23, 2006, Paid October 6, 2006 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - KPERS Building Garage |
Pursuant to the lease agreement executed by the Kansas Housing Resource Corporation for parking spaces in the KPERS Building Garage, parking fees will increase effective October, 2006. To facilitate this change, payroll deduction codes APKA12 and PPKA12 will increase to $11.54 per bi-weekly pay period effective with the payroll period beginning September 10, 2006 and ending September 23, 2006, paid October 6, 2006. The associated administrative fee code PKAD14 increases to $0.88 ($11.54 X .0765).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | October 2, 2006 | ||
---|---|---|---|
SUBJECT: | Optional Group Life Insurance Rate Changes | ||
EFFECTIVE DATE: | January 1, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Optional Group Life Insurance Rate Changes |
Please note that effective January 1, 2007 the Optional Group Life Insurance rates are changing as follows:
Age at the Beginning of the Calendar Year |
Monthly Premium per $1,000 |
---|---|
Under 25 | $0.05 |
25-29 | $0.06 |
30-34 | $0.08 |
35-39 | $0.09 |
40-44 | $0.10 |
45-49 | $0.14 |
50-54 | $0.21 |
55-59 | $0.40 |
60-64 | $0.61 |
65-69 | $1.18 |
70-74 | $1.90 |
75 and Older | $2.06 |
The Under 30 age range has changed to Under 25 and a new age range of 25-29 has been added.
An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available is $250,000.00. The age calculation will continue to be based on the employee’s attained age as of January 1st of the current calendar year.
The new rates are effective with coverage for the month of January 2007. Therefore, the January 26, 2007 paycheck (paycheck issued for the payroll period ending January 13, 2007) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month’s coverage.
The Division of Accounts and Reports, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to January 1, 2007.
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DATE: | October 12, 2006 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for 2007 | ||
EFFECTIVE DATE: | Calendar Year 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2007 |
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2007. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
IMPORTANT NOTE: Due to the SHARP v8.9 upgrade scheduled to occur in June 2007, changes to the attached processing schedules may need to occur in order to accommodate the actual conversion to v8.9. If changes to the schedule are needed, an informational circular will be issued which includes the revised processing dates and a message will be distributed to subscribers of the SHARP listserve announcing the revised dates.
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Attachment: Bi-Weekly Payroll Schedule for Calendar Year 2007 (pdf)
DATE: | October 18, 2006 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $97,500 effective January 1, 2007 |
The Social Security wage base for OASDI will be $97,500 for calendar year 2007. This is a $3,300 increase from the 2006 wage base of $94,200. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2007 will be $6,045. There continues to be no limit on wages subject to the Medicare tax in 2007. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $6,045 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | October 24, 2006 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2007 | ||
EFFECTIVE DATE: | January 1, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
Sunni Zentner | (785) 296-7058 | sunni.zentner@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | 2007 Deferred Compensation and Tax Sheltered Annuity Limits |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will increase effective January 1, 2007 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases from the lesser of $15,000 or 100% of includible compensation (2006 calendar year limit) to the lesser of $15,500 or 100% of includible compensation (2007 calendar year limit).
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases from $30,000 (2006 calendar year limit) to $31,000 (2007 calendar year limit). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $5,000 (for 2007, unchanged from 2006) to a total of $20,500.
Please note that the two different catch-up provisions cannot be used concurrently.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2007 is the lesser of $45,000 or 100% of compensation.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $220,000 (for 2006) to $225,000 (for 2007). The $225,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees who participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $22,500 ($225,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $31,500 ($225,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $325,000 (for 2006) to $335,000 (for 2007). However, participants should note their maximum annual compensation limit will be $321,428.57, since the $321,428.57 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $45,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $15,000 (for 2006) to $15,500 (for 2007). The age 50 or older catch-up provision is unchanged from 2006, remaining at $5,000 for 2007. Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on annual contribution by $5,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($15,500 for 2007) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
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DATE: | October 31, 2006 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2006 | ||
EFFECTIVE DATE: | November 2006 | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2006 holidays. |
Friday, November 10, 2006 (Veterans' Day), Thursday, November 23, 2006 and Friday, November 24, 2006 (Thanksgiving Holiday) are designated holidays for state service in 2006. Due to the holidays in November, variations have been made to the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, November 3, 2006
Payday for the payroll period ending October 21, 2006.
Time and leave interface agencies must have time and leave files for the period ending November 4, 2006 submitted to the Department of Administration for processing by 5:00 PM on November 3, 2006 (these files would normally be due Monday, November 6, 2006).
Regents’ Run C off-cycle payroll files for the period ending October 21, 2006 must be received by the Department of Administration by 5:00 PM on November 3, 2006.
Monday, November 6, 2006
Paysheets for the on-cycle payroll for the period ending November 4, 2006 will be created on Monday, November 6, 2006. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 6, 2006 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 4, 2006 will also occur November 6, 2006; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM.
The Run C off-cycle for the period ending October 21, 2006 will be processed November 6, 2006. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 9, 2006.
Tuesday, November 7, 2006
The second on-cycle preliminary pay calculation for the period ending November 4, 2006 will occur November 7, 2006.
Wednesday, November 8, 2006
The third on-cycle preliminary pay calculation for the period ending November 4, 2006 will occur November 8, 2006.
Thursday, November 9, 2006
Regents’ on-cycle payroll files for the period ending November 4, 2006 are due to the Department of Administration by 6:00 AM on November 9, 2006.
Final pay confirmation for the on-cycle payroll for the period ending November 4, 2006 will occur November 9, 2006. All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 9, 2006 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 9, 2006 in order to be reflected in the final paycheck created for the employee.
Regents’ Run A off-cycle payroll files for the period ending November 4, 2006 must be received by the Department of Administration by 5:00 PM on November 9, 2006.
Friday, November 10, 2006
(Veterans' Day Holiday)
Monday, November 13, 2006
The Run A off-cycle for the period ending November 4, 2006 will be processed November 13, 2006. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 17, 2006.
Tuesday, November 14, 2006
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 4, 2006 will be posted to STARS during Tuesday night's STARS batch processing cycle.
Regents’ Run B off-cycle payroll files for the period ending November 4, 2006 must be received by the Department of Administration by 5:00 PM on November 14, 2006 in order to be processed on Wednesday, November 15, 2006.
Wednesday, November 15, 2006
The Run B off-cycle for the period ending November 4, 2006 will be processed November 15, 2006. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 20, 2006.
Friday, November 17, 2006
Payday for the payroll period ending November 4, 2006.
Time and leave interface agencies must have time and leave files for the period ending November 18, 2006 submitted to the Department of Administration for processing by 5:00 PM on November 17, 2006 (these files would normally be due Monday, November 20, 2006).
Regents’ Run C off-cycle payroll files for the period ending November 4, 2006 must be received by the Department of Administration by 5:00 PM on November 17, 2006.
Monday, November 20, 2006
Paysheets for the on-cycle payroll for the period ending November 18, 2006 will be created on Monday, November 20, 2006. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 20, 2006 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 18, 2006 will also occur November 20, 2006; therefore, all time and leave data should be entered into SHARP and designated ‘OK to process’ by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 18, 2006.
The Run C off-cycle for the period ending November 4, 2006 will be processed November 20, 2006. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 27, 2006.
Tuesday, November 21, 2006
The second on-cycle preliminary pay calculation for the period ending November 18, 2006 will occur November 21, 2006.
Wednesday, November 22, 2006
Final pay confirmation for the on-cycle payroll for the period ending November 18, 2006 will occur November 22, 2006 (Final pay confirmation would normally occur Friday, November 24, 2006). All employees’ time and leave records must be ‘OK to Process’ by 6:00 PM on November 22, 2006 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 22, 2006 in order to be reflected in the final paycheck created for the employee.
Regents’ on-cycle payroll files for the period ending November 18, 2006 are due to the Department of Administration by 6:00 AM on November 22, 2006.
Regents’ Run A off-cycle payroll files for the period ending November 18, 2006 must be received by the Department of Administration by 5:00 PM on November 22, 2006.
Attached is a calendar for the month of November 2006, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
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Attachment: November 2006 Payroll Calendar
DATE: | November 2, 2006 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: |
IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2007 |
The Internal Revenue Service (IRS) has increased the standard mileage rate from 44.5 cents to 48.5 cents beginning January 1, 2007 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The new rate reflects the increase in prices for vehicles and fuel experienced during the last twelve months. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023. Using this methodology, fringe benefit income is calculated by multiplying the 48.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2007 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,000. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
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DATE: | November 14, 2006 | ||
---|---|---|---|
SUBJECT: | Updated Index Codes for Agency and DOA Clearing Funds | ||
EFFECTIVE DATE: | Pay Period Beginning December 17, 2006; Ending December 30, 2006; Paid January 12, 2007 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | nancy.ruoff@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Updated Index Codes for Agency and DOA Clearing Funds |
The Index Codes for Agency and DOA Clearing Funds spreadsheet issued with Informational Circular 07-P-005 dated September 18, 2006 inadvertently excluded index 9844 for the Wellness Fee. Attached is an updated copy of the “Index Codes for Agency and DOA Clearing Funds” effective with the pay period beginning December 17, 2006. This document has been updated for the changes noted above and replaces the document issued with Informational Circular 07-P-005 dated September 18, 2006.
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Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | November 15, 2006 | ||
---|---|---|---|
SUBJECT: | December 2006 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: | December 2006 Payroll Processing |
As 2006 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2006 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2006 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2007 balances; a corrected W-2 (Form W-2C) for 2006 will not be issued for the employee involved.
FINAL 2006 PAYCHECK
The final on-cycle paychecks for calendar year 2006 will be issued December 29, 2006. Paychecks will be mailed on December 28, 2006. The final off-cycle paychecks for calendar year 2006 will also be issued on December 29, 2006 (generated from the off-cycle processed on December 26, 2006).
PAYCHECK REVERSALS
Any 2006 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 26, 2006 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 26, 2006 will update calendar year 2007 balances and will not be reflected in the employee’s 2006 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 26, 2006 to enter paycheck adjustment requests for any 2006 paychecks. Adjustments processed in the December 26, 2006 off-cycle payroll will be reflected on the employee’s 2006 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2006 paycheck has been previously adjusted and requires additional adjustment, form DA-180, ‘SHARP Paycheck Reversal/Adjustment/Supplemental’, should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Friday, December 15, 2006.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2006 for inclusion in the December 26, 2006 off-cycle. However, if a large volume of DA-180 forms is received on the December 15, 2006 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2006 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 26, 2006 which are adjusting paychecks issued prior to January 1, 2007 will not result in a W-2C; the adjustment will update the employee’s 2007 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 26, 2006 will update the employee’s 2007 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 16, 2006, paid December 29, 2006 are due to the Department of Administration by 6:00 a.m. on December 21, 2006.
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2006 Paycheck Reversals
Regent Institutions must submit all transmittals for 2006 paycheck reversals by 5:00 p.m. on Friday, December 22, 2006 in order to update the employee’s 2006 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2007 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2007 submitted after 5:00 pm on December 22, 2006 should default the pay adjust check date to January 1, 2007.
2006 Adjustments and Supplementals
In order to update employee balances for 2006, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 22, 2006. The Run A off-cycle for the pay period ending December 16, 2006 generated on the night of Tuesday, December 26, 2006 will have a check issue date of December 29, 2006; all activity for this off-cycle will be reflected in the employees’ 2006 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2006 date.
2007 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2007, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 22, 2006, will be considered to be 2007 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2007 business, the employee’s 2007 balances will be updated. These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2007 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2007, agencies should default the pay adjust check date to January 1, 2007).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2007, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2007 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2007 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 22, 2006 deadline for the December 26, 2006 Run A’s off-cycle payroll will not be processed until the January 22, 2007 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January16, 2007. The deadline for submitting payroll interface files for the January 22, 2007 off-cycle is 5:00 p.m. on Friday, January 19, 2007.
GENERAL REMINDERS
United Way
The deduction END date on the general deduction panel for 2006 United Way contributions should be dated between December 17, 2006 and December 30, 2006 in order for the last 2006 deduction to be taken on the paycheck issued December 29, 2006. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2007, agencies can enter a new row effective-dated between December 17, 2006 and December 30, 2006 in order for the first deduction for United Way or Community Health Charities for 2007 to be taken on the January 12, 2007 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2007 should be entered. Please note that the code UTD100 for the Community Health Charities cannot be entered until December 17, 2006 or after. All other United Way codes can be entered earlier.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2006 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced EIC payments. Notifications will be sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center at: https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications will be sent to the agency email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2007 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 15, 2006 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 20, 2006 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ and/or ‘New W-5 Received’ on the employee’s ‘Federal Tax Data 1’ and ‘Federal Tax Data 2’ panels in SHARP for the effective-dated rows they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2007.
The KPAY320 will be processed the evening of December 20, 2006. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2007 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2007 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions and/or stop any advance EIC payments for paychecks with a 2007 pay date.
For any 2007 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 20, 2006 and January 1, 2007, agency personnel will need to enter the data with a January 2, 2007 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2007 for any electronic W-4s received in this time period. The 2007 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 20, 2006 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2007. The new tax data row will be dated January 1, 2007. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2007 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
Deduction Information
All deductions for calendar year 2007 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Long Term Care: monthly, deducted on the first pay date of the month.
- Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
- Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 26, 2006. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Any arrearage collections made by personal reimbursement that are collected after December 22, 2006, and prior to December 26, 2006, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2006 W-2.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2006 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 16, 2006 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has a mailing address on the SHARP Personal Data page, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Personal Data page by 6:00 pm on December 26, 2006 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 26, 2006 to update the Personal Data page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 22, 2006. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 27, 2006 and January 5, 2007. W-2 forms will be mailed on or before January 31, 2007. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2006 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 07-P-008, dated October 12, 2006. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
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Attachment: December 2006 Payroll Calendar
DATE: | December 6, 2006 | ||
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SUBJECT: | 2007 Percentage Method Tables for Federal Tax Withholding | ||
EFFECTIVE DATE: | January 1, 2007 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2007 |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2007. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2007. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,400 for 2007.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous years, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2006 to all SHARP employees who were exempt from federal withholding in 2006. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2007. The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications were sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notification to their employees. A list of agency employees receiving the notification was placed in the Agency Payroll Workflow Administrator’s work list.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2007 W-4s. As of this date, the IRS has not issued the 2007 Form W-4 - Employee’s Withholding Allowance Certificate. Once the W-4 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/SHARP/infolist.htm. Employees should submit their new W-4s by December 15, 2006 to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 20, 2006 to enter all paper W-4s into the system. It is important that agency personnel check the ‘New W-4 Received’ radio button on the employee’s ‘Federal Tax Data 1’ page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the ‘New W-4 Received’ radio button on electronic W-4s submitted by the employee for calendar year 2007.
The KPAY320 will process during the batch cycle generated on the evening of December 20, 2006. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2007 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’. (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2006 in which the ‘New W-5 Received’ radio button is not checked. The update will insert a January 1, 2007 effective dated row with an EIC Status of ‘Not Applicable’.)
For any Forms W-4s for 2007 (or Forms W-5s for 2007 for employees claiming the advance EIC) received between December 21, 2006 and January 1, 2007, agency personnel will need to enter the data with a January 2, 2007 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 5, 2007 in order to be reflected in the on-cycle paycheck dated January 12, 2007. Agency Workflow Administrators will also need to change the effective date to January 2, 2007 for any electronic FormsW-4s for 2007 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 2006 must file a new 8233 form for calendar year 2007 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 20, 2006 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has been submitted for calendar year 2007. The new tax data row will be dated January 1, 2007. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2007 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 20, 2006. The report will be available in the agency directory on the MVS on Thursday, December 21. A report will not be provided for the ‘Non-Resident Alien’ updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Tables for Percentage Method of Withholding (PDF)
DATE: | December 6, 2006 | ||
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SUBJECT: | New Advance Earned Income Credit Tables for 2007 | ||
EFFECTIVE DATE: | January 1, 2007 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2007 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2007. The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2007. In order to use the attached tables, income must be annualized. When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
The IRS has also released the 2007 Form W-5 – Earned Income Credit Advance Payment Certificate. The 2007 form can be obtained on the IRS website at http://www.irs.gov/pub/irs-pdf/fw5.pdf. The 2006 Form W-5 expires on December 31, 2006. The 2007 Form W-5 must be filed with the employer before advance 2007 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2007 earned and adjusted gross income will each be less than $33,241.00 for single employees or $35,241.00 if filing jointly (include spouse’s income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the advance EIC for 2007 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2007.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
An e-mail notification was sent on December 1, 2006 to all SHARP employees receiving advance EIC payments in 2006. The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2007. The notification was sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. The notification was sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notifications to their employees. A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.
Agency personnel have until 6:00 p.m. on December 20, 2006 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2007. It is important that agency personnel check the ‘New W-5 Received’ radio button on the employee’s ‘Federal Tax Data 2’ page for the new effective-dated row that is entered.
The KPAY320 will process in the batch cycle generated the evening of December 20, 2006. This process will search for employees who were sent a W-5 notification. If a new W-5 has not been received, a January 1, 2007 effective-dated row will be inserted in the employee’s Tax Data record with an EIC status of ‘Not Applicable’. (Please note the KPAY320 process will also update all employees claiming exemption from withholding tax in 2006, if a new W-4 has not been received. The update will place a January 1, 2007 effective-dated row in the employee’s tax record with a marital status of ‘single’ and zero exemptions.)
For any Forms W-5 for 2007 (or Forms W-4 for 2007 for employees claiming exemption from withholding) received between December 21, 2006 and January 1, 2007, agency personnel will need to enter the data with a January 2, 2007 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 5, 2007 in order to be reflected in the on-cycle paycheck dated January 12, 2007. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 20, 2006. The report will be available in the agency directory on the MVS on Thursday, December 21.
The Department of Administration will make all of the necessary changes in the computation of the advance EIC for SHARP agencies. Regent’s institutions are responsible for implementing the new advance EIC rates in their respective payroll systems.
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Attachment: Advance Earned Income Credit Formulas
DATE: | December 8, 2006 | ||
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SUBJECT: | Inactivation of Organization Dues Deductions for Kansas Chapter of International Association of Workforce Professionals (IAWP) | ||
EFFECTIVE DATE: | Payroll Period Ending December 30, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Organization Dues Closing for ORG980 |
Please be advised that the Kansas chapter of International Association of Workforce Professionals (IAWP) is closing effective January 1, 2007. Payroll deductions for this organization (ORG980) should be discontinued effective with the payroll period beginning December 17, 2006 and ending December 30, 2006, paid January 12, 2007. The paychecks issued December 29, 2006 are the last paychecks for which deductions will be made for deduction code ‘ORG980’. Agencies should enter a new-effective dated row of December 17, 2006 on the general deduction page for deduction code ‘ORG980’ which reflects a deduction end date of December 17, 2006 for all employees in their agency who have active enrollments with this organizational dues company.
Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 12, 2007.
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DATE: | December 28, 2006 | ||
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SUBJECT: | Increase in Parking Fees for City of Topeka Parking Garages | ||
EFFECTIVE DATE: | Payroll Period Beginning December 17, 2006 and Ending December 30, 2006, Paid January 12, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for City of Topeka Parking Garages |
Effective January 1, 2007, the City of Topeka is increasing its non-reserved parking rates for all City parking garages. This rate increase impacts State of Kansas agencies with contracts for parking in the Centre City Garage (9th and Kansas) and the 512 Jackson garage. The monthly parking rate for non-reserved spaces has increased from $59.50 a month to $61.50 a month. Employees who park in non-reserved spaces will see their parking deduction increase starting with the payroll period beginning December 17, 2006 and ending December 30, 2006, paid January 12, 2007.
Due to the increase, the parking deduction codes for APKA02 and PPKA02 (used by the Department on Aging at 512 Jackson) are increasing from $15.92 per bi-weekly pay period to $16.85 per bi-weekly pay period. The related parking administrative fee code, PKAD04, will also increase from $1.22 per bi-weekly pay period to $1.29 per bi-weekly pay period.
The following parking deduction codes used for the Centre City garage are also effected by this increase: APKA07 and PPKA07 (used by the Department of Agriculture), APKA08 and PPKA08 (used by the Ethics Commission), APKA09 and PPKA09 (used by the Conservation Commission), and APKA10 and PPKA10 (used by the Kansas Water Office). The deduction amount for these codes will increase from $27.46 per bi-weekly pay period to $28.38 per bi-weekly pay period. Parking administrative fee code PKAD11 will increase from $2.10 per bi-weekly pay period to $2.17 per bi-weekly pay period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | January 4, 2007 | ||
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SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2006 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.ks.gov |
Debbie Esquibel | (785) 368-6313 | Debbie.Esquibel@da.ks.gov | |
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2006 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2006 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 29, 2006.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2006 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2006 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will be used again for 2006. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. Most employees should continue to receive their W-2’s at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2006 W-2’s, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2007. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2006 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2’s for years 2002 through 2006, agencies are strongly encouraged to recommend that employees use the ‘W-2 Reissue Request’ functionality found in Employee Self Service at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. After logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2006, 2005, 2004, 2003, or 2002) the reissued W-2 is needed. Duplicate W-2’s for 2002 - 2005 are currently available, and duplicate W-2’s for 2006 will be available Monday, January 22, 2007.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2s for those employees who cannot access Employee Self Service. Requests for duplicate W-2’s received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2’s and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2006 W-2's for each printing. The requests should be in social security number order and should include each employee's name, employee ID, and correct mailing address in addition to the SSN. Requests for duplicate W-2's for years prior to 2006 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.ks.gov.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that both on-cycle and off-cycle paychecks dated December 29, 2006 are included in the 2006 W-2 amounts.
Attachments: 2006 W-2 Wage and Tax Statement Calculations (.pdf)
Sample KPAY318.SQR (.pdf)
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DATE: | January 4, 2007 | ||
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SUBJECT: | 2007 W-2 Production Report Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: | 2007 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2007 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2007 W-2 production reports are scheduled to be generated:
- Friday, February 9, 2007
- Friday, March 9, 2007
- Friday, April 6, 2007
- Friday, May 4, 2007
- Friday, June 1, 2007
- Friday, June 29, 2007
- Friday, July 27, 2007
- Friday, August 24, 2007
- Friday, September 21, 2007
- Friday, October 19, 2007
- Friday, November 2, 2007
- Friday, November 16, 2007
- Friday, November 30, 2007
- Wednesday, December 12, 2007
- Monday, December 17, 2007
- Monday, December 24, 2007
- Wednesday, December 26, 2007
- Friday, December 28, 2007 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2’s for 2007 are complete, a final KTXPR55 report will be generated for each agency’s information and review.
In addition, the Regent’s institutions will receive the report TAX900 in their agency mailbox on the MVS. The TAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent’s responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent’s institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
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DATE: | January 9, 2007 | ||
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SUBJECT: | Organization Dues Change for ORG133 | ||
EFFECTIVE DATE: | Payroll Period Ending January 27, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Change in Organization Dues Deduction for Public Service Employees Union Local 1132 |
The organization dues for members of the Public Service Employees Union, Local 1132, ORG133, will be increased from $12.50 to $14.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 14, 2007 and ending January 27, 2007, paid February 9, 2007.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after February 9, 2007.
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DATE: | January 9, 2007 | ||
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SUBJECT: | Organization Dues Change for ORG048 | ||
EFFECTIVE DATE: | Payroll Period Ending January 13, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Change in Organization Dues Deduction for Fort Hays State University-FOP #48 |
The organization dues for members of the Fort Hays State University FOP, ORG048, will be increased from $15.00 to $17.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning December 31, 2006 and ending January 13, 2007, paid January 26, 2007.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 26, 2007
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DATE: | January 24, 2007 | ||
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SUBJECT: | Recordkeeping Requirement for Charitable Contributions Made by Payroll Deduction | ||
EFFECTIVE DATE: | Taxable years beginning after August 17, 2006 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Recordkeeping Requirement for Charitable Contributions Made by Payroll Deduction |
Taxpayers claiming charitable contributions for cash, check, or other monetary gifts made in taxable years beginning after August 17, 2006, are subject to the recordkeeping requirements of Sec. 170(f)(17), as added by section 1217 of the Pension Protection Act of 2006, Public Law 109-280, 120 Stat. 780(2006)(PPA). IRS Notice 2006-110 provides guidance on how charitable contributions made by payroll deduction may meet the requirements of Sec. 170(f)(17) of the Internal Revenue Code.
Sec. 170(f)(17) of the Internal Revenue Code indicates that charitable contribution deductions of $250 or more withheld from each payment of wages must be substantiated in order to be a valid tax deduction effective for calendar year 2007. Substantiation requirements include a pay stub furnished by the employer that sets forth the amount withheld and a pledge card or other document prepared by the donee organization that includes a statement that the organization does not provide goods or services in whole or partial consideration for any contribution made to the organization by payroll deduction. Currently, any payroll deductions withheld by the State of Kansas for United Way or Community Health Charities (CHC) are printed on the paycheck stubs and included on the paycheck view in self service. United Way and CHC are responsible for the pledge cards or other documents with the proper information included. Employees with a payroll deduction of $250 or more per pay period should keep their pay stub or print their self service paycheck with the deduction amount, and retain a copy of the pledge card or other document provided by United Way or CHC to fulfill these requirements.
There are currently no United Way or CHC deductions in SHARP which are equal to or greater than $250 per period. However, agencies should advise employees of the record keeping requirements for charitable contributions in the event an employee’s deduction meets or exceeds $250 per period.
Regent’s institutions are responsible for ensuring that the requirements are met within their individuals systems.
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DATE: | February 2, 2007 | ||
---|---|---|---|
SUBJECT: | Addition of New Parking Codes for 10th & Quincy Lot - KSDE | ||
EFFECTIVE DATE: |
Payroll Period Beginning February 11, 2007 and Ending February 24, 2007, Paid March 9, 2007 |
||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Codes for 10th & Quincy Lot - KSDE |
Pursuant to an agreement entered into by the Kansas State Department of Education and the Department of Administration for parking in the lot at 10th and Quincy, parking deduction codes APKA14 and PPKA14 will be added to SHARP. Parking codes APKA14 (after-tax) and PPKA14 (pre-tax) will both result in an employee bi-weekly parking deduction of $4.62. Employees enrolled in parking deduction code PPKA14 will also need to be enrolled in parking administrative fee code PKAD10. Parking code PKAD10 will result in an employer bi-weekly contribution of $0.35. The new parking codes are effective with the pay period beginning February 11, 2007, ending February 24, 2007, and paid March 9, 2007.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | February 6, 2007 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | IRS Changes Luxury Vehicle Fair Market Value for Calendar Year 2007 |
The Internal Revenue Service (IRS) has changed the definition of a “luxury vehicle” beginning January 1, 2007. A “luxury vehicle” will be defined as one with a fair market value in excess of $15,100, increased from $15,000, for a passenger vehicle first made available for an employee’s personal use in 2007. This definition is used under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. See Informational Circular No. 05-P-023*. Using this methodology, fringe benefit income is calculated by multiplying the 48.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2007 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,100. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section. The reference should be: Kansas Administrative Regulation 1-17-2a(b)(1).
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DATE: | April 2, 2007 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Code ‘INC’ for Incentive Pay | ||
EFFECTIVE DATE: | March 25, 2007 | ||
CONTACT: | Earl Brynds | (785) 296-5376 | Earl.Brynds@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Code ‘INC’ |
The Governor’s Office has approved Hazmat Technician Incentive pay for those employees within the 190th Fire Department in the Kansas Adjutant General’s Department who obtain and maintain a Hazmat Technician certification. To administer the Hazmat Technician Incentive pay and all other applicable future statewide incentive pay scenarios, a new earnings code is established in the SHARP system effective March 25, 2007. The following new earnings code is set up to be used starting with the pay period beginning March 25, 2007 through April 7, 2007 paid April 20, 2007.
Earnings Code | Description | Short Description | Effective Date |
---|---|---|---|
INC | Incentive Earnings | Incntv Ern | 3/25/2007 |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents’ institutions are responsible for implementing the new earnings code in their payroll systems.
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DATE: | April 10, 2007 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2007 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | joyce.dickerson@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.
Note: Another informational circular regarding the fiscal year 2008 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 16, 2007 will use fiscal year 2007 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 16, 2007 will use fiscal year 2008 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the ‘current’ UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 pay period being adjusted. For example, the Run A off-cycle (processed June 25, paid June 29) for the pay period ending June 16, 2007 will be charged to fiscal year 2007 expenditures. The Run B off-cycle (processed June 27, paid July 2) for the pay period ending June 16, 2007 will be charged to fiscal year 2008 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run A off-cycle scheduled for June 25, 2007 (paid June 29) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2007 expenditures.
Once the Run A off-cycle for the period ending June 30, 2007 (processed July 9, paid July 13) has been processed, agencies should not request or process paycheck reversals until STARS FY 2007 closing has been successfully completed. STARS is scheduled to resume processing July 23, 2007.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 during the batch cycle the night of June 24, 2007 and should be completed by Monday morning, June 25. In that process, a new row will be added to the Department Budget tables with an effective date of June 17, 2007 (beginning date of the first on-cycle payroll charged to FY2008). The Budget End Date will be June 16, 2008. Agencies should not enter any rows with an effective date greater than or equal to June 17, 2007 until after the FY2008 insert has been completed. When adding new rows for FY2008, agencies should verify that June 16, 2008 was used as the Budget End Date for FY2008.
GHI Adjustments
As of July 1, 2007, NO payroll processing for GHI adjustments should be made for contract year 2005. Contact Judy Allman, Kansas Health Policy Authority, at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 2005.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2007. 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 (assuming processing occurs before midnight), the Run A off-cycle for the pay period ending June 16, 2007 (processed June 25, paid June 29) will have 360 as the Julian date in the document number and expenditures will be charged to fiscal year 2007. The Run B off-cycle for the pay period ending June 16, 2007 (processed June 27, paid July 2) will have 362 as the Julian date in the document number and expenditures will be charged to fiscal year 2008. The Run C off-cycle for the pay period ending June 16, 2007 (processed July 2, paid July 5) will have 002 as the Julian date in the document number and expenditures will be charged to fiscal year 2008.
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 2008.
Reminders
To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:
1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls 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 on-cycle paycheck for the period and will require special handling.
2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 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 ‘Nontaxable’.
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DATE: | April 10 , 2007 | ||
---|---|---|---|
SUBJECT: | Organization Dues Change for ORG059 | ||
EFFECTIVE DATE: | Payroll Period Ending April 21, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Change in Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59 |
The organization dues for members of the Kansas Game Wardens Fraternal Order of Police Lodge #59, ORG059, will be increased from $10.00 to $12.00 per biweekly payroll period.
The new rate will become effective with the payroll period beginning April 8, 2007 and ending April 21, 2007, paid May 4, 2007.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent’s institutions are responsible for ensuring this change
is reflected in their individual systems and is effective for paychecks issued on or after May 4, 2007.
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DATE: | May 1, 2007 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2007 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates for fiscal year 2008 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component. FY2008 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, July 2, 2007 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 30, 2007 (paychecks dated July 13, 2007).
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents’ are responsible for updating any rate changes into their payroll system.
Attachment
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Attachment: DA-171 (.pdf)
DATE: | May 16, 2007 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage – FY2008 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 17, 2007 and Ending June 30, 2007, Paid July 13, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | kathy.ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - Curtis Building Garage – FY2008 |
Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2008. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $23.39 per bi-weekly pay period effective with the payroll period beginning June 17, 2007 and ending June 30, 2007, paid July 13, 2007. The associated administrative fee code PKAD05 increases to $1.79 ($23.39 X .0765).
Employees with the Department of Commerce, the Board of Accountancy, and Board of Regents who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction increased to $11.69. The associated administrative fee code PKAD07 increases to $0.89 ($11.69 X .0765).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents’ institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | June 5, 2007 | ||
---|---|---|---|
SUBJECT: | Establish Organization Dues Deduction for Kansas Organization of State Employes (KOSE) | ||
EFFECTIVE DATE: | Payroll Period Ending June 16, 2007 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Establish Organization Dues for ORG500 |
The Kansas Organization of State Employees (KOSE) has met the requirements of K.S.A. 75-5501(3) (b) for employee membership dues deductions. Therefore, a new deduction code, ORG500, is being added in SHARP effective June 3, 2007 to accommodate payroll deduction of membership dues to this organization. The deduction for member dues will be $13.61 per biweekly payroll period effective with the payroll period beginning June 3, 2007 and ending June 16, 2007, paid June 29, 2007.
As a reminder, new KOSE members may need to drop/terminate any organization dues deductions currently set up with the Kansas Association of Public Employees (KAPE) and/or AFSCME.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this update in the SHARP system. Regent’s institutions are responsible for ensuring this update is reflected in their individual systems and is effective for paychecks issued on or after June 29, 2007.
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DATE: | June 18, 2007 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2008 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 17, 2007; Ending June 30, 2007; Paid July 13, 2007 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.ks.gov |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2008-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 2008. The fiscal year 2008 rates will become effective with the on-cycle payroll period beginning June 17, 2007, ending June 30, 2007 and paid July 13, 2007. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2007.
In FY2008, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). Agencies are reminded of the moratoriums for KPERS Death and Disability Insurance contribution that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. 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 the moratorium period.
Legislation passed in 2006 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 KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. 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 July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2008, employer rates are 6.99% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 10.99%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS life and disability insurance.
The Division of Accounts and Reports, 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 STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2008.
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Attachments A, B & C (.pdf)
DATE: | July 13, 2004 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | Payroll Period Ending September 11, 2004 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning August 29, 2004 and ending September 11, 2004, paid September 24, 2004 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.35 or Less | $ 588.00 or Less | $ 7.60 |
ORG002 | $ 7.36 - $ 8.51 | $ 588.80 - $ 680.80 | $ 8.10 |
ORG003 | $ 8.52 - $ 9.39 | $ 681.60 - $ 751.20 | $ 8.60 |
ORG004 | $ 9.40 - $ 10.35 | $ 752.00 - $ 828.00 | $ 9.10 |
ORG005 | $ 10.36 - $ 11.41 | $ 828.80 - $ 912.80 | $ 9.60 |
ORG006 | $ 11.42 or Greater | $ 913.60 - or Greater | $10.10 |
ORG888 | KU Medical Center - Nurses | $10.10 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $ 8.30 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 24, 2004.
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DATE: |
August 4, 2004 |
---|---|
SUBJECT: |
Addition of Earnings Code 'SK4' |
EFFECTIVE DATE: |
July 18, 2004 |
CONTACT |
Kathy Ogle (785) 296-2290 |
APPROVAL | |
SUMMARY |
Addition of Earnings Code 'SK4' |
The Memorandum of Agreement for Graphic Communications Union No. 49C, AFL-CIO establishes a new premium pay of $.55 per hour for eligible employees. This premium is only available for use by the Department of Administration-Division of Printing. The new earnings code will be effective for the payroll period beginning July 18, 2004; ending July 31, 2004; paid August 13, 2004, will add to gross earnings and will be displayed as follows:
Earns Code | Description | Rate |
---|---|---|
SK4 | Skill Differential 4-Press Rm | $.55 |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system.
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DATE: | August 12, 2004 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 | ||
EFFECTIVE DATE: | Payroll Period Ending August 28, 2004 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code 'ORG030', will change from $23.30 to $24.05 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 15, 2004 and ending August 28, 2004, paid September 10, 2004.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 10, 2004.
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DATE: | September 3, 2004 | ||
---|---|---|---|
SUBJECT: | New Parking Rates for Wichita State Office Building Garage and Surface Lot | ||
EFFECTIVE DATE: | Payroll Period Beginning September 12, 2004 and Ending September 25, 2004, Paid October 8, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Parking Rates for Wichita State Office Building Garage and Surface Lot |
Due to a change in contract costs, parking rates will increase for the Wichita State Office Building garage and surface lot. Effective with the payroll period beginning September 12, 2004 and ending September 25, 2004, paid October 8, 2004, parking deduction codes PKW01C and PPKW01 will be $11.54 per bi-weekly pay period. Parking deduction codes PKW02A and PPKW02 will be $6.92 per bi-weekly pay period, and parking administrative fee codes PKAD02 and PKAD03 will be $.88 and $.53 respectively, per bi-weekly pay period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change. Regents' institutions are responsible for updating the rates in their individual systems.
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DATE: | September 17, 2004 | ||
---|---|---|---|
SUBJECT: | Addition of New Parking Codes for KPERS Building Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning September 12, 2004, Ending September 25, 2004, and Paid October 8, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Parking Codes for KPERS Building Garage |
Pursuant to the lease agreement executed by the Kansas Housing Resource Corporation for parking spaces in the KPERS Building Garage, parking deduction codes APKA12, PPKA12, and PKAD14 are being added to SHARP. Parking codes APKA12 (after tax) and PPKA12 (pre-tax) will both result in an employee bi-weekly parking deduction of $10.38. Employees enrolled in parking deduction code, PPKA12, will also need to be enrolled in parking administrative fee code PKAD14. Parking code PKAD14 will result in an employer bi-weekly contribution of $.79. These parking codes are effective with the pay period beginning September 12, 2004, ending September 25, 2004, and paid October 8, 2004.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | September 24, 2004 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | Abby.Moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Payroll Services has been notified that the Equitable Life Assurance Society of the Untied States (VTSA Company 186) has changed its name to the AXA Equitable Life Insurance Company. To facilitate the name change, the Savings Investment Table in SHARP was updated. In addition, the STARS Vendor Table was updated with the new company name for vendor numbers 135570651 00 through 135570651 02.
The Division of Accounts and Reports, Payroll Systems Team has made the name update to the SHARP payroll system. Regents' institutions are responsible for updating this change in their individual systems.
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DATE: | October 18, 2004 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for 2005 | ||
EFFECTIVE DATE: | Calendar Year 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2005 |
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2005. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll.
Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Attachment: SHARP Bi-Weekly Payroll Schedule for Calendar Year 2005 (.pdf)
DATE: | October 27, 2004 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $90,000 effective January 1, 2005 |
The Social Security wage base for OASDI will be $90,000 for calendar year 2005. This is a $2,100 increase from the 2004 wage base of $87,900. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2005 will be $5,580.00. There continues to be no limit on wages subject to the Medicare tax in 2005. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,580.00 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:rdb
DATE: | October 27, 2004 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2004 | ||
EFFECTIVE DATE: | November 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2004 holidays. |
Thursday, November 11, 2004 (Veterans' Day), Thursday, November 25, 2004 and Friday, November 26, 2004 (Thanksgiving Holiday) are designated holidays for state service in 2004. Due to the holidays in November, variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, November 5, 2004
Payday for the payroll period ending October 23, 2004.
Time and leave interface agencies must have time and leave files for the period ending November 6, 2004 submitted to the Department of Administration for processing by 5:00 PM on November 5, 2004 (these files would normally be due Monday, November 8, 2004).
Regents' Run C off-cycle payroll files for the period ending October 23, 2004 must be received by the Department of Administration by 5:00 PM on November 5, 2004.
Monday, November 8, 2004
Paysheets for the on-cycle payroll for the period ending November 6, 2004 will be created on Monday, November 8, 2004. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 8, 2004 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 6, 2004 will also occur November 8, 2004; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM.
The Run C off-cycle for the period ending October 23, 2004 will be processed November 8, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 12, 2004.
Tuesday, November 9, 2004
The second on-cycle preliminary pay calculation for the period ending November 6, 2004 will occur November 9, 2004.
Wednesday, November 10, 2004
The third on-cycle preliminary pay calculation for the period ending November 6, 2004 will occur November 10, 2004.
Thursday, November 11, 2004
(Veterans' Day Holiday)
Friday, November 12, 2004
Regents' on-cycle payroll files for the period ending November 6, 2004 are due to the Department of Administration by 6:00 AM on November 12, 2004.
Final pay confirmation for the on-cycle payroll for the period ending November 6, 2004 will occur November 12, 2004. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 12, 2004 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 12, 2004 in order to be reflected in the final paycheck created for the employee.
Regents' Run A off-cycle payroll files for the period ending November 6, 2004 must be received by the Department of Administration by 5:00 PM on November 12, 2004.
Monday, November 15, 2004
The Run A off-cycle for the period ending November 6, 2004 will be processed November 15, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 19, 2004.
Tuesday, November 16, 2004
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 6, 2004 will be posted to STARS during Tuesday night's STARS batch processing cycle.
Regents' Run B off-cycle payroll files for the period ending November 6, 2004 must be received by the Department of Administration by 5:00 PM on November 16, 2004 in order to be processed on Wednesday, November 17, 2004.
Wednesday, November 17, 2004
The Run B off-cycle for the period ending November 6, 2004 will be processed November 17, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 22, 2004.
Friday, November 19, 2004
Payday for the payroll period ending November 6, 2004.
Time and leave interface agencies must have time and leave files for the period ending November 20, 2004 submitted to the Department of Administration for processing by 5:00 PM on November 19, 2004 (these files would normally be due Monday, November 22, 2004).
Regents' Run C off-cycle payroll files for the period ending November 6, 2004 must be received by the Department of Administration by 5:00 PM on November 19, 2004.
Monday, November 22, 2004
Paysheets for the on-cycle payroll for the period ending November 22, 2004 will be created on Monday, November 22, 2004. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 22, 2004 in order to be reflected on the paysheets for this period.
The Run C off-cycle for the period ending November 6, 2004 will be processed November 22, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 29, 2004.
The first on-cycle preliminary pay calculation for the period ending November 20, 2004 will also occur November 22, 2004; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 20, 2004.
Tuesday, November 23, 2004
The second on-cycle preliminary pay calculation for the period ending November 20, 2004 will occur November 23, 2004.
Wednesday, November 24, 2004
Final pay confirmation for the on-cycle payroll for the period ending November 20, 2004 will occur November 24, 2004 (Final pay confirmation would normally occur Friday, November 26, 2004). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 24, 2004 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 24, 2004 in order to be reflected in the final paycheck created for the employee.
Regents' on-cycle payroll files for the period ending November 20, 2004 are due to the Department of Administration by 6:00 AM on November 24, 2004.
Regents' Run A off-cycle payroll files for the period ending November 20, 2004 must be received by the Department of Administration by 5:00 PM on November 24, 2004.
Attached is a calendar for the month of November 2004, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
DB:JJM:rdb
Attachment: November calendar
DATE: | November 16, 2004 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2005 | ||
EFFECTIVE DATE: | January 1, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
Sunni Zentner | (785) 296-7058 | sunni.zentner@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | 2005 Deferred Compensation and Tax Sheltered Annuity Limits |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will increase effective January 1, 2005 as follows:
457(b) Deferred Compensation:
The Deferred Compensation annual contribution limit increases from the lessor of
$13,000 or 100% of includible compensation (2004 calendar year limit) to the lessor of $14,000 or 100% of includible compensation (2005 calendar year limit).
The Deferred Compensation special catch-up limit increases from $26,000 (2004 calendar year limit) to $28,000 (2005 calendar year limit). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $4,000 (for 2005) to a total of $18,000.
Please note, the two different catch-up provisions cannot be used concurrently.
403(b) Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2005 is the lesser of $42,000 or 100% of compensation.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $205,000 (for 2004) to $210,000 (for 2005). The $210,000 dollar applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees who participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $21,000 ($210,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $29,400 ($210,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).
For employees participating in the Kansas Board of Regents' mandatory plan prior to 1996, participants are 'grandfathered' and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $305,000 (for 2004) to $310,000 (for 2005). However, participants should note their maximum annual compensation limit will be $300,000, since the $300,000 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $42,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $13,000 (for 2004) to $14,000 (for 2005). In addition, the age 50 or older catch-up provision is increased from $3,000 (for 2004) to $4,000 (for 2005). Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on annual contribution by $4,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($14,000 for 2005) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents' institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents' institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
DB:JJM:rdb
DATE: | November 17, 2004 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Companies’ Merger and Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Companies’ Merger and Name Change |
Payroll Services has been notified that Aid Association for Lutherans (VTSA Company #064) and Lutheran Brotherhood (VTSA Company # 422) have merged. The new entity’s name and address is as follows:
Thrivent Financial for Lutherans
P.O. Box 8072
Appleton, WI 54912-9719
The Savings Plan Table in SHARP will continue to list both VTSA Company numbers, and both VTSA Company numbers will be updated with the company’s new name. In addition, the vendor table in STARS has been updated to reflect the new name and address. Remittances for both Company #064 and Company #422 should be sent to the above address effective immediately.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring this change is reflected in their individual systems.
DB:JJM:rdb
DATE: | November 19, 2004 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned or Leased Vehicles | ||
EFFECTIVE DATE: | January 1, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2005 |
The Internal Revenue Service (IRS) has increased the mileage rate from 37.5 cents (for 2004) to 40.5 cents (for 2005) under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The new rate becomes effective January 1, 2005. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 40.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2005 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $14,800. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State’s privately owned vehicle mileage reimbursement rate.
DB:JJM:rdb
DATE: | November 30, 2004 | ||
---|---|---|---|
SUBJECT: | December 2004 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | December 2004 Payroll Processing |
As 2004 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2004 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2004 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2005 balances; a corrected W-2 (Form W-2C) for 2004 will not be issued for the employee involved.
FINAL 2004 PAYCHECK
The final on-cycle paychecks for calendar year 2004 will be issued December 30, 2004. Paychecks will be mailed on December 29, 2004. The final off-cycle paychecks for calendar year 2004 will also be issued on December 30, 2004 (generated from the off-cycle processed on December 27, 2004).
PAYCHECK REVERSALS
Any 2004 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 27, 2004 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 27, 2004 will update calendar year 2005 balances and will not be reflected in the employee's 2004 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 27, 2004 to enter paycheck adjustment requests for any 2004 paychecks. Adjustments processed in the December 27, 2004 off-cycle payroll will be reflected on the employee's 2004 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2004 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Friday, December 17, 2004.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 17, 2004 for inclusion in the December 27, 2004 off-cycle. However, if a large volume of DA-180 forms is received on the December 17, 2004 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2004 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 27, 2004 which are adjusting paychecks issued prior to January 1, 2005 will not result in a W-2C; the adjustment will update the employee's 2005 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2004 will update the employee's 2005 payroll balances.
REGENTS' INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 18, 2004, paid December 30, 2004 are due to the Department of Administration by 6:00 a.m. on December 22, 2004.
REGENTS' INSTITUTIONS: OFF-CYCLE FILES
2004 Paycheck Reversals
Regent Institutions must submit all transmittals for 2004 paycheck reversals by 5:00 p.m. on Thursday, December 23, 2004 in order to update the employee's 2004 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2005 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2005 submitted after 5:00 pm on December 23, 2004 should default the pay adjust check date to January 1, 2005.
2004 Adjustments and Supplementals
In order to update employee balances for 2004, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Thursday, December 23, 2004. The Run A off-cycle for the pay period ending December 18, 2004 generated on the night of Monday, December 27, 2004 will have a check issue date of December 30, 2004; all activity for this off-cycle will be reflected in the employees' 2004 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2004 date.
2005 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2005, any adjustments or supplementals submitted after 5:00 p.m. on Thursday, December 23, 2004, will be considered to be 2005 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2005 business, the employee's 2005 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2005 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2005, agencies should default the pay adjust check date to January 1, 2005).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2005, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2005 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2005 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years andlimited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of 'P', will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2004 deadline for the December 27, 2004 Run A's off-cycle payroll will not be processed until the January 24, 2005 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 18, 2005. The deadline for submitting payroll interface files for the January 24, 2005 off-cycle is 5:00 p.m. on Friday, January 21, 2005.
GENERAL REMINDERS
United Way
The deduction END date on the general deduction panel for 2004 United Way contributions should be dated between December 5, 2004 and December 18, 2004 in order for the last 2004 deduction to be taken on the paycheck issued December 17, 2004 (for employees wanting to contribute for twenty-six paychecks). A deduction END date between December 19, 2004 and January 1, 2005 should be entered for those employees wanting the last United Way deduction to be taken on the December 30, 2004 paycheck (for employees wanting to contribute for the twenty-seven paychecks). Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2005, agencies can enter a new row effective-dated between December 19, 2004 and January 1, 2005 in order for the first deduction for 2005 to be taken on the January 14, 2005 paycheck.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2004 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced EIC payments. Notifications will be sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at: https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications will be sent to the agency email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2005 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 17, 2004 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 20, 2004 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons 'New W-4 Received' and/or 'New W-5 Received' on the employee's 'Federal Tax Data 1' and 'Federal Tax Data 2' panels in SHARP for the effective-dated rows they enter. Agency Workflow Administrators also need to check the radio button 'New W-4 Received' on the electronic W-4s submitted by the employee for calendar year 2005.
The KPAY320 will be processed the evening of December 20, 2004. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2005 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2005 effective-dated row will update the employee's marital status to 'single' with zero exemptions and/or stop any advance EIC payments for paychecks with a 2005 pay date.
For any 2005 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 20, 2004 and January 1, 2005, agency personnel will need to enter the data with a January 2, 2005 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2005 for any electronic W-4s received in this time period.
The 2005 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 20, 2004 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2005. The new tax data row will be dated January 1, 2005. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2005 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
Deduction Information
All deductions for calendar year 2005 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Long Term Care: monthly, deducted on the first pay date of the month.
- Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 2004. Please refer to the most recent PAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
NOTE: Any arrearage collections made by personal reimbursement that are collected after December 23, 2004, and prior to December 27, 2004, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2004 W-2.
Agencies are reminded that advance ('ADV') earnings are being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 2004 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 18, 2004 by personal reimbursement as soon as possible.
W-2s
Please note that if an employee has a mailing address on the SHARP Personal Data page, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee's Personal Data page by 6:00 pm on December 29, 2004 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 29, 2004 to update the Personal Data page, it is strongly recommended that these changes be made as soon as they are known. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2004. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees' address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs will be executed anytime between December 29, 2003 and January 7, 2005.
W-2 forms will be mailed on or before January 31, 2005. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2004 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 05-P-007, dated October 18, 2004. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm.
Attachment: December Calendar
DB:JJM:rdb
DATE: | December 10, 2004 | ||
---|---|---|---|
SUBJECT: | 2005 Percentage Method Tables for Federal Tax Withholding | ||
EFFECTIVE DATE: | January 1, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2005. |
The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2005. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2005. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,200 for 2005.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous years, and 2) the employee anticipates no income tax liability in the upcoming year.
An e-mail notification was sent on December 1, 2004 to all SHARP employees who were exempt from federal withholding in 2004. The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2005. The notification was sent to the employee's e-mail address listed under 'Update My Profile' in the Employee Self Service Center at https://SHARP.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications were sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notification to their employees. A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2005 W-4s. As of this date, the IRS has not issued the 2005 Form W-4 - Employee's Withholding Allowance Certificate. Once the W-4 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm.
Employees should submit their new W-4s by December 17, 2004 to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 20, 2004 to enter all paper W-4s into the system. It is important that agency personnel check the 'New W-4 Received' radio button on the employee's 'Federal Tax Data 1' page in SHARP for the effective-dated row that is entered. Agency Workflow Administrators also need to check the 'New W-4 Received' radio button on electronic W-4s submitted by the employee for calendar year 2005.
The KPAY320 will process in the batch cycle generated the evening of December 20, 2004. This process will search for employees for whom a W-4 notification was sent. If a new W-4 has not been received, a January 1, 2005 effective-dated row will be placed in the employee Tax Data record, and will update the employee's marital status to 'single' and exemptions to 'zero'. (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2004 in which the 'New W-5 Received' radio button is not checked. The update will insert a January 1, 2005 effective dated row with an EIC Status of 'Not Applicable'.)
For any Forms W-4s for 2005 (or Forms W-5s for 2005 for employees claiming the advanced EIC) received between December 21, 2004 and January 1, 2005, agency personnel will need to enter the data with a January 2, 2005 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 7, 2005 in order to be reflected in the on-cycle paycheck dated January 14, 2005. Agency Workflow Administrators will also need to change the effective date to January 2, 2005 for any electronic Forms W-4s for 2005 received in this time period. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 2004 must file a new 8233 form for calendar year 2005 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The KPAY320 processed on December 20, 2004 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2005. The new tax data row will be dated January 1, 2005. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2005 has been submitted.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 20, 2004. The report will be available in the agency directory on the MVS on Tuesday, December 21. A report will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Tables for Percentage Method of Withholding
DATE: | December 10, 2004 | ||
---|---|---|---|
SUBJECT: | New Advance Earned Income Credit Tables for 2005 | ||
EFFECTIVE DATE: | January 1, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2005 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2005. The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2005. In order to use the attached tables, income must be annualized. When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.
As of this date, the IRS has not released the 2005 Form W-5 - Earned Income Credit Advance Payment Certificate. Once the 2005 W-5 becomes available, notification will be sent to subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have no yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm.
The 2004 Form W-5 expires on December 31, 2004. The 2005 Form W-5 must be filed with the employer before advance 2005 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2005 earned and adjusted gross income will each be less than $31,030.00 for single employees or $33,030.00 if filing jointly (include spouse's income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating foreign earned income). Finally, a nonresident alien may not claim the advance EIC for 2005 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2005.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
An e-mail notification was sent on December 1, 2004 to all SHARP employees receiving advance EIC payments in 2004. The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2005. The notification was sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at https://SHARP.state.ks.us/servlets/iclientservlet/ess/?cmd=login. The notification was sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notifications to their employees. A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.
Agency personnel have until 6:00 p.m. on December 20, 2004 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2005. It is important that agency personnel check the 'New W-5 Received' radio button on the employee's 'Federal Tax Data 2' page for the new effective-dated row that is entered.
The KPAY320 will process in the batch cycle generated the evening of December 20, 2004. This process will search for employees who were sent a W-5 notification. If a new W-5 has not been received, a January 1, 2005 effective-dated row will be inserted in the employee's Tax Data record with an EIC status of 'Not Applicable'. (Please note the KPAY320 process will also update all employees claiming exemption from withholding tax in 2004, if a new W-4 has not been received. The update will place a January 1, 2005 effective-dated row in the employee's tax record with a marital status of 'single' and zero exemptions.)
For any Forms W-5 for 2005 (or Forms W-4 for 2004 for employees claiming exemption from withholding) received between December 21, 2004 and January 1, 2005, agency personnel will need to enter the data with a January 2, 2005 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 7, 2005 in order to be reflected in the on-cycle paycheck dated January 14, 2005. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 20, 2004. The report will be available in the agency directory on the MVS on Tuesday, December 21.
The Department of Administration will make all of the necessary changes in the computation of the advance EIC for SHARP agencies. Regent's institutions are responsible for implementing the new advance EIC rates in their respective payroll systems.
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Attachment: Advance Earned Income Credit Formulas
DATE: | December 15, 2004 | ||
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SUBJECT: | Addition of Earnings Code 'GLD' | ||
EFFECTIVE DATE: | December 19, 2004 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Code 'GLD' |
The Sidebar Agreement for the Implementation and Compensation of the Bindery Group Leader Differential of the Graphic Communications Union No. 49C, AFL-CIO establishes a new premium pay of $1.00 per hour for eligible employees. The premium is only available for use by the Department of Administration-Division of Printing and is to be used to supplement the pay received by a Bookbinder Senior for the performance of lead worker duties in the Binder unit. Earnings Code 'GLD' has been added in SHARP to record the payment of the new group leader differential pay. The new earnings code will be effective for the payroll period beginning December 19, 2004 and ending January 1, 2005, paid January 14, 2005. GLD earnings will add to gross pay and will be displayed as follows:
Earns Code | Description | Rate |
---|---|---|
GLD | Group Ldr Differential-Bindery | $1.00 |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents' institutions are responsible for implementing the new earnings codes in their payroll systems.
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DATE: | December 15, 2004 | ||
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SUBJECT: | Increase in Parking Fees for City of Topeka Parking Garages | ||
EFFECTIVE DATE: | Payroll Period Beginning December 5, 2004 and Ending December 18, 2004 Paid December 30, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for City of Topeka Parking Garages |
Effective January 1, 2005, the City of Topeka is increasing its parking rates for all City parking garages. This rate increase will impact State of Kansas employees parking in the City's 512 Jackson garage and Centre City garage (9th and Kansas). The monthly parking rate for both facilities is increasing from $55.00 a month to $57.00 a month. The increases are effective with the payroll period beginning December 5, 2004 and ending December 18, 2004, paid December 30, 2004.
Due to the increase, the parking deduction for codes APKA02 and PPKA02 (used by the Department on Aging at 512 Jackson) is increasing from $13.85 per bi-weekly pay period to $14.77 per bi-weekly pay period. The related parking administrative fee code, PKAD04, will also increase from $1.06 per bi-weekly pay period to $1.13 per bi-weekly pay period.
The following parking deductions codes used for the Centre City garage will also increase: APKA07 and PPKA07 (used by the Department of Agriculture), APKA08 and PPKA08 (used by the Ethics Commission), APKA09 and PPKA09 (used by the Conservation Commission), and APKA10 and PPKA10 (used by the Kansas Water Office). The deduction for these codes is increasing from $25.38 per bi-weekly pay period to $26.31 per bi-weekly pay period. Parking administrative fee code PKAD11 is increasing from $1.94 per bi-weekly pay period to $2.01 per bi-weekly pay period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | January 6, 2005 | ||
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SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2004 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
Debbie Esquibel | (785) 368-6313 | Debbie.Esquibel@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2004 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2004 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2004.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2004 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2004 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will once again be used for 2004. The standard W-2 conforms to our SHARP software, and aids in reducing programming costs for updating and maintaining custom programs in SHARP. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. Most employees should continue to receive their W-2's at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2004 W-2's, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 18, 2005. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2004 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2's for years 2002 through 2004, agencies are strongly encouraged to recommend that employees use the 'W-2 Reissue Request' functionality found in Employee Self Service at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. After logging into the system and selecting 'W-2 Reissue Request', the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2004, 2003, or 2002) the reissued W-2 is needed. Duplicate W-2's for 2002 and 2003 are currently available, with duplicate W-2's for 2004 becoming available Monday, January 24, 2005.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2s for those employees who cannot access Employee Self Service. Requests for duplicate W-2's received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2's and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2004 W-2's for each printing. The requests should be in social security number order and should include each employee's name, employee ID, and correct mailing address in addition to the SSN. Requests for duplicate W-2's for years prior to 2004 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.state.ks.us.
The W-2 form used prior to 2002 provided the employee a summary, which showed calculations for federal, state, social security, and Medicare grosses. This summary is no longer available using the standard functionality provided by our software. Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. In addition, on-line agencies may also consider utilizing the SHARP KPAY318, "Year to Date Balances' report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that both on-cycle and off-cycle paychecks dated December 30, 2004 are included in the 2004 W-2 amounts.
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Attachments: 2004 W-2 Wage and Tax Statement Calculations (.pdf)
Sample KPAY318.SQR (.pdf)
DATE: | January 6, 2005 | ||
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SUBJECT: | 2005 W-2 Production Report Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | 2005 W-2 Production Report Schedule |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2005 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2005 W-2 production reports are scheduled to be generated:
- Friday, February 11, 2005
- Friday, March 11, 2005
- Friday, April 8, 2005
- Friday, May 6, 2005
- Friday, June 3, 2005
- Friday, July 1, 2005
- Friday, July 29, 2005
- Friday, August 26, 2005
- Friday, September 23, 2005
- Friday, October 21, 2005
- Friday, November 4, 2005
- Friday, November 18, 2005
- Friday, December 2, 2005
- Wednesday, December 14, 2005
- Monday, December 19, 2005
- Tuesday, December 27, 2005
- Thursday, December 29, 2005 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2's for 2005 are complete, a final KTXPR55 report will be generated for each agency's information and review.
In addition, the Regent's institutions will receive the report KTAX900 in their agency mailbox on the MVS. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
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DATE: | January 6, 2005 | ||
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SUBJECT: | Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2 | ||
EFFECTIVE DATE: | Payroll Period Ending January 15, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organizational Dues Change for ORG060 |
The organization dues for members of the Fraternal Order of Police, Lawrence Lodge #2, deduction code 'ORG060', will change from $10.00 to $11.54 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 2, 2005 and ending January 15, 2005, paid January 28, 2005.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 28, 2005.
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DATE: | January 11, 2005 | ||
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SUBJECT: | Establish Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59 | ||
EFFECTIVE DATE: | Payroll Period Ending January 15, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Establish Organizational Dues for ORG059 |
The Kansas Game Wardens Fraternal Order of Police Lodge #59 has met the requirements of K.S.A. 75-5501(3)(b) for employee membership dues deductions. Therefore, a new deduction code, ORG059, is being added in SHARP to accommodate payroll deduction of membership dues to this organization. The deduction for member dues will be $10.00 per biweekly payroll period effective with the payroll period beginning January 2, 2005 and ending January 15, 2005, paid January 28, 2005.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this update in the SHARP system. Regent's institutions are responsible for ensuring this update is reflected in their individual systems and is effective for paychecks issued on or after January 28, 2005.
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DATE: | January 26, 2005 | ||
---|---|---|---|
SUBJECT: | Addition of New Parking Codes for Townsite Plaza Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning January 16, 2005, Ending January 29, 2005, and Paid February 11, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Codes for Townsite Plaza Garage |
Pursuant to the lease agreement executed by the Kansas Real Estate Commission for parking spaces in the Townsite Plaza Garage, parking deduction codes APKA13 and PPKA13 are being added to SHARP. Parking codes APKA13 (after tax) and PPKA13 (pre-tax) will both result in an employee bi-weekly parking deduction of $9.23. Employees enrolled in parking deduction code, PPKA13, will also need to be enrolled in parking administrative fee code PKAD06. Parking code PKAD06 will result in an employer bi-weekly contribution of $.71. These parking codes are effective with the pay period beginning January 16, 2005, ending January 29, 2005, and paid February 11, 2005.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | February 16, 2005 | ||
---|---|---|---|
SUBJECT: | Employee Taxability for the Personal (Commuting) Use of a State-Owned or Leased Vehicle | ||
EFFECTIVE DATE: | January 1, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Information Concerning Employee Use of a State-Owned or Leased Vehicle |
The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated, Kansas Administrative Regulations, and Executive Order 03-04.
BACKGROUND
In general, an employee's personal (commuting) use of a state-owned or leased vehicle is a taxable fringe benefit. Commuting is defined as travel back and forth between the employee's residence and official workstation. Employers who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.
POLICY
K.S.A. 8-301 states that all publicly owned vehicles are for official business only and may not be used for private use, private business, or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:
(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.
(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.
(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to an employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
Please note, Executive Order 03-04, which became effective on April 1, 2003 directs the Secretary of Administration to amend the applicable Kansas Administrative Regulation governing commuting in a state-owned or leased vehicle to further restrict such travel. Effective April 1, 2003 and continuing until amendment of the Kansas Administrative Regulation governing commuting, the head of each executive branch state agency under the jurisdiction of the Governor shall prohibit commuting in state-owned or leased vehicles by employees of that agency except under the circumstances listed below:
- The vehicle is marked as a law enforcement vehicle and is used by an employee certified as law enforcement officer under the provisions of K.S.A. 74-5601 et seq.
- The vehicle is used to commute by an employee who is determined by the Secretary of Administration to be required to respond to reoccurring public safety emergencies under specified circumstances that make commuting in a state vehicle cost effective.
- The vehicle is assigned to the employee on a trip basis only and driving the vehicle to the employee's residence will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
- The vehicle is assigned for use in the state vanpool program under K.S.A. 75-46a02 et seq.
- The vehicle is used to transport the Governor or other elected official when the Superintendent of the Highway Patrol determines using the state vehicle is a necessary security measure.
Kansas Administrative Regulation 1-17-2(b)(1) and the Administrative Guidelines For Commuting Under Executive Order 03-04 allow field employees, such as inspectors, to commute between the field employee's residence and work sites in a state-owned or leased vehicle when the employee's residence is designated as the official work station. The employee's residence can be designated as the official workstation when over 50% of the employee's work time involves direct travel from his or her residence.
Please note that meeting the Kansas Administration Regulation or Executive Order 03-04 requirements to commute with the state-owned or leased vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of the vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle (listed in Appendix D) or the employee's residence meets the IRS's 'principal place of business' test discussed below.
PRINCIPAL PLACE OF BUSINESS TEST
Field employees generally do not report fringe benefit income for official travel between the employee's residence and work sites. To be excluded from the IRS's fringe benefit income reporting requirements, the employee's residence must qualify as the employee's 'principal place of business'. A principal place of business is defined as a place of business which is used by the taxpayer for the administrative or management activities of a trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business. If the employee works both out of his or her home (because it has been designated as the official work station) and has a state provided office, the employee's principal place of business needs to be determined by examining all the facts and circumstances.
AGENCY RESPONSIBILITY
Agencies shall identify and notify those employees who use state-owned or leased vehicles and who park those vehicles overnight at their residences (commuting) that the commuting use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS discussed in Appendix A unless the vehicle is listed in Appendix D or the employee's residence meets the 'principal place of business test'.
Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include, at a minimum, the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).
Agencies shall provide the payroll system with reports and data to:
- Record fringe benefit income chargeable to each affected employee.
- Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
- Calculate and withhold from each affected employee's pay the federal and state income tax due.
- Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
- Remit all withheld taxes and contributions to the appropriate authorities.
- Report on each affected employee's W-2, the total fringe benefit income for the calendar year.
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Attachments:
Appendix A - IRS APPROVED METHODS OF REPORTING FRINGE BENEFIT INCOME
Appendix B - STATEMENT OF PERSONAL USAGE FOR STATE PROVIDED VEHICLES (pdf)
Appendix C - DAILY TRAVEL LOG (pdf)
Appendix D - VEHICLES EXCLUDED FROM FRINGE BENEFIT INCOME REPORTING REQUIREMENTS
DATE: | February 23, 2005 | ||
---|---|---|---|
SUBJECT: | Increase in Parking Fees for Reserved Parking in Centre City Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning February 13, 2005 and Ending February 26, 2005 Paid March 11, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for Reserved Parking in Centre City Garage |
Effective January 1, 2005, MBI, Inc. has increased its parking rates for all spaces leased from the City of Topeka. This rate increase impacts State of Kansas agencies with contracts for parking in the City Centre Garage. Payroll Services increased the parking fees for non-reserved spaces in December 2004. Unfortunately, Payroll Services was not informed until recently of MBI's increase to reserved parking spaces. The monthly parking rate for reserved spaces has increased from $66.00 a month to $68.00 a month. All employees who park in reserved spaces in the Centre City Garage under an agency agreement with MBI will see their parking deduction increase starting with the payroll period beginning February 13, 2005 and ending February 26, 2005, paid March 11, 2005.
The following parking deduction codes are effected by this increase: APKA57 and PPKA57 (used by the Department of Agriculture), APKA58 and PPKA58 (used by the Ethics Commission), APKA59 and PPKA59 (used by the Conservation Commission), APKA60 and PPKA60 (used by the Kansas Water Office), and APKA61 and PPKA61 (used by the Board of Technical Professions). The deduction amount for these codes will increase from $30.46 per bi-weekly pay period to $31.38 per bi-weekly pay period. Parking administrative fee code PKAD50 will increase from $2.33 per bi-weekly pay period to $2.40 per bi-weekly pay period.
The above noted deduction code changes have been entered in SHARP with a December 18, 2004 effective-dated row. Since notification of the parking rate increase was not received in time to implement the change effective with the December 30, 2004 paychecks, agencies have the following 3 options for collecting the amount due to MBI:
- Process paycheck adjustments for each effected employee for each of the five payroll periods in which parking was under withheld (payroll period ending December 18, 2004; period ending January 1, 2005; period ending January 15; period ending January 29; and period ending February 12).
- Collect the difference due directly from the employee and remit the amount owed to MBI. If the adjustment is not processed in SHARP, any adjustment for any other reason would also pick up the parking increase and could potentially create a refund situation.
