FY 1999

DATE:	August 21, 1998
SUBJECT:	VTSA Company Changes
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Tax Sheltered Annuity Company Name Change

The Kansas Board of Regents has been notified that Western National Life Insurance Company, no. 792, was acquired by and changed its name to American General Annuity.

While the company name has changed, the mailing address will remain as follows:

American General Annuity Insurance Company
P. O. Box 2754
Amarillo, TX 79105

Payroll Services will make the necessary modifications to the SHARP system to reflect this company change. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.

SAM:JJM:LI

DATE:	September 30, 1998
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Immediately
CONTACT:	Abby Moore	(785) 296-2133
APPROVAL:
SUMMARY:	KPERS Quarterly Remittance Totals Verification

Effective with the third quarter 1998, Regents will no longer be required to verify quarterly KPERS remittance file totals with the Payroll Reconciliation\Remittance Team. KPERS annual remittance datasets will continue to be received, processed, and reviewed per the updated attachment.

The elimination of the KPERS Quarterly Remittance totals verification process discussed above supersedes Informational Circular No. 97-R-008, dated December 11, 1996, that has an attachment titled "Regents Remittance Reports/Interface by Fund." This attachment required RGKPER-Summary of Tape Totals and PYRLR048-Transactions Not on Quarterly Tape to be sent to Payroll Services.

Questions regarding this informational circular should be directed to the Division of Accounts and Reports, Abby Moore, Payroll Services at (785) 296-2133.

SAM:AM

Attachment (.pdf)

DATE:	September 30, 1998
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Immediately
CONTACT:	Abby Moore	(785) 296-2133
APPROVAL:
SUMMARY:	Date Changes on the UCI Quarterly Wage & Statistic Reporting

The Department of Human Resources has notified Payroll Services that Y2K changes have been made to their Unemployment Compensation Insurance (UCI) reporting system. Effective with the third quarter 1998, reporting for the UCI Quarterly Wage Remittance Report and Dataset and the UCI Quarterly Statistic Report and Dataset must be modified for Y2K compliance per the attached formats. Regent Institutions are responsible for making the necessary modifications to their Wage and Statistic reporting to reflect the change.

The following are the changes to the Wage Remittance Dataset:

• Element "Wage Quarter/Year Code" increased to 9(5). This is the Quarter number and four digits of year (CCYY).
• Element "Wage First Name Initial" follows "Year Code." There is no longer any filler separating the two elements.

The following are the changes to the Statistic Dataset:

Header Record

• Element "Year" increased to 9(4). This is the four digits of year (CCYY) Detail Record
• Element "Filler" at end increased to X(9).

SAM:AM
Attachment (pdf)

DATE:	April 12, 1999
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Various: see explanation below
CONTACT:	Myrene Bears	(785) 296-5368
APPROVAL:
SUMMARY:	Update to Index Codes for Agency and DOA Clearing Funds

The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 99-P-004 dated September 23, 1998. The following updates were made:

SLPKPERS for sick leave payout reserve, index code 9872, has again been included on the listing. It was accidently left off the attachment that was included with Informational Circular 99-P-004. There has been no change in any of the sick leave payout reserve index codes.

STATE TAX - UTAH, GEORGIA: index code 9768 will be used for any NEW states for which withholding is required.

UCI - ALL OTHER STATES EMPLOYER: index code 9828 will be used for any NEW states for which unemployment compensation insurance is required.

SAM:JJM:mb

Attachment (pdf)

DATE:	October 8, 1998
SUBJECT:	SHARP 7.0 Payroll Policy Changes
EFFECTIVE DATE:	October 4, 1998
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Payroll Policies Effective with SHARP 7.0 Implementation

Following is a summary of the payroll policy changes that are effective on October 4, 1998 with the implementation of SHARP 7.0. These policy changes and the related procedural changes have been presented to agencies in the SHARP User Training meetings in July, August, and September 1998 and have been incorporated into the SHARP CBT training materials.

DIRECT DEPOSIT

• Payroll direct deposits can be made to multiple accounts in multiple financial institutions. Employees may designate up to a maximum of 6 financial institutions with up to 10 accounts in each institution. Employees can also request a combination of direct deposit accounts and still receive a paper check for a portion of their pay.

