Kansas Department of Administration

Payroll Circulars

21-P-001 State Tax Implications for Teleworking (August 10, 2020)

Informational Circular No.

21-P-001

Effective Date:

Immediately

Contact Name:
Carmen Waters

Ph:
(785) 296-7059

Email:
Carmen.Waters@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

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.

 

JG:NTR:abe

 Printable Version of 21-P-001 

Procedures for Updating Employee Time Reporter Data

21-P-002 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #50 (August 19, 2020)

Informational Circular No.

21-P-002

Supersedes Informational Circular No:

20-P-007

Effective Date:

Payroll Period Ending August 22, 2020

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 $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.

 

JG:NTR:abe

Printable Version of 20-P-002

21-P-003 New Maintain Teleworkers Pages Added to SHARP (September 18, 2020)

Informational Circular No.

21-P-003

Supersedes Informational Circular No:

N/A

Effective Date:

September 18, 2020

Contact Name:
Heather DeBusk

Ph:
(785) 296-2434

Email:
Heather.DeBusk@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
<insert summary information here>

 

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.

 

JG:NTR 

Printable version of 21-P-003

21-P-004 New Benefit Plan Type/Benefit Plan/Deduction Code for KPERS-Furloughs (September 24, 2020)

Informational Circular No.

21-P-004

Supersedes Informational Circular No:

N/A

Effective Date:

August 23, 2020

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

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
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. 

JG:NTR:ewb

Printable Version of 21-P-004

21-P-005 SHARP Bi-Weekly Payroll Schedule for 2021 (October 5, 2020)

Informational Circular No.

21-P-005

Supersedes Informational Circular No:

20-P-011

Effective Date:

Calendar Year 2021

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 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.

 JG:NTR:abe

2021 On Cycle

2021 Off Cycle

Printable Version of 21-P-005

21-P-006 Change in Social Security Base Rate (October 14, 2020)

Informational Circular No.

21-P-006

Supersedes Informational Circular No:

20-P-014

Effective Date:

January 1, 2021

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 $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.

 

JG:NTR:abe

 Printable Version of 21-P-006

21-P-007 New Benefit Plans/Deduction Codes for Voluntary Supplemental Insurance for Plan Year 2021 (October 15, 2020)

Informational Circular No.

21-P-007

Supersedes Informational Circular No:

N/A

Effective Date:

December 13, 2020

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 The Hartford Voluntary Supplemental Insurance for Plan Year 2021

 

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
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.

JG:NTR:jko

Printable Version of 21-P-007

21-P-008 Key Payroll Processing Dates in November 2020 (October 30, 2020)

Informational Circular No.

21-P-008

Supersedes Informational Circular No:

20-P-016

Effective Date:

November 2020

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 2020 holidays.  

 

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

JG:NTR:abe

Attachment

Printable Version of 21-P-008

21-P-009 Deferred Compensation and Tax-Sheltered Annuity Limits for Calendar Year 2021 (November 10, 2020)

Informational Circular No.

21-P-009

Supersedes Informational Circular No:

20-P-017

Effective Date:

January 1, 2021

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
2021 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, 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.

JG:NTR:ckp

Printable Version of 21-P-009

21-P-010 December 2020 Payroll Processing (November 30, 2020)

Informational Circular No.

21-P-010

Supersedes Informational Circular No:

N/A

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 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.

Attachment

Printable Version of 21-P-010

JG:NTR:abe 

21-P-011 2021 Percentage Method Tables for Federal Tax Withholding (December 17, 2020)

Informational Circular No.

21-P-011

Supersedes Informational Circular No:

20-P-021

Effective Date:

January 1, 2021

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2021 

 

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.  

JG:NTR:abe 

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

21-P-012 Employee Taxability of State-Owned or Leased Vehicles (December 23, 2020)

Informational Circular No.

21-P-012

Supersedes Informational Circular No:

20-P-028

Effective Date:

January 1, 2021

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 2021

 

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).

JG:NTR:abe

Printable Version of 21-P-012

21-P-013 Additional New Earnings Codes and Agency Guidance Concerning the Families First Coronavirus Response Act (FFCRA) (January 6, 2021)

Informational Circular No.

21-P-013

Supersedes Informational Circular No:

N/A

Effective Date:

January 1, 2021

Contact Name:
Earl Brynds

Nancy Ruoff

Ph:
(785) 296-5376

(785) 296-2853

Email:
Earl.Brynds@ks.gov

Nancy.Ruoff@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

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.

