FY 2001

DATE:	July 5, 2000
SUBJECT:	Changes to SHARP Savings Bond Process
EFFECTIVE DATE:	July 1, 2000
CONTACT:	Roger Basinger	(785) 296-5387	roger.basinger@da.state.ks.us
APPROVAL:
SUMMARY:	Changes to SHARP Savings Bond Process

An employees Bond Specification Record is comprised of a bond denomination field, a bond owner field, other registrant type field (co-owner/beneficiary), and co-owner/beneficiary ID field. When a change is made to any of these fields, a new bond priority is created. Currently, if a balance remains with the old bond priority, the balance has to be identified and moved through a manual process to the new bond priority. To automate this process, SHARP agency personnel making changes to an employees Bond Specification Record after June 30, 2000 will encounter a new 'pop-up message if the employee has a current balance not equal to zero. This message will state that a balance exists for the employees old bond data combination and will automatically be applied to the new bond data combination being entered. Agency personnel should click OK to complete the record save.

Transactions will be written to the Savings Bond Activity Log showing the transfer of balances from the old bond combination to the new bond combination. If the employee does not want the balance transferred forward to the new bond combination to be used towards the purchase of a bond, agency personnel can request a refund through the regular refund process.

Because of these changes to this process, changes to the bond specification records should not be future-dated further than two weeks.

For Regent Institutions, this process will be triggered automatically when changes are made to the Bond Specification Records through the Regents Benefits Interface.

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DATE:	July 11, 2000
SUBJECT:	Addition of New Earnings Codes
EFFECTIVE DATE:	Payroll Period beginning July 23, 2000
CONTACT:	Roger Basinger	(785) 296-5387	roger.basinger@da.state.ks.us
APPROVAL:
SUMMARY:	Addition of New Earnings Codes for FY 2001

Earnings Codes 'BDM' and 'LGP' have been added to SHARP and will be effective for the payroll period beginning July 23, 2000 and ending August 5, 2000 paid August 18, 2000. The descriptions of the new codes are as follows: 
 

Please note that earnings code 'LGP' may only be used by agencies 422 and 428.

With the addition of earnings codes 'BDM' and 'LGP', earnings codes 'BD1-BD9', 'BDS', 'CSB', 'LG1-LG7', and 'LGD' are not to be used after July 23, 2000 except for processing adjustments for daily pay for payroll periods prior to the period beginning July 23, 2000.

Earnings codes 'BDM' and 'LGP' are daily pay codes, so agencies should continue to report 1' in Time and Leave for each day worked by a board member or legislator. Please note that with the addition of these earnings codes, that board member's and legislator's daily rate of pay will be read from the their job record rather than the earnings table. Agencies will be responsible for updating the hourly rate field when regulations or statutes change. This change will provide consistency statewide in board members or legislators daily pay, will eliminate the creation of new earnings codes when daily rates of pay change, and will help ensure that compensation rates on the job records are monitored and kept current.

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The Kansas Learning Quest Education Savings Program became available July 1, 2000 and is administered by the Kansas State Treasurer's Office. American Century Investment Company was selected as the program manager and is responsible for managing the investments.

House Bill 2655 authorized a payroll deduction for the Learning Quest program to become effective in Fiscal Year 2001. The Learning Quest bi-weekly payroll deduction will be effective for the payroll period beginning July 23, 2000 and ending August 5, 2000 paid August 18, 2000. The Learning Quest deduction will be taken on an after tax basis and will have the deduction code of 'LEARNQ'. The new deduction will be displayed on paycheck stubs/advices and the Regent's warrant registers as 'LEARN QUEST'.

Payroll deductions for the Learning Quest program will be remitted to American Century on payday. American Century should also post the payroll deductions to the individual employee accounts on payday.

State of Kansas employees interested in participating in the Learning Quest program through payroll deduction should complete the following steps:

Call 1-800-579-2203 or visit www.learningquestsavings.com to request an enrollment packet.

• Advise the representative they are a State of Kansas employee interested in participating in the payroll deduction program.
• An enrollment packet will then be sent to the employee's home with the payroll deduction forms. The payroll deduction forms need to be completed and returned to American Century.
• After enrollment is approved by American Century, a confirmation letter will be sent to the employee.
• If the employee elects a payroll deduction, the employee will give the confirmation letter to the agency's personnel/payroll officer for entry into the payroll system. Agency personnel are reminded that no payroll deduction should be set up for a Learning Quest Account without the confirmation letter from American Century to the employee.

SHARP on-line agencies will enter enrollment data for Learning Quest through the General Deduction Data panel using the following path: Go, Compensate Employees, Maintain Payroll Data U.S., Use, General Deduction Data, Update/Display All. SHARP paper agencies should complete an 'Employee Data Sheet' adding the deduction for the employee and submit the 'Employee Data Sheet' to the Division of Personnel Services. The Division of Personnel Services is currently revising the 'Employee Data Sheet' to enable entry of the Learning Quest deduction. SHARP paper agencies should enter the 'LEARNQ' deduction code and the appropriate deduction amount on the 'Employee Data Sheet' in the section entitled 'Other General Deductions'. Note: the deduction calculation routine for the 'LEARNQ' deduction should be equal to 'flat amount'.