- Pay the amount owed to MBI from agency funds.
If using Option 1 to collect the amount owed, it is important for agencies to remember that only one paycheck adjustment per employee can be processed in any given SHARP off-cycle payroll. Furthermore, agencies will not be able to utilize Option 1 in the event a paycheck requiring adjustment has previously been adjusted for another reason. In these instances, agencies should select from Option 2 or 3 or submit a DA-180 to Payroll Services for processing. Questions related to processing adjustments in SHARP should be directed to Joyce Dickerson at joyce.dickerson@da.state.ks.us at telephone no. 785-296-3979.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | February 24, 2005 | ||
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SUBJECT: | Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions |
Kansas' law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). Likewise, the State's Section 218 Agreement with the Social Security Administration exempts others from Social Security (OASDI) and Medicare. This informational circular is being issued to clarify information previously issued and to assist agencies in properly establishing UCI, Social Security and Medicare tax coverage for employees.
Following is a list of exemptions from UCI. This list is not intended to be all-inclusive and addresses those exemptions most applicable to State of Kansas employees. The statutory reference is included:
Unemployment Compensation Insurance Exemptions (from K.S.A.):
- Students, who are enrolled and regularly attending classes, in the employ of a college or university (K.S.A. 44-703 (i)(4)(N)).
- Patients in the employ of a hospital licensed, certified or approved by the Secretary of Health and Environment (K.S.A. 44-703 (i)(4)(P)).
- Services performed as part of an employment work relief or work training program assisted or financed in whole or in part by any federal agency or an agency of the state or political subdivision, by an individual receiving such work relief or work training (K.S.A. 44-703 (i)(4)(L)). (Does not apply to Employee Under Public Service Careers or the Emergency Employment Act of 1971.)
- Ordained, commissioned or licensed ministers of a church in the exercise of their ministry or members of a religious order (who have taken a vow of poverty) in the exercise of duties required by such order (K.S.A. 44-703 (i)(4)(J)).
- Individuals (patients, etc.) in a facility that's purpose is providing rehabilitation or remunerative work, who are impaired by age, physical or mental deficiency, or injury, or who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market (K.S.A. 44-703 (i)(4)(K)(i)(ii)).
- Services performed in the employ of the United State Government (K.S.A. 44-703 (i)(4)(D)).
- Elected officials (K.S.A. 44-703 (i)(4)(A)(i)).
- Members of legislative bodies (K.S.A. 44-703 (i)(4)(A)(ii)).
- Members of the judiciary or of a state or political subdivision (K.S.A. 44-703 (i)(4)(A)(ii)).
- Members of the state national guard or air national guard (K.S.A. 44-703 (i)(4)(A)(iii)).
- Employees serving on a temporary basis in cases of fire, storm, snow, earthquake, flood, or similar emergency (K.S.A. 44-703 (i)(4)(A)(iv)).
- Employees in a position which, under or pursuant to the laws of this state, is designated as a major nontenured policymaking or advisory position or as a policymaking or advisory position the performance of the duties of which ordinarily does not require more than eight hours per week (K.S.A. 44-703 (i)(4)(A)(v)). (Note: Board member positions (for example, job code 010300) would be included in this group of employees.)
- Inmates in the employ of a custodial or correctional institution (K.S.A. 44-703 (i)(4)(M)).
If an employee is on more than one concurrent position, and at least one of those positions is subject to UCI, then the Employee Tax Data should be set to "subject". UCI tax will have to be calculated and paid on all wages for that employee including positions that are not normally subject to UCI, such as board member pay.
Agency personnel are responsible for ensuring that employees are exempted from UCI as appropriate. Exemptions from UCI are entered in SHARP under Employee Tax Data (path: 'Compensate Employees', 'Maintain Payroll Data (US)', 'Use') on the State Tax Data 2 page by clicking "on" the 'Exempt From SUT' checkbox.
Social Security (OASDI) and Medicare Exemptions (based on the State's current Section 218 Agreement):
- Students in the employ of a college or university who are regularly enrolled and attending classes
- Members of the Kansas Police & Firemen's Retirement (KP&F) at Kansas Bureau of Investigation (KBI) or Highway Patrol hired before 04/01/1986*
- Non-resident aliens in possession of an F-1 VISA
- Non-resident aliens in possession of a J-1 VISA
- Non-resident aliens in possession of an M-1 or Q-1 VISA
- National Guard employees on active duty
- Wages After Death - If a wage payment will be issued in the subsequent year after the year in which the person died, the wages are not subject to Social Security and Medicare under Sec. 209M of the Social Security Act
- Medicare covered employees - Members of Kansas Police & Fireman's Retirement at KBI and Highway Patrol hired on or after 04/01/1986 have mandatory Medicare coverage* (Choose "Medicare only" for the FICA Status field)
- Patients or inmates in the employ of a hospital, home, or penal institution
- Services by an individual who has taken a vow of poverty
*Any positions affiliated with KP&F after 04/29/1983 that were previously covered by OASDHI will continue to be covered by OASDHI (P.L. 98-21). These positions include University Police affiliated with KP&F in 1989 and Capitol Area Security Police and Motor Carrier Inspectors affiliated with KP&F in 2004.
As with UCI, agency personnel are responsible for ensuring that employees are exempted from Social Security (OASDI) and Medicare coverage as appropriate. Exemptions from Social Security and Medicare are entered under Job Data (path: 'Administer Workforce', 'Administer Workforce (GBL)', 'Use') on Payroll page. If the employee is exempt from both OASDI and Medicare, 'Exempt' should be chosen for the FICA Status field. If the employee is exempt only from OASDI, 'Medicare only' should be chosen.
DB:JJM: kao
DATE: | March 22, 2005 | ||
---|---|---|---|
SUBJECT: | Parking Rate Correction for Reserved Parking in Centre City Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning March 13, 2005 and Ending March 26, 2005 Paid April 8, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Parking Rate Correction for Reserved Parking in Centre City Garage |
Effective January 1, 2005, MBI, Inc. increased its parking rates for all spaces leased from the City of Topeka. This rate increase impacts State of Kansas agencies with contracts for parking in the City Centre Garage. Payroll Services increased the parking fees for non-reserved spaces in December 2004, and increased parking fees for reserved spaces when notified in February 2005. At that time, Payroll Services was informed that parking rates for reserved spaces were increasing to $68.00 a month; unfortunately, that rate should have been $68.40 per month. Due to this corrected rate, employees who park in reserved spaces in the Centre City Garage under an agency agreement with MBI will see their parking deduction increase starting with the payroll period beginning March 13, 2005 and ending March 26, 2005, paid April 8, 2005.
The following parking deduction codes are effected by this increase: APKA57 and PPKA57 (used by the Department of Agriculture), APKA58 and PPKA58 (used by the Ethics Commission), APKA59 and PPKA59 (used by the Conservation Commission), APKA60 and PPKA60 (used by the Kansas Water Office), and APKA61 and PPKA61 (used by the Board of Technical Professions). The deduction amount for these codes will increase from $31.38 per bi-weekly pay period to $31.57 per bi-weekly pay period. Parking administrative fee code PKAD50 will increase from $2.40 per bi-weekly pay period to $2.42 per bi-weekly pay period.
The rate increases discussed in the paragraph above were entered in SHARP with a March 26, 2004 effective-dated row, and will be effective for paychecks dated on or after April 8, 2005. This increase will not be made retroactive to January 1, 2005 since the rates in mid-February were backdated, and paycheck adjustments may have already been made using the February 2005 corrected rates. Agencies are reminded that when notified of parking rate increases for the Centre City Garage, it is imperative that the information is shared with the Department of Administration's Parking Office so the rates can be implemented in SHARP in a timely manner.
Due to the complexities created by the late and erroneous rates, agencies' options in collecting the additional amounts due to MBI are limited to either collecting the difference directly from the employees or paying the difference from agency funds.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | April 26, 2005 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts for AFSCME Council 72 | ||
EFFECTIVE DATE: | Payroll Period Beginning April 10, 2005 and Ending April 23, 2005, Paid May 6, 2005 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, 1469 and 1715 |
The organization dues for members of AFSCME Council 72 will change from $11.46 to $13.40 per biweekly payroll period. The new rate will become effective with the payroll period beginning April 10, 2005 and ending April 23, 2005, paid May 6, 2005. The following deduction codes will be updated to reflect the new deduction amounts:
Deduction Code | Union | Dues Deduction |
---|---|---|
ORG270 | Local 1270 | $13.40 |
ORG357 | Local 1357 | $13.40 |
ORG469 | Local 1469 | $13.40 |
ORG715 | Local 1715 | $13.40 |
The Division of Accounts and Reports, Payroll Systems Team is responsible for making these changes in the SHARP system. Regent's institutions are responsible for ensuring these changes are reflected in their individual systems effective for paychecks issued on or after May 6, 2005.
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DATE: | April 29, 2005 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2005 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | Joyce.Dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular regarding the fiscal year 2006 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 4, 2005 will use fiscal year 2005 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 4, 2005 will use fiscal year 2006 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 pay period being adjusted. For example, the Run C off-cycle (processed June 20, paid June 23) for the pay period ending June 4, 2005 will be charged to fiscal year 2005 expenditures. The Run A off-cycle (processed June 27 paid July 1) for the pay period ending June 18, 2005 will be charged to fiscal year 2006 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run C off-cycle scheduled for June 20, 2005 (paid June 23) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2005 expenditures.
Once the Run C off-cycle for the period ending June 18, 2005 (processed July 5, paid July 8) has been processed, agencies should not request or process paycheck reversals until STARS FY 2005 closing has been successfully completed. STARS is scheduled to resume processing July 21, 2005.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 the morning of June 13, 2005 and should be completed by 8:30 a.m. In that process, a new row will be added to the Department Budget tables with an effective date of June 5, 2005 (beginning date of the first on-cycle payroll charged to FY2006). The Budget End Date will be June 4, 2006. Agencies should not enter any rows with an effective date greater than or equal to June 5, 2005 until after the FY2006 insert has been completed. When adding new rows for FY2006, agencies should verify that June 4, 2006 was used as the Budget End Date for FY2006.
GHI Adjustments
As of July 1, 2005, NO payroll processing for GHI adjustments should be made for contract year 2003. 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 2003.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2005. 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 (assuming processing occurs before midnight), the Run C off-cycle for the pay period ending June 4, 2005 (processed June 20, paid June 23) will have 355 as the Julian date in the document number and expenditures will be charged to fiscal year 2005. The Run A off-cycle for the pay period ending June 18, 2005 (processed June 27, paid July 1) will have 362 as the Julian date in the document number and expenditures will be charged to fiscal year 2006. The Run B off-cycle for the pay period ending June 18, 2005 (processed June 29, paid July 5) will have 364 as the Julian date in the document number and expenditures will be charged to fiscal year 2006. The Run C off-cycle for the pay period ending June 18, 2005 (processed July 5, paid July 8) will have 005 as the Julian date in the document number and expenditures will be charged to fiscal year 2006.
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 2006.
Reminders
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 payrolls 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 on-cycle paycheck for the period and will require special handling.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 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 'Nontaxable'.
DB:JJM:rdb
DATE: | May 3, 2005 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage - FY2006 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 5, 2005 and Ending June 18, 2005, Paid July 1, 2005 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - Curtis Building Garage - FY2006 |
Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2006. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $22.48 per bi-weekly pay period effective with the payroll period beginning June 5, 2005 and ending June 18, 2005, paid July 1, 2005. The associated administrative fee code PKAD05 increases to $1.72 ($22.48 X .0765).
Employees with the Department of Commerce, the Board of Accountancy, and Board of Regents who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction increased to $11.24. The associated administrative fee code PKAD07 increases to $0.86 ($11.24 X .0765).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | May 6, 2005 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2005 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates for fiscal year 2006 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents' are responsible for updating any rate changes into their payroll system.
DB:JJM:rdb
Attachment: DA-171 (.pdf)
DATE: | May 17, 2005 | ||
---|---|---|---|
SUBJECT: | Questionable W-4's | ||
EFFECTIVE DATE: | April 14, 2005 | ||
CONTACT: | Roger Heckerson | (785) 296-5384 | Roger.Heckerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change in submission of W-4's to the IRS |
Pursuant to Treasury Decision 9196, Internal Revenue Bulletin 2005-19, employers will no longer be required to send copies of potentially questionable Forms W-4 (Employee's Withholding Allowance Certificate) to the Internal Revenue Service. Previously, employers were required to send to the IRS any form W-4 claiming more than 10 allowances or claiming complete exemption from withholding if $200 or more in weekly wages was expected. Under the new regulation, an employer must submit a copy of any currently effective W-4 only if directed to do so in a written notice to the employer from the IRS or if directed to do so under any published guidance. The Division of Accounts and Reports, Payroll Section, will continue to be responsible for submitting W-4's to the IRS if so requested.
Agencies are still required to provide copies of an employee's Form W-4 on request. Please refer to the SHARP CBT (Employee Payroll Tax Data book) for specific information related to providing Form W-4 for employees entering their W-4 information via self-service.
DB:rh
DATE: | June 10, 2005 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Code RTD | ||
EFFECTIVE DATE: | July 1, 2005 | ||
CONTACT: | Sunni Zentner | (785) 296-5387 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Code 'RTD' |
A new earnings code has been established for Regent transitional after-tax long-term disability payments pursuant to legislative changes made to K.S.A. 74-4927a. These changes establish a transitional long-term disability benefit when an individual who is disabled and receiving benefits under the long-term disability program sponsored by KPERS is no longer eligible to receive continued contributions to the Kansas Board of Regents Mandatory Retirement Plan. Using the new earnings code, a monthly after-tax long-term disability payment will be made to the disabled individual through the payroll system until the individual is no longer disabled within the meaning of the KPERS long-term disability program.
The earnings code established is only available for use by Regent institutions. It will be effective for the payroll period beginning June 5, 2005, ending June 18, 2005, paid July 1, 2005. It will add to gross earnings and is subject to Federal and state withholding taxes, KPERS Death and Disability contributions, State Leave Payment Reserve assessment, and Worker's Compensation Insurance assessment. It is not subject to FICA/OASDI or Kansas Unemployment Compensation Insurance. The earnings code is being established in SHARP as follows:
Earns Code | Description |
---|---|
RTD | Regent Transition LTD Benefit |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents' institutions are responsible for implementing the new earnings code in their payroll systems.
DB:JJM:kao
DATE: | June 17, 2005 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2006 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 5, 2005; Ending June 18, 2005; Paid July 1, 2005 | ||
ACONTACT: | Kathy Ogle | (785) 296-2290 | Kathy.Ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2006-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 2006. The fiscal year 2006 rates will become effective with the on-cycle payroll period beginning June 5, 2005, ending June 18, 2005 and paid July 1, 2005. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2005.
In FY2006, the employer's contribution to KPERS Death and Disability Insurance increases to 0.80% (except for retirement codes J1, J2, J3 which are .4%). Agencies are reminded of the moratoriums for KPERS Death and Disability Insurance contribution that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. 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 adjustment with payroll period end dates that contain an original check date within the moratorium period.
The Division of Accounts and Reports, 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 STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2006.
DB:JJM: kao
DATE: | August 7, 2003 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 | ||
EFFECTIVE DATE: | Payroll Period Ending August 16, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG030 | ||
|
The organization dues for members of the Pittsburg State University Kansas National Education Association, deduction code 'ORG030', will change from $ 22.50 to $ 23.30 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 3, 2003 and ending August 16, 2003, paid August 29, 2003.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after August 29, 2003.
DB:JJM:eb
DATE: | August 15, 2003 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | Payroll Period Ending September 13, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE | ||
|
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning August 31, 2003 and ending September 13, 2003, paid September 26, 2003 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.35 or Less | $ 588.00 or Less | $ 7.10 |
ORG002 | $ 7.36 - $ 8.51 | $ 588.80 - $ 680.80 | $ 7.60 |
ORG003 | $ 8.52 - $ 9.39 | $ 681.60 - $ 751.20 | $ 8.10 |
ORG004 | $ 9.40 - $ 10.35 | $ 752.00 - $ 828.00 | $ 8.60 |
ORG005 | $ 10.36 - $ 11.41 | $ 828.80 - $ 912.80 | $ 9.10 |
ORG006 | $ 11.42 or Greater | $ 913.60 - or Greater | $ 9.65 |
ORG888 | KU Medical Center - Nurses | $ 9.65 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $ 7.80 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 26, 2003.
DB:JJM:eb
DATE: | August 29, 2003 | ||
---|---|---|---|
SUBJECT: | Change in self-service due to Form W-4 for 2003 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change in self-service Form W-4 for 2003 |
Because of a change to the Form W-4 for 2003, the self-service W-4 Tax Information update page has also been changed. The page now displays a check box with the instructions:
If your last name differs from that shown on your social security card, check here. You must call 1-800-772-1213 for a new card.
Checking this box does not affect processing. This change merely provides the employee with the Social Security Administration's general information and services number (the 800 number shown) so they may request a new card.
It is important for employees to obtain a corrected social security card in order for social security taxes to be correctly applied to their account by the Social Security Administration.
DB:JJM:kao
DATE: | September 12, 2003 | ||
---|---|---|---|
SUBJECT: | Discontinuance of Electronic Funds Transfer Prenoting | ||
EFFECTIVE DATE: | Payroll Period Beginning September 14, 2003 and Ending September 27, 2003 Paid October 10, 2003 | ||
CONTACT: | Carol Beck | (785) 296-2002 | carol.beck@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Discontinuance of Electronic Funds Transfer Prenoting |
In an effort to streamline the direct deposit process, a policy decision has been made to discontinue the process of prenoting electronic funds transfers. This change allows employees to receive the benefit of direct deposit immediately rather than receiving a check while waiting for the prenote process to complete. Prenoting is not required by the National Automated Clearing House Association (NACHA) and has resulted in minimal error returns.
This change in policy will be effective with all direct deposit information entered in SHARP with an effective date on or after September 14, 2003. When entering direct deposit information into SHARP using the path Compensate Employees/Maintain Payroll Data/Use/Direct Deposit, agency personnel will now be required to turn the Prenotification Required checkbox off. Regent's institutions are responsible for ensuring that prenote transactions are no longer included on their pay detail files effective with paychecks issued on or after October 10, 2003. The PRENOTE_REQD field on the employee direct deposit record (record 075) should contain a value of 'N'.
DB:JJM:kao
DATE: | September 16, 2003 | ||
---|---|---|---|
SUBJECT: | New Earnings Code | ||
EFFECTIVE DATE: | June 8, 2003 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Earnings Code 'SK3' | ||
|
The Memorandum of Agreement for Bookbinders establishes a new premium pay of $.40 per hour retroactive to June 8, 2003. This premium is only available for use by the Department of Administration-Division of Printing.
The following earnings code will be added to SHARP for this premium:
Earns Code | Description | Rate |
---|---|---|
SK3 | Skill Differential 3-Bindery | $.40 |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating this earnings code in the SHARP system.
DB:JJM:ckj
DATE: | September 23, 2003 | ||
---|---|---|---|
SUBJECT: | New Earnings Code and Changes to Existing Earnings Code | ||
EFFECTIVE DATE: | September 14, 2003 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Earnings Code 'PRA' and Changes to 'CNT' |
The following earnings code has been added in SHARP effective September 14, 2003:
Earns Code | Description |
---|---|
PRA | Pay Rate Adjustment |
To better reflect its intended purpose and provide more accurate information for audit purposes, effective with the pay period beginning September 14, 2003, use of the 'CNT' (Contractual Pay) earnings code should be limited to only contractual payments to employees. The new 'PRA' earnings code should be used for processing all late step increases and other adjustments, both positive and negative, to the employee's rate of pay. Both 'CNT' and 'PRA' should be entered as flat dollar amounts calculated by the agency. 'CNT' should continue to be entered on either the Additional Pay Page (path: Compensate Employees/Maintain Payroll Date/Use/Additional Pay) or on the employee timesheet, as appropriate. 'PRA' should be entered on the timesheet (path: Administer Workforce/Time and Leave/Use/Employee).
The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating this earnings code in the SHARP system. Regents' Institutions are responsible for ensuring this code change is updated in their individual systems.
DB:JJM:ckj
DATE: | October 16, 2003 | ||
---|---|---|---|
SUBJECT: | State of Kansas Paycard Program | ||
EFFECTIVE DATE: | October 27, 2003 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Paycard Program Introduction and Agency Instructions |
Direct deposit provides many benefits to state agencies as well as employees. Direct deposit has been a successful program and currently has a participation rate of 84 percent statewide. All agencies are being encouraged to continue promoting direct deposit with a goal of 100 percent participation. The State of Kansas Paycard Program is now being offered to provide agencies with a method that allows all employees to participate in direct deposit, even those who do not have bank accounts.
The Department of Administration has partnered with Skylight Financial, Inc. (associated with U.S. Bank) to offer the Skylight paycard to employees. The Skylight paycard is an FDIC insured ATM/debit based bank account where pay and other deposits can be made. The paycard is primarily targeted to the 'unbanked' or those employees who do not have a checking or savings account. Everyone is approved to participate, and no credit check is required.
Highlights of the Program
Skylight paycard Instant Issue Card Packs and marketing materials will be distributed to each agency by Skylight using a list provided by the Division of Accounts and Reports. Each pack includes the actual Skylight card that the participating employee will use to access their account. Employees who would like to participate in the program will sign-up at their agency's personnel office. An agency personnel staff member and the employee will access an on-line enrollment page on the Skylight web site (https://www.skylight.net/secure/onlinesignup/os_login.asp) and enter the card information, personal information, PIN information, etc. When saved, the account will be registered with Skylight, the employee will have an account number and PIN, and a voided check will be printed. The voided check will be used by the agency to sign the employee up for direct deposit in SHARP (or Regent payroll system). An authorization form (included in the pack) must be signed by the employee and then mailed by the agency to Skylight Financial, Inc. The paycard will be activated with the first direct deposit.
The employee will be charged a one-time fee of $3.50 to open the account, which will be deducted upon receipt of the first deposit. There are no monthly fees. ATM and other fees will be charged and a list of those charges is provided to the employees and agencies along with other paycard informational materials. The employee will have several different ways of accessing the money in their account: ATM withdrawals, point-of-sale transactions at merchants who accept PIN-based debit cards, and using preauthorized checks provided by Skylight. Skylight will provide the employee with one free SkylightCheck per pay deposit. SkylightChecks can be cashed at any U.S. Bank branch free of charge. All accounts are individual FDIC insured bank accounts and can be used for credit references and other electronic deposits or preauthorized bill payments. Skylight will mail each participant a monthly statement that will include all activity on the account. The Skylight card is portable; so if the employee leaves state employment, they can continue to use their card with a different employer. The State has no liability or costs associated with this program. Skylight will handle all questions about deposits, withdrawals, account functionality, and access to the account (i.e., lost PIN number, lost card, etc.). The Skylight Customer Care telephone number is 1-800-686-3363.
Materials Provided to Each Agency by Skylight Financial, Inc.
On approximately October 17, 2003, Skylight will mail the following materials to each agency:
- Instant Issue Card Packs. Each pack contains the actual Skylight card; four SkylightChecks; an authorization form; a disclosure statement explaining terms, conditions, and fees; a Consumer Privacy Guide; and a Quickstart Guide to Using Your Skylight Account. The number of packs sent to each agency will vary widely. The number of card packs that will be sent is an estimate based on the number of paper paychecks currently being processed by the agency and the likelihood of usage as determined by Skylight. More card packs can be requested as needed from Skylight (see document titled Reorder Process).
- Skylight Card Issuance Log. Each agency is required to use the card issuance log and maintain the security of the card packs so that they are not lost or stolen. The log should be updated whenever a card pack is issued or transferred to another agency. Skylight requires that the log be faxed to them on the 1st and 15th day of each month or the following business day if the 1st or 15th falls on a weekend or holiday. If the issuance log has not been updated since the last time it was faxed, there is no need to send it. The fax number will be listed at the top of the issuance log.
- Brochures Titled "Skylight: The pre-approved direct deposit bank account." These brochures are promotional materials that can be handed out to employees who inquire about the paycard program. The number of brochures that will be sent is also an estimate based on the number of paper paychecks currently being processed by the agency and the likelihood of usage as determined by Skylight. Some agencies will not receive any brochures due to their ability to provide a more personal touch to those few employees who receive checks. However, the brochure is available on the web site listed below for the State of Kansas Paycard Program.
- Brochure Stands. The number of stands provided was based on the number of brochures being sent. Most agencies will not receive any brochure stands.
- Supply of Business Reply Envelopes. The envelopes are to be used to mail the signed authorization forms to Skylight. Forms can be accumulated and then mailed to Skylight on the 1st and 15th of each month.
Teleconferences for Agencies
Skylight Financial, Inc., and the Division of Accounts and Reports will host four teleconferences to assist agencies with this new program. Each teleconference will be approximately one hour in length. Attendance is strongly encouraged for at least one personnel office staff member from each agency. The content for the four teleconferences will be basically the same so it is not necessary to attend more than one. However, two teleconferences will be directed toward larger agencies and two will be directed toward smaller agencies. Agencies will be allowed to ask questions at the end of each teleconference. Prior to attending a teleconference, the employer and employee information available on the Accounts and Reports web site, http://www.da.ks.gov/ar/, should be printed and thoroughly reviewed. This information includes the following:
- Announcement Memo to Agencies from Secretary Fricke
- Division of Accounts and Reports Informational Circular 04-P-007
- Sample Employee Letter
- Frequently Asked Questions (FAQ's) for Agencies
- Skylight Financial On-Line Enrollment Instructions
- Skylight Financial On-Line Enrollment Screen Prints
- Instant Issue Card Packs-Reorder Process
- Skylight Brochure
- Account Fees
- Introduction and Cost Comparison: Check vs. Direct Deposit
- Frequently Asked Questions (FAQ's) for Employees
- Employee Enrollment Information
In addition to all of the documents list above, please bring at least one Instant Issue Card Pack and the Skylight Card Issuance Log to the teleconference since they will be referenced during the presentation.
Select one of the following teleconference sessions:
- Monday, October 27, 2003, 2:00-3:00 p.m., for Mid-size to Large Agencies
- Wednesday, October 29, 2003, 10:00-11:00 a.m., for Small Agencies
- Tuesday, November 4, 2003, 2:00-3:00 p.m., for Small Agencies
- Thursday, November 6, 2003, 10:00-11:00 a.m., for Mid-size to Large Agencies
VERY IMPORTANT: There will be a limited number of lines (25) available for each call and access will be on a first come, first serve basis. If more than one person from an agency or a building are attending, PLEASE plan ahead to dial-in with others from a conference room, or an office with a speakerphone, so that we can accommodate everyone who would like to be on a call. The telephone number for accessing the conference is 1-800-503-2899, pass code 7202000#.
State of Kansas Procedures for Enrolling Employees in the Paycard Program
Agencies may start enrolling employees in the program on October 27, 2003 therefore the November 7, 2003 paycheck would be the earliest on-cycle pay date for participants to have a direct deposit in their Skylight account. The steps that agencies should follow to complete enrollment in the paycard program are:
- The agency must have possession of an Instant Issue Card Pack in order to process the enrollment. The agency, along with the employee, signs on to the Skylight Online Enrollment web site, https://www.skylight.net/secure/onlinesignup/os_login.asp. The user ID is 'SOK' and password is your 3-digit agency number.
- Follow the On-Line Enrollment Instructions provided on the Accounts and Reports web site, http://www.da.ks.gov/ar/. It is important for the employee to have privacy as he enters his PIN during the enrollment process.
- During the online enrollment process, the confirmation number must be filled in on the authorization form. The employee's signature is also required on the authorization form. The agency must mail the form to Skylight Financial, Inc. Authorization forms should be accumulated and mailed to Skylight on the 1st and 15th of each month.
- The agency completes a DA-184, Direct Deposit form, using the bank account information shown on the voided check printed during the online enrollment process. The employee's signature is also required on this form.
- The agency enters the direct deposit information. The prenote flag should be turned off since direct deposit prenotes are no longer necessary, as directed in Informational Circular Number 04-P-004. Direct deposit information entered in SHARP by 6:00 p.m. on the day of payroll confirmation will be effective on that paycheck being confirmed as long as the direct deposit transaction has been entered with an effective date which is less than or equal to the payroll period ending date of the payroll being confirmed. (For Regent Institutions, enroll the employee in direct deposit in your payroll system using the established procedures for your agency. The timing for a Regent employee's first paycard deposit will be different from those entered in SHARP since processing for Regent on-cycle payrolls are on a slightly different schedule. Regents Institutions should advise employees of the direct deposit effective date.)
- The employee is given the contents of the Instant Issue Card Pack used for his/her enrollment, except for the authorization form. The authorization form is the top one-third portion of the page that the Skylight card is attached to. Please detach the authorization form from the rest of the page and mail to Skylight Financial. The rest of the page should be given to the employee. Authorization forms must be mailed to Skylight Financial on the 1st and 15th of each month.
Web Sites with State of Kansas Paycard Program Information
Information is readily available for both agencies and employees to assist with using this program on the following web sites:
- Access Kansas State Employee Services
http://www.kansas.gov/employee/
This site contains information directed to employees and is accessed under the heading Employee Benefits. The documents include a Skylight brochure, a list of account fees, an introduction and cost comparison for cashing a check versus direct deposit, frequently asked questions, employee enrollment information, and a link to Skylight's list of surcharge free ATMs. - Division of Accounts and Reports Home Page
http://www.da.ks.gov/ar/
This site contains information directed to agencies and is accessed under the heading Payroll Services. All of the documents provided on the Access Kansas State Employee Service web site are also included here. The same agency information is also available on the Payroll Services home page, http://www.da.ks.gov/ar/payroll/default.htm. - SHARP Customer Service
http://www.da.ks.gov/SHARP/
This site contains information directed to agencies, and offers another way to access the same information that is available on the Accounts and Reports web site. A list of the State of Kansas Paycard Program documents is listed under the heading entitled Documents.
Employee Communication
We strongly encourage agencies to provide all employees with information about this new benefit by November 20, 2003. To assist you, two documents have been prepared to announce the paycard program to employees. Both documents are available on the agency directed web sites above:
- Sample Employee Letter. This letter encourages participation in direct deposit and announces the paycard option for employees who do not have a bank account. Your agency information needs to be inserted in the top of the letter before printing or sending to employees. Your agency may also want to add an agency contact person.
- Introduction and Cost Comparison: Check Versus Direct Deposit. This is a short introduction to the paycard program that is ideal for handing to employees at the workplace. Regent Institutions may want to distribute it along with student paychecks where possible.
DB:JJM
DATE: | October 16, 2003 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2003 | ||
EFFECTIVE DATE: | November 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2003 holidays. |
Tuesday, November 11, 2003 (Veterans' Day), Thursday, November 27, 2003 and Friday, November 28, 2003 (Thanksgiving Holiday) are designated holidays for state service in 2003. Due to the holidays in November, variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.
Friday, November 7, 2003
Payday for the payroll period ending October 25, 2003.
Time and leave interface agencies must have time and leave files for the period ending November 8, 2003 submitted to the Department of Administration for processing by 5:00 PM on November 7, 2003 (these files would normally be due Monday).
Regents' Run C off-cycle payroll files for the period ending October 25, 2003 must be received by the Department of Administration by 5:00 PM on November 7, 2003.
Monday, November 10, 2003
Paysheets for the on-cycle payroll for the period ending November 8, 2003 will be created on Monday, November 10, 2003. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 10, 2003 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 8, 2003 will also occur November 10, 2003; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM.
The Run C off-cycle for the period ending October 25, 2003 will be processed November 10, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 13, 2003.
Tuesday, November 11, 2003
(Veterans' Day Holiday)
Wednesday, November 12, 2003
The second on-cycle preliminary pay calculation for the period ending November 8, 2003 will occur November 12, 2003.
Thursday, November 13, 2003
The third on-cycle preliminary pay calculation for the period ending November 8, 2003 will occur November 13, 2003.
Friday, November 14, 2003
Regents' on-cycle payroll files for the period ending November 8, 2003 are due to the Department of Administration by 6:00 AM on November 14, 2003.
Final pay confirmation for the on-cycle payroll for the period ending November 8, 2003 will occur November 14, 2003. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 14, 2003 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 14, 2003 in order to be reflected in the final paycheck created for the employee.
Regents' Run A off-cycle payroll files for the period ending November 8, 2003 must be received by the Department of Administration by 5:00 PM on November 14, 2003.
Monday, November 17, 2003
The Run A off-cycle for the period ending November 8, 2003 will be processed November 17, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 21, 2003.
Tuesday, November 18, 2003
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 8, 2003 will be posted to STARS during Tuesday night's STARS batch processing cycle.
Regents' Run B off-cycle payroll files for the period ending November 8, 2003 must be received by the Department of Administration by 5:00 PM on November 18, 2003 in order to be processed on Wednesday, November 19, 2003.
Wednesday, November 19, 2003
The Run B off-cycle for the period ending November 8, 2003 will be processed November 19, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 24, 2003.
Friday, November 21, 2003
Payday for the payroll period ending November 8, 2003.
Time and leave interface agencies must have time and leave files for the period ending November 22, 2003 submitted to the Department of Administration for processing by 5:00 PM on November 21, 2003 (these files would normally be due Monday).
Regents' Run C off-cycle payroll files for the period ending November 8, 2003 must be received by the Department of Administration by 5:00 PM on November 21, 2003.
Monday, November 24, 2003
Paysheets for the on-cycle payroll for the period ending November 22, 2003 will be created on Monday, November 24, 2003. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 24, 2003 in order to be reflected on the paysheets for this period.
The Run C off-cycle for the period ending November 8, 2003 will be processed November 24, 2003. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated December 1, 2003.
The first on-cycle preliminary pay calculation for the period ending November 22, 2003 will also occur November 24, 2003; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 22, 2003.
Tuesday, November 25, 2003
The second on-cycle preliminary pay calculation for the period ending November 22, 2003 will occur November 25, 2003.
Wednesday, November 26, 2003
Final pay confirmation for the on-cycle payroll for the period ending November 22, 2003 will occur November 26, 2003 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 26, 2003 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 26, 2003 in order to be reflected in the final paycheck created for the employee.
Regents' on-cycle payroll files for the period ending November 22, 2003 are due to the Department of Administration by 6:00 AM on November 26, 2003.
Regents' Run A off-cycle payroll files for the period ending November 22, 2003 must be received by the Department of Administration by 5:00 PM on November 26, 2003.
Attached is a calendar for the month of November 2003, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
DB:JJM:rdb
Attachment: Payroll Calendar - November 2003 (.pdf)
DATE: | October 20, 2003 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Investment Option Change | ||
EFFECTIVE DATE: | October 17, 2003 | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Investment Option Change |
Please be advised that an additional Investment Option number (#696) for the Teachers Insurance Annuity Association (TIAA-CREF) has been added to the Savings Plan Table. The current Investment Option (#695) represents contributions to the TIAA-CREF mandatory retirement plan. The new option #696 will represent contributions to TIAA-CREF for the voluntary supplemental plan.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.
DB:JJM:ewb
DATE: | October 24, 2003 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation Loan Program | ||
EFFECTIVE DATE: | Payroll Period Beginning November 9, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Deferred Compensation Loan Program |
The deferred compensation contract with ING-AFS effective January 1, 2003 provides an option to establish a loan program. The State of Kansas amended the State of Kansas Deferred Compensation Plan to allow for loans from the plan in a document signed September 12, 2003. The State of Kansas 457 Deferred Compensation Loan Program will be available to eligible employees beginning with the payroll period beginning November 9, 2003 and ending November 22, 2003 paid December 5, 2003. Employees can sign up for the loan program through their ING representative. The Deferred Compensation Oversight Committee will be providing additional information in the near future regarding the deferred compensation loan program, including a list of program guidelines.
ING-AFS will interface new loan repayment enrollments biweekly into SHARP along with the regular deferred compensation enrollments. The interface will also include changes to existing loan payment amounts necessitated by the occurrence of a qualified leave of absence or in the event of a loan prepayment. The interface will include loan repayment enrollments/changes for employees at Regents' Institutions in addition to SHARP employees. In order for Regents' Institutions to be aware to update their individual systems with the loan repayment enrollments/changes, ING-AFS will also notify each Regent Institution directly (similar to the process for regular deferred compensation enrollments). Loan payment deductions will be set up on the General Deduction Table as after tax payroll deductions using deduction code '457DCL' (457 Deferred Compensation Loan). Loan payment deduction amounts will be remitted to ING-AFS on the biweekly remittance file along with regular deferred compensation contribution amounts.
A Leave of Absence report will be sent to ING-AFS by Payroll Services each payroll period identifying all employees with deferred compensation loans who are going on or returning from qualified leave. The following Action/Reason codes will be used to identify employees going on a qualified leave of absence:
ACTION Code: | REASON Code: |
---|---|
LOA | CNV (Conversion) |
HEA (Health Reasons) | |
MAT (Maternity/Paternity) | |
MOP (Military) | |
OTH (Other) | |
REG (Regent) | |
SEA (Seasonal/Not scheduled to work) | |
SOP (Sabbatical/Professional Leave) | |
SWP (Summer Leave with Benefits) |
The following Action/Reason codes will be used to identify employees returning from a qualified leave:
ACTION Code: | REASON Code: |
---|---|
RFL | RFL (Return from Leave) |
SLR (Summer Leave Return) |
The Division of Accounts and Reports, Payroll Systems Team, is responsible for setting up the new general deduction in SHARP. Regents' Institutions are responsible for ensuring this change is updated in their individual systems.
DB:JJM:kao
DATE: | October 22, 2003 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for 2004 | ||
EFFECTIVE DATE: | Calendar Year 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2004 | ||
|
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2004. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll.
Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
Please note that there are 27 on-cycle pay dates in calendar year 2004. Deductions for United Way, Savings Bonds, Organization Dues, Deferred Compensation, KPERS, KPERS Buyback, Court Ordered Withholdings, Post-Secondary Education Savings Plan, TSA, and VTSA will be taken for each of the 27 pay dates (assuming no deduction end date prior to December 19, 2004 has been entered for the deductions). Semi-monthly deductions for Group Health Insurance and Flexible Spending Accounts will continue to be taken on a semi-monthly basis (the first and second pay date of the month), with no deductions being taken from the third pay dates in the months of January, July, and December 2004. The monthly deductions for Long Term Care (first pay date of the month) and Optional Group Life Insurance (second pay date of the month) will continue on their normal schedule.
Bi-weekly Parking deductions will also be taken from all 27 pay dates. However, agency parking contracts based on monthly, quarterly or annual amounts may not have a deduction taken on the December 30, 2004 paycheck. Agencies should contact Frances Darrow with the Division of Facilities Management at 296-1318 to determine if their contracts qualify.
Although there are 27 pay dates in calendar year 2004, federal and state withholding calculations will still be annualized using 26 pay periods for biweekly payrolls. Employees should be advised to review their current W-4 status and the number of withholding allowances claimed. Employees should estimate their 2004 tax liability to determine if their withholding is sufficient.
If not, employees should adjust their W-4's accordingly.
DB:JJM:rdb
Attachment: SHARP Bi-Weekly Payroll Schedule for Calendar Year 2004 (.pdf)
DATE: | October 23, 2003 | ||
---|---|---|---|
SUBJECT: | Addition of Parking Deduction Codes | ||
EFFECTIVE DATE: | Payroll Period Beginning October 12, 2003 and Ending October 25, 2003 Paid November 7, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes for Department on Aging Agreement |
To facilitate the collection of parking fees resulting from the agreement entered into between the Department on Aging and the Division of Facilities Management, the following parking deduction codes have been established in SHARP for Department on Aging employees:
PARKING FACILITY |
DEDUCTION CODE |
BIWEEKLY AMOUNT |
TAX CLASS |
---|---|---|---|
Curtis Garage | PPKT0C | 10.07 | Pre-tax |
PKT0CB | 10.07 | After-tax | |
Parking administrative fee code PKAD12 ($0.77 = $10.07 X .0765) has been added for employees enrolled in deduction PPKT0C.
|
|||
Surface lot, non-reserved | PPKT0D | 2.30 | Pre-tax |
PKT0DB | 2.30 | After-tax | |
Parking administrative fee code PKAD13 ($0.18 = $2.30 X .0765) has been added for employees enrolled in deduction PPKT0D.
|
|||
Surface lot, reserved | PPKTRD | 3.46 | Pre-tax |
PKTRDB | 3.46 | After-tax | |
Parking administrative fee code PKADR2 ($0.26 = $3.46 X .0765) has been added for employees enrolled in deduction PPKTRD. |
The Division of Facilities Management will perform the necessary deduction enrollments in SHARP for employees who are covered by the parking agreements. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | October 23, 2003 | ||
---|---|---|---|
SUBJECT: | Name Change for Organizational Dues Deduction for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES) | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organizational Dues Name Change for ORG980 |
Payroll Services has been notified of a name change for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES), deduction code 'ORG980'. Effective immediately the name should be changed to the Kansas Chapter of the International Association of Workforce Professionals (IAWP).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.
DB:JJM:kao
DATE: | November 4, 2003 | ||
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SUBJECT: | New Deduction Codes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Employer Deduction Codes for Oregon Local Transit Taxes | ||
|
Employer Deduction Codes LOR001 and LOR002 have been added to the General Deduction Table for the purpose of collecting the Employer's Local Transit Tax for employees who are based in the Tri-Met and Lane County locals in Oregon. Deduction codes and tax information are as follows:
Taxing Authority | Deduction Code | Tax Rate | Tax Base |
---|---|---|---|
Tri-Met | LOR001 | .006218 | Employee's Gross Wages |
Lane County | LOR002 | .006000 | Employee's Gross Wages |
Expenditure sub-object code 1790 has been established in STARS to record the employer expenditure; amounts expended for the Oregon Local Transit Tax should be receipted into the Department of Administration Clearing Fund 9030, index 9885. For Regents' Clearing Funds, index 9685 has been established.
Please find attached the document "Index Codes for Agency and DOA Clearing Funds". This document incorporates the changes discussed above and replaces the document issued with Informational Circular 03-P-015 dated October 4, 2002.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes. Regent's institutions are responsible for ensuring that these changes are made to their individual systems.
DB:JJM:rdb
Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | November 5, 2003 | ||
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SUBJECT: | SHARP Version 8.0 - Payroll Hints and Updates | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | joyce.dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Payroll Hints and Updates |
To assist users in processing payroll transactions in the upgraded SHARP system and to inform users of new developments, the following list of payroll pointers has been compiled. If questions arise, users are encouraged to contact the Payroll Processing Team prior to the on cycle paysheet create process and/or off cycle processing. Many problems can be alleviated with data clean-up or proper instructions.
Please provide a copy of this summary to all SHARP payroll users in your agency.
Additional Pay
- New entry and most updates to existing Additional Pay data must be entered prior to the paysheet create process for the Additional Pay to be included in the paycheck. On cycle paysheets are typically created on the Tuesday night following the end of the payroll period. See the SHARP Bi-weekly Payroll Schedule for Calendar Year 2004 attachment to Informational Circular 04-P-011 and note the dates in the 'Cutoff Online Users' column of the document. The Payroll Processing Team can fix some problems after paysheet create, such as the 'Ok to Pay' field not being turned on or the effective dates being incorrect. If a problem is found, please contact the Payroll Processing Team as soon as possible for assistance.
- The 'Prorate Additional Pay' checkbox toward the bottom of the Additional Pay 1 page should always be checked 'on'. This is especially important for mid-period hires and transfers.
Direct Deposit
- As part of the SHARP version 8 conversion process, a priority '999' row was added to existing direct deposit records. When updating direct deposit records, please review the '999' row in addition to the other rows to determine necessary updates and/or deletions.
- If net pay is to be split according to two percentages, the first row should contain the higher percentage and the second row should indicate the Deposit Type of 'Balance'. This prevents creation of a paycheck for $.01 due to rounding.
- As a reminder, per Informational Circular 04-P-004, when entering direct deposit information into SHARP using the path Compensate Employees/Maintain Payroll Data/Use/Direct Deposit, agency personnel are required to turn the 'Prenotification Required' checkbox 'off'. This change allows employees to receive the benefit of direct deposit immediately rather than receiving a check while waiting for the prenote process to complete.
- For a new enrollment or a change to an employee's direct deposit, if the information is entered in SHARP before the final payroll cutoff and the effective date is less than the check date for that payroll cycle, then the new direct deposit information will be used for that paycheck being issued.
Funding
- On the Department Budget Table-Department Budget Date page, the Fiscal Year field should always be keyed in the four-digit year format, i.e., 2004.
- If a new effective dated row is added to the Account Code table, a new row with the same effective date should also be added to the Department Budget Table, otherwise the 'old' funding will be reflected in payroll expenditures.
Job Data Updates Affecting Payroll
- In most cases the Workers Compensation (WCI%%%) and State Leave (STLEAV) deduction codes are automatically populated in nightly batch processing on the employee general deduction data page for hires, rehires, etc. In some instances where effective dating has been changed or correction mode was used, this is not occurring. It is good practice to verify all general deductions for employees after hires, rehires, transfers, etc. and make necessary updates.
- In the case of rehires and agency transfers, verification should extend to employee level benefits data, additional pay, direct deposit and tax data.
Paycheck Data
- When searching for paycheck data, always enter 'SOK' in the Company field. This will ensure that all paychecks will be retrieved.
- When the Search Results for paychecks are displayed, the first 100 paychecks will be listed. If more than 100 paychecks are available for viewing for the employee, select either the 'View All' link on the left side of the page above the paycheck listing or use the 'First' and 'Last' indicators on the right side of the page to display all paychecks.
Earnings Code Usage
- As a reminder, per Informational Circular 04-P-006, the 'PRA-Pay Rate Adjustment' earnings code was created to reflect pay changes due to late step increases and other adjustments to rate of pay.
- The use of earnings code 'CNT-Contractual Pay' should be limited to contractual payments to employees.
- The earnings code 'BUS-Taxable Employee Business Expense' should be used for board member per diem pay.
Holiday Schedules
- Per agency request, holiday schedule 'SO06-State of Kansas Holiday 6 Hours' has been created to accommodate employees that work 6 hours per day.
- Holiday schedules also exist for employees that work 4, 8, 10 and 12 hours per day, as well as specific schedules for the Judicial Branch and the State Printer employees.
- The holiday schedule dictates when and how many 'HDC-Holiday Credit-Paid-1.0' hours are defaulted on the employee timesheet. Employees are enrolled in a holiday schedule on the Job Data-Payroll page.
Duplicate W-2s
- The preferred method for requesting a W-2 reissue (or duplicate) for the year 2002 and going forward would be for the employee to request the W-2 reissue using SHARP Employee Self Service. All reissued W-2s for 2002 (and going forward) are mailed directly to the employee using the address printed on the W-2 form. Within the Self Service Request W-2 Reissue option, the employee has the opportunity to update the address if it has changed since the original form was created.
- The least preferred method is for the agency to submit a request to the Division of Accounts and Report Payroll Processing Team. This method must be used if the employee has been terminated for longer than 30 days (since the employee will no longer have access to the Employee Self Service). In the request, the agency should include the year for the form being requested, employee's name, employee ID, SSN, and the current mailing address. Since all reissued W-2s for 2002 (and going forward) are mailed directly to the employee, the Payroll Processing Team will change the address on the W-2 form if necessary.
- For all W-2 reissue requests for the year 2001 and prior, the agency must submit the request to the Division of Accounts and Reports Payroll Processing Team. Please include the year for the form being requested, name, employee ID, and SSN. All resulting reissued W-2s will be mailed to the agency unless special distribution instructions are given.
DB:JJM:ckj
DATE: | November 13, 2003 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned Vehicles | ||
EFFECTIVE DATE: | January 1, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2004 |
The Internal Revenue Service (IRS) has increased the mileage rate from 36 cents (for 2003) to 37.5 cents (for 2004) under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned vehicle. The new rate becomes effective January 1, 2004. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 37.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicles total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2004 and the agency wishes to use the Cents-Per-Mile method, please contact Payroll Services for the 'luxury' vehicle definition. Agencies and employees are also reminded that the only personal use of a state vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.
DB:JJM:rdb
DATE: | November 18, 2003 | ||
---|---|---|---|
SUBJECT: | December 2003 Payroll Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | December 2003 Payroll Processing |
As a result of Governor Sebelius designating Friday, December 26, 2003 as an additional state holiday for 2003, the following changes have been made to the December payroll processing schedule:
- There will be only two preliminary payroll calculations for the pay period ending December 20, 2003. The preliminary calculations will occur on Monday, December 22, 2003 and Tuesday, December 23, 2003.
- The final payroll calculation and confirm for the payroll period ending December 20, 2003, originally scheduled for December 26, 2003, is now scheduled for December 24, 2003. All employees' time and leave records must be 'OK to Process' by 6:00 p.m. on December 24, 2003 in order for an on-cycle paycheck to be generated. In addition, all deduction and tax data changes must be entered by 6:00 p.m. on December 24, 2003 in order to be reflected in the on-cycle paycheck created for the employee.
- Regent's on-cycle files for the payroll period ending December 20, 2003, originally due on December 24, 2003, are now due to the Department of Administration by 6:00 a.m. on December 23, 2003.
- The check issue date for the Run C off-cycle for the pay period ending December 6, 2003 has been changed from December 26, 2003 to December 24, 2003.
- The due date for the Regent's Run A off-cycle files for the pay period ending December 20, 2003 has been moved from Friday, December 26, 2003 to Wednesday, December 24, 2003 at 5:00 p.m.
Please make sure to note the above payroll processing date changes and adjust your schedules accordingly.
2003 YEAR END PROCESSING
The Division of Accounts and Reports is making preparations for the issuance of calendar year 2003 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2003 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2004 balances; a corrected W-2 (Form W-2C) for 2003 will not be issued for the employee involved.
FINAL 2003 PAYCHECK
The final on-cycle paychecks for calendar year 2003 will be issued December 19, 2003. Paychecks will be mailed on December 18, 2003. The final off-cycle paychecks for calendar year 2003 will be issued on December 24, 2003 (generated from the off-cycle processed on December 22, 2003).
PAYCHECK REVERSALS
Any 2003 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 22, 2003 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 22, 2003 will update calendar year 2004 balances and will not be reflected in the employee's 2003 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 22, 2003 to enter paycheck adjustment requests for any 2003 paychecks. Adjustments processed in the December 22, 2003 off-cycle payroll will be reflected on the employee's 2003 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2003 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 15, 2003.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2003 for inclusion in the December 22, 2003 off-cycle. However, if a large volume of DA-180 forms is received on the December 15, 2003 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2003 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 22, 2003 which are adjusting paychecks issued prior to January 1, 2004 will not result in a W-2C; the adjustment will update the employee's 2004 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 22, 2003 will update the employee's 2004 payroll balances.
REGENTS' INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 6, 2003, paid December 19, 2003 are due to the Department of Administration by 6:00 a.m. on December 12, 2003.
REGENTS' INSTITUTIONS: OFF-CYCLE FILES
2003 Paycheck Reversals
Regent Institutions must submit all transmittals for 2003 paycheck reversals by 5:00 p.m. on Friday, December 19, 2003 in order to update the employee's 2003 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2004 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2004 submitted after 5:00 pm on December 19, 2003 should default the pay adjust check date to January 1, 2004.
2003 Adjustments and Supplementals
In order to update employee balances for 2003, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 19, 2003. The off-cycle for the pay period ending December 6, 2003 generated on the night of Monday, December 22, 2003 will have a check issue date of December 24, 2003; all activity for this off-cycle will be reflected in the employees' 2003 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2003 date.
2004 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2004, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 19, 2003, will be considered to be 2004 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2004 business, the employee's 2004 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2004 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2004, agencies should default the pay adjust check date to January 1, 2004).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2004, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2004 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2004 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of 'P', will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 19, 2003 deadline for the December 22 Run C off-cycle payroll will not be processed until the January 26, 2004 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 20, 2004. The deadline for submitting payroll interface files for the January 26, 2004 off-cycle is 5:00 p.m. on January 23, 2004.
GENERAL REMINDERS
United Way
The deduction END date on the general deduction panel for 2003 United Way contributions should be dated between December 7, 2003 and December 20, 2003 in order for the last 2003 deduction to be taken on the paycheck issued December 19, 2003. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2004, agencies can enter a new row effective-dated between December 7, 2003 and December 20, 2003 in order for the first deduction for 2004 to be taken on the January 2, 2004 paycheck. If the 2004 deduction is to be taken over 27 pay dates, a deduction end date of December 19, 2003 should be entered.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2003 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced EIC payments. Notifications will be sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications will be sent to the agency email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2004 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 12, 2003 to allow adequate time for processing.
Agency personnel have until 6:00 p.m. on December 15, 2003 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons 'New W-4 Received' and/or 'New W-5 Received' on the employee's 'Federal Tax Data 1' and 'Federal Tax Data 2' panels in SHARP for the effective-dated rows they enter. Agency Workflow Administrators also need to check the radio button 'New W-4 Received' on the electronic W-4s submitted by the employee for calendar year 2004.
The KPAY320 will be processed the evening of December 15, 2003. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2004 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2004 effective-dated row will update the employee's marital status to 'single' with zero exemptions and/or stop any advance EIC payments for paychecks with a 2004 pay date.
For any 2004 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 15, 2003 and January 1, 2004, agency personnel will need to enter the data with a January 2, 2004 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2004 for any electronic W-4s received in this time period.
The 2004 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 15, 2003 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2004. The new tax data row will be dated January 1, 2004. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2004 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
Deduction Information
All deductions for calendar year 2004 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Long Term Care: monthly, deducted on the first pay date of the month.
- Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
All bi-weekly deductions will be deducted in the 27 pay periods in calendar year 2004 if no deduction end date prior to December 19, 2004 has been entered.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 22, 2003. Please refer to the most recent PAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. Any arrearage collections made by personal reimbursement that are collected after December 12, 2003, and prior to December 22, 2003, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2003 W-2.
Agencies are reminded that advance ('ADV') earnings are being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 2003 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 6, 2003 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 19, 2003 (i.e., on-cycle for the payroll period ending December 6, 2003) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2003 Form W-2.
W-2s
Please note that if an employee has a mailing address on the SHARP Personal Data page, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to this Personal Data page by 5:00 pm on December 24, 2003 to guarantee the updated information is included in the W-2 data. Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 24, 2003.
The W-2 programs will be executed anytime between December 24, 2003 and January 16, 2004.
W-2 forms will be mailed on or before January 31, 2004. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2003 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 04-P-011, dated October 22, 2003. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.
Attachment: December Payroll Calendar (.pdf)
DB:JJM:rdb
DATE: | December 4, 2003 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $87,900 effective January 1, 2004 |
The Social Security wage base for OASDI will be $87,900 for calendar year 2004. This is a $900 increase from the 2003 wage base of $87,000. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2004 will be $5,449.80. There continues to be no limit on wages subject to the Medicare tax in 2004. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,449.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:rdb
DATE: | December 4, 2003 | ||
---|---|---|---|
SUBJECT: | New Tables for Earned Income Credit for 2004 | ||
EFFECTIVE DATE: | January 1, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 2004 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 2004. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2004. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.
The Internal Revenue Service has released the 2004 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2004 Form W-5 is attached; the 2003 Form W-5 expires on December 31, 2003. The 2004 Form W-5 must be filed with the employer before advance 2004 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2004 earned and adjusted gross income will each be less than $30,338.00 for single employees or $31,338.00 if filing jointly (include spouses income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the EIC for 2004 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2004.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
An e-mail notification was sent on December 3, 2003 as a reminder to all SHARP employees receiving advanced EIC payments in 2003 that a new Form W-5 must be submitted to continue the EIC payments in 2004. The e-mail notification was sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. The notification was sent to the agency email address for those employees who lack an individual email address and agencies will need to distribute the notifications to their employees. A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.
Agency personnel have until 6:00 p.m. on December 15, 2003 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2004. It is important that agency personnel check the 'New W-5 Received' radio button on the employee's 'Federal Tax Data 2' page for the new effective-dated row that is entered. As outlined in Accounts and Reports Informational Circular No. 04-P-017 issued November 18, 2003, the Department of Administration will be processing the KPAY320 on the night of December 15, 2003. This process will update the existing SHARP federal tax data records for all employees claiming the EIC in 2003 in which the 'New W-5 Received' radio button is not checked. The update will insert a January 1, 2004 effective-dated row with an Earned Income Credit status of 'Not applicable'. (Please note, the KPAY320 process will also update all employees claiming exemption from withholding tax in 2003 in which the 'New W-4 Received' radio button is not checked. The update for exempt employees will insert a January 1, 2004 effective-dated row and will update the employee's marital status to 'single' with zero exemptions.)
For any Forms W-5 for 2004 (or Forms W-4 for 2004 for employees claiming exemption from withholding) received after December 15, 2003, agency personnel will need to enter the data with a January 2, 2004 effective date. The data will need to be entered into SHARP by 6:00 p.m. on Wednesday, December 24, 2003 in order to be reflected in the on-cycle paycheck dated January 2, 2004. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.
When the KPAY320 process is generated, a report is created which provides a listing to agencies identifying all SHARP employees whose EIC and/or exempt withholding status was updated in SHARP on the night of December 15, 2003. The report will be available in the agency directory on the MVS.
The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regent's institutions are responsible for implementing the new EIC rates in their respective payroll systems.
DB:JJM:rdb
Attachments: Advanced Earned Income Credit Formulas
W-5 Earned Income Credit Advance Payment Certificate
DATE: | December 4, 2003 | ||
---|---|---|---|
SUBJECT: | New Organization for Org Dues Deductions | ||
EFFECTIVE DATE: | December 7, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Organization Dues Deduction Code ORG064 |
The International Association of Fire Fighters (IAFF), Local 64, has met the requirements of K.S.A. 75-5501(3)(b) for employee membership dues deductions. Therefore, a new deduction code, ORG064, has been added in SHARP to accommodate payroll deduction of membership dues to this organization. The deduction for member dues will be $13.84 per biweekly period effective with the payroll period beginning December 7, 2003 and ending December 20, 2003 paid January 2, 2004. Enrollment and/or termination cards should be sent to Robert Wing at IAFF, P.O. Box 6243, Kansas City, Kansas 66106.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is reflected in their systems for all paychecks issued on or after January 2, 2004.
DB:JJM:ewb
DATE: | December 4, 2003 | ||
---|---|---|---|
SUBJECT: | Change in KPERS Employer Contribution Rates for Correction Officer Groups A & B | ||
EFFECTIVE DATE: | The Pay Period beginning November 23, 2003 and ending December 6, 2003, paid December 19, 2003. | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change In KPERS Employer Contribution Rates for Correction Officer Groups A & B |
The Kansas Public Employees Retirement System (KPERS) notified the Division of Accounts and Reports that the employer contribution rate for Correctional Officers Groups A & B was modified to 3.15% and 2.68%, respectively, for the remainder of fiscal year 2004. The modified rates are effective for the pay period beginning November 23, 2003 and ending December 6, 2003, paid December 19, 2003.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:rdb
DATE: | December 12, 2003 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2004 | ||
EFFECTIVE DATE: | January 1, 2004 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | 2004 Deferred Compensation and Voluntary Tax Sheltered Annuity Changes |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Voluntary Tax Sheltered Annuity (VTSA) limits will increase effective January 1, 2004 as follows:
457(b) Deferred Compensation:
The Deferred Compensation annual contribution limit increases from the lessor of
$12,000 or 100% of includible compensation (2003 calendar year limit) to the lessor of $13,000 or 100% of includible compensation (2004 calendar year limit).
The Deferred Compensation special catch-up limit increases from $24,000 (2003 calendar year limit) to $26,000 (2004 calendar year limit). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $3,000 (for 2004) to a total of $16,000.
Please note: The two different catch-up provisions cannot be used concurrently.
403(b) Voluntary Tax Sheltered Annuity (VTSA):
The limit on annual contributions for Tax Sheltered Annuities is the lesser of $41,000 or 100% of includible compensation.
The limit on elective deferral will increase from $12,000 (2003 calendar year limit) to $13,000 (2004 calendar year limit).
The catch-up provision for participants who are 50 years of age or older may allow employees to contribute up to an additional $3,000 annually.
Additionally, there is a 15-year catch-up provision which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3000 (for 2004) for a total of $16,000.
Employees may be able to use both the age 50 and 15-year catch-up provisions at the same time.
The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $200,000 (for 2003) to $205,000 (for 2004). The $205,000 limit may be increased for Regent's employees who participated in the Kansas Board of Regent's Retirement Plan prior to 1996. Regent's institutions are encouraged to contact the 403(b) carrier to determine the annual compensation limit for employees who earn in excess of $205,000. Regent's institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees.
The Act repeals the coordination requirements for employees who participate in both a 457(b) - Deferred Compensation Plan and a 403(b) - Tax Sheltered Annuity plan. Employees eligible for both plans will be able to defer the full amount to both plans.
DB:JJM:rdb
DATE: | December 15, 2003 | ||
---|---|---|---|
SUBJECT: | Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | sunni.zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions |
Kansas' law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). Likewise, the State's Section 218 Agreement with the Social Security Administration exempts others from Social Security (OASDI) and Medicare. This informational circular is being issued to assist agencies in properly establishing UCI, Social Security and Medicare tax coverage for employees.
Following is a list of exemptions from UCI. This list is not intended to be all-inclusive and addresses those exemptions most applicable to State of Kansas employees. The statutory reference is included:
- Students, who are enrolled and regularly attending classes, in the employ of a college or university (K.S.A. 44-703(i)(4)(N)).
- Patients in the employ of a hospital licensed, certified or approved by the Secretary of Health and Environment (K.S.A. 44-703 (i)(4)(P)).
- Services performed as part of an employment work relief or work training program assisted or financed in whole or in part by any federal agency or an agency of the state or political subdivision, by an individual receiving such work relief or work training (K.S.A. 44-703 (i)(4)(L)). (Does not apply to Employee Under Public Service Careers or the Emergency Employment act of 1971.)
- Ordained, commissioned or licensed ministers of a church in the exercise of their ministry or members of a religious order (who have taken a vow of poverty) in the exercise of duties required by such order (K.S.A. 44-703 (i)(4)(J)).
- Individuals (patients, etc.) in a facility that's purpose is providing rehabilitation or remunerative work, who are impaired by age, physical or mental deficiency, or injury, or who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market (K.S.A. 44-703 (i)(4)(K)(i)(ii)).
- Services performed in the employ of the United States Government (K.S.A. 44-703 (i)(4)(D)).
- Elected officials (K.S.A. 44-703 (i)(4)(A)(i)).
- Members of legislative bodies (K.S.A. 44-703 (i)(4)(A)(ii)).
- Members of the judiciary or of a state or political subdivision (K.S.A. 44-703 (i)(4)(A)(ii)).
- Members of the state national guard or air national guard (K.S.A. 44-703 (i)(4)(A)(iii)).
- Employees serving on a temporary basis in cases of fire, storm, snow, earthquake, flood, or similar emergency (K.S.A. 44-703 (i)(4)(A)(iv)).
- Employees in a position which, under or pursuant to the laws of this state, is designated as a major nontenured policymaking or advisory position or as a policymaking or advisory position the performance of the duties of which ordinarily does not require more than eight hours per week (K.S.A. 44-703 (i)(4)(A)(v)). (Note: Board member positions (for example, job code 010300) would be included in this group of employees.)
- Inmates in the employ of a custodial or correctional institution (K.S.A. 44-703 (i)(4)(M)).
If an employee is on more than one concurrent position, and at least one of those positions is subject to UCI, then the Employee Tax Data should be set to subject. UCI tax will have to be calculated and paid on all wages for that employee including positions that are not normally subject to UCI, such as board member pay.
Agency personnel are responsible for ensuring that employees are exempted from UCI coverage as appropriate. Exemptions from UCI are entered in SHARP under Employee Tax Data (path: 'Compensate Employees', 'Maintain Payroll Data (US)', 'Use') on the State Tax Data 2 page by clicking "on" the 'Exempt From SUT' checkbox.
Following are the exemptions from Social Security (OASDI) and Medicare, based on the State's current Section 218 Agreement:
- Students in the employ of a college or university who are regularly enrolled and attending classes (321.1(g))
- Members of the Kansas Police & Firemen's Retirement (321.1(d))
- Non-resident aliens in possession of an F-1 VISA (321.1(h))
- Non-resident aliens in possession of a J-1 VISA (321.1(h))
- Non-resident aliens in possession of an M-1 or Q-1 VISA (321.1(h)) National Guard employees on active duty (321.1(c))
- National Guard employees on active duty (321.1(c))
- Wages After Death - If a wage payment will be issued in the subsequent year after the year in which the person died, the wages are not subject to Social Security and Medicare under Sec. 209M of the Social Security Act
- Medicare covered employees - Kansas Police & Firemen employees hired after 04/01/1986 (Choose "Medicare only" for the FICA Status field)
- Patients or inmates in the employ of a hospital, home, or penal institution (321.1(b))
- Services by an individual who has taken a vow of poverty (321.1(j))
As with UCI, agency personnel are responsible for ensuring that employees are exempted from Social Security (OASDI) and Medicare coverage as appropriate. Exemptions from Social Security and Medicare are entered under Job Data (path: 'Administer Workforce', 'Administer Workforce (GBL)', 'Use') on the Payroll page. If the employee is exempt from both OASDI and Medicare, 'Exempt' should be chosen for the FICA Status field. If the employee is exempt only from OASDI, 'Medicare only' should be chosen.
DB:JJM: kao
DATE: | December 22, 2003 | ||
---|---|---|---|
SUBJECT: | Optional Group Life Insurance Rate Changes | ||
EFFECTIVE DATE: | January 1, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Optional Group Life Insurance Rate Changes |
Please note that effective January 1, 2004 the Optional Group Life Insurance rates are changing as follows:
Age at the Beginning of the Calendar Year |
Monthly Premium per $1,000 |
---|---|
Under 30 | $0.05 |
30-34 | $0.07 |
35-39 | $0.08 |
40-44 | $0.09 |
45-49 | $0.13 |
50-54 | $0.19 |
55-59 | $0.36 |
60-64 | $0.55 |
65-69 | $1.07 |
70-74 | $1.73 |
75 and Older | $2.06 |
An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available is $250,000.00. The age calculation will continue to be based on the employee's attained age as of January 1st of the current calendar year.
The new rates are effective with coverage for the month of January 2004. Therefore, the January 16, 2004 paycheck (paycheck issued for the payroll period ending January 3, 2004) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month's coverage.
The Division of Accounts and Reports, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to January 1, 2004.
DB:JJM:rdb
DATE: | January 5, 2004 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2003 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
Debbie Esquibel | (785) 368-6313 | Debbie.Esquibel@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2003 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2003 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 25, 2003.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2003 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2003 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
The standard W-2 will once again be used for 2003. The standard W-2 conforms to our SHARP software, and aids in reducing programming costs for updating and maintaining custom programs in SHARP. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.
Agencies are reminded that the mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. Most employees should continue to receive their W-2's at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2003 W-2's, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2004. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2003 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees needing duplicate W-2's for years 2003 and 2002, agencies are strongly encouraged to recommend that employees use the 'W-2 Reissue Request' functionality found in Employee Self Service at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. After logging into the system and selecting 'W-2 Reissue Request', the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2003 or 2002) the reissued W-2 is needed. W-2's for 2002 are currently available, with W-2's for 2003 becoming available Monday, February 2, 2004.
The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2's for those employees who cannot access Employee Self Service. Requests for duplicate W-2's received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2's and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2003 W-2's for each printing. The requests should be in social security number order and should include each employee's name, employee ID, and correct mailing address in addition to the SSN. Requests for duplicate W-2's for years prior to 2003 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.state.ks.us.