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.

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:

 

JG:NTR:ewb

Printable Version of 21-P-013

21-P-014 W-2 Wage and Tax Statements for Calendar Year 2020 (January 8, 2021)

Informational Circular No.

21-P-014

Supersedes Informational Circular No:

20-P-022

Effective Date:

Immediately

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Information Pertaining to Employee 2020 W-2 Statements

 

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.   

Attachment A

Attachment B

Printable Version of 21-P-014

 

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21-P-015 2021 W-2 Production Report Schedule (January 8, 2021)

Informational Circular No.

21-P-015

Supersedes Informational Circular No:

20-P-023

Effective Date:

Immediately

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
2021 W-2 Production Report Schedule 

 

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. 

JG:NTR:abe

Printable Version of 21-P-015

21-P-016 Change in Organization Dues Deduction for AFSCME Council 61, Local 1357 (February 5, 2021)

Informational Circular No.

21-P-016

Supersedes Informational Circular No:

20-P-027

Effective Date:

Payroll Period Ending February 20, 2021

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 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.

JG:NTR:abe

Printable Version of 21-P-016

21-P-017 Payroll Processing Date Changes for the May 1, 2021 Pay Period End Date Due to the SHARP Upgrade (April 9, 2021)

Informational Circular No.

21-P-017

Supersedes Informational Circular No:

N/A

Effective Date:

April/May 2021

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

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.

View paycheck information

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.    

JG:NTR:ewb 

Attachment

Printable Version of 21-P-017

21-P-018 Fiscal Year End Payroll Processing for FY 2021 (May 28, 2021)

Informational Circular No.

21-P-018

Supersedes Informational Circular No:

20-P037

Effective Date:

Immediately

Contact Name:
Joyce Dickerson

Ph:
(785) 296-3979

Email:
Joyce.Dickerson@ks.gov

Approval: Sunni Zentner
(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 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:

  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’. 

JG:SGZ:abe

Printable Version of 21-P-018

21-P-019 Housing, Food Service and Other Employee Maintenance (June 16, 2021)

Informational Circular No.

21-P-019

Supersedes Informational Circular No:

20-P-039

Effective Date:

July 1, 2021

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

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.

 

Attachment

Printable version of 21-P-019

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21-P-020 Fiscal Year 2022 Payroll Contribution Rates (June 22, 2021)

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:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

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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Attachment A

Attachment B

Attachment C

Printable Version of 21-P-020

20-P-001 Moving Expense Reimbursements Subject to KPERS (July 2, 2019)


Nancy Ruoff

Ph:
(785) 296-2853

Email:
nancy.ruoff@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Employee Moving Expense Reimbursements paid with earnings codes MVT and MVG now subject to KPERS

 

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

20-P-002 Addition of New Tax Class Codes for Implementation of the Washington State Paid Family and Medical Leave (July 18, 2019)

Informational Circular No.

20-P-002

Effective Date: 

Payroll Period Ending September 21, 2019

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Addition of New Tax Class Codes for the Implementation of the Washington State Paid Family and Medical Leave

 

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.

NTR:abe
Printable version of 20-P-002

20-P-003 Implementation of District of Columbia Paid Family Leave Program (July 23, 2019)

Informational Circular No.

20-P-003

Effective Date:

Payroll Period Ending September 21, 2019

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Implementation of District of Columbia Paid Family Leave Program

 

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

20-P-004 Establish New Organization Dues Deduction Codes for Teamsters Local Union #696 (JJA) (July 30, 2019)

Informational Circular No.

20-P-004

Effective Date:

Payroll Period Ending September 7, 2019

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 $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

20-P-005 Elimination of Employer Administration Fee for Pre-Tax Parking Deductions (August 7, 2019)

Informational Circular No.

20-P-005

Effective Date:

Payroll Period Ending September 21, 2019

Contact Name:
Nancy Ruoff

Ph:
(785) 296-2853

Email:
Nancy.Ruoff@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Elimination of employer paid administration fee for pre-tax parking deductions.

 

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

20-P-006 Change in Organization Dues Deduction Amounts (August 8, 2019)

Informational Circular No.

20-P-006

Supersedes Informational Circular No:

18-P-001

Effective Date:

Payroll Period Ending September 21, 2019

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 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 

20-P-007 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30

Informational Circular No.

