Kansas Department of Administration

FY 2003

03-P-001 Consolidation of Existing Organizations for AFSCME Council 72 To New AFSCME Organization 715
DATE: June 17, 2002
SUBJECT: Consolidation of Existing Organizations for AFSCME Council 72 To New AFSCME Organization 715
EFFECTIVE DATE: Payroll Period Beginning June 9, 2002 and Ending June 22, 2002, Paid July 5, 2002
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Consolidation Changes for AFSCME

Please be advised that the existing members of AFSCME Council 72, Locals 1417 (ORG417), 1419 (ORG419), 1438 (ORG438) and 1439 (ORG439) are being consolidated to form a new AFSCME Organization, Local 1715. The Deduction code for Local 1715 will be ORG715 and the regular bi-weekly dues for the members will be $ 11.16. The effective date of this consolidation for the payroll system will be for the payroll period beginning June 9 and ending June 22, paid on July 5, 2002. Agencies will need to ensure that the employees enrolled in the existing locals are changed to ORG715 for the effective pay period.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after July 5, 2002.

DB:JJM:eb

03-P-002 Fiscal Year 2003 Payroll Contribution Rates (Supersedes 01-P-047, 02-P-003, and 02-P-021)
DATE: June 18, 2002
SUBJECT: Fiscal Year 2003 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 9, 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.us.ks
APPROVAL: Image of approval signature.
SUMMARY: -Fiscal Year 2003-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans
-KPERS Death and Disability Moratorium

The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2003. The rates for fiscal year 2003 will become effective with the on-cycle payroll period beginning June 9, 2002 and ending June 22, 2002 paid July 5, 2002. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for fiscal year 2003.

A moratorium of KPERS Death and Disability Insurance has been established from July 1, 2002 to December 31, 2002. Because of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between July 1, 2002 and December 31, 2002. This procedure will be effective with the pay period beginning June 9, 2002 and ending June 22, 2002 paid July 5, 2002 through the pay period beginning November 24, 2002 and ending December 7, 2002 paid December 20, 2002. Please note that KPERS Death and Disability Insurance for off-cycles is calculated based on pay period end dates, so paycheck adjustments for pay period end dates prior to June 9, 2002 will continue to have the contributions remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.

Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between June 9, 2002 and December 7, 2002 even though the agency will not be charged for KPERS Death and Disability contribution. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employees.

Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to Board of Regents retirement plans members who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(5). K.S.A. 74-4927a(5) specifically requires the "employee" to remit the required contribution while on leave without pay.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2003.

DB:JJM:rdb

Attachments A, B & C (.pdf)

 

03-P-003 Deletions from the Approved List of Providers for Voluntary Tax Sheltered Annuities
DATE: June 18, 2002
SUBJECT: Deletions from the Approved List of Providers for Voluntary Tax Sheltered Annuities
EFFECTIVE DATE: Payroll Period Beginning June 9, 2002 and Ending June 22, 2002, Paid July 5, 2002
CONTACT: Earl Brynds (785) 296-5376 earl.brynds@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Request From the Kansas Board of Regents to Delete Three Companies from the Approved List of Providers for Voluntary Tax Sheltered Annuities

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

Company Code Company Name
193 Equitable Variable Life Insurance Company
508 Northwestern National Life Insurance Company
730 UNUM Cashier's Department

These VTSA companies have no current subscribers and are deleted effective June 9, 2002 in the SHARP system.

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

DB:JJM:eb

03-P-004 Parking Fee Increase - Curtis Building Garage (Supersedes 02-P-004 and 02-P-009 )
DATE: June 25, 2002
SUBJECT: Parking Fee Increase - Curtis Building Garage
EFFECTIVE DATE: Payroll Period Beginning June 9, 2002 and Ending June 22, 2002, Paid July 5, 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.us.ks
APPROVAL: Image of approval signature.
SUMMARY: Parking Fee Increase - Curtis Building Garage

Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective July 1, 2002. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $21.18 per bi-weekly pay period with the administrative fee code PKAD05 increasing to $1.62 ($21.18 X .0765). Employees with the Kansas Department of Commerce and Housing and the Board of Accountancy who park in the Curtis Building Garage will see parking deduction codes PKT10B and PPKT10 increased to $10.59 per bi-weekly pay period with the administrative fee code PKAD07 increased to $0.81 ($10.59 X .0765).

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

DB:JJM:rdb

03-P-005 Voluntary Tax Sheltered Annuity Company Name Change
DATE: July 9, 2002
SUBJECT: Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE: Immediately
CONTACT: Earl Brynds (785) 296-5376 earl.brynds@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Voluntary Tax Sheltered Annuity Company Name Change

Payroll Services has been notified of a name change for the Variable Annuity Life Insurance Company (VTSA #769). Effective immediately the name should be changed to AIG Variable Annuity Life Insurance Company.

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

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

DB:JJM:eb

03-P-006 New Parking Administrative Fee Deduction Codes
DATE: July 16, 2002
SUBJECT: New Parking Administrative Fee Deduction Codes
EFFECTIVE DATE: Payroll Period Beginning June 23, 2002 and Ending July 6, 2002, Paid July 19, 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.us.ks
APPROVAL: Image of approval signature.
SUMMARY: Addition of New Parking Administrative Fee Deduction Codes PKAD09 and PKAD10

To facilitate the collection of parking administrative fees for employees of the Department of Agriculture, Ethics Commission, and Conservation Commission that park at the garage at 9th and Quincy, parking administrative fee code PKAD09 has been added. The rate for PKAD09 will be $1.59 ($20.77 * .0765). Code PKAD09 should only be used for employees who are enrolled in parking codes PPKA04, PPKA05, and PPKA06. Code PKAD09 replaces code PKAD05 for only those employees who work for the agencies listed above and who park under the agreements for the 9th and Quincy garage.

Parking administrative fee code PKAD10 has been added for employees of the Department of Aging who park at 412 Jackson and for Animal Health Department employees who park at 7th and Jackson. The rate for PKAD10 will be $0.35 ($4.62 * .0765). Code PKAD10 should only be used for employees who are enrolled in parking codes PPKA01 and PPKA03. Code PKAD10 replaces code PKAD01 for only those employees who work for the agencies listed above and who park under the agreements at either 412 Jackson or at 7th and Jackson.

The Division of Facilities Management will perform the necessary changes to the deduction enrollments in SHARP for employees who are currently parking in the lots discussed above. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

DB:JJM:rdb

03-P-007 Addition of Parking Deduction Codes
DATE: July 18, 2002
SUBJECT: Addition of Parking Deduction Codes
EFFECTIVE DATE: Payroll Period Beginning July 7, 2002 and Ending July 20, 2002, Paid August 2, 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.us.ks
APPROVAL: Image of approval signature.
SUMMARY: Addition of New Parking Deduction Codes for agencies that entered into agreements with the 9th and Kansas Garage

To facilitate the collection of parking fees for employees of the Department of Agriculture, Ethics Commission, Conservation Commission, and Kansas Water Office who park at the 9th and Kansas garage two new parking administrative fee codes and sixteen new parking deduction codes have been added to SHARP.

The two new parking administrative fee codes are PKAD11 ($1.85 bi-weekly deduction ($24.23 * .0765)) and PKAD50 ($2.22 bi-weekly deduction ($29.08 * .0765)).

The following codes should be used for the Department of Agriculture: APKA07 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA57 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA07 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA57 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA07, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA57.

The following codes should be used for the Ethics Commission: APKA08 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA58 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA08 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA58 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA08, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA58.

The following codes should be used for the Conservation Commission: APKA09 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA59 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA09 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA59 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA09, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA59.

The following codes should be used for the Kansas Water Office: APKA10 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA60 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA10 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA60 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA10, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA60.

The Division of Facilities Management will perform the necessary deduction enrollments in SHARP for employees who are covered by the parking agreements. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

DB:JJM:rdb

03-P-008 Revision in the Statutory Definition of "Final Average Salary" for KPERS Contributions (Supersedes 01-P-008)
DATE: August 7, 2002
SUBJECT: Revision in the Statutory Definition of "Final Average Salary" for KPERS Contributions
EFFECTIVE DATE: Immediately
CONTACT: Kathy Ogle (785) 296-2290 kathy.ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Revision of Statutory Definition of "Final Average Salary" for KPERS Contributions

Legislation effective May 23, 2002 revised the statutory definition of "final average salary" for KPERS calculations. Final average salary is either the higher of (a) the high four-year average including add-ons at termination or (b) the high three-year average without add-ons. Previously, the determination of which option to use was based on the member's hire date. New language enacted bases the determination on the member's KPERS membership date. Therefore, KPERS has advised Payroll Services that KPERS retirement contributions should not be withheld from the lump-sum termination payments for vacation leave, sick leave, compensatory time, and holiday compensatory time for employees whose membership date is on or after July 1, 1994.

The SHARP payroll system automatically generates the leave payout earnings codes subject to KPERS withholding (VLN, VLP, SLP, CTP and HTP) on the employees' time and leave records. The codes are correct if the employee's KPERS membership date is prior to July 1, 1994. However, agencies are asked to change the earnings codes on time and leave records for employees whose KPERS membership date is on or after July 1, 1994. The earnings codes that should be used are the five 'No KPERS' payout earnings codes: VLT, VLK, SLK, CTK and HTK. Failure to change the timesheets to reflect the proper payout earnings codes will result in the overwithholding of KPERS deductions and payroll adjustments will be required to correct. Please refer to Attachment A for information regarding the use of these earnings codes.

DB:JJM:kao

Attachment

03-P-009 Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30 (Supersedes 02-P-001)
DATE: August 19, 2002
SUBJECT: Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30
EFFECTIVE DATE: August 18, 2002
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University Kansas National Education Association, deduction code 'ORG030', will change from $22.00 to $22.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 18, 2002 and ending August 31, 2002, paid September 13, 2002.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 13, 2002.