The Learning Quest bi-weekly deduction will become effective the next payroll period following the date the confirmation letter is signed, and will remain in effect until written authorization is received to cancel or change the deduction, or until termination of employment.

Index code 9762 has been added to the STARS system for each of the Regent's payroll funds to record the receipt of the deduction by the individual Regent's institutions.

The Division of Accounts and Reports, Payroll Systems Team will add the Learning Quest deduction to the SHARP payroll system. Regent's institutions are responsible for ensuring that the Learning Quest deduction is available on their individual systems for paychecks issued on or after August 18, 2000.

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DATE:	August 30, 2000
SUBJECT:	Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30
EFFECTIVE DATE:	Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000
CONTACT:	Roger Basinger	(785)296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University-Kansas National Education Association, deduction code 'ORG030' will change from $20.85 to $21.40 per bi-weekly payroll period. The new rate will become effective for the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHaRP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 29, 2000.

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DATE:	August 30, 2000
SUBJECT:	Increased Parking Fees for the Wichita State Office Building
EFFECTIVE DATE:	Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Increased Parking Fees for the Wichita State Office Building - Payroll Deduction Codes PKW01C and PKW02A

Due to the increase in parking fees for the Wichita State Office Building, payroll deduction codes PKW01C (garage parking) and PKW02A (surface parking) are being increased to $9.70 and $5.08, respectfully, per bi-weekly payroll period. This increase will become effective for the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems and is effective for paychecks issued on or after September 29, 2000.

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DATE:	August 31, 2000
SUBJECT:	Addition of New Holiday Credit Earning Codes HOB, HOC, HON and HOO
EFFECTIVE DATE:	Payroll Period beginning September 3, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of New Holiday Credit Earnings Codes

Kansas Administrative Regulation 1-5-24 was amended to allow an official state holiday to be counted as time worked for employees in non-exempt positions when all three of the following conditions are met.

1. The employee is asked to report to work in order to respond to a building, highway or public safety emergency, as determined by the appointing authority.
2. This work is performed outside the employee's normal work schedule for the workweek or work period that includes the official state holiday.
3. The appointing authority authorizes inclusion of that official state holiday in calculating the time worked by the employee. 

The appointing authority shall also notify the Director of Personnel Services, in writing, of both the nature of the emergency, and the name and position number of each employee for whom the state holiday will be counted as time worked.

To facilitate the change to K.A.R. 1-5-24, the following four holiday credit earnings codes have been added to SHARP:

All these codes count towards FLSA hours worked and become effective with the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000. For specific information on the correct usage of the new codes, please consult the SHARP Customer Service website ( SHARP Website), or the SHARP Message Panel (Message 406, dated August 30, 2000), or either Kraig Knowlton (785) 296-1082 or Brent Smith (785) 296-1432 with the Division of Personnel Services.

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new holiday credit earnings codes to the SHARP payroll system. Regent's institutions are responsible for ensuring the holiday credit earnings codes are available on their individual systems for paychecks issued on or after September 29, 2000.

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DATE:	September 6, 2000
SUBJECT:	Deletions from the Approved List of Providers for Voluntary Tax Sheltered Annuities
EFFECTIVE DATE:	Payroll Period Beginning August 20, 2000 and Ending September 2, 2000, Paid September 15, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Request From the Kansas Board of Regents to Delete Six Companies from the Approved List of Providers for Voluntary Tax Sheltered Annuities

The Kansas Board of Regents has requested removal of the following six companies from the list of 'approved' providers for Voluntary Tax Sheltered Annuities:

These VTSA companies had no current subscribers and were deleted with an effective date of August 20, 2000 in the SHARP system.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.

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DATE:	September 11, 2000
SUBJECT:	Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Name Change

Massachusetts General Life Insurance Company (VTSA #470) has changed its name to Conseco Life Insurance Company. Remittances should be made payable to Conseco Life Insurance Company and should be sent to the following address:

11815 North Pennsylvania
Box 1963
Carmel, IN 46032-4963

This company name change has been completed in the SHARP payroll system. The vendor table in STARS has also been updated to reflect the change in name and mailing address.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.

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DATE:	October 16, 2000
SUBJECT:	Key Payroll Processing Dates in November 2000
EFFECTIVE DATE:	November, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Payroll processing schedule changes due to the November 2000 holidays.

Friday, November 10, 2000 (Veterans Day Observed), Thursday, November 23, 2000 and Friday, November 24, 2000 (Thanksgiving Holiday) are designated holidays for state service in 2000. Due to the Veterans Day holiday, the pay date for the payroll period ending October 28, 2000 will be Thursday, November 9, 2000. Direct deposit advices for this pay date will be mailed on Tuesday, November 7, 2000; paychecks will be mailed Wednesday, November 8, 2000. Because of the Thanksgiving holiday, the pay date for the payroll period ending November 11, 2000 will be Wednesday, November 22, 2000. Direct deposit advices for this pay date will be mailed Monday, November 20, 2000; paychecks will be mailed Tuesday, November 21, 2000.