PAY CALCULATION

• State withholding tax will be rounded to the nearest whole dollar.
• Overtime will be calculated using the delivered PeopleSoft calculation that is FLSA compliant and approved by Division of Personnel Services. The overtime calculation is:

(Regular Hours X Hourly Rate) + (Overtime Hours X Hourly Rate) + Premium Pay Total Hours Worked in Work Week = FSLA

(Overtime Hours X Hourly Rate) + (Overtime Hours X FLSA Rate X .5) = Overtime Earnings

PAYROLL ADJUSTMENTS:

• Earnings will be 'advanced' to the employee in situations where an employee does not have sufficient net pay to allow deductions (and the corresponding employer contributions) for group health insurance, flexible spending accounts, legislative KPERS, legislative KPERS buyback, and optional group life insurance. In such cases, an arrears balance is automatically set up by the system. In situations where the employee has a tax garnishment, earnings will not be 'advanced'. The employer deductions will occur on the paycheck; arrears balances will be automatically set up by the system for the employee deductions not taken. The 'advance earnings' will increase the employee's taxable wages but will not be considered compensation for the purpose of benefits (i.e. Retirement, state leave assessment, and worker's compensation). At the time the advance earnings arrearage is collected the employee's taxable wages will be reduced.
• Three off-cycle payrolls will be processed for each pay period.
• Paycheck adjustments will update employee current year balances regardless of when the original paycheck was issued. Agencies must ensure that all payroll adjustments for the calendar year are processed by the end of the calendar year. Except for adjustments to correct FICA coverage, employees will not be issued a Form W-2C, Statement of Corrected Earnings, when a paycheck issued in a previous calendar year is adjusted or reversed.
• Payments for suggestion awards will be included on the employee's next regular paycheck.
• Agencies will be responsible for verifying with the State Treasurer's Office that a warrant has not been redeemed and completing the Paycheck Stop Payment Request form prior to processing a paycheck reversal or paycheck reprint.
• Only one "adjustment" transaction can be processed per person per off-cycle payroll due to PeopleSoft delivered software functionality. For an employee, only one adjustment, or one reversal, or one supplemental request can be made in one off-cycle payroll.

SHARP FORMS:

• All SHARP forms have been revised except the DA-186 Authorization for State Additional Withholding Tax Deduction. Copies of the forms are available in the CBT training materials. Agencies should make copies of the forms as needed. SHARP revised forms are:
• DA-179 SHARP Maximum Arrears Payback
• DA-180 SHARP Paycheck Reversal/Adjustment
• DA-182 SHARP Paycheck Reprint Request
• DA-184 SHARP Authorization for Direct Deposit of Employee Pay
• DA-187 SHARP Supplemental Paycheck Authorization
• DA-217 SHARP Position Data Sheet
• DA-218 SHARP Employee Data Sheet
• DA-219A SHARP Account Code Maintenance
• DA-219B SHARP Position Pool ID Maintenance
• DA-219C SHARP Department Budget Earnings/Deductions/Taxes
• DA-6P Paycheck Stop Payment Request

Payroll Services will make the necessary modifications to the SHARP system to reflect these policy changes. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.

SAM:JJM

DATE:	October 13, 1998
SUBJECT:	Other Remuneration
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Authorization To Discontinue Tracking Other Remuneration In SHARP Version 7.0

Pursuant to the legal opinion dated October 12, 1998 as provided by the Department of Administration legal staff, the tracking of Other Remuneration in SHARP version 7.0 payroll system is being discontinued effective immediately.

There should NOT be any usage of the "REM" earnings code with the first paychecks issued out of SHARP version 7.0. This applies to the pay period beginning October 4, 1998 and ending October 17, 1998 with a paycheck date of October 30, 1998.

Please do not use the "REM" earnings code on the timesheets. If you have "REM" setup as additional pay, please access the Additional Pay 1 panel through Go/Compensate Employees/Maintain Payroll Data U. S./Use/Additional Pay. Enter 10/4/98 as the "EARN END DATE" to discontinue tracking Other Remuneration. Please be sure that you have the appropriate Additional Pay panel for the "REM" earnings code and that the "Addl Seq #" is set to 1. The "Ok to Pay" box should also be turned off (left blank).