The W-2 form used prior to 2002 provided the employee a summary, which showed calculations for federal, state, social security, and Medicare grosses. This summary is no longer available using the standard functionality provided by our software. Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. In addition, on-line agencies may also consider utilizing the SHARP KPAY318, 'Year to Date Balances' report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle paychecks dated December 19, 2003 and the off-cycle paychecks dated December 26, 2003 are included in the 2003 W-2 amounts.
DB:JJM:rdb
Attachments: 2003 W-2 Wage and Tax Statement Calculations (.pdf)
Sample KPAY318.SQR (.pdf)
DATE: | January 7, 2004 | ||
---|---|---|---|
SUBJECT: | 2004 W-2 Production Reports | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | 2004 W-2 Production Reports to be Run Throughout the Year |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2004 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2004 W-2 production reports are scheduled to be generated:
- Friday, February 13, 2004
- Friday, March 12, 2004
- Friday, April 9, 2004
- Friday, May 7, 2004
- Friday, June 4, 2004
- Friday, July 2, 2004
- Friday, July 30, 2004
- Friday, August 27, 2004
- Friday, September 24, 2004
- Friday, October 22, 2004
- Friday, November 5, 2004
- Friday, November 19, 2004
- Friday, December 3, 2004
- Wednesday, December 15, 2004
- Monday, December 20, 2004
- Monday, December 27, 2004
- Wednesday, December 29, 2004 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2's for 2004 are complete, a final KTXPR55 report will be generated for each agency's information and review.
In addition, the Regent's institutions will receive the report KTAX900 in their agency mailbox on the MVS. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
DB:JJM:rdb
DATE: | January 16, 2004 | ||
---|---|---|---|
SUBJECT: | Missouri State Withholding | ||
EFFECTIVE DATE: | January 1, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change in Missouri State Withholding Tax Formula for 2004 |
The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2004. The following table is a list of current filing statuses and the standard deduction for 2004.
Filing Status | Standard Deduction |
---|---|
Single | $4,850.00 |
Married and spouse works | $4,850.00 |
Married and spouse does not work | $9,700.00 |
Head of Household | $7,150.00 |
For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4 and then $1,200.00 for each additional allowance thereafter. Please note, in past years, the head of household status was not allowed the $1,200.00 deduction for allowances two through four when using the withholding tax formula.
Agencies are reminded that the Missouri Department of Revenue does not use the federal W-4 for establishing filing status and exemptions for Missouri. Agencies should insure that they have a MO W-4 on file for employees claiming Missouri withholding. If the employee does not have a MO W-4 on file, the employee's Missouri withholding status should be Single with zero allowances. Please find attached copies of the MO W-4 and 2004 Missouri Withholding Tax Formula for your information
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.
DB:JJM:rdb
Attachments: Missouri W-4 and 2004 Missouri Withholding Tax Formula
DATE: | April 9, 2004 | ||
---|---|---|---|
SUBJECT: | Change in KPERS Employer Contribution Rates for Correction Officer Groups A & B | ||
EFFECTIVE DATE: | The Pay Period beginning March 28, 2004 and ending April 10, 2004, paid April 23, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change In KPERS Employer Contribution Rates for Correction Officer Groups A & B |
The Kansas Public Employees Retirement System (KPERS) notified the Division of Accounts and Reports that the employer contribution rates for Correctional Officers Groups A & B were modified to 1.02% and 1.05%, respectively, for the remaining five pay dates in fiscal year 2004. The modified rates are effective for the pay period beginning March 28, 2004 and ending April 10, 2004, paid April 23, 2004.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:rdb
DATE: | April 13, 2004 | ||
---|---|---|---|
SUBJECT: | Employee Taxability for the Personal (Commuting) Use of a State-Owned or Leased Vehicle | ||
EFFECTIVE DATE: | January 1, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Information Concerning Employee Use of a State-Owned or Leased Vehicle |
The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated, Kansas Administrative Regulations, and Executive Order 03-04.
BACKGROUND
In general, an employee's personal (commuting) use of a state-owned or leased vehicle is a taxable fringe benefit. Commuting is defined as travel back and forth between the employee's residence and official workstation. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.
POLICY
K.S.A. 8-301 states that all publicly owned vehicles are for official business only and may not be used for private use, private business, or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:
(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.
(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.
(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
Please note, Executive Order 03-04, which became effective on April 1, 2003 directs the Secretary of Administration to amend the applicable Kansas Administrative Regulation governing commuting in a state-owned or leased vehicle to further restrict such travel. Effective April 1, 2003 and continuing until amendment of the Kansas Administrative Regulation governing commuting, the head of each executive branch state agency under the jurisdiction of the Governor shall prohibit commuting in state-owned or leased vehicles by employees of that agency except under the circumstances listed below:
- The vehicle is marked as a law enforcement vehicle and is used by an employee certified as law enforcement officer under the provisions of K.S.A. 74-5601 et seq.
- The vehicle is used to commute by an employee who is determined by the Secretary of Administration to be required to respond to reoccurring public safety emergencies under specified circumstances that make commuting in a state vehicle cost effective.
- The vehicle is assigned to the employee on a trip basis only and driving the vehicle to the employee's residence will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
- The vehicle is assigned for use in the state vanpool program under K.S.A. 75-46a02 et seq.
- The vehicle is used to transport the Governor or other elected official when the Superintendent of the Highway Patrol determines using the state vehicle is a necessary security measure.
Kansas Administrative Regulation 1-17-2(b)(1) and the Administrative Guidelines For Commuting Under Executive Order 03-04 allow field employees, such as inspectors, to commute between the field employee's residence and work sites in a state-owned or leased vehicle when the employee's residence is designated as the official work station. The employee's residence can be designated as the official workstation when over 50% of the employee's work time involves direct travel from his or her residence.
Please note that meeting the Kansas Administration Regulation or Executive Order 03-04 requirements to commute with the state-owned or leased vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of the vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle (listed in Appendix D) or the employee's residence meets the IRS's 'principal place of business' test discussed below.
PRINCIPAL PLACE OF BUSINESS TEST
Field employees generally do not report fringe benefit income for official travel between the employee's residence and work sites. To be excluded from the IRS's fringe benefit income reporting requirements, the employee's residence must qualify as the employee's 'principal place of business'. A principal place of business is defined as a place of business which is used by the taxpayer for the administrative or management activities of a trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business. If the employee works both out of his or her home (because it has been designated as the official work station) and has a state provided office, the employee's principal place of business needs to be determined by examining all the facts and circumstances.
AGENCY RESPONSIBILITY
Agencies shall identify and notify those employees who use state-owned or leased vehicles and who park those vehicles overnight at their residences (commuting) that the commuting use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS discussed in Appendix A unless the vehicle is listed in Appendix D or the employee's residence meets the 'principal place of business test'.
Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include, at a minimum, the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).
Agencies shall provide the payroll system with reports and data to:
- Record fringe benefit income chargeable to each affected employee.
- Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
- Calculate and withhold from each affected employee's pay the federal and state income tax due.
- Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
- Remit all withheld taxes and contributions to the appropriate authorities.
- Report on each affected employee's W-2, the total fringe benefit income for the calendar year.
DB:JJM:rdb
Attachments (pdf)
DATE: | May 11, 2004 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates for fiscal year 2005 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents' are responsible for updating any rate changes into their payroll system.
DB:JJM:rdb
Attachment: DA-171 (.pdf)
DATE: | May 11, 2004 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2004 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | joyce.dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular regarding the fiscal year 2005 payroll contribution rates will be issued as soon as the information becomes available.
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 pay periods ending on or before June 5, 2004 will use fiscal year 2004 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 5, 2004 will use fiscal year 2005 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 pay period being adjusted. For example, the Run B off-cycle (processed June 16, paid June 21) and the Run C off-cycle (processed June 21, paid June 24) for the pay period ending June 5, 2004 will be charged to fiscal year 2004 expenditures. The Run A off-cycle (processed June 28 paid July 2) for the pay period ending June 19, 2004 will be charged to fiscal year 2005 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run C off-cycle scheduled for June 21, 2004 (paid June 24) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2004 expenditures.
Once the Run C off-cycle for the period ending June 19, 2004 (processed July 6, paid July 9) has been processed, agencies should not request or process paycheck reversals until STARS FY 2004 closing has been successfully completed. STARS is scheduled to resume processing July 21, 2004.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
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 the morning of June 14, 2004 and should be completed by 8:30 a.m. In that process, a new row will be added to the Department Budget tables with an effective date of 06/06/2004 (beginning date of the first on-cycle payroll charged to FY2005). The Budget End Date will be 06/05/2005. Agencies should not enter any rows with an effective date greater than or equal to June 6, 2004 until after the FY2005 insert has been completed. When adding new rows for FY2005, agencies should verify that 06/05/2005 was used as the Budget End Date for FY2005.
GHI Adjustments
As of July 1, 2004, NO payroll processing for GHI adjustments should be made for contract year 2002. 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 2002.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2004. 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 (assuming processing occurs before midnight), the Run C off-cycle for the pay period ending June 5, 2004 (processed June 21, paid June 24) will have 357 as the Julian date in the document number and expenditures will be charged to fiscal year 2004. The Run A off-cycle for the pay period ending June 19, 2004 (processed June 28, paid July 2) will have 364 as the Julian date in the document number and expenditures will be charged to fiscal year 2005. The Run B off-cycle for the pay period ending June 19, 2004 (processed June 30, paid July 6) will have 366 as the Julian date in the document number and expenditures will be charged to fiscal year 2005. The Run C off-cycle for the pay period ending June 19, 2004 (processed July 6, paid July 9) will have 006 as the Julian date in the document number and expenditures will be charged to fiscal year 2005.
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 2005.
Reminders
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 payrolls 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 on-cycle paycheck for the period and will require special handling.
- Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 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 Non-taxable.
DB:JJM:rdb
DATE: | May 18, 2004 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning June 6, 2004 and Ending June 19, 2004, Paid July 2, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - Curtis Building Garage |
Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2005. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $22.04 per bi-weekly pay period effective with the payroll period beginning June 6, 2004 and ending June 19, 2004, paid July 2, 2004. The associated administrative fee code PKAD05 increases to $1.69 ($22.04 X .0765).
Employees with the Department of Commerce and the Board of Accountancy who park in the Curtis Building Garage will see parking deduction codes PKT10B and PPKT10 increased to $11.02 per bi-weekly pay period. Administrative fee code PKAD07 increases to $0.84 ($11.02 X .0765).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | June 16, 2004 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Code 'SF4' | ||
EFFECTIVE DATE: | Pay Period Beginning June 6, 2004; Ending June 19, 2004; Paid July 2, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Code 'SF4' for Kansas State University |
Executive Directive 04-351 established a new $0.40 per hour shift differential for eligible employees covered by the Maintenance and Service Unit at Kansas State University. The earnings code for this shift differential is 'SF4' and will only be used by Kansas State University (agency 367). The new earnings code will be effective for the payroll period beginning June 6, 2004; ending June 19, 2004; paid July 2, 2004, will add to gross earnings, and will be displayed as follows:
Code | Description |
---|---|
SF4 | Shift 4 - KSU Only-$0.40 |
The Division of Accounts and Reports, Payroll System Team is responsible for adding the new earnings code to the SHARP payroll system. Regents' institutions are responsible for ensuring the new earnings code is added to their individual systems.
DB:JJM:rdb
DATE: | June 17, 2004 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2005 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 6, 2004; Ending June 19, 2004; Paid July 2, 2004 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | Roger.Basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | -Fiscal Year 2005-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans -End of KPERS Death and Disability Moratorium |
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 2005. The fiscal year 2005 rates will become effective with the on-cycle payroll period beginning June 6, 2004, ending June 19, 2004 and paid July 2, 2004. The withholding rates for OASDI, Medicare, federal taxes, and Kansas' taxes remain unchanged for the remainder of calendar year 2004.
The moratorium on employer's contributions to KPERS' Death and Disability Insurance ceases at the end of FY04. Therefore, the Division of Accounts and Reports will resume collecting the contributions with the on-cycle payroll period beginning June 6, 2004, ending June 19, 2004 and paid July 2, 2004. Please note, the moratorium of employer's contributions to KPERS' Death and Disability Insurance was in place for payroll periods with original check dates between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. Agencies are reminded that SHARP off-cycle payrolls use payroll period end dates to determine if the contributions for KPERS' Death and Disability Insurance should be taken. Therefore, no contributions will be taken for paycheck adjustments with payroll period end dates that contain an original check date within the moratorium period.
The Division of Accounts and Reports' 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 performed in their individual systems. Regents' institutions are also responsible for ensuring that the STARS' funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2005.
DB:JJM:rdb
Attachments
DATE: | June 17, 2002 | ||
---|---|---|---|
SUBJECT: | Consolidation of Existing Organizations for AFSCME Council 72 To New AFSCME Organization 715 | ||
EFFECTIVE DATE: | Payroll Period Beginning June 9, 2002 and Ending June 22, 2002, Paid July 5, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Consolidation Changes for AFSCME | ||
|
Please be advised that the existing members of AFSCME Council 72, Locals 1417 (ORG417), 1419 (ORG419), 1438 (ORG438) and 1439 (ORG439) are being consolidated to form a new AFSCME Organization, Local 1715. The Deduction code for Local 1715 will be ORG715 and the regular bi-weekly dues for the members will be $ 11.16. The effective date of this consolidation for the payroll system will be for the payroll period beginning June 9 and ending June 22, paid on July 5, 2002. Agencies will need to ensure that the employees enrolled in the existing locals are changed to ORG715 for the effective pay period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after July 5, 2002.
DB:JJM:eb
DATE: | June 18, 2002 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2003 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 9, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.us.ks |
APPROVAL: | |||
SUMMARY: | -Fiscal Year 2003-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans -KPERS Death and Disability Moratorium |
||
|
The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2003. The rates for fiscal year 2003 will become effective with the on-cycle payroll period beginning June 9, 2002 and ending June 22, 2002 paid July 5, 2002. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for fiscal year 2003.
A moratorium of KPERS Death and Disability Insurance has been established from July 1, 2002 to December 31, 2002. Because of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between July 1, 2002 and December 31, 2002. This procedure will be effective with the pay period beginning June 9, 2002 and ending June 22, 2002 paid July 5, 2002 through the pay period beginning November 24, 2002 and ending December 7, 2002 paid December 20, 2002. Please note that KPERS Death and Disability Insurance for off-cycles is calculated based on pay period end dates, so paycheck adjustments for pay period end dates prior to June 9, 2002 will continue to have the contributions remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between June 9, 2002 and December 7, 2002 even though the agency will not be charged for KPERS Death and Disability contribution. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employees.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to Board of Regents retirement plans members who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(5). K.S.A. 74-4927a(5) specifically requires the "employee" to remit the required contribution while on leave without pay.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. 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 2003.
DB:JJM:rdb
Attachments A, B & C (.pdf)
DATE: | June 18, 2002 | ||
---|---|---|---|
SUBJECT: | Deletions from the Approved List of Providers for Voluntary Tax Sheltered Annuities | ||
EFFECTIVE DATE: | Payroll Period Beginning June 9, 2002 and Ending June 22, 2002, Paid July 5, 2002 | ||
CONTACT: | Earl Brynds | (785) 296-5376 | earl.brynds@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Request From the Kansas Board of Regents to Delete Three Companies from the Approved List of Providers for Voluntary Tax Sheltered Annuities | ||
|
The Kansas Board of Regents has requested removal of the following three companies from the list of 'approved' providers for Voluntary Tax Sheltered Annuities:
Company Code | Company Name |
---|---|
193 | Equitable Variable Life Insurance Company |
508 | Northwestern National Life Insurance Company |
730 | UNUM Cashier's Department |
These VTSA companies have no current subscribers and are deleted effective June 9, 2002 in the SHARP system.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:eb
DATE: | June 25, 2002 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning June 9, 2002 and Ending June 22, 2002, Paid July 5, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.us.ks |
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - Curtis Building Garage | ||
|
Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective July 1, 2002. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $21.18 per bi-weekly pay period with the administrative fee code PKAD05 increasing to $1.62 ($21.18 X .0765). Employees with the Kansas Department of Commerce and Housing and the Board of Accountancy who park in the Curtis Building Garage will see parking deduction codes PKT10B and PPKT10 increased to $10.59 per bi-weekly pay period with the administrative fee code PKAD07 increased to $0.81 ($10.59 X .0765).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | July 9, 2002 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | earl.brynds@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Name Change | ||
|
Payroll Services has been notified of a name change for the Variable Annuity Life Insurance Company (VTSA #769). Effective immediately the name should be changed to AIG Variable Annuity Life Insurance Company.
The vendor table in STARS has been updated to reflect the name change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.
DB:JJM:eb
DATE: | July 16, 2002 | ||
---|---|---|---|
SUBJECT: | New Parking Administrative Fee Deduction Codes | ||
EFFECTIVE DATE: | Payroll Period Beginning June 23, 2002 and Ending July 6, 2002, Paid July 19, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.us.ks |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Administrative Fee Deduction Codes PKAD09 and PKAD10 | ||
|
To facilitate the collection of parking administrative fees for employees of the Department of Agriculture, Ethics Commission, and Conservation Commission that park at the garage at 9th and Quincy, parking administrative fee code PKAD09 has been added. The rate for PKAD09 will be $1.59 ($20.77 * .0765). Code PKAD09 should only be used for employees who are enrolled in parking codes PPKA04, PPKA05, and PPKA06. Code PKAD09 replaces code PKAD05 for only those employees who work for the agencies listed above and who park under the agreements for the 9th and Quincy garage.
Parking administrative fee code PKAD10 has been added for employees of the Department of Aging who park at 412 Jackson and for Animal Health Department employees who park at 7th and Jackson. The rate for PKAD10 will be $0.35 ($4.62 * .0765). Code PKAD10 should only be used for employees who are enrolled in parking codes PPKA01 and PPKA03. Code PKAD10 replaces code PKAD01 for only those employees who work for the agencies listed above and who park under the agreements at either 412 Jackson or at 7th and Jackson.
The Division of Facilities Management will perform the necessary changes to the deduction enrollments in SHARP for employees who are currently parking in the lots discussed above. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | July 18, 2002 | ||
---|---|---|---|
SUBJECT: | Addition of Parking Deduction Codes | ||
EFFECTIVE DATE: | Payroll Period Beginning July 7, 2002 and Ending July 20, 2002, Paid August 2, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.us.ks |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes for agencies that entered into agreements with the 9th and Kansas Garage |
To facilitate the collection of parking fees for employees of the Department of Agriculture, Ethics Commission, Conservation Commission, and Kansas Water Office who park at the 9th and Kansas garage two new parking administrative fee codes and sixteen new parking deduction codes have been added to SHARP.
The two new parking administrative fee codes are PKAD11 ($1.85 bi-weekly deduction ($24.23 * .0765)) and PKAD50 ($2.22 bi-weekly deduction ($29.08 * .0765)).
The following codes should be used for the Department of Agriculture: APKA07 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA57 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA07 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA57 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA07, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA57.
The following codes should be used for the Ethics Commission: APKA08 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA58 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA08 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA58 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA08, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA58.
The following codes should be used for the Conservation Commission: APKA09 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA59 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA09 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA59 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA09, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA59.
The following codes should be used for the Kansas Water Office: APKA10 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA60 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA10 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA60 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA10, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA60.
The Division of Facilities Management will perform the necessary deduction enrollments in SHARP for employees who are covered by the parking agreements. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | August 7, 2002 | ||
---|---|---|---|
SUBJECT: | Revision in the Statutory Definition of "Final Average Salary" for KPERS Contributions | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Revision of Statutory Definition of "Final Average Salary" for KPERS Contributions |
Legislation effective May 23, 2002 revised the statutory definition of "final average salary" for KPERS calculations. Final average salary is either the higher of (a) the high four-year average including add-ons at termination or (b) the high three-year average without add-ons. Previously, the determination of which option to use was based on the member's hire date. New language enacted bases the determination on the member's KPERS membership date. Therefore, KPERS has advised Payroll Services that KPERS retirement contributions should not be withheld from the lump-sum termination payments for vacation leave, sick leave, compensatory time, and holiday compensatory time for employees whose membership date is on or after July 1, 1994.
The SHARP payroll system automatically generates the leave payout earnings codes subject to KPERS withholding (VLN, VLP, SLP, CTP and HTP) on the employees' time and leave records. The codes are correct if the employee's KPERS membership date is prior to July 1, 1994. However, agencies are asked to change the earnings codes on time and leave records for employees whose KPERS membership date is on or after July 1, 1994. The earnings codes that should be used are the five 'No KPERS' payout earnings codes: VLT, VLK, SLK, CTK and HTK. Failure to change the timesheets to reflect the proper payout earnings codes will result in the overwithholding of KPERS deductions and payroll adjustments will be required to correct. Please refer to Attachment A for information regarding the use of these earnings codes.
DB:JJM:kao
DATE: | August 19, 2002 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30 | ||
EFFECTIVE DATE: | August 18, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University Kansas National Education Association, deduction code 'ORG030', will change from $22.00 to $22.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 18, 2002 and ending August 31, 2002, paid September 13, 2002.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 13, 2002.
DB:JJM:kar
DATE: | August 19, 2002 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | September 1, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning September 1, 2002 and ending September 14, 2002, paid September 27, 2002 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.35 or Less | $ 588.00 or Less | $ 6.85 |
ORG002 | $ 7.36 - $ 8.51 | $ 588.80 - $ 680.80 | $ 7.35 |
ORG003 | $ 8.52 - $ 9.39 | $ 681.60 - $ 751.20 | $ 7.85 |
ORG004 | $ 9.40 - $ 10.35 | $ 752.00 - $ 828.00 | $ 8.35 |
ORG005 | $ 10.36 - $ 11.41 | $ 828.80 - $ 912.80 | $ 8.85 |
ORG006 | $ 11.42 or Greater | $ 913.60 - or Greater | $ 9.40 |
ORG888 | KU Medical Center - Nurses | $ 9.40 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $ 7.55 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 27, 2002.
DB:JJM:kar
DATE: | August 29, 2002 | ||
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SUBJECT: | Addition of Parking Deduction Codes | ||
EFFECTIVE DATE: | Payroll Period Beginning August 18, 2002 and Ending August 31, 2002, Paid September 13, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes for the Board of Technical Professions for the Centre City Garage |
To facilitate the collection of parking fees for employees of the Board of Technical Professions who park at the Centre City Garage (9th and Kansas) four new parking deduction codes have been added to SHARP.
The following codes should be used for the Board of Technical Professions: APKA11 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA61 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA11 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA61 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA11, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA61.
The Division of Facilities Management will perform the necessary deduction enrollments in SHARP for employees who are covered by the parking agreements. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | September 10, 2002 | ||
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SUBJECT: | Award Earnings Codes | ||
EFFECTIVE DATE: | September 15, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Award SHARP Earnings Codes and Inactivating Old Codes |
Senate Bill 429 of the 2002 Legislative Session established an employee award and recognition program for state employees. Under this program, monetary or non-monetary awards may be made to state employees. Agencies may select from the following categories when establishing an award and recognition program: distinguished accomplishment, meritorious service, innovations, Kansas quality management, or volunteerism. Agencies are required to recognize employees for the length of service award category. A regulation to this effect is pending.
The total gross value of all monetary and non-monetary awards to a single employee during a fiscal year must not exceed $3500. The award can be paid from Kansas Savings Incentive Program (KSIP) funds.
All monetary awards provided under this program should meet the conditions for a discretionary bonus and thus, not affect the calculation of overtime. Monetary awards are included in taxable gross income and are subject to all applicable taxes and employer contributions. These include federal and state withholding taxes, OASDI, Medicare, Unemployment Compensation Insurance, Workers Compensation Insurance, and State Leave Assessment. Monetary awards are not subject to deductions under the Kansas Public Employees Retirement System (KPERS).
Non-monetary awards are included in taxable gross income and are subject to all applicable taxes and employer contributions (same as monetary awards) unless they can be excluded or partially excluded from income for the following reasons:
- The award is considered a "de minimis fringe benefit" under IRS Code Section 132.
- The award is considered an "employee achievement award" under IRS Code Section 74.
Complete Employee Award and Recognition Program guidelines, procedures, sample forms, and reference book are available on the Division of Personnel Services website located at: http://www.da.ks.gov/ps/subject/award/
The following earnings codes will be added to SHARP effective September 15, 2002, to accommodate this new legislation:
Earns Code | Description | Check Stub |
---|---|---|
DAA | Distinguished Accomplishment Award | Bonus |
INA | Innovation Award | Bonus |
KQA | Kansas Quality Management Award | Bonus |
LNA | Length of Service Award | Bonus |
MSA | Meritorious Service Award | Bonus |
NMA | Non-monetary Taxable Award | Other Remuneration |
One earnings code will be inactivated effective September 15, 2002 due to this legislation:
QBP - Quality Bonus Payment*
*QBP has been unavailable for agency use since July 1, 2002 due to the new legislation passed in SB429.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding and inactivating these earnings codes in the SHARP system. Regents Institutions are responsible for ensuring these earnings codes are available on their individual systems.
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DATE: | September 30, 2002 | ||
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SUBJECT: | SHARP Bi-Weekly Payroll Schedule for January - June 2003 | ||
EFFECTIVE DATE: | Calendar Year 2003 | ||
CONTACT: | Roger Basinger |
(785) 296-5387 |
roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for January - June 2003 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for January through June 2003. The processing schedule is only being produced for the first half of the year due to the implementation of SHARP v8.0 which is planned for the first paycheck issued in Fiscal Year 2004 (July 3, 2003). The implementation of SHARP v8.0 is not anticipated to impact the SHARP processing timelines; however, the Division is waiting on the results of performance and system testing for v8.0 before issuing the SHARP v8.0 processing schedules.
The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period and reflect the extended hours of the on-line SHARP system to 6:00 p.m. Please note, however, that the times for receiving interface files remain unchanged (either 5:00 p.m. or 6:00 a.m.). Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. Time and leave interface agencies, please note that time and leave files for the payroll period ending December 21, 2002 are due Friday, December 20, 2002.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll.
Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payrolls will be issued with the same check/advice date as the SHaRP off-cycle processed the same night.
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attachment: SHARP bi-weekly on-cycle and off-cycle schedules for January through June 2003 (.pdf)
DATE: | October 3, 2002 | ||
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SUBJECT: | 2002 W-2 Form Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | sunni.zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | 2002 W-2 Form Changes To Conform With Software |
The Division of Accounts and Reports wants to make all agencies aware of upcoming changes for the 2002 W-2 forms. As part of our effort to reduce programming costs for updating and maintaining custom programs, the decision was made to use the standard W-2 form that conforms to our human resource/payroll software. This W-2 form will look substantially different from the custom form used in the past. The form is one page, has four parts, and will be pressure sealed. The four parts to the W-2 form will provide the employee with four copies of the W-2: one copy to be used for federal taxes, one copy for the employee to keep, and two copies that can be used for state or local taxes. A sample copy of the 2002 W-2 is attached.
Address
One change that should be noted is the address that will be used for mailing the W-2 forms. If an employee has a mailing address on the SHARP panel Personal Data 1, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. In the past, home address was always used for the W-2 form. Since the majority of employees do not have a mailing address and the home address will continue to be used when the mailing address is blank, this change does not affect a large number of employees. On October 18, 2002, we will send agencies a listing of their employees who have a mailing address. Each agency will be asked to verify the information with their employee records and make any necessary changes by December 20, 2002. Not all agencies have employees with mailing addresses; therefore, some agencies will not receive a listing.
Earnings Summary
The W-2 form used in the past provided the employee with an earnings summary that showed calculations for the federal, state, social security, and Medicare grosses. The earnings summary is not available using the standard functionality provided by our software. The on-line payroll report KPAY318 is available to agency personnel/payroll staff and may assist you with answering employee requests for more detail regarding their W-2 amounts. This report is available through SHARP using the path Go / Compensate Employees / Maintain Payroll Data U.S. / Report / Year To Date Balances. Employee ID and year are required to run this report. There will be an informational circular released at the time of the mailing of the 2002 W-2 forms that will provide your agency with an explanation of calculations to assist you with employee inquiries.
Agency questions regarding these changes can be directed to Sunni Zentner.
Attachment: Image of new W2 form
DATE: | October 4, 2002 | ||
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SUBJECT: | New Vision Provider for Group Health Insurance - Board of Regents Institutions | ||
EFFECTIVE DATE: | Payroll Period Beginning December 8, 2002 and Ending December 21, 2002, Paid January 3, 2003 | ||
CONTACT: | Elaine Harris | (785) 296-7458 | elaine.harris@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Vision Provider for Group Health Insurance |
The Health Care Commission approved a new vision provider for plan year 2003. Superior Vision will replace Vision Service Plan. A basic and enhanced plan will continue to be offered. Deduction code and funding information is as follows:
Superior Vision, Basic Plan: plan type 14, deduction codes SVLOAT/SVLOBT
STARS funding file - fund 7700, index 9704
Superior Vision, Enhanced Plan: plan type 14, deduction codes SVHIAT/SVHIBT
STARS funding file - fund 7700, index 9706
Note: The vision plans have no employer contribution.
Regents institutions are responsible for ensuring these changes are reflected in their individual systems. Note: there are no changes to the DA175-176 files.
The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 02-P-007 dated August 24, 2001. All changes listed above are incorporated in this document.
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Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | October 4, 2002 | ||
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SUBJECT: | Key Payroll Processing Dates in November 2002 | ||
EFFECTIVE DATE: | November 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2002 holidays. |
Monday, November 11, 2002 (Veterans Day), Thursday, November 28, 2002 and Friday, November 29, 2002 (Thanksgiving Holiday) are designated holidays for state service in 2002. Due to the holidays in November, variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. The schedule also reflects the extended hours of the on-line SHARP system to 6:00 p.m. Please note that the times for receiving interface files remains unchanged (either 5:00 p.m. or 6:00 a.m.).
Friday, November 8, 2002
Payday for the payroll period ending October 26, 2002.
Time and leave interface agencies must have time and leave files for the period ending November 9, 2002 submitted to the Department of Administration for processing by 5:00 PM on November 8, 2002 (these files would normally be due Monday).
Paper agencies time and leave documents for the pay period ending November 9, 2002 are due to Payroll Services by 5:00 PM on November 8, 2002.
Regents' Run C off-cycle payroll files for the period ending October 26, 2002 must be received by the Department of Administration by 5:00 PM on November 8, 2002.
Monday, November 11, 2002
(Veterans Day Holiday)
Tuesday, November 12, 2002
Paysheets for the on-cycle payroll for the period ending November 9, 2002 will be created on Tuesday, November 12, 2002. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 12, 2002 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 9, 2002 will also occur November 12, 2002; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM.
The Run C off-cycle for the period ending October 26, 2002 will be processed November 12, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 15, 2002.
Wednesday, November 13, 2002
The second on-cycle preliminary pay calculation for the period ending November 9, 2002 will occur November 13, 2002.
Thursday, November 14, 2002
The third on-cycle preliminary pay calculation for the period ending November 9, 2002 will occur November 14, 2002.
Friday, November 15, 2002
Regents' on-cycle payroll files for the period ending November 9, 2002 are due to the Department of Administration by 6:00 AM on November 15, 2002.
Final pay confirmation for the on-cycle payroll for the period ending November 9, 2002 will occur November 15, 2002. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 15, 2002 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 15, 2002 in order to be reflected in the final paycheck created for the employee.
Regents' Run A off-cycle payroll files for the period ending November 9, 2002 must be received by the Department of Administration by 5:00 PM on November 15, 2002.
Monday, November 18, 2002
The Run A off-cycle for the period ending November 9, 2002 will be processed November 18, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 22, 2002.
Tuesday, November 19, 2002
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 9, 2002 will be posted to STARS during Tuesday night's STARS batch processing cycle.
Regents' Run B off-cycle payroll files for the period ending November 9, 2002 must be received by the Department of Administration by 5:00 PM on November 19, 2002 in order to be processed on Wednesday, November 20, 2002.
Wednesday, November 20, 2002
The Run B off-cycle for the period ending November 9, 2002 will be processed November 20, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 25, 2002.
Friday, November 22, 2002
Payday for the payroll period ending November 9, 2002.
Time and leave interface agencies must have time and leave files for the period ending November 23, 2002 submitted to the Department of Administration for processing by 5:00 PM on November 22, 2002 (these files would normally be due Monday).
Paper agencies time and leave documents for the pay period ending November 23, 2002 are due to Payroll Services by 5:00 PM on November 22, 2002.
Regents' Run C off-cycle payroll files for the period ending November 9, 2002 must be received by the Department of Administration by 5:00 PM on November 22, 2002.
Monday, November 25, 2002
The Run C off-cycle for the period ending November 9, 2002 will be processed November 25, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated December 2, 2002.
The first on-cycle preliminary pay calculation for the period ending November 23, 2002 will also occur November 25, 2002; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 23, 2002.
Tuesday, November 26, 2002
The second on-cycle preliminary pay calculation for the period ending November 23, 2002 will occur November 26, 2002.
Wednesday, November 27, 2002
Final pay confirmation for the on-cycle payroll for the period ending November 23, 2002 will occur November 27, 2002 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 27, 2002 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 27, 2002 in order to be reflected in the final paycheck created for the employee.
Regents' on-cycle payroll files for the period ending November 23, 2002 are due to the Department of Administration by 6:00 AM on November 27, 2002.
Regents' Run A off-cycle payroll files for the period ending November 23, 2002 must be received by the Department of Administration by 5:00 PM on November 27, 2002.
Attached is a calendar for the month of November 2002, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). If you are not a subscriber to the SHARP Infolist, on-line users should review the SHARP message panel or web site daily to determine if new messages have been added. Paper-users will be notified of any changes to these dates via telephone. To subscribe to the Infolist and receive notification of messages posted to the SHARP message panel, go to: http://www.da.ks.gov/sharp/infolist.htm.
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Attachment: Payroll Processing Calendar - November 2002 (.pdf)
DATE: | October 8, 2002 | ||
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SUBJECT: | Change in Organization Dues Deduction for Fort Hays State University-FOP #48 | ||
EFFECTIVE DATE: | October 13, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG048 |
The organization dues for members of the Fort Hays State University FOP, deduction code 'ORG048', will change from $10.00 to $15.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning October 13, 2002 and ending October 26, 2002, paid on November 8, 2002.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after November 8, 2002.
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DATE: | October 24, 2002 | ||
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SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $87,000 effective January 1, 2003 |
The Social Security wage base for OASDI will be $87,000 for calendar year 2003. This is a $2,100 increase from the 2002 wage base of $84,900. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2003 will be $5,394.00. There continues to be no limit on wages subject to the Medicare tax in 2003. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,394.00 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | October 24, 2002 | ||
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SUBJECT: | Voluntary Tax Sheltered Annuity Company Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Name Change |
Payroll Services has been notified that ReliaStar Northern Life Insurance Company (VTSA #506) is now ReliaStar Life Insurance Company. The payment address is unchanged. Effective immediately remittances must be mailed to:
ReliaStar Life Insurance Company
PO Box 5060
Minot, ND 58702-5060
Vendor number 410451140-02 in STARS has been updated to reflect this address change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | October 30, 2002 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Payroll Services has been notified that the address for Anchor National Life Insurance Company (VTSA #059) has changed. Effective immediately remittances must be mailed to:
Anchor National Life Insurance Company
PO Box 100330
Pasadena, CA 91189-0001
Vendor number 860198983-08 in STARS has been updated to reflect this address change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | November 15, 2002 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned Vehicles | ||
EFFECTIVE DATE: | January 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2003 |
The Internal Revenue Service (IRS) has decreased the mileage rate from 36.5 cents (for 2002) to 36 cents (for 2003) under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned vehicle. The new rate becomes effective January 1, 2003. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 36 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicles total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2003 and the agency wishes to use the Cents-Per-Mile method, please contact Payroll Services for the 'luxury' vehicle definition. Agencies and employees are also reminded that the only personal use of a state vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.
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DATE: | November 25, 2002 | ||
---|---|---|---|
SUBJECT: | New Tables for Federal Withholding Tax for 2003 | ||
EFFECTIVE DATE: | January 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 2003. |
The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 2003. In addition, the value for one withholding exemption changes to $3050.00 per year in calendar year 2003.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 2003. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 2002 must file a new W-4 form for calendar year 2003 if they wish to continue their exempt status.
Employees may be eligible for the withholding tax exempt status if the following criteria are met:
- The employee had no income tax liability in the previous year; and
- The employee anticipates no income tax liability in the upcoming year.
Additionally, IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit, for income earned in the United States, to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 2002 must file a new 8233 form for calendar year 2003 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Department of Administration will be updating the SHARP federal and state tax data records on December 16, 2002, for all employees currently claiming exemption from withholding; the tax data record updates will be effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exemption from withholding for calendar year 2003. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exemption from withholding in 2003. The new tax data row should be effective January 2, 2003. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
A new-effective dated row will also be added in the SHARP federal tax data records on December 16, 2002 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2003. The new tax data row will be dated January 1, 2003. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2003 has been submitted.
The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose withholding tax status was updated on December 16, 2002. This listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: Schedule A
DATE: | November 25, 2002 | ||
---|---|---|---|
SUBJECT: | 2002 Calendar Year-End Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Schedule for Processing Transactions During 2002 Calendar Year-End | ||
|
As 2002 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2002 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2002 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2003 balances; a corrected W-2 (Form W-2C) for 2002 will not be issued for the employee involved.
FINAL 2002 PAYCHECK
The final on-cycle paychecks for calendar year 2002 will be issued December 20, 2002. Paychecks will be mailed on December 19, 2002 and advices will be mailed on December 18, 2002. The final off-cycle paychecks for calendar year 2002 will be issued on December 27, 2002 for the off-cycle processed on December 23, 2002.
PAYCHECK REVERSALS
Any 2002 paychecks that are undeliverable should be reversed as soon as possible. After proper authorization SHARP agencies have until 6:00 p.m. on December 23, 2002 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', for any paycheck reversals by 12:00 noon on December 23, 2002. Any reversal requests entered/received after the 6:00 p.m./12:00 noon deadline on December 23, 2002 will update calendar year 2003 balances and will not be reflected in the employee's 2002 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 23, 2002 to enter paycheck adjustment requests for any 2002 paychecks. Adjustments processed in the December 23, 2002 off-cycle payroll will be reflected on the employee's 2002 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2002 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 16, 2002. The December 16, 2002 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2002 for inclusion in the December 23, 2002 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2002 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2002 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 23, 2002 which are adjusting paychecks issued prior to January 1, 2003 will not result in a W-2C; the adjustment will update the employee's 2003 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 23, 2002 will update the employee's 2003 payroll balances.
REGENTS' INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 7, 2002, paid December 20, 2002 are due to the Department of Administration by 6:00 am on December 13, 2002.
REGENTS' INSTITUTIONS: OFF-CYCLE FILES
2002 Paycheck Reversals
Regent Institutions must submit all transmittals for 2002 paycheck reversals by 5:00 p.m. on Friday, December 20, 2002 in order to update the employee's 2002 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2003 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2003 submitted after 5:00 pm on December 20, 2002 should default the pay adjust check date to January 1, 2003.
2002 Adjustments and Supplementals
In order to update employee balances for 2002, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 20, 2002. The off-cycle for the pay period ending December 7, 2002 generated on the night of Monday, December 23, 2002 will have a check issue date of December 27, 2002; all activity for this off-cycle will be reflected in the employees' 2002 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2002 date.
2003 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2003, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 20, 2002, will be considered to be 2003 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2003 business, the employee's 2003 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2003 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2003, agencies should default the pay adjust check date to January 1, 2003).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2003, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2003 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2003 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments which contain a prior year indicator of 'P' will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2002 deadline will not be processed until the January 27, 2003 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 20, 2003. The deadline for submitting payroll interface files for the January 27, 2003 off-cycle is 5:00 p.m. on January 24, 2003.
GENERAL REMINDERS
United Way
The deduction END date on the general deduction panel for 2002 United Way contributions should be dated between December 8, 2002 and December 21, 2002 in order for the last 2002 deduction to be taken on the paycheck issued December 20, 2002. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2003, agencies can enter a new row effective-dated between December 8, 2002 and December 21, 2002 in order for the first deduction for 2003 to be taken on the January 3, 2003 paycheck. If the 2003 deduction is to be taken over 26 pay periods, a deduction end date of December 7, 2003 should be entered.
Tax Information
The Department of Administration will be updating the SHARP federal and state tax data records on December 16, 2002, for all employees currently claiming exemption from withholding; the tax data record updates will be effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exemption from withholding for calendar year 2003. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exemption from withholding in 2003. The new tax data row should be effective January 2, 2003. To ensure that no federal tax withholding occurs on the January 3, 2003 paycheck, the tax data row dated January 2, 2003 should be entered between December 16, 2002 and December 27, 2002. The Division of Accounts and Reports will provide a listing to agencies which will identify all employees whose withholding tax status was updated on December 16, 2002. The listing will include the department, employee ID, name, SSN, and withholding exempt status.
A new-effective dated row will also be added in the SHARP federal tax data records on December 16, 2002 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2003. The new tax data row will be dated January 1, 2003. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2003 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will also update existing SHARP federal tax data records on December 16, 2002 for all employees claiming the Earned Income Credit in 2002 to reflect the Earned Income Credit status of 'Not applicable'. The tax record updates are effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the Earned Income Credit in calendar year 2003; paper agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the Earned Income Credit in 2003. To ensure that the Earned Income Tax Credit occurs on the January 3, 2003 paycheck, the tax data row dated January 2, 2003 should be entered between December 16, 2002 and December 27, 2002. The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose Earned Income Credit status was updated in SHARP on December 16, 2002. The listing includes department, employee ID, name, SSN, and EIC exempt status.
The 2002 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.
Deduction Information
All deductions for calendar year 2003 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second paydates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
- Long Term Care: monthly, deducted on the first paydate of the month.
- Optional Group Life Insurance: monthly, deducted on the second paydate of the month.
Arrearages/Advances
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 23, 2002 (December 16, 2002 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. Any arrearage collections made by personal reimbursement that are collected after December 13, 2002, and prior to December 23, 2002, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2002 W-2.
One of the changes implemented at the time of the v7.0 SHARP upgrade is the advance ('ADV') earnings being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 2002 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 7, 2002 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 20, 2002 (i.e., on-cycle for the payroll period ending December 7, 2002) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2002 Form W-2.
W-2s
As noted in Informational Circular No. 03-P-014 dated October 3, 2002, one change that should be noted is the address that will be used for mailing the W-2 forms. If an employee has a mailing address on the SHARP panel Personal Data 1, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. In the past, home address was always used for the W-2 form. If a mailing address is deleted in Administer Workforce/Personal Data go to maintain Payroll Data/Payroll Data and click on the home address radio button. Since the majority of employees do not have a mailing address and the home address will continue to be used when the mailing address is blank, this change does not affect a large number of employees. Please make any name, address, or social security number changes to this panel by 5:00 pm on December 27, 2002 to guarantee the updated information is included in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between December 27, 2002 and January 15, 2003.
Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 27, 2002.
W-2 forms will be mailed on or before January 31, 2003. A message will appear on the SHARP message panel to advise agencies of the W-2 mailing date in January.
December Calendar
Attached is a calendar for the month of December 2002 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 03-P-013, dated September 30, 2002. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHRP web site (http://www.da.ks.gov/sharp/). On-line agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.
DB:JJM:rdb
Attachment: December 2002 Payroll Calendar (.pdf)
DATE: | November 25, 2002 | ||
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SUBJECT: | Increase in Parking Fees for the Garage at 512 Jackson in Topeka | ||
EFFECTIVE DATE: | Payroll Period Beginning November 10, 2002 and Ending November 23, 2002, Paid December 6, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for the Garage at 512 Jackson in Topeka - Payroll Deduction Codes PPKA02, APKA02, PKAD04 | ||
|
Due to the increase in parking fees by the City of Topeka, payroll deduction codes PPKA02 (pre-tax parking) and APKA02 (after tax parking) are being increased to $13.85 per bi-weekly payroll period. This increase will impact Department on Aging employees who park at the Garage at 512 Jackson in Topeka. In addition, parking administrative fee code PKAD04 (employer rate) will increase to $1.06 per bi-weekly payroll period. The rate increase is effective for the pay period ending November 23, 2002, paid December 6, 2002.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | December 2, 2002 | ||
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SUBJECT: | Missouri State Withholding | ||
EFFECTIVE DATE: | January 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Change in Missouri State Withholding Tax Formula for 2003 | ||
|
The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2003. The following table is a list of current filing statuses and the standard deduction for 2003.
Filing Status | Standard Deduction |
---|---|
Single | $4,750.00 |
Married and spouse works | $3,975.00 |
Married and spouse does not work | $7,950.00 |
Head of Household | $7,000.00 |
For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4, no deduction for allowances two through four, and then $1,200.00 per allowance for allowances five and greater. Please note that allowances two through four are not allowed using the withholding tax formula; however, allowances two through four are still used for employers using the withholding tax tables. Please find attached copies of the 2003 Missouri Withholding Tax Formula and MO W-4 for your information.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.
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Attachments: 2003 Missouri Withholding Tax Formula (.pdf) and MO W-4 (.pdf)
DATE: | December 3, 2002 | ||
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SUBJECT: | Deduction and Earnings Information | ||
EFFECTIVE DATE: | Pay Period Beginning December 8, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | End of Moratorium on Employer's Contributions for KPERS Death and Disability Insurance and Inactivating SHARP Earnings Codes | ||
|
The moratorium on KPERS Death and Disability Insurance employer contributions will expire as of December 31, 2002. As a result, the Division of Accounts and Reports will again begin collecting and remitting KPERS Death and Disability contributions effective with the pay period beginning December 8, 2002 and ending December 21, 2002, paid January 3, 2003.
Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP in General Deduction Data for new employees so that the proper contribution amount is calculated (Go, Compensate Employees, Maintain Payroll Data U.S., Use, General Deduction Data). Attached is a schedule listing the percentage rates for employee/employer retirement plan contributions, updated with the Death and Disability Insurance Contribution rates and 'GTL' codes.
Also, earnings codes 'NGS-National Guard Subsistence' and 'HOB-Holiday Comp-Bank-FLSA' will be inactivated effective with the pay period beginning December 8, 2002 and ending December 21, 2002, paid January 3, 2003. These earnings codes cannot be entered on timesheets for pay periods ending after December 7, 2002. Paychecks that contain an inactive code cannot be adjusted through the reversal/adjustment process, as payroll error messages will result. In these situations, the adjustment request should be submitted to Accounts & Reports, Payroll Section on a form DA-180, Paycheck Reversal/Supplemental/Adjustment.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are made in their respective systems prior to December 21, 2002.
Attachment (.pdf)
DATE: | December 10, 2002 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Name and Address Changes |
Payroll Services has been notified of an address change for INVESCO Funds Group (VTSA #835) and an address and name change for Pioneer Group, Inc. (VTSA #821). Pioneer Group, Inc. is now named Pioneer Investment Management Services (PIMSS). Effective immediately remittances must be mailed as follows:
INVESCO Funds Group
P.O. Box 173706
Denver, Co 80217-9126
Pioneer Investment Management Services (PIMSS)
Attn. Group Plans Department
P.O. Box 55150
Boston, MA 02205
Vendor numbers 840235630-00 (INVESCO Funds Group) and 042890696-00 (Pioneer Investment Management Services) in STARS have been updated to reflect the address changes.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.
DB:JJM:kao
DATE: | December 13, 2003 | ||
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SUBJECT: | New Tables for Earned Income Credit for 2003 | ||
EFFECTIVE DATE: | January 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 2003 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 2003. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2003. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.
The Internal Revenue Service has released the 2003 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2003 Form W-5 is attached; the 2002 Form W-5 expires on December 31, 2002. The 2003 Form W-5 must be filed with the employer before advance 2003 payments can begin. Generally, employees have to successfully answer questions listed on page 2 on Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2003 earned and adjusted gross income will each be less than $29,666.00 for single employees or $30,666.00 if filing jointly (include spouses income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the EIC for 2003 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2003.
The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.
The Department of Administration will update the existing SHARP federal tax data records on December 16, 2002, for all employees claiming the EIC in 2002 to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates are effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 2003; paper agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 2003. The new tax dated row should be added effective January 2, 2003 and will need to be entered into SHARP by 6:00 p.m. on Friday, December 27, 2002 in order to be reflected in the on-cycle paycheck dated January 3, 2003. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information.
The Division of Accounts and Reports will provide a listing to agencies which identifies all SHARP employees whose EIC status was updated in SHARP on December 16, 2002. The listing includes department, employee ID, name, SSN, and EIC exempt status.
The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regent's institutions are responsible for implementing the new EIC rates in their respective payroll systems.
DB:JJM:rdb
Attachment: Advanced Earned Income Credit Formulas
W-5 Earned Income Credit Advance Payment Certificate (.pdf)
DATE: | December 17, 2002 | ||
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SUBJECT: | New Payroll Deduction Codes for Parking State Parking Lot 3 at 1020 S Kansas, Topeka | ||
EFFECTIVE DATE: | Payroll Period Beginning December 8, 2002 and Ending December 21, 2002, Paid January 3, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKT03, PKT03B, PPKTR3, and PKTR3B |
To facilitate the collection of parking fees for State Parking Lot 3, located at 1020 S. Kansas, payroll deduction codes PPKT03 (pre-tax parking, non-reserved), PKT03B (after-tax parking, non-reserved), PPKTR3 (pre-tax parking, reserved), and PKTR3B (after-tax parking, reserved) have been added to SHARP effective December 8, 2002. The employee deduction for the non-reserved spaces (codes PPKT03 and PKT03B) will be $6.92 per bi-weekly payroll period. The employer rate for the non-reserved spaces, payroll deduction code PKAD01 (which is already established), will be $0.53 (.0765 X $6.92) per bi-weekly payroll period. The employee deduction for the reserved spaces (codes PPKTR3 and PKTR3B) will be $8.08 per bi-weekly payroll period. The employer rate for the reserved spaces, payroll deduction code PKADR1 (which is already established) will be $0.62 (.0765 X $8.08).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | December 20, 2002 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2003 | ||
EFFECTIVE DATE: | January 1, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
Sunni Zentner | (785) 296-7058 | sunni.zentner@da.state.ks.us | |
APPROVAL: | |||
SUMMARY: | 2003 Deferred Compensation and Voluntary Tax Sheltered Annuity Changes |
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Voluntary Tax Sheltered Annuity (VTSA) limits will increase effective January 1, 2003 as follows:
457(b) Deferred Compensation:
The Deferred Compensation annual contribution limit increases from the lesser of $11,000 or 100% of includible compensation (2002 calendar year limit) to the lesser of $12,000 or 100% of includible compensation (2003 calendar year limit).
The Deferred Compensation special catch-up limit increases from $22,000 (2002 calendar year limit) to $24,000 (2003 calendar year limit). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit from $12,000 (2002 calendar year limit) to $14,000 (2003 calendar year limit).
Please note, the two different catch-up provisions cannot be used concurrently.
403(b) Voluntary Tax Sheltered Annuity (VTSA):
The limit on annual contributions for Tax Sheltered Annuities is the lesser of 100% of includible compensation or $40,000.
The contribution limit used for calculating mandatory employee and employer
contributions remains at $200,000 for calendar year 2003.
The limit on elective deferral will increase from $11,000 (2002 calendar year limit) to $12,000 (2003 calendar year limit).
The catch-up provision for participants who are 50 years of age or older increases the elective deferral limit from $12,000 (2002 calendar year limit) to $14,000 (2003 calendar year limit).
Additionally, there is a 15-year catch-up provision which may allow employees with 15 or more years of service to contribute up to an additional $3,000 annually.
Employees may be able to use both the age 50 and 15-year catch-up provisions at the same time.
The Act repeals the coordination requirements for employees who participate in both a 457(b) - Deferred Compensation Plan and a 403(b) - Tax Sheltered Annuity plan. Employees eligible for both plans will be able to defer the full amount to both plans.
Regent's institutions are responsible for applying the maximum VTSA formulas for their employees.
DB:JJM:rdb
DATE: | December 20, 2002 | ||
---|---|---|---|
SUBJECT: | Increase in Parking Fees for the Centre City Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning December 8, 2002 and Ending December 21, 2002, Paid January 3, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Increase in Parking Fees for the Centre City Garage at 9th and Kansas in Topeka |
To facilitate the increase in parking fees by the City of Topeka, the following payroll deduction codes for parking in the Centre City Garage will increase as follows:
Non-reserved parking deduction codes APKA07, PPKA07 (Department of Agriculture); APKA08, PPKA08 (Ethics Commission); APKA09, PPKA09 (Conservation Commission); APKA10, PPKA10 (Kansas Water Office); and APKA11, PPKA11 (Board of Technical Professions) will increase from $24.23 to $25.38 per bi-weekly period.
Reserved parking deduction codes APKA57, PPKA57 (Department of Agriculture); APKA58, PPKA58 (Ethics Commission); APKA59, PPKA59 (Conservation Commission); APKA60, PPKA60 (Kansas Water Office); and APKA61, PPKA61 (Board of Technical Professions) will increase from $29.08 to $30.46 per bi-weekly period.
In addition, parking administrative fee code PKAD11 will increase from $1.85 to $1.94 ($25.38 X .0765) per bi-weekly period, and parking administrative fee code PKAD50 will increase from $2.22 to $2.33 ($30.46 X .0765) per bi-weekly period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | January 6, 2003 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2002 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
Debbie Esquibel | (785) 368-6313 | Debbie.Esquibel@da.state.ks.us | |
Payroll Services Fax Number (785) 291-3399 | |||
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2002 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2002 W-2 Wage and Tax Statement for each employee of your agency. Agencies that are on-line users of SHARP will find the report in your agency mailbox on the MVS dated December 27, 2002. The KTXPR55 listing will be distributed to paper user agencies via the normal report distribution process.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2002 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2002 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
Agencies are reminded that in an effort to reduce programming costs for updating and maintaining custom programs in SHARP, the decision was made to use the standard W-2 form, which conforms to our SHARP software. The standard W-2 form is substantially different from the custom W-2 form used in past years. The new W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressured sealed.
Please note that the IRS has reported an error on the 2002 Form W-2 in the 'Earned Income Credit (EIC)' paragraph in the Notice to Employee on the back of Copy B. The Notice does not contain the income limitations for the married filing jointly status. Agencies should notify all employees who participated in EIC for 2002 about this error. The paragraph should read as follows:
You may be able to take the EIC for 2002 if (a) you do not have a qualifying child and you earned less than $11,060.00 ($12,060.00 if married filing jointly), (b) you have one qualifying child and you earned less than $29,201.00 ($30,201 if married filing jointly), or (c) you have more than one qualifying child and you earned less than $33, 178.00 (34,178.00 if married filing jointly). You and any qualifying children must have valid Social Security Numbers (SSNs).
The mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. In the past, the employee's home address has always been used for the W-2. This change will not impact a large number of employees, since most employees do not have a mailing address, and the W-2 will be mailed to the employee's home. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2002 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 16, 2003. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2002 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
Duplicate laser printed W-2's for calendar year 2002 will be printed for distribution to the agencies on each Monday, beginning February 3, 2003 and continuing through April 14, 2003. The agencies are requested to submit one blanket request for duplicate 2002 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests for 2002 W-2's should include each employee's name and employee ID and the list should be sorted by last name. Requests for duplicate W-2's for years prior to 2002 should be submitted separately and should also include the employee's SSN as well as name and employee ID. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services. (See Page 1 for telephone, e-mail, and fax information.)
The W-2 form used in past years provided the employee summary, which showed calculations for federal, state, social security, and Medicare grosses. This summary is no longer available using the standard functionality provided by our software. Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms.
In addition, on-line agencies may also consider utilizing the SHARP KPAY318, "Year to Date Balances" report to assist in answering W-2 related questions. The report is available through SHARP using the path: Go / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. This report provides year-to-date balances for earnings, deductions, and taxes for one employee. A sample of this report is included as Attachment B. The earnings total listed on the report includes those earnings types in which the Adds to Gross indicator is Y. The deductions balances section of the report only includes those deductions with the deduction class of A (after-tax), B (before-tax), and T (taxable benefit). Deduction balances with the deduction class of N (non-taxable benefit) will not be included on the report since they represent employer contributions. The report can only be requested for employees with a current job record in your department. Agencies will not be able to request this report for someone who does not have a current job record with your agency. If you need this report for a former employee, or if you are a paper user, you may submit a request for this report to Debbie Esquibel or Sunni Zentner. (See Page 1 for telephone, e-mail, and fax information.) If you do not currently have the Reports menu under Maintain Payroll Data U.S., you will need to complete an Agency Security Selection form that can be printed from the SHARP Web site at http://www.da.ks.gov/sharp/documents. Agency technical staff will need to download the sqr for this report. The instructions for downloading can be found at the SHARP web site: http://www.da.ks.gov/sharp/downloads.htm. <------- Broken link
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Attachments: | 2002 W-2 Wage and Tax Statement Calculations (.pdf) |
---|---|
Image of KPAY318(print page for better readability) |
DATE: | January 6, 2003 | ||
---|---|---|---|
SUBJECT: | 2003 W-2 Production Reports | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | Sunni.Zentner@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | 2003 W-2 Production Reports to be Run Throughout the Year |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2003 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2003 W-2 production reports are scheduled to be generated:
- Friday, February 14, 2003
- Friday, March 14, 2003
- Friday, April 11, 2003
- Friday, May 9, 2003
- Friday, June 6, 2003
- Thursday, July 3, 2003
- Friday, August 1, 2003
- Friday, August 29, 2003
- Friday, September 26, 2003
- Friday, October 24, 2003
- Friday, November 7, 2003
- Friday, November 21, 2003
- Friday, December 5, 2003
- Wednesday, December 17, 2003
- Monday, December 22, 2003
- Friday, December 26, 2003 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency directory on the first working day following the above listed scheduled dates. Agencies should access the TAX910ER through Rapid Filer to review the report; a copy of the TAX910ER will be distributed to paper agencies. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2's for 2003 are complete, a final KTXPR55 report will be generated for each agency's information and review.
In addition, the Regent's institutions will receive the report KTAX900 in their agency directory. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
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DATE: | January 23, 2003 | ||
---|---|---|---|
SUBJECT: | Savings Bonds Holding Periods | ||
EFFECTIVE DATE: | February 1, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | Janice.Wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Minimum Holding Period for Series EE and I Savings Bonds is being extended to 12 months |
The Federal Reserve Bank of Kansas City has notified Payroll Services that effective February 1, 2003 the holding period for newly issued Series EE and I U.S. Savings Bonds will be extended from six months to 12 months. Therefore, Series EE and I Savings Bonds with a February 2003 or later issue date cannot be redeemed until they are at least 12 months old. In addition, Series EE Savings Bonds with a February 2003 or later issue date cannot be exchanged for Series HH Savings Bonds until they are 12 months old. Although the extension of the holding period pertains to both Series EE and I Savings Bonds, agencies are reminded that only Series EE Savings Bonds are available through payroll deduction for State of Kansas employees. The information concerning the I Bonds is being shared for those employees who purchase I Bonds through some other mechanism.
Employees who have questions concerning this change are encouraged to visit the www.savingsbonds.gov web site or to contact the Kansas City Savings Bond Department at (800) 333-2919.
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DATE: | March 10, 2003 | ||
---|---|---|---|
SUBJECT: | KPERS Death and Disability Insurance Contributions | ||
EFFECTIVE DATE: | April 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2003 to June 30, 2003 |
HB 2026, passed in the 2003 legislative session and published in the Kansas Register on Thursday, March 6, 2003, suspends employer contributions for KPERS Death and Disability Insurance from April 1, 2003 to June 30, 2003. As a result of this legislation, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check issue date between April 1, 2003 and June 30, 2003. This moratorium will start effective with the pay period beginning March 16, 2003 and ending March 29, 2003, paid April 11, 2003. The moratorium will continue through the payroll period beginning May 25, 2003 and ending June 7, 2003, paid June 20, 2003. Please note that the KPERS Death and Disability Insurance contribution for off-cycle payrolls is calculated based on pay period end dates, so paycheck adjustments processed after April 1, 2003 for pay period end dates prior to March 29, 2003 will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between March 16, 2003 and June 7, 2003, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to Board of Regents retirement plans members who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(5). K.S.A. 74-4927a(5) specifically requires the "employee" to remit the required contribution while on leave without pay.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to April 1, 2003.
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DATE: | March 11, 2003 | ||
---|---|---|---|
SUBJECT: | Optional Group Life Insurance Rate Changes | ||
EFFECTIVE DATE: | July 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Optional Group Life Insurance Rate Changes |
Please be advised that effective with coverage for the month of July, 2003, the Optional Group Life Insurance rates are changing as follows:
Age at the Beginning of the Calendar Year |
Monthly Premium per $1,000 |
---|---|
Under 30 | $0.06 |
30-34 | $0.08 |
35-39 | $0.10 |
40-44 | $0.14 |
45-49 | $0.20 |
50-54 | $0.34 |
55-59 | $0.51 |
60-64 | $0.74 |
65-69 | $1.27 |
70-74 | $2.06 |
75 and Older | $3.31 |
An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available will continue to be $200,000.00.
The new rates are effective with coverage for the month of July. Therefore, the July 18, 2003 paycheck (paycheck issued for the payroll period ending July 5, 2003) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month's coverage.
Along with the premium rate change, there is also a change to the age calculation for purposes of optional group life insurance. Currently, age is calculated based on the employee's attained age as of the payroll period. Effective with the new premium rates, age will be calculated based on the employee's attained age as of January 1st of the current calendar year.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to July 1, 2003.
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DATE: | April 22, 2003 | ||
---|---|---|---|
SUBJECT: | Change in Organizational Dues Deduction Amounts for AFSCME Council 72 | ||
EFFECTIVE DATE: | Payroll Period Beginning April 27, 2003 and Ending May 10, 2003, Paid May 23, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, 1469, 1715 and 3371 |
Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Locals 1270 (ORG270), 1357 (ORG357), 1469 (ORG469), and 1715 (ORG715) will be increased to $11.46. In addition, the dues for Local 3371 (ORG371) will be increased to $13.82. Therefore, the organizational dues deduction amounts for the AFSCME locals will be as follows effective with the on-cycle paychecks dated May 23, 2003:
Deduction Code | Union | Dues Deduction |
---|---|---|
ORG270 | Local 1270 | $11.46 |
ORG357 | Local 1357 | $11.46 |
ORG371 | Local 3371 | $13.82 |
ORG469 | Local 1469 | $11.46 |
ORG715 | Local 1715 | $11.46 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | May 6, 2003 | ||
---|---|---|---|
SUBJECT: | Change in Organizational Dues Deduction for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES) | ||
EFFECTIVE DATE: | Payroll Period Beginning May 11, 2003 and Ending May 24, 2003, Paid June 6, 2003 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | janice.wolfley@state.ks.us |
APPROVAL: | |||
SUMMARY: | Organizational Dues Change for ORG980 |
The organizational dues for members of the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES), deduction code 'ORG980', will change from $1.54 to $2.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning May 11, 2003 and ending May 24, 2003, paid June 6, 2003.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after June 6, 2003.
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DATE: | May 9, 2003 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedules for June-December 2003 | ||
EFFECTIVE DATE: | June 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for June - December 2003 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for June through December 2003. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period and the SHARP v8.0 conversion. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates and times indicated on the attached schedules to ensure timely issuance of pay for their employees.
Please note the following changes to the June 2003 processing schedule due to the SHARP v8.0 conversion:
- SHARP paper agencies must have their timesheets for the pay period ending June 7, 2003 to the Division of Accounts and Reports, Payroll Services by 5:00 p.m. on June 5, 2003.
- SHARP interface users must have their interface files for the pay period ending June 7, 2003 to the Division of Accounts and Reports, Payroll Services by 5:00 p.m. on June 6, 2003.
- The first preliminary on-cycle payroll calculation for the pay period ending June 7, 2003 will occur on June 9, 2003.
- The second preliminary on-cycle payroll calculation for the pay period ending June 7, 2003 will occur on June 10, 2003.
- The final on-cycle payroll calculation and confirmation for the pay period ending June 7, 2003 will occur on June 11, 2003. Regent's on-cycle files for the pay period ending June 7, 2003 are due to the Division of Accounts and Reports, Payroll Services at 6:00 a.m. on June 11, 2003.
- The Regents' on-cycle for the pay period ending June 7, 2003 will be processed on Thursday, June 12, 2003.
- SHARP and Regents' Run A off-cycles for the pay period ending June 7, 2003 will be processed on Friday, June 13, 2003. Agencies are reminded that this is their last opportunity to enter adjustment transactions into SHARP v7.02 for fiscal year 2003. Any adjustments after this date will have to be processed in SHARP v8.0 and will have to be entered by Division of Accounts and Reports, Payroll Services staff. Since there will be no Run B off-cycle for the pay period ending June 7, 2003 and all Run C off-cycle adjustment transactions will have to be entered by Payroll Services staff, agencies are strongly encouraged to have all possible adjustment transactions entered into the Run A off-cycle.
- Conversion to SHARP v8.0 is scheduled for June 14-17, 2003. No payroll processing will occur on these dates. Access to SHARP will be unavailable during this conversion. Agency access to SHARP v8.0 will be available beginning at 7:00 a.m. on Wednesday, June 18.
- There will NOT BE a Run B off-cycle for the pay period ending June 7, 2003.
- SHARP and Regent's Run C off-cycles for the pay period ending June 7, 2003 will occur on June 23, 2003. This is the final off-cycle for fiscal year 2003. SHARP agencies will be allowed to enter supplemental requests, however, all adjustment transactions will have to be submitted on Form DA-180 and entered by the Division of Accounts and Reports, Payroll Services staff.
- The first preliminary on-cycle calculation processed in SHARP v8.0 will occur on June 24, 2003.
With the conversion to SHARP v8.0, all SHARP agencies will perform their own Time and Leave entry beginning with the pay period ending June 21, 2003. SHARP agencies should complete Time and Leave entry for their employees by the On-Line Users Cutoff date listed on the schedule. For the pay period ending June 21, 2003, the Time and Leave entry should be complete by 6:00 p.m. on June 24, 2003.
For the remainder of the year, SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date of the date the off-cycle was processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll. Agencies are reminded that any adjustments to SHARP v7.02 paychecks/advices will have to be performed by the Division of Accounts and Reports, Payroll Services staff.
Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payroll will be issued with the same check/advice date as the SHARP off-cycle processed on the same night.
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Attachment: SHARP bi-weekly on-cycle and off-cycle schedules for June through December 2003 (.pdf) (Amended by 03-p-040)
DATE: | May 13, 2003 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for June - December 2003 | ||
EFFECTIVE DATE: | June 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules for June-December 2003 |
Agencies are advised that Informational Circular 03-P-039 erroneously scheduled the cutoff for Regents on-cycle files for the pay period ending June 21, 2003 at 6:00 a.m. on Friday, June 27, 2003. Due to the July 4th holiday, the Regents on-cycle files are due to the Division of Accounts and Reports, Payroll Services at 6:00 a.m. on Thursday, June 26, 2003, so the Regents on-cycle can process on Sunday, June 29, 2003 instead of Monday, June 30, 2003.
Please note that all other scheduled dates in the circular remain the same and updated schedules are attached.
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Attachment: SHARP bi-weekly on-cycle and off-cycle schedules for June through December 2003 (.pdf)
DATE: | May 14, 2003 | ||
---|---|---|---|
SUBJECT: | Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle | ||
EFFECTIVE DATE: | January 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Information Concerning Employee Use of State-Owned Vehicles |
The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated, Kansas Administrative Regulations, and Executive Order 03-04.
BACKGROUND
In general, an employee's personal (commuting) use of a state-owned vehicle is a taxable fringe benefit. Commuting is defined as travel back and forth between the employee's residence and official workstation. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.