Due to the holidays in November, the following variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing date changes, which are occurring on a different day of the week than normally scheduled.

Thursday, November 2, 2000

Regents' on-cycle payroll files for the period ending October 28, 2000 are due to the Department of Administration by 6:00 AM on November 2, 2000 to ensure timely issuance of payroll on November 9, 2000 (These files would normally be due Friday).

Thursday, November 9, 2000

Time and leave interface agencies must have time and leave files for the period ending November 11, 2000 submitted to the Department of Administration for processing by 5:00 PM on November 9, 2000 (These files would normally be due Monday). Paper agencies time and leave documents are due to Payroll Services by 5:00 PM on November 9, 2000.

Regents' Run C off-cycle payroll files for the period ending October 28, 2000 must be received by the Department of Administration by 5:00 PM on November 9, 2000 in order to be processed on Monday, November 13, 2000.

Monday, November 13, 2000

Pay sheets for the on-cycle payroll for the period ending November 11, 2000 will be created on November 13, 2000 (Pay sheets would normally be created on Tuesday). All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 5:00 PM on November 13, 2000 in order to be reflected on the paysheets for this period. The first on-cycle preliminary pay calculation for the period ending November 11, 2000 will also occur November 13, 2000; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 5:00 PM.

Please note that there will only be two SHARP on-cycle preliminary payroll calculations for the period ending November 11, 2000.

The Run C off-cycle for the period ending October 28, 2000 will be processed November 13, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.

Tuesday, November 14, 2000

The second on-cycle preliminary pay calculation for the period ending November 11, 2000 will occur November 14, 2000.

The general ledger extract for the payroll period ending October 28, 2000 will also be created on this date.

Wednesday, November 15, 2000

Final pay confirmation for the on-cycle payroll for the period ending November 11, 2000 will occur November 15, 2000 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 5:00 PM on November 15, 2000 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 5:00 PM on November 15, 2000 in order to be reflected in the final paycheck created for the employee.

Regents' on-cycle payroll files for the period ending November 11, 2000 are due to the Department of Administration by 6:00 AM on November 15, 2000 to ensure timely issuance of the payroll on November 22, 2000.

Wednesday, November 15, 2000 Continued

Please note that an off-cycle will not be available to process late paychecks with the same pay date as the on-cycle payroll. The earliest date that an employee can receive an off-cycle check for the period ending November 11, 2000 is Monday, November 27, 2000, providing the necessary supplemental or adjustment run control has been entered by 5:00 PM on Monday, November 20, 2000.

Thursday, November 16, 2000

On-line access to SHARP for all users will not be available due to batch processing which must occur to ensure timely issuance of payroll on November 22, 2000.

Friday, November 17, 2000

The final SHARP on-cycle payroll reports, with the exception of the KPAYWAGE, for the period ending November 11, 2000 will be available in the agency directories on the MVS (for on-line agencies) and will be distributed (for paper-user agencies) on November 17, 2000.

Regents' Run A off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 17, 2000 in order to be processed on Monday, November 20, 2000.

Monday, November 20, 2000

KPAYWAGE reports for the on-cycle for the period ending November 11, 2000 will be available in the agency directories (for on-line agencies) and will be distributed (for paper-user agencies) on November 20, 2000.

The Run A off-cycle for the period ending November 11, 2000 will be processed November 20, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and/or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated Monday, November 27, 2000 rather than the SHARP on-cycle pay date of Wednesday, November 22, 2000.

Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 11, 2000 will be posted to STARS during Monday night's STARS batch processing cycle.

Tuesday, November 21, 2000

Regents' Run B off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 21, 2000 in order to be processed on Wednesday, November 22, 2000.

Wednesday, November 22, 2000

Payday for the payroll period ending November 11, 2000.

The Run B off-cycle for the period ending November 11, 2000 will be processed November 22, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle.

Paychecks for the Run B off-cycle will be dated November 29, 2000.

Regents' Run C off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 22, 2000 in order to be processed on Monday, November 27, 2000.

Monday, November 27, 2000

The Run C off-cycle for the period ending November 11, 2000 will be processed November 27, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.

Paychecks for the Run C off-cycle will be dated November 30, 2000.

Attached is a calendar for the month of November 2000, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

Please note the changes to the payroll processing dates and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site SHARP Website. On-line users should review the SHARP message panel or web site daily to determine if new messages have been added. Paper-users will be notified of any changes to these dates via telephone.