DB:JJM:kar

03-P-010 Change in Organization Dues Deduction Amounts (Supersedes 02-P-034)
DATE: August 19, 2002
SUBJECT: Change in Organization Dues Deduction Amounts
EFFECTIVE DATE: September 1, 2002
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Changes for KAPE

The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular biweekly dues for members of KAPE will be changing effective with the payroll period beginning September 1, 2002 and ending September 14, 2002, paid September 27, 2002 as follows:  
 

Deduction Code Hourly Rate of Pay Bi-Weekly Salary Dues Deduction
ORG001 $ 7.35 or Less $ 588.00 or Less $ 6.85
ORG002 $ 7.36 - $ 8.51 $ 588.80 - $ 680.80 $ 7.35
ORG003 $ 8.52 - $ 9.39 $ 681.60 - $ 751.20 $ 7.85
ORG004 $ 9.40 - $ 10.35 $ 752.00 - $ 828.00 $ 8.35
ORG005 $ 10.36 - $ 11.41 $ 828.80 - $ 912.80 $ 8.85
ORG006 $ 11.42 or Greater $ 913.60 - or Greater $ 9.40
ORG888 KU Medical Center - Nurses $ 9.40
ORG 018 & 019 KU - Graduate Teaching Assistants $ 7.55

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 27, 2002.

DB:JJM:kar

03-P-011 Addition of Parking Deduction Codes
DATE: August 29, 2002
SUBJECT: Addition of Parking Deduction Codes
EFFECTIVE DATE: Payroll Period Beginning August 18, 2002 and Ending August 31, 2002, Paid September 13, 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Addition of New Parking Deduction Codes for the Board of Technical Professions for the Centre City Garage

To facilitate the collection of parking fees for employees of the Board of Technical Professions who park at the Centre City Garage (9th and Kansas) four new parking deduction codes have been added to SHARP.

The following codes should be used for the Board of Technical Professions: APKA11 ($24.23 bi-weekly deduction, after tax, non-reserved stall), APKA61 ($29.08 bi-weekly deduction, after tax, reserved stall), PPKA11 ($24.23 bi-weekly deduction, pre-tax, non-reserved stall), and PPKA61 ($29.08 bi-weekly deduction, pre-tax, reserved stall). In addition, parking administrative fee code PKAD11 is to be used for employees enrolled in deduction PPKA11, and parking administrative fee code PKAD50 is to be used for employees enrolled in deduction PPKA61.

The Division of Facilities Management will perform the necessary deduction enrollments in SHARP for employees who are covered by the parking agreements. The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

DB:JJM:rdb

03-P-012 Award Earnings Codes
DATE: September 10, 2002
SUBJECT: Award Earnings Codes
EFFECTIVE DATE: September 15, 2002
CONTACT: Carla Johnston
Kathy Ogle
(785) 296-2588
(785) 296-2290
carla.johnston@state.ks.us
kathy.ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Award SHARP Earnings Codes and Inactivating Old Codes

Senate Bill 429 of the 2002 Legislative Session established an employee award and recognition program for state employees. Under this program, monetary or non-monetary awards may be made to state employees. Agencies may select from the following categories when establishing an award and recognition program: distinguished accomplishment, meritorious service, innovations, Kansas quality management, or volunteerism. Agencies are required to recognize employees for the length of service award category. A regulation to this effect is pending.

The total gross value of all monetary and non-monetary awards to a single employee during a fiscal year must not exceed $3500. The award can be paid from Kansas Savings Incentive Program (KSIP) funds.

All monetary awards provided under this program should meet the conditions for a discretionary bonus and thus, not affect the calculation of overtime. Monetary awards are included in taxable gross income and are subject to all applicable taxes and employer contributions. These include federal and state withholding taxes, OASDI, Medicare, Unemployment Compensation Insurance, Workers Compensation Insurance, and State Leave Assessment. Monetary awards are not subject to deductions under the Kansas Public Employees Retirement System (KPERS).

Non-monetary awards are included in taxable gross income and are subject to all applicable taxes and employer contributions (same as monetary awards) unless they can be excluded or partially excluded from income for the following reasons:

  1. The award is considered a "de minimis fringe benefit" under IRS Code Section 132.
  2. The award is considered an "employee achievement award" under IRS Code Section 74.

Complete Employee Award and Recognition Program guidelines, procedures, sample forms, and reference book are available on the Division of Personnel Services website located at: http://www.da.ks.gov/ps/subject/award/

The following earnings codes will be added to SHARP effective September 15, 2002, to accommodate this new legislation:

Earns Code Description Check Stub
DAA Distinguished Accomplishment Award Bonus
INA Innovation Award Bonus
KQA Kansas Quality Management Award Bonus
LNA Length of Service Award Bonus
MSA Meritorious Service Award Bonus
NMA Non-monetary Taxable Award Other Remuneration

One earnings code will be inactivated effective September 15, 2002 due to this legislation:

QBP - Quality Bonus Payment*

 *QBP has been unavailable for agency use since July 1, 2002 due to the new legislation passed in SB429.

The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding and inactivating these earnings codes in the SHARP system. Regents Institutions are responsible for ensuring these earnings codes are available on their individual systems.

DB:JJM:ckj

03-P-013 SHARP Bi-Weekly Payroll Schedule for January - June 2003 (Supersedes 02-P-012)
DATE: September 30, 2002
SUBJECT: SHARP Bi-Weekly Payroll Schedule for January - June 2003
EFFECTIVE DATE: Calendar Year 2003
CONTACT: Roger Basinger

(785) 296-5387

roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: SHARP On-cycle and Off-cycle Payroll Processing Schedules for January - June 2003

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for January through June 2003. The processing schedule is only being produced for the first half of the year due to the implementation of SHARP v8.0 which is planned for the first paycheck issued in Fiscal Year 2004 (July 3, 2003). The implementation of SHARP v8.0 is not anticipated to impact the SHARP processing timelines; however, the Division is waiting on the results of performance and system testing for v8.0 before issuing the SHARP v8.0 processing schedules.

The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period and reflect the extended hours of the on-line SHARP system to 6:00 p.m. Please note, however, that the times for receiving interface files remain unchanged (either 5:00 p.m. or 6:00 a.m.). Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. Time and leave interface agencies, please note that time and leave files for the payroll period ending December 21, 2002 are due Friday, December 20, 2002.

SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll.

Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payrolls will be issued with the same check/advice date as the SHaRP off-cycle processed the same night.

DB:JJM:rdb

attachment: SHARP bi-weekly on-cycle and off-cycle schedules for January through June 2003 (.pdf) 

03-P-014 2002 W-2 Form Changes
DATE: October 3, 2002
SUBJECT: 2002 W-2 Form Changes
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 sunni.zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: 2002 W-2 Form Changes To Conform With Software

The Division of Accounts and Reports wants to make all agencies aware of upcoming changes for the 2002 W-2 forms. As part of our effort to reduce programming costs for updating and maintaining custom programs, the decision was made to use the standard W-2 form that conforms to our human resource/payroll software. This W-2 form will look substantially different from the custom form used in the past. The form is one page, has four parts, and will be pressure sealed. The four parts to the W-2 form will provide the employee with four copies of the W-2: one copy to be used for federal taxes, one copy for the employee to keep, and two copies that can be used for state or local taxes. A sample copy of the 2002 W-2 is attached.

Address 

One change that should be noted is the address that will be used for mailing the W-2 forms. If an employee has a mailing address on the SHARP panel Personal Data 1, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. In the past, home address was always used for the W-2 form. Since the majority of employees do not have a mailing address and the home address will continue to be used when the mailing address is blank, this change does not affect a large number of employees. On October 18, 2002, we will send agencies a listing of their employees who have a mailing address. Each agency will be asked to verify the information with their employee records and make any necessary changes by December 20, 2002. Not all agencies have employees with mailing addresses; therefore, some agencies will not receive a listing.

Earnings Summary 

The W-2 form used in the past provided the employee with an earnings summary that showed calculations for the federal, state, social security, and Medicare grosses. The earnings summary is not available using the standard functionality provided by our software. The on-line payroll report KPAY318 is available to agency personnel/payroll staff and may assist you with answering employee requests for more detail regarding their W-2 amounts. This report is available through SHARP using the path Go / Compensate Employees / Maintain Payroll Data U.S. / Report / Year To Date Balances. Employee ID and year are required to run this report. There will be an informational circular released at the time of the mailing of the 2002 W-2 forms that will provide your agency with an explanation of calculations to assist you with employee inquiries.

Agency questions regarding these changes can be directed to Sunni Zentner.

Attachment: Image of new W2 form 

03-P-015 New Vision Provider for Group Health Insurance - Board of Regents Institutions (Supersedes 02-P-007)
DATE: October 4, 2002
SUBJECT: New Vision Provider for Group Health Insurance - Board of Regents Institutions
EFFECTIVE DATE: Payroll Period Beginning December 8, 2002 and Ending December 21, 2002, Paid January 3, 2003
CONTACT: Elaine Harris (785) 296-7458 elaine.harris@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Vision Provider for Group Health Insurance

The Health Care Commission approved a new vision provider for plan year 2003. Superior Vision will replace Vision Service Plan. A basic and enhanced plan will continue to be offered. Deduction code and funding information is as follows:

Superior Vision, Basic Plan: plan type 14, deduction codes SVLOAT/SVLOBT 
STARS funding file - fund 7700, index 9704

Superior Vision, Enhanced Plan: plan type 14, deduction codes SVHIAT/SVHIBT
STARS funding file - fund 7700, index 9706
Note: The vision plans have no employer contribution.

Regents institutions are responsible for ensuring these changes are reflected in their individual systems. Note: there are no changes to the DA175-176 files.

The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 02-P-007 dated August 24, 2001. All changes listed above are incorporated in this document.

DB:JJM:cj

Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf)

03-P-016 Key Payroll Processing Dates in November 2002 (Supersedes 02-P-010)
DATE: October 4, 2002
SUBJECT: Key Payroll Processing Dates in November 2002
EFFECTIVE DATE: November 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Payroll processing schedule changes due to the November 2002 holidays.

Monday, November 11, 2002 (Veterans Day), Thursday, November 28, 2002 and Friday, November 29, 2002 (Thanksgiving Holiday) are designated holidays for state service in 2002. Due to the holidays in November, variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. The schedule also reflects the extended hours of the on-line SHARP system to 6:00 p.m. Please note that the times for receiving interface files remains unchanged (either 5:00 p.m. or 6:00 a.m.).

Friday, November 8, 2002

Payday for the payroll period ending October 26, 2002.

Time and leave interface agencies must have time and leave files for the period ending November 9, 2002 submitted to the Department of Administration for processing by 5:00 PM on November 8, 2002 (these files would normally be due Monday).

Paper agencies time and leave documents for the pay period ending November 9, 2002 are due to Payroll Services by 5:00 PM on November 8, 2002.

Regents' Run C off-cycle payroll files for the period ending October 26, 2002 must be received by the Department of Administration by 5:00 PM on November 8, 2002.