20-P-007

Supersedes Informational Circular No:

19-P-001

Effective Date:

Payroll Period Ending August 24, 2019

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 $31.61 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

20-P-008 Addition of New Account Code for Employer Assessment of State Paid Family Medical Leave Programs (August 22, 2019)

Informational Circular No.

20-P-008

Effective Date:

Immediately

Contact Name:
Amanda Entress
SHARP - Statewide Payroll

Nancy Haufler
SMART - Statewide Accounting

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 Code for Employer Assessment for State Paid Family Medical Leave Programs

 

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

20-P-009 Change in Insurance Coverage End Dates for Terminating Employees (August 26, 2019)

Informational Circular No.

20-P-009

Effective Date:

Month Day, Year

Contact Name:
OCFO: Earl Brynds

KDHE: Pete Nagurny

Ph:
(785) 296-5376

(785) 296-0185

Email:
Earl.Brynds@ks.gov

Pete.Nagurny@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
State Employee Health Plan Policy Change in Coverage End Date for Terminating Employees

 

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).

NTR:abe
Printable Version of 20-P-009

20-P-010 Unemployment Compensation Insurance Exemptions (August 28, 2019)

Informational Circular No.

20-P-010

Effective Date:

Immediately

Contact Name:
Carmen Waters

Ph:
(785) 296-7059

Email:
Carmen.Waters@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Unemployment Compensation Insurance Exemptions

 

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

20-P-011 SHARP Bi-Weekly Payroll Schedule for 2020 (September 10, 2011)

Informational Circular No. 20-P-011

Supersedes Informational Circular No:

19-P-003

Effective Date:

Calendar 2020

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 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

20-P-012 Addition of Direct Deposit Authorization Form to Employee Self Service (September 17, 2019)

Informational Circular No. 20-P-012

Effective Date:

Immediately

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
Amanda.Entress@ks.gov

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

20-P-013 Addition of New Error Message on PAY011 Payroll Error Messages Report (October 4, 2019)

Informational Circular No. 20-P-013

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: 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:

 Exempt

If an employee is in one or more positions and at least one of the positions is subject to UCI:

NonExempt


JG:NTR:abe
Printable version of 20-P-013

20-P-014 Change in Social Security Base Rate (October 11, 2019)

Informational Circular No. 20-P-014

Supersedes Informational Circular No:

19-P-006

Effective Date:

January 1, 2020

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 $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.

JG:NTR:ckw

Printable Version of 20-P-014

20-P-015 implementation of Daily Process to Identify SMART AP Vouchers for Current Employees (October 11, 2019)

Informational Circular No. 20-P-015

Effective Date:

Immediately

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
Amanda.Entress@ks.gov

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.

 JG:NTR:abe

Printable Version of 20-P-015

20-P-016 Key Payroll Processing Dates in November 2019 (October 28, 2019)

Informational Circular No. 20-P-016

Supersedes Informational Circular No:

19-P-007

Effective Date:

November 2019

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 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.

JG:NTR:abe

November Calendar
Printable Version of 20-P-016

20-P-017 Deferred Compensation and Tax-Sheltered Annuity Limits for Calendar Year 2020 (November 19, 2019)

Informational Circular No. 20-P-017

Supersedes Informational Circular No:

19-P-010

Effective Date:

January 1, 2020

Contact Name:
Carmen Waters

Ph:
(785) 296-7059

Email:
carmen.waters@ks.gov

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.

JG:NTR:ckw
Printable version of  20-P-017

20-P-018 Claiming Exemption from Federal Taxation W-4 Changes for 2020 (November 25, 2019)

Informational Circular No. 20-P-018

Effective Date:

January 1, 2020

Contact Name:
Carmen Waters

Ph:
(785) 296-7059

Email:
carmen.waters@ks.gov

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’.

JG:NTR:abe
Printable Version of 20-P-018

20-P-019 December 2019 Payroll Processing (November 25, 2019)

Informational Circular No. 20-P-019

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 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
JG:NTR:abe

20-P-020 IRS Releases 2020 Form W-4 (December 13, 2019)

Informational Circular No. 20-P-020

Effective Date:

Immediately

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
amanda.entress@ks.gov

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. 