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Attachment:  November, 2000 Calendar (.pdf format)

DATE:	November 22, 2000
SUBJECT:	Parking Compensation Reduction Program
EFFECTIVE DATE:	Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001
CONTACT:	Elaine Harris	(785) 296-7458	(elaine.harris@da.state.ks.us)
APPROVAL:
SUMMARY:	Pre-Tax Parking Payroll Deduction (Revised to Include Impact on UCI gross)

The State of Kansas Parking Compensation Reduction Program established pursuant to Section 132 of the Internal Revenue Code and K.S.A. 75-5535 was approved by the Secretary of Administration on July 28, 2000. The purpose of the Program is to provide a parking compensation reduction program that results in payment of parking fees by state employees for state owned or leased parking facilities (including the Signature Building) on a pre-tax basis. The Program authorizes employees to participate in a pre-tax parking payroll deduction where the amount of the parking deduction is not included in gross income. As a result, the employee does not pay employment taxes for federal withholding, state withholding, OASDI, and Medicare on the compensation reduction amount or parking fee and the unemployment compensation insurance (UCI) gross will be reduced by the compensation reduction amount or parking fee.

In addition to parking administered by the Division of Facilities Management (DFM) or leased by the Department of Administration, other state owned or leased parking facilities may be included in the Program. Regents Institutions and other state agencies interested in having their owned or leased parking facilities in the Program should address inquiries to DFM Parking Administration and submit documentation showing the ownership or lease of the parking facilities desired for inclusion in the Program. The Program requires payroll deductions pursuant to K.S.A. 75-5535. Parking deductions pursuant to state agency payroll deduction plans authorized by K.S.A. 75-5536 do not qualify for the Program.

This Program will be administered in accordance with Section 132 of the Internal Revenue Code, and any regulations promulgated thereunder, and K.S.A. 75-5535, by the Division of Facilities Management (DFM) with the advice and approval of the Director of Accounts and Reports. Savings resulting from the reduction in employer paid FICA contributions will be paid to the Department of Administration for administration of the Program. Except for parking at Board of Regents institutions, the employer contribution deduction will be distributed 4.65% for Division of Facilities Management and 3.0% for the Division of Accounts and Reports. For parking administered by Board of Regents institutions, the employer contribution will be distributed 1.0% for the Regents institution, 2.5% for the Division of Accounts and Reports and 4.15% for the Division of Facilities Management.

The Program will utilize the "negative election permitted" approach. This means that employees who have parking payroll deductions in place under K.S.A. 75-5535 will automatically be enrolled in the pretax program unless the employee elects not to participate. DFM Parking Administration is responsible for notifying such employees of the opportunity to not participate in the Program. Elections not to participate shall be effective at the beginning of the next payroll period following the date the election not to participate is received by DFM Parking Administration or received by the affected Regents institution parking administration office in the case of Regents parking.

The salary reduction is a fixed dollar amount as stated on the signed parking contract for the parking facility. In the event the rates change, advanced notice will be given to affected employees who will have the option to elect not to participate. The Program will be provided on a bi-weekly basis that coincides with payroll periods and will be automatically renewed for subsequent periods until a timely election not to participate is received. Compensation reduction amounts are not refundable unless a timely election not to participate is received.

SHARP Agencies

• The following new general deduction codes will be established in SHARP to implement parking on a pre-tax basis for SHARP employees:

• The following new general deduction codes will be established in SHARP to implement the employer contribution for pre-tax parking for SHARP employees:

Conversion to New Codes - General deduction records for all SHARP employees currently enrolled in parking will be updated with the appropriate deduction end date and two new effective-dated rows with the new parking codes (employee and employer). The conversion to the new codes will occur in SHARP on December 18, 2000. All active SHARP employees with an existing parking deduction will be enrolled in the pre-tax parking program effective December 10, 2000.

• Future Maintenance - After the initial enrollments have been made in SHARP, the Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.
• The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.
• The attached spreadsheet outlines the new funding that will be used for the Program.

Regents Institutions

• The following new general deduction codes will be established in SHARP to implement parking deductions for Regents on a pre-tax basis:

• Regents should continue to use the 'AGYPAY' deduction code to collect parking fees from their employees on an after-tax basis in the following situations:
   
  • for those parking facilities which are not state owned or leased, or
  • for employees who elect NOT to participate in the pre-tax program for those lots that are state owned or leased.
• Only one pre-tax deduction code will be established for each participating Regents institution. Regents institutions having multiple parking lots with differing rates can establish additional pre-tax parking codes as needed in their payroll system. However, the codes should be 'rolled up' and reported on the Regents paydetail file using the appropriate pre-tax parking general deduction code assigned.
• A new general deduction code PPKADR will be established in SHARP to implement the employer contribution for pre-tax parking for Regents' employees.
• The attached spreadsheet outlines the new funding that will be used for the Program
• Regents institutions are responsible for ensuring these changes are reflected in their individual systems.

For questions about business process design or to submit a test file please contact Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.

Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.

Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.

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Attachment: SHARP Pre-Tax Parking Funding (.pdf format)

DATE:	December 7, 2000
SUBJECT:	New Tables for Federal Withholding Tax for 2001
EFFECTIVE DATE:	January 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 2001.

The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 2001. In addition, the standard deduction for one withholding allowance changes to $2900.00 per year in calendar year 2001.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 2001. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.

IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 2000 must file a new W-4 form for calendar year 2001 if they wish to continue their exempt status.

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

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 annually. Employees who claimed a non-resident alien exempt status in calendar year

2000 must file a new 8233 form for calendar year 2001 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.

The Department of Administration will be updating the SHaRP federal and state tax data records on December 18, 2000, for all employees currently claiming exempt from withholding; the tax data record updates will be effective January 1, 2001. On-line agencies must enter a new effective-dated row into SHaRP for employees who wish to claim exempt from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exempt from withholding in 2001. The new tax data row should be effective January 2, 2001. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.

A new-effective dated row will also be added in the SHaRP federal tax data records on December 18, 2000 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2000. The new tax data row will be dated January 1, 2001. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2001 has been submitted.

The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose withholding tax status was updated on December 18, 2000. This listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHaRP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.

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Attachment: SCHEDULE A (FEDERAL WITHHOLDING TAX) (.pdf)

DATE:	December 11, 2000
SUBJECT:	KPAY329 - No GHI Coverage Because No Paycheck Exists Report - SHARP Agencies Only
EFFECTIVE DATE:	Immediately
CONTACT:	Myrene Bears	(785) 296-5368	(myrene.bears@da.state.ks.us)
APPROVAL:
SUMMARY:	Division of Personnel Services, Benefits Administration, is now Responsible for the KPAY329, GHI Coverage Because No Paycheck Exists Report

Effective immediately Division of Personnel Services, Benefits Administration will be responsible for the administration and review of the KPAY329 No GHI Coverage Because No Paycheck Exists report. The report will continue to be distributed to SHARP agency mailboxes on the MVS with a hard copy going to SHARP paper user agencies. Until notified differently continue using Informational Circular 00-P-003, dated August 19, 1999 as a basis for review and processing adjustments from the KPAY329 report.

Questions concerning this Informational Circular should be directed to Myrene Bears, Payroll Services at (785) 296-5368: myrene.bears@da.state.ks.us.

Questions concerning the KPAY329 report should be directed to Phil Williams, DPS, Benefits Administration at (785) 296-2069: phil.williams@da.state.ks.us.

Questions concerning the processing of adjustments or personal reimbursements should be directed to Joyce Dickerson, Payroll Services at (785) 296-3979: joyce.dickerson@da.state.ks.us.

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DATE:	December 14, 2000
SUBJECT:	Parking Compensation Reduction Program (SHARP Agencies Only)
EFFECTIVE DATE:	Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001
CONTACT:	Myrene Bears	(785) 296-5368	(myrene.bears@da.state.ks.us)
APPROVAL:
SUMMARY:	Parking Compensation Payroll Deduction (Includes New Employer Codes, Lots Administered by 'Other Agencies' and After Tax Deductions)

As outlined in Informational Circular 01-P-015, the State of Kansas Parking Compensation Reduction Program has been expanded to include parking lots administered by other SHARP agencies. The additional employee and employer deduction codes for after tax and pre-tax options are shown below.

SHARP Agencies - Lots Administered by 'Other Agencies'

The general deduction codes shown below will be added to SHARP to implement after tax and pre-tax parking for the employees enrolled in lots that have been officially approved and will be administered by the following agencies:
 

Payroll Services will be requesting fund information from each of the above agencies so the monies can be distributed biweekly on the date of each on cycle. The agency is then responsible for any further distributions.

SHARP Agencies - Administrative Fees for all SHARP Agencies

The following employer deduction codes will be used in SHARP for DFM and 'other agency' administered lots with the intent to assign all employees with a parking deduction of the same amount (regardless of lot), to one administrative fee for pre-tax parking deductions. Note: these deduction codes replace the ones originally sent in Informational Circular 01-P-015.
 

• Future Maintenance - The Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.

• The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.

Questions about business process design may be directed to Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.

Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.

Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.

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DATE:	January 3, 2001
SUBJECT:	Addition of Payroll Deduction Code 'LTC'
EFFECTIVE DATE:	Payroll Period Beginning January 7, 2001 and Ending January 20, 2001, paid February 2, 2001.
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of New Payroll Deduction Code for the Kansas State Employees Long-Term Care Program

The monthly payroll deduction for the Kansas State Employee Long-Term Care Program as authorized by K.S.A. 75-6523 will become available with the payroll period beginning January 7, 2001. The Long-Term Care deduction will be taken on an after tax basis and will have the deduction code of 'LTC'. The new deduction will also be displayed on paycheck stubs/advices and the Regent's warrant registers as 'LTC'.

The Long-Term Care deduction will occur monthly on the first paycheck of the month. Deductions taken will be for coverage for the following month. For example, the deduction taken on the February 2, 2001 paycheck will be for the month of March 2001.

Hartford Life Insurance Company will be the provider of the Kansas State Employees Long-Term Care Program. State of Kansas employees currently enrolled in the Long-Term Care Program will be receiving a letter from Hartford's Long Term Care Group (LTCG) indicating that payroll deduction is available. Included with the letter from the LTCG will be a Payroll Deduction Authorization form. Interested employees may also contact Hartford at 1-877-463-9871 to request the authorization form.