Monday, November 11, 2002
(Veterans Day Holiday)

Tuesday, November 12, 2002

Paysheets for the on-cycle payroll for the period ending November 9, 2002 will be created on Tuesday, November 12, 2002. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 12, 2002 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 9, 2002 will also occur November 12, 2002; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM.

The Run C off-cycle for the period ending October 26, 2002 will be processed November 12, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 15, 2002.

Wednesday, November 13, 2002

The second on-cycle preliminary pay calculation for the period ending November 9, 2002 will occur November 13, 2002.

Thursday, November 14, 2002

The third on-cycle preliminary pay calculation for the period ending November 9, 2002 will occur November 14, 2002.

Friday, November 15, 2002

Regents' on-cycle payroll files for the period ending November 9, 2002 are due to the Department of Administration by 6:00 AM on November 15, 2002.

Final pay confirmation for the on-cycle payroll for the period ending November 9, 2002 will occur November 15, 2002. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 15, 2002 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 15, 2002 in order to be reflected in the final paycheck created for the employee.

Regents' Run A off-cycle payroll files for the period ending November 9, 2002 must be received by the Department of Administration by 5:00 PM on November 15, 2002.

Monday, November 18, 2002

The Run A off-cycle for the period ending November 9, 2002 will be processed November 18, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 22, 2002.

Tuesday, November 19, 2002

Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 9, 2002 will be posted to STARS during Tuesday night's STARS batch processing cycle.

Regents' Run B off-cycle payroll files for the period ending November 9, 2002 must be received by the Department of Administration by 5:00 PM on November 19, 2002 in order to be processed on Wednesday, November 20, 2002.

Wednesday, November 20, 2002

The Run B off-cycle for the period ending November 9, 2002 will be processed November 20, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 25, 2002.

Friday, November 22, 2002

Payday for the payroll period ending November 9, 2002.

Time and leave interface agencies must have time and leave files for the period ending November 23, 2002 submitted to the Department of Administration for processing by 5:00 PM on November 22, 2002 (these files would normally be due Monday).

Paper agencies time and leave documents for the pay period ending November 23, 2002 are due to Payroll Services by 5:00 PM on November 22, 2002.

Regents' Run C off-cycle payroll files for the period ending November 9, 2002 must be received by the Department of Administration by 5:00 PM on November 22, 2002.

Monday, November 25, 2002

The Run C off-cycle for the period ending November 9, 2002 will be processed November 25, 2002. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated December 2, 2002.

The first on-cycle preliminary pay calculation for the period ending November 23, 2002 will also occur November 25, 2002; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 23, 2002.

Tuesday, November 26, 2002

The second on-cycle preliminary pay calculation for the period ending November 23, 2002 will occur November 26, 2002.

Wednesday, November 27, 2002

Final pay confirmation for the on-cycle payroll for the period ending November 23, 2002 will occur November 27, 2002 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 27, 2002 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 27, 2002 in order to be reflected in the final paycheck created for the employee.

Regents' on-cycle payroll files for the period ending November 23, 2002 are due to the Department of Administration by 6:00 AM on November 27, 2002.

Regents' Run A off-cycle payroll files for the period ending November 23, 2002 must be received by the Department of Administration by 5:00 PM on November 27, 2002.

Attached is a calendar for the month of November 2002, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site (http://www.da.ks.gov/sharp/). If you are not a subscriber to the SHARP Infolist, on-line users should review the SHARP message panel or web site daily to determine if new messages have been added. Paper-users will be notified of any changes to these dates via telephone. To subscribe to the Infolist and receive notification of messages posted to the SHARP message panel, go to: http://www.da.ks.gov/sharp/infolist.htm.

DB:JJM:rdb

Attachment: Payroll Processing Calendar - November 2002 (.pdf)

03-P-017 Change in Organization Dues Deduction for Fort Hays State University-FOP #48 (Supersedes 01-P-029)
DATE: October 8, 2002
SUBJECT: Change in Organization Dues Deduction for Fort Hays State University-FOP #48
EFFECTIVE DATE: October 13, 2002
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Changes for ORG048

The organization dues for members of the Fort Hays State University FOP, deduction code 'ORG048', will change from $10.00 to $15.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning October 13, 2002 and ending October 26, 2002, paid on November 8, 2002.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after November 8, 2002.

DB:JJM:eb

03-P-018 Change in Social Security Base Rate (Supersedes 02-P-015)
DATE: October 24, 2002
SUBJECT: Change in Social Security Base Rate
EFFECTIVE DATE: January 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Social Security Wage Base Increase to $87,000 effective January 1, 2003

The Social Security wage base for OASDI will be $87,000 for calendar year 2003. This is a $2,100 increase from the 2002 wage base of $84,900. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2003 will be $5,394.00. There continues to be no limit on wages subject to the Medicare tax in 2003. Medicare tax rates for employers and employees remain at 1.45%.

For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,394.00 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.

For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).

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

DB:JJM:rdb

03-P-019 Voluntary Tax Sheltered Annuity Company Name Change
DATE: October 24, 2002
SUBJECT: Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 abby.moore@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Voluntary Tax Sheltered Annuity Company Name Change

Payroll Services has been notified that ReliaStar Northern Life Insurance Company (VTSA #506) is now ReliaStar Life Insurance Company. The payment address is unchanged. Effective immediately remittances must be mailed to:

ReliaStar Life Insurance Company
PO Box 5060
Minot, ND 58702-5060

Vendor number 410451140-02 in STARS has been updated to reflect this address change.

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

DB:JJM:rdb

03-P-020 Voluntary Tax Sheltered Annuity Company Name Change
DATE: October 30, 2002
SUBJECT: Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 abby.moore@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified that the address for Anchor National Life Insurance Company (VTSA #059) has changed. Effective immediately remittances must be mailed to:

Anchor National Life Insurance Company
PO Box 100330
Pasadena, CA 91189-0001

Vendor number 860198983-08 in STARS has been updated to reflect this address change.

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

DB:JJM:rdb

03-P-021 Employee Taxability of State-Owned Vehicles (Revises 02-P-018)
DATE: November 15, 2002
SUBJECT: Employee Taxability of State-Owned Vehicles
EFFECTIVE DATE: January 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL:
SUMMARY: IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2003

The Internal Revenue Service (IRS) has decreased the mileage rate from 36.5 cents (for 2002) to 36 cents (for 2003) under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned vehicle. The new rate becomes effective January 1, 2003. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 36 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicles total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2003 and the agency wishes to use the Cents-Per-Mile method, please contact Payroll Services for the 'luxury' vehicle definition. Agencies and employees are also reminded that the only personal use of a state vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.

Please note that this Informational Circular does not impact the State's privately owned vehicle mileage reimbursement rate.

DB:JJM:rdb

03-P-022 New Tables for Federal Withholding Tax for 2003 (Supersedes 02-P-024)
DATE: November 25, 2002
SUBJECT: New Tables for Federal Withholding Tax for 2003
EFFECTIVE DATE: January 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 2003.

The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 2003. In addition, the value for one withholding exemption changes to $3050.00 per year in calendar year 2003.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 2003. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.

IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 2002 must file a new W-4 form for calendar year 2003 if they wish to continue their exempt status.

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

  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 2002 must file a new 8233 form for calendar year 2003 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.

The Department of Administration will be updating the SHARP federal and state tax data records on December 16, 2002, for all employees currently claiming exemption from withholding; the tax data record updates will be effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exemption from withholding for calendar year 2003. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exemption from withholding in 2003. The new tax data row should be effective January 2, 2003. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.

A new-effective dated row will also be added in the SHARP federal tax data records on December 16, 2002 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2003. The new tax data row will be dated January 1, 2003. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2003 has been submitted.

The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose withholding tax status was updated on December 16, 2002. This listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

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

DB:JJM:rb

Attachment: Schedule A

03-P-023 2002 Calendar Year-End Processing (Supersedes 02-P-017 & 02-P-026)
DATE: November 25, 2002
SUBJECT: 2002 Calendar Year-End Processing
EFFECTIVE DATE: Immediately
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Schedule for Processing Transactions During 2002 Calendar Year-End

As 2002 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2002 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2002 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2003 balances; a corrected W-2 (Form W-2C) for 2002 will not be issued for the employee involved.

FINAL 2002 PAYCHECK

The final on-cycle paychecks for calendar year 2002 will be issued December 20, 2002. Paychecks will be mailed on December 19, 2002 and advices will be mailed on December 18, 2002. The final off-cycle paychecks for calendar year 2002 will be issued on December 27, 2002 for the off-cycle processed on December 23, 2002.

PAYCHECK REVERSALS

Any 2002 paychecks that are undeliverable should be reversed as soon as possible. After proper authorization SHARP agencies have until 6:00 p.m. on December 23, 2002 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', for any paycheck reversals by 12:00 noon on December 23, 2002. Any reversal requests entered/received after the 6:00 p.m./12:00 noon deadline on December 23, 2002 will update calendar year 2003 balances and will not be reflected in the employee's 2002 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 23, 2002 to enter paycheck adjustment requests for any 2002 paychecks. Adjustments processed in the December 23, 2002 off-cycle payroll will be reflected on the employee's 2002 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2002 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 16, 2002. The December 16, 2002 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 16, 2002 for inclusion in the December 23, 2002 off-cycle. However, if a large volume of DA-180 forms is received on the December 16, 2002 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2002 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.

Adjustment requests entered after December 23, 2002 which are adjusting paychecks issued prior to January 1, 2003 will not result in a W-2C; the adjustment will update the employee's 2003 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 23, 2002 will update the employee's 2003 payroll balances.

REGENTS' INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 7, 2002, paid December 20, 2002 are due to the Department of Administration by 6:00 am on December 13, 2002.

REGENTS' INSTITUTIONS: OFF-CYCLE FILES

2002 Paycheck Reversals

Regent Institutions must submit all transmittals for 2002 paycheck reversals by 5:00 p.m. on Friday, December 20, 2002 in order to update the employee's 2002 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2003 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2003 submitted after 5:00 pm on December 20, 2002 should default the pay adjust check date to January 1, 2003.

2002 Adjustments and Supplementals

In order to update employee balances for 2002, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 20, 2002. The off-cycle for the pay period ending December 7, 2002 generated on the night of Monday, December 23, 2002 will have a check issue date of December 27, 2002; all activity for this off-cycle will be reflected in the employees' 2002 W-2. These files should contain a 'C' indicating current year business. For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2002 date.