POLICY
K.S.A. 8-301 states that all state-owned vehicles are for official business only and may not be used for private business or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:
(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.
(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.
(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
Please note, Executive Order 03-04, which became effective on April 1, 2003 directs the Secretary of Administration to amend the applicable Kansas Administrative Regulation governing commuting in a state vehicle to further restrict such travel. Effective April 1, 2003 and continuing until amendment of the Kansas Administrative Regulation governing commuting, the head of each executive branch state agency under the jurisdiction of the Governor shall prohibit commuting in state vehicles by employees of that agency except under the circumstances listed below:
- The vehicle is marked as a law enforcement vehicle and is used by an employee certified as law enforcement officer under the provisions of K.S.A. 74-5601 et seq.
- The vehicle is used to commute by an employee who is determined by the Secretary of Administration to be required to respond to reoccurring public safety emergencies under specified circumstances that make commuting in a state vehicle cost effective.
- The vehicle is assigned to the employee on a trip basis only and driving the vehicle to the employee's residence will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
- The vehicle is assigned for use in the state vanpool program under K.S.A. 75-46a02 et seq.
- The vehicle is used to transport the Governor or other elected official when the Superintendent of the Highway Patrol determines using the state vehicle is a necessary security measure.
Kansas Administrative Regulation 1-17-2(b)(1) and the Administrative Guidelines For Commuting Under Executive Order 03-04 allows field employees, such as inspectors, to commute between the field employee's residence and work sites in a state-owned or leased vehicle when the employee's residence is designated as the official work station. The employee's residence can be designated as the official workstation when over 50% of the employee's work time involves direct travel from his or her residence.
Please note that meeting the Kansas Administration Regulation or Executive Order 03-04 requirements to commute with the state-owned vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of the vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle (listed in Appendix D) or the employee's residence meets the IRS's 'principal place of business' test discussed below.
PRINCIPAL PLACE OF BUSINESS TEST
Field employees generally do not report fringe benefit income for official travel between the employee's residence and work sites. To be excluded from the IRS's fringe benefit income reporting requirements, the employee's residence must qualify as the employee's 'principal place of business'. A principal place of business is defined as a place of business which is used by the taxpayer for the administrative or management activities of a trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business. If the employee works both out of his or her home (because it has been designated as the official work station) and has a state provided office, the employee's principal place of business needs to be determined by examining all the facts and circumstances.
AGENCY RESPONSIBILITY
Agencies shall identify and notify those employees who use state-owned vehicles and who park those vehicles overnight at their residences (commuting) that the commuting use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS discussed in Appendix A unless the vehicle is listed in Appendix D or the employee's residence meets the 'principal place of business test'.
Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include, at a minimum, the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).
Agencies shall provide the payroll system with reports and data to:
- Record fringe benefit income chargeable to each affected employee.
- Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
- Calculate and withhold from each affected employee's pay the federal and state income tax due.
- Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
- Remit all withheld taxes and contributions to the appropriate authorities.
- Report on each affected employee's W-2, the total fringe benefit income for the calendar year.
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Attachment: Appendix A through Appendix D (.pdf)
DATE: | May 14, 2003 | ||
---|---|---|---|
SUBJECT: | Suggestion Award Earnings Codes | ||
EFFECTIVE DATE: | May 1, 2003 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Suggestion Award SHARP Earnings Codes |
Senate Bill 429 of the 2002 Legislative Session required state agencies to establish and administer an Employee Suggestion Program through which state employees submit suggestions for cost reductions in their respective agency through increased efficiencies or other economies or savings in the operations of the state agency.
House Bill 2369 of the 2003 Legislative Session amended the suggestion award requirements to allow payment of an innovation suggestion award upon adoption of the employee suggestion by the agency. This innovation suggestion award will be in the amount of 2.5% of the estimated cost reduction, as certified by the agency's chief fiscal officer and the agency appointing authority, up to a maximum of $3,500. Each employee with an adopted suggestion would also be paid an employee suggestion bonus. This bonus amount would be the difference between the innovation suggestion award received by the employee and 10% of the documented cost reduction during the first 12 months after implementation of the suggestion, as documented to the division of the budget, up to a maximum employee suggestion bonus of $37,500.
Guidelines have also been established to allow agencies to award a Kansas Savings Incentive Program (KSIP) bonus payment, not to exceed $3,500, to employees whose suggestions are implemented, but do not result in a cost reduction for their agency.
All awards given under the Employee Suggestion Program are nondiscretionary which means the award must be included in the employee's regular rate for calculating overtime compensation. Suggestion awards are included in taxable gross income and are subject to all applicable taxes and employer contributions. These include federal and state withholding taxes, OASDI, Medicare, Unemployment Compensation Insurance, Workers Compensation Insurance, and State Leave Assessment. These awards are not subject to deductions under the Kansas Public Employees Retirement System (KPERS).
The following earnings codes will be added to SHARP to accommodate suggestion awards:
Earnings Code | Description |
---|---|
(Upon adoption of the suggestion, these two codes are used:) | |
ISA* | Award-Innovation EE Suggestion |
IAO | Overtime-Award-Innovation EE Sug |
(After 12 months have elapsed from the date of suggestion adoption, these codes are used depending on the actual cost reduction:) | |
ESP* | Award-Employee Suggestion |
EPO | Overtime-Award-EE Suggestion |
ESN* | Award-EE Sugg-No cost reduction |
ENO | Overtime-Award-EE Sugg-NCR |
* These codes should be entered in SHARP on the Bonus Pay page, NOT on the timesheet. The system will default the IAO, EPO, ENO earnings codes into the timesheet, if applicable. | |
Two earnings codes will be inactivated due to the legislation: | |
SU1 | Suggestion Award-Supervisor |
SUG | Suggestion Award |
Due to system constraints during the SHARP upgrade to V.8, please contact Accounts and Reports, Payroll Section, if an Innovation Suggestion Award must be paid prior to the pay period beginning June 8, 2003.
Complete Employee Suggestion Program guidelines, procedures, and sample forms are available on the Division of Personnel Services website located at: http://www.da.ks.gov/ps/subject/award/.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these earnings codes in the SHARP system. Regents' Institutions are responsible for ensuring these earnings codes are available on their individual systems.
DB:JJM:ckj
DATE: | May 15, 2003 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2003 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | joyce.dickerson@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular regarding the fiscal year 2004 payroll contribution rates will be issued as soon as the information is available.
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 pay periods ending on or before June 7, 2003 will use fiscal year 2003 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 7, 2003 will use fiscal year 2004 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. Note for Regents: the use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 pay period being adjusted. For example, the Run A off-cycle (processed June 13, paid June 20) and the Run C off-cycle (processed June 23, paid June 26) for the pay period ending June 7, 2003 will be charged to fiscal year 2003 expenditures. The Run A off-cycle (processed June 30 paid July 3) for the pay period ending June 21, 2003 will be charged to fiscal year 2004 expenditures.
Agencies are reminded that there is no Run B off-cycle for the pay period ending June 7, 2003 due to the SHARP v8.0 conversion.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run C off-cycle scheduled for June 23, 2003 (paid June 26) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2003 expenditures. Please note that the Run C off-cycle is the first off-cycle payroll to be processed in SHARP v8.0. SHARP agencies may enter supplemental requests for the payroll period ending June 21 into the Run C off-cycle, but are reminded that in SHARP v8.0 all adjustment/reversal transactions to SHARP v7.02 paychecks/advices will have to be entered by the Division of Accounts and Reports, Payroll Services staff. DA-180 forms for adjustments or reversals which cannot be entered by agencies should be submitted to Payroll Services by noon on Monday, June 23, 2003 in order to allow sufficient time for processing by Payroll Services staff. Payroll Services cannot ensure that DA-180 forms received after the noon deadline on June 23 will be processed in time to be included in the Run C off-cycle.
Once the Run C off-cycle for the period ending June 21, 2003 (processed July 7, paid July 10) has been processed, agencies should not request or process paycheck reversals until STARS FY 2003 closing has been successfully completed. STARS is scheduled to resume processing July 22, 2003.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
With the implementation of SHARP v8.0, the Budget End Date and Fiscal Year on the Department Budget tables will be updated as part of the conversion process. In that process a new row will be added to the Department Budget tables with an effective date of 06/08/2003 (beginning date of the first on-cycle payroll charged to FY2004). The Budget End Date will be 06/07/2004. When adding new rows for FY2004, agencies should verify that 06/07/2004 was used as the Budget End Date for FY2004.
GHI Adjustments
As of July 1, 2003, NO payroll processing for GHI adjustments should be made for contract year 2001. 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 2001.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2003. 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 (assuming processing occurs before midnight), the Run C off-cycle for the pay period ending June 7, 2003 (processed June 23, paid June 26) will have 358 as the Julian date in the document number and expenditures will be charged to fiscal year 2003. The Run A off-cycle for the pay period ending June 21, 2003 (processed June 30, paid July 3) will have 365 as the Julian date in the document number and expenditures will be charged to fiscal year 2004. The Run B off-cycle for the pay period ending June 21, 2003 (processed July 2, paid July 7) will have 002 as the Julian date in the document number and expenditures will be charged to fiscal year 2004.
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 2004.
Reminders
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 payrolls 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 on-cycle paycheck for the period and will require special handling.
Please note that due to the conversion to SHARP v8.0 during the month of June, the first preliminary pay calculation for the on-cycle pay period beginning May 25 and ending June 7, paid June 20, 2003 will occur on Monday, June 9. The final calculation and confirm for this on-cycle will occur on Wednesday, June 11.
- Agencies should review the accuracy of the gross-to-net payroll information and employer 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'.
DB:JJM:rdb
DATE: | May 28, 2003 | ||
---|---|---|---|
SUBJECT: | Parking Fee Increase - Curtis Building Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning June 8, 2003 and Ending June 21, 2003, Paid July 3, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Parking Fee Increase - Curtis Building Garage |
Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective July 1, 2003. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $21.61 per bi-weekly pay period effective with the payroll period beginning June 8 and ending June 21 paid July 3, 2003. The associated administrative fee code PKAD05 increases to $1.65 ($21.61 X .0765). Employees with the Department of Commerce and the Board of Accountancy who park in the Curtis Building Garage will see parking deduction codes PKT10B and PPKT10 increased to $10.80 per bi-weekly pay period. Administrative fee code PKAD07 increases to $0.83 ($10.80 X .0765).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | May 28, 2003 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | July 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates for fiscal year 2004 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents' are responsible for updating any rate changes into their payroll system.
DB:JJM:rdb
Attachment: DA-171 (.pdf)
DATE: | June 3, 2003 | ||
---|---|---|---|
SUBJECT: | New Federal Withholding Tax Tables | ||
EFFECTIVE DATE: | July 1, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Tables Effective for Paychecks Issued On or After July 1, 2003. |
Due to the new federal tax legislation signed into law on May 28, 2003, the Internal Revenue Service (IRS) has issued new federal percentage tables for computing the federal withholding tax deductions. In addition, the new legislation instructs employers to reduce the supplemental flat withholding rate from 27% to 25%. Finally, the value for one withholding exemption increases from $3050.00 to $3100.00 per year. Employers are encouraged to use the new tables as soon as the tables can be worked into their payroll systems, but not later than July 1, 2003. The Division of Accounts and Reports Payroll Systems Team will implement the changes listed above effective with the pay period beginning June 8, 2003 and ending June 21, 2003, paid July 3, 2003.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after July 1, 2003. When calculating federal withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax tables and supplemental wage withholding rate in their respective payroll systems for paychecks issued on or after July 1, 2003.
DB:JJM:rb
Attachment: Schedule A
DATE: | June 5, 2003 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Remittance Change | ||
EFFECTIVE DATE: | May 9, 2003 | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Banking Information for Wire Transfers to ING |
Payroll Services has been notified that the bank account and routing number for processing the voluntary tax sheltered annuity remittance wire transfer to ING (VTSA #024) has changed. The new account/routing numbers are effective for all wire transfers made on or after May 9, 2003. Each Regents Institution should have already received correspondence from ING advising them of the new banking information. If no correspondence has been received, Regents can contact Abby Moore in Payroll Services to obtain the banking information to be used for the wire transfer.
Vendor number 710294708-01 in STARS has been updated to reflect the new bank information.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:rdb
DATE: | June 12, 2003 | ||
---|---|---|---|
SUBJECT: | New Earnings Codes | ||
EFFECTIVE DATE: | June 8, 2003 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
kathy.ogle@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | New Earnings Codes |
Executive Order 03-340 establishes a new premium pay of $.75 per hour effective June 8, 2003. This premium is only available for use by the Kansas Highway Patrol (Agency 280).
The following earnings code will be added to SHARP for this premium:
Earnings Code | Description |
---|---|
S11 | Shift 11-KHP-$.75 |
Upon conversion to v8.0 effective June 8, 2003, functionality for entering some shift pay will change. Functionality for rate shift codes (i.e., SF1, SF5, SF6, SF7, SF9, S10, S11, SK1, SK2, ST1, and ST2) that have an amount associated with them will remain unchanged in v.8.0. These earnings codes should continue to be entered directly on the timesheet.
Factor shift code entry will be changing in v.8.0. The current factor shift codes (i.e., SF3, PD1, PD2, and PD3) that have a percentage associated with them will be inactivated and two new earnings codes will be added for each current code. This change will take advantage of delivered functionality and will allow elimination of some system modifications and table maintenance.
The following earnings codes will be added to effective June 8, 2003 to accommodate this shift pay change:
Earnings Code | Description | Replaces Earnings Code |
---|---|---|
(These 'hours' codes should be entered on the employee's timesheet at the time of other time and leave entry.) | ||
P1H | Pay Diff Hours-Corrections-10% | PD1 |
P2H | Pay Diff Hours-JJA-Lead Wrkr-5% | PD2 |
P3H | Pay Diff Hours-JJA-Spec Unit-5% | PD3 |
S3H | Shift 3 Hours-10% | SF3 |
(These 'pay' codes will be added ONE TIME to the Additional Pay page. As part of the conversion process for v8.0, these pay codes will be automatically added to the Additional Pay page for all employees who have received factor-based shift pay thus far in calendar year 2003. Agencies will be responsible for the necessary one time Additional Pay setup after the initial conversion.) | ||
P1P | Pay Diff Pay-Corrections-10% | PD1 |
P2P | Pay Diff Pay-JJA-Lead Wrkr-5% | PD2 |
P3P | Pay Diff Pay-JJA-Spec Unit-5% | PD3 |
S3P | Shift 3 Pay-10% | SF3 |
Four earnings codes will be inactivated effective June 8, 2003 due to this shift pay change: | ||
PD1 | Pay Diff-Corrections-10% | |
PD2 | Pay Diff-JJA-Lead Worker-5% | |
PD3 | Pay Diff-JJA-Specialty Unit-5% | |
SF3 | Shift 3 |
Both the 'hours' and the 'pay' shift earnings codes will update the paycheck. The 'hours' earnings codes will contain an amount equal to the shift hours entered on the timesheet times the employee's hourly rate of pay. This amount will not add to gross pay. The 'pay' earnings codes will reflect the amount that adds to gross pay (which is the 'hours' amount times the factor associated with that shift).
Earnings codes that are inactive cannot be entered on timesheets for pay periods ending after June 7, 2003. Paychecks that contain an inactive code cannot be adjusted through the reversal/adjustment process, as payroll error messages will result. In these situations, the adjustment request should be submitted to Accounts & Reports, Payroll Services on a Form DA-180, Paycheck Reversal/Supplemental/Adjustment. As a reminder, paychecks converted from v.7.02 can not be adjusted through the reversal/adjustment process in v.8.0. Therefore, all adjustments for converted paychecks should be submitted to Accounts and Reports.
Earnings code descriptions have also been revised to be more descriptive and easier to use effective with the upgrade to v.8.0. An updated earnings code listing will be available on the website located at: http://www.da.ks.gov/sharp/documents/default.htm beginning the week of June 16, 2003.
The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating these earnings codes in the system. Regents' Institutions are responsible for ensuring these code changes are updated in their individual systems.
DB:JJM:ckj
DATE: | June 12, 2003 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2004 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 8, 2003 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | -Fiscal Year 2004-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans -KPERS Death and Disability Moratorium |
The attached schedules contain listings of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2004. The rates for fiscal year 2004 will become effective with the on-cycle payroll period beginning June 8, 2003 and ending June 21, 2003 paid July 3, 2003. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for the remainder of calendar year 2004.
HB 2014, passed in the 2003 legislative session, extends to June 30, 2004 the moratorium of employer's contributions for KPERS Death and Disability Insurance originally scheduled to end on June 30, 2003. Because of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between April 1, 2003 and June 30, 2004. This procedure will be effective with the pay period beginning March 16, 2003 and ending March 29, 2003 paid April 11, 2003 through the pay period beginning May 23, 2004 and ending June 5, 2004 paid June 18, 2004. Agencies are reminded that a moratorium of employer's contributions for KPERS Death and Disability has occurred for pay periods with original check dates between April 1, 2000 to December 31, 2001, between July 1, 2002 to December 31, 2002, and between April 1, 2003 to June 30, 2004. Please note that KPERS Death and Disability Insurance for off-cycles is calculated based on pay period end dates, so paycheck adjustments for pay period end dates with an original check date not in a moratorium period will continue to have the contributions remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP for new employees hired between March 16, 2003 and June 5, 2004 even though the agency will not be charged for KPERS Death and Disability contribution. In SHARP v8.0, the appropriate 'GTL' code will be entered in Compensate Employee (Menu Group), Administer Base Benefits (Menu), Use (Menu Item), and Retirement Plan (Component). If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the employee.
Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to Board of Regents retirement plans members who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(5). K.S.A. 74-4927a(5) specifically requires the "employee" to remit the required contribution while on leave without pay.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. 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 2004.
DB:JJM:rdb
Attachments (.pdf)
DATE: | June 18, 2003 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | abby.moore@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Changes |
Payroll Services has been notified that the name for Anchor National Life Insurance Company (VTSA #059) has changed to AIG SunAmerica Life Assurance Company.
Vendor number 860198983-08 in STARS has been closed and remittances have been redirected to the new vendor number/suffix combination 860198983-00 for AIG SunAmerica Life Assurance Company.
In addition to the above name change, the Kansas Board of Regents has requested that Kemper Investors Life Insurance Company (VTSA #379) be removed from the list of approved providers for voluntary tax sheltered annuities. This company has no current subscribers and is deleted effective June 8, 2003 from the SHARP system.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:ntr
DATE: | June 28, 2001 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30 | ||
EFFECTIVE DATE: | Payroll Period Beginning August 19, 2001 and Ending September 1, 2001, Paid September 14, 2001 | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University Kansas National Education Association, deduction code 'ORG030', will change from $21.40 to $22.00 per bi-weekly payroll period. The new rate will become effective with the payroll period beginning August 19, 2001 and ending September 1, 2001, paid September 14, 2001.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHaRP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 14, 2001.
DB:JJM:ewb
DATE: | July 13, 2001 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking - Conservation Commission | ||
EFFECTIVE DATE: | Payroll Period Beginning June 24, 2001 and Ending July 7, 2001, Paid July 20, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKA06 and APKA06 |
To facilitate a parking lease recently entered into by the Conservation Commission for employees of their agency who park in the garage located near 9th and Quincy in Topeka, payroll deduction codes PPKA06 (pre-tax parking) and APKA06 (after-tax parking) have been added to SHARP effective June 24, 2001. The employee deduction will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05 (which is already established), will be $1.59 (.0765 X $20.77) per payroll period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | July 13, 2001 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2002 Unemployment Insurance Contribution Rate | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2002 Unemployment Insurance Contribution Rate |
Informational Circular 01-P-047, dated June 19, 2001, reported the Fiscal Year 2002 Unemployment Insurance Rate for the State of Kansas as .1%. The correct rate is .07% and should be effective for the pay period beginning June 10, 2001 and ending June 23, 2001, paid July 6, 2001.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | July 16, 2001 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking - Signature Building Garage | ||
EFFECTIVE DATE: | Payroll Period Beginning July 8, 2001 and Ending July 21, 2001, Paid August 3, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKT08 and PKT08B |
To facilitate the collection of parking fees for the Signature Building Garage, payroll deduction codes PPKT08 (pre-tax parking) and PKT08B (after-tax parking) have been added to SHARP effective July 8, 2001. The employee deduction will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05 (which is already established), will be $1.59 (.0765 X $20.77) per payroll period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | August 1, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | VTSA Company Name and Address Changes |
Payroll Services has been notified of a name and address change for the IDS Life Insurance Company (VTSA company #321). Effective immediately the name is changed to American Express Financial Advisors, Inc. Premium remittances should be mailed to the following address:
American Express Financial Advisors, Inc.
70205 AXP Financial Center
Minneapolis, MN 55474-0702
Payroll Services has also been notified of an address change for the remittances to MetLife (VTSA company #446). Effective immediately remittances should be mailed to the following address:
MetLife
P.O. Box 120945, Dept. 0945
Dallas, TX 75312-0945
In addition, effective immediately, VTSA company #239 (Fidelity Standard Life Insurance Company) is being removed from the list of valid VTSA companies. The ownership of this company has been assumed by MetLife Investors USA Insurance Company (VTSA company #843). Any employees currently enrolled in company #239 should be changed to company #843.
The vendor table in STARS has been updated to reflect these changes.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:eb
DATE: | August 14, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Removal of VTSA Company |
Payroll Services has been notified by the Kansas Board of Regents to remove VTSA company #688 (Scudder Fund Distributors, Inc.) from the list of valid VTSA companies. Effective immediately, the company is being removed from the list of valid VTSA companies due to employees no longer making voluntary contributions to this company.
The vendor table in STARS has been updated to reflect this change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:eb
DATE: | August 24, 2001 | ||
---|---|---|---|
SUBJECT: | Board of Regents Institutions | ||
EFFECTIVE DATE: | Payroll Period Beginning December 9, 2001 and Ending December 22, 2001, paid January 4, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Changes to STARS Funding and Providers for Group Health Insurance |
The following provider changes have been made for the State of Kansas 2002 group health insurance plan year:
1.) New Medical Provider:
Kansas Preferred: plan type 10, deduction codes KSPRAT and KSPRBT
STARS funding file - fund 7700, index codes 9702 (employee) and 9802 (employer)
2.) New Vision Plan:
Enhanced Vision Plan: plan type 14, deduction codes VSHIAT and VSHIBT
STARS funding file - fund 7700, index code 9703
Note: The vision plans have no employer contribution.
3.) Provider name changes:
Healthnet will become Mid America Health. This is a name change only.
All other information will remain as plan type 10, deduction codes HLNTAT and HLNTBT.
STARS funding file - fund 7700, index codes 9716 and 9816.
Vision Service Plan will become Basic Vision Plan, in order to distinguish between it and the new Enhanced Vision Plan. This is a name change only.
All other information will remain as plan type 14, deduction codes VISNAT and VISNBT.
STARS funding file - fund 7700, index code 9739
Note: The vision plans have no employer contribution so index 9839 will be removed as a valid value from the STARS funding file pre-edit program.
Regents institutions are responsible for ensuring these changes are reflected in their individual systems, effective with the January 4, 2002 check issue date. Note: there are no changes to the DA175-176 files.
To submit a test file, please contact Nancy Ruoff, Payroll Services at 785-296-5369.
The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 01-P-014 dated October 20, 2000. All changes listed above are incorporated in this document.
DB:JJM:cj
Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | August 28, 2001 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking - Signature Building Garage - Secretary of State's Office | ||
EFFECTIVE DATE: | Payroll Period Beginning August 19, 2001 and Ending September 1, 2001, Paid September 14, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKT09, PKT09B, and PKAD06 |
To facilitate the collection of parking fees for the Signature Building Garage for employees of the Secretary of State's Office, payroll deduction codes PPKT09 (pre-tax parking) and PKT09B (after-tax parking) have been added to SHARP effective August 19, 2001. The employee deduction will be $9.23 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD06 (which was also added), will be $0.71 (.0765 X $9.23) per payroll period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | September 17, 2001 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking - Signature Building Garage - Kansas Department of Commerce and Housing | ||
EFFECTIVE DATE: | Payroll Period Beginning September 30, 2001 and Ending October 13, 2001, Paid October 26, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKT10, PKT10B, and PKAD07 |
To facilitate the collection of parking fees for the Signature Building Garage for employees of the Kansas Department of Commerce and Housing, payroll deduction codes PPKT10 (pre-tax parking) and PKT10B (after-tax parking) have been added to SHARP effective September 30, 2001. The employee deduction will be $10.38 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD07 (which was also added), will be $0.79 (.0765 X $10.38) per payroll period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | September 27, 2001 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2001 | ||
EFFECTIVE DATE: | November 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2001 holidays |
Monday, November 12, 2001 (Veterans Day Observed), Thursday, November 22, 2001 and Friday, November 23, 2001 (Thanksgiving Holiday) are designated holidays for state service in 2001. Because of the Thanksgiving holiday, the pay date for the payroll period ending November 10, 2001 will be Wednesday, November 21, 2001. Direct deposit advices for this pay date will be mailed Monday, November 19, 2001; paychecks will be mailed Tuesday, November 20, 2001.
Due to the holidays in November, the following variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing date changes, which are occurring on a different day of the week than normally scheduled.
Thursday, November 8, 2001
Time and leave interface agencies must have time and leave files for the period ending November 10, 2001 submitted to the Department of Administration for processing by 5:00 PM on November 8, 2001 (These files would normally be due Monday). Paper agencies time and leave documents are due to Payroll Services by 5:00 PM on November 8, 2001.
Regents' Run C off-cycle payroll files for the period ending October 27, 2001 must be received by the Department of Administration by 5:00 PM on November 8, 2001.
Monday, November 12, 2001
(Veterans Day Holiday Observed)
Paysheets for the on-cycle payroll for the period ending November 10, 2001 will be created on Monday, November 12, 2001 (Paysheets would normally be created on Tuesday). All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 5:00 PM on November 12, 2001 in order to be reflected on the paysheets for this period. The first on-cycle preliminary pay calculation for the period ending November 10, 2001 will also occur November 12, 2001; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 5:00 PM.
Please note that there will only be two SHARP on-cycle preliminary payroll calculations for the period ending November 10, 2001
The Run C off-cycle for the period ending October 27, 2001 will be processed November 12, 2001. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.
Please Note: While the SHARP system will be available for on-line entry on Monday, November 12, 2001, it is a designated holiday for state service. Agency staff not working on November 12 in observation of the holiday will need to have all processing completed by 5:00 p.m. on Friday, November 9, 2001.
Tuesday, November 13, 2001
The second on-cycle preliminary pay calculation for the period ending November 10, 2001 will occur November 13, 2001.
The general ledger extract for the payroll period ending October 27, 2001 will also be created on this date.
Wednesday, November 14, 2001
Final pay confirmation for the on-cycle payroll for the period ending November 10, 2001 will occur November 14, 2001 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 5:00 PM on November 14, 2001 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 5:00 PM on November 14, 2001 in order to be reflected in the final paycheck created for the employee.
Regents' on-cycle payroll files for the period ending November 10, 2001 are due to the Department of Administration by 6:00 AM on November 14, 2001 to ensure timely issuance of the payroll on November 21, 2001.
Thursday, November 15, 2001
On-line access to SHARP for all users will not be available due to batch processing which must occur to ensure timely issuance of payroll on November 21, 2001.
Regents' Run A off-cycle payroll files for the period ending November 10, 2001 must be received by the Department of Administration by 5:00 PM on November 15, 2001 in order to be processed on Friday, November 16, 2001.
Friday, November 16, 2001
The final SHARP on-cycle payroll reports, with the exception of the KPAYWAGE, for the period ending November 10, 2001 will be available in the agency directories on the MVS (for on-line agencies) and will be distributed (for paper-user agencies) no later than November 16, 2001.
The Run A off-cycle for the period ending November 10, 2001 will be processed November 16, 2001. SHARP agencies have until 5:00 PM on this date to enter supplemental and/or adjustments run controls for the Run A off-cycle.
Paychecks for the Run A off-cycle will be dated Wednesday, November 21, 2001.
Monday, November 19, 2001
KPAYWAGE reports for the on-cycle for the period ending November 10, 2001 will be available in the agency directories (for on-line agencies) and will be distributed (for paper-user agencies) no later than November 19, 2001.
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 10, 2001 will be posted to STARS during Monday night's STARS batch processing cycle.
Tuesday, November 20, 2001
Regents' Run B off-cycle payroll files for the period ending November 10, 2001 must be received by the Department of Administration by 5:00 PM on November 20, 2001 in order to be processed on Wednesday, November 21, 2001.
Wednesday, November 21, 2001
Payday for the payroll period ending November 10, 2001.
The Run B off-cycle for the period ending November 10, 2001 will be processed November 21, 2001. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle.
Paychecks for the Run B off-cycle will be dated November 28, 2001.
Regents' Run C off-cycle payroll files for the period ending November 10, 2001 must be received by the Department of Administration by 5:00 PM on November 21, 2001 in order to be processed on Monday, November 26, 2001.
Monday, November 26, 2001
The Run C off-cycle for the period ending November 10, 2001 will be processed November 26, 2001. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.
Paychecks for the Run C off-cycle will be dated November 29, 2001.
Attached is a calendar for the month of November 2001, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing dates and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). On-line users should review the SHARP message panel or web site daily to determine if new messages have been added. Paper-users will be notified of any changes to these dates via telephone.
DB:JJM:rdb
Attachment: November payroll calendar (.pdf)
DATE: | October 1, 2001 | ||
---|---|---|---|
SUBJECT: | New Organization for Org Dues Deductions | ||
EFFECTIVE DATE: | October 13, 2001 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (Janice.Wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Deductions for ORG900 and ORG901 |
Please be advised of two new deduction codes, ORG900 and ORG901, for organization dues for members of the Fort Hays State University-American Association of University Professors (FHSU-AAUP). The deduction code ORG900 is established for untenured faculty. This deduction will be $ 6.00 per biweekly pay period effective with the payroll period beginning September 30, 2001 and ending October 13, 2001 paid October 26, 2001. Additionally, the deduction code ORG901 is established for tenured faculty. This deduction will be $ 11.00 per biweekly pay period effective with the payroll period beginning September 30, 2001 and ending October 13, 2001 paid October 26, 2001. Enrollment and/or termination cards should be sent to Rosalie Nichols at FHSU-AAUP, P.O. Box 1315, Hays, Kansas 67601.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after October 26, 2001.
DB:JJM:ewb
DATE: | October 1, 2001 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for Calendar Year 2002 | ||
EFFECTIVE DATE: | Calendar Year 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules |
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2002.
The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. Time and leave interface agencies, please note that time and leave files for the payroll period ending December 22, 2001 are due Friday, December 21, 2001.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be changed to the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHARP agencies have until 5:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll. All agencies, please note that the Run C off-cycle for the pay period ending November 9, 2002 will run on the night of November 25, 2002 and will have a check issue date of November 27, 2002.
Off-cycle payroll for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payroll will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
DB:JJM:rdb
Attachment: SHARP Bi-Weekly Payroll Schedules (.pdf)
DATE: | October 9, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Changes |
Payroll Services has been notified of an address change for the American Funds Investors (VTSA #839). Effective immediately remittances must be mailed to the following new address:
American Funds Investors
135 S. State College Boulevard
Brea, CA 92821
Additionally, Payroll Services has been notified of an address change for the New England Financial (VTSA #842). Effective immediately remittances must be mailed to the following new address:
New England Financial
Wells Fargo Bank Iowa NA
666 Walnut Street
Des Moines, IA 50309
The vendor table in STARS has been updated to reflect these address changes.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:eb
DATE: | October 25, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Correction | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Correction |
Payroll Services has been notified of a correction to the address for American Funds Investors (VTSA #839) that was previously changed on Informational Circular #02-P-013 dated October 9, 2001. Effective immediately remittances must be mailed to the following new address:
American Funds Investors
3500 Wiseman Boulevard
San Antonio, TX 78251-4321
The vendor table in STARS has been updated to reflect this address correction.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:eb
DATE: | October 25, 2001 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $84,900 effective January 1, 2002 |
The Social Security wage base for OASDI will be $84,900 for calendar year 2002. This is a $4,500 increase from the 2001 wage base of $80,400. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2002 will be $5,263.80. There continues to be no limit on wages subject to the Medicare tax in 2002. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,263.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:cj
DATE: | October 30, 2001 | ||
---|---|---|---|
SUBJECT: | FY 2002 Group Health Insurance Payroll Contribution Rates | ||
EFFECTIVE DATE: | Plan Year 2002 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | (kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | GHI semi-monthly employer contribution rates for Fiscal Year 2002 |
The attached schedule is a listing of the Group Health Insurance semi-monthly employer contribution rates for Fiscal Year 2002 which become effective with the on-cycle payroll period beginning December 9, 2001 and ending December 22, 2001 paid January 4, 2002.
For plan year 2002, the GHI coverage periods are changing from biweekly to monthly. Deductions for GHI for plan year 2002 will be made on a semi-monthly rather than a biweekly basis; deductions will be taken on the first and second paycheck of each month for that month's coverage. For example, GHI deductions taken on the January 4, 2002 and January 18, 2002 paychecks will be premium deductions for the coverage period January 1 through January 31, 2002. Months with three paydates will not have a GHI deduction taken on the third paycheck. Annual employer contribution rates remain the same; however, the contribution amounts per payroll period are higher due to the implementation of 24 deductions annually (rather than 26) beginning in plan year 2002.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regents' institutions are responsible for ensuring that the correct contribution rates are used when calculating payroll for employees of their agencies.
DB:JJM:kao
Attachment A (.pdf)
DATE: | November 13, 2001 | ||
---|---|---|---|
SUBJECT: | 2001 Calendar Year-End Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Schedule for Processing Transactions During 2001 Calendar Year-End |
As 2001 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2001 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2001 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2002 balances; a corrected W-2 (Form W-2C) for 2001 will not be issued for the employee involved.
FINAL 2001 PAYCHECK
The final on-cycle paychecks for calendar year 2001 will be issued December 21, 2001. Paychecks will be mailed on December 20, 2001 and advices will be mailed on December 19, 2001. The final off-cycle paychecks for calendar year 2001 will be issued on December 28, 2001 for the off-cycle processed on December 24, 2001.
PAYCHECK REVERSALS
Any 2001 paychecks that are undeliverable should be reversed as soon as possible. After proper authorization SHARP agencies have until 5:00 p.m. on December 24, 2001 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', for any paycheck reversals by 12:00 noon on December 24, 2001. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 24, 2001 will update calendar year 2002 balances and will not be reflected in the employee's 2001 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 5:00 p.m. on December 24, 2001 to enter paycheck adjustment requests for any 2001 paychecks. Adjustments processed in the December 24, 2001 off-cycle payroll will be reflected on the employee's 2001 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2001 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 17, 2001. The December 17, 2001 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 17, 2001 for inclusion in the December 24, 2001 off-cycle. However, if a large volume of DA-180 forms is received on the December 17, 2001 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2001 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered after December 24, 2001 which are adjusting paychecks issued prior to January 1, 2002 will not result in a W-2C; the adjustment will update the employee's 2002 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 24, 2001 will update the employee's 2002 payroll balances.
REGENTS' INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 8, 2001, paid December 21, 2001 are due to the Department of Administration by 6:00 am December 14, 2001.
REGENTS' INSTITUTIONS: OFF-CYCLE FILES
2001 Paycheck Reversals
Regent Institutions must submit all transmittals for 2001 paycheck reversals by 5:00 p.m. on Friday, December 21, 2001 in order to update the employee's 2001 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2002 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2002 submitted after 5:00 pm on December 21, 2001 should default the pay adjust check date to January 1, 2002.
2001 Adjustments and Supplementals
In order to update employee balances for 2001, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 21, 2001. The off-cycle for the pay period ending December 8, 2001 generated on the night of Monday, December 24, 2001 will have an issue date of December 28, 2001; all activity for this off-cycle will be reflected in the employees' 2001 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2001 date.
2002 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2002, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 21, 2001, will be considered to be 2002 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2002 business, the employee's 2002 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2002 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2002, agencies should default the pay adjust check date to January 1, 2002).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2002, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2002 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2002 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments which contain a prior year indicator of 'P' will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 24, 2001 deadline will not be processed until the January 28, 2002 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 21, 2002. The deadline for submitting payroll interface files for the January 28, 2002 off-cycle is 5:00 p.m. on January 25, 2002.
GENERAL REMINDERS
The deduction END date on the general deduction panel for 2001 United Way contributions should be dated between December 9, 2001 and December 22, 2001 in order for the last 2001 deduction to be taken on the paycheck issued December 21, 2001. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2002, agencies can enter a new row effective-dated between December 9, 2001 and December 22, 2001 in order for the first deduction for 2002 to be taken on the January 4, 2002 paycheck. If the 2002 deduction is to be taken over 26 pay periods, a deduction end date of December 8, 2002 should be entered.
All deductions for calendar year 2002 are biweekly except:
- Group Health Insurance: semi-monthly, deducted on the first and second paydates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
- Long Term Care: monthly, deducted on the first paydate of the month.
- Optional Group Life Insurance: monthly, deducted on the second paydate of the month.
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 24, 2001 (December 17, 2001 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. Any arrearage collections made by personal reimbursement that are collected after December 14, 2001, and prior to December 24, 2001, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2001 W-2.
One of the changes implemented at the time of the v7.0 SHARP upgrade is the new advance ('ADV') earnings being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 2001 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 8, 2001 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 21, 2001 (i.e., on-cycle for the payroll period ending December 8, 2001) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2001 Form W-2.
The 2001 W-2 forms will again be mailed directly to the employee's home address stored on the Personal Data 1 panel in the Personnel Administration window. Please make any name, address, or social security number changes to this panel by 5:00 pm on December 28, 2001 to guarantee the updated information is included in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between January 1, 2002 and January 15, 2002.
Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 28, 2001.
W-2 forms will be mailed on or before January 31, 2002. A message will appear on the SHARP message panel to advise agencies of the W-2 mailing date in January.
Attached is a calendar for the month of December 2001 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 02-P-012, dated October 1, 2001. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). On-line agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.
Attachment: 2001 December payroll processing calendar (pdf)
DB:JJM:rdb
DATE: | November 13, 2001 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned Vehicles | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2002 |
The Internal Revenue Service (IRS) has increased the mileage rate to 36.5 cents under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned vehicle. The new rate becomes effective January 1, 2002. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 36.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicles total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2002 and the agency wishes to use the Cents-Per-Mile method, please contact Payroll Services for the 'luxury' vehicle definition. Agencies and employees are also reminded that the only personal use of a state vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.
DB:JJM:rdb
DATE: | November 15, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Correction | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Correction |
Payroll Services has been notified of a correction to the remittance address for LifeUSA (VTSA #838). Effective immediately remittances must be mailed to the following new address:
LifeUSA
Box 290
Minneapolis, MN 55440-0290
The vendor table in STARS has been updated to reflect this address correction.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
DB:JJM:eb
DATE: | November 20, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Correction | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Correction |
Payroll Services has been notified of a correction to the name and remittance address for Northern Life Insurance Company (VTSA #506). Effective immediately remittances must be mailed to the following new name and address:
Reliastar Northern Life Insurance Company
P.O. Box 5060
Minot, ND 58702-5060
The vendor table in STARS has been updated to reflect this name and address correction.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | November 27, 2001 | ||
---|---|---|---|
SUBJECT: | KPERS Death and Disability Insurance Contributions | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Kathy Ogle | (785) 296-2290 | (kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | End of Moratorium on Employer's Contributions for KPERS Death and Disability Insurance |
The moratorium on KPERS Death and Disability Insurance employer contributions will expire as of December 31, 2001. As a result, the Division of Accounts and Reports will again begin collecting and remitting KPERS Death and Disability contributions effective with the pay period beginning December 9, 2001 and ending December 22, 2001, paid January 4, 2002.
Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees so that the proper contribution amount is calculated. (Go, Compensate Employees, Maintain Payroll Data U.S., Use, General Deduction Data) Attached is a schedule listing the percentage rates for employee/employer retirement plan contributions, updated with the Death and Disability Insurance Contribution rates and 'GTL' codes.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to December 22, 2001.
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Attachment A (.pdf)
DATE: | December 3, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Calculations for Kansas Board of Regents, School for the Deaf, and School for the Blind | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (Sunni.Zentner@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Formulas for Calculating the Maximum Allowable Voluntary Tax Sheltered Annuity (VTSA) Contributions for Calendar Year 2001 |
Please find attached worksheets for calculating the maximum allowable Voluntary Tax Sheltered Annuity (VTSA) contributions for calendar year 2001.
The attached worksheets have been developed in accordance with the current provisions of the Internal Revenue Code and contain a change to the Maximum Exclusion Allowance (MEA) calculation for 2001. In determining the 'amounts previously excludable' portion of the MEA calculation, any prior year's contribution to a defined benefit plan are not to be included. Because KPERS is a defined benefit program, the KPERS "Priors" Calculation has been removed from the attached worksheets. Please note that present year KPERS Employee Contributions (including KPERS buyback) are still used in calculating gross earnings for the MEA.
The Division of Accounts and Reports, Payroll Services will continue to provide calculation worksheets for each VTSA participant employed at the Board of Regents, Kansas State School for the Blind, and School for the Deaf. These agencies will be contacted in the month of December to assist in gathering the data necessary to complete the worksheets.
Regent's institutions are responsible for applying the maximum VTSA formulas for their employees and processing any necessary refunds prior to the end of the calendar year.
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Attachment (.pdf)
DATE: | December 5, 2001 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking - Signature Building Garage - Agreement with Board of Accountancy | ||
EFFECTIVE DATE: | Payroll Period Beginning November 25, 2001 and Ending December 8, 2001, Paid December 21, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKT11 and PKAD08 |
To facilitate the collection of parking fees due to an agreement with the Board of Accountancy, payroll deduction codes PPKT11 (pre-tax parking) and PKAD08 (employer rate) have been added to SHARP effective November 25, 2001. Payroll deduction codes PPKT11 and PKAD08 are to be used for Board of Accountancy employees who park in surface Lot 1. The deduction amounts for PPKT11 and PKAD08 are $2.31 and $0.18 ($2.31 X .0765) per bi-weekly payroll period. For Board of Accountancy employees who park in the Signature Garage, payroll deduction codes PPKT10 and PKAD07 (employer rate) should be used. The deduction amounts for PPKT10 and PKAD07 are $10.38 and $0.79 ($10.38 X .0765) per bi-weekly payroll period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | December 5, 2001 | ||
---|---|---|---|
SUBJECT: | New Tables for Federal Withholding Tax for 2002 | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 2002. |
The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 2002. In addition, the standard deduction for one withholding allowance changes to $3000.00 per year in calendar year 2002.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 2002. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 2001 must file a new W-4 form for calendar year 2002 if they wish to continue their exempt status.
Employees may be eligible for the withholding tax exempt status if the following criteria are met:
- The employee had no income tax liability in the previous year; and
- The employee anticipates no income tax liability in the upcoming year.
Additionally, IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit, for income earned in the United States, to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2001 must file a new 8233 form for calendar year 2002 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Department of Administration will be updating the SHARP federal and state tax data records on December 17, 2001, for all employees currently claiming exempt from withholding; the tax data record updates will be effective January 1, 2002. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exempt from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exempt from withholding in 2002. The new tax data row should be effective January 2, 2002. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
A new-effective dated row will also be added in the SHARP federal tax data records on December 17, 2001 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2002. The new tax data row will be dated January 1, 2002. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2002 has been submitted.
The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose withholding tax status was updated on December 17, 2001. This listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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DATE: | December 10, 2001 | ||
---|---|---|---|
SUBJECT: | Parking Permit Fees | ||
EFFECTIVE DATE: | Paychecks Dated January 4, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (Roger.Basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Increase in Parking Permit Fees for Non-reserved Spaces and the Establishment of New Parking Permit Fees/Payroll Deduction Codes for Reserved Spaces. |
Kansas Administrative Regulation 1-45-7 increases the parking permit fee to $6.92 per bi-weekly pay period for non-reserved spaces in the state-owned surface parking lots and establishes the new parking permit fee of $8.08 per bi-weekly pay period for reserved spaces in the surface lots. The parking fee increase is effective for the payroll period beginning December 9, 2001 and ending December 22, 2001 paid January 4, 2002.
The $6.92 non-reserved rate will be effective for payroll deduction codes of PK0001, PKT01B, PKT02B, PKT04B, PKT05B, PKT06B, PKT07B, PPKT01, PPKT02, PPKT04, PPKT05, PPKT06, and PPKT07. The employer rate, payroll deduction code PKAD01 will be increased to $.53 (.0765 X $6.92). For employees under the Board of Accountancy agreement, the new rates for payroll deduction codes PPKT11 and PKAD08 (employer rate) will be $3.46 and $.26 (.0765 X $3.46).
To facilitate the collection of parking fees for the new $8.08 reserved rate, payroll deduction codes PPKTR1, PPKTR2, PPKTR5, and PPKTR7 have been established. The employer rate is $.62 (.0765 X $8.08) and will be collected through the new payroll deduction code of PKADR1.
The Division of Facilities Management will perform the necessary deduction enrollments in SHARP for employees who currently have reserved spaces in the surface lots. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | December 11, 2001 | ||
---|---|---|---|
SUBJECT: | Changes to December 2001 Payroll Processing Schedule | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (Roger.Basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Changes to December 2001 payroll processing schedule due to December 24, 2001 being designated as a state holiday. |
As a result of Governor Graves declaring Monday, December 24, 2001 as an additional state holiday for 2001, the following changes have been made to the December payroll processing schedule:
Wednesday, December 19, 2001
The Run 'B' off-cycle for the payroll period ending December 8, 2001 continues to be scheduled for December 19, 2001. The check issue date for the Run 'B' off-cycle will be moved from Monday, December 24, 2001 to Wednesday, December 26, 2001.
Thursday, December 20, 2001
Regents Run 'C' off-cycle files for the payroll period ending December 8, 2001 are due to the Department of Administration by 5:00 p.m.
Monday, December 24, 2001
The Run 'C' off-cycle for the payroll period ending December 8, 2001 continues to be scheduled for December 24, 2001. The check issue date for the Run 'C' off-cycle continues to be Friday, December 28, 2001. Agencies are reminded that this is the last off-cycle for 2001 paycheck adjustments and reversals. Adjustments processed in the December 24, 2001 Run 'C' off-cycle will be reflected on the employee's 2001 Form W-2. Please note that although Monday, December 24, 2001 is a state holiday, the SHARP system will be operational and on-line agencies will have access to SHARP until 5:00 p.m.
Wednesday, December 26, 2001
Paysheets for the payroll period ending December 22, 2001 will be created on Wednesday, December 26, 2001 rather than Monday, December 24, 2001. This delay will continue to allow agencies one working day after the end of the pay period to enter job actions effective for the payroll period ending December 22, 2001 and to have the job changes reflected on the paysheets.
The first preliminary payroll calculation for the payroll period ending December 22, 2001 is scheduled for Wednesday, December 26, 2001. Please note that there will only be two preliminary payroll calculations for the payroll period ending December 22, 2001.
Thursday, December 27, 2001
The second preliminary payroll calculation for the payroll period ending December 22, 2001 is scheduled for Thursday, December 27, 2001.
Friday, December 28, 2001
The final payroll calculation and confirm for the payroll period ending December 22, 2001 is scheduled for Friday, December 28, 2001. Regent's on-cycle files for the payroll period ending December 22, 2001 are due to the Department of Administration by 6:00 a.m. on Friday, December 28, 2001.
Attached is a revised calendar for the month of December 2001 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 02-P-012 dated October 1, 2001. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
Please make sure to note the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). On-line agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.
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Attachment: December Calendar (.pdf)
DATE: | December 18 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation and Voluntary Tax Sheltered Annuity Limits | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
Sunni Zentner | (785) 296-7058 | (sunni.zentner@da.state.ks.us) | |
APPROVAL: | |||
SUMMARY: | 2002 Deferred Compensation and Voluntary Tax Sheltered Annuity Changes |
Per the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual deferred compensation and voluntary tax sheltered annuity (VTSA) limits will change effective January 1, 2002 as follows:
457(b) Deferred Compensation:
The deferred compensation annual contribution limit increases from the lesser of $8,500 or 33 1/3% of includible compensation to the lesser of $11,000 or 100% of includible compensation. The dollar limit will increase annually by $1,000 through plan year 2006 and indexed for inflation by $500 increments beginning in plan year 2007.
The deferred compensation special catch-up limit increases from $15,000 to two times the normal limit, which is $22,000 for plan year 2002. This special catch-up is only available to employees who are within three years of normal retirement age.
A new catch-up provision for participants age 50 or over (Benefit Plan 457DEC) increases the annual contribution limit by $1,000 making the limit $12,000 for plan year 2002. Please note that the two different catch-up provisions cannot be used concurrently.
403(b) VTSA:
The limit on annual contributions for tax sheltered annuities increases from the lesser of 25% of includible compensation or $35,000 to the lesser of 100% of includible compensation or $40,000. The dollar limit is subject to future indexing in $1,000 increments.
The limit on elective deferrals will increase from $10,500 to $11,000. The dollar limit will increase annually by $1,000 through plan year 2006 and indexed for inflation by $500 increments beginning in plan year 2007.
The Act repeals the Maximum Exclusion Allowance. The Alternative Limits A (Year of Separation), B (Any Year Limit), and C (Overall Limit) are also repealed.
A new catch-up provision for participants age 50 or over increases the annual contribution limit by $1,000 making the limit $12,000 for plan year 2002.
The Act repeals the coordination requirements for employees who participate in both 403(b) - Tax Sheltered Annuities, and 457(b) - Deferred Compensation plans. Employees eligible for both plans will be able to defer the full amount to both plans.
Aetna will notify all Deferred Compensation Plan Participants that are currently at the limits, giving them the opportunity to increase their contributions. They will also notify those participants eligible for the new catch-up provision. Please inform employees in your agency of this change.
Regent's institutions are responsible for applying the maximum VTSA formulas for their employees.
DB:JJM:kao
DATE: | December 18, 2001 | ||
---|---|---|---|
SUBJECT: | Missouri State Withholding | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Change in Missouri State Withholding Tax Formula for 2002 |
The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2002. The following table is a list of current filing statuses and the standard deduction for 2002.
Filing Status | Standard Deduction |
---|---|
Single | $4,700.00 |
Married and spouse works | $3,925.00 |
Married and spouse does not work | $7,850.00 |
Head of Household | $6,900.00 |
For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4, no deduction for allowances two through four, and then $1,200.00 per allowance for allowances five and greater. Please note that allowances two through four are not allowed using the withholding tax formula; however, allowances two through four are still used for employers using the withholding tax tables. Please find attached copies of the 2002 Missouri Withholding Tax Formula and MO W-4 for your review.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.
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Attachment: MO W-4 and 2002 Missouri Withholding Tax Formula (.pdf)
DATE: | December 20, 2001 | ||
---|---|---|---|
SUBJECT: | New Tables for Earned Income Credit for 2002 | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 2002 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 2002. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2002. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.
The Internal Revenue Service has released the 2002 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2002 Form W-5 is attached; the 2001 Form W-5 expires on December 31, 2001. The 2002 Form W-5 must be filed with the employer before advance 2002 payments can begin. Generally, employees have to successfully answer questions listed on page 2 on Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2002 earned and adjusted gross income will each be less than $29,201.00 for single employees or $30,201.00 if filing jointly (include spouses income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the EIC for 2002 unless married to an U.S. citizen or resident and elects to be taxed as a resident alien for all of 2002.
Beginning in 2002, the IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments. Please note that the IRS created the new 'Married Without Spouse Filing' category and issued the new tables in late December 2001. Because of this change, no updates are currently available to the SHARP system to reflect the new category and rates. Agencies are advised to continue to use the 'Single or Married Without Spouse Filing' selection on the employee's Federal Tax Data 2 panel (Compensate Employees/Maintain Payroll Data U.S./Use/Employee Tax Data) for employees who qualify for the 'Married Without Spouse Filing Certificate' status. Agencies are also advised that the difference in rates between the 'Single or Head of Household' status and 'Married Without Spouse Filing Certificate' status is minimal. Once the programming changes have been made to SHARP for the new 'Married Without Spouse Filing Certificate' status and rates, agencies will be notified and qualified employees can be assigned to the new status for all remaining paychecks issued in 2002.
The Department of Administration updated the existing SHARP federal tax data records on December 17, 2001, for all employees claiming the EIC in 2001 to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates are effective January 1, 2002. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 2002; paper agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 2002. The new tax dated row should be added effective January 2, 2002 and will need to be entered into SHARP by 5:00 p.m. on Friday, December 28, 2001 in order to be reflected in the on-cycle paycheck dated January 4, 2002. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information.
The Division of Accounts and Reports provided a listing to agencies, which identifies all employees whose EIC status was updated in SHARP on December 17, 2001. The listing includes department, employee ID, name, SSN, and EIC exempt status.
The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regent's institutions are responsible for implementing the new EIC rates in their respective payroll systems.
DB:JJM:rdb
Attachments:
Advanced Earned Income Credit Formulas,
W-5 Earned Income Credit Advance Payment Certificate (.pdf)
DATE: | January 2, 2002 | ||
---|---|---|---|
SUBJECT: | New Supplemental Rate for Federal Withholding Tax for 2002 | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Supplemental Rate Effective for Paychecks Issued On or After January 1, 2002. |
The Internal Revenue Service (IRS) has issued the new supplemental withholding tax rate effective for all paychecks issued on or after January 1, 2002. The supplemental withholding rate is decreased to 27% effective January 1, 2002. The federal percentage tables for computing the federal withholding tax were issued in Informational Circular 02-P-024.
The Department of Administration will make all of the necessary changes in the computation of supplemental federal withholding taxes for SHaRP agencies. Regents' institutions are responsible for implementing the new supplemental withholding tax rate in their respective payroll systems.
DB:JJM:cj
DATE: | January 3, 2002 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Codes IWE and IWN | ||
EFFECTIVE DATE: | Pay Period Beginning December 23, 2001 and Ending January 5, 2002 paid January 18, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Codes IWE and IWN for the new Inclement Weather Policy |
A new Inclement Weather Policy has been issued for all agencies of the Executive Branch. This policy supersedes the 1992 Inclement Weather Policy and is effective on December 23, 2001.The following two new earnings codes have been added to SHARP for the Inclement Weather Policy:
Code | Description | Check Stub |
---|---|---|
IWE | Inclement Weather-Exempt | Regular Pay |
IWN | Inclement Weather-Non-exempt | Regular Pay |
Both non-exempt and exempt employees record this leave in .25 hour increments. Employees who work during the period of Declared Inclement Weather shall record hours worked as they normally would had there not been a Declaration of Inclement Weather. Employees who received prior approval for authorized leave during the period covered by the Declaration of Inclement Weather shall record the leave they originally requested instead of IWE or IWN.
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new earnings codes to the SHARP payroll system. Regents instituions are responsible for ensuring the new earnings codes are available on their individual systems.
DB:JJM:cj
DATE: | January 8, 2002 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2001 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (Sunni.Zentner@da.state.ks.us) |
Debbie Esquibel | (785) 368-6313 | (Debbie.Esquibel@da.state.ks.us) | |
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2001 W-2 Statements |
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2001 W-2 Wage and Tax Statement for each employee of your agency. Agencies that are on-line users of SHARP will find the report in your agency mailbox on the MVS dated December 29, 2001. The KTXPR55 listing will be distributed to paper user agencies via the normal report distribution process.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2001 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2001 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2001 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 16, 2002. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2001 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
Duplicate laser printed W-2's for calendar year 2001 will be printed for distribution to the agencies on each Monday, beginning February 4, 2002 and continuing through April 15, 2002. The agencies are requested to submit one blanket request for duplicate 2001 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests should be in social security number order and should include each employee's name and employee ID in addition to the SSN. Requests for duplicate W-2's for years prior to 2001 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.state.ks.us.
Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. On-line agencies may also want to consider utilizing the SHARP KPAY318, 'Year to Date Balances' report to assist in answering W-2 related questions. The KPAY318 report is located in SHARP v7.02 under the 'Compensate Employees' window, 'Maintain Payroll Data U.S.', 'Report', 'Year to Date Balances'. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Please note that on-cycle paychecks dated December 21, 2001 and the off-cycle paychecks dated December 28, 2001 are included in the 2001 W-2 amounts.
DB:JJM:rdb
DATE: | January 8, 2002 | ||
---|---|---|---|
SUBJECT: | 2002 W-2 Production Reports | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (Sunni.Zentner@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | 2002 W-2 Production Reports to be Run Throughout the Year |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2002 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. Following is a list of the dates the 2002 W-2 production reports are scheduled to be generated:
- Friday, February 15, 2002
- Friday, March 15, 2002
- Friday, April 12, 2002
- Friday, May 10, 2002
- Friday, June 7, 2002
- Friday, July 5, 2002
- Friday, August 2, 2002
- Friday, August 30, 2002
- Friday, September 27, 2002
- Friday, October 25, 2002
- Friday, November 8, 2002
- Friday, November 22, 2002
- Friday, December 6, 2002
- Wednesday, December 18, 2002
- Monday, December 23, 2002
- Friday, December 27, 2002 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency directory on the first working day following the above listed scheduled dates. Agencies should access the TAX910ER through Rapid Filer to review the report; a copy of the TAX910ER will be distributed to paper agencies. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2s for 2002 are complete, a final KTXPR55 report will be generated for each agency's information and review.
In addition, the Regent's institutions will receive the report KTAX900 in their agency directory. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
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DATE: | January 8, 2002 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts | ||
EFFECTIVE DATE: | January 6, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular bi-weekly dues for members of KAPE will be changing effective with the payroll period beginning January 6, 2002 and ending January 19, 2002, paid February 1, 2002 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.35 or Less | $ 588.00 or Less | $ 6.25 |
ORG002 | $ 7.36 - $ 8.51 | $ 588.80 - $ 680.80 | $ 6.75 |
ORG003 | $ 8.52 - $ 9.39 | $ 681.60 - $ 751.20 | $ 7.25 |
ORG004 | $ 9.40 - $ 10.35 | $ 752.00 - $ 828.00 | $ 7.75 |
ORG005 | $ 10.36 - $ 11.41 | $ 828.80 - $ 912.80 | $ 8.25 |
ORG006 | $ 11.42 or Greater | $ 913.60 - or Greater | $ 8.80 |
ORG888 | KU Medical Center - Nurses | $ 8.80 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $ 6.95 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 1, 2002.
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DATE: | January 11, 2002 | ||
---|---|---|---|
SUBJECT: | Deletions from the Approved List of Providers for Voluntary Tax Sheltered Annuities | ||
EFFECTIVE DATE: | Payroll Period Beginning January 6, 2002 and Ending January 19, 2002, Paid February 1, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Notification from the Kansas Board of Regents to Remove Three Companies from the Approved List of Providers for Voluntary Tax Sheltered Annuities |
The Kansas Board of Regents has notified Payroll Services to remove the following three companies from the list of 'approved' providers for Voluntary Tax Sheltered Annuities:
<table width="90%" summary="This table lists the companies removed from the approved VTSA providers by Company Code and Name"> Company Code Company Name 133 Connecticut Mutual Life Insurance Company 239 Fidelity Standard Life Insurance Company 358 Jackson National Life Insurance Company
These VTSA companies have no current subscribers and were deleted with an effective date of January 6, 2002 in the SHARP system. The vendor table in STARS has also been updated.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.
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DATE: | February 25, 2002 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts for AFSCME Council 72 | ||
EFFECTIVE DATE: | Payroll Period Beginning February 17, 2002 and Ending March 2, 2002, Paid March 15, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, 1417, 1419, 1438, 1439, 1469 and 3371 |
Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Locals 1270 (ORG270), 1357 (ORG357), 1417 (ORG417), 1419 (ORG419), 1438 (ORG438), 1439 (ORG439), and 1469 (ORG469) will be increased to $11.16. In addition, the dues for Local 3371 (ORG371) will be increased to $13.52. The organizational dues deduction amounts for the AFSCME locals affiliated with Local 1715 will be as follows effective with the on-cycle paychecks dated March 15, 2002:
<table width="75%" summary="This table shows the organizational dues deduction amounts for the AFSCME locals affiliated with Local 1715 effective with the March 15 paychecks."> Deduction Code Union Dues Deduction ORG270 Local 1270 $11.16 ORG357 Local 1357 $11.16 ORG371 Local 3371 $13.52 ORG417 Local 1417 $11.16 ORG419 Local 1419 $11.16 ORG438 Local 1438 $11.16 ORG439 Local 1439 $11.16 ORG469 Local 1469 $11.16
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DATE: | March 6, 2002 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amounts for AFSCME Council 72 | ||
EFFECTIVE DATE: | Payroll Period Beginning February 17, 2002 and Ending March 2, 2002, Paid March 15, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Council 72, Local 1689 |
Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Local 1689 (ORG689) will be increased to $ 11.16 effective with the on-cycle paychecks dated March 15, 2002. This change is in addition to the AFSCME Council 72 organizational dues rate changes recently announced in Informational Circular No. 02-P-036 dated February 25, 2002.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | March 7, 2002 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | (abby.moore@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Payroll Services has been notified of an address change for the American United Life Insurance Company (VTSA #057). Effective immediately remittances must be mailed to the following new address:
American United Life Insurance Company
5771 Reliable Parkway
Chicago, IL 60686-0057
Vendor number 350145825-01 in STARS has been updated to reflect this address change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents institutions are responsible for ensuring these changes are reflected in their individual systems.
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DATE: | April 12, 2002 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for the Kansas State Troopers Association | ||
EFFECTIVE DATE: | Payroll Period Beginning March 31, 2002 and Ending April 13, 2002, Paid April 26, 2002 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG281, ORG282 and ORG283 |
The bi-weekly organization dues for members of the Kansas State Troopers Association will increase for all three levels as follows:
DEDUCTION CODE | NEW RATE |
---|---|
ORG281 | $ 13.84 |
ORG282 | $ 20.52 |
ORG283 | $ 24.67 |
The new rates will become effective with the payroll period beginning March 31, 2002 and ending April 13, 2002, paid April 26, 2002.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues organization. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after April 26, 2002.
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DATE: | April 23, 2002 | ||
---|---|---|---|
SUBJECT: | Earned Income Credit for 2002 | ||
EFFECTIVE DATE: | Payroll Period Beginning April 14, 2002 and Ending April 27, 2002, Paid May 10, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Earned Income Credit Category and Table Added to SHARP |
In late December 2001, the Internal Revenue Service issued the 2002 Advance Earned Income Credit tables. With the release of the 2002 tables, the IRS established a new table and status for 'Married Without Spouse Filing Certificate'. Because of the late release date, no updates were available to SHARP to reflect this change. The programming changes have now been made to SHARP and the new 'Married Without Spouse Filing Certificate' status is now available on the Federal Tax Data 2 panel (Compensate Employees/Maintain Payroll Data U.S./Use/Employee Tax Data). Qualified employees can now be assigned to the new status for all remaining paychecks in 2002.
Please find attached 2002 Form W-5, Earned Income Advance Payment Certificate, and the tables for computing the advanced earned income credit. Agencies are reminded that in addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect 2002 earned and adjusted gross income to be less than $29,201.00 for single employees and less than $30,201.00 for married employees (include spouses income if filing jointly). An employee cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income). A nonresident alien may not claim the EIC for 2002 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2002.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring these changes are made to their individual payroll systems and are effective for all paychecks issued on or after May 10, 2002.
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Attachments:
Advanced Earned Income Credit Formulas
W-5 Earned Income Credit Advance Payment Certificate (pdf)
DATE: | May 10, 2002 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking - Security Benefit Parking Lot | ||
EFFECTIVE DATE: | Payroll Period Beginning April 28, 2002 and Ending May 11, 2002, Paid May 24, 2002 | ||
ONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKT0B, PKT0BB, PPKTRB, and PKTRBB |
To facilitate the collection of parking fees for the Security Benefit Parking Lot, payroll deduction codes PPKT0B (pre-tax parking, non-reserved), PKT0BB (after-tax parking, non-reserved), PPKTRB (pre-tax parking, reserved), and PKTRBB (after-tax parking, reserved) have been added to SHARP effective April 28, 2002. The employee deduction for the non-reserved spaces (codes PPKT0B and PKT0BB) will be $6.92 per bi-weekly payroll period. The employer rate for the non-reserved spaces, payroll deduction code PKAD01 (which is already established), will be $0.53 (.0765 X $6.92) per bi-weekly payroll period. The employee deduction for the reserved spaces (codes PPKTRB and PKTRBB) will be $8.08 per bi-weekly payroll period. The employer rate for the reserved spaces, payroll deduction code PKADR1 (which is already established) will be $0.62 (.0765 X $8.08).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | May 13, 2002 | ||
---|---|---|---|
SUBJECT: | Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle | ||
EFFECTIVE DATE: | January 1, 2002 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Information Concerning Employee Use of State-Owned Vehicles |
The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated and Kansas Administrative Regulations.
BACKGROUND
In general, an employee's personal (commuting) use of a state-owned vehicle is a taxable fringe benefit. Commuting is defined as travel back and forth between the employee's residence and official workstation. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.
POLICY
K.S.A. 8-301 states that all state-owned vehicles are for official business only and may not be used for private business or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:
(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.
(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.
(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official work station and the destination by more than 10 miles.
Kansas Administrative Regulation 1-17-2(b)(1) allows field employees, such as inspectors, to commute between the field employee's residence and work sites in a state-owned or leased vehicle when the employee's residence is designated as the official work station. The employee's residence can be designated as the official workstation when over 50% of the employee's work time involves direct travel from his or her residence.
Please note that meeting the Kansas Administration Regulation requirements to commute with the state-owned vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of the vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle (listed in Appendix D) or the employee's residence meets the IRS's 'principal place of business' test discussed below.
PRINCIPAL PLACE OF BUSINESS TEST
Field employees generally do not report fringe benefit income for official travel between the employee's residence and work sites. To be excluded from the IRS's fringe benefit income reporting requirements, the employee's residence must qualify as the employee's 'principal place of business'. A principal place of business is defined as a place of business which is used by the taxpayer for the administrative or management activities of a trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business. If the employee works both out of his or her home (because it has been designated as the official work station) and a state provided office, the employee's principal place of business needs to be determined by examining all the facts and circumstances.
AGENCY RESPONSIBILITY
Agencies shall identify and notify those employees who use state-owned vehicles and who park those vehicles overnight at their residences (commuting) that the commuting use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS discussed in Appendix A unless the vehicle is listed in Appendix D or the employee's residence meets the 'principal place of business test'.
Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include at a minimum the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).
Agencies shall provide the payroll system with reports and data to:
- Record fringe benefit income chargeable to each affected employee.
- Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
- Calculate and withhold from each affected employee's pay the federal and state income tax due.
- Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
- Remit all withheld taxes and contributions to the appropriate authorities.
- Report on each affected employee's W-2, the total fringe benefit income for the calendar year.
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Attachment A: IRS Approved Methods of Reporting Fringe Benefit Income (.pdf)
Attachment B: Statement of Personal Usage for State Provided Vehicles (.pdf)
Attachment C: Daily Travel Log (.pdf)
Attachment D: Vehicles Excluded From Fringe Benefit Income Reporting Requirements (.pdf)
DATE: | May 29, 2002 | ||
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SUBJECT: | Fiscal Year End Payroll Processing for FY 2002 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | (joyce.dickerson@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular concerning fiscal year 2003 payroll contribution rates will be issued as soon as the information is available.
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 8, 2002 will use fiscal year 2002 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 8, 2002 will use fiscal year 2003 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).
Tax Rates
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. Note for Regents: The use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.