JG:NTR:abe
Printable Version of 20-P-020

20-P-021 2020 Percentage Method Tables for Federal Tax Withholding (December 27, 2019)

Informational Circular No. 20-P-021

Supersedes Informational Circular No:

19-P-013

Effective Date:

January 1, 2020

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, 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

20-P-022 W-2 Wage and Tax Statements for Calendar Year 2019 (January 6, 2020)

Informational Circular No. 20-P-022

Supersedes Informational Circular No:

19-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 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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20-P-023 2020 W-2 Production Report Schedule (January 6, 2020)

Informational Circular No. 20-P-023

Supersedes Informational Circular No:

19-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: 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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20-P-024 2020 Form W-4 Required for Rehired Employees (January 6, 2020)

Informational Circular No. 20-P-024

Effective Date:

Immediately

Contact Name:
Nancy Ruoff

Ph:
(785) 296-2853

Email:
nancy.ruoff@ks.gov

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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20-P-025 New NACHA Requirement for Data Security (January 16, 2020)

Informational Circular No. 20-P-024

Effective Date:

June 30, 2020

Contact Name:
Nancy Ruoff

Sunni Zentner

Ph:
(785) 296-2853

(785) 296-7058

Email:
nancy.ruoff@ks.gov

sunni.zentner@ks.gov

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
20-P-026 Elimination of Employer E-Mail Notice of Changes to Employee W-4 and K-4 Withholding Made Through SHARP Employee Self Service (January 22, 2020)

Informational Circular No. 20-P-026

Effective Date:

Immediately

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
Amanda.Entress@ks.gov

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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20-P-027 Change in Organization Dues Deductions for AFSCME Council 61, Local 1357 (January 30, 2020)

Informational Circular No. 20-P-027

Supersedes Informational Circular No:

19-P-020

Effective Date:

Payroll Period Ending February 8, 2020

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 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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20-P-028 Employee Taxability of State-Owned or Leased Vehicles (January 30, 2020)

Informational Circular No. 20-P-028

Supersedes Informational Circular No:

19-P-014

Effective Date:

January 1, 2020

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 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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20-P-029 NACHA Requirement for Data Security Enforcement Delay (February 25, 2020)

Informational Circular No. 20-P-029

Effective Date:

June 30, 2020

Contact Name:
Nancy Ruoff

Sunni Zentner

Ph:
(785) 296-2853

(785) 296-7058

Email:
Nancy.Ruoff@ks.gov

Sunni.Zentner@ks.gov

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

20-P-030 Terminated/Retired Employee Self-Service Access Change (February 27, 2020)

Informational Circular No. 20-P-030

Supersedes Informational Circular No:

12-P-011

Effective Date:

Immediately

Contact Name:
Jude Overton

Ph:
(785) 296-2290

Email:
jude.overton@ks.gov

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

20-P-031 Addition of Earnings Code for COVID-19 Related Tasks (March 17, 2020)

Informational Circular No. 20-P-031

Effective Date:

March 8, 2020

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 ‘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

20-P-032 Suspension of Continuing Education Garnishments for US Department of Education (March 30, 2020)

Informational Circular No. 20-P-032

Effective Date:

March 13, 2020

Contact Name:
Jennifer Holthaus

Ph:
(785) 368-6313

Email:
Jennifer.Holthaus@ks.gov

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

20-P-033 Update to Program Code for Funding Associated with the New CVD Earnings Code (Time Reporting Code CVTSK) (March 31, 2020)

Informational Circular No. 20-P-033

Effective Date:

March 8, 2020

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

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.

JG:NTR
Printable Version of 20-P-033

20-P-034 Agency Options for Required Use of New Program Code for Funding Related to COVID-19 Payroll Expenditures (April 1, 2020)

Informational Circular No. 20-P-034

Effective Date:

March 8, 2020

Contact Name:
Earl Brynds

Ph:
(785)296-5376

Email:
Earl.Brynds@ks.gov

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:

    Timesheet

  • 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.

JG:NTR

Attachment A
Printable Version of 20-P-034

20-P-035 New Earnings Codes and Agency Guidance for Implementation of the Families First Coronavirus Relief Act (FFCRA) (April 15, 2020)

Informational Circular No. 20-P-035

Effective Date:

April 5, 2020

Contact Name:
Earl Brynds

Nancy Ruoff

Ph:
(785) 296-5376

(785) 296-2853

Email:
Earl.Brynds@ks.gov

Nancy.Ruoff@ks.gov

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:

Office of Personnel Services Time and Labor Contacts:

JG:NTR
Printable Version of 20-P-035

20-P-036 Payroll/SMART Processing Date Changes in June 2020 (May 11, 2020)

Informational Circular No. 20-P-036

Effective Date:

June 2020

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 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.