2003 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2003, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 20, 2002, will be considered to be 2003 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2003 business, the employee's 2003 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2003 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2003, agencies should default the pay adjust check date to January 1, 2003).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2003, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2003 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2003 payroll balances.

Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a 'P' indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of 'P' should be used; payroll interface files for any other type of adjustments which contain a prior year indicator of 'P' will be rejected and will not be processed.

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2002 deadline will not be processed until the January 27, 2003 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 20, 2003. The deadline for submitting payroll interface files for the January 27, 2003 off-cycle is 5:00 p.m. on January 24, 2003.

GENERAL REMINDERS

United Way

The deduction END date on the general deduction panel for 2002 United Way contributions should be dated between December 8, 2002 and December 21, 2002 in order for the last 2002 deduction to be taken on the paycheck issued December 20, 2002. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2003, agencies can enter a new row effective-dated between December 8, 2002 and December 21, 2002 in order for the first deduction for 2003 to be taken on the January 3, 2003 paycheck. If the 2003 deduction is to be taken over 26 pay periods, a deduction end date of December 7, 2003 should be entered.

Tax Information

The Department of Administration will be updating the SHARP federal and state tax data records on December 16, 2002, for all employees currently claiming exemption from withholding; the tax data record updates will be effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exemption from withholding for calendar year 2003. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exemption from withholding in 2003. The new tax data row should be effective January 2, 2003. To ensure that no federal tax withholding occurs on the January 3, 2003 paycheck, the tax data row dated January 2, 2003 should be entered between December 16, 2002 and December 27, 2002. The Division of Accounts and Reports will provide a listing to agencies which will identify all employees whose withholding tax status was updated on December 16, 2002. The listing will include the department, employee ID, name, SSN, and withholding exempt status.

A new-effective dated row will also be added in the SHARP federal tax data records on December 16, 2002 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2003. The new tax data row will be dated January 1, 2003. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2003 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

The Department of Administration will also update existing SHARP federal tax data records on December 16, 2002 for all employees claiming the Earned Income Credit in 2002 to reflect the Earned Income Credit status of 'Not applicable'. The tax record updates are effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the Earned Income Credit in calendar year 2003; paper agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the Earned Income Credit in 2003. To ensure that the Earned Income Tax Credit occurs on the January 3, 2003 paycheck, the tax data row dated January 2, 2003 should be entered between December 16, 2002 and December 27, 2002. The Division of Accounts and Reports will provide a listing to agencies, which identifies all employees whose Earned Income Credit status was updated in SHARP on December 16, 2002. The listing includes department, employee ID, name, SSN, and EIC exempt status.

The 2002 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS.

Deduction Information

All deductions for calendar year 2003 are biweekly except:

  • Group Health Insurance: semi-monthly, deducted on the first and second paydates of the month.
  • Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
  • Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second paydates of the month.
  • Long Term Care: monthly, deducted on the first paydate of the month.
  • Optional Group Life Insurance: monthly, deducted on the second paydate of the month.

Arrearages/Advances

Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 23, 2002 (December 16, 2002 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 reports to determine collections will be made by calendar year-end. For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing. Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. Any arrearage collections made by personal reimbursement that are collected after December 13, 2002, and prior to December 23, 2002, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2002 W-2.

One of the changes implemented at the time of the v7.0 SHARP upgrade is the advance ('ADV') earnings being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions. 'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction). Any 'ADV' earnings paid to an employee in calendar year 2002 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 7, 2002 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 20, 2002 (i.e., on-cycle for the payroll period ending December 7, 2002) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2002 Form W-2.

W-2s

As noted in Informational Circular No. 03-P-014 dated October 3, 2002, one change that should be noted is the address that will be used for mailing the W-2 forms. If an employee has a mailing address on the SHARP panel Personal Data 1, the mailing address will be used for mailing the W-2. If the employee has no mailing address, then the home address will be used for mailing the W-2. In the past, home address was always used for the W-2 form. If a mailing address is deleted in Administer Workforce/Personal Data go to maintain Payroll Data/Payroll Data and click on the home address radio button. Since the majority of employees do not have a mailing address and the home address will continue to be used when the mailing address is blank, this change does not affect a large number of employees. Please make any name, address, or social security number changes to this panel by 5:00 pm on December 27, 2002 to guarantee the updated information is included in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between December 27, 2002 and January 15, 2003.

Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 27, 2002.

W-2 forms will be mailed on or before January 31, 2003. A message will appear on the SHARP message panel to advise agencies of the W-2 mailing date in January.

December Calendar

Attached is a calendar for the month of December 2002 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 03-P-013, dated September 30, 2002. The attached calendar is intended for use as a supplementary reference tool to this informational circular.

Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHRP web site (http://www.da.ks.gov/sharp/). On-line agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.

DB:JJM:rdb

Attachment: December 2002 Payroll Calendar (.pdf) 

03-P-024 Increase in Parking Fees for the Garage at 512 Jackson in Topeka (Supersedes 01-P-033)
DATE: November 25, 2002
SUBJECT: Increase in Parking Fees for the Garage at 512 Jackson in Topeka
EFFECTIVE DATE: Payroll Period Beginning November 10, 2002 and Ending November 23, 2002, Paid December 6, 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Increase in Parking Fees for the Garage at 512 Jackson in Topeka - Payroll Deduction Codes PPKA02, APKA02, PKAD04

Due to the increase in parking fees by the City of Topeka, payroll deduction codes PPKA02 (pre-tax parking) and APKA02 (after tax parking) are being increased to $13.85 per bi-weekly payroll period. This increase will impact Department on Aging employees who park at the Garage at 512 Jackson in Topeka. In addition, parking administrative fee code PKAD04 (employer rate) will increase to $1.06 per bi-weekly payroll period. The rate increase is effective for the pay period ending November 23, 2002, paid December 6, 2002.

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

DB:JJM:rdb

03-P-025 Missouri State Withholding (Supersedes 02-P-028)
DATE: December 2, 2002
SUBJECT: Missouri State Withholding
EFFECTIVE DATE: January 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Change in Missouri State Withholding Tax Formula for 2003

The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2003. The following table is a list of current filing statuses and the standard deduction for 2003.
 

Filing Status Standard Deduction
Single $4,750.00
Married and spouse works $3,975.00
Married and spouse does not work $7,950.00
Head of Household $7,000.00

For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4, no deduction for allowances two through four, and then $1,200.00 per allowance for allowances five and greater. Please note that allowances two through four are not allowed using the withholding tax formula; however, allowances two through four are still used for employers using the withholding tax tables. Please find attached copies of the 2003 Missouri Withholding Tax Formula and MO W-4 for your information.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.

DB:JJM:rdb

Attachments: 2003 Missouri Withholding Tax Formula (.pdf) and MO W-4 (.pdf) 

03-P-026 Deduction and Earnings Information (Updates 03-P-002)
DATE: December 3, 2002
SUBJECT: Deduction and Earnings Information
EFFECTIVE DATE: Pay Period Beginning December 8, 2002
CONTACT: Carla Johnston
Kathy Ogle
(785) 296-2588
(785) 296-2290
carla.johnston@state.ks.us
kathy.ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: End of Moratorium on Employer's Contributions for KPERS Death and Disability Insurance and Inactivating SHARP Earnings Codes

The moratorium on KPERS Death and Disability Insurance employer contributions will expire as of December 31, 2002. As a result, the Division of Accounts and Reports will again begin collecting and remitting KPERS Death and Disability contributions effective with the pay period beginning December 8, 2002 and ending December 21, 2002, paid January 3, 2003.

Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP in General Deduction Data for new employees so that the proper contribution amount is calculated (Go, Compensate Employees, Maintain Payroll Data U.S., Use, General Deduction Data). Attached is a schedule listing the percentage rates for employee/employer retirement plan contributions, updated with the Death and Disability Insurance Contribution rates and 'GTL' codes.

Also, earnings codes 'NGS-National Guard Subsistence' and 'HOB-Holiday Comp-Bank-FLSA' will be inactivated effective with the pay period beginning December 8, 2002 and ending December 21, 2002, paid January 3, 2003. These earnings codes cannot be entered on timesheets for pay periods ending after December 7, 2002. Paychecks that contain an inactive code cannot be adjusted through the reversal/adjustment process, as payroll error messages will result. In these situations, the adjustment request should be submitted to Accounts & Reports, Payroll Section on a form DA-180, Paycheck Reversal/Supplemental/Adjustment.

The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are made in their respective systems prior to December 21, 2002.

Attachment (.pdf)

03-P-027 Voluntary Tax Sheltered Annuity Company Address Changes
DATE: December 10, 2002
SUBJECT: Voluntary Tax Sheltered Annuity Company Address Changes
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 abby.moore@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Voluntary Tax Sheltered Annuity Company Name and Address Changes

Payroll Services has been notified of an address change for INVESCO Funds Group (VTSA #835) and an address and name change for Pioneer Group, Inc. (VTSA #821). Pioneer Group, Inc. is now named Pioneer Investment Management Services (PIMSS). Effective immediately remittances must be mailed as follows: 

INVESCO Funds Group
P.O. Box 173706
Denver, Co 80217-9126    

Pioneer Investment Management Services (PIMSS)
Attn. Group Plans Department
P.O. Box 55150
Boston, MA 02205

Vendor numbers 840235630-00 (INVESCO Funds Group) and 042890696-00 (Pioneer Investment Management Services) in STARS have been updated to reflect the address changes.

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

DB:JJM:kao

03-P-028 New Tables for Earned Income Credit for 2003 (Supersedes 02-P-029)
DATE: December 13, 2003
SUBJECT: New Tables for Earned Income Credit for 2003
EFFECTIVE DATE: January 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Earned Income Credit Rates Effective for Paychecks Issued On
or After January 1, 2003

The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 2003. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2003. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.

The Internal Revenue Service has released the 2003 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2003 Form W-5 is attached; the 2002 Form W-5 expires on December 31, 2002. The 2003 Form W-5 must be filed with the employer before advance 2003 payments can begin. Generally, employees have to successfully answer questions listed on page 2 on Form W-5 in order to be eligible for advance payments. In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2003 earned and adjusted gross income will each be less than $29,666.00 for single employees or $30,666.00 if filing jointly (include spouses income if filing jointly). Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating to foreign earned income). Finally, a nonresident alien may not claim the EIC for 2003 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2003.