SAM:JM:LI

DATE:	October 23, 1998
SUBJECT:	SHARP Version 7.0 - Payroll Pointers #1
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Helpful Payroll Processing Information

To assist users in their understanding of the upgraded SHARP 7.0 payroll system and to inform users of new developments based on recent testing, Payroll Services in the Division of Accounts and Reports has compiled the following list of payroll pointers. Please provide a copy of this summary to all SHARP payroll users in your agency.

GENERAL:

1. Arrearage collection - If an employee has an outstanding arrearage balance, the on-cycle pay calculation will collect as much of the arrearage as possible, reducing the employee's net pay to zero. Agencies should monitor the KPAY007 Deductions in Arrears Report for large arrearage balances and establish deduction overrides where needed. Agencies should also monitor the preliminary KPAY002-Payroll Register for zero net paychecks and determine if action should be taken prior to final pay calculation.
2. Direct Deposit - With enhanced functionality in 7.0, employees are now able to allocate net pay between multiple financial institutions and also receive a paycheck along with direct deposit. After an employee makes a change to their direct deposit information and the change has been pre-noted, agencies should verify the correct distribution of the employee's net pay by monitoring the final KPAY002 report which shows net pay by paycheck and advice (ie, 'C' or 'A' beside the net amount on the right side of the report). Also, the KDDP002-Direct Deposit Register lists net pay amounts for each account within each financial institution.
   
   If an employee is receiving both a paycheck and advice, the pay stub for each will only show the net pay for that paycheck/advice. The net from each should be added together to obtain the employee's total net. All other earnings and deductions shown on the pay stub reflect the employee's total compensation for the pay period.
3. On-line Paycheck - Users must be logged into SHARP through the Application Server in order to use the new on-line paycheck functionality. Also, during the time period that on-cycle paychecks are being calculated (Wednesday through Friday of the week before payday), users will receive an error message if they try to calculate an on-line paycheck.
4. Earnings Codes -The new earnings code for regular overtime is 'OTP' and 'O28' for 28-day overtime. The following earnings codes have been inactivated effective 10/4/98: OVT, FCB, IEL, N17, SF0, SF2, and SF4.

ADJUSTMENTS:

1. Benefit/Deduction Adjustments - Savings plan and retirement plan changes (KPERS, Deferred Compensation, TSA, and VTSA) that result in paycheck adjustments can be processed the same as in 4.02. The effective-dated benefit change should be made to the employee's record prior to entry of the paycheck adjustment request. These should not be submitted to Payroll Services as stated in previous memorandums and CBT training materials.
2. Multiple Adjustments - If multiple transactions are requested for the same employee in the same off-cycle, the priority for processing will be: supplemental, centrally entered adjustment, agency entered adjustment and reversal. The transactions that do not process will show on-line as a payroll error message and also on the KPAY213 Final Error Messages report. Paycheck reprints and reversals can process in the same off-cycle as any of the above transactions.
3. Prior Year Adjustments - If a paycheck is requested for an adjustment that is over 2 years old, it will error during payroll calculation. If an adjustment is required for these paychecks, complete the DA-180 form and send to Payroll Services for processing.
4. Time Adjustments - New indicators will display under the 'Adj' column on the left side of the Time Adjustments panel. When a new row is added, the indicator displays 'I'. If the adjustment is pay affecting, the indicator will change to 'Y' when the panel is saved. If the adjustment is non-pay affecting, the indicator will change to 'L' when the panel is saved. The 'L' rows will NOT update to payroll for a pay affecting adjustment. The 'Y' rows will be grayed out when you exit the panel. If a keying error was made, additional 'Y' rows can be added until the off- cycle processes.
5. Earnings Codes - When adjusting a paycheck for an exempt employee, the new 'leave' earnings codes should be utilized. For example, 'VAE' should be used in place of 'VAC' for vacation leave. Regular hours will not display correctly on the paycheck for an exempt adjustment, but the amount will be correct.
   