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 B (processed June 19, paid June 24) and Run C (processed June 24, paid June 27) for the payroll period ending June 8, 2002 will be charged to fiscal year 2002 expenditures. Run A (processed July 1, paid July 5) for the payroll period ending June 22, 2002 will be charged to fiscal year 2003 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 24, 2002 (paid June 27) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2002 expenditures.
Once the Run C off-cycle for the period ending June 22, 2002 (processed July 8, paid July 11) has been processed, agencies should not request or process paycheck reversals until STARS FY 2002 closing has been successfully completed. STARS is scheduled to resume processing July 22, 2002.
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 17 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 06/09/2002 (beginning date of the first on-cycle payroll charged to FY2003). The Budget End Date will be 06/08/2003. On June 17 please refrain from making updates to these panels until after the update has been completed and you can view the 06/09/2002 effective dated row. When adding new rows for FY2003, agencies should verify that 06/08/2003 was used as the Budget End Date for FY2003.
GHI Adjustments
As of July 1, 2002, NO payroll processing for GHI adjustments should be made for contract year 2000. 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 2000.
Julian Date Reset
The julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2002. 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 24, paid July 27) will have the 359 julian date in the document number and expenditures will be charged to fiscal year 2002. The off-cycle Run A (processed July 1, paid July 5) will have the 001 julian date in the document number and expenditures will be charged to fiscal year 2003.
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 2003.
Reminders
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 on-cycle paycheck for the period and will require special handling.
- 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'.
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DATE: | May 29, 2002 | ||
---|---|---|---|
SUBJECT: | Earnings Codes | ||
EFFECTIVE DATE: | June 9, 2002 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Inactivating SHARP Earnings Codes |
Currently in SHARP there are 218 active earnings codes. In order to ensure that accurate and meaningful earnings data is captured and stored in SHARP, 54 earnings codes will be inactivated effective with the first pay period in Fiscal Year 2003, which is the pay period beginning June 9, 2002.
Codes to inactivate were chosen based on low usage, policy or regulation changes. Some of the codes are only applicable to Regent Institutions or specific state agencies. An on-going effort will be made to evaluate earnings code usage each year and make necessary updates.
Earnings codes that are inactive cannot be entered on timesheets for pay periods ending after June 8, 2002. Paychecks that contain an inactive code cannot be adjusted through the reversal/adjustment process, as payroll error messages will result. In these situations, the adjustment request should be submitted to Accounts & Reports, Payroll Section on a form DA-180, Paycheck Reversal/Supplemental/Adjustment.
The codes to be inactivated are:
AHR Additional Hours
BD1 Board Member-$65 Daily Rate
BD2 Board Member-Judicial Qualif.
BD3 Board Member-Judicial Nomin.
BD4 Board Member-Disciplinary
BD5 Board Member-$66.63 Daily Rate
BD6 Board Member-$69.29 Daily Rate
BD7 Board Member-$72.06 Daily Rate
BD8 Board Member-$74.58 Daily Rate
BDS Board Member-$35 Daily Rate
CSB Civil Service Board Members
CTA Comp Time Payout Accrual Hours
CTS Comp Time Payout Service Hours
HCB Holiday Comp 1.0-Bank Credit
HCL Holiday Comp Earned over HDC
HDL Holiday Pay 1.5 over HDC
HPE Holiday Pay for Exempts
HTA Holiday Comp Time Payout Accrl
HTS Holiday Comp Time Payout Servc
K01 KUMC Shift Rate C
K02 KUMC Shift Rate D
K03 KUMC Shift Rate F
K04 KUMC Shift Rate G
K05 KUMC Shift Rate E
K06 KUMC Shift Rate H
K07 KUMC Shift Rate T
K08 KUMC Shift Rate-Day 1
K09 KUMC Shift-Nurse add on A
K10 KUMC Shift-Nurse add on B
K11 KUMC Shift-Nurse add on C
K12 KUMC Shift-Nurse add on D
K15 Shift 2 for SP1 Students
K16 Shift 3 for SP1 Students
K17 Overtime for STR Students 1.5
LG1 Legislative Daily Rate-$60
LG2 Legislative Daily Rate-$62
LG3 Legislative Daily Rate-$66.63
LG4 Legislative Daily Rate-$69.29
LG5 Legislative Daily Rate-$72.06
LG6 Legislative Daily Rate-$74.58
LGD Legislative Daily Rate-$65
N17 December 17th Non-exempt
NR1 Nonresident Alien-Inc code 15
NR3 Nonresident Alien-Inc code 17
O28 Overtime-28 day ee
REM Other Remuneration
RTN Retro Negative Pay
RTR Retro Pay
ST3 Call Back Premium
ST4 KUMC Evening
ST5 KUMC Night/Weekend
ST6 KUMC Evening/Night
WCA Workers Compensation-Amount
WCD Workers Comp Dollars
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DATE: | June 3, 2002 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates will require entry into the SHARP system through Compensate Employees window, Maintain Payroll Data U.S. menu, Additional Pay panel. Paper agencies should complete an Employee Data Sheet (DA-218 Part B) and submit it to the Division of Personnel Services for entry into SHARP.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents are responsible for updating any rate changes into their payroll system.
Attachment: DA-171 (pdf)
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DATE: | July 5, 2000 | ||
---|---|---|---|
SUBJECT: | Changes to SHARP Savings Bond Process | ||
EFFECTIVE DATE: | July 1, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Changes to SHARP Savings Bond Process |
An employees Bond Specification Record is comprised of a bond denomination field, a bond owner field, other registrant type field (co-owner/beneficiary), and co-owner/beneficiary ID field. When a change is made to any of these fields, a new bond priority is created. Currently, if a balance remains with the old bond priority, the balance has to be identified and moved through a manual process to the new bond priority. To automate this process, SHARP agency personnel making changes to an employees Bond Specification Record after June 30, 2000 will encounter a new 'pop-up message if the employee has a current balance not equal to zero. This message will state that a balance exists for the employees old bond data combination and will automatically be applied to the new bond data combination being entered. Agency personnel should click OK to complete the record save.
Transactions will be written to the Savings Bond Activity Log showing the transfer of balances from the old bond combination to the new bond combination. If the employee does not want the balance transferred forward to the new bond combination to be used towards the purchase of a bond, agency personnel can request a refund through the regular refund process.
Because of these changes to this process, changes to the bond specification records should not be future-dated further than two weeks.
For Regent Institutions, this process will be triggered automatically when changes are made to the Bond Specification Records through the Regents Benefits Interface.
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DATE: | July 11, 2000 | ||
---|---|---|---|
SUBJECT: | Addition of New Earnings Codes | ||
EFFECTIVE DATE: | Payroll Period beginning July 23, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Earnings Codes for FY 2001 |
Earnings Codes 'BDM' and 'LGP' have been added to SHARP and will be effective for the payroll period beginning July 23, 2000 and ending August 5, 2000 paid August 18, 2000. The descriptions of the new codes are as follows:
Code | Description | Check Stub |
---|---|---|
BDM | Board Member Daily Pay | Regular |
LGP | Legislative Daily Pay | Regular |
Please note that earnings code 'LGP' may only be used by agencies 422 and 428.
With the addition of earnings codes 'BDM' and 'LGP', earnings codes 'BD1-BD9', 'BDS', 'CSB', 'LG1-LG7', and 'LGD' are not to be used after July 23, 2000 except for processing adjustments for daily pay for payroll periods prior to the period beginning July 23, 2000.
Earnings codes 'BDM' and 'LGP' are daily pay codes, so agencies should continue to report 1' in Time and Leave for each day worked by a board member or legislator. Please note that with the addition of these earnings codes, that board member's and legislator's daily rate of pay will be read from the their job record rather than the earnings table. Agencies will be responsible for updating the hourly rate field when regulations or statutes change. This change will provide consistency statewide in board members or legislators daily pay, will eliminate the creation of new earnings codes when daily rates of pay change, and will help ensure that compensation rates on the job records are monitored and kept current.
DB:JJM:rdb
DATE: | July 11, 2000 | ||
---|---|---|---|
SUBJECT: | Addition of New Deduction Code | ||
EFFECTIVE DATE: | Payroll Period beginning July 23, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | roger.basinger@da.state.ks.us |
APPROVAL: | |||
SUMMARY: | Addition of New Deduction Code for the Kansas Learning Quest Education Savings Program |
The Kansas Learning Quest Education Savings Program became available July 1, 2000 and is administered by the Kansas State Treasurer's Office. American Century Investment Company was selected as the program manager and is responsible for managing the investments.
House Bill 2655 authorized a payroll deduction for the Learning Quest program to become effective in Fiscal Year 2001. The Learning Quest bi-weekly payroll deduction will be effective for the payroll period beginning July 23, 2000 and ending August 5, 2000 paid August 18, 2000. The Learning Quest deduction will be taken on an after tax basis and will have the deduction code of 'LEARNQ'. The new deduction will be displayed on paycheck stubs/advices and the Regent's warrant registers as 'LEARN QUEST'.
Payroll deductions for the Learning Quest program will be remitted to American Century on payday. American Century should also post the payroll deductions to the individual employee accounts on payday.
State of Kansas employees interested in participating in the Learning Quest program through payroll deduction should complete the following steps:
Call 1-800-579-2203 or visit www.learningquestsavings.com to request an enrollment packet.
- Advise the representative they are a State of Kansas employee interested in participating in the payroll deduction program.
- An enrollment packet will then be sent to the employee's home with the payroll deduction forms. The payroll deduction forms need to be completed and returned to American Century.
- After enrollment is approved by American Century, a confirmation letter will be sent to the employee.
- If the employee elects a payroll deduction, the employee will give the confirmation letter to the agency's personnel/payroll officer for entry into the payroll system. Agency personnel are reminded that no payroll deduction should be set up for a Learning Quest Account without the confirmation letter from American Century to the employee.
SHARP on-line agencies will enter enrollment data for Learning Quest through the General Deduction Data panel using the following path: Go, Compensate Employees, Maintain Payroll Data U.S., Use, General Deduction Data, Update/Display All. SHARP paper agencies should complete an 'Employee Data Sheet' adding the deduction for the employee and submit the 'Employee Data Sheet' to the Division of Personnel Services. The Division of Personnel Services is currently revising the 'Employee Data Sheet' to enable entry of the Learning Quest deduction. SHARP paper agencies should enter the 'LEARNQ' deduction code and the appropriate deduction amount on the 'Employee Data Sheet' in the section entitled 'Other General Deductions'. Note: the deduction calculation routine for the 'LEARNQ' deduction should be equal to 'flat amount'.
The Learning Quest bi-weekly deduction will become effective the next payroll period following the date the confirmation letter is signed, and will remain in effect until written authorization is received to cancel or change the deduction, or until termination of employment.
Index code 9762 has been added to the STARS system for each of the Regent's payroll funds to record the receipt of the deduction by the individual Regent's institutions.
The Division of Accounts and Reports, Payroll Systems Team will add the Learning Quest deduction to the SHARP payroll system. Regent's institutions are responsible for ensuring that the Learning Quest deduction is available on their individual systems for paychecks issued on or after August 18, 2000.
DB:JJM:rdb
DATE: | August 22, 2000 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amount for AFSCME Council 72 | ||
EFFECTIVE DATE: | August 19, 2000 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Council 72, Locals 1417, 1419, 1438, 1439 and 1689 |
Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Locals 1417 (ORG417), 1419 (ORG419), 1438 (ORG438), 1439 (ORG439) and 1689 (ORG689) will be increased to $10.74. This change is effective for the payroll period beginning August 6, 2000 and ending August 19, 2000, paid September 1, 2000. The deduction table for AFSCME Councils after the change will be as follows:
Deduction Code | Union | Dues Deduction |
---|---|---|
ORG270 | Local 1270 | $10.11 |
ORG357 | Local 1357 | $9.95 |
ORG371 | Local 3371 | $13.10 |
ORG417 | Local 1417 | $10.74 |
ORG419 | Local 1419 | $10.74 |
ORG438 | Local 1438 | $10.74 |
ORG439 | Local 1439 | $10.74 |
ORG469 | Local 1469 | $10.63 |
ORG689 | Local 1689 | $10.74 |
ORG777 | Local 2777 | $9.42 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 1, 2000.
DB:JJM:rdb
DATE: | August 30, 2000 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30 | ||
EFFECTIVE DATE: | Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000 | ||
CONTACT: | Roger Basinger | (785)296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University-Kansas National Education Association, deduction code 'ORG030' will change from $20.85 to $21.40 per bi-weekly payroll period. The new rate will become effective for the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHaRP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 29, 2000.
DB:JJM:rdb
DATE: | August 30, 2000 | ||
---|---|---|---|
SUBJECT: | Increased Parking Fees for the Wichita State Office Building | ||
EFFECTIVE DATE: | Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Increased Parking Fees for the Wichita State Office Building - Payroll Deduction Codes PKW01C and PKW02A |
Due to the increase in parking fees for the Wichita State Office Building, payroll deduction codes PKW01C (garage parking) and PKW02A (surface parking) are being increased to $9.70 and $5.08, respectfully, per bi-weekly payroll period. This increase will become effective for the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems and is effective for paychecks issued on or after September 29, 2000.
DB:JJM:rdb
DATE: | August 31, 2000 | ||
---|---|---|---|
SUBJECT: | Addition of New Holiday Credit Earning Codes HOB, HOC, HON and HOO | ||
EFFECTIVE DATE: | Payroll Period beginning September 3, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Holiday Credit Earnings Codes |
Kansas Administrative Regulation 1-5-24 was amended to allow an official state holiday to be counted as time worked for employees in non-exempt positions when all three of the following conditions are met.
- The employee is asked to report to work in order to respond to a building, highway or public safety emergency, as determined by the appointing authority.
- This work is performed outside the employee's normal work schedule for the workweek or work period that includes the official state holiday.
- The appointing authority authorizes inclusion of that official state holiday in calculating the time worked by the employee.
The appointing authority shall also notify the Director of Personnel Services, in writing, of both the nature of the emergency, and the name and position number of each employee for whom the state holiday will be counted as time worked.
To facilitate the change to K.A.R. 1-5-24, the following four holiday credit earnings codes have been added to SHARP:
CODE | DESCRIPTION | CHECK STUB |
---|---|---|
HOB | Holiday Comp Credit-Bank-FLSA, does not add to gross pay | |
HOC | Holiday Comp Credit 1.0-FLSA, does not add to gross pay | |
HON | Holiday Credit-Not Sched-FLSA, adds to gross pay | Holiday Pay |
HOO | Holiday Credit 1.0-FLSA, adds to gross pay | Holiday Pay |
All these codes count towards FLSA hours worked and become effective with the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000. For specific information on the correct usage of the new codes, please consult the SHARP Customer Service website ( SHARP Website), or the SHARP Message Panel (Message 406, dated August 30, 2000), or either Kraig Knowlton (785) 296-1082 or Brent Smith (785) 296-1432 with the Division of Personnel Services.
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new holiday credit earnings codes to the SHARP payroll system. Regent's institutions are responsible for ensuring the holiday credit earnings codes are available on their individual systems for paychecks issued on or after September 29, 2000.
DB:JJM:rb
DATE: | September 6, 2000 | ||
---|---|---|---|
SUBJECT: | Addition of New Earnings Codes VLT, VLK, SLK, CTK, and HTK | ||
EFFECTIVE DATE: | Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Earnings Codes |
On July 1, 1993, legislation changed the definition of 'final average salary' for KPERS pension purposes. For employees hired on or after July 1, 1993, 'final average salary' is based on 'salary' as defined by K.S.A. 74-4902 (34) rather than 'compensation'. KPERS has advised Payroll Services that KPERS retirement contributions should not be withheld from lump-sum termination payments for vacation leave, sick leave, compensatory time, and holiday compensatory time for employees hired on or after July 1, 1993, since these payments cannot be counted towards 'final average salary' for these employees.
The SHARP payroll system currently withholds KPERS contributions on all termination payments. If the employee was hired on or after July 1, 1993, KPERS notifies the employing agency that a refund should be processed. The agency then submits a DA-180 to Payroll Services and a manual payroll adjustment to refund the KPERS is processed.
Effective September 3, 2000, the following five new earnings codes will be established in SHARP to refund KPERS contributions from termination payments for employees hired after July 1, 1993:
Code | Description | Check Stub |
---|---|---|
VLT | Vacation Leave Payout-Termination-No KPERS | VL PAYOUT |
VLK | Vacation Leave Payout- No KPERS (Retirements) | VL PAYOUT |
SLK | Sick Leave Payout-No KPERS | SL PAYOUT |
CTK | Compensatory Time Payout - No KPERS | COMP PAYOUT |
HTK | Holiday Compensatory Time Payout - No KPERS | HOL CMP PAY |
Agencies are asked to note that SHARP will continue to use the existing earnings codes (VLN, VLP and SLP) when automatically generating the leave payout earnings codes on the employees' time and leave records. The existing earnings codes will continue to be subject to KPERS. Agencies should not change the employees' time and leave records to reflect the new earnings codes. Instead, the agency should wait for KPERS to send the notification that the employee was hired after July 1, 1993. Then, using the new earnings codes, agencies should process a paycheck adjustment to refund the erroneous KPERS contributions. Unless a paycheck has previously been adjusted, agencies will no longer have to submit a DA-180 to Payroll Services to have the refund processed. Please see Attachment A for examples on how the new codes are to be used.
The Division of Accounts and Reports, Payroll Systems Team will add these earnings codes to the SHARP Payroll System. Regent's institutions are responsible for ensuring these earnings codes are available on their individual systems.
DB:JJM:rb
DATE: | September 6, 2000 | ||
---|---|---|---|
SUBJECT: | Deletions from the Approved List of Providers for Voluntary Tax Sheltered Annuities | ||
EFFECTIVE DATE: | Payroll Period Beginning August 20, 2000 and Ending September 2, 2000, Paid September 15, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Request From the Kansas Board of Regents to Delete Six Companies from the Approved List of Providers for Voluntary Tax Sheltered Annuities |
The Kansas Board of Regents has requested removal of the following six companies from the list of 'approved' providers for Voluntary Tax Sheltered Annuities:
Company Code | Company Name |
---|---|
085 | Bankers Life Insurance of Nebraska |
091 | Berkshire Life Insurance Company |
096 | Beneficial Standard Life Insurance Company |
382 | Knights of Columbus |
462 | Mutual Benefit Company/SunAmerica |
665 | Southwestern Life Insurance Company |
These VTSA companies had no current subscribers and were deleted with an effective date of August 20, 2000 in the SHARP system.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.
DB:JJM:rb
DATE: | September 11, 2000 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Name Change |
Massachusetts General Life Insurance Company (VTSA #470) has changed its name to Conseco Life Insurance Company. Remittances should be made payable to Conseco Life Insurance Company and should be sent to the following address:
11815 North Pennsylvania
Box 1963
Carmel, IN 46032-4963
This company name change has been completed in the SHARP payroll system. The vendor table in STARS has also been updated to reflect the change in name and mailing address.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.
DB:JJM:rb
DATE: | September 27, 2000 | ||
---|---|---|---|
SUBJECT: | Parking Compensation Reduction Program | ||
EFFECTIVE DATE: | Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001 | ||
CONTACT: | Elaine Harris | (785) 296-7458 | (elaine.harris@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Pre-Tax Parking Payroll Deduction |
The State of Kansas Parking Compensation Reduction Program established pursuant to Section 132 of the Internal Revenue Code and K.S.A. 75-5535 was approved by the Secretary of Administration on July 28, 2000. The purpose of the Program is to provide a parking compensation reduction program that results in payment of parking fees by state employees for state owned or leased parking facilities (including the Signature Building) on a pre-tax basis. The Program authorizes employees to participate in a pre-tax parking payroll deduction where the amount of the parking deduction is not included in gross income. As a result, the employee does not pay employment taxes for federal withholding, state withholding, OASDI, and Medicare on the compensation reduction amount or parking fee.
In addition to parking administered by the Division of Facilities Management (DFM) or leased by the Department of Administration, other state owned or leased parking facilities may be included in the Program. Regents Institutions and other state agencies interested in having their owned or leased parking facilities in the Program should address inquiries to DFM Parking Administration and submit documentation showing the ownership or lease of the parking facilities desired for inclusion in the Program. The Program requires payroll deductions pursuant to K.S.A. 75-5535. Parking deductions pursuant to state agency payroll deduction plans authorized by K.S.A. 75-5536 do not qualify for the Program.
This Program will be administered in accordance with Section 132 of the Internal Revenue Code, and any regulations promulgated thereunder, and K.S.A. 75-5535, by the Division of Facilities Management (DFM) with the advice and approval of the Director of Accounts and Reports. Savings resulting from the reduction in employer paid FICA contributions will be paid to the Department of Administration for administration of the Program. Except for parking at Board of Regents institutions, the employer contribution deduction will be distributed 4.65% for Division of Facilities Management and 3.0% for the Division of Accounts and Reports. For parking administered by Board of Regents institutions, the employer contribution will be distributed 1.0% for the Regents institution, 2.5% for the Division of Accounts and Reports and 4.15% for the Division of Facilities Management.
The Program will utilize the "negative election permitted" approach. This means that employees who have parking payroll deductions in place under K.S.A. 75-5535 will automatically be enrolled in the pretax program unless the employee elects not to participate. DFM Parking Administration is responsible for notifying such employees of the opportunity to not participate in the Program. Elections not to participate shall be effective at the beginning of the next payroll period following the date the election not to participate is received by DFM Parking Administration or received by the affected Regents institution parking administration office in the case of Regents parking.
The salary reduction is a fixed dollar amount as stated on the signed parking contract for the parking facility. In the event the rates change, advanced notice will be given to affected employees who will have the option to elect not to participate. The Program will be provided on a bi-weekly basis that coincides with payroll periods and will be automatically renewed for subsequent periods until a timely election not to participate is received. Compensation reduction amounts are not refundable unless a timely election not to participate is received.
SHARP Agencies
- The following new general deduction codes will be established in SHARP to implement parking on a pre-tax basis for SHARP employees:
Current Deduction Code |
New Deduction Code |
Amount | City/Lot Designation |
---|---|---|---|
PKT01B | PPKT01 | $4.62 | Topeka/Lot #01 |
PKT02B | PPKT02 | $4.62 | Topeka/Lot #02 |
PKT04B | PPKT04 | $4.62 | Topeka/Lot #04 |
PKT05B | PPKT05 | $4.62 | Topeka/Lot #05 |
PKT06B | PPKT06 | $4.62 | Topeka/Lot #06 |
PKT07B | PPKT07 | $4.62 | Topeka/Lot #07 |
PKW01C | PPKW01 | $9.70 | Wichita/Lot #01 |
PKW02A | PPKW02 | $5.08 | Wichita/Lot #02 |
The following new general deduction codes will be established in SHARP to implement the employer contribution for pre-tax parking for SHARP employees:
Deduction Code | Amount |
---|---|
PPKAD1 | $0.35 ($4.62 X .0765) |
PPKAD2 | 0.74 ($9.70 X .0765) |
PPKAD3 | 0.39 ($5.08 X .0765) |
- Conversion to New Codes - General deduction records for all SHARP employees currently enrolled in parking will be updated with the appropriate deduction end date and two new effective-dated rows with the new parking codes (employee and employer). The conversion to the new codes will occur in SHARP on December 18, 2000. All active SHARP employees with an existing parking deduction will be enrolled in the pre-tax parking program effective December 10, 2000.
- Future Maintenance - After the initial enrollments have been made in SHARP, the Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.
- The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.
- The attached spreadsheet outlines the new funding that will be used for the Program.
Regents Institutions
- The following new general deduction codes will be established in SHARP to implement parking deductions for Regents on a pre-tax basis:
Deduction Code | Regents Institution |
---|---|
PPKS01 | Wichita State University |
PPKL01 | University of Kansas |
PPKM01 | Kansas State University |
PPKE01 | Emporia State University |
PPKP01 | Pittsburg State University |
PPKK01 | University of Kansas Medical Center |
PPKH01 | Fort Hays State University |
- Regents should continue to use the 'AGYPAY' deduction code to collect parking fees from their employees on an after-tax basis in the following situations:
- for those parking facilities which are not state owned or leased, or
- for employees who elect NOT to participate in the pre-tax program for those lots that are state owned or leased.
- Only one pre-tax deduction code will be established for each participating Regents institution. Regents institutions having multiple parking lots with differing rates can establish additional pre-tax parking codes as needed in their payroll system. However, the codes should be 'rolled up' and reported on the Regents paydetail file using the appropriate pre-tax parking general deduction code assigned.
- A new general deduction code PPKADR will be established in SHARP to implement the employer contribution for pre-tax parking for Regents' employees.
- The attached spreadsheet outlines the new funding that will be used for the Program.
- Regents institutions are responsible for ensuring these changes are reflected in their individual systems.
For questions about business process design or to submit a test file please contact Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.
Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.
Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.
DB:JJM:eah
Attachment (.pdf)
DATE: | October 16, 2000 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 2000 | ||
EFFECTIVE DATE: | November, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 2000 holidays. |
Friday, November 10, 2000 (Veterans Day Observed), Thursday, November 23, 2000 and Friday, November 24, 2000 (Thanksgiving Holiday) are designated holidays for state service in 2000. Due to the Veterans Day holiday, the pay date for the payroll period ending October 28, 2000 will be Thursday, November 9, 2000. Direct deposit advices for this pay date will be mailed on Tuesday, November 7, 2000; paychecks will be mailed Wednesday, November 8, 2000. Because of the Thanksgiving holiday, the pay date for the payroll period ending November 11, 2000 will be Wednesday, November 22, 2000. Direct deposit advices for this pay date will be mailed Monday, November 20, 2000; paychecks will be mailed Tuesday, November 21, 2000.
Due to the holidays in November, the following variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing date changes, which are occurring on a different day of the week than normally scheduled.
Thursday, November 2, 2000
Regents' on-cycle payroll files for the period ending October 28, 2000 are due to the Department of Administration by 6:00 AM on November 2, 2000 to ensure timely issuance of payroll on November 9, 2000 (These files would normally be due Friday).
Thursday, November 9, 2000
Time and leave interface agencies must have time and leave files for the period ending November 11, 2000 submitted to the Department of Administration for processing by 5:00 PM on November 9, 2000 (These files would normally be due Monday). Paper agencies time and leave documents are due to Payroll Services by 5:00 PM on November 9, 2000.
Regents' Run C off-cycle payroll files for the period ending October 28, 2000 must be received by the Department of Administration by 5:00 PM on November 9, 2000 in order to be processed on Monday, November 13, 2000.
Monday, November 13, 2000
Pay sheets for the on-cycle payroll for the period ending November 11, 2000 will be created on November 13, 2000 (Pay sheets would normally be created on Tuesday). All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 5:00 PM on November 13, 2000 in order to be reflected on the paysheets for this period. The first on-cycle preliminary pay calculation for the period ending November 11, 2000 will also occur November 13, 2000; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 5:00 PM.
Please note that there will only be two SHARP on-cycle preliminary payroll calculations for the period ending November 11, 2000.
The Run C off-cycle for the period ending October 28, 2000 will be processed November 13, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.
Tuesday, November 14, 2000
The second on-cycle preliminary pay calculation for the period ending November 11, 2000 will occur November 14, 2000.
The general ledger extract for the payroll period ending October 28, 2000 will also be created on this date.
Wednesday, November 15, 2000
Final pay confirmation for the on-cycle payroll for the period ending November 11, 2000 will occur November 15, 2000 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 5:00 PM on November 15, 2000 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 5:00 PM on November 15, 2000 in order to be reflected in the final paycheck created for the employee.
Regents' on-cycle payroll files for the period ending November 11, 2000 are due to the Department of Administration by 6:00 AM on November 15, 2000 to ensure timely issuance of the payroll on November 22, 2000.
Wednesday, November 15, 2000 Continued
Please note that an off-cycle will not be available to process late paychecks with the same pay date as the on-cycle payroll. The earliest date that an employee can receive an off-cycle check for the period ending November 11, 2000 is Monday, November 27, 2000, providing the necessary supplemental or adjustment run control has been entered by 5:00 PM on Monday, November 20, 2000.
Thursday, November 16, 2000
On-line access to SHARP for all users will not be available due to batch processing which must occur to ensure timely issuance of payroll on November 22, 2000.
Friday, November 17, 2000
The final SHARP on-cycle payroll reports, with the exception of the KPAYWAGE, for the period ending November 11, 2000 will be available in the agency directories on the MVS (for on-line agencies) and will be distributed (for paper-user agencies) on November 17, 2000.
Regents' Run A off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 17, 2000 in order to be processed on Monday, November 20, 2000.
Monday, November 20, 2000
KPAYWAGE reports for the on-cycle for the period ending November 11, 2000 will be available in the agency directories (for on-line agencies) and will be distributed (for paper-user agencies) on November 20, 2000.
The Run A off-cycle for the period ending November 11, 2000 will be processed November 20, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and/or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated Monday, November 27, 2000 rather than the SHARP on-cycle pay date of Wednesday, November 22, 2000.
Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 11, 2000 will be posted to STARS during Monday night's STARS batch processing cycle.
Tuesday, November 21, 2000
Regents' Run B off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 21, 2000 in order to be processed on Wednesday, November 22, 2000.
Wednesday, November 22, 2000
Payday for the payroll period ending November 11, 2000.
The Run B off-cycle for the period ending November 11, 2000 will be processed November 22, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle.
Paychecks for the Run B off-cycle will be dated November 29, 2000.
Regents' Run C off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 22, 2000 in order to be processed on Monday, November 27, 2000.
Monday, November 27, 2000
The Run C off-cycle for the period ending November 11, 2000 will be processed November 27, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.
Paychecks for the Run C off-cycle will be dated November 30, 2000.
Attached is a calendar for the month of November 2000, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing dates and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site SHARP Website. On-line users should review the SHARP message panel or web site daily to determine if new messages have been added. Paper-users will be notified of any changes to these dates via telephone.
DB:JJM:rb
Attachment: November, 2000 Calendar (.pdf format)
DATE: | October 16, 2000 | ||
---|---|---|---|
SUBJECT: | SHaRP Bi-Weekly Payroll Schedule for Calendar Year 2001 | ||
EFFECTIVE DATE: | Calendar Year 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | SHaRP On-cycle and Off-cycle Payroll Processing Schedules |
Attached are the finalized SHaRP bi-weekly on-cycle and off-cycle schedules for calendar year 2001.
The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. Time and leave interface agencies, please note that time and leave files for the payroll period ending December 23, 2000 are due Friday, December 22, 2000.
SHaRP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHaRP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be changed to the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHaRP agencies have till 5:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into ShaRP for processing in that night's off-cycle payroll.
Off-cycle payroll for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payroll will be issued with the same check/advice date as the SHaRP off-cycle processed the same night.
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Attachments:
-SHaRP Bi-Weekly On-Cycle Payroll Schedule -CY2001 (.pdf)
-SHaRP Bi-Weekly Off-Cycle Payroll Schedule -CY2001 (.pdf)
DATE: | October 20, 2000 | ||
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SUBJECT: | Board of Regents Institutions | ||
EFFECTIVE DATE: | Payroll Period Beginning December 24, 2000 and Ending January 6, 2001. Paid January 19, 2001 | ||
CONTACT: | Elaine Harris | (785) 296-7458 | (elaine.harris@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Changes to STARS Funding and Providers for Group Health Insurance |
The following provider changes have been made for the State of Kansas 2001 GHI contract:
- Provider contracts expire December 23, 2000. Adjustments can still be processed through June 30, 2002 for CY 2000:
- Cigna: plan type 10, deduction codes CIGNAT and CIGNBT
- STARS funding file, fund 7700 index codes 9714 and 9814
- Kaiser: plan type 10, deduction codes KAISAT and KAISBT
- STARS funding file, fund 7700 index codes 9712 and 9812
- Protective Dental: plan type 11, deduction codes UTDCAT and UTDCBT
- STARS funding file, fund 7700 index codes 9721 and 9821
- Provider name changes:
- BC/BS Blue Select will become BC/BS Kansas Choice. This is a name change only.
- All other information will remain as plan type 10, deduction codes BCSEAT and BCSEBT.
- STARS funding file, fund 7700 index codes 9740 and 9840.
- Principal Health Care will become Coventry Health Care. This is a name change only.
- All other information will remain as plan type 10, deduction codes PCHMAT and PCHMBT. STARS funding file, fund 7700 index codes 9719 and 9819
- Regents institutions are responsible for ensuring these changes are reflected in their individual systems. Note: there are no changes to the DA175-176 files.
The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 00-P-010 dated November 22, 1999. All changes listed above are incorporated in this document.
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Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | November 22, 2000 | ||
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SUBJECT: | Parking Compensation Reduction Program | ||
EFFECTIVE DATE: | Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001 | ||
CONTACT: | Elaine Harris | (785) 296-7458 | (elaine.harris@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Pre-Tax Parking Payroll Deduction (Revised to Include Impact on UCI gross) |
The State of Kansas Parking Compensation Reduction Program established pursuant to Section 132 of the Internal Revenue Code and K.S.A. 75-5535 was approved by the Secretary of Administration on July 28, 2000. The purpose of the Program is to provide a parking compensation reduction program that results in payment of parking fees by state employees for state owned or leased parking facilities (including the Signature Building) on a pre-tax basis. The Program authorizes employees to participate in a pre-tax parking payroll deduction where the amount of the parking deduction is not included in gross income. As a result, the employee does not pay employment taxes for federal withholding, state withholding, OASDI, and Medicare on the compensation reduction amount or parking fee and the unemployment compensation insurance (UCI) gross will be reduced by the compensation reduction amount or parking fee.
In addition to parking administered by the Division of Facilities Management (DFM) or leased by the Department of Administration, other state owned or leased parking facilities may be included in the Program. Regents Institutions and other state agencies interested in having their owned or leased parking facilities in the Program should address inquiries to DFM Parking Administration and submit documentation showing the ownership or lease of the parking facilities desired for inclusion in the Program. The Program requires payroll deductions pursuant to K.S.A. 75-5535. Parking deductions pursuant to state agency payroll deduction plans authorized by K.S.A. 75-5536 do not qualify for the Program.
This Program will be administered in accordance with Section 132 of the Internal Revenue Code, and any regulations promulgated thereunder, and K.S.A. 75-5535, by the Division of Facilities Management (DFM) with the advice and approval of the Director of Accounts and Reports. Savings resulting from the reduction in employer paid FICA contributions will be paid to the Department of Administration for administration of the Program. Except for parking at Board of Regents institutions, the employer contribution deduction will be distributed 4.65% for Division of Facilities Management and 3.0% for the Division of Accounts and Reports. For parking administered by Board of Regents institutions, the employer contribution will be distributed 1.0% for the Regents institution, 2.5% for the Division of Accounts and Reports and 4.15% for the Division of Facilities Management.
The Program will utilize the "negative election permitted" approach. This means that employees who have parking payroll deductions in place under K.S.A. 75-5535 will automatically be enrolled in the pretax program unless the employee elects not to participate. DFM Parking Administration is responsible for notifying such employees of the opportunity to not participate in the Program. Elections not to participate shall be effective at the beginning of the next payroll period following the date the election not to participate is received by DFM Parking Administration or received by the affected Regents institution parking administration office in the case of Regents parking.
The salary reduction is a fixed dollar amount as stated on the signed parking contract for the parking facility. In the event the rates change, advanced notice will be given to affected employees who will have the option to elect not to participate. The Program will be provided on a bi-weekly basis that coincides with payroll periods and will be automatically renewed for subsequent periods until a timely election not to participate is received. Compensation reduction amounts are not refundable unless a timely election not to participate is received.
SHARP Agencies
- The following new general deduction codes will be established in SHARP to implement parking on a pre-tax basis for SHARP employees:
Current Deduction Code |
New Deduction Code |
Amount |
City/Lot Designation |
---|---|---|---|
PKT01B | PPKT01 | $4.62 | Topeka/Lot #01 |
PKT02B | PPKT02 | $4.62 | Topeka/Lot #02 |
PKT04B | PPKT04 | $4.62 | Topeka/Lot #04 |
PKT05B | PPKT05 | $4.62 | Topeka/Lot #05 |
PKT06B | PPKT06 | $4.62 | Topeka/Lot #06 |
PKT07B | PPKT07 | $4.62 | Topeka/Lot #07 |
PKW01C | PPKW01 | $9.70 | Wichita/Lot #01 |
PKW02A | PPKW02 | $5.08 | Wichita/Lot #02 |
- The following new general deduction codes will be established in SHARP to implement the employer contribution for pre-tax parking for SHARP employees:
Deduction Code | Amount |
---|---|
PPKAD1 | $0.35 ($4.62 X .0765) |
PPKAD2 | $0.74 ($9.70 X .0765) |
PPKAD3 | $0.39 ($5.08 X .0765) |
Conversion to New Codes - General deduction records for all SHARP employees currently enrolled in parking will be updated with the appropriate deduction end date and two new effective-dated rows with the new parking codes (employee and employer). The conversion to the new codes will occur in SHARP on December 18, 2000. All active SHARP employees with an existing parking deduction will be enrolled in the pre-tax parking program effective December 10, 2000.
- Future Maintenance - After the initial enrollments have been made in SHARP, the Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.
- The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.
- The attached spreadsheet outlines the new funding that will be used for the Program.
Regents Institutions
- The following new general deduction codes will be established in SHARP to implement parking deductions for Regents on a pre-tax basis:
Deduction Code | Regents Institution |
---|---|
PPKS01 | Wichita State University |
PPKL01 | University of Kansas |
PPKM01 | Kansas State University |
PPKE01 | Emporia State University |
PPKP01 | Pittsburg State University |
PPKK01 | University of Kansas Medical Center |
PPKH01 | Fort Hays State University |
- Regents should continue to use the 'AGYPAY' deduction code to collect parking fees from their employees on an after-tax basis in the following situations:
- for those parking facilities which are not state owned or leased, or
- for employees who elect NOT to participate in the pre-tax program for those lots that are state owned or leased.
- Only one pre-tax deduction code will be established for each participating Regents institution. Regents institutions having multiple parking lots with differing rates can establish additional pre-tax parking codes as needed in their payroll system. However, the codes should be 'rolled up' and reported on the Regents paydetail file using the appropriate pre-tax parking general deduction code assigned.
- A new general deduction code PPKADR will be established in SHARP to implement the employer contribution for pre-tax parking for Regents' employees.
- The attached spreadsheet outlines the new funding that will be used for the Program
- Regents institutions are responsible for ensuring these changes are reflected in their individual systems.
For questions about business process design or to submit a test file please contact Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.
Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.
Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.
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Attachment: SHARP Pre-Tax Parking Funding (.pdf format)
DATE: | November 22, 2000 | ||
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SUBJECT: | SHaRP Bi-Weekly Payroll Schedule for Calendar Year 2001 | ||
EFFECTIVE DATE: | Calendar Year 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | SHaRP On-cycle and Off-cycle Payroll Processing Schedules |
Due to the New Years Day (1/1/2001) and Martin Luther King Day (1/15/2001) holidays that fall on Monday, the Regents on-cycle processing will be added to the Day 8 schedule and will run on Sunday night, rather than Monday. Because of this change in processing, the following changes to the SHARP bi-weekly on-cycle payroll schedule have been made.
- For the pay period ending December 23, 2000, paid January 5, 2001, the cutoff date for the Regents on-cycle files is December 28, 2000 at noon.
- For the pay period ending January 6, 2001, paid January 19, 2001, the cutoff date for the Regents on-cycle files is January 11, 2001 at 6 am.
Please find attached corrected schedules that reflect these changes.
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Attachments:
-SHaRP Bi-Weekly On-Cycle Payroll Schedule -CY2001 (.pdf)
-SHaRP Bi-Weekly Off-Cycle Payroll Schedule -CY2001 (.pdf)
DATE: | November 22, 2000 | ||
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SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $80,400 effective January 1, 2001 |
The Social Security wage base for OASDI will be $80,400 for calendar year 2001. This is a $4,200 increase from the 2000 wage base of $76,200. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2001 will be $4,984.80. There continues to be no limit on wages subject to the Medicare tax in 2001. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $4,984.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
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DATE: | November 22, 2000 | ||
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SUBJECT: | Employee Taxability of State-Owned Vehicles | ||
EFFECTIVE DATE: | January 1, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2001 |
The Internal Revenue Service (IRS) has increased the mileage rate to 34.5 cents under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned vehicle. The new rate becomes effective January 1, 2001. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 34.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicles total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2001 and the agency wishes to use the Cents-Per-Mile method, please contact Payroll Services for the 'luxury' vehicle definition. Agencies and employees are also reminded that the only personal use of a state vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.
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DATE: | December 7, 2000 | ||
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SUBJECT: | New Tables for Federal Withholding Tax for 2001 | ||
EFFECTIVE DATE: | January 1, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 2001. |
The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 2001. In addition, the standard deduction for one withholding allowance changes to $2900.00 per year in calendar year 2001.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 2001. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 2000 must file a new W-4 form for calendar year 2001 if they wish to continue their exempt status.
Employees may be eligible for the withholding tax exempt status if the following criteria are met:
- The employee had no income tax liability in the previous year; and
- The employee anticipates no income tax liability in the upcoming year.
Additionally, IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit, for income earned in the United States, to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2000 must file a new 8233 form for calendar year 2001 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Department of Administration will be updating the SHaRP federal and state tax data records on December 18, 2000, for all employees currently claiming exempt from withholding; the tax data record updates will be effective January 1, 2001. On-line agencies must enter a new effective-dated row into SHaRP for employees who wish to claim exempt from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exempt from withholding in 2001. The new tax data row should be effective January 2, 2001. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
A new-effective dated row will also be added in the SHaRP federal tax data records on December 18, 2000 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2000. The new tax data row will be dated January 1, 2001. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2001 has been submitted.
The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose withholding tax status was updated on December 18, 2000. This listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHaRP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: SCHEDULE A (FEDERAL WITHHOLDING TAX) (.pdf)
DATE: | December 11, 2000 | ||
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SUBJECT: | KPAY329 - No GHI Coverage Because No Paycheck Exists Report - SHARP Agencies Only | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Myrene Bears | (785) 296-5368 | (myrene.bears@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Division of Personnel Services, Benefits Administration, is now Responsible for the KPAY329, GHI Coverage Because No Paycheck Exists Report |
Effective immediately Division of Personnel Services, Benefits Administration will be responsible for the administration and review of the KPAY329 No GHI Coverage Because No Paycheck Exists report. The report will continue to be distributed to SHARP agency mailboxes on the MVS with a hard copy going to SHARP paper user agencies. Until notified differently continue using Informational Circular 00-P-003, dated August 19, 1999 as a basis for review and processing adjustments from the KPAY329 report.
Questions concerning this Informational Circular should be directed to Myrene Bears, Payroll Services at (785) 296-5368: myrene.bears@da.state.ks.us.
Questions concerning the KPAY329 report should be directed to Phil Williams, DPS, Benefits Administration at (785) 296-2069: phil.williams@da.state.ks.us.
Questions concerning the processing of adjustments or personal reimbursements should be directed to Joyce Dickerson, Payroll Services at (785) 296-3979: joyce.dickerson@da.state.ks.us.
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DATE: | December 11, 2000 | ||
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SUBJECT: | Voluntary Tax Sheltered Annuity Calculations for Kansas Board of Regents, School for the Deaf, and School for the Blind | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (Sunni.Zentner@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Formulas for Calculating the Maximum Allowable Voluntary Tax Sheltered Annuity Contributions |
The attachments are the formulas for calculating the maximum allowable voluntary tax sheltered annuity contributions for the year 2000. These formulas have been developed in accordance with Internal Revenue Code limitations.
The Division of Accounts and Reports will continue to provide calculation worksheets for each voluntary tax sheltered annuity participant employed at the following agencies: Board of Regents, Kansas State School for the Blind, and School for the Deaf. These agencies will be contacted during the month of December to assist in gathering the data necessary to complete the worksheets.
As a reminder, Board of Regents Institutions are responsible for applying the maximum voluntary tax sheltered annuity formulas to their own employees and processing any necessary refunds prior to the end of the calendar year.
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Attachment: Information Needed to Calculate Voluntary Tax Sheltered Annuity Maximum
DATE: | December 13, 2000 | ||
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SUBJECT: | 2000 Calendar Year-End Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Schedule for Processing Transactions During 2000 Calendar Year-End |
As 2000 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2000 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2000 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2001 balances; a corrected W-2 (Form W-2C) for 2000 will not be issued for the employee involved.
Final 2000 Paycheck
The final on-cycle paychecks for calendar year 2000 will be issued December 22, 2000. Paychecks will be mailed on December 21, 2000 and advices will be mailed on December 20, 2000. The final off-cycle paychecks for calendar year 2000 will be issued on December 29, 2000 for the off-cycle processed on December 26, 2000.
Paycheck Reversals
Any 2000 paychecks that are undeliverable should be reversed as soon as possible. After proper authorization SHARP agencies have until 5:00 p.m. on December 26, 2000 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', for any paycheck reversals by 12:00 noon on December 26, 2000. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 26, 2000 will update calendar year 2001 balances and will not be reflected in the employee's 2000 W-2.
Paycheck Adjustments and Supplements
SHARP agencies have until 5:00 p.m. on December 26, 2000 to enter paycheck adjustment requests for any 2000 paychecks. Adjustments processed in the December 26, 2000 off-cycle payroll will be reflected on the employee's 2000 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2000 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 18, 2000. The December 18, 2000 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 18, 2000 for inclusion in the December 26, 2000 off-cycle. However, if a large volume of DA-180 forms is received on the December 18, 2000 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2000 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered on or after December 27, 2000 which are adjusting paychecks issued prior to January 1, 2001 will not result in a W-2C; the adjustment will update the employee's 2001 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests which are entered either by agencies or centrally by Payroll Services, on or after December 27, 2000 will update the employee's 2001 payroll balances.
Regents' Institutions: On-cycle Files
Regent on-cycle files for the pay period ending December 9, 2000, paid December 22, 2000 are due to the Department of Administration by 6:00 am December 15, 2000.
Regents' Institutions: Off-cycle Files
2000 Paycheck Reversals
Regent Institutions must submit all transmittals for 2000 paycheck reversals by 5:00 p.m. on Friday, December 22, 2000 in order to update the employee's 2000 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2001 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2001 submitted after 5:00 pm on December 22, 2000 should default the pay adjust check date to January 1, 2001.
2000 Adjustments and Supplementals
In order to update employee balances for 2000, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 22, 2000. The off-cycle for the pay period ending December 9, 2000 generated on the night of Tuesday, December 26, 2000 will have an issue date of December 29, 2000; all activity for this off-cycle will be reflected in the employees' 2000 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2000 date.
2001 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2001, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 22, 2000, will be considered to be 2001 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2001 business, the employee's 2001 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2001 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2001, agencies should default the pay adjust check date to January 1, 2001).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2001, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2001 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2001 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments which contain a prior year indicator of 'P' will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 26, 2000 deadline will not be processed until the January 29, 2001 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 22, 2001. The deadline for submitting payroll interface files for the January 29, 2001 off-cycle is 5:00 p.m. on January 26, 2001.
General Reminders
The deduction END date on the general deduction panel for 2000 United Way contributions should be dated between December 10, 2000 and December 23, 2000 in order for the last 2000 deduction to be taken on the paycheck issued December 22, 2000. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2001, agencies can enter a new row effective-dated between December 10, 2000 and December 23, 2000 in order for the first deduction for 2001 to be taken on the January 5, 2001 paycheck. If the 2001 deduction is to be taken over 26 pay periods, a deduction end date of December 9, 2001 should be entered.
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 26, 2000 (December 18, 2000 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
One of the changes implemented at the time of the v7.0 SHARP upgrade is the new advance ('ADV') earnings being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 2000 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 9, 2000 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 22, 2000 (i.e., on-cycle for the payroll period ending December 9, 2000) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2000 Form W-2.
The 2000 W-2 forms will again be mailed directly to the employee's home address stored on the Personal Data 1 panel in the Personnel Administration window. Please make any name, address, or social security number changes to this panel by 5:00 pm on December 29, 2000 to guarantee their inclusion in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between January 1, 2001 and January 15, 2001.
Regents Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 29, 2000.
W-2 forms will be mailed on or before January 31, 2001. A message will appear on the SHARP message panel to advise agencies of the W-2 mailing date during the latter part of January.
Attached is a calendar for the month of December 2000 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 01-P-016, dated November 22, 2000. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). On-line agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.
Attachment: Payroll Processing Calendar for December
DB:JJM:rdb
DATE: | December 13, 2000 | ||
---|---|---|---|
SUBJECT: | New Tables for Earned Income Credit for 2001 | ||
EFFECTIVE DATE: | January 1, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 2001 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 2001. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2001. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.
The Internal Revenue Service has released the 2001 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2001 Form W-5 is attached; the 2000 Form W-5 expires on December 31, 2000. The new form must be filed with the employer before advance 2001 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. Advance EIC qualifiers must have at least one qualifying child and expect that 2001 earned and adjusted gross income will each be less than $28,281.00 (include spouses' income if filing jointly), in addition to meeting other criteria. In addition, employees cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income) for 2000. A nonresident alien may not claim the EIC for 2001 unless married to a U.S. citizen and elects to be taxed as a resident alien for all of 2001.
There are two employee status categories that can effect the amount of advance EIC payments: (a) single or married without spouse filing certificate, and (b) married with both spouses filing certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments. When updating the employee's EIC status in SHARP, please verify that the federal tax data record correctly reflects the employee's status as shown on the completed Form W-5.
The Department of Administration will be updating the existing SHARP federal tax data records on December 18, 2000, for all employees currently claiming the EIC to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates will be effective January 1, 2000. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 2001; paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 2001. The new tax data row should be added effective January 2, 2001. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose EIC status was updated in SHARP on December 18, 2000. The listing will include department, employee ID, name, SSN, and EIC exempt status.
The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regent's institutions are responsible for implementing the new EIC rates in their respective payroll systems.
DB:JJM:rdb
Attachments:
W-5 - Earned Income Credit Advance Payment Certificate (.pdf)
Advance Earned Income Credit Formulas (.pdf)
DATE: | December 14, 2000 | ||
---|---|---|---|
SUBJECT: | Missouri State Withholding | ||
EFFECTIVE DATE: | January 1, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Change in Missouri State Withholding Tax Formula for 2001 |
The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2001. The following table is a list of current filing statuses and the standard deduction for 2001.
Filing Status | Standard Deduction |
---|---|
Single | $4,550.00 |
Married and spouse works | $3,775.00 |
Married and spouse does not work | $7,550.00 |
Head of Household | $6,650.00 |
For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4, no deduction for allowances two through four, and then $1,200.00 per allowance for allowances five and greater. Please note that allowances two through four are not allowed using the withholding tax formula; however, allowances two through four are still used for employers using the withholding tax tables. Please find attached copies of the 2001 Missouri Withholding Tax Formula and MO W-4 for your review.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.
DB:JJM:rd
Attachments: | MO W-4 2001 Missouri Withholding Tax Formula (forms no longer available |
---|
DATE: | December 14, 2000 | ||
---|---|---|---|
SUBJECT: | Parking Compensation Reduction Program (SHARP Agencies Only) | ||
EFFECTIVE DATE: | Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001 | ||
CONTACT: | Myrene Bears | (785) 296-5368 | (myrene.bears@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Parking Compensation Payroll Deduction (Includes New Employer Codes, Lots Administered by 'Other Agencies' and After Tax Deductions) |
As outlined in Informational Circular 01-P-015, the State of Kansas Parking Compensation Reduction Program has been expanded to include parking lots administered by other SHARP agencies. The additional employee and employer deduction codes for after tax and pre-tax options are shown below.
SHARP Agencies - Lots Administered by 'Other Agencies'
The general deduction codes shown below will be added to SHARP to implement after tax and pre-tax parking for the employees enrolled in lots that have been officially approved and will be administered by the following agencies:
After Tax Deduction Code |
Pre-Tax Deduction Code |
Amount | Agency/Lot Designation |
---|---|---|---|
APKA01 | PPKA01 | $ 4.62 | Aging, Dept on / 412 Jackson |
APKA02 | PPKA02 | 11.54 | Aging, Dept on / 512 Jackson |
APKA03 | PPKA03 | 4.62 | Animal Health Dept / 7th & Jackson |
Payroll Services will be requesting fund information from each of the above agencies so the monies can be distributed biweekly on the date of each on cycle. The agency is then responsible for any further distributions.
SHARP Agencies - Administrative Fees for all SHARP Agencies
The following employer deduction codes will be used in SHARP for DFM and 'other agency' administered lots with the intent to assign all employees with a parking deduction of the same amount (regardless of lot), to one administrative fee for pre-tax parking deductions. Note: these deduction codes replace the ones originally sent in Informational Circular 01-P-015.
Deduction Code |
Amount |
---|---|
PKAD01 | $0.35 ($4.62 X .0765) |
PKAD02 | 0.74 ($9.70 X .0765) |
PKAD03 | 0.39 ($5.08 X .0765) |
PKAD04 | 0.88 ($11.54 X .0765) |
- Future Maintenance - The Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.
- The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.
Questions about business process design may be directed to Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.
Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.
Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.
DB:JJM:mhb
DATE: | December 21, 2000 | ||
---|---|---|---|
SUBJECT: | Deferred Compensation Limit | ||
EFFECTIVE DATE: | January 1, 2001 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Deferred Compensation Limit increased to $8,500 |
Per the Internal Revenue Service Informational Release 2000-82, the annual deferred compensation limit under Section 457(b)(2) has increased from $8,000.00 to $8,500.00 effective January 1, 2001.
Aetna will notify all Deferred Compensation Plan Participants that are currently at the limit, giving them the opportunity to increase their contributions. Please inform employees in your agency of this change.
DB:JJM:rdb
DATE: | January 3, 2001 | ||
---|---|---|---|
SUBJECT: | Addition of Payroll Deduction Code 'LTC' | ||
EFFECTIVE DATE: | Payroll Period Beginning January 7, 2001 and Ending January 20, 2001, paid February 2, 2001. | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Payroll Deduction Code for the Kansas State Employees Long-Term Care Program |
The monthly payroll deduction for the Kansas State Employee Long-Term Care Program as authorized by K.S.A. 75-6523 will become available with the payroll period beginning January 7, 2001. The Long-Term Care deduction will be taken on an after tax basis and will have the deduction code of 'LTC'. The new deduction will also be displayed on paycheck stubs/advices and the Regent's warrant registers as 'LTC'.
The Long-Term Care deduction will occur monthly on the first paycheck of the month. Deductions taken will be for coverage for the following month. For example, the deduction taken on the February 2, 2001 paycheck will be for the month of March 2001.
Hartford Life Insurance Company will be the provider of the Kansas State Employees Long-Term Care Program. State of Kansas employees currently enrolled in the Long-Term Care Program will be receiving a letter from Hartford's Long Term Care Group (LTCG) indicating that payroll deduction is available. Included with the letter from the LTCG will be a Payroll Deduction Authorization form. Interested employees may also contact Hartford at 1-877-463-9871 to request the authorization form.
Employees interested in electing the payroll deduction for the Long-Term Care Program need to complete the authorization form and return it to Hartford's Minneapolis Minnesota office. The LTCG will transmit the authorization form to the Division of Personnel Services (DPS) Benefit Unit, the first of the month following receipt of the Payroll Deduction Authorization form by LTCG. The authorization form will be accompanied by a listing of all individuals electing payroll deduction along with the amount to be deducted. The DPS Benefit Unit will verify eligibility, notify the employing agency of the payroll deduction, and enter the deduction into the SHARP system for SHARP agencies. The payroll deduction is effective the first day of the payroll period for the first paycheck of the month following transmission of the payroll deduction information to the Division of Personnel Services Benefits Unit for coverage effective the first of the month following the payroll. Regent's institutions are responsible for entering the deduction in their individual systems. The LTCG will send a confirmation statement to the participant to notify them of the payroll deduction amount and the effective date of the payroll deduction.
Employees wanting to change or cancel their participation in the Long-Term Care Program will need to contact Hartford's LTCG directly and complete the change or termination paperwork. The LTCG will then forward the change or termination information to DPS Benefit Unit. The Benefit Unit will enter the change or termination data into the SHARP system, and will notify the employing agency of the change or termination. Regent's institutions are responsible for entering the change or termination information into their individual systems. Any questions regarding the plan or deduction should be directed to either the Division of Personnel Services Benefit Unit at (785) 296-6280 or the Hartford's LTCG at 1-877-463-9871.
Please note that if the employee does not receive a paycheck or the employee paycheck is not large enough for the 'LTC' deduction to occur, the employee will be responsible for remitting premiums directly to Hartford in order for coverage to continue. Payroll adjustments will not be processed to collect past due premiums. This includes employees at Regents institutions who are on summer leave with benefits.
The following new Department of Administration Clearing Fund has been established for Long-Term Care: 173-00-9016 (fund) - 01 (fiscal year)-9110 (budget unit)-9763 (index code). In addition, index code 9763 has been added to the STARS system for each of the Regent's Payroll Funds to record the receipt of the deduction by the individual Regent's institutions. The Division of Accounts and Reports, Payroll Services Section will remit the monies to the LTCG for all agencies.
The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Long-Term Care deduction. Regent's institutions are responsible for ensuring that the Long-Term Care deduction is available on their individual systems.
DB:JJM:rdb
DATE: | January 5, 2001 | ||
---|---|---|---|
SUBJECT: | W-2 Wage and Tax Statements for Calendar Year 2000 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (sunni.zentner@da.state.ks.us) |
Debbie Esquibel | (785) 368-6313 | (debbie.esquibel@da.state.ks.us) | |
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 2000 W-2 Statements |
The final version of the KTXPR55 W-2 Listing has been generated. The KTXPR55 report contains all information printed on the 2000 W-2 Wage and Tax Statement for each employee of your agency. Agencies which are on-line users of SHARP will find the report in your agency mailbox on the MVS dated December 30, 2000. The KTXPR55 W-2 Listing will be distributed to paper user agencies via the normal report distribution process.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2000 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2000 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 2000 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 16, 2001. At that time, they should be sorted in alphabetical order by last name, first name, middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 2000 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
Duplicate laser printed W-2's for calendar year 2000 will be printed for distribution to the agencies on each Monday, beginning February 6, 2001 and continuing through April 16, 2001. The agencies are requested to submit one blanket request for duplicate 2000 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests should be in social security number order and should include each employee's name and employee ID in addition to the SSN. Requests for duplicate W-2's for years prior to 2000 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services.
Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. On-line agencies may also want to consider utilizing the SHARP KPAY318, 'Year to Date Balances' report to assist in answering W-2 related questions. The KPAY318 report is located in SHARP v7.02 under the 'Compensate Employees' window, 'Maintain Payroll Data U.S.', 'Report', 'Year to Date Balances'. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Agencies are reminded that the Internal Revenue Service eliminated Form 4782, Employee Moving Expense Information in 1998. Therefore, agencies will no longer receive this form for employees of their agency. For calendar years 1998 and after, only qualified reimbursements made directly to an employee will be reported in Box 13P. Nonqualified expenses will continue to be reported as wages and will be reflected in boxes 1, 3, 5 and 17 on Form W-2. Any amounts reported in Box 13P are reflected on the KTXPR55 report.
Please note that the on-cycle paychecks dated December 22, 2000 and the off-cycle paychecks dated December 29, 2000 are included in the 2000 W-2 amounts.
DB:JJM:rdb
Attachment: 2000 W-2 WAGE AND TAX STATEMENT (pdf)
DATE: | January 5, 2001 | ||
---|---|---|---|
SUBJECT: | New Organizational Dues Deduction Code | ||
EFFECTIVE DATE: | Payroll Period Beginning December 24, 2000 and Ending January 6, 2001, Paid January 19, 2001 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of Organizational Dues Code for Hays Fraternal Order of Police |
Please be advised of a new deduction code, 'ORG048' for organization dues for members of the Hays Fraternal Order of Police Kansas Lodge #48. The deduction will be $10.00 per bi-weekly pay period effective with the payroll period shown above. Fort Hays State University should send DA-193 authorizations forms required for employees to Blaine Bryden at Hays Fraternal Order of Police Lodge #48 at 16112 East 29th, Hays, Kansas 67601.
The Division of Accounts and Reports, Payroll Services team has made the necessary updates to the SHaRP system to effect this change for all responsible for ensuring this change is made in their individual systems.
DB:JJM:rdb
DATE: | January 5, 2001 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amount for AFSCME Council 72 | ||
EFFECTIVE DATE: | Payroll Period Beginning December 24, 2000 and Ending January 6, 2001, Paid January 19, 2001 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, and 1469 |
Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Locals 1270 (ORG270), 1357 (ORG357), and 1469 (ORG469) will be increased to $10.74. The deduction table for AFSCME Councils after the change will be as follows:
Deduction Code | Union | Dues Deduction |
---|---|---|
ORG270 | Local 1270 | $10.74 |
ORG357 | Local 1357 | $10.74 |
ORG371 | Local 3371 | $13.10 |
ORG417 | Local 1417 | $10.74 |
ORG419 | Local 1419 | $10.74 |
ORG438 | Local 1438 | $10.74 |
ORG439 | Local 1439 | $10.74 |
ORG469 | Local 1469 | $10.74 |
ORG689 | Local 1689 | $10.74 |
ORG777 | Local 2777 | $9.42 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | January 5, 2001 | ||
---|---|---|---|
SUBJECT: | 2001 W-2 Production Reports | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (Sunni.Zentner@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | 2001 W-2 Production reports to be Run Throughout the Year |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2001 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. Following is a list of the dates the 2001 W-2 production reports are scheduled to be generated:
- Friday, February 16, 2001
- Friday, March 16, 2001
- Friday, May 11, 2001
- Friday, June 8, 2001
- Friday, July 6, 2001
- Friday, August 3, 2001
- Friday, August 31, 2001
- Friday, September 28, 2001
- Friday, October 26, 2001
- Friday, November 9, 2001
- Friday, November 21, 2001
- Friday, December 7, 2001
- Friday, December 19, 2001
- Friday, December 26, 2001
- Friday, December 28, 2001 - Tentative Final Load
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency directory on the first working day following the above listed scheduled dates. Agencies should access the TAX910ER through Rapid Filer to review the report; a copy of the TAX910ER will be distributed to paper agencies. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2s for 2001 are complete, a final KTXPR55 report will be generated for each agency's information and review.
In addition, the Regent's institutions will receive, via either e-mail or fax from Payroll Services, a copy of the errors from the 2001 KTAX900 report. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
DB:JJM:rdb
DATE: | January 5, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Massachusetts Mutual Life Insurance Company (VTSA #444) has changed its premium payment address for the Panorama Annuity. Remittances should be made payable to MassMutual-Panorama and should be sent to the following address:
P. O. Box 92230
Chicago, IL 60675-2230
The vendor table in STARS has been updated to reflect the change in mailing address.
DB:JJM:rb
DATE: | January 11, 2001 | ||
---|---|---|---|
SUBJECT: | Increased Parking Fees for the Garage at 512 Jackson in Topeka | ||
EFFECTIVE DATE: | Payroll Period Beginning December 24, 2000 and Ending January 6, 2001, Paid January 19, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Increased Parking Fees for the Garage at 512 Jackson in Topeka - Payroll Deduction Codes PPKA02, APKA02, and PKAD04 |
Due to the increase in parking fees for Department of Aging employees who park in the garage at 512 Jackson in Topeka, payroll deduction codes PPKA02 (pre-tax parking) and APKA02 (after tax parking) will increase to $12.70 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD04, will increase to $.97 (.0765 X $12.70).
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
DB:JJM:rdb
DATE: | January 23, 2001 | ||
---|---|---|---|
SUBJECT: | Elimination of Insurance Coverage Codes on Paycheck Stubs | ||
EFFECTIVE DATE: | Payroll Period Beginning January 7, 2001 and Ending January 20, 2001, Paid February 2, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Elimination of Insurance Coverage Codes A, B and C Being Printed on Paycheck Stubs and Advices |
As a result of a review of the insurance codes printed on the paycheck stubs and advices, the Insurance Coverage Codes A: Covered Workers Compensation Insurance, B: Covered Unemployment Compensation Insurance, and C: Covered Life and Disability Insurance will no longer be printed on paycheck stubs. The elimination of these codes on the paycheck stub is a print change only and does not affect the coverage provided or data entry into SHARP for these deductions. Elimination of these codes is a result of programming modifications needed to print accurate data and the continued policy to implement delivered PeopleSoft software without modifications.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees.
DB:JJM:rdb
DATE: | January 29, 2001 | ||
---|---|---|---|
SUBJECT: | Addition of New Earnings Code | ||
EFFECTIVE DATE: | Pay Period Beginning January 21, 2001 and Ending February 3, 2001, Paid February 16, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Code 'S10' |
Executive Directive 01-305 establishes a new pay premium of $1.00 per hour for Kansas Department of Transportation employees who perform emergency snow removal. The earnings code for this pay premium is 'S10' and is only available for use by the Kansas Department of Transportation (agency 276). The new earnings code adds to gross pay and will be displayed as follows:
Code | Description | Check |
---|---|---|
S10 | KDOT-MOA | SHIFT DIF10 |
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new earnings code to the SHARP payroll system. Regent's institutions are responsible for ensuring the new earnings code is available on their individual systems.
DB:JJM:rdb
DATE: | February 27, 2001 | ||
---|---|---|---|
SUBJECT: | Workers Compensation Insurance Rates | ||
EFFECTIVE DATE: | Pay Period Beginning March 4, 2001 and Ending March 17, 2001 paid March 30, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Change from a uniform flat rate to an agency experience rate for Workers Compensation Insurance. |
Senate Bill 219 amended K.S.A. 44-575 to establish Workers Compensation Insurance (WCI) rates for state agencies based on the accidental injury and occupational disease experience of a state agency rather than the current practice of a uniform rate for all state agencies. The establishment of individual state agency rates will become effective fiscal year 2002. For fiscal year 2002, the state agency rate will be calculated by using one-half of the old uniform rate and one-half of the agency experience rate. For fiscal year 2003, the rate will be the experience rate based on a three year rolling average.
New Deduction Codes - With the establishment of individual WCI rates for each state agency, the deduction codes in Attachment A have been added to SHARP.
Conversion to New Codes - The conversion to the new WCI deduction codes will occur in SHARP on Monday, March 12, 2001 with an effective date of March 4, 2001. Please note that this is only a change to the new codes, the new rates are not effective until July 1, 2001. The conversion process will set-up the new WCI deduction codes for all active employees in SHARP where the employee record number is equal to the benefit record number. Please note that if an employee is working concurrent positions in two different agencies and both employee record numbers have the the same benefit record number, the employee will only be enrolled in one agency specific WCI deduction code (the agency where the employee record number equals the benefit record number). For example, employee A is working concurrently for agencies 173 and 276. The employee record number for agency 173 is '0' and the employee record number for agency 276 is '1'. Both employee record numbers are tied to benefit record number '0'. In this case, the employee will be set up with the deduction code of WCI173. The employee will receive one paycheck for all wages (from both agency 173 and 276) and WCI for all wages will be calculated using the rate for agency 173. The WCI charged to each agency will be prorated by the employee's agency wage to employee's total gross wages. For example, if the employee in the above example had $1500.00 of total wages for the period ($900.00 agency 173 and $600.00 agency 276) and WCI rate charge of $14.00, $8.40 will be charged to agency 173 (60%) and $5.60 will be charged to agency 276 (40%).
Future Maintenance - The SHARP batch process which runs every night to enroll new hires and re-hires into the State Leave and WCI with the proper rate, has been modified to review all job actions to determine if the agency has enrolled the employee in the proper WCI code. SHARP will verify that the employee record number is equal to the employee benefit number in determining if the correct WCI code was used. If the agency has not enrolled the employee into the proper WCI code, the batch process to enroll the employee into the proper WCI code will insert a new row with the correct WCI code for the employee with an effective date equal to the job action necessitating the change (hire, rehire, transfer, ect.).