The IRS has established the following three employee status categories: (a) Single or Head of Household, (b) Married Without Spouse Filing Certificate, and (c) Married With Both Spouses Filing Certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments.

The Department of Administration will update the existing SHARP federal tax data records on December 16, 2002, for all employees claiming the EIC in 2002 to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates are effective January 1, 2003. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 2003; paper agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 2003. The new tax dated row should be added effective January 2, 2003 and will need to be entered into SHARP by 6:00 p.m. on Friday, December 27, 2002 in order to be reflected in the on-cycle paycheck dated January 3, 2003. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information.

The Division of Accounts and Reports will provide a listing to agencies which identifies all SHARP employees whose EIC status was updated in SHARP on December 16, 2002. The listing includes department, employee ID, name, SSN, and EIC exempt status.

The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regent's institutions are responsible for implementing the new EIC rates in their respective payroll systems.

DB:JJM:rdb

Attachment: Advanced Earned Income Credit Formulas 
          W-5 Earned Income Credit Advance Payment Certificate (.pdf)

03-P-029 New Payroll Deduction Codes for Parking State Parking Lot 3 at 1020 S Kansas, Topeka
DATE: December 17, 2002
SUBJECT: New Payroll Deduction Codes for Parking State Parking Lot 3 at 1020 S Kansas, Topeka
EFFECTIVE DATE: Payroll Period Beginning December 8, 2002 and Ending December 21, 2002, Paid January 3, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Addition of New Parking Deduction Codes PPKT03, PKT03B, PPKTR3, and PKTR3B

To facilitate the collection of parking fees for State Parking Lot 3, located at 1020 S. Kansas, payroll deduction codes PPKT03 (pre-tax parking, non-reserved), PKT03B (after-tax parking, non-reserved), PPKTR3 (pre-tax parking, reserved), and PKTR3B (after-tax parking, reserved) have been added to SHARP effective December 8, 2002. The employee deduction for the non-reserved spaces (codes PPKT03 and PKT03B) will be $6.92 per bi-weekly payroll period. The employer rate for the non-reserved spaces, payroll deduction code PKAD01 (which is already established), will be $0.53 (.0765 X $6.92) per bi-weekly payroll period. The employee deduction for the reserved spaces (codes PPKTR3 and PKTR3B) will be $8.08 per bi-weekly payroll period. The employer rate for the reserved spaces, payroll deduction code PKADR1 (which is already established) will be $0.62 (.0765 X $8.08).

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

DB:JJM:rdb

03-P-031 Increase in Parking Fees for the Centre City Garage
DATE: December 20, 2002
SUBJECT: Increase in Parking Fees for the Centre City Garage
EFFECTIVE DATE: Payroll Period Beginning December 8, 2002 and Ending December 21, 2002, Paid January 3, 2002
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Increase in Parking Fees for the Centre City Garage at 9th and Kansas in Topeka

To facilitate the increase in parking fees by the City of Topeka, the following payroll deduction codes for parking in the Centre City Garage will increase as follows:

Non-reserved parking deduction codes APKA07, PPKA07 (Department of Agriculture); APKA08, PPKA08 (Ethics Commission); APKA09, PPKA09 (Conservation Commission); APKA10, PPKA10 (Kansas Water Office); and APKA11, PPKA11 (Board of Technical Professions) will increase from $24.23 to $25.38 per bi-weekly period.

Reserved parking deduction codes APKA57, PPKA57 (Department of Agriculture); APKA58, PPKA58 (Ethics Commission); APKA59, PPKA59 (Conservation Commission); APKA60, PPKA60 (Kansas Water Office); and APKA61, PPKA61 (Board of Technical Professions) will increase from $29.08 to $30.46 per bi-weekly period.

In addition, parking administrative fee code PKAD11 will increase from $1.85 to $1.94 ($25.38 X .0765) per bi-weekly period, and parking administrative fee code PKAD50 will increase from $2.22 to $2.33 ($30.46 X .0765) per bi-weekly period.

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

DB:JJM:rdb

03-P-032 W-2 Wage and Tax Statements for Calendar Year 2002 (Supersedes 02-P-032)
DATE: January 6, 2003
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2002
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
Debbie Esquibel (785) 368-6313 Debbie.Esquibel@da.state.ks.us
Payroll Services Fax Number (785) 291-3399
APPROVAL: Image of approval signature.
SUMMARY: Information Pertaining to Employee 2002 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2002 W-2 Wage and Tax Statement for each employee of your agency. Agencies that are on-line users of SHARP will find the report in your agency mailbox on the MVS dated December 27, 2002. The KTXPR55 listing will be distributed to paper user agencies via the normal report distribution process.

The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2002 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2002 W-2's.

In those instances where an employee has worked for more than one department, one W-2 form has been prepared which includes earnings and deductions for all departments. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the department number appearing on the employee's most current job record.

Agencies are reminded that in an effort to reduce programming costs for updating and maintaining custom programs in SHARP, the decision was made to use the standard W-2 form, which conforms to our SHARP software. The standard W-2 form is substantially different from the custom W-2 form used in past years. The new W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressured sealed.

Please note that the IRS has reported an error on the 2002 Form W-2 in the 'Earned Income Credit (EIC)' paragraph in the Notice to Employee on the back of Copy B. The Notice does not contain the income limitations for the married filing jointly status. Agencies should notify all employees who participated in EIC for 2002 about this error. The paragraph should read as follows:

You may be able to take the EIC for 2002 if (a) you do not have a qualifying child and you earned less than $11,060.00 ($12,060.00 if married filing jointly), (b) you have one qualifying child and you earned less than $29,201.00 ($30,201 if married filing jointly), or (c) you have more than one qualifying child and you earned less than $33, 178.00 (34,178.00 if married filing jointly). You and any qualifying children must have valid Social Security Numbers (SSNs).

The mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. In the past, the employee's home address has always been used for the W-2. This change will not impact a large number of employees, since most employees do not have a mailing address, and the W-2 will be mailed to the employee's home. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.

All 2002 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 16, 2003. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.

In cases where the 2002 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.

Duplicate laser printed W-2's for calendar year 2002 will be printed for distribution to the agencies on each Monday, beginning February 3, 2003 and continuing through April 14, 2003. The agencies are requested to submit one blanket request for duplicate 2002 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests for 2002 W-2's should include each employee's name and employee ID and the list should be sorted by last name. Requests for duplicate W-2's for years prior to 2002 should be submitted separately and should also include the employee's SSN as well as name and employee ID. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services. (See Page 1 for telephone, e-mail, and fax information.)

The W-2 form used in past years provided the employee summary, which showed calculations for federal, state, social security, and Medicare grosses. This summary is no longer available using the standard functionality provided by our software. Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms.

In addition, on-line agencies may also consider utilizing the SHARP KPAY318, "Year to Date Balances" report to assist in answering W-2 related questions. The report is available through SHARP using the path: Go / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. This report provides year-to-date balances for earnings, deductions, and taxes for one employee. A sample of this report is included as Attachment B. The earnings total listed on the report includes those earnings types in which the Adds to Gross indicator is Y. The deductions balances section of the report only includes those deductions with the deduction class of A (after-tax), B (before-tax), and T (taxable benefit). Deduction balances with the deduction class of N (non-taxable benefit) will not be included on the report since they represent employer contributions. The report can only be requested for employees with a current job record in your department. Agencies will not be able to request this report for someone who does not have a current job record with your agency. If you need this report for a former employee, or if you are a paper user, you may submit a request for this report to Debbie Esquibel or Sunni Zentner. (See Page 1 for telephone, e-mail, and fax information.) If you do not currently have the Reports menu under Maintain Payroll Data U.S., you will need to complete an Agency Security Selection form that can be printed from the SHARP Web site at http://www.da.ks.gov/sharp/documents. Agency technical staff will need to download the sqr for this report. The instructions for downloading can be found at the SHARP web site: http://www.da.ks.gov/sharp/downloads.htm. <------- Broken link

DB:JJM:rdb

Attachments: 2002 W-2 Wage and Tax Statement Calculations (.pdf) 
  Image of KPAY318(print page for better readability)
03-P-033 2003 W-2 Production Reports (Supersedes 02-P-033)
DATE: January 6, 2003
SUBJECT: 2003 W-2 Production Reports
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: 2003 W-2 Production Reports to be Run Throughout the Year

In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2003 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2003 W-2 production reports are scheduled to be generated:

  • Friday, February 14, 2003
  • Friday, March 14, 2003
  • Friday, April 11, 2003
  • Friday, May 9, 2003
  • Friday, June 6, 2003
  • Thursday, July 3, 2003
  • Friday, August 1, 2003
  • Friday, August 29, 2003
  • Friday, September 26, 2003
  • Friday, October 24, 2003
  • Friday, November 7, 2003
  • Friday, November 21, 2003
  • Friday, December 5, 2003
  • Wednesday, December 17, 2003
  • Monday, December 22, 2003
  • Friday, December 26, 2003 - Tentative Final Load

Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency directory on the first working day following the above listed scheduled dates. Agencies should access the TAX910ER through Rapid Filer to review the report; a copy of the TAX910ER will be distributed to paper agencies. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2's for 2003 are complete, a final KTXPR55 report will be generated for each agency's information and review.

In addition, the Regent's institutions will receive the report KTAX900 in their agency directory. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.

Regent's institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.

DB:JJM:rdb

 

03-P-034 Savings Bonds Holding Periods
DATE: January 23, 2003
SUBJECT: Savings Bonds Holding Periods
EFFECTIVE DATE: February 1, 2003
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Minimum Holding Period for Series EE and I Savings Bonds is being extended to 12 months

The Federal Reserve Bank of Kansas City has notified Payroll Services that effective February 1, 2003 the holding period for newly issued Series EE and I U.S. Savings Bonds will be extended from six months to 12 months. Therefore, Series EE and I Savings Bonds with a February 2003 or later issue date cannot be redeemed until they are at least 12 months old. In addition, Series EE Savings Bonds with a February 2003 or later issue date cannot be exchanged for Series HH Savings Bonds until they are 12 months old. Although the extension of the holding period pertains to both Series EE and I Savings Bonds, agencies are reminded that only Series EE Savings Bonds are available through payroll deduction for State of Kansas employees. The information concerning the I Bonds is being shared for those employees who purchase I Bonds through some other mechanism.