   Adjustments to paychecks with inactivated earnings codes (#4 under 'GENERAL') will error during the payroll process. The on-line system will not prevent agencies from requesting an adjustment to a paycheck containing an inactivated earnings code; however, the off-cycle payroll process will cause the paycheck to error. If an adjustment is required for these paychecks, complete the DA-180 form and send to Payroll Services for processing.
6. Taxes - Taxes will be calculated at the rates in effect as of the paycheck date for the taxable grosses on the adjustment check. Preliminary pay calculations should be thoroughly reviewed so that adjustments are kept to a minimum. Adjustments should be processed in a timely manner to ensure that the adjustment is processed in the same calendar year as the paycheck being adjusted.

SAM:JJM:LK

DATE:	November 19, 1998
SUBJECT:	New Tables for State Withholding Tax for 1999
EFFECTIVE DATE:	January 1, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New State Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 1999

The Kansas Department of Revenue has issued new percentage tables for computing the state withholding tax deductions effective for all paychecks issued on or after January 1, 1999. The standard deduction for one withholding allowance is changing to $2250.00 per year in calendar year 1999.

The attached tables have been prepared for use in computing all state withholding tax payments for wages paid on or after January 1, 1999. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.

At this time, Payroll Services has not been notified of any changes in the federal income tax withholding or earned income credit tables most recently issued in Accounts and Reports Information Circulars No. 98-P-011 and 98-P012 dated November 26, 1997. Any changes which may occur to the tables will be issued in a separate informational circular when the information is available.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents Institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.

SAM:JJM:EB
Attachment (pdf)

DATE:	December 8, 1998
SUBJECT:	New Tables for Federal Withholding Tax for 1999
EFFECTIVE DATE:	January 1, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 1999

The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 1999. In addition, the standard deduction for one withholding allowance changes to $2,750.00 per year in calendar year 1999.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 1999. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount. Please refer to Division of Accounts and Reports Informational Circular No. 99-P-013, issued November 19, 1998 for the state withholding tax formula.

IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 1998 must file a new W-4 form for calendar year 1999 if they wish to continue their exempt status.

Employees may be eligible for the withholding tax exempt status if the following criteria are met:

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.

Additionally, IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit, for income earned in the United States, to file a new 8233 form annually. Employees who claimed a non-resident alien exempt status in calendar year 1998 must file a new 8233 form for calendar year 1999 if they wish to continue their non-resident alien exempt status.

The Department of Administration will be updating the SHARP federal and state tax data records on December 21, 1998, for all employees currently claiming exemption from withholding; the tax data record updates will be effective January 1, 1999. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exemption from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exemption from withholding in 1999. The new tax data row should be added effective January 2, 1999. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.

A new-effective dated row will also be added in the SHARP federal tax data records on December 21, 1998 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 1999. The new tax data row will be dated January 2, 1999. Payroll Services will update the 8233 indicator on the tax data records once a form for calendar year 1999 has been submitted.

The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose withholding tax status was updated on December 21, 1998. The listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.

SAM:JJM:EB
Attachment (pdf)

DATE:	December 9, 1998
SUBJECT:	New Tables for Earned Income Credit for 1999
EFFECTIVE DATE:	January 1, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 1999

The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 1999. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 1999. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.

The Internal Revenue Service has released the 1999 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 1999 Form W-5 is attached; the 1998 Form W-5 expires on December 31, 1998. The new form must be filed with the employer before advance 1999 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. Advance EIC qualifiers must have at least one qualifying child and expect that 1999 earned and adjusted gross income will each be less than $26,928 (include spouses' income if filing jointly), in addition to meeting other criteria. Employees cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income) for 1999. A nonresident alien may not claim the EIC for 1999 unless married to a U.S. citizen and elects to be taxed as a resident alien for all of 1999.

There are two employee status categories that can effect the amount of advance EIC payments: (a) single or married without spouse filing certificate, and (b) married with both spouses filing certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments. When updating the employee's EIC status in SHARP, please verify that the federal tax data record correctly reflects the employee's status as shown on the completed Form W-5.

The Department of Administration will be updating the existing SHARP federal tax data records on December 21, 1998, for all employees currently claiming the EIC to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates will be effective January 1, 1999. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 1999; paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 1999. The new tax data row should be added effective January 2, 1999. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.

The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose EIC status was updated in SHARP on December 21, 1998. The listing will include department, employee ID, name, SSN, and EIC exempt status.

The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regents institutions are responsible for implementing the new EIC rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.