Employees interested in electing the payroll deduction for the Long-Term Care Program need to complete the authorization form and return it to Hartford's Minneapolis Minnesota office. The LTCG will transmit the authorization form to the Division of Personnel Services (DPS) Benefit Unit, the first of the month following receipt of the Payroll Deduction Authorization form by LTCG. The authorization form will be accompanied by a listing of all individuals electing payroll deduction along with the amount to be deducted. The DPS Benefit Unit will verify eligibility, notify the employing agency of the payroll deduction, and enter the deduction into the SHARP system for SHARP agencies. The payroll deduction is effective the first day of the payroll period for the first paycheck of the month following transmission of the payroll deduction information to the Division of Personnel Services Benefits Unit for coverage effective the first of the month following the payroll. Regent's institutions are responsible for entering the deduction in their individual systems. The LTCG will send a confirmation statement to the participant to notify them of the payroll deduction amount and the effective date of the payroll deduction.

Employees wanting to change or cancel their participation in the Long-Term Care Program will need to contact Hartford's LTCG directly and complete the change or termination paperwork. The LTCG will then forward the change or termination information to DPS Benefit Unit. The Benefit Unit will enter the change or termination data into the SHARP system, and will notify the employing agency of the change or termination. Regent's institutions are responsible for entering the change or termination information into their individual systems. Any questions regarding the plan or deduction should be directed to either the Division of Personnel Services Benefit Unit at (785) 296-6280 or the Hartford's LTCG at 1-877-463-9871.

Please note that if the employee does not receive a paycheck or the employee paycheck is not large enough for the 'LTC' deduction to occur, the employee will be responsible for remitting premiums directly to Hartford in order for coverage to continue. Payroll adjustments will not be processed to collect past due premiums. This includes employees at Regents institutions who are on summer leave with benefits.

The following new Department of Administration Clearing Fund has been established for Long-Term Care: 173-00-9016 (fund) - 01 (fiscal year)-9110 (budget unit)-9763 (index code). In addition, index code 9763 has been added to the STARS system for each of the Regent's Payroll Funds to record the receipt of the deduction by the individual Regent's institutions. The Division of Accounts and Reports, Payroll Services Section will remit the monies to the LTCG for all agencies.

The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Long-Term Care deduction. Regent's institutions are responsible for ensuring that the Long-Term Care deduction is available on their individual systems. 

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DATE:	January 5, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Massachusetts Mutual Life Insurance Company (VTSA #444) has changed its premium payment address for the Panorama Annuity. Remittances should be made payable to MassMutual-Panorama and should be sent to the following address:

P. O. Box 92230
Chicago, IL 60675-2230

The vendor table in STARS has been updated to reflect the change in mailing address.

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DATE:	January 23, 2001
SUBJECT:	Elimination of Insurance Coverage Codes on Paycheck Stubs
EFFECTIVE DATE:	Payroll Period Beginning January 7, 2001 and Ending January 20, 2001, Paid February 2, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Elimination of Insurance Coverage Codes A, B and C Being Printed on Paycheck Stubs and Advices

As a result of a review of the insurance codes printed on the paycheck stubs and advices, the Insurance Coverage Codes A: Covered Workers Compensation Insurance, B: Covered Unemployment Compensation Insurance, and C: Covered Life and Disability Insurance will no longer be printed on paycheck stubs. The elimination of these codes on the paycheck stub is a print change only and does not affect the coverage provided or data entry into SHARP for these deductions. Elimination of these codes is a result of programming modifications needed to print accurate data and the continued policy to implement delivered PeopleSoft software without modifications.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees.

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DATE:	January 29, 2001
SUBJECT:	Addition of New Earnings Code
EFFECTIVE DATE:	Pay Period Beginning January 21, 2001 and Ending February 3, 2001, Paid February 16, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of Earnings Code 'S10'

Executive Directive 01-305 establishes a new pay premium of $1.00 per hour for Kansas Department of Transportation employees who perform emergency snow removal. The earnings code for this pay premium is 'S10' and is only available for use by the Kansas Department of Transportation (agency 276). The new earnings code adds to gross pay and will be displayed as follows:

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new earnings code to the SHARP payroll system. Regent's institutions are responsible for ensuring the new earnings code is available on their individual systems.

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DATE:	February 27, 2001
SUBJECT:	Workers Compensation Insurance Rates
EFFECTIVE DATE:	Pay Period Beginning March 4, 2001 and Ending March 17, 2001 paid March 30, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Change from a uniform flat rate to an agency experience rate for Workers Compensation Insurance.

Senate Bill 219 amended K.S.A. 44-575 to establish Workers Compensation Insurance (WCI) rates for state agencies based on the accidental injury and occupational disease experience of a state agency rather than the current practice of a uniform rate for all state agencies. The establishment of individual state agency rates will become effective fiscal year 2002. For fiscal year 2002, the state agency rate will be calculated by using one-half of the old uniform rate and one-half of the agency experience rate. For fiscal year 2003, the rate will be the experience rate based on a three year rolling average.