Employees who have questions concerning this change are encouraged to visit the www.savingsbonds.gov web site or to contact the Kansas City Savings Bond Department at (800) 333-2919.

DB:JJM: rdb

03-P-035 KPERS Death and Disability Insurance Contributions
DATE: March 10, 2003
SUBJECT: KPERS Death and Disability Insurance Contributions
EFFECTIVE DATE: April 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2003 to June 30, 2003

HB 2026, passed in the 2003 legislative session and published in the Kansas Register on Thursday, March 6, 2003, suspends employer contributions for KPERS Death and Disability Insurance from April 1, 2003 to June 30, 2003. As a result of this legislation, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check issue date between April 1, 2003 and June 30, 2003. This moratorium will start effective with the pay period beginning March 16, 2003 and ending March 29, 2003, paid April 11, 2003. The moratorium will continue through the payroll period beginning May 25, 2003 and ending June 7, 2003, paid June 20, 2003. Please note that the KPERS Death and Disability Insurance contribution for off-cycle payrolls is calculated based on pay period end dates, so paycheck adjustments processed after April 1, 2003 for pay period end dates prior to March 29, 2003 will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.

Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between March 16, 2003 and June 7, 2003, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employee.

Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to Board of Regents retirement plans members who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(5). K.S.A. 74-4927a(5) specifically requires the "employee" to remit the required contribution while on leave without pay.

The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to April 1, 2003.

DB:JJM:rdb

03-P-036 Optional Group Life Insurance Rate Changes (Supersedes 00-P-032)
DATE: March 11, 2003
SUBJECT: Optional Group Life Insurance Rate Changes
EFFECTIVE DATE: July 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Optional Group Life Insurance Rate Changes

Please be advised that effective with coverage for the month of July, 2003, the Optional Group Life Insurance rates are changing as follows:  
 

Age at the Beginning
of the Calendar Year
Monthly Premium
per $1,000
Under 30 $0.06
30-34 $0.08
35-39 $0.10
40-44 $0.14
45-49 $0.20
50-54 $0.34
55-59 $0.51
60-64 $0.74
65-69 $1.27
70-74 $2.06
75 and Older $3.31

An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available will continue to be $200,000.00.

The new rates are effective with coverage for the month of July. Therefore, the July 18, 2003 paycheck (paycheck issued for the payroll period ending July 5, 2003) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month's coverage.

Along with the premium rate change, there is also a change to the age calculation for purposes of optional group life insurance. Currently, age is calculated based on the employee's attained age as of the payroll period. Effective with the new premium rates, age will be calculated based on the employee's attained age as of January 1st of the current calendar year.

The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to July 1, 2003.

DB:JJM:rdb

03-P-037 Change in Organizational Dues Deduction Amounts for AFSCME Council 72 (Supersedes 02-P-036 and 03-P-001)
DATE: April 22, 2003
SUBJECT: Change in Organizational Dues Deduction Amounts for AFSCME Council 72
EFFECTIVE DATE: Payroll Period Beginning April 27, 2003 and Ending May 10, 2003, Paid May 23, 2003
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, 1469, 1715 and 3371

Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Locals 1270 (ORG270), 1357 (ORG357), 1469 (ORG469), and 1715 (ORG715) will be increased to $11.46. In addition, the dues for Local 3371 (ORG371) will be increased to $13.82. Therefore, the organizational dues deduction amounts for the AFSCME locals will be as follows effective with the on-cycle paychecks dated May 23, 2003:  
 

Deduction Code Union Dues Deduction
ORG270 Local 1270 $11.46
ORG357 Local 1357 $11.46
ORG371 Local 3371 $13.82
ORG469 Local 1469 $11.46
ORG715 Local 1715 $11.46

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

DB:JJM:eb

03-P-038 Change in Organizational Dues Deduction for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES) (Supersedes 98-P-025)
DATE: May 6, 2003
SUBJECT: Change in Organizational Dues Deduction for the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES)
EFFECTIVE DATE: Payroll Period Beginning May 11, 2003 and Ending May 24, 2003, Paid June 6, 2003
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organizational Dues Change for ORG980

The organizational dues for members of the Kansas Chapter of the International Association of Personnel in Employment Security (IAPES), deduction code 'ORG980', will change from $1.54 to $2.00 per biweekly payroll period. The new rate will become effective with the payroll period beginning May 11, 2003 and ending May 24, 2003, paid June 6, 2003.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after June 6, 2003.

DB:JJM:kao

03-P-039 SHARP Bi-Weekly Payroll Schedules for June-December 2003 (Supersedes 03-P-013)
DATE: May 9, 2003
SUBJECT: SHARP Bi-Weekly Payroll Schedules for June-December 2003
EFFECTIVE DATE: June 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: SHARP On-cycle and Off-cycle Payroll Processing Schedules for June - December 2003

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for June through December 2003. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period and the SHARP v8.0 conversion. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates and times indicated on the attached schedules to ensure timely issuance of pay for their employees.

Please note the following changes to the June 2003 processing schedule due to the SHARP v8.0 conversion:

  1. SHARP paper agencies must have their timesheets for the pay period ending June 7, 2003 to the Division of Accounts and Reports, Payroll Services by 5:00 p.m. on June 5, 2003.
  2. SHARP interface users must have their interface files for the pay period ending June 7, 2003 to the Division of Accounts and Reports, Payroll Services by 5:00 p.m. on June 6, 2003.
  3. The first preliminary on-cycle payroll calculation for the pay period ending June 7, 2003 will occur on June 9, 2003.
  4. The second preliminary on-cycle payroll calculation for the pay period ending June 7, 2003 will occur on June 10, 2003.
  5. The final on-cycle payroll calculation and confirmation for the pay period ending June 7, 2003 will occur on June 11, 2003. Regent's on-cycle files for the pay period ending June 7, 2003 are due to the Division of Accounts and Reports, Payroll Services at 6:00 a.m. on June 11, 2003.
  6. The Regents' on-cycle for the pay period ending June 7, 2003 will be processed on Thursday, June 12, 2003.
  7. SHARP and Regents' Run A off-cycles for the pay period ending June 7, 2003 will be processed on Friday, June 13, 2003. Agencies are reminded that this is their last opportunity to enter adjustment transactions into SHARP v7.02 for fiscal year 2003. Any adjustments after this date will have to be processed in SHARP v8.0 and will have to be entered by Division of Accounts and Reports, Payroll Services staff. Since there will be no Run B off-cycle for the pay period ending June 7, 2003 and all Run C off-cycle adjustment transactions will have to be entered by Payroll Services staff, agencies are strongly encouraged to have all possible adjustment transactions entered into the Run A off-cycle.
  8. Conversion to SHARP v8.0 is scheduled for June 14-17, 2003. No payroll processing will occur on these dates. Access to SHARP will be unavailable during this conversion. Agency access to SHARP v8.0 will be available beginning at 7:00 a.m. on Wednesday, June 18.
  9. There will NOT BE a Run B off-cycle for the pay period ending June 7, 2003.
  10. SHARP and Regent's Run C off-cycles for the pay period ending June 7, 2003 will occur on June 23, 2003. This is the final off-cycle for fiscal year 2003. SHARP agencies will be allowed to enter supplemental requests, however, all adjustment transactions will have to be submitted on Form DA-180 and entered by the Division of Accounts and Reports, Payroll Services staff.
  11. The first preliminary on-cycle calculation processed in SHARP v8.0 will occur on June 24, 2003.

With the conversion to SHARP v8.0, all SHARP agencies will perform their own Time and Leave entry beginning with the pay period ending June 21, 2003. SHARP agencies should complete Time and Leave entry for their employees by the On-Line Users Cutoff date listed on the schedule. For the pay period ending June 21, 2003, the Time and Leave entry should be complete by 6:00 p.m. on June 24, 2003.

For the remainder of the year, SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date of the date the off-cycle was processed. SHARP agencies have until 6:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night's off-cycle payroll. Agencies are reminded that any adjustments to SHARP v7.02 paychecks/advices will have to be performed by the Division of Accounts and Reports, Payroll Services staff.

Off-cycle payrolls for Regents' institutions are also normally scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle files. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payroll will be issued with the same check/advice date as the SHARP off-cycle processed on the same night.

DB:JJM:rdb

Attachment: SHARP bi-weekly on-cycle and off-cycle schedules for June through December 2003 (.pdf)  (Amended by 03-p-040) 

03-P-040 SHARP Bi-Weekly Payroll Schedule for June - December 2003 (Amends 03-P-039)
DATE: May 13, 2003
SUBJECT: SHARP Bi-Weekly Payroll Schedule for June - December 2003
EFFECTIVE DATE: June 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: SHARP On-cycle and Off-cycle Payroll Processing Schedules for June-December 2003

Agencies are advised that Informational Circular 03-P-039 erroneously scheduled the cutoff for Regents on-cycle files for the pay period ending June 21, 2003 at 6:00 a.m. on Friday, June 27, 2003. Due to the July 4th holiday, the Regents on-cycle files are due to the Division of Accounts and Reports, Payroll Services at 6:00 a.m. on Thursday, June 26, 2003, so the Regents on-cycle can process on Sunday, June 29, 2003 instead of Monday, June 30, 2003.

Please note that all other scheduled dates in the circular remain the same and updated schedules are attached.

DB:JJM:rdb

Attachment: SHARP bi-weekly on-cycle and off-cycle schedules for June through December 2003 (.pdf) 

03-P-041 Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle (Supersedes 02-P-042)
DATE: May 14, 2003
SUBJECT: Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle
EFFECTIVE DATE: January 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Information Concerning Employee Use of State-Owned Vehicles

The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated, Kansas Administrative Regulations, and Executive Order 03-04.

BACKGROUND

In general, an employee's personal (commuting) use of a state-owned vehicle is a taxable fringe benefit. Commuting is defined as travel back and forth between the employee's residence and official workstation. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.

POLICY

K.S.A. 8-301 states that all state-owned vehicles are for official business only and may not be used for private business or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:

(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.

(1)(B) When the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God.

(1)(C) For trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.

K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the Secretary of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the determination that driving the vehicle home will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.