 

JG:NTR:abe
Printable Version of 20-P-036

20-P-037 Fiscal Year End Payroll Processing for FY 2020 (May 11, 2020)

Informational Circular No. 20-P-037

Supersedes Informational Circular No:

19-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 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:

  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’.

JG:NTR:abe
Printable Version of 20-P-037

20-P-038 Additional New Earnings Codes and Agency Guidance Changes for Administering the Families First Coronavirus Relief Act (FFCRA) (May 13, 2020)

Informational Circular No. 20-P-038

Effective Date:

May 4, 2020

Contact Name:
Earl Brynds

Nancy Ruoff

Ph:
(785) 296-5376

(785) 296-2853

Email:
Earl.Brynds@ks.gov

Nancy.Ruoff@ks.gov

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:

Office of Personnel Services Time and Labor Contacts:

 

JG:NTR:ewb
Printable Version of 20-P-038

20-P-039 Housing, Food Service and Other Employee Maintenance (May 14, 2020)

Informational Circular No. 20-P-039

Supersedes Informational Circular No:

19-P-023

Effective Date:

July 1, 2020

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 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
JG:NTR:abe

20-P-040 Fiscal Year 2021 Payroll Contribution Rates (June 30, 2020)

Informational Circular No. 20-P-040

Supersedes Informational Circular No:

19-P-025

Effective Date:

Pay Period Beginning June 14, 2020; Ending June 27 2020; Paid July 10, 2020

Contact Name:
Carmen Waters

Ph:
(785) 296-7059

Email:
Carmen.Waters@ks.gov

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.

 JG:NTR:abe

Attachment A

Attachment B

Attachment C

Printable Version of 20-P-040

19-P-001 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (August 17, 2018)

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.

DH:NTR:ckw

Printable Version of 19-P-001

19-P-002 Modification of Earnings Code S16 due to FOP Agreement (August 22, 2018)

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.

 

DH:NTR:ckw
Printable Version of 19-P-002

19-P-003 SHARP Bi-Weekly Payroll Schedule for 2019 (September 20, 2018) Updated

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.

DH:NTR:abe

On-Cycle Calendar
Off-Cycle Calendar
Printable Version of 19-P-003

19-P-004 Dissolution of SEAK Organization (September 27, 2018)

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

DH:NTR:abe

19-P-005 Revised FY 2019 KPERS Employer Contribution Rate for Judges (October 9, 2018)

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. 

 

DH:NTR:abe
Amended Attachment A
Printable Version of 19-P-005

19-P-006 Change in Social Security Base Rate (October 17, 2018)

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.

DH:NTR:ckw

Printable Version of 19-P-006

19-P-007 Key Payroll Processing Dates in November 2018 (October 29, 2018)

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.    

 

DH:NTR:abe

Attachment
Printable Version of 19-P-007

19-P-008 New Benefit Plan Type/Benefit Plans/Deduction Codes for Long Term Care Insurance (October 30, 2018)

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
TYPE

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.

 

DH:NTR:jko
Printable Version of 19-P-008

19-P-009 Change in Organization Dues Deduction for Public Service Employees Local Union 1290 P.E. (November 8, 2018)

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.

DH:NTR:abe
Printable Version of 19-P-009

19-P-010 Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2019 (November 8, 2018)

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.

DH:NTR:ckw
Printable Version of 19-P-010

19-P-011 Addition of Earnings Code for Paid Parental Leave (November 27, 2018)

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.

DH:NTR:ewb
Printable Version of 19-P-011

19-P-012 December 2018 Payroll Processing (November 28, 2018)

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

19-P-013 2019 Percentage Method Tables for Federal Tax Withholding (December 18, 2018)

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.