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes to the SHARP payroll system. Regent's institutions are responsible for ensuring the new earnings codes are available on their individual systems.
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Attachment: WCI Codes By Agency Number
DATE: | March 15, 2001 | ||
---|---|---|---|
SUBJECT: | Addition of Earnings Codes DNE and DON | ||
EFFECTIVE DATE: | Pay Period Beginning March 4, 2001 and Ending March 17, 2001 paid March 30, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Addition of Earnings Codes DNE and DON for the Kansas Donor Leave Program. |
Executive Order 2001-02 establishes the Kansas Donor Leave Program for state employees within the executive branch of state government and Regents institutions. The Kansas Donor Leave Program provides approved recovery time away from work for employees who choose to donate organs, tissue, bone marrow, blood or blood products. All classified and unclassified benefit eligible employees may receive paid leave in accordance with the following criteria:
- Employees may receive up to 30 working days of paid leave for recovery from an organ or tissue donation procedure.
- Employees may receive up to 7 working days of paid leave following the donation of bone marrow.
- Employees may receive 1.5 hours of paid leave every 4 months for the donation of blood.
- Employees may receive 3 hours of paid leave every 4 months for the donation of blood platelets or other approved blood products.
The following two new earnings codes have been added to SHARP for the Kansas Donor Leave Program:
Code | Description | Check Stub |
---|---|---|
DNE | Donor Leave #2001-02 Exempt | Other |
DON | Donor Leave #2001-02 Non-exempt | Other |
For further implementation guidelines or information, please consult the Division of Personnel Services' Bulletin No. 01-01 dated March 4, 2001 or contact Brent Smith at (785) 296-1432.
The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new earnings codes to the SHARP payroll system. Regents instituions are responsible for ensuring the new earnings codes are available on their individual systems.
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DATE: | March 15, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Fidelity Investments (VTSA #775) has changed its premium payment address. Effective immediately, remittances should be sent to the following address:
P. O. Box 770002
Cincinnati, OH 45277-0089
The vendor table in STARS has been updated to reflect the change in mailing address.
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DATE: | April 13, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Name Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Name Change |
Payroll Services has been notified that reference to Kansas Farm Bureau Life Insurance Company (VTSA #378) should be changed to Farm Bureau Life Insurance Company.
The vendor table in STARS has been updated to reflect the change in name.
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DATE: | May 11, 2001 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee Maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is a Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates will require entry into the SHARP system through Compensate Employees window, Maintain Payroll Data U.S. menu, Additional Pay panel. Paper agencies should complete an Employee Data Sheet (DA-218 Part B) and submit it to the Division of Personnel Services for entry into SHARP.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents are responsible for updating any rate changes into their payroll system.
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Attachment: DA-171 Housing, Food Service and Other Maintenance Policy (.pdf)
DATE: | May 11, 2001 | ||
---|---|---|---|
SUBJECT: | Fiscal Year End Payroll Processing for FY 2001 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular concerning fiscal year 2002 payroll contribution rates will be issued as soon as the information is available.
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 9, 2001 will use fiscal year 2001 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 9, 2001 will use fiscal year 2002 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).
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 9, 2001 will use fiscal year 2001 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 9, 2001 will use fiscal year 2002 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).
Tax Rates
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 B (processed June 20, paid June 25) and Run C (processed June 25, paid June 28) for the payroll period ending June 9, 2001 will be charged to fiscal year 2001 expenditures. Run A (processed July 2, paid July 6) for the payroll period ending June 23, 2001 will be charged to fiscal year 2002 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 25, 2001 (paid June 28) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2001 expenditures.
Once the Run C off-cycle for the period ending June 23, 2001 (processed July 9, paid July 12) has been processed, agencies should not request or process paycheck reversals until STARS FY 2001 closing has been successfully completed. STARS is scheduled to resume processing July 23, 2001.
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 18 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 6/10/01 (beginning date of the first on-cycle payroll charged to FY2002). The Budget End Date will be 6/9/02. On June 18 please refrain from making updates to these panels until after the update has been completed and you can view the 6/10/01 effective dated row. When adding new rows for FY2002, agencies should verify that 6/9/02 was used as the Budget End Date for FY2002.
GHI Adjustments
As of July 1, 2001, NO payroll processing for GHI adjustments should be made for contract year 1999. 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 1999.
Julian Date Reset
The julian date used for the SHaRP off-cycle document numbers will reset to 001 on July 1, 2001. 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 25, paid June 28) will have the 360 julian date in the document number and expenditures will be charged to fiscal year 2001. The off-cycle Run A (processed July 2, paid July 6) will have the 002 julian date in the document number and expenditures will be charged to fiscal year 2002.
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 2002.
Reminders
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 on-cycle paycheck for the period.
- Agencies should review the accuracy of the gross-to-net payroll information and employer 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 'non-taxable'.
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DATE: | May 11, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Change | ||
EFFECTIVE DATE: | June 1, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Payroll Services has been notified of an address change for the Metropolitan Life Insurance Company (VTSA #446). Effective June 1, 2001, remittances must be mailed to the following new address:
MetLife
P.O. Box 120841 Dept. 0841
Dallas, TX 75312-0841
The vendor table in STARS has been updated to reflect the change in address.
In addition, any wired remittances must use the following account information:
Chase Manhattan Bank, New York, NY
ABA Routing Number: 021000021
Account Number: 002-2-430813
Account Title: Denver Annuity EFT
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.
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DATE: | May 15, 2001 | ||
---|---|---|---|
SUBJECT: | Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Information Concerning Employee Use of State-Owned Vehicles |
The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated and Kansas Administrative Regulations.
BACKGROUND
In general, an employee's personal (commuting) use of a state-owned vehicle is a taxable fringe benefit. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.
Please note that Qualified Nonpersonal Use Vehicles are exempt from the taxability requirements, since these vehicles are unlikely to be used more than minimally for personal use because of their special design. Vehicles that qualify for this exclusion are listed in Appendix D.
Field employees, such as inspectors, do not report fringe benefit income for official travel between the employee's residence and work sites. To qualify for the exclusion, the employee's residence must be designated as the employee's official work station because over 50% of the employee's work time involves direct travel from his or her residence. Please note that any incidental travel would be considered commuting and subject to fringe benefit income reporting.
POLICY
K.S.A. 8-301 states that all state-owned vehicles are for official business only and may not be used for personal business or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:
(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.
(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.
(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official work station and the destination by more than 10 miles.
Please note that meeting the Kansas Administration Regulation requirements to commute with the state-owned vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle or the employee's residence is designated as the employee's official work station.
AGENCY RESPONSIBILITY
Agencies shall identify and notify those employees who use state-owned vehicles and who park those vehicles overnight at their residence (commuting) that such use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS. This requirement does not apply to vehicles listed in Appendix D.
Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include at a minimum the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).
Agencies shall provide the payroll system with reports and data to:
- Record fringe benefit income chargeable to each affected employee.
- Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
- Calculate and withhold from each affected employee's pay the federal and state income tax due.
- Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
- Remit all withheld taxes and contributions to the appropriate authorities.
- Report on each affected employee's W-2, the total fringe benefit income for the calendar year.
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Attachment A: IRS Approved Methods of Reporting Fringe Benefit Income (.pdf)
Attachment B: Statement of Personal Usage for State Provided Vehicles (.pdf)
Attachment C: Daily Travel Log (.pdf)
Attachment D: Vehicles Excluded From Fringe Benefit Income Reporting Requirements (.pdf)
DATE: | May 21, 2001 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking | ||
EFFECTIVE DATE: | Payroll Period Beginning May 13, 2001 and Ending May 26, 2001, Paid June 8, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKA04, APKA04 and PKAD05 for Employees of the Kansas Department of Agriculture |
To facilitate a parking lease recently entered into by the Kansas Department of Agriculture for employees of their agency who park in the garage located near 9th and Quincy in Topeka, payroll deduction codes PPKA04 (pre-tax parking) and APKA04 (after-tax parking) have been added in SHARP effective May 13, 2001. The employee deduction amount will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05, will be $1.59 (.0765 X $20.77) per payroll period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring any needed changes are made in their individual systems.
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DATE: | June 5, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Address Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Payroll Services has been notified of a name change for the Security First Life Insurance Company (VTSA #843). Effective immediately the name is changed to MetLife Investors USA Insurance Company. Premium remittances should be mailed to the following address:
MetLife Investors USA Insurance Company
P.O. Box 91811
Chicago, IL 60693-1289
The vendor table in STARS has been updated to reflect the name change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHaRP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.
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DATE: | June 8, 2001 | ||
---|---|---|---|
SUBJECT: | Voluntary Tax Sheltered Annuity Company Change | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Earl Brynds | (785) 296-5376 | (earl.brynds@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Address Change |
Payroll Services has been notified that the name change for the Security First Life Insurance Company to MetLife Investors Insurance Company (See Informational Circular No. 01-P-045 dated June 5, 2001) applies to both VTSA companies #841 and #843. To avoid a duplication of companies, effective immediately, VTSA company #841 (Security First Life Insurance Company - California) is being removed from the list of valid VTSA companies and company #843 will remain with the name of MetLife Investors USA Insurance Company. Any employees currently enrolled in company #841 should be changed to company #843. The information contained in Informational Circular No. 01-P-045 regarding company #843 is still applicable.
The vendor table in STARS has been updated to reflect this change.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHaRP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.
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DATE: | June 19, 2001 | ||
---|---|---|---|
SUBJECT: | Fiscal Year 2002 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 10, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | -Fiscal Year 2002-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans - Extension of KPERS Death and Disability Moratorium |
The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2002. The rates for fiscal year 2002 will become effective with the on-cycle payroll period beginning June 10, 2001 and ending June 23, 2001 paid July 6, 2001. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for fiscal year 2002. The new federal withholding tax rates will be published under a separate informational circular when released by the Internal Revenue Service.
The moratorium of KPERS Death and Disability Insurance has been extended from July 1, 2001 to December 31, 2001. Because of the extension of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between April 1, 2000 and December 31, 2001. Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between March 19, 2000 and December 8, 2001 even though the agency will not be charged for KPERS Death and Disability contribution. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employees.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. 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 2002.
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Attachments: A,B &C (.pdf)
DATE: | June 20, 2001 | ||
---|---|---|---|
SUBJECT: | New Payroll Deduction Codes for Parking - Governmental Ethics Commission | ||
EFFECTIVE DATE: | Payroll Period Beginning June 10, 2001 and Ending June 23, 2001, Paid July 6, 2001 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.us.ks) |
APPROVAL: | |||
SUMMARY: | Addition of New Parking Deduction Codes PPKA05 and APKA05 |
To facilitate a parking lease recently entered into by the Governmental Ethics Commission for employees of their agency who park in the garage located near 9th and Quincy in Topeka, payroll deduction codes PPKA05 (pre-tax parking) and APKA05 (after-tax parking) have been added to SHaRP effective June 10, 2001. The employee deduction will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05 (which is already established), will be $1.59 (.0765 X $20.77) per payroll period.
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.
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DATE: | June 21, 2001 | ||
---|---|---|---|
SUBJECT: | New Tables for Federal Withholding Tax for 2001 | ||
EFFECTIVE DATE: | July 1, 2001 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Rates Effective for Paychecks Issued On or After July 1, 2001 |
The Internal Revenue Service (IRS) has issued Publication 15-T containing revised withholding rates and tables for computing the federal withholding tax deductions effective for all paychecks issued on or after July 1, 2001. The supplemental wage flat withholding rate is decreased to 27.5% effective August 7, 2001. These changes are the result of the Economic Growth and Tax Relief Reconciliation Act of 2001. The standard deduction for one withholding allowance will remain at $2900.00 per year in calendar year 2001.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after July 1, 2001. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount. The Kansas withholding tax tables are not effected by the Economic Growth and Tax Relief Reconciliation Act of 2001. The tax tables contained in Accounts and Reports Informational Circular No. 99-P-013 dated December 13, 1998 will continue to be used to calculate state tax withholding amounts for employees working in Kansas.
In addition, agencies should make the attached document, entitled 'Notice to Employees', available to employees so that they will be aware of how the new law affects their withholding.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHaRP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment 1 - SCHEDULE A (FEDERAL WITHHOLDING TAX)
Attachment 2 - Notice to Employees
DATE: | August 4, 1999 | ||
---|---|---|---|
SUBJECT: | SHARP Processing Schedule Changes for December 1999 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Revision of 1999 SHARP Bi-Weekly On-Cycle Schedule |
The 1999 SHARP Bi-Weekly On-Cycle Schedule issued in Informational Circular 99-P-005 has been revised to accommodate the Department of Administration Business Contingency Plan for Year 2000 and the New Years' Day Holiday (December 31, 1999). Attached is a revised 1999 SHARP Bi-Weekly On-Cycle Schedule. Please note the schedule changes for the payroll period ending December 25, 1999, paid January 7, 2000. No changes have been made to the 1999 SHARP Bi-Weekly Off-Cycle Schedule. Agencies are asked to note the following revised payroll processing dates.
Wednesday, December 22, 1999
Paper-user agencies should submit on-cycle time and leave documents for the payroll period ending December 25, 1999 to Payroll Services by 5:00 p.m. on December 22, 1999 (Documents were originally due Thursday, December 23, 1999).
Thursday, December 23, 1999
Time and leave interface agencies must have time and leave files for the payroll period ending December 25, 1999 submitted to the Department of Administration for processing by 5:00 p.m. on December 23, 1999 (Files were originally due Monday, December 27, 1999).
Monday, December 27, 1999
Paysheets for the payroll on-cycle for the payroll period ending December 25, 1999 will be created on December 27, 1999. All job actions (i.e. promotions, new hires, terminations, leave of absences, step increases, etc.) must be entered by 5:00 p.m. on December 27, 1999 in order to be reflected on the paysheets for this period (Original due date was Tuesday, December 28, 1999).
The first on-cycle pay calculation for the payroll period ending December 25, 1999 will occur on December 27, 1999, so all time and leave data should be entered into SHARP and designated 'Ok to process' by 5:00 p.m.
Please Note: Since there will only be two on-cycle preliminary pay calculations for the payroll period ending December 25, 1999, it is strongly recommended that SHARP agencies meet this deadline to ensure the maximum amount of time to make needed changes.
Tuesday, December 28, 1999
The second preliminary on-cycle pay calculation for the payroll period ending December 25, 1999 will process on December 28, 1999. SHARP agencies will need to have the data entered by 5:00 p.m. on December 28, 1999.
Wednesday, December 29, 1999
Final pay confirmation for the SHARP on-cycle payroll for the payroll period ending December 25, 1999 will occur on December 29, 1999 (Originally scheduled for Friday, December 30, 1999).
Wednesday, December 29, 1999
All employees' time and leave record must be 'Okay to Process' by 5:00 p.m. on December 29, 1999 in order for paycheck records to be created. All deduction and tax data changes must be entered by 5:00 p.m. on December 29, 1999 in order for the changes to be calculated correctly in the employee's paycheck.
Regents' on-cycle payroll files for the payroll period ending December 25, 1999 are due to the Department of Administration by 12:00 noon on December 28, 1999 (Files were originally due 6:00 am on Thursday, December 30, 1999).
Thursday, December 30, 1999
On-line access to SHARP for all users will not be available due to batch processing which must occur to ensure timely issuance of paychecks for January 7, 2000.
Please make note of the above payroll processing dates and adjust your schedules accordingly. If it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and SHARP web site. On-line users should be reviewing the SHARP message panel or the SHARP web site (http://www.da.ks.gov/sharp/) on a daily basis to determine if new messages have been added. Paper-user agencies will be notified on any changes to these dates via telephone.
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Attachment: Sharp Bi-Weekly On-Cycle Payroll Schedule, Revised 7/30/1999 (.pdf)
DATE: | August 13, 1999 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30 | ||
EFFECTIVE DATE: | Payroll Period Beginning August 8, 1999 and Ending August 21, 1999, Paid September 3, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University-Kansas National Education Association, deduction code 'ORG030' will change from $20.10 to $20.85 per bi-weekly payroll period. The new rate will become effective for the payroll period beginning August 8, 1999 and ending August 21, 1999, paid September 3, 1999.
The Payroll Services Section is responsible for making this change in the SHARP system. Pittsburg State University is responsible for ensuring this change is reflected for paychecks issued on or after September 3, 1999.
SAM:JJM:rdb
DATE: | August 25, 1999 | ||
---|---|---|---|
SUBJECT: | KPAY329 - No GHI Coverage Because No Paycheck Exists Report - SHARP Agencies Only | ||
EFFECTIVE DATE: | August 26, 1999 | ||
CONTACT: | Elaine Harris, Payroll Services | (785) 296-7458 | (Elaine.Harris@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | No GHI Coverage Because No Paycheck Exists Report will be available to agencies beginning August 26, 1999 |
Beginning August 26, 1999 and every two weeks thereafter, on-line SHARP agencies can expect to see a KPAY329 No GHI Coverage Because No Paycheck Exists Report in their agency mailbox on the MVS and SHARP paper user agencies will be sent a hard copy of the report. The KPAY329 report lists employees with no Group Health Insurance (GHI) deductions because the employee did not receive a paycheck in the on cycle or three off cycles of the pay period. The report available on August 26, 1999 will be for pay period ending July 24, 1999 for pay dates as shown on the attached schedule. The data elements contained on the report include: agency, pay period end date, employee ID, SSN, name, action, plan type, benefit plan, coverage begin date, pay end date, change code, coverage elect date, and last pay period end date. On-line agencies please remember the report will be available in your mailbox for 30 days from the date last accessed, after that time the report will be overwritten.
Agencies should review the names listed on the report and determine if 1) the employee owes for GHI or 2) the health insurance coverage information in SHARP requires correction to reflect that the employee did not have health insurance coverage for the period. The following are suggested panels in SHARP that can be accessed to review the data on the report:
- To verify that a paycheck was not issued:
Go, Compensate Employees, Maintain Payroll Data U.S., Inquire, Paycheck Data - To verify that the job data information accurately reflects the employee's current status:
Go, Administer Workforce, Administer Workforce U.S., Job Data - To determine if the employee was eligible for coverage during that period and which coverages were elected:
Go, Compensate Employees, Administer Base Benefits, Health Benefits
If the employee should not have had health insurance coverage for the period and the employee's benefit enrollment information in SHARP needs correction or for questions regarding employee eligibility, please contact Lisa Carlton, Division of Personnel Services, Benefits Unit at (785) 296-2069. - To determine if the employee's time and leave entry was "OK to Process" for that period:
Go, Administer Workforce, Time and Leave, Employee
If the employee owes for GHI, a personal reimbursement or adjustment to collect the GHI deductions and employer contributions "not taken" should be sent on a DA-180 SHARP Paycheck Reversal Adjustment form to Payroll Services for processing. Questions concerning the processing of adjustments or personal reimbursements should be directed to Joyce Dickerson, Payroll Services at (785) 296-3979. If a personal reimbursement or other adjustment is not received by two weeks after the report date, the employee will be included in a list provided by Payroll Services to the Division of Personnel Services, Benefits Unit.
Questions concerning this Informational Circular should be directed to Elaine Harris, Payroll Services at (785) 296-7458.
SAM:JJM:eh
attachment: Paydates through 12/1999 (.pdf)
DATE: | August 27, 1999 | ||
---|---|---|---|
SUBJECT: | VTSA Company Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Voluntary Tax Sheltered Annuity Company Name Change |
The Kansas Board of Regents has been notified that Mutual Benefit Life Insurance Company (company number 462) was acquired by and changed its name to SunAmerica Retirement Markets, Inc. In addition to the name change, the company address has changed as follows:
SunAmerica Retirement Markets, Inc.
P.O. Box 54299
Los Angeles, Ca 90054
Payroll Services Section will make the necessary modifications to the SHARP system to reflect this company change. Regent Institutions are responsible for making the necessary modifications to their payroll systems for this change.
SAM:JJM:rdb
DATE: | September 17, 1999 | ||
---|---|---|---|
SUBJECT: | Payroll Forms | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | (Joyce.Dickerson@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Form DA-187 Eliminated and Form DA-180 Modified |
In order to reduce the number of forms needed for payroll transactions, the DA-187, SHARP Supplemental Paycheck Authorization form has been eliminated. The name of the form DA-180 has been modified to SHARP Paycheck Reversal/Adjustment/Supplemental.
Paper agencies who need an on-line supplemental processed in the three off-cycles following the on-cycle confirmation should submit the form DA-180 with a copy of the time sheet attached, to the Division of Accounts and Reports, Payroll Services. If a supplemental is needed after the three off cycles have passed, and there was no original paycheck, you must complete the DA-180 and the Attachment to the DA-180, and submit them to the Division of Accounts and Reports, Payroll Services.
All other paper agency adjustments and all on-line agency adjustments should be submitted on the form DA-180 with the Attachment to the DA-180 completed in accordance with the example shown in the February 1999 SHARP-Shooter.
The following Payroll forms can be found at the Division of Accounts and Reports website http://www.da.ks.gov/ar/forms/. These forms are provided in a fillable format so that data can be entered directly into the form, saved, and printed.
- DA-179 Maximum Arrears Payback**
- DA-180 Paycheck Reversal/Adjustment/Supplemental**
- DA-182 Paycheck Reprint Request**
- DA-184 Authorization For Direct Deposit of Employee Pay
- DA-219A Account Code Maintenance
- DA-219B Position Pool ID Maintenance
- DA-219C Department Budget Earnings/Deductions/Taxes
- DA-6P Paycheck Stop Payment Request
**Paper user agencies should continue to fax these forms to Payroll Services at 785-291-3399 for processing.
Paper user agencies should continue to submit the remaining forms, except the DA-6P Paycheck Stop Payment Request, to the Division of Personnel Services for processing. The DA-6P Paycheck Stop Payment Request should continue to be submitted to the State Treasurer's Office.
SAM:JJM:jd
DATE: | October 15, 1999 | ||
---|---|---|---|
SUBJECT: | SHARP Bi-Weekly Payroll Schedule for Calendar Year 2000 | ||
EFFECTIVE DATE: | Calendar Year 2000 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | SHARP On-cycle and Off-cycle Payroll Processing Schedules |
Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2000.
The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. All agencies are asked to note the December 1999 processing schedule changes on the SHARP on-cycle calendar. Time and leave interface agencies, please note that time and leave files for the payroll period ending December 25, 1999 are due Thursday, December 23, 1999.
In addition to the December schedule changes, agencies are also asked to note the following change to the November processing schedule in Informational Circular 99-P-005. The SHARP agencies cutoff for the Run C off-cycle for the payroll period ending November 13, 1999 has been changed to Monday, November 29, 1999. The Regents' cutoff for the Run C off-cycle for the payroll period ending November 12, 1999 will continue to be Wednesday, November 24, 1999.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be changed to the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHARP agencies have till 5:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll.
Off-cycle payroll for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payroll will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
SAM:JJM:RB
Attachments:
[SHARP Bi-Weekly On-Cycle Payroll Schedule] (.pdf)
[SHARP Bi-Weekly Off-Cycle Payroll Schedule] (.pdf)
DATE: | October 22, 1999 | ||
---|---|---|---|
SUBJECT: | Key Payroll Processing Dates in November 1999 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Payroll processing schedule changes due to the November 1999 holidays. |
Friday, November 26, 1999, is a designated holiday for state service in 1999; therefore, the pay date for the period ending November 13, 1999 is Wednesday, November 24, 1999. Direct deposit advices will be mailed on Monday, November 22, 1999; paychecks will be mailed on Tuesday, November 23, 1999.
Due to the Veterans Day holiday (November 11, 1999) and Thanksgiving holiday (November 25 & 26, 1999), the following variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing date changes, which are occurring on a different day of the week than normally scheduled.
Thursday, November 4, 1999
Regents' on-cycle payroll files for the period ending October 30, 1999 are due to the Department of Administration by 6:00 AM on November 4, 1999 to ensure timely issuance of the pay on November 12, 1999 (These files would normally be due Friday).
Friday, November 12, 1999
Time and leave interface agencies must have time and leave files for the period ending November 13, 1999 submitted to the Department of Administration for processing by 5:00 PM on November 12, 1999 (These files would normally be due Monday). Paper agencies time and leave documents are due to Payroll Services by 5:00 PM on November 12, 1999.
Monday, November 15, 1999
Paysheets for the on-cycle payroll for the period ending November 13, 1999 will be created on November 15, 1999 (Paysheets would normally be created on Tuesday). All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 5:00 PM on November 15, 1999 in order to be reflected on the paysheets for this period. The first on-cycle preliminary pay calculation for the period ending November 13, 1999 will also occur November 15, 1999; therefore, all time and leave data should be entered into SHaRP and designated 'OK to process' by 5:00 PM.
Please note that there will only be two SHaRP on-cycle preliminary payroll calculations for the period ending November 13, 1999.
Tuesday, November 16, 1999
The second on-cycle preliminary pay calculation for the period ending November 13, 1999 will occur November 16, 1999.
The general ledger extract for the payroll period ending October 30, 1999 will also be created on this date.
Wednesday, November 17, 1999
Final pay confirmation for the on-cycle payroll for the period ending November 13,1999 will occur November 17, 1999 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 5:00 PM on November 17, 1999 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 5:00 PM on November 17, 1999 in order to be reflected in the final paycheck created for the employee.
Regents' on-cycle payroll files for the period ending November 13, 1999 are due to the Department of Administration by 6:00 AM on November 17, 1999 to ensure timely issuance of the pay on November 24, 1999.
Please note that an off-cycle will not be available to process late paychecks with the same pay date as the on-cycle payroll. The earliest date that an employee can receive an off-cycle check for the period ending November 13, 1999 is Monday, November 29, 1999, providing the necessary supplemental or adjustment run control has been entered by 5:00 PM on Monday, November 22, 1999.
Thursday, November 18, 1999
On-line access to SHaRP for all users will not be available due to batch processing which must occur to ensure timely issuance of payroll on November 24, 1999.
Friday, November 19, 1999
The final SHaRP on-cycle payroll reports, with the exception of the KPAYWAGE, for the period ending November 13, 1999 will be available in the agency directories on the MVS (for on-line agencies) and will be distributed (for paper-user agencies) on November 19, 1999.
Regents' Run A off-cycle payroll files for the period ending November 13, 1999 must be received by the Department of Administration by 5:00 PM on November 19, 1999 in order to be processed on Monday, November 22, 1999.
Monday, November 22, 1999
KPAYWAGE reports for the on-cycle for the period ending November 13, 1999 will be available in the agency directories (for on-line agencies) and will be distributed (for paper-user agencies) on November 22, 1999.
The Run A off-cycle for the period ending November 13, 1999 will be processed November 22, 1999. SHaRP agencies have until 5:00 PM on this date to enter supplemental and/or adjustments run controls for the Run A off-cycle.
Paychecks for the Run A off-cycle will be dated Monday, November 29, 1999 rather than the SHaRP on-cycle pay date of Wednesday, November 24, 1999.
Encumbrance transactions for the SHaRP on-cycle payroll for the period ending November 13, 1999 will be posted to STARS during Monday night's STARS batch processing cycle.
Tuesday, November 23, 1999
Regents' Run B off-cycle payroll files for the period ending November 13, 1999 must be received by the Department of Administration by 5:00 PM on November 23, 1999 in order to be processed on Wednesday, November 24, 1999.
Wednesday, November 24, 1999
Payday for the payroll period ending November 13, 1999.
The Run B off-cycle for the period ending November 13, 1999 will be processed November 24, 1999. SHaRP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle.
Paychecks for the Run B off-cycle will be dated December 1, 1999.
Regents' Run C off-cycle payroll files for the period ending November 13, 1999 must be received by the Department of Administration by 5:00 PM on November 24, 1999 in order to be processed on Monday, November 29, 1999.
Monday, November 29, 1999
The Run C off-cycle for the period ending November 13, 1999 will be processed November 29, 1999. SHaRP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.
Paychecks for the Run C off-cycle will be dated December 2, 1999.
Attached is a calendar for the month of November 1999, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing dates and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all state agencies via the SHaRP on-line message panel and the SHaRP web site (http://www.da.ks.gov/sharp/). On-line users should review the SHaRP message panel or web site daily to determine if new messages have been added. Paper-users will be notified of any changes to these dates via telephone.
SAM:JJM:RB
Attachment: November, 1999 calendar highlighting key payroll processing activity (.pdf)
DATE: | November 5, 1999 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | January 9, 2000 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (Janice.Wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular bi-weekly dues for members of KAPE will be changing effective with the payroll period beginning January 9, 2000 and ending January 22, 2000, paid February 4, 2000 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $7.24 or less | $579.00 or less | $5.80 |
ORG002 | $7.25 - $ 8.18 | $580.00 - $654.00 | $6.30 |
ORG003 | $8.19 - $ 9.25 | $655.00 - $740.00 | $6.80 |
ORG004 | $9.26 - $10.19 | $741.00 - $815.00 | $7.30 |
ORG005 | $10.20 - $11.24 | $816.00 - $899.00 | $7.80 |
ORG006 | $11.25 - or greater | $900.00 - or greater | $8.30 |
ORG888 | KU Medical Center - Nurses | $8.30 | |
ORG018 & 019 | KU - Graduate Teaching Assistants | $6.50 |
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the payroll system to affect all SHaRP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 4, 2000.
SAM:JJM:RDB
DATE: | November 12, 1999 | ||
---|---|---|---|
SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 2000 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increase to $76,200 effective January 1, 2000 |
The Social Security wage base for OASDI will be $76,200 for calendar year 2000. This is a $3,600 increase from the 1999 wage base of $72,600. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2000 will be $4,724.40. There continues to be no limit on wages subject to the Medicare tax in 2000. Medicare tax rates for employers and employees remain at 1.45%.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $4,724.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.
For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).
SAM:JJM:RDB
DATE: | November 22, 1999 | ||
---|---|---|---|
SUBJECT: | Board of Regents Institutions | ||
EFFECTIVE DATE: | December 26, 1999 | ||
CONTACT: | Elaine Harris | (785) 296-7458 | (Elaine.Harris@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Changes to STARS Funding and Providers for Group Health Insurance |
The following provider changes have been made for the State of Kansas 2000 GHI contract, effective with the pay period beginning December 26, 1999 paid January 21, 2000:
- Provider contracts expire December 25, 1999. Adjustments can still be processed through June 30, 2001 for CY 1999:
- BC/BS Traditional: plan type 10, deduction codes BCTRAT and BCTRBT
STARS funding file, fund 7700 index codes 9718 and 9818
- Community Health Plan: plan type 10, deduction codes COMMAT and COMMBT
STARS funding file, fund 7700 index codes 9723 and 9823
- Provider name changes:
- United Dental will become Protective Dental Care. This is a name change only.
All other information will remain as plan type 11, deduction codes UTDCAT and UTDCBT STARS funding file, fund 7700 index codes 9721 and 9821
Make the above changes in your pay detail and STARS funding files, effective with the January 21, 2000 check issue date. Note: there are no changes to the DA175-176 files.
The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 99-P-004 dated September 24, 1998. All changes listed above are incorporated in this document.
SAM:JJM:eh
Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)
DATE: | December 3, 1999 | ||
---|---|---|---|
SUBJECT: | New Tables for Federal Withholding Tax for 2000 | ||
EFFECTIVE DATE: | January 1, 2000 | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (sunni.zentner@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 2000. |
The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 2000. In addition, the standard deduction for one withholding allowance changes to $2800.00 per year in calendar year 2000.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 2000. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 1999 must file a new W-4 form for calendar year 2000 if they wish to continue their exempt status.
Employees may be eligible for the withholding tax exempt status if the following criteria are met:
- The employee had no income tax liability in the previous year; and
- The employee anticipates no income tax liability in the upcoming year.
Additionally, IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit, for income earned in the United States, to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 1999 must file a new 8233 form for calendar year 2000 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Department of Administration will be updating the SHaRP federal and state tax data records on December 20, 1999, for all employees currently claiming exempt from withholding; the tax data record updates will be effective January 1, 2000. On-line agencies must enter a new effective-dated row into SHaRP for employees who wish to claim exempt from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exempt from withholding in 2000. The new tax data row should be effective January 2, 2000. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
A new-effective dated row will also be added in the SHaRP federal tax data records on December 20, 1999 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2000. The new tax data row will be dated January 1, 2000. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2000 has been submitted.
The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose withholding tax status was updated on December 20, 1999. This listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHaRP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 2000.
SAM:JJM:RB
Attachment: SCHEDULE A (FEDERAL WITHHOLDING TAX)
DATE: | December 3, 1999 | ||
---|---|---|---|
SUBJECT: | 1999 Calendar Year-End Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | SHARP: Joyce Dickerson | (785) 296-3979 | (joyce.dickerson@da.state.ks.us) |
Regents: Carol Beck | (785) 296-2002 | (carol.beck@da.state.ks.us) | |
APPROVAL: | |||
SUMMARY: | Schedule for Processing Transactions During 1999 Calendar Year-End |
As 1999 calendar year-end approaches, the Division of Accounts and Reports has begun making preparations for the issuance of calendar year 1999 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 1999 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2000 balances; a corrected W-2 (Form W-2C) for 1999 will not be issued for the employee involved.
Final 1999 Paycheck
The final on-cycle paychecks for calendar year 1999 will be issued December 23, 1999. Paychecks will be mailed on December 22, 1999 and advices will be mailed on December 21, 1999. The final off-cycle paychecks for calendar year 1999 will be issued on December 30, 1999 for the off-cycle processed on December 27, 1999.
Paycheck Reversals
Any 1999 paychecks that are undeliverable should be reversed as soon as possible. SHaRP agencies have until 5:00 p.m. on December 27, 1999 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHaRP Paycheck Reversal/Adjustment/Supplemental', for any paycheck reversals by 12:00 noon on December 27, 1999. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 27, 1999 will update calendar year 2000 balances and will not be reflected in the employee's 1999 W-2.
Paycheck Adjustments and Supplements
SHaRP agencies have until 5:00 p.m. on December 27, 1999 to enter paycheck adjustment requests for any 1999 paychecks. Adjustments processed in the December 27, 1999 off-cycle payroll will be reflected on the employee's 1999 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 1999 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHaRP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 20, 1999. The December 20 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 20 for inclusion in the December 27 off-cycle. However, if a large volume of DA-180 forms is received on the December 20 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 1999 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered on or after December 28, 1999 which are adjusting paychecks issued prior to January 1, 2000 will not result in a W-2C; the adjustment will update the employee's 2000 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests which are entered either by agencies or centrally by Payroll Services, on or after December 28 will update the employee's 2000 payroll balances.
Regents' Institutions: Off-cycle Files
1999 Paycheck Reversals
Regent Institutions must submit all transmittals for 1999 paycheck reversals by 5:00 p.m. on Thursday, December 23, 1999 in order to update the employee's 1999 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2000 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
1999 Adjustments and Supplementals
In order to update employee balances for 1999, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Thursday, December 23, 1999. The off-cycle for the pay period ending December 11, 1999 generated on the night of Monday, December 27, 1999 will have an issue date of December 30, 1999; all activity for this off-cycle will be reflected in the employees' 1999 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 1999 date.
2000 Adjustments and Supplementals
With the exception of OASDI and/ or Medicare tax refunds or arrearages for tax years prior to 2000 any adjustments or supplementals submitted after 5:00 p.m. on Thursday, December 23, 1999, will be considered to be 2000 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2000 business, the employee's 2000 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2000 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2000, agencies should default the pay adjust check date to January 1, 2000).
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2000, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2000 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2000 payroll balances.
Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments which contain a prior year indicator of 'P' will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 27, 1999 deadline will not be processed until the January 31, 2000 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 24, 2000. The deadline for submitting payroll interface files for the January 31 off-cycle is 5:00 p.m. on January 28, 2000.
GENERAL REMINDERS
The deduction END date on the general deduction panel for 1999 United Way contributions should be dated between December 12, 1999 and December 25, 1999 in order for the last 1999 deduction to be taken on the paycheck issued December 23, 1999. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2000, agencies can enter a new row effective-dated between December 12, 1999 and December 25, 1999 in order for the first deduction for 2000 to be taken on the January 7, 2000 paycheck. If the 2000 deduction is to be taken over 26 pay periods, a deduction end date of December 10, 2000 should be entered.
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 1999 (December 20, 1999 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
One of the changes implemented at the time of the v7.0 SHaRP upgrade is the new advance ('ADV') earnings being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 1999 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 11, 1999 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 23, 1999 (i.e., on-cycle for the payroll period ending December 11) should be collected by personal reimbursement to avoid the advance from being included in the employee's 1999 Form W-2.
The 1999 W-2 forms will again be mailed directly to the employee's home address stored on the Personal Data 1 panel in the Personnel Administration window. Please make any name, address, or social security number changes to this panel by January 1, 2000 to guarantee their inclusion in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between January 1, 2000 and January 15, 2000.
Regents Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on January 1, 2000.
W-2 forms will be mailed on or before January 31, 2000. A message will appear on the SHaRP message panel to advise agencies of the W-2 mailing date during the latter part of January.
Attached is a calendar for the month of December 1999 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHaRP bi-weekly payroll schedules issued under Informational Circular Nos. 00-P-001, dated August 4, 1999, and 00-P-006, dated October 15, 1999. The attached calendar is intended for use as a supplementary reference tool to these informational circulars. Agencies are reminded that the SHARP system will be closed to all users Thursday, December 30, 1999. Batch processing will be done on this date to ensure the timely issuance of the January 7, 2000 paychecks.
Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). On-line agencies should be reviewing the SHaRP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.
SAM:JJM:RB
Attachment: December 1999 Calendar (.pdf)
DATE: | December 13, 1999 | ||
---|---|---|---|
SUBJECT: | New Tables for Earned Income Credit for 2000 | ||
EFFECTIVE DATE: | January 1, 2000 | ||
CONTACT: | Payroll Services Sunni Zentner |
(785) 296-7058 |
(Sunni.Zentner@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 2000 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 2000. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2000. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.
The Internal Revenue Service has released the 2000 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2000 Form W-5 is attached; the 1999 Form W-5 expires on December 31, 1999. The new form must be filed with the employer before advance 2000 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. Advance EIC qualifiers must have at least one qualifying child and expect that 2000 earned and adjusted gross income will each be less than $27,413.00 (include spouses' income if filing jointly), in addition to meeting other criteria. Please note that for 2000, new rules apply to determine who is a foster child for purposes of the Earned Income Credit. In addition, employees cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income) for 2000. A nonresident alien may not claim the EIC for 2000 unless married to a U.S. citizen and elects to be taxed as a resident alien for all of 2000.
There are two employee status categories that can effect the amount of advance EIC payments: (a) single or married without spouse filing certificate, and (b) married with both spouses filing certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments. When updating the employee's EIC status in SHARP, please verify that the federal tax data record correctly reflects the employee's status as shown on the completed Form W-5.
The Department of Administration will be updating the existing SHARP federal tax data records on December 20, 1999, for all employees currently claiming the EIC to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates will be effective January 1, 2000. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 2000; paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 2000. The new tax data row should be added effective January 2, 2000. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose EIC status was updated in SHARP on December 20, 1999. The listing will include department, employee ID, name, SSN, and EIC exempt status.
The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regents institutions are responsible for implementing the new EIC rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 2000.
SAM:JJM:RB
Attachments:
Advance Earned Income Credit tables for paychecks issued after January 1, 2000
IRS Form W-5 (2000) - Earned Income Credit Advance Payment Certificate (.pdf)
DATE: | December 27, 1999 | ||
---|---|---|---|
SUBJECT: | New United Way Deduction Code | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of United Way Code for McPherson County |
The deduction code of 'UTD099' has been added to the SHaRP deduction code table and is available for use effective immediately. Please inform your employees that United Way contributions can now be made by payroll deduction and designated to the McPherson County United Way.
The Division of Accounts and Reports, Payroll Services team has made the necessary updates to the SHaRP system to effect this change for all employees for whom SHaRP calculates pay. Regents' institutions are responsible for ensuring this change is made in their individual systems.
SAM:JJM
DATE: | January 4, 2000 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | January 9, 2000 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (Janice.Wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for AFSCME Locals |
Please be advised that the regular bi-weekly dues for members of the following AFSCME-Kansas Public Employees' Union Council 64 will be changing effective with the payroll period beginning January 9, 2000 and ending January 22, 2000, paid February 4, 2000:
Deduction Code | Union | Dues Deduction |
---|---|---|
ORG371 | Local 3371 | $13.10 |
ORG 469 | Local 1469 | $10.11 |
There is no change in the deduction amounts for the following AFSCME organizational dues deduction codes: ORG270, ORG357, ORG417, ORG419, ORG438, ORG439, ORG689, and ORG777. The deduction amounts for these codes will remain as indicated in Informational Circular No. 99-P-021 issued January 11, 1999 and 99-P-026 issued April 8, 1999.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 4, 2000.
SAM:JJM:rdb
DATE: | January 4, 2000 | ||
---|---|---|---|
SUBJECT: | 2000 W-2 Production Reports | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner | (785) 296-7058 | (Sunni.Zentner@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | 2000 W-2 Production reports to be Run Throughout the Year |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2000 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. Following is a list of the dates the 2000 W-2 production reports are scheduled to be generated:
- Friday, February 4, 2000
- Friday, March 3, 2000
- Friday, March 31, 2000
- Friday, April 28, 2000
- Friday, May 12, 2000
- Friday, June 9, 2000
- Friday, July 7, 2000
- Friday, August 4, 2000
- Friday, September 1, 2000
- Friday, September 29, 2000
- Friday, October 27, 2000
- Thursday, November 9, 2000
- Wednesday, November 22, 2000
- Friday, December 8, 2000
- Friday, December 22, 2000
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency directory on the first working day following the above listed scheduled dates. Agencies should access the TAX910ER through Rapid Filer to review the report; a copy of the TAX910ER will be distributed to paper agencies. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2s for 2000 are complete, a final KTXPR55 report will be generated for each agency's information and review. An informational circular will advise agencies of the date the final KTXPR55 report is created.
In addition, the Regents' institutions will receive, via either e-mail or fax from Payroll Services, a copy of the errors from the 2000 KTAX900 report. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regents' responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regents' institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
SAM:JJM:rb
DATE: | January 10, 2000 | |||
---|---|---|---|---|
SUBJECT: | W-2 WAGE AND TAX STATEMENTS FOR CALENDAR YEAR 1999 | |||
EFFECTIVE DATE: | Immediately | |||
CONTACT: | Sunni Zentner | (785) 296-7058 | (sunni.zentner@da.state.ks.us) | |
Debbie Esquibel | (785) 368-6313 | (debbie.esquibel@da.state.ks.us) | ||
APPROVAL: | APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 1999 W-2 Statements |
The final version of the KTXPR55 W-2 Listing has been generated. The KTXPR55 report contains all information printed on the 1999 W-2 Wage and Tax Statement for each employee of your agency. Agencies which are on-line users of SHaRP will find the report in your agency mailbox on the MVS dated January 4, 2000. The KTXPR55 W-2 Listing will be distributed to paper user agencies via the normal report distribution process.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 1999 W-2s that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 1999 W-2s.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 1999 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 17, 2000. At that time, they should be sorted in alphabetical order by last name, first name, middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 1999 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
Duplicate laser printed W-2's for calendar year 1999 will be printed for distribution to the agencies on each Monday, beginning February 7, 2000 and continuing through April 17, 2000. The agencies are requested to submit one blanket request for duplicate 1999 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests should be in social security number order and should include each employee's name and employee ID in addition to the SSN. Requests for duplicate W-2's for years prior to 1999 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services.
Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. On-line agencies may also want to consider utilizing the SHaRP KPAY318, 'Year to Date Balances' report to assist in answering W-2 related questions. The KPAY318 report is located in SHaRP v7.02 under the 'Compensate Employees' window, 'Maintain Payroll Data U.S.', 'Report', 'Year to Date Balances'. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Agencies are reminded that the Internal Revenue Service eliminated Form 4782, Employee Moving Expense Information in 1998. Therefore, agencies will no longer receive this form for employees of their agency. For calendar years 1998 and after, only qualified reimbursements made directly to an employee will be reported in Box 13P. Nonqualified expenses will continue to be reported as wages and will be reflected in boxes 1, 2, 5 and 17 on Form W-2. Any amounts reported in Box 13P are reflected on the KTXPR55 report.
Please note that the on-cycle paychecks dated December 23, 1999 and the off-cycle paychecks dated December 30, 1999 are included in the 1999 W-2 amounts.
SAM:JJM:rdb
Attachment: 1999 W-2 WAGE AND TAX STATEMENT SUMMARY
DATE: | January 12, 2000 | ||
---|---|---|---|
SUBJECT: | Employee Taxability of State-Owned Vehicles | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-7058 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2000 |
The Internal Revenue Service (IRS) has increased the mileage rate to 32.5 cents under the Cents-Per-Mile method of valuing an employees personal (commuting) use of a state-owned vehicle. The new rate became effective January 1, 2000. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 32.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, the employee cannot be a control employee (i.e. an elected official, an appointed official whose appointment requires the approval of the Legislature, or similar level officers or employees (department and agency heads). In addition, the fair market value of the vehicle used by the employee cannot exceed $15,400.00 if the vehicle was first made available to the employee for personal (commuting) use in calendar year 2000. Agencies and employees are also reminded that the only personal use of a state vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.
The purpose of this circular is to report the change in mileage rate for the Cent-Per-Mile method of valuing fringe benefit income. A revised circular regarding the "Employee Taxability for the Value of Certain Uses of a State-Owned Vehicle" will be issued in April 2000 and will discuss the entire issue in depth.
SAM:rdb
DATE: | January 26, 2000 | ||
---|---|---|---|
SUBJECT: | Missouri State Withholding | ||
EFFECTIVE DATE: | January 1, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-7058 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Change in Missouri State Withholding Tax Formula for 2000 |
The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2000. These changes include two new filing statuses: 1) Married and spouse works, and 2) Married and spouse does not work. In addition, there is an increase in the standard deduction for the filing statuses of single and head of household, and a different method of counting allowances for the head of household status. The following table is a list of current filing statuses and the standard deduction for 2000.
Filing Status Standard Deduction
Single $4,400.00
Married and spouse works $3,675.00
Married and spouse does not work $7,350.00
Head of Household $6,450.00
For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4, no deduction for allowances two through four, and then $1,200.00 per allowance for allowances five and greater. Please note that allowances two through four are not allowed using the withholding tax formula; however, allowances two through four are still used for employers using the withholding tax tables. Please find attached copies of the 2000 Missouri Withholding Tax Formula and MO W-4 for your review. Employees who are married and have Missouri withholding should complete a new MO W-4 to take advantage of the two new filing statuses.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.
SAM:JJM:rdb
Attachment: 2000 Missouri Withholding Tax Formula (.pdf)
DATE: | February 10, 2000 | ||
---|---|---|---|
SUBJECT: | Salary Overpayments and Outstanding Arrearages | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services, Sunni Zentner |
(785) 296-7058 |
(sunni.zentner@da.state.ks.us) |
Joyce Dickerson | (785) 296-3979 | (joyce.dickerson@da.state.ks.us) | |
Setoff Program, Pam Fink |
(785) 296-4234 |
(pam.fink@da.state.ks.us) |
|
APPROVAL: | |||
SUMMARY: | Revised policies and procedures have been established for agencies to follow regarding salary overpayments and uncollectible arrearages. |
A revised policy and corresponding procedures for salary overpayments have been established to reduce the number of outstanding arrearage balances due to the processing of salary overpayments. Also, revised policies and procedures for uncollectible arrearages were established in accordance with Policy and Procedure Manual Filing Number 8001. It is very important that these collection procedures be followed in an expedient manner to alleviate the increasing number of uncollectible arrearages in SHARP.
Part I: Policy and Procedures for Salary Overpayments
There are currently outstanding arrearages in SHARP that were the result of agencies running on-line adjustments to correct paychecks where the employee was overpaid. The outstanding arrearages remain because the employees had already terminated employment or terminated employment before the full arrearage could be collected from their paychecks. These situations have led to the following policy:
For cases where an employee has been overpaid, if the agency is not certain that the overpayment can be recovered from the employee through deductions from future payroll checks or by personal reimbursement, then payroll adjustment(s) to correct the paycheck(s) containing the overpayment should not be processed.
If an overpayment has occurred and the agency is uncertain that the overpayment can be recovered, the agency should follow the steps below to identify the net amount due from the employee and begin collection efforts.
- For a paycheck containing a salary overpayment, use the on-line pay computation panel to calculate the net that the employee should have received. (See SHARP Computer-Based Training, Payroll Book One, On-line Computation.)
- Document the 'was' and 'should be' amounts on a DA-180 Attachment form. The difference in net pay will be the arrearage amount. (If the employee was overpaid on more than one check, repeat this step for all of the paychecks involved and combine the net pay differences to arrive at the arrearage amount.)
- a. At this point, if it is determined that the employee will have sufficient income to deduct the arrearage from a future paycheck(s), proceed with processing the on-line adjustment(s). If an on-line adjustment(s) has already been processed for the paycheck(s) involved correcting a different problem, submit a completed DA-180 form to Accounts and Reports for processing. The result will be that an arrearage amount is set-up in SHaRP. The agency must advise the employee about the amount owed and the deduction schedule for the arrearage. If the arrearage is not collected within a reasonable amount of time, the agency should refer to the policies and procedures for uncollectible arrearages that can be found in Part II of this informational circular.
b. If it is determined that the employee will not have sufficient income to deduct the arrearage from a future paycheck(s), continue with the steps below.
- Contact the employee about the overpayment and ask for a personal reimbursement of the arrearage amount due.
- If the arrearage amount is collected, deposit the payment, and process the on-line paycheck adjustment(s) to create the arrearage balance. Submit a DA-180 form with a copy of your receipt voucher to Payroll Services so that the personal reimbursement will be recorded to satisfy the arrearage amount. (The agency may be able to receipt the payment and remove the arrearage balance following the instructions found in the SHaRP Computer-Based Training, Payroll Book Two, Collect an Arrearage Balance by Receiving a Personal Reimbursement.) (If an on-line adjustment(s) has already been processed for the paycheck(s) involved correcting a different problem, submit a completed DA-180 form and a copy of the receipt voucher to Accounts and Reports to process both the salary overpayment and the personal reimbursement.)
If the arrearage amount is not collected, refer to the policies and procedures for uncollectible arrearages, found in Part II of this informational circular, following through the procedures to the point that the debt is submitted to Accounts and Reports Setoff Program or submitted for write-off. In this case, the amount that should be submitted to the Setoff Program or for write-off would be the gross amount of the salary overpayment.
If the arrearage amount is partially collected from the employee, please contact Payroll Services to assist you in determining the salary overpayment transaction that can be processed and the remaining amount that would be submitted to the Setoff Program or for write-off.
Part II: Policies and Procedures for Uncollectible Arrearages
The SHARP report KPAY007, Deductions in Arrears Report, is generated after each off-cycle payroll and is distributed via agency MVS mailboxes. (Paper users receive a printed copy of the report.) It is the responsibility of each agency to review their arrearage balances and take the appropriate action to resolve the debt. Below are the procedures that have been written in accordance with the Policy and Procedure Manual Filing Number 8001, K.A.R.s 1-2b-1 and 1-2b-2, and K.S.A. 75-3728b. These are the procedures that an agency must follow once it has been determined that an arrearage is delinquent.
- Minimum Collection Procedures: It is the responsibility of each state agency to collect amounts owed to the State in the most effective and efficient manner. Unless the Director of Accounts and Reports approves an agency's alternative collection procedure, all state agencies will adhere to the following basic procedures relating to collection of past due arrearages. These procedures are considered minimum efforts. Certain state agencies may find it necessary to expand these general procedures to fit their particular circumstances.
- Arrearage collection schedules should be extended on a limited basis, only after determining that the employee is unable to pay the balance in full. The arrearage collection schedule should be complete within the current calendar year and preferably not extend beyond six months. A general guide would be to allow the employee to pay back the arrearage over the same number of pay periods that the error occurred. However, the collection schedule can be extended for a few months more where large balances are concerned and payment of such balances within the current calendar year would create a hardship. (See the SHaRP Computer-Based Training, Payroll Book Two, Arrearages, for use of the General Deduction Override Panel.)
- All arrearages that are more than 30 days past due must be subjected to collection procedures.
- A record must be kept for each action taken to collect an arrearage, the name of the person taking the action, and the date the action was taken. This documentary evidence of collection efforts must be available at the agency to support classifying an arrearage as delinquent.
- At least three documented efforts should be made to collect all delinquent arrearages over $25. Arrearages $25 and under require only one documented attempt.
- As authorized by K.S.A. 75-6201 et seq., the State's right to set off debts owed the State against state payments due such debtors should be utilized for debts equaling $25.00 or more. Please refer to filing No. 8002 for information about the Setoff Program. Procedures for submitting a debt to the Setoff Program may be obtained by contacting the Setoff Program contact identified on the front of this informational circular. After an arrearage is accepted by the Setoff Program, the agency should promptly remove the arrearage from SHa>RP. Please refer to the SHaRP Computer-Based Training, Payroll Book Two, Adjust Arrears Balances Using the Adjust Arrears Balance Panel instructions for removing the arrearage from SHaRP. (A debt that is submitted to the Setoff Program will be collected out of payments from the State which are payable to the debtor. Following the collection of the debt, the agency will receive the amount collected and a collection assistance fee will be deducted from the remittance.)
- Write-off Request Procedures: K.S.A. 75-3728a-d establishes write off procedures for accounts written off as uncollectible by an agency. These procedures should be followed for all delinquent debts regardless of amount and also for debts that have remained in the Setoff Program for an excessive amount of time. In order to write-off an arrearage the agency must follow the steps below.
- An agency must apply to the Director of Accounts and Reports for authority to write off an arrearage when the following criteria are met:
- A valid arrearage does exist; i.e. there are no unsettled differences between the agency and the employee as to the validity of the arrearage.
- The arrearage is past due (having missed a scheduled personal reimbursement if the employee is no longer being paid).
- The agency has complied with the "Minimum Collection Procedure" section, without success, and has determined that the arrearage is uncollectible.
- As soon as the criteria noted above are met, the agency should prepare a request for write off to be sent to the Director of Accounts and Reports for approval. A copy of the request must be retained by the agency. The request should include the following:
- The number of arrearages to be written off.
- The total dollars for the arrearages to be written off.
- For each arrearage, list the employee's name, social security number, employee ID, amount, and a brief statement of the reason or basis for determining the arrearage uncollectible.
Note: Agencies should make sure that the statement clearly identifies arrearages that have been discharged in bankruptcy. - A statement by the responsible individual that in his or her opinion the arrearages are uncollectible and that this request is submitted in accordance with K.S.A. 75-3728a-d and Policies and Procedures Manual Filing Number 8001.
- The signature of the agency head which certifies his or her approval of the request.
- The agency should leave the arrearage set up in SHaRP pending notification (in the form of a signed letter) of approval from the Division of Accounts and Reports. Upon receiving such notification, the agency should promptly remove the arrearage from SHaRP if the arrearage has not already been removed.
- The agency must maintain all information relating to the arrearages that were written off.
- An agency must apply to the Director of Accounts and Reports for authority to write off an arrearage when the following criteria are met:
All arrearage amounts written off by the state agency as described above are thereby assigned to the Director of Accounts and Reports for collection. Arrearage amounts equal to or greater than $25 will be recorded as a receivable through the Setoff Program. However, the agency will not receive back any funds that are collected through the Setoff Program for arrearage amounts that are submitted on a write-off request. Agency personnel may be required by the Director to participate in, and provide documentation for, hearings or litigation regarding the collection of the receivable.
Regent Institutions are responsible for making the necessary modifications to their payroll policies and procedures to be in compliance with this informational circular.
Glossary
Arrearage Amount - An amount the employee owes the agency. The arrearage could be the result of a payroll adjustment or the result of an advance of earnings to cover certain deductions.
Collection Schedule - The schedule of collections from an employee to satisfy an arrearage balance. Collections can be made through one or more payroll deductions or by one or more personal reimbursements following a schedule set by the agency. If the employee is in pay status, the SHaRP panel General Deduction Override could be used to set a maximum amount to be collected out of each paycheck. If no entry is made on the General Deduction Override panel, SHaRP will deduct all (or as much as possible) of the arrearage balance from the employee's next paycheck.
Employee - In this informational circular, employee refers to a current or former employee of a state agency.
Personal Reimbursement - A collection by personal check, cash, money order, etc., from an employee to fulfill a debt owed to an agency.
Payroll Adjustment - A transaction that changes or corrects an original paycheck recorded in SHaRP. An on-line adjustment transaction processes a reversal of the original paycheck, then records a new paycheck with the original net pay showing as a deduction. An off-line adjustment transaction, which can only be processed by Accounts and Reports Payroll Services, records a new paycheck that records the difference between the original paycheck and what a correct paycheck should have contained.
Salary Overpayment - Any paycheck where the wages paid to an employee exceeds what the employee actually earned.
DATE: | February 9, 2000 | ||
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SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | January 23, 2000 | ||
CONTACT: | Payroll Services Janice Wolfley |
(785) 296-3699 |
(Janice.Wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for AFSCME Local 1469 |
Please be advised that the regular bi-weekly dues for members of the following AFSCME-Kansas Public Employees' Union Council 64, Local 1469, ORG469, will be increased to $10.63. This change is effective for the payroll period beginning January 23, 2000 and ending February 5, 2000, issued February 18, 2000. The deduction table after the change will be as follows:
Deduction Code | Union | Dues Deduction |
---|---|---|
ORG270 | Local 1270 | $10.11 |
ORG357 | Local 1357 | $ 9.95 |
ORG371 | Local 3371 | $13.10 |
ORG417 | Local 1417 | $10.16 |
ORG419 | Local 1419 | $10.16 |
ORG438 | Local 1438 | $10.16 |
ORG439 | Local 1439 | $10.16 |
ORG469 | Local 1469 | $10.63 |
ORG689 | Local 1689 | $10.16 |
ORG777 | Local 2777 | $9.42 |
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 18, 2000.
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DATE: | February 28, 2000 | ||
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SUBJECT: | KPAY711 - Department Positions and Budget Earnings Report | ||
EFFECTIVE DATE: | March 13, 2000 | ||
CONTACT: | Steve Banning | (785) 296-7059 | (steve.banning@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Department Positions and Budget Earnings Report will be available to agencies beginning March 13, 2000 |
Effective March 13, 2000, the KPAY711 Department Positions and Budget Earnings Report will be available to agencies each payroll period. The KPAY711 report lists, by department, the funding information contained in the current effective-dated row in the department budget earnings table for your agency. The data elements on the report include: department, position pool number (with effective date), account code, position number (with effective date), description, account code, effective status, account (funding agency), fund, org code (index), program (PCA), earnings code (if applicable), sequence #, percent or amount, and agency use. Any position funded at the position level instead of at the pool level will be shown at the end of the appropriate department. Positions that are not filled will not be shown on the report.
The KPAY711 is intended to compliment the KPAY710, Department Budget Earnings Report, and is a tool for agencies to ensure that positions are funded properly. The report will be generated each pay period and will be available in the agency mailboxes on the MVS on the workday following the on-cycle confirm date (i.e. usually the Monday of pay week). A hard copy of the report will be sent to paper user agencies.
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DATE: | March 8, 2000 | ||
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SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | February 20, 2000 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (Janice.Wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for Public Service Employee Union Local 1132 |
Please be advised that the regular bi-weekly dues for members of the Public Employees Service Union, Local 1132, ORG133, will be increased to $11.00. This change is effective for the payroll period beginning February 20, 2000 and ending March 4, 2000, paid March 17, 2000.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after March 17, 2000.
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EFFECTIVE DATE: | April 1, 2000 | ||
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CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Suspension of Employer's Contributions for KPERS Death and Disability Insurance for the period of April 1, 2000 to June 30, 2001 |
Senate Bill 39 and proposed Senate Bill 645 suspend employer's contributions for KPERS Death and Disability Insurance from April 1, 2000 to June 30, 2001. As a result of this legislation, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check issue date between April 1, 2000 and June 30, 2001. This procedure will be effective with the pay period beginning March 19, 2000 and ending April 1, 2000 (paid April 14, 2000) through the pay period beginning May 27, 2001 and ending June 9, 2001 (paid June 22, 2001). Please note that KPERS Death and Disability Insurance for off-cycles is calculated based on pay period end dates, so paycheck adjustments for pay period end dates prior to March 19, 2000 will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.
Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between March 19, 2000 and June 9, 2001 even though the agency will not be charged for KPERS Death and Disability contribution. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employee.
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to April 1, 2000.
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DATE: | March 31, 2000 | ||
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SUBJECT: | Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle | ||
EFFECTIVE DATE: | April 1, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Information Concerning Employee Use of State-Owned Vehicles |
The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated and Kansas Administrative Regulations.
BACKGROUND
In general, an employee's personal (commuting) use of a state-owned vehicle is a taxable fringe benefit. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.
Please note that Qualified Nonpersonal Use Vehicles are exempt from the taxability requirements, since these vehicles are unlikely to be used more than minimally for personal use because of their special design. Vehicles that qualify for this exclusion are listed in Appendix D.
Field employees, such as inspectors, who work (travel) out of their homes and have no office or duty location, are subject to these reporting requirements. For these employees, travel between home and the first business contact of a morning, travel between the last business contact of the day and home, and incidental trips are considered commuting for IRS reporting purposes.
POLICY
K.S.A. 8-301 states that all state-owned vehicles are for official business only and may not be used for business or pleasure. Kansas Administrative Regulation 1-17-2a states that a
state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:
(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.
(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.
(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official work station and the destination by more than 10 miles.
AGENCY RESPONSIBILITY
Agencies shall identify and notify those employees who use state-owned vehicles and who park those vehicles overnight at their residence (commuting) that such use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS. This requirement does not apply to vehicles listed in Appendix D.
Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay
period to the payroll system. The procedure will include at a minimum the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).
Agencies shall provide the payroll system with reports and data to:
- Record fringe benefit income chargeable to each affected employee.
- Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
- Calculate and withhold from each affected employee's pay the federal and state income tax due.
- Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
- Remit all withheld taxes and contributions to the appropriate authorities.
- Report on each affected employee's W-2, the total fringe benefit income for the calendar year.
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Attachments:
Attachment A - IRS Approved Methods of Reporting Fringe Benefit Income (.pdf)
Attachment B - Statement of Personal Usage For State Provided Vehicles (.pdf)
Attachment C - Daily Travel Log (.pdf)
Attachment D - Vehicles Excluded From Fringe Benefit Income Reporting Requirements (.pdf)
DATE: | May 19, 2000 | ||
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SUBJECT: | Addition of New Earnings Codes | ||
EFFECTIVE DATE: | Payroll Period Beginning June 11, 2000 | ||
CONTACT: | Kathy Ogle |
(785) 296-2290 |
(kathy.ogle@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Earnings Codes for FY 2001 |
Legislators will be eligible to receive a State Per Diem rate of $76.44 in fiscal year 2001. Legislators serving in the Legislature have the option to receive the new daily rate. Legislators who serve as board members for a state agency may also receive the increased rate. The following two earnings codes have been added to SHARP to reflect the increased rate:
Code | Description | Check Stub |
---|---|---|
LG7 | Legislative Daily Rate - $76.44 | Regular |
BD9 | Board Member Daily Rate - $76.44 | Regular |
Each of the above earnings codes is effective with the payroll period beginning June 11, 2000 and ending June 24, 2000 paid July 7, 2000. Earnings code 'LG7' should be used only by agency 428.
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DATE: | June 1, 2000 | ||
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SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R.-19-9 |
Attached is a Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates will require entry into the SHaRP system through Compensate Employees window, Maintain Payroll Data U.S. menu, Additional Pay panel. Paper agencies should complete an Employee Data Sheet (DA-218 Part B) and submit it to the Division of Personnel Services for entry into SHaRP.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents are responsible for updating any rate changes into their payroll system.
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Attachment: Form DA-171 (.pdf)
DATE: | June 8, 2000 | ||
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SUBJECT: | Reporting for basic life and disability insurance coverage during leave without pay | ||
EFFECTIVE DATE: | July 1, 2000 | ||
CONTACT: | Abby Moore | (785) 296-2133 | (abby.moore@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Reporting requirements and format to facilitate employee payments for basic life and disability insurance coverage during leave without pay status. See previous Regents memorandum dated August 15, 1997 'New STARS Index Codes and Regent Transaction Processing,' for STARS processing of employee paid employer contributions. |
In an effort to facilitate employee payments for basic life and disability insurance coverage during leave without pay as allowed to members of the Board of Regents by K.S.A. 74-4927a(5), the attached reporting format and procedures are being implemented. This is detailed information that KPERS previously required the Regent institutions to keep at their agency. This report is to be submitted to the Department of Administration, Accounts and Reports, Payroll Services (attn. Abby Moore) at the time the STARS dataset is sent to process the accounting transactions. The Regents memorandum dated August 15, 1997 'New STARS Index Codes and Regent Transaction Processing,' for STARS explains the STARS processing of employee paid employer contributions.
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attachment: Life and Disability Insurance Coverage Paid by Employee During Leave Without Pay Report (.pdf)
DATE: | June 9, 2000 | ||
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SUBJECT: | Fiscal Year End Payroll Processing for FY 2000 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Summary of Fiscal Year End Payroll Processing |
This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular concerning fiscal year 2001 payroll contribution rates will be issued as soon as the information is available.
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 10, 2000 will use fiscal year 2000 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 10, 2000 will use fiscal year 2001 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).
Tax Rates
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. The rates for OASDI, Medicare, federal withholding taxes and Kansas withholding taxes remain unchanged for fiscal year 2001.
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 B (processed June 21, paid June 26) and Run C (processed June 26, paid June 29) for the payroll period ending June 10, 2000 will be charged to fiscal year 2000 expenditures. Run A (processed July 3, paid July 7) for the payroll period ending June 24, 2000 will be charged to fiscal year 2001 expenditures.
Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 26, 2000 (paid June 29) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2000 expenditures.
Once the Run C off-cycle for the period ending June 24, 2000 (processed July 10, paid July 13) has been processed, agencies should not request or process paycheck reversals until STARS FY 2000 closing has been successfully completed. STARS is scheduled to resume processing July 24, 2000.
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 19 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 6/11/00 (beginning date of the first on-cycle payroll charged to FY2001). The Budget End Date will be 6/10/01. On June 19 please refrain from making updates to these panels until after the update has been completed and you can view the 6/11/00 effective dated row. When adding new rows for FY2001, agencies should use 6/10/01 as the Budget End Date for FY2001.
GHI Adjustments
As of July 1, 2000, NO payroll processing for GHI adjustments should be made for contract year 1998. 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 1998.
Julian Date Reset
The julian date used for the SHaRP off-cycle document numbers will reset to 001 on July 1, 2000. 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 26, paid June 29) will have the 362 julian date in the document number and expenditures will be charged to fiscal year 2000. The off-cycle Run A (processed July 3, paid July 7) will have the 003 julian date in the document number and expenditures will be charged to fiscal year 2001.
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 2001.
Reminders
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 on-cycle paycheck for the period.
- 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'.
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DATE: | June 13, 2000 | ||
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SUBJECT: | Fiscal Year 2001 Payroll Contribution Rates | ||
EFFECTIVE DATE: | Pay Period Beginning June 11, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Fiscal Year 2001-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 2001. The rates for fiscal year 2001 will become effective with the on-cycle payroll period beginning June 11, 2000 and ending June 24, 2000 paid July 7, 2000. The rates for OASDI, Medicare, federal withholding taxes and Kansas withholding taxes remain unchanged for fiscal year 2001.
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 2001.