New Deduction Codes - With the establishment of individual WCI rates for each state agency, the deduction codes in Attachment A have been added to SHARP.

Conversion to New Codes - The conversion to the new WCI deduction codes will occur in SHARP on Monday, March 12, 2001 with an effective date of March 4, 2001. Please note that this is only a change to the new codes, the new rates are not effective until July 1, 2001. The conversion process will set-up the new WCI deduction codes for all active employees in SHARP where the employee record number is equal to the benefit record number. Please note that if an employee is working concurrent positions in two different agencies and both employee record numbers have the the same benefit record number, the employee will only be enrolled in one agency specific WCI deduction code (the agency where the employee record number equals the benefit record number). For example, employee A is working concurrently for agencies 173 and 276. The employee record number for agency 173 is '0' and the employee record number for agency 276 is '1'. Both employee record numbers are tied to benefit record number '0'. In this case, the employee will be set up with the deduction code of WCI173. The employee will receive one paycheck for all wages (from both agency 173 and 276) and WCI for all wages will be calculated using the rate for agency 173. The WCI charged to each agency will be prorated by the employee's agency wage to employee's total gross wages. For example, if the employee in the above example had $1500.00 of total wages for the period ($900.00 agency 173 and $600.00 agency 276) and WCI rate charge of $14.00, $8.40 will be charged to agency 173 (60%) and $5.60 will be charged to agency 276 (40%).

Future Maintenance - The SHARP batch process which runs every night to enroll new hires and re-hires into the State Leave and WCI with the proper rate, has been modified to review all job actions to determine if the agency has enrolled the employee in the proper WCI code. SHARP will verify that the employee record number is equal to the employee benefit number in determining if the correct WCI code was used. If the agency has not enrolled the employee into the proper WCI code, the batch process to enroll the employee into the proper WCI code will insert a new row with the correct WCI code for the employee with an effective date equal to the job action necessitating the change (hire, rehire, transfer, ect.).

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes to the SHARP payroll system. Regent's institutions are responsible for ensuring the new earnings codes are available on their individual systems.

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Attachment: WCI Codes By Agency Number

DATE:	March 15, 2001
SUBJECT:	Addition of Earnings Codes DNE and DON
EFFECTIVE DATE:	Pay Period Beginning March 4, 2001 and Ending March 17, 2001 paid March 30, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of Earnings Codes DNE and DON for the Kansas Donor Leave Program.

Executive Order 2001-02 establishes the Kansas Donor Leave Program for state employees within the executive branch of state government and Regents institutions. The Kansas Donor Leave Program provides approved recovery time away from work for employees who choose to donate organs, tissue, bone marrow, blood or blood products. All classified and unclassified benefit eligible employees may receive paid leave in accordance with the following criteria:

1. Employees may receive up to 30 working days of paid leave for recovery from an organ or tissue donation procedure.
2. Employees may receive up to 7 working days of paid leave following the donation of bone marrow.
3. Employees may receive 1.5 hours of paid leave every 4 months for the donation of blood.
4. Employees may receive 3 hours of paid leave every 4 months for the donation of blood platelets or other approved blood products.

The following two new earnings codes have been added to SHARP for the Kansas Donor Leave Program:

For further implementation guidelines or information, please consult the Division of Personnel Services' Bulletin No. 01-01 dated March 4, 2001 or contact Brent Smith at (785) 296-1432.

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new earnings codes to the SHARP payroll system. Regents instituions are responsible for ensuring the new earnings codes are available on their individual systems.

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DATE:	March 15, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Fidelity Investments (VTSA #775) has changed its premium payment address. Effective immediately, remittances should be sent to the following address:

P. O. Box 770002
Cincinnati, OH 45277-0089

The vendor table in STARS has been updated to reflect the change in mailing address.

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DATE:	April 13, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Name Change

Payroll Services has been notified that reference to Kansas Farm Bureau Life Insurance Company (VTSA #378) should be changed to Farm Bureau Life Insurance Company.

The vendor table in STARS has been updated to reflect the change in name.

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DATE:	May 11, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	June 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified of an address change for the Metropolitan Life Insurance Company (VTSA #446). Effective June 1, 2001, remittances must be mailed to the following new address:

MetLife
P.O. Box 120841 Dept. 0841
Dallas, TX 75312-0841 

The vendor table in STARS has been updated to reflect the change in address.

In addition, any wired remittances must use the following account information:

Chase Manhattan Bank, New York, NY
ABA Routing Number: 021000021
Account Number: 002-2-430813
Account Title: Denver Annuity EFT 

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.