SAM:JJM:EB
Attachment (pdf)

DATE:	December 23, 1998
SUBJECT:	Paycheck Adjustments
EFFECTIVE DATE:	Immediately
CONTACT:	Joyce Dickerson	(785) 296-3979
APPROVAL:
SUMMARY:	Processing Paycheck Adjustments for Paychecks Which Contain an FSA Deduction and the Original Paycheck was Issued in a Previous Calendar Year

Effective with the implementation of SHARP v7.0 in October, 1998, bi-weekly deduction amounts are no longer maintained for Flexible Spending Account (FSA) deductions. Instead, FSA deductions are calculated by subtracting the year-to-date FSA deduction amount from the employee's annual pledge amount and then dividing by the number of payroll periods remaining in the calendar year (including the payroll period being processed). This change, coupled with the fact that all payroll adjustments are treated as current year activity, means that agencies will need to follow specific procedures in order to accurately process a paycheck adjustment when the original paycheck was issued in a previous calendar year and the paycheck contains an FSA deduction.

For paycheck adjustments, the off-cycle payroll process will determine which paycheck deductions to calculate based on the earnings end date of the paycheck being adjusted. In the case of FSA deductions, the off-cycle will select the maximum effective-dated FSA benefit information which is less than or equal to the earnings end date on the paycheck being adjusted. The 'Annual Pledge' and 'Contributions YTD' from this effective-dated row will be used in calculating the FSA deduction for the paycheck adjustment; however, the number of payroll periods remaining in the calendar year will be based on the payroll period in which the adjustment is being processed.

To illustrate:

EXAMPLE

On-cycle paycheck #123456 was originally issued on May 15, 1998 for an FLSA nonexempt employee for the payroll period ending 05/02/98; the paycheck is for the earnings periods 4/19/98 through 4/25/98 and 4/26/98 through 5/02/98. There are 17 payroll periods remaining in the calendar year (including the period ending 05/02/98) at the time the on-cycle is calculated. The employee is enrolled in FSA benefits; the employee's current FSA row is for coverage effective 01/01/98 and reflects the following information: annual pledge amount = $2600.00 and contributions YTD = $900.00. The FSA amount calculated on paycheck #123456 is $100.00

In February 1999, the agency realizes the paycheck needs to be adjusted due to shift differential being underreported for the employee for the payroll period ending 05/02/98. The FSA row for the coverage period effective 01/01/98 now reflects the following information: annual pledge amount = $2600.00 and contributions YTD = $2000.00. The agency requests a paycheck adjustment for paycheck #123456 in the second off-cycle for the payroll period ending 02/06/99; there are 23 payroll periods remaining in calendar year 1999 (including the period ending 02/06/99). The off-cycle will calculate the FSA deduction for the adjustment check as follows: ($2600 - 2000) / 23 = $26.09. This adjustment will result in an FSA refund of $73.91 to the employee. If the contributions YTD had been equal to $2600.00 (ie, the annual pledge amount), the refund would have been for $100.00.

To prevent erroneous FSA refund/arrearages from occurring on paycheck adjustments which are processed in calendar year 1999 for paychecks issued prior to 1999 which also contain an FSA deduction, the following procedures should be followed:

1. Prior to requesting the paycheck adjustment on-line, the agency should contact the Benefits Unit in the Division of Personnel Services and request that a deduction override amount be entered on the appropriate FSA benefit row for the employee. The override amount should be for the amount deducted on the original paycheck (in the example above, the override amount would be $100.00).
2. Once the override amount has been entered, the agency should enter the paycheck adjustment request.
3. After the off-cycle has been generated, verify that the adjustment processed correctly.

DATE:	January 7, 1999
SUBJECT:	Visa Permit Record on Regents' Inbound Management Reporting Interface
EFFECTIVE DATE:	February 1, 1999
CONTACT:	Nancy Ruoff	(785) 296-5369
APPROVAL:
SUMMARY:	Add/Change Capability for Visa Permit Record on Regents' Inbound Management Reporting Interface

A field has been added to the Visa Permit Record on the Regents inbound management reporting interface (MRI) to allow for the designation of the record as an Add (New Record) or Change (Change existing record). The valid values are 'A' (Add) or 'C' (Change). A copy of the updated MRI layout is attached to this circular; the Visa Permit Record is located on page 12 of the layout and is the only record being changed at this time.