DH:NTR:abe

Attachment:  Tables for Percentage Method of Withholding
Printable version of 19-P-013

19-P-014 Employee Taxability of State-Owned or Leased Vehicles (January 2, 2019)

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

19-P-015 W-2 Wage and Tax Statements for Calendar Year 2018 (January 8, 2019)

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

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19-P-016 2019 W-2 Production Report Schedule (January 8, 2019)

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

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19-P-017 United Way of Winfield Name Change (February 25, 2019)

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

19-P-018 Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2 (February 27, 2019)

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  

19-P-019 Payroll Processing Date Changes for the March 23, 2019 Pay Period End Date Due to the SHARP FLUID Upgrade (March 1, 2019)

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

19-P-020 Change in Organization Dues Deduction for AFSCME Council 72, Local 1357 (March 28, 2019)

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.

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Printable Version 19-P-020

19-P-021 Payroll/SMART Processing Date Changes in June 2019 (April 23, 2019)

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

19-P-022 Fiscal Year End Payroll Processing for FY 2019 (May 1, 2019)

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:

  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’.

 

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Printable Version 19-P-022

19-P-023 Housing, Food Service and Other Employee Maintenance (May 1, 2019)

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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19-P-024 Establish New Organization Dues Deduction Codes for Teamsters Local Union #696 (JJA) (May 7, 2019)

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.

 

NTR:abe
Printable Version of 19-P-024

19-P-025 Fiscal Year 2020 Payroll Contribution Rates (June 19, 2019)

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.

NTR:abe
Attachment A
Attachment B
Attachment C
Printable Version of 19-P-025

19-P-026 Organization Dues Change for ORG059 (June 26, 2019)

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.

NTR:abe
Printable Version 19-P-026

18-P-001 Change in Organization Dues Deduction Amounts (August 15, 2017)

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.

DH:NTR:abe

Printable Version of 18-P-001

18-P-002 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (August 22, 2017)

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

18-P-003 Missouri State Withholding Tax Law Change (August 24, 2017)

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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18-P-004 Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium (September 5, 2017)

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.

 

DH:NTR:abe

Printable Version of 18-P-004

18-P-005 SHARP Bi-Weekly Payroll Schedule for 2018 (October 3, 2017)

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

2018 On-cycle
2018 Off-Cycle

Printable version of 18-P-005

18-P-006 New Benefit Plans/Deduction Codes for Group Health Insurance (October 16, 2017)

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

18-P-007 Change in Social Security Base Rate (October 24, 2017)

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

18-P-008 Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2018 (October 27, 2018)

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

18-P-009 Key Payroll Processing Dates in November 2017 (October 30, 2017)

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

18-P-010 December 2017 Payroll Processing (November 7, 2017)

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

DH:NTR:abe

18-P-011 Change in Organization Dues Deduction for Public Service Employees Local Union 1290 P.E. (November 22, 2017)

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

18-P-012 Change in Social Security Base Rate (November 28, 2017)

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

18-P-013 Employee Taxability of State-Owned or Leased Vehicles (December 19, 2017)

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

18-P-015 Working After Retirement Changes for 2018 (December 22, 2017)

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.

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Attachment
Printable Version of 18-P-015

18-P-016 W-2 Wage and Tax Statements for Calendar Year 2017 (January 5, 2018)

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

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18-P-017 2018 W-2 Production Report Schedule (January 5, 2018)

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

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18-P-018 2018 Percentage Method Tables for Federal Tax Withholding (January 12, 2018)

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. 

 

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Attachment:  Tables for Percentage Method of Withholding
Printable Version of 18-P-018

18-P-019 Employee Moving Expense Reimbursements (March 26, 2018)

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.

Policy Manual

 

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Printable Version of 18-P-019

18-P-020 Payroll/SMART Processing Date Changes in June 2018 (May 1, 2018)

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

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18-P-021 Housing, Food Service and Other Employee Maintenance (May 8, 2018)

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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18-P-022 Fiscal Year End Payroll Processing for FY 2018

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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18-P-023 Fiscal Year 2019 Payroll Contribution Rates (June 26, 2018)

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.

 

DH:NTR:abe

Attachment A
Attachment B
Attachment C
Printable Version of 18-P-023

17-P-001 Housing, Food Service, and Other Employee Maintenance (July 1, 2016)

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.

Attachment

DH:NTR:abe

Printable version of 17-P-001

17-P-002 Change in Organization Dues Deduction Amounts (August 3, 2016)

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.

DH:NTR:ckw

Printable version of 17-P-002

17-P-003 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (August 4, 2016)

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.