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DATE:	May 21, 2001
SUBJECT:	New Payroll Deduction Codes for Parking
EFFECTIVE DATE:	Payroll Period Beginning May 13, 2001 and Ending May 26, 2001, Paid June 8, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of New Parking Deduction Codes PPKA04, APKA04 and PKAD05 for Employees of the Kansas Department of Agriculture

To facilitate a parking lease recently entered into by the Kansas Department of Agriculture for employees of their agency who park in the garage located near 9th and Quincy in Topeka, payroll deduction codes PPKA04 (pre-tax parking) and APKA04 (after-tax parking) have been added in SHARP effective May 13, 2001. The employee deduction amount will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05, will be $1.59 (.0765 X $20.77) per payroll period. 

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring any needed changes are made in their individual systems.

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DATE:	June 5, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	Immediately
CONTACT:	Earl Brynds	(785) 296-5376	(earl.brynds@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified of a name change for the Security First Life Insurance Company (VTSA #843). Effective immediately the name is changed to MetLife Investors USA Insurance Company. Premium remittances should be mailed to the following address:

MetLife Investors USA Insurance Company
P.O. Box 91811
Chicago, IL 60693-1289  

The vendor table in STARS has been updated to reflect the name change.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHaRP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.

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DATE:	June 8, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Change
EFFECTIVE DATE:	Immediately
CONTACT:	Earl Brynds	(785) 296-5376	(earl.brynds@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified that the name change for the Security First Life Insurance Company to MetLife Investors Insurance Company (See Informational Circular No. 01-P-045 dated June 5, 2001) applies to both VTSA companies #841 and #843. To avoid a duplication of companies, effective immediately, VTSA company #841 (Security First Life Insurance Company - California) is being removed from the list of valid VTSA companies and company #843 will remain with the name of MetLife Investors USA Insurance Company. Any employees currently enrolled in company #841 should be changed to company #843. The information contained in Informational Circular No. 01-P-045 regarding company #843 is still applicable.

The vendor table in STARS has been updated to reflect this change.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHaRP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.

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DATE:	June 19, 2001
SUBJECT:	Fiscal Year 2002 Payroll Contribution Rates
EFFECTIVE DATE:	Pay Period Beginning June 10, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	-Fiscal Year 2002-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans - Extension of KPERS Death and Disability Moratorium

The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2002. The rates for fiscal year 2002 will become effective with the on-cycle payroll period beginning June 10, 2001 and ending June 23, 2001 paid July 6, 2001. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for fiscal year 2002. The new federal withholding tax rates will be published under a separate informational circular when released by the Internal Revenue Service.

The moratorium of KPERS Death and Disability Insurance has been extended from July 1, 2001 to December 31, 2001. Because of the extension of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between April 1, 2000 and December 31, 2001. Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between March 19, 2000 and December 8, 2001 even though the agency will not be charged for KPERS Death and Disability contribution. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employees. 

The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regents institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2002.

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Attachments: A,B &C (.pdf)

DATE:	June 20, 2001
SUBJECT:	New Payroll Deduction Codes for Parking - Governmental Ethics Commission
EFFECTIVE DATE:	Payroll Period Beginning June 10, 2001 and Ending June 23, 2001, Paid July 6, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of New Parking Deduction Codes PPKA05 and APKA05

To facilitate a parking lease recently entered into by the Governmental Ethics Commission for employees of their agency who park in the garage located near 9th and Quincy in Topeka, payroll deduction codes PPKA05 (pre-tax parking) and APKA05 (after-tax parking) have been added to SHaRP effective June 10, 2001. The employee deduction will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05 (which is already established), will be $1.59 (.0765 X $20.77) per payroll period.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

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DATE:	June 21, 2001
SUBJECT:	New Tables for Federal Withholding Tax for 2001
EFFECTIVE DATE:	July 1, 2001
CONTACT:	Carla Johnston Kathy Ogle	(785) 296-2588 (785) 296-2290	carla.johnston@state.ks.us (kathy.ogle@da.state.ks.us)
APPROVAL:
SUMMARY:	New Federal Withholding Tax Rates Effective for Paychecks Issued On or After July 1, 2001

The Internal Revenue Service (IRS) has issued Publication 15-T containing revised withholding rates and tables for computing the federal withholding tax deductions effective for all paychecks issued on or after July 1, 2001. The supplemental wage flat withholding rate is decreased to 27.5% effective August 7, 2001. These changes are the result of the Economic Growth and Tax Relief Reconciliation Act of 2001. The standard deduction for one withholding allowance will remain at $2900.00 per year in calendar year 2001.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after July 1, 2001. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount. The Kansas withholding tax tables are not effected by the Economic Growth and Tax Relief Reconciliation Act of 2001. The tax tables contained in Accounts and Reports Informational Circular No. 99-P-013 dated December 13, 1998 will continue to be used to calculate state tax withholding amounts for employees working in Kansas.

In addition, agencies should make the attached document, entitled 'Notice to Employees', available to employees so that they will be aware of how the new law affects their withholding.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHaRP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.

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Attachment 1 - SCHEDULE A (FEDERAL WITHHOLDING TAX)
Attachment 2 - Notice to Employees