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Attachment: Schedule of rates (.pdf)
DATE: | June 19, 2000 | ||
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SUBJECT: | Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Information Concerning Employee Use of State-Owned Vehicles |
Informational Circular 00-P-025 contains the following statement:
"Field employees, such as inspectors, who work (travel) out of their homes and have no office or duty location, are subject to these reporting requirements. For these employees, travel between home and the first business contact of a morning, travel between the last business contact of the day and home, and incidental trips are considered commuting for IRS reporting purposes."
According to this statement, the mileage discussed above would be classified as commuting and would be subject to fringe benefit income reporting for income tax purposes. This statement is based on IRS Publications 463 (Travel, Entertainment, Gift, and Car Expenses) and 587 (Business Use of Your Home). The publications state that an employee's home office must qualify as the employee's 'principal place of business' to classify the transportation costs between the employee home and work locations as business miles. To qualify as the employee's 'principal place of business' several tests had to be met including the 'exclusive use test.' The 'exclusive use test' states that a portion of the employee's home is set aside and not used for any purpose other than business. Due to the concerns that employees could not meet this test, the wording in the Informational Circular No. 00-P-025 was changed to the statement noted above.
Since the issuance of Informational Circular No. 00-P-025, Payroll Services has received a legal opinion from the Department of Administration's Legal Section concerning this issue. The opinion states that the case law supports the argument that the employee's home is the 'principal place of business' under the circumstance described above. The case law indicates that while the 'exclusive use test' needs to be met to claim the home office expense deduction; the test does not need to be met to qualify the employee's home as the 'principal place of business' for transportation expenses.
Based on the Department of Administration Legal Section's research, employees who work at home and have no office, do not have commuting miles for travel between their home and first business stop of the day or for travel between the last business stop of the day and home. Please note that any incidental travel will still be considered commuting and will be subject to fringe benefit income reporting. Should you have any question concerning this issue, please contact Roger Basinger with Payroll Services at the telephone number or e-mail address listed above.
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DATE: | June 19, 2000 | ||
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SUBJECT: | Optional Group Life Insurance Rate Changes | ||
EFFECTIVE DATE: | Pay Period Beginning June 25, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Optional Group Life Insurance Rate Changes |
Please be advised that effective with the payroll period beginning June 25, 2000 and ending July 8, 2000, paid July 21, 2000, the Optional Group Life Insurance rates are changing as follows:
Attained Age | Monthly Premium per $1,000 |
---|---|
Under 30 | $0.07 |
30-34 | $0.09 |
35-39 | $0.11 |
40-44 | $0.16 |
45-49 | $0.23 |
50-54 | $0.39 |
55-59 | $0.58 |
60-64 | $0.84 |
65-69 | $1.38 |
70-74 | $2.23 |
75 and above | $3.76 |
An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available will remain at $200,000.00.
Age is based on the employee's attained age during the payroll period. Optional Group Life Insurance deductions will continue to be taken from the second biweekly paycheck of the month.
Board of Regents' Institutions operating under the Regents' Payroll system are responsible for implementing the new rates and for updating age groups and premium deduction amounts in their Payroll Systems effective with deductions made for the pay period beginning June 25, 2000 and ending July 8, 2000.
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DATE: | June 20, 2000 | ||
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SUBJECT: | Modification and Addition of Earnings Codes | ||
EFFECTIVE DATE: | Pay Period Beginning June 11, 2000 | ||
CONTACT: | Roger Basinger | (785) 296-5387 | (roger.basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Modification of Earnings Code 'RET' and Addition of Earnings Code 'RTO' |
Executive Directive 00-296 establishes a retention incentive pay option for the Kansas Department of Transportation. Agency determined engineering positions in the Kansas Department of Transportation's Comprehensive Transportation Program are eligible for the pay option. The earnings codes for this pay option is 'RET' and should be entered on the Bonus Pay Panel in SHARP. Earnings code 'RET' is only available for use by the University of Kansas Medical Center (agency 683) and the Kansas Department of Transportation (agency 276).
Please note that the 'Check Stub' for earnings code 'RET' has changed from 'OTHER' to 'REGULAR', and the earnings code will be displayed as follows:
Code | Description | Check Stub |
---|---|---|
RET | Retention Incentive | REGULAR |
Earnings code 'RTO' has also been established. Code 'RTO' is the overtime differential due to eligible Kansas Department of Transportation engineers who will receive retention incentive pay (RET) and have received overtime payments within the previous 12 months. The 'RTO' earnings code is system generated and will be displayed as follows:
Code | Description | Check Stub |
---|---|---|
RTO | Retention Incentive Overtime | OVERTIME |
The modification to earnings code 'RET' and the addition of earnings code 'RTO' become effective with the payroll period beginning June 11, 2000 and ending June 24, 2000 paid July 7, 2000.
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DATE: | June 21, 2000 | ||
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SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | August 6, 2000 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | (janice.wolfley@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular bi-weekly dues for members of KAPE will be changing effective with the payroll period beginning August 6, 2000 and ending August 19, 2000, paid September 1, 2000 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $ 7.24 or less | $579.00 or less | $6.00 |
ORG002 | $ 7.25 - $ 8.18 | $580.00 - $654.00 | $6.50 |
ORG003 | $ 8.19 - $ 9.25 | $655.00 - $740.00 | $7.00 |
ORG004 | $ 9.26 - $10.19 | $741.00 - $815.00 | $7.50 |
ORG005 | $10.20 - $11.24 | $816.00 - $899.00 | $8.00 |
ORG006 | $11.25 - or greater | $900.00 or greater | $8.55 |
ORG888 | KU Medical Center - Nurses | $8.55 | |
ORG 018 & 019 | KU - Graduate Teaching Assistants | $6.70 |
The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHaRP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 1, 2000.
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DATE: | July 13, 1998 | ||
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SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | September 4, 1998 | ||
CONTACT: | Janice Wolfley, Payroll Services | (785) 296-3699 | |
APPROVAL: | |||
SUMMARY: | Organization Dues Change for KAPE |
The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular bi-weekly dues for members of KAPE will be changing effective with the payroll period beginning August 9, 1998 and ending August 22, 1998, paid September 4, 1998 as follows:
Deduction Code | Hourly Rate of Pay | Bi-Weekly Salary | Dues Deduction |
---|---|---|---|
ORG001 | $7.24 or less | $579.00 or less | $5.50 |
ORG002 | $7.25 - $ 8.18 | $580.00 - $654.00 | $6.00 |
ORG003 | $8.19 - $ 9.25 | $655.00 - $740.00 | $6.50 |
ORG004 | $9.26 - $10.19 | $741.00 - $815.00 | $7.00 |
ORG005 | $10.20 - $11.24 | $816.00 - $899.00 | $7.50 |
ORG006 | $11.25 - or greater | $900.00 - or greater | $8.00 |
ORG888 | KU Medical Center - Nurses | $8.00 | |
ORG018 & 019 | KU - Graduate Teaching Assistants | $6.25 |
The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 4, 1998.
SAM:JJM:NR
DATE: | August 21, 1998 | ||
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SUBJECT: | VTSA Company Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Tax Sheltered Annuity Company Name Change |
The Kansas Board of Regents has been notified that Western National Life Insurance Company, no. 792, was acquired by and changed its name to American General Annuity.
While the company name has changed, the mailing address will remain as follows:
American General Annuity Insurance Company
P. O. Box 2754
Amarillo, TX 79105
Payroll Services will make the necessary modifications to the SHARP system to reflect this company change. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.
SAM:JJM:LI
DATE: | September 30, 1998 | ||
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SUBJECT: | Board of Regents Institutions | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | |
APPROVAL: | |||
SUMMARY: | KPERS Quarterly Remittance Totals Verification |
Effective with the third quarter 1998, Regents will no longer be required to verify quarterly KPERS remittance file totals with the Payroll Reconciliation\Remittance Team. KPERS annual remittance datasets will continue to be received, processed, and reviewed per the updated attachment.
The elimination of the KPERS Quarterly Remittance totals verification process discussed above supersedes Informational Circular No. 97-R-008, dated December 11, 1996, that has an attachment titled "Regents Remittance Reports/Interface by Fund." This attachment required RGKPER-Summary of Tape Totals and PYRLR048-Transactions Not on Quarterly Tape to be sent to Payroll Services.
Questions regarding this informational circular should be directed to the Division of Accounts and Reports, Abby Moore, Payroll Services at (785) 296-2133.
SAM:AM
Attachment (.pdf)
DATE: | September 24, 1998 | ||
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SUBJECT: | Board of Regents Institutions | ||
EFFECTIVE DATE: | Various: see explanation below | ||
CONTACT: | Myrene Bears | (785) 296-5368 | |
APPROVAL: | |||
SUMMARY: | Changes to STARS Funding and Providers for Group Health Insurance |
Effective with the implementation of SHaRP 7.0 and with the 1999 group health insurance (GHI) contract the following changes will impact your payroll processing.
Effective with the implementation of SHaRP 7.0 (checks issued after October 16, 1998):
1) Pursuant to agreements between the Divisions of Accounts and Reports and Personnel Services the following index codes for GHI will no longer be separated in STARS, effective with SHaRP 7.0 (checks issued after October 16, 1998):
- participation fee (STARS funding file, fund 7700 index code 9745)
- tobacco charge (STARS funding file, fund 7700 index code 9743)
- health care benefits (STARS funding file, fund 7700 index codes 9846 and 9847)
These amounts are currently and will continue to be included in the employee deductions and/or employer contributions on pay detail files, but calculations will no longer be needed to separate these pieces on the STARS funding files. The Division of Personnel services will be responsible for tracking and transferring these amounts. Wellness will continue to be separated in STARS. Note: there are no changes to the DA175-176 or pay detail files for these items.
2) A new plan type and deduction code for GHI drug will become effective with the implementation of SHaRP 7.0 (checks issued after October 16, 1998):
- Advance Paradigm: deduction codes DRUGAT A and DRUGBT B (employee), DRUGAT N and DRUGBT N (employer) under plan type 1Z (one Z).
Currently drug is included with the medical portion of the GHI deduction and contributions on the pay detail file but separated on the STARS funding file. Drug will now be shown as a separate deduction on the pay detail file and continue to be separated on the STARS funding file as you are currently doing. Note: there are no changes to the DA175-176 or STARS funding files. The drug deduction will continue to be included with the medical totals on the paycheck stub.
Effective with the 1999 GHI contract:
The following provider changes have been made for the State of Kansas 1999 GHI contract, effective December 27, 1998 paid January 22, 1999:
1) Providers being discontinued:
- Principal PPO: plan type 10, deduction codes PCPPAT and PCPPBT
STARS funding file, fund 7700 index codes 9717 and 9817
- Principal PSO: plan type 10, deduction codes PCPSAT and PCPSBT
STARS funding file, fund 7700 index codes 9722 and 9822
2) Providers being added:
- Community Health Plan: plan type 10, deduction codes COMMAT and COMMBT
- STARS funding file, fund 7700 add index codes 9723 and 9823
- Preferred Health Systems: plan type 10, deduction codes PHSCAT and PHSCBT
- STARS funding file, fund 7700 add index codes 9724 and 9824
- Vision Service Plan: new plan type 14, deduction codes VISNAT and VISNBT
- STARS funding file, fund 7700 add index codes 9739 and 9839
Make the above changes in your pay detail and STARS funding files, effective with the January 22, 1999 check issue date. Note : there are no changes to the DA175-176 files.
The attached AIndex Codes for Agency and DOA Clearing Funds@ replaces the one included with informational circular 98-P-007 dated October 31, 1997. All changes listed above are incorporated in this document, so be sure to refer to the dates above for actual implementation dates.
Once Payroll Services has been notified by Division of Personnel Services of the final GHI rate calculations for the 1999 contract period, an expanded spreadsheet of those rates by provider will be sent to you. Every effort will be made to distribute the spreadsheet no later than November 15, 1998. The spreadsheet will not have as many columns of data because of the changes discussed in this informational circular, but will include conversion data between the Rate Schedule codes in SHaRP 4.0 and the Flat Rate Id codes in SHaRP 7.0.
Questions regarding this informational circular should be directed to the Division of Accounts and Reports, Myrene Bears, Payroll Services, at (785) 296-5368.
SAM:JJM:mb
Attachment (.pdf)
DATE: | October 13, 1998 | ||
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SUBJECT: | SHARP Bi-Weekly Payroll Schedule for Calendar Year 1999 | ||
EFFECTIVE DATE: | Calendar Year 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | SHARP On-Cycle and Off-Cycle Payroll Processing Schedules |
Attached is the finalized SHARP bi-weekly on-cycle and off-cycle payroll schedules applicable to your agency for calendar year 1999.
The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered/submitted by the cutoff dates indicated on the schedules in order to ensure the timely issuance of pay for their employees. Time and leave interface agencies: please note that the deadline for submitting time and leave files for the payroll period ending December 28, 1998, is Thursday, December 24.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be changed to the following business day. Any payroll payments resulting from an off-cycle payroll will usually be dated three working days from the date the off-cycle was processed (i.e., payments resulting from a Monday off-cycle will almost always be dated the following Thursday; payments from a Wednesday off-cycle will almost always be dated the following Monday). Please note, however, that payments generated in the first off-cycle payroll for a payroll period (i.e., KA1 off-cycle) will be issued with the same paycheck/direct deposit date as the regular on-cycle pay date for that period. Agencies have until 5:00 p.m. on Mondays and every other Wednesday to enter adjustment and/or supplemental data into SHARP for processing in that nights off-cycle payroll.
Off-cycle payrolls for Regents' institutions are also regularly scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. All interface files must then be approved by the Division of Accounts and Reports for processing by 5:00 p.m. on the following Monday or every other Wednesday to be included in that nights off-cycle payroll. Regents' offcycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed that same night.
DATE: | September 30, 1998 | ||
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SUBJECT: | Board of Regents Institutions | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Abby Moore | (785) 296-2133 | |
APPROVAL: | |||
SUMMARY: | Date Changes on the UCI Quarterly Wage & Statistic Reporting |
The Department of Human Resources has notified Payroll Services that Y2K changes have been made to their Unemployment Compensation Insurance (UCI) reporting system. Effective with the third quarter 1998, reporting for the UCI Quarterly Wage Remittance Report and Dataset and the UCI Quarterly Statistic Report and Dataset must be modified for Y2K compliance per the attached formats. Regent Institutions are responsible for making the necessary modifications to their Wage and Statistic reporting to reflect the change.
The following are the changes to the Wage Remittance Dataset:
- Element "Wage Quarter/Year Code" increased to 9(5). This is the Quarter number and four digits of year (CCYY).
- Element "Wage First Name Initial" follows "Year Code." There is no longer any filler separating the two elements.
The following are the changes to the Statistic Dataset:
Header Record
- Element "Year" increased to 9(4). This is the four digits of year (CCYY) Detail Record
- Element "Filler" at end increased to X(9).
SAM:AM
Attachment (pdf)
DATE: | April 12, 1999 | ||
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SUBJECT: | Board of Regents Institutions | ||
EFFECTIVE DATE: | Various: see explanation below | ||
CONTACT: | Myrene Bears | (785) 296-5368 | |
APPROVAL: | |||
SUMMARY: | Update to Index Codes for Agency and DOA Clearing Funds |
The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 99-P-004 dated September 23, 1998. The following updates were made:
SLPKPERS for sick leave payout reserve, index code 9872, has again been included on the listing. It was accidently left off the attachment that was included with Informational Circular 99-P-004. There has been no change in any of the sick leave payout reserve index codes.
STATE TAX - UTAH, GEORGIA: index code 9768 will be used for any NEW states for which withholding is required.
UCI - ALL OTHER STATES EMPLOYER: index code 9828 will be used for any NEW states for which unemployment compensation insurance is required.
SAM:JJM:mb
Attachment (pdf)
DATE: | October 8, 1998 | ||
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SUBJECT: | SHARP 7.0 Payroll Policy Changes | ||
EFFECTIVE DATE: | October 4, 1998 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Payroll Policies Effective with SHARP 7.0 Implementation |
Following is a summary of the payroll policy changes that are effective on October 4, 1998 with the implementation of SHARP 7.0. These policy changes and the related procedural changes have been presented to agencies in the SHARP User Training meetings in July, August, and September 1998 and have been incorporated into the SHARP CBT training materials.
DIRECT DEPOSIT
- Payroll direct deposits can be made to multiple accounts in multiple financial institutions. Employees may designate up to a maximum of 6 financial institutions with up to 10 accounts in each institution. Employees can also request a combination of direct deposit accounts and still receive a paper check for a portion of their pay.
PAY CALCULATION
- State withholding tax will be rounded to the nearest whole dollar.
- Overtime will be calculated using the delivered PeopleSoft calculation that is FLSA compliant and approved by Division of Personnel Services. The overtime calculation is:
(Regular Hours X Hourly Rate) + (Overtime Hours X Hourly Rate) + Premium Pay Total Hours Worked in Work Week = FSLA
(Overtime Hours X Hourly Rate) + (Overtime Hours X FLSA Rate X .5) = Overtime Earnings
PAYROLL ADJUSTMENTS:
- Earnings will be 'advanced' to the employee in situations where an employee does not have sufficient net pay to allow deductions (and the corresponding employer contributions) for group health insurance, flexible spending accounts, legislative KPERS, legislative KPERS buyback, and optional group life insurance. In such cases, an arrears balance is automatically set up by the system. In situations where the employee has a tax garnishment, earnings will not be 'advanced'. The employer deductions will occur on the paycheck; arrears balances will be automatically set up by the system for the employee deductions not taken. The 'advance earnings' will increase the employee's taxable wages but will not be considered compensation for the purpose of benefits (i.e. Retirement, state leave assessment, and worker's compensation). At the time the advance earnings arrearage is collected the employee's taxable wages will be reduced.
- Three off-cycle payrolls will be processed for each pay period.
- Paycheck adjustments will update employee current year balances regardless of when the original paycheck was issued. Agencies must ensure that all payroll adjustments for the calendar year are processed by the end of the calendar year. Except for adjustments to correct FICA coverage, employees will not be issued a Form W-2C, Statement of Corrected Earnings, when a paycheck issued in a previous calendar year is adjusted or reversed.
- Payments for suggestion awards will be included on the employee's next regular paycheck.
- Agencies will be responsible for verifying with the State Treasurer's Office that a warrant has not been redeemed and completing the Paycheck Stop Payment Request form prior to processing a paycheck reversal or paycheck reprint.
- Only one "adjustment" transaction can be processed per person per off-cycle payroll due to PeopleSoft delivered software functionality. For an employee, only one adjustment, or one reversal, or one supplemental request can be made in one off-cycle payroll.
SHARP FORMS:
- All SHARP forms have been revised except the DA-186 Authorization for State Additional Withholding Tax Deduction. Copies of the forms are available in the CBT training materials. Agencies should make copies of the forms as needed. SHARP revised forms are:
- DA-179 SHARP Maximum Arrears Payback
- DA-180 SHARP Paycheck Reversal/Adjustment
- DA-182 SHARP Paycheck Reprint Request
- DA-184 SHARP Authorization for Direct Deposit of Employee Pay
- DA-187 SHARP Supplemental Paycheck Authorization
- DA-217 SHARP Position Data Sheet
- DA-218 SHARP Employee Data Sheet
- DA-219A SHARP Account Code Maintenance
- DA-219B SHARP Position Pool ID Maintenance
- DA-219C SHARP Department Budget Earnings/Deductions/Taxes
- DA-6P Paycheck Stop Payment Request
Payroll Services will make the necessary modifications to the SHARP system to reflect these policy changes. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.
SAM:JJM
DATE: | October 13, 1998 | ||
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SUBJECT: | Other Remuneration | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Authorization To Discontinue Tracking Other Remuneration In SHARP Version 7.0 |
Pursuant to the legal opinion dated October 12, 1998 as provided by the Department of Administration legal staff, the tracking of Other Remuneration in SHARP version 7.0 payroll system is being discontinued effective immediately.
There should NOT be any usage of the "REM" earnings code with the first paychecks issued out of SHARP version 7.0. This applies to the pay period beginning October 4, 1998 and ending October 17, 1998 with a paycheck date of October 30, 1998.
Please do not use the "REM" earnings code on the timesheets. If you have "REM" setup as additional pay, please access the Additional Pay 1 panel through Go/Compensate Employees/Maintain Payroll Data U. S./Use/Additional Pay. Enter 10/4/98 as the "EARN END DATE" to discontinue tracking Other Remuneration. Please be sure that you have the appropriate Additional Pay panel for the "REM" earnings code and that the "Addl Seq #" is set to 1. The "Ok to Pay" box should also be turned off (left blank).
SAM:JM:LI
DATE: | October 23, 1998 | ||
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SUBJECT: | Key Payroll Processing Dates in November, 1998 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Payroll processing deadlines which need to be noted due to the holidays which occur in November, 1998 |
Friday, November 27, 1998, is a designated holiday for state service in 1998; therefore, the pay date for the payroll period ending 11/14/98 is Wednesday, November 25, 1998. Direct deposit advises will be mailed on Monday, November 23; paychecks will be mailed on Tuesday, November 24.
Due to the Veterans Day and Thanksgiving holidays in November, there are some other variations to the 'normal' payroll processing deadlines which occur during the month of November. Agencies are asked to note the following key payroll processing dates which occur on a day of the week that is different than usual:
Thursday, November 5 - Regents' on-cycle payroll files for the payroll period ending 10/31/98 are due to the Department of Administration by 6:00 am on November 5 to ensure timely issuance of the pay on November 13, 1998. (These are normally due on Friday)
Friday, November 13 - Time and leave interface agencies must have time and leave files for the period ending 11/14/98 submitted to the Department of Administration for processing by 5:00 pm on November 13 (normally due on Monday). Paper-user agencies should submit time and leave documents to Payroll Services by 5:00 pm on November 13.
Monday, November 16 - Paysheets for the on-cycle payroll for the period ending 11/14/98 will be created on November 16 (normally created on Tuesday). All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 5:00 pm on November 16 in order to be reflected on the paysheets for this period. The first on-cycle preliminary pay calculation for the period ending 11/14/98 will also occur on November 16; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 5:00 pm.
Wednesday, November 18 - Final pay confirmation for the on-cycle payroll for the period ending 11/14/98 will occur on November 18 (normally occurs on Friday). All employees' time and leave records must be 'OK to Process' by 5:00 pm on November 18 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 5:00 pm on November 18 in order to be reflected in the final paycheck created for the employee. The general ledger extract for the period ending 10/31/98 will also be created on this date. Regents' on-cycle payroll files for the payroll period ending 11/14/98 are due to the Department of Administration by 6:00 am on November 18 to ensure timely issuance of the pay on November 25, 1998. PLEASE NOTE: Only two SHARP preliminary payroll calculations will occur for the period ending 11/14/98. In addition, an off-cycle will not be available to process late paychecks with the same pay date as the on-cycle payroll. The earliest date that an employee can receive an off-cycle check for the period ending 11/14/98 is Monday, November 30, 1998, providing the necessary supplemental or adjustment run control has been entered by 5:00 pm on Monday, November 23.
Thursday, November 19 - On-line access to SHARP for all users will not be available due to batch processing which must occur to ensure timely issuance of payroll on November 25, 1998.
Friday, November 20 - Final on-cycle SHARP payroll reports, with the exception of the KPAYWAGE, will be available on November 20 in the agency directories on the MVS. Final on-cycle payroll reports (except for the KPAYWAGE) for paper-user agencies will be distributed on November 20.
Monday, November 23 - KPAYWAGE reports for the on-cycle for the payroll period ending 11/14/98 will be available on November 23 in the agency directories. KPAYWAGE reports for paper-user agencies will be distributed on November 23. The first SHARP off-cycle (Run A) and the first Regents' off-cycle for the payroll period ending 11/14/98 will be processed November 23. SHARP agencies have until 5:00 pm on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle payroll. Regents' off-cycle payroll files must be approved by 5:00 pm on November 23 in order to be included in the off-cycle. In order to be approved by 5:00 pm on November 23, the Regents' off-cycle payroll files must be received by 5 pm on the preceding business day. PLEASE NOTE: paychecks for this off-cycle will be dated November 30, 1998 (NOT NOVEMBER 25). Encumbrance transactions for the SHARP on-cycle payroll for the period ending 11/14/98 will be posted to STARS during Monday night's STARS batch processing cycle.
Wednesday, November 25 - PAYDAY for the payroll period ending 11/14/98. The second SHARP off-cycle (Run B) and the second Regents' off-cycle for the payroll period ending 11/14/98 will be processed. SHARP agencies have until 5:00 pm on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle payroll. Regents' off-cycle payroll files must be approved by 5:00 pm on November 25 in order to be included in the off-cycle. In order to be approved by 5:00 pm on November 25, the Regents' off-cycle payroll files must be received by 5 pm on the preceding business day. Checks for this off-cycle payroll will be dated December 2, 1998.
Attached is a calendar for the month of November, 1998 which highlights the key payroll processing activity for the month. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to these informational circulars.
Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of the payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel. On-line user agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paperuser agencies will be notified of any changes to these dates via telephone.
SAM:JJM:LI
Attachment (pdf)
DATE: | October 26, 1998 | ||
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SUBJECT: | Change in Social Security Base Rate | ||
EFFECTIVE DATE: | January 1, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Social Security Wage Base Increases to $72,600 effective January 1, 1999 |
Beginning January 1, 1999 the social security wage base for OASDI will be increased. The employee and employer contribution rates will remain the same.
The OASDI wage base will increase to $72,600, up from the 1998 wage limit of $68,400. The employee contribution rate remains at 6.2% with a maximum employee contribution of $4501.20. There is no limit on the Medicare wage base. The employee and employer contribution rates for the Medicare tax remain at 1.45%.
For Federal employees at Kansas State University who were hired before January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45% and beginning January 1, 1994, there is no maximum. Federal employees hired after January 1, 1984 will have a contribution maximum for OASDI of $4501.20 and HI (Medicare) will have no maximum. The employer rates remain the same as the employee rates.
For Kansas Police and Fireman's program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% and beginning January 1, 1994 there is no maximum.
SAM:JJM:LI
DATE: | October 23, 1998 | ||
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SUBJECT: | SHARP Version 7.0 - Payroll Pointers #1 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Helpful Payroll Processing Information |
To assist users in their understanding of the upgraded SHARP 7.0 payroll system and to inform users of new developments based on recent testing, Payroll Services in the Division of Accounts and Reports has compiled the following list of payroll pointers. Please provide a copy of this summary to all SHARP payroll users in your agency.
GENERAL:
- Arrearage collection - If an employee has an outstanding arrearage balance, the on-cycle pay calculation will collect as much of the arrearage as possible, reducing the employee's net pay to zero. Agencies should monitor the KPAY007 Deductions in Arrears Report for large arrearage balances and establish deduction overrides where needed. Agencies should also monitor the preliminary KPAY002-Payroll Register for zero net paychecks and determine if action should be taken prior to final pay calculation.
- Direct Deposit - With enhanced functionality in 7.0, employees are now able to allocate net pay between multiple financial institutions and also receive a paycheck along with direct deposit. After an employee makes a change to their direct deposit information and the change has been pre-noted, agencies should verify the correct distribution of the employee's net pay by monitoring the final KPAY002 report which shows net pay by paycheck and advice (ie, 'C' or 'A' beside the net amount on the right side of the report). Also, the KDDP002-Direct Deposit Register lists net pay amounts for each account within each financial institution.
If an employee is receiving both a paycheck and advice, the pay stub for each will only show the net pay for that paycheck/advice. The net from each should be added together to obtain the employee's total net. All other earnings and deductions shown on the pay stub reflect the employee's total compensation for the pay period. - On-line Paycheck - Users must be logged into SHARP through the Application Server in order to use the new on-line paycheck functionality. Also, during the time period that on-cycle paychecks are being calculated (Wednesday through Friday of the week before payday), users will receive an error message if they try to calculate an on-line paycheck.
- Earnings Codes -The new earnings code for regular overtime is 'OTP' and 'O28' for 28-day overtime. The following earnings codes have been inactivated effective 10/4/98: OVT, FCB, IEL, N17, SF0, SF2, and SF4.
ADJUSTMENTS:
- Benefit/Deduction Adjustments - Savings plan and retirement plan changes (KPERS, Deferred Compensation, TSA, and VTSA) that result in paycheck adjustments can be processed the same as in 4.02. The effective-dated benefit change should be made to the employee's record prior to entry of the paycheck adjustment request. These should not be submitted to Payroll Services as stated in previous memorandums and CBT training materials.
- Multiple Adjustments - If multiple transactions are requested for the same employee in the same off-cycle, the priority for processing will be: supplemental, centrally entered adjustment, agency entered adjustment and reversal. The transactions that do not process will show on-line as a payroll error message and also on the KPAY213 Final Error Messages report. Paycheck reprints and reversals can process in the same off-cycle as any of the above transactions.
- Prior Year Adjustments - If a paycheck is requested for an adjustment that is over 2 years old, it will error during payroll calculation. If an adjustment is required for these paychecks, complete the DA-180 form and send to Payroll Services for processing.
- Time Adjustments - New indicators will display under the 'Adj' column on the left side of the Time Adjustments panel. When a new row is added, the indicator displays 'I'. If the adjustment is pay affecting, the indicator will change to 'Y' when the panel is saved. If the adjustment is non-pay affecting, the indicator will change to 'L' when the panel is saved. The 'L' rows will NOT update to payroll for a pay affecting adjustment. The 'Y' rows will be grayed out when you exit the panel. If a keying error was made, additional 'Y' rows can be added until the off- cycle processes.
- Earnings Codes - When adjusting a paycheck for an exempt employee, the new 'leave' earnings codes should be utilized. For example, 'VAE' should be used in place of 'VAC' for vacation leave. Regular hours will not display correctly on the paycheck for an exempt adjustment, but the amount will be correct.
Adjustments to paychecks with inactivated earnings codes (#4 under 'GENERAL') will error during the payroll process. The on-line system will not prevent agencies from requesting an adjustment to a paycheck containing an inactivated earnings code; however, the off-cycle payroll process will cause the paycheck to error. If an adjustment is required for these paychecks, complete the DA-180 form and send to Payroll Services for processing. - Taxes - Taxes will be calculated at the rates in effect as of the paycheck date for the taxable grosses on the adjustment check. Preliminary pay calculations should be thoroughly reviewed so that adjustments are kept to a minimum. Adjustments should be processed in a timely manner to ensure that the adjustment is processed in the same calendar year as the paycheck being adjusted.
SAM:JJM:LK
DATE: | November 19, 1998 | ||
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SUBJECT: | New Tables for State Withholding Tax for 1999 | ||
EFFECTIVE DATE: | January 1, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | New State Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 1999 |
The Kansas Department of Revenue has issued new percentage tables for computing the state withholding tax deductions effective for all paychecks issued on or after January 1, 1999. The standard deduction for one withholding allowance is changing to $2250.00 per year in calendar year 1999.
The attached tables have been prepared for use in computing all state withholding tax payments for wages paid on or after January 1, 1999. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.
At this time, Payroll Services has not been notified of any changes in the federal income tax withholding or earned income credit tables most recently issued in Accounts and Reports Information Circulars No. 98-P-011 and 98-P012 dated November 26, 1997. Any changes which may occur to the tables will be issued in a separate informational circular when the information is available.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents Institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.
SAM:JJM:EB
Attachment (pdf)
DATE: | December 4, 1998 | ||
---|---|---|---|
SUBJECT: | 1998 Calendar Year-End Processing | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Schedule for Processing Transactions During 1998 Calendar Year-End |
As 1998 calendar year-end approaches, the Division of Accounts and Reports has begun making preparations for the issuance of calendar year 1998 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 1998 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 1999 balances; a corrected W-2 (Form W-2C) for 1998 will not be issued for the employee involved.
FINAL 1998 PAYCHECK
The final on-cycle paycheck for calendar year 1998 will be issued December 24, 1998. Paychecks will be mailed on December 23, 1998 and advises will be mailed on December 22, 1998. The final off-cycle paycheck for calendar year 1998 will be issued on December 31, 1998 for the off-cycle processed on December 28, 1998.
PAYCHECK REVERSALS
Any 1998 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 5:00 p.m. on December 28, 1998 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHARP Paycheck Reversal Adjustment', for any paycheck reversals by 12:00 noon on December 28, 1998. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 28, 1998 will update calendar year 1999 balances and will not be reflected in the employee's 1998 W-2.
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 5:00 p.m. on December 28, 1998 to enter paycheck adjustment requests for any 1998 paychecks. Adjustments processed in the December 28, 1998 off-cycle payroll will be reflected on the employee's 1998 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 1998 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal Adjustment', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 21, 1998. The December 21 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.
Since the upgrade to version 7 of SHARP, a bi-weekly deduction amount is no longer maintained for Flexible Spending Account deductions (FSA). Instead, FSA deductions are calculated by subtracting the year-to-date FSA deduction amount from the employee's annual pledge amount and then dividing by the number of payroll periods remaining in the calendar year (including the payroll period being processed). As a result, problems could occur during the last three offcycles of the calendar year for the payroll period ending December 12, 1998 (ie, off-cycles processed on December 21, 23 and 28) if a paycheck adjustment is processed for a check which contains an FSA deduction and the employee has reached their FSA pledge amount for the year. In this situation, the adjustment would result in a refund to the employee of the FSA amount on the paycheck being adjusted. Agencies should not enter paycheck adjustment requests in the three off-cycles for the period ending December 12 if the paycheck contains an FSA deduction and the employee has reached their FSA annual pledge amount. Instead, agencies should submit Form DA-180 to Payroll Services for the paycheck needing to be adjusted.
Since the upgrade to version 7 of SHARP, a bi-weekly deduction amount is no longer maintained for Flexible Spending Account deductions (FSA). Instead, FSA deductions are calculated by subtracting the year-to-date FSA deduction amount from the employee's annual pledge amount and then dividing by the number of payroll periods remaining in the calendar year (including the payroll period being processed). As a result, problems could occur during the last three off-cycles of the calendar year for the payroll period ending December 12, 1998 (ie, off-cycles processed on December 21, 23 and 28) if a paycheck adjustment is processed for a check which contains an FSA deduction and the employee has reached their FSA pledge amount for the year. In this situation, the adjustment would result in a refund to the employee of the FSA amount on the paycheck being adjusted. Agencies should NOT enter paycheck adjustment requests in the three off-cycles for the period ending December 12 if the paycheck contains an FSA deduction and the employee has reached their FSA annual pledge amount. Instead, agencies should submit Form DA-180 to Payroll Services for the paycheck needing to be adjusted
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 21 for inclusion in the December 28 off-cycle. However, if a large volume of DA-180 forms is received on the December 21 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 1998 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
Adjustment requests entered on or after December 29, 1998 which are adjusting paychecks issued prior to January 1, 1999 will not result in a W-2C; the adjustment will update the employee's 1999 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests which are entered either by agencies or centrally by Payroll Services, on or after December 29 will update the employee's 1999 payroll balances.
REGENTS' INSTITUTIONS: OFF-CYCLE FILES
1998 Paycheck Reversals
Regent Institutions must submit all transmittals for 1998 paycheck reversals by 5:00 p.m. on Thursday, December 24, 1998 in order to update the employee's 1998 W-2. . These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 1999 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
1998 Adjustments and Supplementals
In order to update employee balances for 1998, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Thursday, December 24, 1998. The off-cycle for the pay period ending December 12, 1998 generated on the night of Monday, December 28, 1998 will have an issue date of December 31, 1998; all activity for this off-cycle will be reflected in the employees' 1998 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 1998 date.
1999 Adjustments and Supplementals
With the exception of arrearages or refunds for FICA and or Medicare taxes withheld on or before January 1, 1999, any adjustments or supplementals submitted after 5:00 p.m. on Thursday, December 24, 1998, will be considered to be 1999 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 1999 business, the employee's 1999 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 1999 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 1999, agencies should default the pay adjust check date to January 1, 1999).
With the exception of FICA and/or Medicare tax refunds or arrearages for tax years prior to 1999, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 1999 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 1999 payroll balances.
Arrearages or refunds for FICA and or Medicare taxes for taxable years prior to 1999 must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year FICA and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments which contain a prior year indicator of 'P' will be rejected and will not be processed.
Any prior year FICA and/or Medicare refunds/arrearages identified after the December 28, 1998 deadline will not be processed until the February 1, 1999 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 25, 1999. The deadline for submitting payroll interface files for the February 1 off-cycle is 5:00 p.m. on January 29, 1999.
GENERAL REMINDERS
The deduction END date on the general deduction panel for 1998 United Way contributions should be dated between December 13, 1998 and December 26, 1998 in order for the last 1998 deduction to be taken on the paycheck issued December 24, 1998. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 1999, agencies can enter a new row effective-dated between December 13, 1998 and December 26, 1998 in order for the first deduction for 1999 to be taken on the January 8, 1999 paycheck. If the 1999 deduction is to be taken over 26 pay periods, a deduction end date of December 12, 1999 should be entered.
Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 28, 1998 (December 21, 1998 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
One of the changes implemented at the time of the v7.0 SHARP upgrade is the new advance ('ADV') earnings being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 1998 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 12, 1998 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 24, 1998 (i.e., on-cycle for the payroll period ending December 12) should be collected by personal reimbursement to avoid the advance from being included in the employee's 1998 Form W-2.
The 1998 W-2 forms will again be mailed directly to the employee's home address stored on the Personal Data 1 panel in the Personnel Administration window. Please make any name, address, or social security number changes to this panel by January 1, 1999 to guarantee their inclusion in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between January 1, 1999 and January 15, 1999.
Regents Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on January 1, 1999.
W-2 forms will be mailed on or before January 31, 1999. A message will appear on the SHARP message panel to advise agencies of the W-2 mailing date during the latter part of January.
Attached is a calendar for the month of December 1998 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular Nos. 98-P-005, dated October 16, 1997 and 99-P-005, dated October 13, 1998. The attached calendar is intended for use as a supplementary reference tool to these informational circulars.
Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel. On-line agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.
Attachment (pdf)
SAM:LK
DATE: | December 8, 1998 | ||
---|---|---|---|
SUBJECT: | New Tables for Federal Withholding Tax for 1999 | ||
EFFECTIVE DATE: | January 1, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 1999 |
The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 1999. In addition, the standard deduction for one withholding allowance changes to $2,750.00 per year in calendar year 1999.
The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 1999. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount. Please refer to Division of Accounts and Reports Informational Circular No. 99-P-013, issued November 19, 1998 for the state withholding tax formula.
IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 1998 must file a new W-4 form for calendar year 1999 if they wish to continue their exempt status.
Employees may be eligible for the withholding tax exempt status if the following criteria are met:
- The employee had no income tax liability in the previous year; and,
- The employee anticipates no income tax liability in the upcoming year.
Additionally, IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit, for income earned in the United States, to file a new 8233 form annually. Employees who claimed a non-resident alien exempt status in calendar year 1998 must file a new 8233 form for calendar year 1999 if they wish to continue their non-resident alien exempt status.
The Department of Administration will be updating the SHARP federal and state tax data records on December 21, 1998, for all employees currently claiming exemption from withholding; the tax data record updates will be effective January 1, 1999. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exemption from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exemption from withholding in 1999. The new tax data row should be added effective January 2, 1999. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
A new-effective dated row will also be added in the SHARP federal tax data records on December 21, 1998 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 1999. The new tax data row will be dated January 2, 1999. Payroll Services will update the 8233 indicator on the tax data records once a form for calendar year 1999 has been submitted.
The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose withholding tax status was updated on December 21, 1998. The listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.
The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.
SAM:JJM:EB
Attachment (pdf)
DATE: | December 9, 1998 | ||
---|---|---|---|
SUBJECT: | New Tables for Earned Income Credit for 1999 | ||
EFFECTIVE DATE: | January 1, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 1999 |
The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 1999. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 1999. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.
The Internal Revenue Service has released the 1999 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 1999 Form W-5 is attached; the 1998 Form W-5 expires on December 31, 1998. The new form must be filed with the employer before advance 1999 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. Advance EIC qualifiers must have at least one qualifying child and expect that 1999 earned and adjusted gross income will each be less than $26,928 (include spouses' income if filing jointly), in addition to meeting other criteria. Employees cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income) for 1999. A nonresident alien may not claim the EIC for 1999 unless married to a U.S. citizen and elects to be taxed as a resident alien for all of 1999.
There are two employee status categories that can effect the amount of advance EIC payments: (a) single or married without spouse filing certificate, and (b) married with both spouses filing certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments. When updating the employee's EIC status in SHARP, please verify that the federal tax data record correctly reflects the employee's status as shown on the completed Form W-5.
The Department of Administration will be updating the existing SHARP federal tax data records on December 21, 1998, for all employees currently claiming the EIC to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates will be effective January 1, 1999. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 1999; paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 1999. The new tax data row should be added effective January 2, 1999. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.
The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose EIC status was updated in SHARP on December 21, 1998. The listing will include department, employee ID, name, SSN, and EIC exempt status.
The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regents institutions are responsible for implementing the new EIC rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.
SAM:JJM:EB
Attachment (pdf)
DATE: | December 23, 1998 | ||
---|---|---|---|
SUBJECT: | Paycheck Adjustments | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Joyce Dickerson | (785) 296-3979 | |
APPROVAL: | |||
SUMMARY: | Processing Paycheck Adjustments for Paychecks Which Contain an FSA Deduction and the Original Paycheck was Issued in a Previous Calendar Year |
Effective with the implementation of SHARP v7.0 in October, 1998, bi-weekly deduction amounts are no longer maintained for Flexible Spending Account (FSA) deductions. Instead, FSA deductions are calculated by subtracting the year-to-date FSA deduction amount from the employee's annual pledge amount and then dividing by the number of payroll periods remaining in the calendar year (including the payroll period being processed). This change, coupled with the fact that all payroll adjustments are treated as current year activity, means that agencies will need to follow specific procedures in order to accurately process a paycheck adjustment when the original paycheck was issued in a previous calendar year and the paycheck contains an FSA deduction.
For paycheck adjustments, the off-cycle payroll process will determine which paycheck deductions to calculate based on the earnings end date of the paycheck being adjusted. In the case of FSA deductions, the off-cycle will select the maximum effective-dated FSA benefit information which is less than or equal to the earnings end date on the paycheck being adjusted. The 'Annual Pledge' and 'Contributions YTD' from this effective-dated row will be used in calculating the FSA deduction for the paycheck adjustment; however, the number of payroll periods remaining in the calendar year will be based on the payroll period in which the adjustment is being processed.
To illustrate:
EXAMPLE
On-cycle paycheck #123456 was originally issued on May 15, 1998 for an FLSA nonexempt employee for the payroll period ending 05/02/98; the paycheck is for the earnings periods 4/19/98 through 4/25/98 and 4/26/98 through 5/02/98. There are 17 payroll periods remaining in the calendar year (including the period ending 05/02/98) at the time the on-cycle is calculated. The employee is enrolled in FSA benefits; the employee's current FSA row is for coverage effective 01/01/98 and reflects the following information: annual pledge amount = $2600.00 and contributions YTD = $900.00. The FSA amount calculated on paycheck #123456 is $100.00
In February 1999, the agency realizes the paycheck needs to be adjusted due to shift differential being underreported for the employee for the payroll period ending 05/02/98. The FSA row for the coverage period effective 01/01/98 now reflects the following information: annual pledge amount = $2600.00 and contributions YTD = $2000.00. The agency requests a paycheck adjustment for paycheck #123456 in the second off-cycle for the payroll period ending 02/06/99; there are 23 payroll periods remaining in calendar year 1999 (including the period ending 02/06/99). The off-cycle will calculate the FSA deduction for the adjustment check as follows: ($2600 - 2000) / 23 = $26.09. This adjustment will result in an FSA refund of $73.91 to the employee. If the contributions YTD had been equal to $2600.00 (ie, the annual pledge amount), the refund would have been for $100.00.
To prevent erroneous FSA refund/arrearages from occurring on paycheck adjustments which are processed in calendar year 1999 for paychecks issued prior to 1999 which also contain an FSA deduction, the following procedures should be followed:
- Prior to requesting the paycheck adjustment on-line, the agency should contact the Benefits Unit in the Division of Personnel Services and request that a deduction override amount be entered on the appropriate FSA benefit row for the employee. The override amount should be for the amount deducted on the original paycheck (in the example above, the override amount would be $100.00).
- Once the override amount has been entered, the agency should enter the paycheck adjustment request.
- After the off-cycle has been generated, verify that the adjustment processed correctly.
DATE: | January 11, 1999 | ||
---|---|---|---|
SUBJECT: | 1999 W-2 Production Reports | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Sunni Zentner,Payroll Services | (785) 296-7058 | |
APPROVAL: | |||
SUMMARY: | 1999 W-2 Production reports to be Run Throughout the Year |
In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 1999 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. Following is a list of the dates the 1999 W-2 production reports are scheduled to be generated:
- Friday, January 22, 1999
- Friday, February 5, 1999
- Friday, March 5, 1999
- Friday, April 2, 1999
- Friday, April 30, 1999
- Friday, May 14, 1999
- Friday, June 11, 1999
- Friday, July 9, 1999
- Friday, August 6, 1999
- Friday, September 3, 1999
- Friday, October 1, 1999
- Friday, October 29, 1999
- Friday, November 12, 1999
- Wednesday, November 24, 1999
- Friday, December 10, 1999
- Thursday, December 23, 1999
Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency directory on the first working day following the above listed scheduled dates. Agencies should access the TAX910ER through Rapid Filer to review the report; a copy of the TAX910ER will be distributed to paper agencies. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2s for 1999 are complete, a "final" KTXPR55 report will be generated for each agency's information and review. An informational circular will advise agencies of the date the final KTXPR55 report is created.
In addition, the Regents' institutions will receive, via either e-mail or fax from Payroll Services, a copy of the errors from the 1999 KTAX900 report. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regents' responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.
Regents' institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.
SAM:JJM
DATE: | January 7, 1999 | ||
---|---|---|---|
SUBJECT: | Visa Permit Record on Regents' Inbound Management Reporting Interface | ||
EFFECTIVE DATE: | February 1, 1999 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | |
APPROVAL: | |||
SUMMARY: | Add/Change Capability for Visa Permit Record on Regents' Inbound Management Reporting Interface |
A field has been added to the Visa Permit Record on the Regents inbound management reporting interface (MRI) to allow for the designation of the record as an Add (New Record) or Change (Change existing record). The valid values are 'A' (Add) or 'C' (Change). A copy of the updated MRI layout is attached to this circular; the Visa Permit Record is located on page 12 of the layout and is the only record being changed at this time.
As the Visa Permit Data is not an effective dated record, the 'Add' capability should only be utilized if there is no existing Visa Permit record in SHARP for the employee. The 'Change' capability should be used to make a change to an employee's existing Visa Permit Data record. The new file layout will go into effect for all Regent MRIs submitted for processing on or after February 1, 1999.
Any questions regarding this information should be directed to Nancy Ruoff in the Payroll Services Section at (785) 296-5369.
SAM:NR
Attachment (.pdf)
DATE: | January 11, 1999 | ||
---|---|---|---|
SUBJECT: | W-2 WAGE AND TAX STATEMENTS FOR CALENDAR YEAR 1998 | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | ||
Sunni Zentner | (785) 296-7058 | ||
Debbie Esquibel | (785) 368-6313 | ||
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee 1998 W-2 Statements |
The final version of the KTXPR55 W-2 Listing has been generated. The KTXPR55 report contains all information printed on the 1998 W-2 Wage and Tax Statement for each employee of your agency. Agencies which are on-line users of SHARP will find the report in your agency mailbox on the MVS dated January 7, 1999. The KTXPR55 W-2 Listing will be distributed to paper user agencies via the normal report distribution process.
The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 1998 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 1998 W-2's.
In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.
In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.
All 1998 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 15, 1999. At that time, they should be sorted in alphabetical order by last name, first name, middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.
In cases where the 1998 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
Duplicate laser printed W-2's for calendar year 1998 will be printed for distribution to the agencies on each Monday, beginning February 15, 1999 and continuing through April 12, 1999. The agencies are requested to submit one blanket request for duplicate 1998 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests should be in social security number order and should include each employee's name and employee ID in addition to the SSN. Requests for duplicate W-2's for years prior to 1998 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services.
Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. On-line agencies may also want to consider utilizing the SHARP KPAY318, 'Year to Date Balances' report to assist in answering W-2 related questions. The KPAY318 report is located in SHARP v7.0 under the 'Compensate Employees' window, 'Maintain Payroll Data U.S.', 'Report', 'Year to Date Balances'. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.
Beginning with 1998 returns, the Internal Revenue Service has eliminated Form 4782, Employee Moving Expense Information. Therefore, agencies will no longer receive this form for employees of their agency. For 1998 and hereafter, only qualified reimbursements made directly to an employee will be reported in Box 13P. Nonqualified expenses will continue to be reported as wages and will be reflected in boxes 1, 2, 5 and 17 on Form W-2. Any amounts reported in Box 13P are reflected on the KTXPR55 report.
Please note that the on-cycle paychecks dated December 24, 1998 and the off-cycle paychecks dated December 31, 1998 are included in the 1998 W-2 amounts.
SAM:JJM:wm
Attachment (.pdf)
DATE: | January 11, 1999 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | January 10, 1999 | ||
CONTACT: | Janice Wolfley, Payroll Services | (785) 296-3699 | |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for AFSCME Locals |
Please be advised that the regular bi-weekly dues for members of the following AFSCMEKansas Public Employees' Union Council 64 will be changing effective with the payroll period beginning January 10, 1999 and ending January 23, 1999 paid February 5, 1999:
Deduction Code | Union | Amount |
---|---|---|
ORG270 | Local 1270 | $ 9.44 |
ORG357 | Local 1357 | $ 9.95 |
ORG371 | Local 3371 | $11.80 |
ORG417 | Local 1417 | $10.16 |
ORG419 | Local 1419 | $10.16 |
ORG438 | Local 1438 | $10.16 |
ORG439 | Local 1439 | $10.16 |
ORG469 | Local 1469 | $10.07 |
ORG689 | Local 1689 | $10.16 |
ORG777 | Local 2777 | $ 9.42 |
The Division of Accounts and Reports, Payroll Services team will make the necessary updates to the SHARP system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 5, 1999.
SAM:JJM:CJ
DATE: | January 29, 1999 | ||
---|---|---|---|
SUBJECT: | Non-Resident Alien Earnings | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | |
APPROVAL: | |||
SUMMARY: | Clarification on Payroll Issues for Regents' Payroll System Agencies Reporting Earnings for Non-Resident Alien Employees |
Effective with the implementation of SHARP v7.0 in October, 1998, Non-Resident Alien employees and 1042 earnings balances are maintained utilizing as 'vanilla' an approach to PeopleSoft as possible. Following is a clarification of certain issues that have been addressed since the implementation of SHARP v7.0.
- Earnings for Non-Resident Alien employees should be submitted by Regents institutions using earnings codes NR4, NR5, NF4, or NF5. SHARP evaluates the employee's current 1042 balance, tax treaty limit, and current NR or NF earnings to determine the amount of earnings to be updated to 1042 balances and/or W2 balances. Once an employee has reached the 1042 tax treaty maximum eligible earnings limit for the year, the system will automatically begin updating W2 balances.
- PeopleSoft v7.0 does not evaluate maximum presence limits for Non-Resident Alien employees. Regents institutions are responsible for determining when a Non-Resident Alien employee meets the maximum presence limit. Once an employee meets the maximum presence limit, the employee is no longer eligible for NR4, NR5, NF4, or NF5 earnings and all future earnings should be reported using REG (or another valid earnings codes). An employee's Special_FWT_Status must remain as an 'A' (Non-Resident Alien) on the maximum effective dated Fed Tax Data row for any year in which they have 1042 earnings. After an employee meets the maximum presence limit, the employee's Special_FWT_Status should be set to 'N' (None) for subsequent years.
- It continues to be the responsibility of the Regents institutions to correctly determine the applicability of a tax treaty for any income in question and to inform the Department of Administration of any changes to the tax treaty table. Many countries have multiple treaty IDs on the tax treaty table to identify various income code/income limit/payer of income combinations. It is the responsibility of the Regents institutions to gather all of the necessary information to make the correct determination of tax exemption and treaty ID. Regents institutions should review the treaty IDs assigned to employees on a regular basis to insure the correct treaty ID is in use.
- Non-Resident Alien employee information for country, income code, and year-to-date 1042 taxable gross is provided on the Regent's Outbound Management Reporting File (start position 5951). Regents institutions should review year-to-date 1042 taxable gross balances on a regular basis throughout the year and forward any questions regarding differences to Sunni Zentner in the Payroll Services Section at (785) 296-7058.
SAM:JJM:NR
DATE: | March 6, 1999 | ||
---|---|---|---|
SUBJECT: | Employee Taxability for the Value of Certain Uses of State-Owned Vehicles | ||
EFFECTIVE DATE: | April 1, 1999 | ||
CONTACT: | Nancy Ruoff | (785) 296-5369 | |
APPROVAL: | |||
SUMMARY: | Information Pertaining to Employee Use of State-Owned Vehicles |
This Informational Circular is issued as an update to Informational Circular No. 98-P-024, dated March 16, 1998. The information provided herein is based on current provisions of Internal Revenue Code and Regulations, as well as Kansas Statutes Annotated and Administrative Regulations.
REQUIREMENTS
If a state-owned vehicle is used for business purposes only and kept on the business premises except for business use and repair, there is no taxable "personal use". However if a vehicle is taken to an employee's personal residence (commuting) or is used for other "personal use", there is fringe benefit income. (Except for those exclusions set forth in Appendix D.)
In order to limit the fringe benefit income to commuting only, the following conditions must exist:
- The vehicle must be owned or leased by the employer and be provided to employees for use in connection with the employer's business;
- For business reasons, the employer requires the employee to commute to and/or from work in the vehicle;
- The employer establishes a policy under which the employee may not use the vehicle for personal purposes, other than commuting or de minimis personal use;
- The employer reasonably believes that, except for de minimis use, the employee does not use the vehicle for any personal purpose other than commuting;
- The employee required to use the vehicle is not a control employee, i.e., an elected official, or appointee of the Governor who is confirmed by the Senate or other state officer comparable to the above officials; and
- The employer accounts for the commuting use by including the appropriate amount in the employee's gross income.
- The amount of fringe benefit income to be reported must be determined utilizing one of the IRS approved valuation methods, i.e., Annual Lease, Commuting, or Cents-Per-Mile valuation rules. See Appendix A.
- Field employees, such as inspectors, who work (travel) out of their homes and have no office or duty location, would be subject to these reporting requirements. However, only trips incidental (other than the initial trip to and the trip home at the end of the day) are considered commuting for IRS reporting purposes.
A work sheet for computing the biweekly fringe benefit income amount has been designed to assist agency personnel/payroll officers in computing the biweekly amount of the fringe benefit income. See Statement of Personal Usage for State Provided Vehicles, Appendix B.
POLICY
- The State's adopted policy as stated in K.S.A. 8-301 is that all state-owned vehicles are for official state business only, and may not be used for private business or for pleasure. However, specific exceptions contained in K.A.R. 1-17-2a permit employees to drive state vehicles home as follows:
(a) (1) State-owned or leased motor vehicles shall not be used to commute between the employee's residence and the employee's official work station, except:
- when parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism;
- when the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God; or
- for trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
- All employees who have state vehicles assigned to them for one or more days and who park the vehicle overnight at their residence, are subject to the requirement for reporting of fringe benefit income under (1) the Annual Lease Valuation Rule, (2) the Commuting Valuation Rule ($1.50 per one-way trip), or (3) the Cents-Per-Mile Valuation Rule. See Appendix A. Vehicles excluded from the reporting requirement are denoted in Appendix D.
- The value of the fringe benefit income derived from such use of state vehicles shall be determined by the agencies from work sheets and data supplied by the employees (Appendices B and C) and reported within the payroll system.
AGENCY RESPONSIBILITY
- Agencies shall:
- Identify and notify those employees who use state vehicles and who park those vehicles overnight at their residence (commuting) or use such vehicles for other "personal use" (except for those exclusions enumerated in Appendix D) that such use of the vehicles is deemed to be fringe benefit income valued at one of the three methods set forth herein, resulting in a taxable event to the employee.
- Agencies shall determine and install a procedure similar to the attached accounting work sheet that will record the work days on which vehicles were parked overnight at the employee's residences and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include as a minimum the data specified in the attached Statement of Personal Usage for State Provided Vehicles, Appendix B, including agency code, employee's name, social security number and vehicle license number.
- The payroll system shall use reports or data provided by the agencies to:
- Record fringe benefit income chargeable to each affected employee listed.
- Calculate and withhold from each affected employee's pay the social security, Medicare and retirement contributions due.
- Calculate and withhold from each affected employee's pay the federal and state income tax due.
- Calculate the employer's share of social security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
- Remit all withheld taxes and contributions to the appropriate authorities.
- Report on each affected employee's form W-2, the total fringe benefit income for the calendar year.
SAM:JJM:NR
Attachments (pdf)
DATE: | March 8, 1999 | ||
---|---|---|---|
SUBJECT: | VTSA Company Changes | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Tax Sheltered Annuity Company Name Change |
The Kansas Board of Regents has been notified that First American National Securities, no. 828, has changed its name to PFS Investments Inc. All other information about the company, including mailing address, remains unchanged.
Payroll Services will make the necessary modifications to the SHARP system to reflect this company name change. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.
SAM:JJM:EB
DATE: | March 16, 1999 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | April 4, 1999 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for SEAK Organization 050 |
Please be advised that the regular bi-weekly organization dues for members of the State Employees Association of Kansas, deduction code 'ORG050', will be changing to $4.50 per biweekly period effective with the payroll period beginning April 4, 1999 and ending April 17, 1999 paid April 30, 1999.
The Division of Accounts and Reports, Payroll Services team will make the necessary updates to the SHARP system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after April 30, 1999.
SAM:JJM:NR
DATE: | April 8, 1999 | ||
---|---|---|---|
SUBJECT: | Change in Organization Dues Deduction Amount | ||
EFFECTIVE DATE: | April 4, 1999 | ||
CONTACT: | Janice Wolfley | (785) 296-3699 | |
APPROVAL: | |||
SUMMARY: | Organization Dues Changes for AFSCME Local 1270 |
Please be advised that the regular bi-weekly organization dues for members of the AFSCME Local 1270 organization, deduction code 'ORG270', will be changing to $10.11 per bi-weekly period effective with the payroll period beginning April 4, 1999 and ending April 17, 1999 paid April 30, 1999.
The Division of Accounts and Reports, Payroll Services team will make the necessary updates to the SHARP system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after April 30, 1999.
SAM:JJM:NR
DATE: | June 1, 1999 | ||
---|---|---|---|
SUBJECT: | Housing, Food Service and Other Employee Maintenance | ||
EFFECTIVE DATE: | Immediately | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Annual review of housing, food service and other employee Maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 |
Attached is a Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates will require entry into the SHaRP system through Compensate Employees window, Maintain Payroll Data U.S. menu, Additional Pay panel. Paper agencies should complete an Employee Data Sheet (DA-218 Part B) and submit it to the Division of Personnel Services for entry into SHaRP.
Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents are responsible for updating any rate changes into their payroll system.
Attachment: DA-171 (.pdf)
SAM:JJM
DATE: | June 7, 1999 | ||
---|---|---|---|
SUBJECT: | Addition of New Earnings Codes | ||
EFFECTIVE DATE: | Payroll period beginning June 13, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | (Roger.Basinger@da.state.ks.us) |
APPROVAL: | |||
SUMMARY: | Addition of New Earnings Codes for FY 2000 |
Executive Directive 99-279 establishes two 5% pay differentials (Earnings Codes PD2 and PD3) for Juvenile Corrections Officers I with the Juvenile Justice Authority. The PD2 earnings code is to be used when the Juvenile Corrections Officers I is performing lead worker duties during the absence of a supervisor. The PD3 earnings code is to be used when the Juvenile Corrections Officer I is performing duties in a specialty unit that deals with acute behavior, chronic behavior, or psychiatric problems.
The earnings code will be displayed as follows:
Code | Description | Check Stub |
---|---|---|
PD2 | Pay Diff JJA Lead Worker 5% | Regular |
PD3 | Pay Diff JJA Specialty Worker 5% | Regular |
Each of the above earnings codes are effective with the payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. Earnings codes 'PD2' and 'PD3' are established for use only by the following agencies: Atchison Juvenile Correctional Facility (355), Beloit Juvenile Correctional Facility (325), Larned Juvenile Correctional Facility (412), and the Topeka Juvenile Correctional Facility (319). Juvenile Corrections Officers I who satisfy the criteria for both pay differentials can only receive one of the differentials; they are not eligible for both.
SAM:JJM:RDB
DATE: | June 9, 1999 | ||
---|---|---|---|
SUBJECT: | Addition of New Earnings Codes | ||
EFFECTIVE DATE: | Payroll Period beginning June 13, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Addition of New Earnings Codes for FY 2000 |
Legislators will be eligible to receive a State Per Diem rate of $74.58 in fiscal year 2000. Legislators serving in the Legislature have the option to receive the new daily rate. Legislators who serve as board members for a state agency may also receive the increased rate. The following two earnings codes have been added to SHaRP to reflect the increased rate:
Code | Description | Check Stub |
---|---|---|
LG6 | Legislative Daily Rate - $74.58 | Regular |
BD8 | Board Member Daily Rate - $74.58 | Regular |
Each of the above earnings codes is effective with the payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. Earning code 'LG6' should be used only by agency 428.
SAM:JJM:RDB
DATE: | June 7, 1999 | ||
---|---|---|---|
SUBJECT: | Optional Group Life Insurance Rate Changes | ||
EFFECTIVE DATE: | Pay Period Beginning June 27, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | Optional Group Life Insurance Rate Changes |
Please be advised that effective with the payroll period beginning June 27, 1999 and ending July 10, 1999, paid July 23, 1999, the Optional Group Life Insurance rates are changing as follows:
Attained Age | Monthly Premium per $1,000 |
---|---|
Under 30 | $0.05 |
30-34 | $0.06 |
35-39 | $0.08 |
40-44 | $0.12 |
45-49 | $0.16 |
50-54 | $0.28 |
55-59 | $0.41 |
60-64 | $0.60 |
65-69 | $0.99 |
70-74 | $1.60 |
75 and above | $2.71 |
An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available will remain at $200,000.00.
Age is based on the employee's attained age during the payroll period. Optional Group Life Insurance deductions will continue to be taken the second biweekly period of the month.
Board of Regents' Institutions operating under the Regents' Payroll system are responsible for implementing the new rates and for updating age groups and premium deduction amounts in their Payroll Systems effective with deductions made for the pay period beginning June 27, 1999 and ending July 10, 1999.
SAM:JJM:eh
DATE: | June 7, 1999 | ||
---|---|---|---|
SUBJECT: | Change in Uniform Premiums of Taxable Group Life Insurance | ||
EFFECTIVE DATE: | Effective Pay Period Beginning June 13, 1999 | ||
CONTACT: | Payroll Services | (785) 296-3146 | |
APPROVAL: | |||
SUMMARY: | New Uniform Premium Rates Used To Calculate the Cost of Group-Term Life Insurance Coverage In Excess of $50,000 |
As provided under Internal Revenue Code Section 79 the cost of group term life insurance coverage in excess of $50,000 provided to an employee by an employer is required to be included in employee federal and state taxable gross income. Employees covered by KPERS death and disability insurance being paid more than $1282.05 per biweekly pay cycle (based on 26 pay dates) are subject to the provisions of Code Section 79. Per recent changes in IRC 79 regulations the IRS Uniform Premium Table I will be modified to include a 25 to 29 age category and reduced uniform premiums for all other age groups. Effective with the pay period beginning June 13, 1999, paid July 9, 1999, the new table values will be as follows:
AgeGroup |
Monthly Cost per $1,000 in Excess of $50,000 for Group Term Life Insurance |
---|---|
Under 25 | $0.05 |
25-29 | $0.06 |
30-34 | $0.08 |
35-39 | $0.09 |
40-44 | $0.10 |
45-49 | $0.15 |
50-54 | $0.23 |
55-59 | $0.43 |
60-64 | $0.66 |
65-69 | $1.27 |
70 and above | $2.06 |
The calculation to determine an employee's age is based on the employee's attained age on the last day of the taxable year.
Board of Regents' Institutions operating under the Regents' Payroll system are responsible for implementing this change in their Payroll Systems effective with the pay period beginning June 13, 1999 paid July 9, 1999.
SAM:JJM:eh
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 | |
APPROVAL: | |||
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).
Tax Rates
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.
GHI Adjustments
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.
Reminders
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'.
SAM:JJM: rdb
Attachment: Schedule of Contribution Rates for FY2000 (pdf)
DATE: | June 23, 1999 | ||
---|---|---|---|
SUBJECT: | KPAY710 - Department Budget Earnings Report | ||
EFFECTIVE DATE: | June 28, 1999 | ||
CONTACT: | Steve Banning | (785) 296-7059 | |
APPROVAL: | |||
SUMMARY: | Department Budget Earnings Report will be available to agencies beginning June 28, 1999 |
Beginning June 28, 1999, each payroll period on-line agencies can expect to see a KPAY710 Department Budget Earnings Report in their agency mailboxes on the MVS and paper user agencies will be sent a hard copy of the report. The KPAY710 report lists, by department, the funding information contained in the current effective-dated row in the department budget earnings table for your agency. The data elements contained on the report include: department, budget level indicator (i.e., position, position pool), effective date, description, account code, effective status, account (funding agency), fund, org code (index), program (PCA), earnings code (if applicable), sequence #, percent or amount, and agency use.
The KPAY710 will be added to the job schedule and should be available in the agency mailboxes on the workday following the on-cycle confirm date (i.e., usually the Monday of pay date week).
SAM:JJM:eh
Informational Circular No. |
22-P-001 |
|
---|---|---|
Supersedes Informational Circular No: |
17-P-026 |
|
Effective Date: |
Payroll Period Beginning July 11, 2021; Ending July 24, 2021; Paid August 6, 2021 |
|
Contact Name: |
Ph: |
Email: |
Approval: | Sunni Zentner (Original Signature on File) |
|
Summary: New State Withholding Tax Tables Effective for Paychecks Issued On or After August 6, 2021 |
The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2021. The Kansas Department of Revenue has directed that employers should implement the 2021 withholding rates as soon as possible. Therefore, the attached tables will be used for computing state tax withholding for wages paid on or after August 6, 2021. In order to use the attached tables, income must be annualized. To annualize income, multiply state taxable income for the current bi-weekly pay period by twenty-six pay periods. All checks issued on or after August 6, 2021, including adjustments processed for checks that were originally issued prior to August 6, 2021, will use the new withholding rates. In addition, the standard deduction for one withholding allowance remains unchanged at $ 2,250.00 per year in calendar year 2021.
The Office of Accounts and Reports, Statewide Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system to implement the new withholding tax rates. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
JG:SGZ:abe
Attachment: Tables for Percentage Method of Withholding
Printable Version of 22-P-001
Informational Circular No. |
22-P-002 |
|
---|---|---|
Supersedes Informational Circular No: |
N/A |
|
Effective Date: |
Immediately |
|
Contact Name: |
Ph: |
Email: |
Approval: | Sunni Zentner (Original Signature on File) |
|
Summary: Addition of New Reports with W-2 Production Load for Reviewing Employees Working in States Other than Kansas |
Two new W-2 reports have been created for agencies who have employees working in states other than Kansas:
- KTAX200 – Multiple State Employees. This file lists employees that have tax locations in more than one state and contains Employee ID, Name, Department ID, States reported on the employee’s W-2, the applicable state gross amounts, and Federal taxable gross.
- KTAX201 – Other State/Locality Employees. This file lists employees that have tax states and localities other than Kansas and contains Employee ID, Name, Department ID, State, Locality code, applicable gross amounts, and Federal taxable gross.