As the Visa Permit Data is not an effective dated record, the 'Add' capability should only be utilized if there is no existing Visa Permit record in SHARP for the employee. The 'Change' capability should be used to make a change to an employee's existing Visa Permit Data record. The new file layout will go into effect for all Regent MRIs submitted for processing on or after February 1, 1999.

Any questions regarding this information should be directed to Nancy Ruoff in the Payroll Services Section at (785) 296-5369.

SAM:NR
Attachment (.pdf)

DATE:	January 29, 1999
SUBJECT:	Non-Resident Alien Earnings
EFFECTIVE DATE:	Immediately
CONTACT:	Nancy Ruoff	(785) 296-5369
APPROVAL:
SUMMARY:	Clarification on Payroll Issues for Regents' Payroll System Agencies Reporting Earnings for Non-Resident Alien Employees

Effective with the implementation of SHARP v7.0 in October, 1998, Non-Resident Alien employees and 1042 earnings balances are maintained utilizing as 'vanilla' an approach to PeopleSoft as possible. Following is a clarification of certain issues that have been addressed since the implementation of SHARP v7.0.

• Earnings for Non-Resident Alien employees should be submitted by Regents institutions using earnings codes NR4, NR5, NF4, or NF5. SHARP evaluates the employee's current 1042 balance, tax treaty limit, and current NR or NF earnings to determine the amount of earnings to be updated to 1042 balances and/or W2 balances. Once an employee has reached the 1042 tax treaty maximum eligible earnings limit for the year, the system will automatically begin updating W2 balances.
• PeopleSoft v7.0 does not evaluate maximum presence limits for Non-Resident Alien employees. Regents institutions are responsible for determining when a Non-Resident Alien employee meets the maximum presence limit. Once an employee meets the maximum presence limit, the employee is no longer eligible for NR4, NR5, NF4, or NF5 earnings and all future earnings should be reported using REG (or another valid earnings codes). An employee's Special_FWT_Status must remain as an 'A' (Non-Resident Alien) on the maximum effective dated Fed Tax Data row for any year in which they have 1042 earnings. After an employee meets the maximum presence limit, the employee's Special_FWT_Status should be set to 'N' (None) for subsequent years.
• It continues to be the responsibility of the Regents institutions to correctly determine the applicability of a tax treaty for any income in question and to inform the Department of Administration of any changes to the tax treaty table. Many countries have multiple treaty IDs on the tax treaty table to identify various income code/income limit/payer of income combinations. It is the responsibility of the Regents institutions to gather all of the necessary information to make the correct determination of tax exemption and treaty ID. Regents institutions should review the treaty IDs assigned to employees on a regular basis to insure the correct treaty ID is in use.
• Non-Resident Alien employee information for country, income code, and year-to-date 1042 taxable gross is provided on the Regent's Outbound Management Reporting File (start position 5951). Regents institutions should review year-to-date 1042 taxable gross balances on a regular basis throughout the year and forward any questions regarding differences to Sunni Zentner in the Payroll Services Section at (785) 296-7058.

SAM:JJM:NR

DATE:	March 8, 1999
SUBJECT:	VTSA Company Changes
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Tax Sheltered Annuity Company Name Change

The Kansas Board of Regents has been notified that First American National Securities, no. 828, has changed its name to PFS Investments Inc. All other information about the company, including mailing address, remains unchanged.

Payroll Services will make the necessary modifications to the SHARP system to reflect this company name change. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.

SAM:JJM:EB

DATE:	March 16, 1999
SUBJECT:	Change in Organization Dues Deduction Amount
EFFECTIVE DATE:	April 4, 1999
CONTACT:	Janice Wolfley	(785) 296-3699
APPROVAL:
SUMMARY:	Organization Dues Changes for SEAK Organization 050

Please be advised that the regular bi-weekly organization dues for members of the State Employees Association of Kansas, deduction code 'ORG050', will be changing to $4.50 per biweekly period effective with the payroll period beginning April 4, 1999 and ending April 17, 1999 paid April 30, 1999.

The Division of Accounts and Reports, Payroll Services team will make the necessary updates to the SHARP system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after April 30, 1999.