DH:NTR:ckw

Printable version of 17-P-003

17-P-004 New Benefit Plan Type/Benefit Plans/Deduction Code for Deferred Compensation-Roth Option (September 7, 2016)

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.

 

DH:NTR:ewb

Printable version of 17-P-004

17-P-005 New Benefit Plan Type/Benefit Plans/Deduction Codes for Voluntary Supplemental Insurance (September 28, 2016)

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
TYPE

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.

 

DH:NTR:ewb

Printable Version of 17-P-005

17-P-006 SHARP Bi-Weekly Payroll Schedule for 2017 (October 5, 2016)

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.

 

DH:EWB:ckw

2017 On-cycle 
2017 Off-Cycle

Printable Version of 17-P-006

17-P-007 Change in Social Security Base Rate (October 19, 2016)

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.

 

DH:NTR:abe

Printable version of 17-P-007

17-P-008 Key Payroll Processing Dates in November 2016 (October 19, 2016)

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

17-P-009 December 2016 Payroll Processing (November 1, 2016)

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

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17-P-010 Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2017 (November 15, 2016)

Informational Circular No.

17-P-010

Supersedes Informational Circular No:

15-P-012

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:
2017 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, 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

17-P-011 Change in Organization Dues Deduction for Public Service Employees Local Union 1290 P.E. (November 15, 2016)

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

17-P-012 Organization Dues Change for ORG050 and ORG051 (November 15, 2016)

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

17-P-013 Addition of New Account Codes for KPERS Working After Retirement 3rd Party/Independent Contractors Expenditure Tracking (November 21, 2016)

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

17-P-014 2017 Percentage Method Tables for Federal Tax Withholding (December 13, 2016)

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.

DH:NTR:abe

Attachment:  Tables for Percentage Method of Withholding

Printable version of 17-P-014

17-P-015 Employee Taxability of State-Owned or Leased Vehicle (December 16, 2016)

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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17-P-016 Change in Organization Dues Deduction for FOP Lodge #37 (December 28, 2016)

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

17-P-017 W-2 Wage and Tax Statements for Calendar Year 2016 (January 9, 2017)

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.   

Attachment A

Attachment B

Printable Version of 17-P-017

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17-P-018 2017 W-2 Production Report Schedule (January 9, 2017)

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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17-P-019 Change in KOSE Organization Dues Deduction Amounts (February 7, 2017)

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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17-P-020 SHARP 9.2 Upgrade and Key Payroll Processing Dates in May 2017 (April 14, 2017)

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:
    1. The Net Pay Distribution area on the Paycheck Deductions tab under the Review Paycheck page.
    2. The Net Pay Distribution area on the PDF pay advice document under View Paycheck in Employee Self-Service.
    3. 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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Attachment

Printable Version of 17-P-020

17-P-021 Payroll/SMART Processing Date Changes in June 2017 (May 8, 2017)

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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17-P-022 Fiscal Year End Payroll Processing for FY 2017 (May 15, 2017)

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:

  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 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 17-P-022

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17-P-023 Housing, Food Service and Other Employee Maintenance (May 15, 2017)

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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17-P-024 Fiscal Year 2018 Payroll Contribution Rates (June 21, 2017)

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.

 

DH:NTR:abe

Attachment A
Attachment B
Attachment C
Printable Version of 17-P-024

17-P-025 New Payroll Paycard Provider (June 28, 2017)

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.

 

DH:NTR:abe

Printable Version of 17-P-025

17-P-026 2017 Percentage Method Tables for State Tax Withholdings (June 28, 2017)

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.

DH:NTR:abe

Attachment:  Tables for Percentage Method of Withholding
Printable version of 17-P-026

16-P-001 Change in Organization Dues Deduction Amount (August 13, 2015)

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.

DH:ABE:ckw

16-P-002 Changes in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (August 13, 2015)

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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16-P-003 Change in Organization Dues Deductions for the Kansas State Troopers Association (August 28, 2015)

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.

 

DH:ABE:ckw

16-P-004 New Buyback Benefit Plan/Deduction Code for Members of KPERS 3

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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16-P-005 New Deduction Codes for Dependent Child Group Life Payroll Deductions (October 1, 2015)

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.

 

DH:EWB:ckw

Printable Version of 16-P-005

16-P-006 SHARP Bi-Weekly Payroll Schedule for 2016 (October 6, 2015)

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.