Agencies are asked to review each report after each W-2 periodic load for:
- Any employees that should not be reporting gross to a state other than Kansas.
- The state being reported to is correct per the employee’s telework agreement and/or address the work is being performed.
- The total gross amount being reported to the state agrees to what the agency has for each state being reported.
These new reports will be added to the W-2 report schedule (see Payroll Informational Circular 2021 W-2 Production Report Schedule for the 2021 dates for W-2 loads). Each report will go directly to the agency MVS mailbox as a .OUT file. When the .OUT file is downloaded from the MVS directory, right click on the file, select Rename, and then change the ending 3 letters to CSV (the same process as the renaming of the KPAYGL5C file). This allows the file to easily be imported into Excel where it can be sorted and reviewed. Agencies are reminded that the file will only be available in your MVS mailbox for 30 days.
JG:SGZ:abe
Printable Version of 22-P-002
Informational Circular No. |
22-P-003 |
|
---|---|---|
Supersedes Informational Circular No: |
21-P-002 |
|
Effective Date: |
September 20, 2021 |
|
Contact Name: Heather DeBusk |
Ph: (785) 296-2434 |
Email: Heather.DeBusk@ks.gov |
Approval: Sunni Zentner (original signature on file) |
||
Summary: Organization Dues Changes for ORG030 |
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $32.76 to $33.06 per biweekly payroll period. The new rate will become effective with the payroll period beginning September 5, 2021 and ending September 18, 2021, paid October 1, 2021.
The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $32.70 to $33.00 and the fee (ORF030) will remain at $.06 (for a total deduction of $33.06 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
JG:SGZ:abe
Printable Version: 22-P-003
Informational Circular No. |
22-P-004 |
|
---|---|---|
Supersedes Informational Circular No: |
21-P-005 |
|
Effective Date: |
Calendar Year 2022 |
|
Contact Name: Earl Brynds |
Ph: (785) 296-5376 |
Email: Earl.Brynds@ks.gov |
Approval: Sunni Zentner (original signature on file) |
|
|
Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2022 |
Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2022. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all off-cycle transactions entered into SHARP since the last off-cycle payroll processed. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies generally have until 7:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 6:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 7:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
JG:SGZ:ewb
Printable Version: 22-P-004
Informational Circular No. |
22-P-005 |
|
---|---|---|
Supersedes Informational Circular No: |
21-P-006 |
|
Effective Date: |
January 1, 2022 |
|
Contact Name: Carmen Pearson |
Ph: (785) 296-7059 |
Email: carmen.pearson@ks.gov |
Approval: Sunni Zentner (original signature on file) |
|
|
Summary: Social Security Wage Base Increase to $147,000 effective January 1, 2022 |
The Social Security wage base for OASDI will be $147,000 for calendar year 2022. This is a $4,200 increase from the wage base of calendar year 2021 of $142,800. The OASDI tax rate for 2022 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for 2022 will be $9,114.00. There continues to be no limit on wages subject to the Medicare tax in 2022. Medicare tax rates for employers and employees remain at 1.45%. However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages. Employers will not pay the extra tax.
For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $9,114.00 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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Printable Version: 22-P-005
Informational Circular No. |
22-P-006 |
|
---|---|---|
Supersedes Informational Circular No: |
N/A |
|
Effective Date: |
December 12, 2021 |
|
Contact Name: Jude Overton |
Ph: (785) 296-2290 |
Email: Jude.Overton@ks.gov |
Approval: Sunni Zentner |
(Original Signature on File) |
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Summary: New Avesis Vision Insurance Benefit Plans/Deduction Codes for Plan Year 2022 |
The Health Care Commission has approved Avesis as the new vendor to administer the vision plan for plan year 2022. New benefit plans/deduction codes will be added to SHARP for Avesis vision. The new Avesis payroll deductions will be processed in SHARP effective for the payroll beginning December 12, 2021, ending December 25, 2021, paid January 7, 2022.
The new Avesis vision insurance benefit plans/deduction codes effective December 12, 2021 are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
---|---|---|---|---|
14 |
AVHIAT |
Avesis Vision Enhanced AT |
AVHIAT |
AVHIAT |
14 |
AVHIBT |
Avesis Vision Enhanced BT |
AVHIBT |
AVHIBT |
14 |
AVLOAT |
Avesis Vision Basic AT |
AVLOAT |
AVLOAT |
14 |
AVLOBT |
Avesis Vision Basic BT |
AVLOBT |
AVLOBT |
The Avesis payroll deductions will be included on the State Employee Health Plan BERF file provided to SHARP and to each Regent payroll system to implement the new deduction codes via the existing payroll process. The first and second BERF file of the month will include the vision deductions. In transition, it is possible that various refunds/adjustments for 2021 Surency vision deduction corrections could also be included on some of the 2022 BERF files.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regents institutions should be prepared to test their payroll files for the new benefit plans/deduction codes by November 15, 2021.
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Printable version: 22-P-006
Informational Circular No. |
22-P-007 |
|
---|---|---|
Supersedes Informational Circular No: |
21-P-008 |
|
Effective Date: |
November 2021 |
|
Contact Name: Joyce Dickerson |
Ph: (785)296-3979 |
Email: Joyce.Dickerson@ks.gov |
Approval: Sunni Zentner |
(Original Signature on File) |
|
Summary: Payroll processing schedule changes due to the November 2021 holidays. |
Thursday, November 11, 2021 (Veterans' Day), Thursday, November 25, 2021 and Friday, November 26, 2021 (Thanksgiving Holiday) are designated as officially observed holidays and therefore no batch jobs are scheduled for those nights.
Due to the holidays in November, changes are required to some of the days on the ‘normal’ payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. Please review carefully the information contained in this circular and in the attached partial calendar.
Sunday, November 7, 2021
Regents’ on-cycle payroll files for the period ending October 30, 2021 will be processed on this date. (The Regent on-cycle would normally process on Monday, November 8, 2021.)
Monday, November 8, 2021
The Run A off-cycle for the period ending October 30, 2021 will be processed November 8, 2021. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated November 12, 2021.
The Regents’ Run A off-cycle payroll files for the period ending October 30, 2021 will also be processed on this date.
Tuesday, November 9, 2021
Regents’ Run B off-cycle payroll files for the period ending October 30, 2021 must be received by the Department of Administration by 4:00 PM on November 9, 2021.
Wednesday, November 10, 2021
The Run B off-cycle for the period ending October 30, 2021 will be processed November 10, 2021. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run B off-cycle will be dated November 16, 2021. (The paychecks would normally be dated Monday, November 15, 2021.)
The Regents’ Run B off-cycle payroll files for the period ending October 30, 2021 will also be processed on this date.
Thursday, November 11, 2021
Veterans Day Holiday
Time Administration runs hourly from 7:30 AM – 6:30 PM.
Friday, November 12, 2021
Payday for the payroll period ending October 30, 2021.
Regents’ Run C off-cycle payroll files for the period ending October 30, 2021 must be received by the Department of Administration by 4:00 PM on November 12, 2021.
Monday, November 15, 2021
The Run C off-cycle for the period ending October 30, 2021 will be processed November 15, 2021. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run C off-cycle will be dated November 18, 2021.
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 13, 2021 to the Department of Administration by 6:00 PM.
The Regents’ Run C off-cycle payroll files for the period ending October 30, 2021 will also be processed on this date.
Tuesday, November 16, 2021
Paysheets for the on-cycle payroll for the period ending November 13, 2021 will be created on Tuesday, November 16, 2021. For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 7:00 PM on November 16, 2021 in order to be reflected on the paysheets for this period.
The first on-cycle preliminary pay calculation for the period ending November 13, 2021 will also occur November 16, 2021. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM. After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created.
NOTE: Terminations and Retirements must be entered by 7:00 PM on November 16, 2021 and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.
Wednesday, November 17, 2021
The second on-cycle preliminary pay calculation for the period ending November 13, 2021 will occur November 17, 2021.
Regents’ on-cycle files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 17, 2021. (These files would normally be due on Thursday, November 18, 2021.)
Thursday, November 18, 2021
The third on-cycle preliminary pay calculation for the period ending November 13, 2021 will occur November 18, 2021.
Friday, November 19, 2021
Final pay confirmation for the on-cycle payroll for the period ending November 13, 2021 will occur November 19, 2021. All employees’ payable time must be approved, by 7:00 PM on November 19, 2021 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 7:00 PM on November 19, 2021 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 24, 2021.
Regents’ Run A off-cycle payroll files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 19, 2021.
Sunday, November 21, 2021
Regents’ on-cycle payroll files for the period ending November 13, 2021 will be processed on this date. (The Regent on-cycle would normally process on Monday, November 22, 2021.)
Monday, November 22, 2021
The Run A off-cycle for the period ending November 13, 2021 will be processed November 22, 2021. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated November 24, 2021.
The Regents' Run A off-cycle payroll files for the period ending November 13, 2021 will also be processed on this date.
Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 13, 2021 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 24, 2021.)
Regents’ Run B off-cycle payroll files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 22, 2021.
Tuesday, November 23, 2021
The Run B off-cycle for the period ending November 13, 2021 will be processed November 23, 2021. SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run B off-cycle will be dated November 30, 2021. (It would normally be Monday, November 29, 2021.)
The Regents’ Run B off-cycle payroll files for the period ending November 13, 2021 will also be processed on this date.
Wednesday, November 24, 2021
Payday for the payroll period ending November 13, 2021. (It would normally be Friday, November 26, 2021)
Regents’ Run C off-cycle payroll files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 24, 2021. (These files would normally be due Friday, November 26, 2021.)
Thursday, November 25, 2021
Thanksgiving Holiday
Time Administration runs hourly 7:30 AM – 6:30 PM.
Friday, November 26, 2021
Thanksgiving Holiday
Time Administration runs hourly 7:30 AM – 6:30 PM.
Beginning Monday, November 29, 2021 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2021, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.
Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars.
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Printable version: 22-P-007
Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the
annual Deferred Compensation and Tax-Sheltered Annuity (TSA) limits will change effective
January 1, 2022 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to
$20,500 (up from $19,500 in 2021) or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $41,000
(up from $39,000 in 2021). The special catch-up limit is twice the general deferral limit and is
only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older
(Benefit Plan 457DEC) annual contribution limit remains at $6,500 for 2022 making the total
$27,000. The provision for 2021 was $6,500 making the total for 2021 $26,000.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2022 is the lesser of $61,000 or 100% of
compensation, increased from $58,000 for 2021.
The annual compensation limit used for calculating mandatory employee and employer
contributions is increased from $290,000 (for 2021) to $305,000 (for 2022). The $305,000
applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and
Kansas Board of Regents (for employees whose participation began after 1995). For School for
the Blind and School for the Deaf employees, the maximum contribution that can be made to the
plan is $30,500 ($305,000 maximum annual compensation multiplied by 10%, 5% employer
contribution and 5% employee contribution). For Board of Regents employees (participants
after 1995), the maximum contribution that can be made to the plan is $42,700 ($305,000
maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5%
employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996,
participants are grandfathered and use the annual compensation limit under Internal Revenue
Code Section 401(a) (17). The 401(a) (17) limit is increased from $430,000 (for 2021) to
$450,000 (for 2022). However, participants should note their maximum annual
compensation limit will be $435,714.29, since the $435,714.29 annual compensation multiplied
by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in
$61,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) increases to $20,500 (up
from $19,500 in 2021). The age 50 or older catch-up provision remains unchanged at $6,500 for
2022. Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and
limit on an annual contribution by $6,500. Additionally, there is a 15-year rule which may
allow employees with 15 or more years of service to increase the elective deferral limit by an
additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule
concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the
15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($20,500 for 2022)
is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective
deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum
VTSA formulas for their employees. Please note that this circular only provides a summary of
the law in this area. Due to the complexity of the legislation and the unique circumstances of
each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid
in determining limits in those cases which are outside the norm (the employee is near the limit on
annual contributions, the employee is near the elective deferral limit, the employee wants to use
the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
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INFORMATIONAL CIRCULAR NO: 22-P-009
DATE: December 1, 2021
SUBJECT: December 2021 Payroll Processing
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 joyce.dickerson@ks.gov
APPROVAL: Sunni Zentner (original signature on file)
SUMMARY: December 2021 Payroll Processing and Updated December Processing Calendar
As 2021 calendar year-end approaches, the Office of Accounts and Reports is making preparations for the issuance of calendar year 2021 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2021 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2022 balances; a corrected W-2 (Form W-2C) for 2021 will not be issued for the employee involved.
FINAL 2021 PAYCHECK
The final on-cycle paychecks for calendar year 2021 will be issued December 23, 2021. Payroll transactions for the December 23, 2021 on-cycle paychecks will be posted to SMART on Tuesday night, December 21, 2021.
Paychecks for the final off-cycle for calendar year 2021, which is the ‘C’ cycle for pay period ending December 11, 2021, will be issued on December 30, 2021 (generated from the off-cycle processed on December 27, 2021).
PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 7:00 p.m. on December 27, 2021 to enter paycheck adjustment requests for any 2021 paychecks. Adjustments processed in the December 27, 2021 off-cycle payroll will be reflected on the employee’s 2021 Form W-2. Please remember for SHARP employees that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2021 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 15, 2021. Please note that agencies can send DA-180 forms after December 15, 2021 for adjustments that are determined to be needed.
Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2021 on or before the December 27, 2021 off-cycle. However, if a large volume of DA-180 forms are received on or after December 15, 2021 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2021 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.
For adjustment requests entered after December 27, 2021, only those adjustments impacting OASDI and/or Medicare for tax years prior to 2022 will result in a W-2C for 2021; all other adjustment requests entered after December 27, 2021 which are adjusting paychecks issued prior to January 1, 2022 will update the employee’s 2022 payroll balances regardless of the reason the paycheck is being adjusted, and will not result in a W-2C for 2021. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2021 will update the employee’s 2022 payroll balances.
REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 11, 2021, paid December 23, 2021 are due to the Department of Administration by 4:00 p.m. on December 15, 2021.
The Regent on-cycle for the pay period ending December 11, 2021, paid December 23, 2021 will be run on the night of December 19, 2021 (normally runs on Monday, December 20, 2021).
REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2021 Paycheck Reversals
Regent Institutions must submit all transmittals for 2021 paycheck reversals by 4:00 p.m. on Thursday, December 23, 2021 in order to update the employee’s 2021 W-2. These files should contain a ‘C’ indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee’s calendar year 2022 payroll balances regardless of the paycheck issue date of the paycheck being reversed.
2021 Adjustments and Supplementals
In order to update employee balances for 2021, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Thursday, December 23, 2021. The Run C off-cycle for the pay period ending December 11, 2021 generated on the night of Monday, December 27, 2021 will have a check issue date of December 30, 2021; all activity for this off-cycle will be reflected in the employees’ 2021 W-2. These files should contain a ‘C’ indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2021 date.
2022 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2022, any adjustments or supplementals submitted after 4:00 p.m. on Monday, December 27, 2021, will be considered to be 2022 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2022 business, the employee’s 2022 balances will be updated. These files should contain a ‘C’ indicating current year business.
With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2022, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2022 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2022 payroll balances.
Arrearages or refunds for OASDI and/or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed.
Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2021 deadline for the December 27, 2021 Run C’s off-cycle payroll will not be processed until the April 11, 2022 off-cycle payroll. The deadline for submitting payroll interface files for the April 11, 2022 off-cycle is 4:00 p.m. on Friday, April 8, 2022.
GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2021 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 12, 2021 and December 25, 2021 in order for the last 2021 deduction to be taken on the paycheck issued December 23, 2021 if the deduction was taken over 26 pay periods. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.
For calendar year 2022, agencies can enter a new row effective-dated between December 12, 2021 and December 25, 2021 in order for the first deduction for United Way or Community Health Charities for 2022 to be taken on the January 7, 2022 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 11, 2022 should be entered. Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2022 if entered before December 23, 2021. If entered after December 23, 2021, agencies will need to split the total pay period amount into the UTDXXX deduction code amount and the UTFXXX deduction code.
A batch process will run the night of December 23, 2021 to establish the fee portion (deduction code UTFXXX) of the 2022 United Way/Community Health Charities deduction. The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2022. This process will reduce the 2022 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2022 will match the employee’s authorized deduction amount. Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 27, 2021 to ensure both the UTDXXX and UTFXXX deductions are taken correctly. Please note that if agencies need to enter any 2022 United Way/Community Health Charities deductions after December 23, 2021, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.
Tax Information
Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2021 to all SHARP employees who are exempt from federal withholding. Notifications will be sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center (ESS). Agencies are encouraged to review the primary email address stored in ESS for employees by executing the Payroll Workcenter query titled ‘ESS Primary Email by Agency’ and contact employees to make updates when necessary due to an invalid/missing email address. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees. Agency payroll/human resource staff will need to access the U.S. Payroll WorkCenter tile in SHARP and run the payroll query EE Fed W/H = Exempt to get a listing of employees claiming exempt from federal withholding status. For each employee on the query listing, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2022. If your agency has no employees claiming an exemption from federal withholding the query listing will be empty.
SHARP employees are encouraged to use the Employee Self Service functionality to file their 2022 W-4s. Employees should submit new paper 2022 W-4s by December 29, 2021 to allow adequate time for processing. Employees must use the 2022 IRS W-4 Form to submit a request for exemption from withholding for calendar year 2022.
Agency personnel have until 7:00 p.m. on December 30, 2021 to enter all paper W-4s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2022.
The KPAY320 will be processed the evening of December 26, 2021. This process searches for all employees for whom a W-4 email notification has been sent. If a new W-4 has not been received, a January 1, 2022 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2022 effective-dated row will update the employee’s marital status to ‘single’ with no adjustments.
For any 2022 paper W-4s (for employees claiming exemption from withholding) received between December 26, 2021 and January 2, 2022, agency personnel will need to enter the data with a January 2, 2022 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2022 for any electronic W-4s received in this time period.
The KPAY320 will only insert new effective-dated rows for federal withholding tax. Employees should be advised to also review their state tax withholding to determine if changes are needed. Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change. SHARP employees are encouraged to use the Employee Self Service functionality to file their 2022 K-4’s.
Deduction Information
All deductions for calendar year 2022 are biweekly except:
- Group Health Insurance (Medical, Dental and Vision): semi-monthly, deducted on the first and second pay dates of the month.
- Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.
- Optional Group Life Insurance: monthly, deducted on the second pay date of the month.
- Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.
- Supplemental Voluntary Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.
- Long Term Care Insurance: semi-monthly, deducted on the first and second pay dates of the month.
Working After Retirement KPERS
Effective 12/12/2021 all employees that currently have the KPERS Working After Retirement code AXD should be returned to code AC for the new calendar year. After the employee has earned $25,000 in the new calendar year you can change them to the AXD code effective with the next pay period after earnings reach $25,000.
Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle ‘C’ cut-off date of December 27, 2021. Please refer to the most recent PAY007, ‘Deductions in Arrears Report’ and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner.
Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2021 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 11, 2021 by personal reimbursement as soon as possible.
Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2021 will be sent to the State of Kansas Set-Off Program for collection. Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 27, 2021. Please remember that these forms are only for those arrearages that are actively being collected.
On December 29, 2021, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection. KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP. Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.
W-2s
Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2. If the employee has no active mailing address, then the home address will be used for mailing the W-2. Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home. Please make any name, address, or social security number changes to the employee’s Contact Information page by 7:00 p.m. on January 4, 2022 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 4, 2022 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known. Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2021. Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees’ address lengths. Abbreviations should be used as needed to stay within the limit.
The W-2 programs are anticipated to be executed anytime between January 4, 2022 and January 11, 2022. Electronic W-2 forms through Employee Self Service are anticipated to be available on or before January 11, 2022. For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2022. Email notification of electronic W-2 availability will be provided for employees who have consented. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.
December Calendar
Attached is a revised calendar for the month of December 2021 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at https://admin.ks.gov/resources/listserv-signup.
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INFORMATIONAL CIRCULAR NO. 22-P-010 Supersedes: 19-P-018
DATE: December 22, 2021
SUBJECT: Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2
EFFECTIVE DATE: Payroll Period Ending December 25, 2021
CONTACT: Heather DeBusk (785) 296-2434 (heather.debusk@ks.gov)
APPROVAL: Sunni Zentner (Original signature on file)
SUMMARY: Organization Dues Change for ORG060
The organization dues for members of Fraternal Order of Police, Lawrence Lodge #2, will change from $15.20 to $17.56 per biweekly payroll period. The new rate will become effective with the payroll period beginning December 12, 2021 and ending December 25, 2021, paid January 7, 2022.
The amounts listed above include the deduction amount (ORG060 deduction code) and the $0.06 service fee (ORF060 deduction code) added together. The new rate for deduction code ORG060 will increase from $15.14 to $17.50 and the fee (ORF060) will remain at $.06 (for a total deduction of $17.56 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.
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INFORMATIONAL CIRCULAR NO.: 22-P-011 Supersedes 21-P-011
DATE: December 22, 2021
SUBJECT: 2022 Percentage Method Tables for Federal Tax Withholding
EFFECTIVE DATE: January 1, 2022
CONTACT: Carmen Pearson (785) 296-7059 carmen.pearson@ks.gov
APPROVAL: Sunni Zentner (Original signature on file)
SUMMARY: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2022
The Internal Revenue Service (IRS) has issued new tables for the percentage method of
withholding for 2022 per Publication 15-T including an Employer’s Worksheet to be used for
computing federal tax withholding for wages paid on or after January 1, 2022. To use the
attached IRS worksheet and tables, income must be annualized. To annualize income, multiply
federal taxable income for the current bi-weekly pay period by twenty-six pay periods. In
addition, the value of one withholding allowance has remained at $4,300 for employees whose
Form W-4 is from 2019 or earlier.
For employees whose Form W-4 is from 2020 or later, Step 2 on the Form W-4 determines
which set of attached tables are used to compute federal tax withholding. The first set of tax
tables is used for employees with a 2019 or earlier Form W-4 or whose 2020 or later Form W-4 does not have the box in Step 2(c) checked. The second set of tax tables is used for employees whose 2020 or later Form W-4 does have the box in Step 2(c) checked.
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages
for calculating income tax withholding for 2022 has increased to $8,650 if the NRA employee
has not submitted a Form W-4 for 2020 or later or $12,950 if the NRA employee has submitted
a Form W-4 for 2020 or later or was first paid wages in 2020 or later. In addition, Regents
should check IRS Publication 1494 for any changes to the amounts used when computing tax
levies for garnishments. Publication 1494 for 2022 is not currently available on the IRS website. Regents should be aware that the withholding on supplemental wages rate remains at 22% for 2022.
IRS regulations continue to require employees claiming exempt status from federal tax
withholding (for income earned in the United States) to file a new W-4 form annually.
Employees are eligible for the exempt status if the following criteria are met: 1) the employee
had no income tax liability in the previous year, and 2) the employee anticipates no income tax
liability in the upcoming year.
SHARP employees are encouraged to use the Employee Self Service functionality beginning
January 1, 2022 to file their 2022 W-4. The 2022 Form W-4 has not yet been published by the IRS. When it is published, it can be found on the IRS website at https://www.irs.gov and also
can be found on the Office of Accounts and Reports website at
https://admin.ks.gov/resources/document-center.
IRS regulations require non-resident alien employees who claim an exempt status from federal
withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year
2021 must file a new 8233 form for calendar year 2022 if they wish to continue their non-resident alien status. As a reminder, Regent institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
The Office of Accounts and Reports, Payroll Systems Team, will make the necessary changes in the computation of withholding taxes for SHARP agencies. Regent institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
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Attachment: 2022 IRS Publication 15-T
Worksheet 1A. Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems and 2022 Annual Percentage Method Tables
INFORMATIONAL CIRCULAR NO. 22-P-012 Supersedes: 21-P-014
DATE: January 10, 2022
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2021
EFFECTIVE DATE: Immediately
CONTACT: Carmen Pearson (785) 296-7059 (carmen.pearson@ks.gov)
APPROVAL: Sunni Zentner (Original signature on file)
SUMMARY: Information Pertaining to Employee 2021 W-2 Statements
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2021 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency MVS mailbox with a date of January 7, 2022. This report should be downloaded and retained by your agency. The report will be removed from the MVS mailbox and will no longer be available after February 4, 2022.
The KTXPR55 W-2 listing is sorted by 1) 3-digit agency, 2) alphabetically by last name/first name, and 3) social security number (SSN). The report is totaled by 3-digit agency. The ’Total Number of Employees’ count from the Grand Totals page represents the total number of 2021 W-2s that were generated for your agency. The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2021 W-2s.
In the instance where an employee worked for more than one agency, one W-2 form has been prepared that includes earnings and deductions for all agencies. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the agency appearing on the employee's most current job record.
The standard W-2 was used for 2021. The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s state and local returns, and a copy for the employee records).
For employees consenting to receive their W-2 electronically, the form is now available on Employee Self Service (ESS). For employees receiving a printed W-2, the form will be printed and mailed by the end of January 2022.
Any employees who have retired or separated from state service continue to have access to consent to receive their W-2 forms electronically, via Employee Self- Service, for 18 months following separation. However, each retired or separated employee must sign back into Employee Self -Service and consent to receive their W-2 electronically. If this consent is not resubmitted, a paper W-2 will be generated and mailed to the former employee.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees who have not consented to receive an electronic W-2. If the employee has no mailing address, the employee's home address will be used for mailing the W-2. The return address for all mailed W-2 forms will be the Department of Administration, Office of Printing & Mailing.
All paper 2021 W-2s that are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be destroyed after April 15, 2022.
In cases where the 2021 W-2 Wage and Tax Statement information does not agree with your agency records, please notify the Payroll Processing Team, DOA_Payroll@ks.gov, with an explanation of the issue.
For all cases where the social security number is incorrect, please send a copy of the employee's social security card to DOA_Payroll@ks.gov with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees in need of W-2 reprints for years 2017 through 2021, agencies are expected to recommend that employees consent to view these W-2s electronically using the ‘W-2: Consent, Reissue, Forms’ tile found in Employee Self-Service. The employee may view and print the duplicate by selecting ‘View W-2/W-2c Forms’. For those employees who do not consent to receive their W-2 form electronically, a paper W-2 duplicate can be requested by selecting the ‘W-2 Reissue Request’ option also found in Employee Self -Service.
Agencies are reminded that employees who have separated or retired from State service have access to consent, view or print, and request duplicate paper W-2s for 18 months following their date of separation. These employees should be directed to utilize Employee Self-Service to consent, view or print, or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year the reissued W-2 is needed. Duplicate W-2’s for 2021 will be available starting on Wednesday, February 2, 2022.
Employees who cannot access Employee Self-Service should contact their Agency HR Office for duplicate paper W-2s. Agency shall refer to the job aid Agency Requested W2 Reprints posted on 12/28/2021 for providing these duplicate reissued W-2 statements for employees of your agency.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report.
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INFORMATIONAL CIRCULAR NO.: 22-P-013 |
(Supersedes 21-P-012) |
DATE: |
January 10, 2022 |
||
SUBJECT: |
Employee Taxability of State-Owned or Leased Vehicles |
||
EFFECTIVE DATE: |
January 1, 2022 |
||
CONTACT: |
Heather DeBusk |
(785) 296-2434 |
|
APPROVAL: |
Sunni Zentner (Original signature on file) |
||
SUMMARY: |
IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2022 |
||
|
The Internal Revenue Service (IRS) announced the standard mileage rate has increased to 58.5 cents per mile, beginning January 1, 2022. Using the Cents Per-Mile methodology, fringe benefit income is calculated by multiplying the 58.5 cents per mile rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle.
To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total annual mileage must be used for the employer’s trade or business, or the vehicle is primarily used by the employee and the total mileage driven exceeds 10,000 miles per year. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2022, and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $56,100 for automobiles (including trucks and vans). (See IRS Notice 2022-03)
Agencies and employees are reminded the only state approved personal use of a state-owned or leased vehicle is to commute between the employee’s workstation and home. Even those situations should be limited.
Please note this Informational Circular does not impact the State’s privately-owned vehicle mileage reimbursement rate.
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INFORMATIONAL CIRCULAR NO.: 22-P-014 |
(Supersedes 21-P-018) |
DATE: |
May 11, 2022 |
||
SUBJECT: |
Fiscal Year End Payroll Processing for FY 2022 |
||
EFFECTIVE DATE: |
Immediately |
||
CONTACT: |
Heather DeBusk |
|
|
APPROVAL: |
Sunni Zenter (Original Signature on File) |
||
SUMMARY: |
Summary of Fiscal Year End Payroll Processing |
||
|
This informational circular discusses key payroll processing concepts to aid in fiscal year end closing.
Note: A separate informational circular regarding the fiscal year 2023 payroll contribution rates will be issued as soon as the information becomes available.
Off-Cycle C Payroll for Pay Period End 6/11/2022 has been cancelled. The final opportunity to run payroll adjustments for fiscal year 2022 will be Off-Cycle B, which will run on 6/22/2022, with a paycheck date of 6/27/2022.
Regent Off-Cycle B Cutoff
Cutoff for Off-Cycle B for pay period end 6/11/2022 will be 9:00 A.M., 6/22/2022. We will be unable to accept any files received after this date and time, for Off-Cycle B processing for pay period end 6/11/2022.
Budget End Date and Fiscal Year Changes
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 (BUD006) is scheduled to run during the nightly batch cycle on June 19, 2022. In that process, a new row will be added to the Department Budget tables with an effective date of June 12, 2022 (beginning date of the first on-cycle payroll charged to FY2023). The Budget End Date will be June 10, 2023.
Agencies should not enter any rows in the Department Budget table with an effective date greater than or equal to June 12, 2022, until agency notification has been received that the BUD006 process ran successfully.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Thursday June 23, 2022, after the ‘B’ off-cycle process has been completed for the June 11, 2022 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 23.
Payroll Adjustments
Agencies need to complete all FY2022 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 22, 2022. The ‘B’ off-cycle is the last payroll cycle for FY2022. This includes clean-up of all Rejected by Payroll (RP) rows listed on the Reject by Payroll (Payable Time) Time and Labor Workcenter Query. Any adjustments processed after Wednesday June 22, 2022 will be included with FY2023 transactions and processed with the ‘A’ off-cycle on Tuesday July 5, 2022 for the June 25, 2022 pay period end date.
Benefits Contribution Rates
Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments for pay period ending dates greater than June 11, 2022, will use fiscal year 2023 rates. These benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, group health insurance (GHI), and parking administrative fee.
Tax Rates
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. This includes OASDI (Social Security), Medicare, federal withholding tax, state withholding tax, local withholding tax, and unemployment compensation insurance.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year of the off-cycle paycheck date regardless of the pay period being adjusted. The ‘B’ off-cycle (scheduled for June 22, 2022, paycheck date June 27, 2022) for the pay period ending June 11, 2022, will be the last opportunity to have a paycheck adjustment charged to FY2022.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Regents Institutions Responsibilities
Regents institutions are responsible for ensuring the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring the SMART INF06 interface files impact the correct fiscal year.
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Informational Circular No. |
22-P-015 |
|
---|---|---|
Supersedes Informational Circular No: |
21-P-020 |
|
Effective Date: |
June 22, 2022 |
|
Contact Name: Heather DeBusk |
Email: heather.debusk@ks.gov |
|
Approval: Sunni Zentner |
(Original Signature on File) |
|
Summary: Fiscal Year 2023-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 2023. The fiscal year 2023 rates will become effective with the on-cycle payroll period beginning June 12, 2022, paid July 8, 2022. The withholding rates for OASDI, Medicare, Federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2022.
For fiscal year 2023, the employer’s contribution to KPERS Death and Disability Insurance will be 1.00% (except for retirement codes J1, J2, J3 which are 0.4%).
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:
April 1, 2010-June 30, 2010
April 1, 2011-June 30, 2011
April 1, 2012-June 30, 2012
April 1, 2013-June 30, 2013
March 25, 2016-September 30, 2017
July 10, 2020-June 25, 2021.
For Regent institutions, previous 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.
The Office of Accounts and Reports, 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.
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INFORMATIONAL CIRCULAR NO. 23-P-001 |
Supersedes 11-P-005 |
DATE: |
August 9, 2022 |
||
SUBJECT: |
Direct Deposit and Paycards |
||
EFFECTIVE DATE: |
Immediately |
||
OAR CONTACTS: |
doa_payroll@ks.gov |
||
Heather Debusk |
|||
APPROVAL: |
|||
SUMMARY: |
Direct Deposit and Paycard Method of Payment |
K.S.A. 44-314 provides the authority for employers in the State of Kansas to designate the method by which employees receive wages, including to elect to pay wages only by electronic funds transfer or deposit to an automated clearinghouse member financial institution account designated by the employee. An employer may elect to pay wages in this manner provided that the employer offers an alternative payment method as a default option, such as a payroll card, for those employees who fail to designate a financial institution account for electronic funds transfer or deposit.
The Department of Administration currently has a partnership with U.S. Bank, (associated with U.S. Bank) to provide the Focus Payroll Card (aka paycard) to employees who do not choose to have their payroll directly deposited to a checking or savings account. This paycard is an FDIC insured ATM/debit-based bank account where deposits can be made.
No exceptions will be granted for payroll payments to active employees. Special awards or payments requiring payroll processing should be paid to the employee via direct deposit or paycard. Payroll payments required to be processed through the payroll system for terminated employees for whom direct deposit or paycard information cannot be confirmed may be made via paper paycheck, but only upon approval from the Director of the Office of Accounts and Reports.
The employee direct deposit form is located in Employee Self-Service under the W4, K4 & Direct Deposit Forms tile.
Additional information on the State of Kansas Paycard Program can be found on the Department of Administration, Accounts & Reports website.
The Focus Card is issued by U.S. Bank National Association pursuant to a license from Visa U.S.A. Inc. ©2022 U.S. Bank. Member FDIC.
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Printable Version of 23-P-001
The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $33.06 to $35.06 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 21, 2022 ending September 3, 2022, paid September 16, 2022.
The amount listed above includes the $35.00 deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code), for a total deduction of $35.06 per biweekly payroll period.
The Office of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.
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Printable Version of 23-P-002 & Org Dues Change Documentation
INFORMATIONAL CIRCULAR NO.: 23-P-003
DATE: September 16, 2022
SUBJECT: SHARP Employee Official Work Station (Location)
EFFECTIVE DATE: Immediately
OAR CONTACTS: doa_payroll@ks.gov
Heather DeBusk heather.debusk@ks.gov
APPROVAL: Nancy Ruoff (Original Signature on File)
SUMMARY: SHARP Employee Official Station: Payroll tax and SMART travel reimbursement implications for employees working in locations other than agency office locations under a telework agreement
The State of Kansas Department of Administration Telework Policy allows employees who meet specific criteria to enter into a telework agreement with their agency to achieve administrative efficiencies and increase work/life balance for qualifying employees. The Telework Policy specifies that telework is not an employee right or benefit but is a management option utilized at the discretion of the agency.
Official Station in SHARP Position Data:
To ensure accuracy and consistency in the recording of the official work station in SHARP, the following guidelines shall be used to determine an employee’s official station – such official station shall be entered as the Location for the Position.
- Employees working one or more days per week at their agency office location should have a work location that reflects the building for that agency office.
- Employees working 100% remote, in Kansas and not working at their agency office location at least one day per week should have a work location of KSHOME.
- Employees working 100% remote in a state other than Kansas and not working at their agency office location at least one day per week should have a work location of the state where they work.
As defined in the State of Kansas Employee Travel Expense Reimbursement Handbook located at Travel Handbook: Official Station – Field Employee: The official station of a field employee is the city or town designated as the employee’s official station by the administrative head of the agency (Reference: K.A.R. 1-16-2) and remains unchanged for individuals who are currently designated as field employees. For employee travel, the SMART Employee Profile in the Expenses module used for travel reimbursement has an Official Station location which comes directly from the Location entered for the Position in SHARP. The guidelines for official station noted above shall also be used by Audit Services to determine consistent and appropriate travel reimbursement.
Work Location for Tax Withholding Compliance:
In addition to the Official Station (Location) in Position Data, accurate reporting of the physical location of the employee when work is performed is required to determine the tax withholding obligations for the employee under Federal and State tax laws. The general rule for state and local income tax withholding is that taxes should be withheld for the jurisdiction where the employee performs their work. This could be at the agency office location or at a remote location. Tax withholding rules vary greatly from state to state. Non-compliance with state and local taxation laws can result in financial penalties to both the employer and the employee. The State of Kansas as an employer has a responsibility to abide by the tax withholding laws of all states in which work is performed by an employee.
The rules surrounding the initiation of a withholding tax obligation vary by state. In some states, the withholding tax obligation may apply as soon as the first day of work in that location. To ensure compliance with state and local tax withholding laws, agencies are required to document their employee’s remote work arrangement, including location. It is crucial that employees are set up correctly in SHARP.
Payroll instructions and forms for remote workers can be found on the Department of Administration, Office of Accounts & Reports website, Payroll Procedures/Job Aids, Telework folder.
Link: https://admin.ks.gov/offices/accounts-reports/state-agencies/payroll/payroll-procedures-job-aids
Regent institutions are responsible for completing any necessary updates to properly calculate and report state and local tax withholding for employees working both in Kansas, and in a location other than Kansas.
Questions:
For questions or assistance with SHARP Position Management and Job Data, contact Michelle Huntsman michelle.huntsman@ks.gov
For questions or assistance with SHARP Tax Distribution and Tax Data, contact Carmen Pearson Carmen.Pearson@ks.gov
For questions or assistance with SMART travel reimbursements, contact ARPreaudit@ks.gov
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Printable of Version of 23-P-003
INFORMATIONAL CIRCULAR NO. 23-P-004
DATE: October 27, 2022
SUBJECT: New Benefit Plan and Deduction Codes for Commuter Benefit
EFFECTIVE DATE: Payroll Period Begin date December 11, 2022
OAR CONTACT: doa_payroll@ks.gov
APPROVAL: Sunni Zentner (original signature on file)
SUMMARY: New Benefit Plan and Deduction Codes for Commuter Benefit
New benefit plans/deduction codes will be added to SHARP for Commuter Benefits. The new Commuter Benefit payroll deductions will be processed in SHARP effective for the payroll beginning December 11, 2022, ending December 24, 2022, paid January 6, 2023. The new Commuter Benefit plans/deduction codes effective December 11, 2022 are:
PLAN TYPE |
DEDUCTION CODE |
DESCRIPTION |
SHORT DESCRIPTION |
BENEFIT PLAN |
BENEFIT PLAN DESCRIPTION |
---|---|---|---|---|---|
6W |
CMMASS |
Commuter Benefit-Mass |
ComBenMass |
Commuter Benefits - Mass |
|
6W |
CMPARK |
Commuter Benefit-Parking |
ComBenPark |
CMPARK |
Commuter Benefits - Park |
CMMASS and CMPARK will be included on the State Employee Health Plan BERF file provided to SHARP and to each Regent payroll system. The first and second BERF files of the month will include the CMMASS and CMPARK deductions. Please note that CMMASS and CMPARK payroll deductions will be offered on a before-tax basis. In addition, the maximum payroll deduction is $300.00 per month.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regent institutions should submit test payroll files for the new benefit plans/deduction codes to the SHARP Payroll Systems Team by November 05, 2022.
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Printable Version of 23-P-004
The Social Security wage base for OASDI will be $160,200 for calendar year 2023. This is a $13,200 increase from the wage base for calendar year 2022 of $147,000. The OASDI tax rate for calendar year 2023 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for calendar year 2023 will be $9,932.40. There continues to be no limit on wages subject to the Medicare tax in calendar year 2023. Medicare tax rates for both employees and employers remain at 1.45%.
An additional Medicare tax of 0.9% applies to employees with wages of more than $200,000 and $250,000 for married couples filing jointly. This additional tax will only be withheld from employees’ wages. Employers will not pay the extra tax.
For federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $9,932.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 and $250,000 for married couples filing jointly, subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000 and $250,000 for married couples filing jointly.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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Printable Version of 23-P-005
Due to the Veterans Day holiday, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.
SHARP
Monday, November 7, 2022
Pay Period 10/16-10/29/2022
- Run A off-cycle will be processed.
- SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run A off-cycle.
- All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run A off-cycle will be dated November 10, 2022.
Tuesday, November 8, 2022
Pay Period 10/16-10/29/2022
- Run B off-cycle will be processed.
- SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run B off-cycle.
- All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run B off-cycle will be dated November 14, 2022.
Thursday, November 10, 2022
Pay Period 10/16-10/29/2022
PAYDAY
Friday, November 11, 2022
Veterans Day Holiday
Monday, November 14, 2022
Pay Period 10/16-10/29/2022
- Run C off-cycle will be processed.
- SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run C off-cycle.
- All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run C off-cycle will be dated November 17, 2022.
- Time and Labor interface agencies can submit time and labor files for the period ending November 12, 2022 by 6:00 PM.
REGENTS
Friday, November 4, 2022
Pay Period 10/16-10/29/2022
- Run A off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Sunday, November 6, 2022
Pay Period 10/16-10/29/2022
- On-cycle payroll files will be processed.
Monday, November 7, 2022
Pay Period 10/16-10/29/2022
- Run A off-cycle payroll files will be processed.
- Paychecks for the Run A off-cycle will be dated November 10, 2022.
Tuesday, November 8, 2022
Pay Period 10/16-10/29/2022
- Run B off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
- Run B off-cycle payroll files will also be processed on this date.
- Paychecks for the Run B off-cycle will be dated November 14, 2022.
Thursday, November 10, 2022
Pay Period 10/16-10/29/2022
- Run C off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Friday, November 11, 2022
Veterans Day Holiday
Monday, November 14, 2022
- Run C off-cycle payroll files will be processed.
- Paychecks for the Run C off-cycle will be dated November 17, 2022.
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Printable Version of 23-P-006
Due to the Thanksgiving holiday, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.
SHARP
Tuesday, November 15, 2022
Pay Period 10/30-11/12/2022
- Paysheets for the on-cycle payroll will be created
- All job actions (i.e., FLSA Status change) must be entered by 7:00 PM in order to be reflected on the paysheets for this period.
- All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM, in order for a paycheck record to be created.
- Terminations and Retirements must be entered by 7:00 PM and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.
- The first on-cycle preliminary pay calculation will run.
Wednesday, November 16, 2022
Pay Period 10/30-11/12/2022
- Second on-cycle preliminary pay calculation
Thursday, November 17, 2022
Pay Period 10/30-11/12/2022
- Third on-cycle preliminary pay calculation
Friday, November 18, 2022
Pay Period 10/30-11/12/2022
- All employees’ payable time must be approved, by 7:00 PM in order for a paycheck record to be created.
- All deduction and tax data changes must be entered by 7:00 PM in order to be reflected in the final paycheck created for the employee
- Final pay confirmation for the on-cycle payroll
- Paychecks for the on-cycle will be dated November 23, 2022.
Monday, November 21, 2022
Pay Period 10/30-11/12/2022
- Run A off-cycle
- SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle.
- All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run A off-cycle will be dated November 23, 2022.
- Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 12, 2022 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 23, 2022.)
Tuesday, November 22, 2022
Pay Period 10/30-11/12/2022
- Run B off-cycle
- SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle.
- All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run B off-cycle will be dated November 29, 2022.
Wednesday, November 23, 2022
Pay Period 10/30-11/12/2022
PAYDAY
Thursday, November 24, 2022
Thanksgiving Holiday
Friday, November 25, 2022
Thanksgiving Holiday
REGENTS
Wednesday, November 16, 2022
Pay Period 10/30-11/12/2022
- On-cycle files must be received by the Department of Administration by 4:00 PM
Friday, November 18, 2022
Pay Period 10/30-11/12/2022
- Run A off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Sunday, November 20, 2022
Pay Period 10/30-11/12/2022
- On-cycle payroll files will be processed
Monday, November 21, 2022
Pay Period 10/30-11/12/2022
- Run A off-cycle payroll files will be processed.
- Run B off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Tuesday, November 22, 2022
Pay Period 10/30-11/12/2022
- Run B off-cycle payroll files will be processed.
- Paychecks for the Run B off-cycle will be dated November 29, 2022.
Wednesday, November 23, 2022
Pay Period 10/30-11/12/2022
- Run C off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
- PAYDAY
Thursday, November 24, 2022
Thanksgiving Holiday
Friday, November 25, 2022
Thanksgiving Holiday
Beginning Monday, November 28, 2022 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2022, which highlights key payroll processing activity for the month.
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Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2023. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies have until 7:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 6:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 7:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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Attached is a revised calendar for the month of December 2022 that highlights key payroll processing activity.
This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended
for use as a supplementary reference tool to this informational circular.
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Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the
annual Deferred Compensation and Tax-Sheltered Annuity (TSA) limits will change effective
January 1, 2023 as follows:
457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to
$22,500 (up from $20,500 in 2022) or 100% of includible compensation.
The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $45,000
(up from $41,000 in 2022). The special catch-up limit is twice the general deferral limit and is
only available to employees who are within three years of normal retirement age.
The Deferred Compensation catch-up provision for participants who are 50 years of age or older
(Benefit Plan 457DEC) annual contribution limit increases to $7,500 for 2023 making the total
$30,000. The provision for 2022 was $6,500 making the total for 2022 $27,000.
Please note that the two different catch-up provisions cannot be used concurrently.
Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2023 is the lesser of $66,000 or 100% of
compensation, increased from $61,000 for 2022.
The annual compensation limit used for calculating mandatory employee and employer
contributions increased from $305,000 (for 2022) to $330,000 (for 2023). The $330,000
applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and
Kansas Board of Regents (for employees whose participation began after 1995). For School for
the Blind and School for the Deaf employees, the maximum contribution that can be made to the
plan is $33,000 ($330,000 maximum annual compensation multiplied by 10%, 5% employer
contribution and 5% employee contribution). For Board of Regents employees (participants
after 1995), the maximum contribution that can be made to the plan is $46,200 ($330,000
maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5%
employee contribution).
For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996,
participants are grandfathered and use the annual compensation limit under Internal Revenue
Code Section 401(a) (17). The 401(a) (17) limit is increased from $450,000 (for 2022) to
$490,000 (for 2023). However, participants should note their maximum annual
compensation limit will be $471,428.57, since the $471,428.57 annual compensation multiplied
by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in
$66,000, which is the limit on annual contributions.
The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) increases to $22,500 (up
from $20,500 in 2022). The age 50 or older catch-up provision increases to $7,500 in 2023 (up from $6,500 in 2022). Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $7,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($22,500 for 2023) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective
deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).
Regents’ institutions are reminded that they are responsible for applying the maximum
VTSA formulas for their employees. Please note that this circular only provides a summary of
the law in this area. Due to the complexity of the legislation and the unique circumstances of
each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid
in determining limits in those cases which are outside the norm (the employee is near the limit on
annual contributions, the employee is near the elective deferral limit, the employee wants to use
the age 50 catch-up provision, or the employee wants to use the 15-year rule).
Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.
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The attached schedule contains updated employer contribution rates (in red text) for group health insurance for the period of January 1, 2023 through June 30, 2023.
The amounts are updated from circular 22-P-015 that was released on June 22, 2022.
These amounts will be updated again, on June 30, 2023, to reflect the amounts released on the original informational circular.
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The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2023, per Publication 15-T, including an Employer’s Worksheet to be used for computing federal tax withholding for wages paid on or after January 1, 2023.
To use the attached IRS worksheet and tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods.
For 2019 or earlier W-4:
One withholding allowance has remained at $4,300.
For employees whose Form W-4 is from 2020 or later, Step 2 on the Form W-4 determines which set of attached tables are used to compute federal tax withholding. The first set of tax tables is used for employees with a 2019 or earlier Form W-4 or whose 2020 or later Form W-4 does not have the box in Step 2(c) checked. The second set of tax tables is used for employees whose 2020 or later Form W-4 does have the box in Step 2(c) checked.
IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.
SHARP employees are encouraged to use the Employee Self Service functionality beginning January 1, 2023 to file their 2023 W-4. The 2023 W-4 can be found on the IRS website at https://www.irs.gov.
The Office of Accounts and Reports, Payroll Systems Team, will make the necessary changes in the computation of withholding taxes for SHARP agencies. Regent institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.
Regents
Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2023 has increased to $9,550 if the NRA employee has not submitted a Form W-4 for 2020 or later or $13,850 if the NRA employee has submitted a Form W-4 for 2020 or later or was first paid wages in 2020 or later. In addition, Regents should check IRS Publication 1494 for any changes to the amounts used when computing tax levies for garnishments. Regents should be aware that the withholding on supplemental wages rate remains at 22% for 2023.
IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 2022 must file a new 8233 form for calendar year 2023 if they wish to continue their non-resident alien status. As a reminder, Regent institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.
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Attachment: 2023 IRS Publication 15-T
Reference Worksheet 1A
The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2022 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency MVS mailbox with a date of January 6, 2023. This report should be downloaded and retained by your agency. The report will be removed from the MVS mailbox and will no longer be available after February 4, 2023.
The KTXPR55 W-2 listing is sorted by 1) 3-digit agency, 2) alphabetically by last name/first name, and 3) social security number (SSN). The report is totaled by 3-digit agency. The ’Total Number of Employees’ count from the Grand Totals page represents the total number of 2022 W-2s that were generated for your agency. The Department of Administration will bill each agency for the applicable costs associated with processing the 2022 W2s as a part of the Central Mail billing.
In the instance where an employee worked for more than one agency, one W-2 form has been prepared that includes earnings and deductions for all agencies. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the agency appearing on the employee's most current job record.
The standard W-2 was used for 2022. The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s state and local returns, and a copy for the employee records).
For employees consenting to receive their W-2 electronically, the form is now available on Employee Self Service (ESS). For employees receiving a printed W-2, the form will be printed and mailed by the end of January 2023.
Any employees who have retired or separated from state service continue to have access to consent to receive their W-2 forms electronically, via Employee Self- Service, for 18 months following separation. However, each retired or separated employee must sign back into Employee Self -Service and consent to receive their W-2 electronically. If this consent is not resubmitted, a paper W-2 will be generated and mailed to the former employee.
Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees who have not consented to receive an electronic W-2. If the employee has no mailing address, the employee's home address will be used for mailing the W-2. The return address for all mailed W-2 forms will be the Department of Administration, Office of Printing & Mailing.
All paper 2022 W-2s that are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be destroyed after April 15, 2023.
In cases where the 2022 W-2 Wage and Tax Statement information does not agree with your agency records, please notify the Payroll Processing Team, DOA_Payroll@ks.gov, with an explanation of the issue.
For all cases where the social security number is incorrect, please send a copy of the employee's social security card to DOA_Payroll@ks.gov with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.
For employees in need of W-2 reprints for years 2018 through 2022, agencies are expected to recommend that employees consent to view these W-2s electronically using the ‘W-2: Consent, Reissue, Forms’ tile found in Employee Self-Service. The employee may view and print the duplicate by selecting ‘View W-2/W-2c Forms’. For those employees who do not consent to receive their W-2 form electronically, a paper W-2 duplicate can be requested by selecting the ‘W-2 Reissue Request’ option also found in Employee Self -Service.
Agencies are reminded that employees who have separated or retired from State service have access to consent, view or print, and request duplicate paper W-2s for 18 months following their date of separation. These employees should be directed to utilize Employee Self-Service to consent, view or print, or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year the reissued W-2 is needed. Duplicate W-2s for 2022 will be available starting on Thursday, February 2, 2023.
Employees who cannot access Employee Self-Service should contact their Agency HR Office for duplicate paper W-2s. Agency shall refer to the job aid Agency Requested W2 Reprints for providing these duplicate reissued W-2 statements for employees of your agency.
Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report.
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The organization dues for members of the Kansas State Troopers Association will increase from $19.94 to $27.44 per bi-weekly pay period. The new rate will become effective with the payroll period beginning December 11, 2022 and ending December 24, 2022, paid January 06, 2023.
The amounts listed above include the deduction amount (ORG281 deduction code) and the $0.06 service fee (ORF281 deduction code) added together. The new rate for deduction code ORG281 will increase from $19.94 to $27.44 and the fee (ORF281) will remain at $0.06 (for a total deduction of $27.50 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 06, 2023.
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The organization dues for members of the Laborers’ International Union of North America (LiUNA) will increase from $18.06 to $18.98 per bi-weekly pay period. The new rate will become effective with the payroll period beginning February 05, 2023 and ending February 18, 2022, paid March 03, 2023.
The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $18.00 to $18.92 and the fee (ORF133) will remain at $0.06 (for a total deduction of $18.98 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after March 03, 2023.
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The Internal Revenue Service (IRS) announced the standard mileage rate has increased to 65.5 cents per mile, beginning January 1, 2023. Using the Cents Per-Mile methodology, fringe benefit income is calculated by multiplying the 65.5 cents per mile rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle.
To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total annual mileage must be used for the employer’s trade or business, or the vehicle is primarily used by the employee and the total mileage driven exceeds 10,000 miles per year. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2023, and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $60,800 for automobiles (including trucks and vans). (See IRS Notice 2023-03 and Publication 15-B (2023), Employer’s Tax Guide to Fringe Benefits)
Agencies and employees are reminded the only state approved personal use of a state-owned or leased vehicle is to commute between the employee’s workstation and home. Even those situations should be limited.
Please note this Informational Circular does not impact the State’s privately-owned vehicle mileage reimbursement rate.
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This informational circular discusses key payroll processing concepts to aid in fiscal year end closing.
Note: A separate informational circular regarding the fiscal year 2024 payroll contribution rates will be issued as soon as the information becomes available.
Off-Cycle C Payroll for Pay Period End 6/10/2023 has been cancelled. The final opportunity to run payroll adjustments for fiscal year 2023 will be Off-Cycle B, which will run on 6/21/2023, with a paycheck date of 6/26/2023.
Regent Off-Cycle B Cutoff
Cutoff for Off-Cycle B for pay period end 6/10/2023 will be 9:00 A.M., 6/21/2023. We will be unable to accept any files received after this date and time, for Off-Cycle B processing for pay period end 6/10/2023.
Budget End Date and Fiscal Year Changes
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 (BUD006) is scheduled to run during the nightly batch cycle on June 18, 2023. In that process, a new row will be added to the Department Budget tables with an effective date of June 11, 2023 (beginning date of the first on-cycle payroll charged to FY2024). The Budget End Date will be June 8, 2024.
Agencies should not enter any rows in the Department Budget table with an effective date greater than or equal to June 11, 2023, until agency notification has been received that the BUD006 process ran successfully.
A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Thursday June 22, 2023, after the ‘B’ off-cycle process has been completed for the June 10, 2023, pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 22, 2023.
Payroll Adjustments
Agencies need to complete all FY2023 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 21, 2023. The ‘B’ off-cycle is the last payroll cycle for FY2023. This includes clean-up of all Rejected by Payroll (RP) rows listed on the Reject by Payroll (Payable Time) Time and Labor Workcenter Query. Any adjustments processed after Wednesday June 21, 2023, will be included with FY2024 transactions and processed with the ‘A’ off-cycle on Monday July 3, 2023, for the June 24, 2023, pay period end date.
Benefits Contribution Rates
Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments for pay period ending dates greater than June 10, 2023, will use fiscal year 2024 rates.
Fiscal Year Expenditure Impact
Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year of the off-cycle paycheck date regardless of the pay period being adjusted. The ‘B’ off-cycle (scheduled for June 21, 2023, paycheck date June 26, 2023) for the pay period ending June 10, 2023, will be the last opportunity to have a paycheck adjustment charged to FY2023.
The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.
Regents Institutions Responsibilities
Regents institutions are responsible for ensuring the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring the SMART INF06 interface files impact the correct fiscal year.
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The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning April 30, 2023, and ending May 13, 2023, paid May 26, 2023, as follows:
Deduction Code |
Dues Deduction |
---|---|
ORG018 |
$13.02 |
The amounts listed above include the deduction amount (ORG018 deduction code) and the $0.06 service fee (ORF018 deduction code) added together. The new rate for deduction code ORG018 will increase from $10.17 to $13.02, and the fee (ORF018) will remain at $0.06 (for a total deduction of $13.08 per biweekly payroll period).
The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues’ organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after May 26, 2023.
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The amount listed above includes the deduction amount, $9.00 (ORG083 deduction code) and the $0.06 service fee (ORF083 deduction code), for a total deduction of $9.06 per biweekly payroll period.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that the employees are enrolled in the correct dues’ organization. Regent’s institutions are responsible for ensuring these changes are reflected in their individual payroll systems and is effective for paychecks issued on or after July 08, 2023.
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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 2024. The fiscal year 2024 rates will become effective with the on-cycle payroll period beginning June 11, 2023, paid July 7, 2023. The withholding rates for OASDI, Medicare, Federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2023.
For fiscal year 2024, the employer’s contribution to KPERS Death and Disability Insurance will be 1.00% (except for retirement codes J1, J2, J3 which are 0.4%).
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:
April 01, 2010-June 30, 2010
April 01, 2011-June 30, 2011
April 01, 2012-June 30, 2012
April 01, 2013-June 30, 2013
March 25, 2016-September 30, 2017
July 01, 2020-June 30, 2021
For Regent institutions, previous 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.
The Office of Accounts and Reports, 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.
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Due to the upcoming transition of SHARP to Amazon Web Services (AWS), some changes have been made to the regular payroll processing schedule for Pay Period 7/9/2023-7/22/2023. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.
SHARP Agencies
Pay Period 07/09/2023-07/22/2023
Monday, July 24, 2023
- Off-Cycle C payroll files will be processed for Pay period 06/25/2023 – 07/08/2023
- Paysheets for the on-cycle payroll will be created
- All job actions (i.e., FLSA Status change) must be entered by 7:00 PM
- All employee reported time must be entered (and approved, if applicable) by 6:30 PM (Leave payouts are calculated off of these approved hours.)
- Payable time must be approved by 7:00 PM
- Terminations and Retirements must be entered by 7:00
- The first on-cycle preliminary pay calculation will run
Tuesday, July 25, 2023
- Second on-cycle preliminary pay calculation will run
Wednesday, July 26, 2023
- Payroll confirmation will run
Thursday, July 27, 2023
- Agencies create any necessary adjustments
Friday July 28through Monday, July 31, 2023
SHARP SYSTEM WILL BE UNAVAILABLE TO AGENCIES
Monday, July 31, 2023
- Off-Cycle A payroll files will be processed
Normal payroll processing batch jobs will resume. SHARP will remain unavailable to agencies unless otherwise announced. Attached is a partial calendar for the month of July 2023, which highlights key payroll processing activity for the month.
Friday, August 4, 2023
PAYDAY
REGENT Agencies
Pay Period 07/09/2023 – 07/22/2023
Tuesday, July 25, 2023
- REGENTS ON-CYCLE files must be received by the Department of Administration by 4:00 PM
Wednesday, July 26, 2023
- OFF-CYCLE A files must be received by the Department of Administration by 4:00 PM
Thursday, July 27, 2023
- On-Cycle payroll files will be processed
Friday, July 28, 2023, through Monday, July 31, 2023
SHARP SYSTEM WILL BE UNAVAILABLE TO AGENCIES
Monday, July 31, 2023
- Run A off-cycle payroll files will be processed.
Normal payroll processing batch jobs will resume. Attached is a partial calendar for the month of July 2023, which highlights key payroll processing activity for the month.
Friday, August 4, 2023
PAYDAY
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Form DA-171, Housing, Food Service and Other Maintenance Policy is now available for agency use.
This form is to be maintained at the agency and does not need to be returned to the Office of Accounts and Reports.
If any of the items provided on the form are determined to be taxable to the employee, and there are changes in the rates for fiscal year 2024, an entry will be required in SHARP on the following page:
Payroll Homepage > Employee Payroll/Benefits Data > Create Additional Pay
FY2024 rate changes for maintenance must be entered into SHARP by 7:00 pm, June 24, 2023, to be reflected on the July 7, 2023, paycheck.
Regent institutions should also complete the Form DA-171 and maintain the completed form at the agency. Regents are responsible for updating any rate changes in their payroll system.
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Effective immediately, agencies will need to complete the DA-166: $0.00 Net Pay form for any employee who has a zero net pay on one or more paychecks. Once the form is completed, it needs to be retained on file at the agency.
The form and instructions are linked with this circular and are also saved under the Forms folder on the Payroll Procedures/Job Aids webpage.
Reference:
$0.00 DA-166: $0.00 Net Pay Form
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To address the limitations as agencies consider foreign employment arrangements across the State workforce, the State of Kansas policy regarding international employment is outlined below:
- State of Kansas payroll will only calculate, withhold, remit and report for U.S. tax jurisdictions under the authority of the United States Internal Revenue Service and the associated state and local tax jurisdictions. In addition, payments from State of Kansas payroll may not be direct deposited to an international banking institution.
- State of Kansas payroll does not support international payroll processing including, but not limited to, international HR/Payroll regulations, time reporting, payroll calculation, tax/deduction withholdings, remittances and/or reporting. Agencies who wish to hire individuals internationally are recommended to contract with employment firms with expertise in employment, reporting, and tax laws and requirements for that country who can ensure all HR/Payroll requirements for the international hire are managed in accordance with the country’s employment and tax laws and regulations.
- State of Kansas employees who are legally eligible to work in the United States and under U.S. tax jurisdictions may work remotely in locations outside of the United States at times to meet the business needs of the entity, but never in a work situation that places them under the authority/requirement of being subject to international HR/Payroll rules or tax withholding/reporting requirements. Examples may include:
- International travel for temporary research and/or work-related conferences, meetings, etc.
- Remote work from an international location for which the foreign country’s tax law or U.S. tax treaty guidelines allow a period of time during which the individual may work from the foreign location without incurring a tax withholding/reporting responsibility to the foreign country and the tax jurisdiction(s) for the employee remains as U.S. withholding/reporting. NOTE: Agencies are responsible for securing a legal review of the international tax law in cases where a request for temporary remote work is presented and providing documentation to Statewide Payroll that the temporary international remote work location does NOT impact the individual’s U.S. tax withholding requirements including, but not limited to, the determination by the legal entity completing the review and references to the specific foreign country’s tax code and/or tax treaty details that support the determination.
- For employees who want to deposit funds to an international bank account, reference Payroll Job Aid International ACH:
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The Social Security wage base for OASDI will be $168,600 for calendar year 2024. This is a $8,400 increase from the wage base for calendar year 2023 of $160,200. The OASDI tax rate for calendar year 2024 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for calendar year 2024 will be $10,453.20. There continues to be no limit on wages subject to the Medicare tax in calendar year 2024. Medicare tax rates for both employees and employers remain at 1.45%.
An additional Medicare tax of 0.9% applies to employees with wages of more than $200,000 and $250,000 for married couples filing jointly. This additional tax will only be withheld from employees’ wages. Employers will not pay the extra tax.
For federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $10,453.20 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 and $250,000 for married couples filing jointly, subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.
For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000 and $250,000 for married couples filing jointly.
The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.
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Due to the Veterans Day holiday, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.
SHARP
Monday, November 6, 2023
Pay Period 10/15-10/28/2023
- Run A off-cycle will be processed.
- SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run A off-cycle.
- All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run A off-cycle will be dated November 9, 2023.
Tuesday, November 7, 2023
Pay Period 10/15-10/28/2023
- Run B off-cycle will be processed.
- SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run B off-cycle.
- All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run B off-cycle will be dated November 13, 2023.
Thursday, November 9, 2023
Pay Period 10/15-10/28/2023
PAYDAY
Friday, November 10, 2023
Veterans Day Holiday
Monday, November 13, 2023
Pay Period 10/15-10/28/2023
- Run C off-cycle will be processed.
- SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run C off-cycle.
- All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run C off-cycle will be dated November 16, 2023.
- Time and Labor interface agencies can submit time and labor files for the period ending November 11, 2023 by 6:00 PM.
REGENTS
Thursday, November 2, 2023
Pay Period 10/15-10/28/2023
- On-cycle payroll files must be received by the Department of Administration by 1:00 PM.
Friday, November 3, 2023
Pay Period 10/15-10/28/2023
- Run A off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Sunday, November 5, 2023
Pay Period 10/15-10/28/2023
- On-cycle payroll files will be processed.
Monday, November 6, 2023
Pay Period 10/15-10/28/2023
- Run A off-cycle payroll files will be processed.
- Paychecks for the Run A off-cycle will be dated November 9, 2023.
- Run B off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Tuesday, November 7, 2023
Pay Period 10/15-10/28/2023
- Run B off-cycle payroll files will be processed.
- Paychecks for the Run B off-cycle will be dated November 13, 2023.
Thursday, November 9, 2023
Pay Period 10/15-10/28/2023
PAYDAY
- Run C off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Friday, November 10, 2023
Veterans Day Holiday
Monday, November 13, 2023
- Run C off-cycle payroll files will be processed.
- Paychecks for the Run C off-cycle will be dated November 16, 2023.
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Due to the Thanksgiving holiday, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.
SHARP
Tuesday, November 14, 2023
Pay Period 10/29-11/11/2023
- Paysheets for the on-cycle payroll will be created
- All job actions (i.e., FLSA Status change) must be entered by 7:00 PM in order to be reflected on the paysheets for this period.
- All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM, in order for a paycheck record to be created.
- Terminations and Retirements must be entered by 7:00 PM and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.
- The first on-cycle preliminary pay calculation will run.
Wednesday, November 15, 2023
Pay Period 10/29-11/11/2023
- Second on-cycle preliminary pay calculation
Thursday, November 16, 2023
Pay Period 10/29-11/11/2023
- Third on-cycle preliminary pay calculation
Friday, November 17, 2023
Pay Period 10/29-11/11/2023
- All employees’ payable time must be approved, by 7:00 PM in order for a paycheck record to be created.
- All deduction and tax data changes must be entered by 7:00 PM in order to be reflected in the final paycheck created for the employee
- Final pay confirmation for the on-cycle payroll
- Paychecks for the on-cycle will be dated November 22, 2023.
Monday, November 20, 2023
Pay Period 10/29-11/11/2023
- Run A off-cycle
- SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle.
- All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run A off-cycle will be dated November 22, 2023.
- Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 11, 2023 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 22, 2023.)
Tuesday, November 21, 2023
Pay Period 10/29-11/11/2023
- Run B off-cycle
- SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle.
- All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
- Payable time must be approved by 7:00 PM.
- Paychecks for the Run B off-cycle will be dated November 27, 2023.
Wednesday, November 22, 2023
Pay Period 10/29-11/11/2023
PAYDAY
Thursday, November 23, 2023
Thanksgiving Holiday
Friday, November 24, 2023
Thanksgiving Holiday
REGENTS
Thursday, November 16, 2023
Pay Period 10/29-11/11/2023
- On-cycle files must be received by the Department of Administration by 1:00 PM
Friday, November 17, 2023
Pay Period 10/29-11/11/2023
- Run A off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Sunday, November 19, 2023
Pay Period 10/29-11/11/2023
- On-cycle payroll files will be processed
Monday, November 20, 2023
Pay Period 10/29-11/11/2023
- Run A off-cycle payroll files will be processed.
- Run B off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
Tuesday, November 21, 2023
Pay Period 10/29-11/11/2023
- Run B off-cycle payroll files will be processed.
- Paychecks for the Run B off-cycle will be dated November 27, 2023.
Wednesday, November 22, 2023
Pay Period 10/29-11/11/2023
- Run C off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
- PAYDAY
Thursday, November 23, 2023
Thanksgiving Holiday
Friday, November 24, 2023
Thanksgiving Holiday
Beginning Monday, November 27, 2023 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2023, which highlights key payroll processing activity for the month.
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Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2024. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.
SHARP off-cycle payrolls will be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies have until 7:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 6:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 7:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.
Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.
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December Calendar
Attached is a revised calendar for the month of December 2023 that highlights key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended for use as a supplementary reference tool to this informational circular.
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