Please note, Executive Order 03-04, which became effective on April 1, 2003 directs the Secretary of Administration to amend the applicable Kansas Administrative Regulation governing commuting in a state vehicle to further restrict such travel. Effective April 1, 2003 and continuing until amendment of the Kansas Administrative Regulation governing commuting, the head of each executive branch state agency under the jurisdiction of the Governor shall prohibit commuting in state vehicles by employees of that agency except under the circumstances listed below:

  1. The vehicle is marked as a law enforcement vehicle and is used by an employee certified as law enforcement officer under the provisions of K.S.A. 74-5601 et seq.
  2. The vehicle is used to commute by an employee who is determined by the Secretary of Administration to be required to respond to reoccurring public safety emergencies under specified circumstances that make commuting in a state vehicle cost effective.
  3. The vehicle is assigned to the employee on a trip basis only and driving the vehicle to the employee's residence will not increase the total one-way trip mileage between the official workstation and the destination by more than 10 miles.
  4. The vehicle is assigned for use in the state vanpool program under K.S.A. 75-46a02 et seq.
  5. The vehicle is used to transport the Governor or other elected official when the Superintendent of the Highway Patrol determines using the state vehicle is a necessary security measure.

Kansas Administrative Regulation 1-17-2(b)(1) and the Administrative Guidelines For Commuting Under Executive Order 03-04 allows field employees, such as inspectors, to commute between the field employee's residence and work sites in a state-owned or leased vehicle when the employee's residence is designated as the official work station. The employee's residence can be designated as the official workstation when over 50% of the employee's work time involves direct travel from his or her residence.

Please note that meeting the Kansas Administration Regulation or Executive Order 03-04 requirements to commute with the state-owned vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of the vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle (listed in Appendix D) or the employee's residence meets the IRS's 'principal place of business' test discussed below.

PRINCIPAL PLACE OF BUSINESS TEST

Field employees generally do not report fringe benefit income for official travel between the employee's residence and work sites. To be excluded from the IRS's fringe benefit income reporting requirements, the employee's residence must qualify as the employee's 'principal place of business'. A principal place of business is defined as a place of business which is used by the taxpayer for the administrative or management activities of a trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business. If the employee works both out of his or her home (because it has been designated as the official work station) and has a state provided office, the employee's principal place of business needs to be determined by examining all the facts and circumstances.

AGENCY RESPONSIBILITY

Agencies shall identify and notify those employees who use state-owned vehicles and who park those vehicles overnight at their residences (commuting) that the commuting use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS discussed in Appendix A unless the vehicle is listed in Appendix D or the employee's residence meets the 'principal place of business test'.

Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include, at a minimum, the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).

Agencies shall provide the payroll system with reports and data to:

  1. Record fringe benefit income chargeable to each affected employee.
  2. Calculate and withhold from each affected employee's pay the Social Security, Medicare and retirement contributions due.
  3. Calculate and withhold from each affected employee's pay the federal and state income tax due.
  4. Calculate the employer's share of Social Security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
  5. Remit all withheld taxes and contributions to the appropriate authorities.
  6. Report on each affected employee's W-2, the total fringe benefit income for the calendar year.

DB:JJM:rdb

Attachment: Appendix A through Appendix D (.pdf)

03-P-042 Suggestion Award Earnings Codes
DATE: May 14, 2003
SUBJECT: Suggestion Award Earnings Codes
EFFECTIVE DATE: May 1, 2003
CONTACT: Carla Johnston
Kathy Ogle
(785) 296-2588
(785) 296-2290
carla.johnston@state.ks.us
kathy.ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Suggestion Award SHARP Earnings Codes

Senate Bill 429 of the 2002 Legislative Session required state agencies to establish and administer an Employee Suggestion Program through which state employees submit suggestions for cost reductions in their respective agency through increased efficiencies or other economies or savings in the operations of the state agency.

House Bill 2369 of the 2003 Legislative Session amended the suggestion award requirements to allow payment of an innovation suggestion award upon adoption of the employee suggestion by the agency. This innovation suggestion award will be in the amount of 2.5% of the estimated cost reduction, as certified by the agency's chief fiscal officer and the agency appointing authority, up to a maximum of $3,500. Each employee with an adopted suggestion would also be paid an employee suggestion bonus. This bonus amount would be the difference between the innovation suggestion award received by the employee and 10% of the documented cost reduction during the first 12 months after implementation of the suggestion, as documented to the division of the budget, up to a maximum employee suggestion bonus of $37,500.

Guidelines have also been established to allow agencies to award a Kansas Savings Incentive Program (KSIP) bonus payment, not to exceed $3,500, to employees whose suggestions are implemented, but do not result in a cost reduction for their agency.

All awards given under the Employee Suggestion Program are nondiscretionary which means the award must be included in the employee's regular rate for calculating overtime compensation. Suggestion awards are included in taxable gross income and are subject to all applicable taxes and employer contributions. These include federal and state withholding taxes, OASDI, Medicare, Unemployment Compensation Insurance, Workers Compensation Insurance, and State Leave Assessment. These awards are not subject to deductions under the Kansas Public Employees Retirement System (KPERS).

The following earnings codes will be added to SHARP to accommodate suggestion awards:

Earnings Code Description
(Upon adoption of the suggestion, these two codes are used:)
ISA* Award-Innovation EE Suggestion
IAO Overtime-Award-Innovation EE Sug
(After 12 months have elapsed from the date of suggestion adoption, these codes are used depending on the actual cost reduction:)
ESP* Award-Employee Suggestion
EPO Overtime-Award-EE Suggestion
ESN* Award-EE Sugg-No cost reduction
ENO Overtime-Award-EE Sugg-NCR
* These codes should be entered in SHARP on the Bonus Pay page, NOT on the timesheet. The system will default the IAO, EPO, ENO earnings codes into the timesheet, if applicable.
Two earnings codes will be inactivated due to the legislation:
SU1 Suggestion Award-Supervisor
SUG Suggestion Award

Due to system constraints during the SHARP upgrade to V.8, please contact Accounts and Reports, Payroll Section, if an Innovation Suggestion Award must be paid prior to the pay period beginning June 8, 2003.

Complete Employee Suggestion Program guidelines, procedures, and sample forms are available on the Division of Personnel Services website located at: http://www.da.ks.gov/ps/subject/award/. 

The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding these earnings codes in the SHARP system. Regents' Institutions are responsible for ensuring these earnings codes are available on their individual systems.

DB:JJM:ckj

03-P-043 Fiscal Year End Payroll Processing for FY 2003 (Supersedes 02-P-043)
DATE: May 15, 2003
SUBJECT: Fiscal Year End Payroll Processing for FY 2003
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 joyce.dickerson@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Summary of Fiscal Year End Payroll Processing

This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular regarding the fiscal year 2004 payroll contribution rates will be issued as soon as the information is available.

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments that are processed for pay periods ending on or before June 7, 2003 will use fiscal year 2003 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 7, 2003 will use fiscal year 2004 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.

Tax Rates

Taxes for supplementals and adjustments will be calculated using the tax rates effective for the paycheck issue date for the off-cycle payroll being processed. Taxes include: OASDI (Social Security), Medicare, federal withholding tax, state withholding tax, local withholding tax, and unemployment compensation insurance. Note for Regents: the use of the 'current' UCI rate for calculation purposes does not replace the reporting requirements for prior period adjustments necessary for quarterly UCI reporting.

Fiscal Year Expenditure Impact

Supplementals and adjustments (with the exception of reversals) will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. For example, the Run A off-cycle (processed June 13, paid June 20) and the Run C off-cycle (processed June 23, paid June 26) for the pay period ending June 7, 2003 will be charged to fiscal year 2003 expenditures. The Run A off-cycle (processed June 30 paid July 3) for the pay period ending June 21, 2003 will be charged to fiscal year 2004 expenditures.

Agencies are reminded that there is no Run B off-cycle for the pay period ending June 7, 2003 due to the SHARP v8.0 conversion.

Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run C off-cycle scheduled for June 23, 2003 (paid June 26) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2003 expenditures. Please note that the Run C off-cycle is the first off-cycle payroll to be processed in SHARP v8.0. SHARP agencies may enter supplemental requests for the payroll period ending June 21 into the Run C off-cycle, but are reminded that in SHARP v8.0 all adjustment/reversal transactions to SHARP v7.02 paychecks/advices will have to be entered by the Division of Accounts and Reports, Payroll Services staff. DA-180 forms for adjustments or reversals which cannot be entered by agencies should be submitted to Payroll Services by noon on Monday, June 23, 2003 in order to allow sufficient time for processing by Payroll Services staff. Payroll Services cannot ensure that DA-180 forms received after the noon deadline on June 23 will be processed in time to be included in the Run C off-cycle.

Once the Run C off-cycle for the period ending June 21, 2003 (processed July 7, paid July 10) has been processed, agencies should not request or process paycheck reversals until STARS FY 2003 closing has been successfully completed. STARS is scheduled to resume processing July 22, 2003.

The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.

Budget End Date and Fiscal Year Changes

With the implementation of SHARP v8.0, the Budget End Date and Fiscal Year on the Department Budget tables will be updated as part of the conversion process. In that process a new row will be added to the Department Budget tables with an effective date of 06/08/2003 (beginning date of the first on-cycle payroll charged to FY2004). The Budget End Date will be 06/07/2004. When adding new rows for FY2004, agencies should verify that 06/07/2004 was used as the Budget End Date for FY2004.

GHI Adjustments

As of July 1, 2003, NO payroll processing for GHI adjustments should be made for contract year 2001. Contact Judy Allman in the Division of Personnel Services at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 2001.

Julian Date Reset

The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2003. The Julian date used for the off-cycle's document number is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's check issue date. For example (assuming processing occurs before midnight), the Run C off-cycle for the pay period ending June 7, 2003 (processed June 23, paid June 26) will have 358 as the Julian date in the document number and expenditures will be charged to fiscal year 2003. The Run A off-cycle for the pay period ending June 21, 2003 (processed June 30, paid July 3) will have 365 as the Julian date in the document number and expenditures will be charged to fiscal year 2004. The Run B off-cycle for the pay period ending June 21, 2003 (processed July 2, paid July 7) will have 002 as the Julian date in the document number and expenditures will be charged to fiscal year 2004.

Regents' Institutions Responsibilities

Regents' institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2004.

Reminders

To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:

  1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls are created on the Tuesday night following the end of the payroll period. Any changes to the employee's job data information (i.e., pay grade, rate of pay, FLSA status, etc.) that are entered after the creation of the paysheets will not be reflected in the employee's on-cycle paycheck for the period and will require special handling.

    Please note that due to the conversion to SHARP v8.0 during the month of June, the first preliminary pay calculation for the on-cycle pay period beginning May 25 and ending June 7, paid June 20, 2003 will occur on Monday, June 9. The final calculation and confirm for this on-cycle will occur on Wednesday, June 11.