 

DH:EWB:ckw

 

2016 On-cycle
2016 Off-cycle
Printable Version of 16-P-006

16-P-007 SHARP Cutover for PeopleTools Upgrade, SMART Upgrade and Other Key Payroll Processing Dates in November 2015 (October 9, 2015)

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

16-P-008 Addition of New Vision Provider Deduction Codes/Benefit Plans

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

16-P-009 Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 5, 2015 and December 19, 2015 (December 2, 2015)

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

16-P-010 Change in Organization Dues Deduction for Public Service Employees Local Union 1290 P.E. (December 7, 2015)

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

16-P-011 2016 Percentage Method Tables for Federal Tax Withholding (December 9, 2015)

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                       

16-P-012 December 2015 Payroll Processing (December 9, 2015)

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.

 

Attachment

Printable version of 16-P-012
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16-P-013 Parking Fee Decrease - Curtis Building Garage (December 23, 2015)

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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16-P-014 Employer Taxability of State-Owned or Leased Vehicles

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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16-P-015 W-2 Wage and Tax Statements for Calendar Year 2015 (January 11, 2016)

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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16-P-016 2016 W-2 Production Report Schedule (January 11, 2016)

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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16-P-017 Additional Parking Codes for State Parking Lot 3 (February 10, 2016)

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

DH:NTR:abe

16-P-018 Employer KPERS Death and Disability Insurance Contribution Moratorium (March 2, 2016)

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.

 

DH:NTR:abe

16-P-019 Change in Timing of Payroll Vision Deduction (April 13, 2016)

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

DH:EWB:abe

16-P-020 Addition of Earnings Code for Volunteerism Award (April 18, 2016)

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

DH:NTR:abe

16-P-021 Optional Group Life Insurance Rate Changes, Spousal Life Insurance, and Child Life Insurance Changes (April 22, 2016)

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

DH:NTR:abe

16-P-022 Extension of Employer KPERS Death and Disability Insurance Contributions Moratorium (April 28, 2016)

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

DH:NTR:abe

16-P-023 Fiscal Year End Payroll Processing for FY 2016 (May 11, 2016)

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:

  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 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 16-P-023

DH:NTR:abe

16-P-024 New Benefit Plans/Rules for KPERS Working After Retirement (June 9, 2016)

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.

DH:NTR:ewb

 

Attachment

Printable version of 16-P-024

16-P-025 Fiscal Year 2017 Payroll Contribution Rates (June 14, 2016)

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.

 

DH:NTR:abe

Attachment A

Attachment B

Attachment C

Printable Version of 16-P-025

15-P-001 Addition to the KPAY711 report (Issued June 27, 2014)

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.

 

SG:NTR:had

15-P-002 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (issued July 22, 2014)

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.

 

SG:NTR:ccl

15-P-003 Change in Organization Dues Deduction Amounts (Issued August 8, 2014)

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.

SG:NTR:ccl

15-P-004 New Employee Self Service K-4 Update Capability (Issued September 10, 2014)

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.

SG:NTR:kao

15-P-005 COBRAGuard Implementation for Health Benefits in SHARP (Issued Setpember 12, 2014)

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.

SG:NTR:ewb

15-P-006 ING Financial Services Name Change to Voya Financial, Inc. (Issued September 17, 2014)

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

 

SG:NTR:kao

15-P-007 Addition of Earnings Code for Leave Without Pay-Non-Exempt (Issued September 30, 2014)

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.

SG:NTR:ewb

15-P-008 SHARP Bi-Weekly Payroll Schedule for 2015 (Issued September 30, 2014)

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.

 

SG:NTR:ewb

 

2015 On-Cycle
2015 Off-Cycle

15-P-009 Payroll Processing Changes Due To COBRAGuard (MAP) Implementation (Issued October 13, 2014)

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:

  1. Employees who pre-pay health insurance for a pay period where they have no pay
  2. 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

Printable Version of 15-P-009

SG:NTR:ewb

15-P-010 Change in Social Security Base Rate (Issued October 24, 2014)

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

15-P-011 Key Payroll Processing Dates in November 2014 (Issued October 28, 2014)

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

15-P-012 Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2015 (Issued October 28, 2014)

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

15-P-013 New Deduction Codes for KPERS Tier 3 Deductions (Issued October 29, 2014)

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

15-P-014 Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 6, 2014 and December 20, 2014 (November 20, 2014)

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 enter