SAM:JJM:NR

DATE:	June 7, 1999
SUBJECT:	Addition of New Earnings Codes
EFFECTIVE DATE:	Payroll period beginning June 13, 1999
CONTACT:	Payroll Services	(785) 296-3146	(Roger.Basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of New Earnings Codes for FY 2000

Executive Directive 99-279 establishes two 5% pay differentials (Earnings Codes PD2 and PD3) for Juvenile Corrections Officers I with the Juvenile Justice Authority. The PD2 earnings code is to be used when the Juvenile Corrections Officers I is performing lead worker duties during the absence of a supervisor. The PD3 earnings code is to be used when the Juvenile Corrections Officer I is performing duties in a specialty unit that deals with acute behavior, chronic behavior, or psychiatric problems.

The earnings code will be displayed as follows:

Each of the above earnings codes are effective with the payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. Earnings codes 'PD2' and 'PD3' are established for use only by the following agencies: Atchison Juvenile Correctional Facility (355), Beloit Juvenile Correctional Facility (325), Larned Juvenile Correctional Facility (412), and the Topeka Juvenile Correctional Facility (319). Juvenile Corrections Officers I who satisfy the criteria for both pay differentials can only receive one of the differentials; they are not eligible for both.

SAM:JJM:RDB

DATE:	June 9, 1999
SUBJECT:	Addition of New Earnings Codes
EFFECTIVE DATE:	Payroll Period beginning June 13, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Addition of New Earnings Codes for FY 2000

Legislators will be eligible to receive a State Per Diem rate of $74.58 in fiscal year 2000. Legislators serving in the Legislature have the option to receive the new daily rate. Legislators who serve as board members for a state agency may also receive the increased rate. The following two earnings codes have been added to SHaRP to reflect the increased rate:
 

Each of the above earnings codes is effective with the payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. Earning code 'LG6' should be used only by agency 428.

SAM:JJM:RDB

DATE:	June 7, 1999
SUBJECT:	Change in Uniform Premiums of Taxable Group Life Insurance
EFFECTIVE DATE:	Effective Pay Period Beginning June 13, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New Uniform Premium Rates Used To Calculate the Cost of Group-Term Life Insurance Coverage In Excess of $50,000

As provided under Internal Revenue Code Section 79 the cost of group term life insurance coverage in excess of $50,000 provided to an employee by an employer is required to be included in employee federal and state taxable gross income. Employees covered by KPERS death and disability insurance being paid more than $1282.05 per biweekly pay cycle (based on 26 pay dates) are subject to the provisions of Code Section 79. Per recent changes in IRC 79 regulations the IRS Uniform Premium Table I will be modified to include a 25 to 29 age category and reduced uniform premiums for all other age groups. Effective with the pay period beginning June 13, 1999, paid July 9, 1999, the new table values will be as follows:
 

The calculation to determine an employee's age is based on the employee's attained age on the last day of the taxable year.

Board of Regents' Institutions operating under the Regents' Payroll system are responsible for implementing this change in their Payroll Systems effective with the pay period beginning June 13, 1999 paid July 9, 1999.

SAM:JJM:eh

DATE:	June 23, 1999
SUBJECT:	KPAY710 - Department Budget Earnings Report
EFFECTIVE DATE:	June 28, 1999
CONTACT:	Steve Banning	(785) 296-7059
APPROVAL:
SUMMARY:	Department Budget Earnings Report will be available to agencies beginning June 28, 1999

Beginning June 28, 1999, each payroll period on-line agencies can expect to see a KPAY710 Department Budget Earnings Report in their agency mailboxes on the MVS and paper user agencies will be sent a hard copy of the report. The KPAY710 report lists, by department, the funding information contained in the current effective-dated row in the department budget earnings table for your agency. The data elements contained on the report include: department, budget level indicator (i.e., position, position pool), effective date, description, account code, effective status, account (funding agency), fund, org code (index), program (PCA), earnings code (if applicable), sequence #, percent or amount, and agency use.

The KPAY710 will be added to the job schedule and should be available in the agency mailboxes on the workday following the on-cycle confirm date (i.e., usually the Monday of pay date week).

SAM:JJM:eh