  2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The KPAY002 report can be used to review the gross-to-net data. On-line agencies can review employer contributions by accessing the employee's paycheck deduction information for the period. Employer contributions have a deduction class of 'N'.

DB:JJM:rdb

03-P-044 Parking Fee Increase - Curtis Building Garage (Supersedes 03-P-004)
DATE: May 28, 2003
SUBJECT: Parking Fee Increase - Curtis Building Garage
EFFECTIVE DATE: Payroll Period Beginning June 8, 2003 and Ending June 21, 2003, Paid July 3, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Parking Fee Increase - Curtis Building Garage

Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective July 1, 2003. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $21.61 per bi-weekly pay period effective with the payroll period beginning June 8 and ending June 21 paid July 3, 2003. The associated administrative fee code PKAD05 increases to $1.65 ($21.61 X .0765). Employees with the Department of Commerce and the Board of Accountancy who park in the Curtis Building Garage will see parking deduction codes PKT10B and PPKT10 increased to $10.80 per bi-weekly pay period. Administrative fee code PKAD07 increases to $0.83 ($10.80 X .0765).

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

DB:JJM:rdb

03-P-045 Housing, Food Service and Other Employee Maintenance (Supersedes 02-P-045)
DATE: May 28, 2003
SUBJECT: Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE: July 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9

Attached is Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates for fiscal year 2004 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component.

Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents' are responsible for updating any rate changes into their payroll system.

DB:JJM:rdb

Attachment:  DA-171 (.pdf)    

03-P-046 New Federal Withholding Tax Tables (Supersedes 03-P-022)
DATE: June 3, 2003
SUBJECT: New Federal Withholding Tax Tables
EFFECTIVE DATE: July 1, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After July 1, 2003.

Due to the new federal tax legislation signed into law on May 28, 2003, the Internal Revenue Service (IRS) has issued new federal percentage tables for computing the federal withholding tax deductions. In addition, the new legislation instructs employers to reduce the supplemental flat withholding rate from 27% to 25%. Finally, the value for one withholding exemption increases from $3050.00 to $3100.00 per year. Employers are encouraged to use the new tables as soon as the tables can be worked into their payroll systems, but not later than July 1, 2003. The Division of Accounts and Reports Payroll Systems Team will implement the changes listed above effective with the pay period beginning June 8, 2003 and ending June 21, 2003, paid July 3, 2003.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after July 1, 2003. When calculating federal withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax tables and supplemental wage withholding rate in their respective payroll systems for paychecks issued on or after July 1, 2003.

DB:JJM:rb

Attachment: Schedule A 

03-P-047 Voluntary Tax Sheltered Annuity Company Remittance Change
DATE: June 5, 2003
SUBJECT: Voluntary Tax Sheltered Annuity Company Remittance Change
EFFECTIVE DATE: May 9, 2003
CONTACT: Abby Moore (785) 296-2133 abby.moore@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Banking Information for Wire Transfers to ING

Payroll Services has been notified that the bank account and routing number for processing the voluntary tax sheltered annuity remittance wire transfer to ING (VTSA #024) has changed. The new account/routing numbers are effective for all wire transfers made on or after May 9, 2003. Each Regents Institution should have already received correspondence from ING advising them of the new banking information. If no correspondence has been received, Regents can contact Abby Moore in Payroll Services to obtain the banking information to be used for the wire transfer.

Vendor number 710294708-01 in STARS has been updated to reflect the new bank information.

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

DB:JJM:rdb

03-P-048 New Earnings Codes
DATE: June 12, 2003
SUBJECT: New Earnings Codes
EFFECTIVE DATE: June 8, 2003
CONTACT: Carla Johnston
Kathy Ogle
(785) 296-2588
(785) 296-2290
carla.johnston@state.ks.us
kathy.ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Earnings Codes

Executive Order 03-340 establishes a new premium pay of $.75 per hour effective June 8, 2003. This premium is only available for use by the Kansas Highway Patrol (Agency 280).

The following earnings code will be added to SHARP for this premium:

Earnings Code Description
S11 Shift 11-KHP-$.75

Upon conversion to v8.0 effective June 8, 2003, functionality for entering some shift pay will change. Functionality for rate shift codes (i.e., SF1, SF5, SF6, SF7, SF9, S10, S11, SK1, SK2, ST1, and ST2) that have an amount associated with them will remain unchanged in v.8.0. These earnings codes should continue to be entered directly on the timesheet.

Factor shift code entry will be changing in v.8.0. The current factor shift codes (i.e., SF3, PD1, PD2, and PD3) that have a percentage associated with them will be inactivated and two new earnings codes will be added for each current code. This change will take advantage of delivered functionality and will allow elimination of some system modifications and table maintenance.

The following earnings codes will be added to effective June 8, 2003 to accommodate this shift pay change:

Earnings Code Description Replaces Earnings Code
(These 'hours' codes should be entered on the employee's timesheet at the time of other time and leave entry.)
P1H Pay Diff Hours-Corrections-10% PD1
P2H Pay Diff Hours-JJA-Lead Wrkr-5% PD2
P3H Pay Diff Hours-JJA-Spec Unit-5% PD3
S3H Shift 3 Hours-10% SF3
(These 'pay' codes will be added ONE TIME to the Additional Pay page. As part of the conversion process for v8.0, these pay codes will be automatically added to the Additional Pay page for all employees who have received factor-based shift pay thus far in calendar year 2003. Agencies will be responsible for the necessary one time Additional Pay setup after the initial conversion.)
P1P Pay Diff Pay-Corrections-10% PD1
P2P Pay Diff Pay-JJA-Lead Wrkr-5% PD2
P3P Pay Diff Pay-JJA-Spec Unit-5% PD3
S3P Shift 3 Pay-10% SF3
Four earnings codes will be inactivated effective June 8, 2003 due to this shift pay change:
PD1 Pay Diff-Corrections-10%  
PD2 Pay Diff-JJA-Lead Worker-5%  
PD3 Pay Diff-JJA-Specialty Unit-5%  
SF3 Shift 3  

Both the 'hours' and the 'pay' shift earnings codes will update the paycheck. The 'hours' earnings codes will contain an amount equal to the shift hours entered on the timesheet times the employee's hourly rate of pay. This amount will not add to gross pay. The 'pay' earnings codes will reflect the amount that adds to gross pay (which is the 'hours' amount times the factor associated with that shift).

Earnings codes that are inactive cannot be entered on timesheets for pay periods ending after June 7, 2003. Paychecks that contain an inactive code cannot be adjusted through the reversal/adjustment process, as payroll error messages will result. In these situations, the adjustment request should be submitted to Accounts & Reports, Payroll Services on a Form DA-180, Paycheck Reversal/Supplemental/Adjustment. As a reminder, paychecks converted from v.7.02 can not be adjusted through the reversal/adjustment process in v.8.0. Therefore, all adjustments for converted paychecks should be submitted to Accounts and Reports.

Earnings code descriptions have also been revised to be more descriptive and easier to use effective with the upgrade to v.8.0. An updated earnings code listing will be available on the website located at: http://www.da.ks.gov/sharp/documents/default.htm beginning the week of June 16, 2003.

The Division of Accounts and Reports, Payroll Systems Team, is responsible for updating these earnings codes in the system. Regents' Institutions are responsible for ensuring these code changes are updated in their individual systems.

DB:JJM:ckj

03-P-049 Fiscal Year 2004 Payroll Contribution Rates (Supersedes 03-P-002 & 03-P-035)
DATE: June 12, 2003
SUBJECT: Fiscal Year 2004 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 8, 2003
CONTACT: Roger Basinger (785) 296-5387 roger.basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: -Fiscal Year 2004-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans
-KPERS Death and Disability Moratorium

The attached schedules contain listings of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2004. The rates for fiscal year 2004 will become effective with the on-cycle payroll period beginning June 8, 2003 and ending June 21, 2003 paid July 3, 2003. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for the remainder of calendar year 2004.

HB 2014, passed in the 2003 legislative session, extends to June 30, 2004 the moratorium of employer's contributions for KPERS Death and Disability Insurance originally scheduled to end on June 30, 2003. Because of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between April 1, 2003 and June 30, 2004. This procedure will be effective with the pay period beginning March 16, 2003 and ending March 29, 2003 paid April 11, 2003 through the pay period beginning May 23, 2004 and ending June 5, 2004 paid June 18, 2004. Agencies are reminded that a moratorium of employer's contributions for KPERS Death and Disability has occurred for pay periods with original check dates between April 1, 2000 to December 31, 2001, between July 1, 2002 to December 31, 2002, and between April 1, 2003 to June 30, 2004. Please note that KPERS Death and Disability Insurance for off-cycles is calculated based on pay period end dates, so paycheck adjustments for pay period end dates with an original check date not in a moratorium period will continue to have the contributions remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.

Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP for new employees hired between March 16, 2003 and June 5, 2004 even though the agency will not be charged for KPERS Death and Disability contribution. In SHARP v8.0, the appropriate 'GTL' code will be entered in Compensate Employee (Menu Group), Administer Base Benefits (Menu), Use (Menu Item), and Retirement Plan (Component). If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the employee.

Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to Board of Regents retirement plans members who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(5). K.S.A. 74-4927a(5) specifically requires the "employee" to remit the required contribution while on leave without pay.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2004.

DB:JJM:rdb

Attachments (.pdf)

03-P-050 Voluntary Tax Sheltered Annuity Company Changes (Supersedes 03-P-020)
DATE: June 18, 2003
SUBJECT: Voluntary Tax Sheltered Annuity Company Changes
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 abby.moore@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Voluntary Tax Sheltered Annuity Company Changes

Payroll Services has been notified that the name for Anchor National Life Insurance Company (VTSA #059) has changed to AIG SunAmerica Life Assurance Company.

Vendor number 860198983-08 in STARS has been closed and remittances have been redirected to the new vendor number/suffix combination 860198983-00 for AIG SunAmerica Life Assurance Company.

In addition to the above name change, the Kansas Board of Regents has requested that Kemper Investors Life Insurance Company (VTSA #379) be removed from the list of approved providers for voluntary tax sheltered annuities. This company has no current subscribers and is deleted effective June 8, 2003 from the SHARP system.

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

DB:JJM:ntr

« Back

© 2024 Kansas Department of Administration. All rights reserved.