Kansas Department of Administration

FY 2005

05-P-001 Change in Organization Dues Deduction Amounts (Supersedes 04-P-002)
DATE: July 13, 2004
SUBJECT: Change in Organization Dues Deduction Amounts
EFFECTIVE DATE: Payroll Period Ending September 11, 2004
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
APPROVAL: 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 August 29, 2004 and ending September 11, 2004, paid September 24, 2004 as follows:
 

Deduction Code Hourly Rate of Pay Bi-Weekly Salary Dues Deduction
ORG001 $ 7.35 or Less $ 588.00 or Less $ 7.60
ORG002 $ 7.36 - $ 8.51 $ 588.80 - $ 680.80 $ 8.10
ORG003 $ 8.52 - $ 9.39 $ 681.60 - $ 751.20 $ 8.60
ORG004 $ 9.40 - $ 10.35 $ 752.00 - $ 828.00 $ 9.10
ORG005 $ 10.36 - $ 11.41 $ 828.80 - $ 912.80 $ 9.60
ORG006 $ 11.42 or Greater $ 913.60 - or Greater $10.10
ORG888 KU Medical Center - Nurses $10.10
ORG 018 & 019 KU - Graduate Teaching Assistants $ 8.30

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 24, 2004.

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05-P-002 Addition of Earnings Code 'SK4'
DATE:

August 4, 2004

SUBJECT:

Addition of Earnings Code 'SK4'

EFFECTIVE DATE:

July 18, 2004

CONTACT

Kathy Ogle

(785) 296-2290

Kathy.Ogle@da.state.ks.us

APPROVAL image of approval signature
SUMMARY

Addition of Earnings Code 'SK4'

 

The Memorandum of Agreement for Graphic Communications Union No. 49C, AFL-CIO establishes a new premium pay of $.55 per hour for eligible employees. This premium is only available for use by the Department of Administration-Division of Printing. The new earnings code will be effective for the payroll period beginning July 18, 2004; ending July 31, 2004; paid August 13, 2004, will add to gross earnings and will be displayed as follows:
 

Earns Code Description Rate
SK4 Skill Differential 4-Press Rm $.55

The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system.

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05-P-003 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (Supersedes 04-P-001)
DATE: August 12, 2004
SUBJECT: Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30
EFFECTIVE DATE: Payroll Period Ending August 28, 2004
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: 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 $23.30 to $24.05 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 15, 2004 and ending August 28, 2004, paid September 10, 2004.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 10, 2004.

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05-P-004 New Parking Rates for Wichita State Office Building Garage and Surface Lot (Supersedes 01-P-006)
DATE: September 3, 2004
SUBJECT: New Parking Rates for Wichita State Office Building Garage and Surface Lot
EFFECTIVE DATE: Payroll Period Beginning September 12, 2004 and Ending September 25, 2004, Paid October 8, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Parking Rates for Wichita State Office Building Garage and Surface Lot

Due to a change in contract costs, parking rates will increase for the Wichita State Office Building garage and surface lot. Effective with the payroll period beginning September 12, 2004 and ending September 25, 2004, paid October 8, 2004, parking deduction codes PKW01C and PPKW01 will be $11.54 per bi-weekly pay period. Parking deduction codes PKW02A and PPKW02 will be $6.92 per bi-weekly pay period, and parking administrative fee codes PKAD02 and PKAD03 will be $.88 and $.53 respectively, per bi-weekly pay period.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change. Regents' institutions are responsible for updating the rates in their individual systems.

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05-P-005 Addition of New Parking Codes for KPERS Building Garage
DATE: September 17, 2004
SUBJECT: Addition of New Parking Codes for KPERS Building Garage
EFFECTIVE DATE: Payroll Period Beginning September 12, 2004, Ending September 25, 2004, and Paid October 8, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Parking Codes for KPERS Building Garage

Pursuant to the lease agreement executed by the Kansas Housing Resource Corporation for parking spaces in the KPERS Building Garage, parking deduction codes APKA12, PPKA12, and PKAD14 are being added to SHARP. Parking codes APKA12 (after tax) and PPKA12 (pre-tax) will both result in an employee bi-weekly parking deduction of $10.38. Employees enrolled in parking deduction code, PPKA12, will also need to be enrolled in parking administrative fee code PKAD14. Parking code PKAD14 will result in an employer bi-weekly contribution of $.79. These parking codes are effective with the pay period beginning September 12, 2004, ending September 25, 2004, and paid October 8, 2004.

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

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05-P-006 Voluntary Tax Sheltered Annuity Company Name Change
DATE: September 24, 2004
SUBJECT: Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE: Immediately
CONTACT: Abby Moore (785) 296-2133 Abby.Moore@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified that the Equitable Life Assurance Society of the Untied States (VTSA Company 186) has changed its name to the AXA Equitable Life Insurance Company. To facilitate the name change, the Savings Investment Table in SHARP was updated. In addition, the STARS Vendor Table was updated with the new company name for vendor numbers 135570651 00 through 135570651 02.

The Division of Accounts and Reports, Payroll Systems Team has made the name update to the SHARP payroll system. Regents' institutions are responsible for updating this change in their individual systems.

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05-P-007 SHaRP Bi-Weekly Payroll Schedule for 2005 (Supersedes 04-P-017)
DATE: October 18, 2004
SUBJECT: SHARP Bi-Weekly Payroll Schedule for 2005
EFFECTIVE DATE: Calendar Year 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2005

Attached are the finalized SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2005.  The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.    

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

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

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Attachment: SHARP Bi-Weekly Payroll Schedule for Calendar Year 2005 (.pdf)

05-P-008 Change in Social Security Base Rate (Supersedes 04-P-018)
DATE: October 27, 2004
SUBJECT: Change in Social Security Base Rate
EFFECTIVE DATE: January 1, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Social Security Wage Base Increase to $90,000 effective January 1, 2005

The Social Security wage base for OASDI will be $90,000 for calendar year 2005. This is a $2,100 increase from the 2004 wage base of $87,900. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2005 will be $5,580.00. There continues to be no limit on wages subject to the Medicare tax in 2005. Medicare tax rates for employers and employees remain at 1.45%.

For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $5,580.00 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.

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

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

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05-P-009 Key Payroll Processing Dates in November 2004 (Supersedes 04-P-008)
DATE: October 27, 2004
SUBJECT: Key Payroll Processing Dates in November 2004
EFFECTIVE DATE: November 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Payroll processing schedule changes due to the November 2004 holidays.

Thursday, November 11, 2004 (Veterans' Day), Thursday, November 25, 2004 and Friday, November 26, 2004 (Thanksgiving Holiday) are designated holidays for state service in 2004. Due to the holidays in November, variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled.

Friday, November 5, 2004

Payday for the payroll period ending October 23, 2004.

Time and leave interface agencies must have time and leave files for the period ending November 6, 2004 submitted to the Department of Administration for processing by 5:00 PM on November 5, 2004 (these files would normally be due Monday, November 8, 2004).

Regents' Run C off-cycle payroll files for the period ending October 23, 2004 must be received by the Department of Administration by 5:00 PM on November 5, 2004.

Monday, November 8, 2004

Paysheets for the on-cycle payroll for the period ending November 6, 2004 will be created on Monday, November 8, 2004. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 8, 2004 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 6, 2004 will also occur November 8, 2004; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM.

The Run C off-cycle for the period ending October 23, 2004 will be processed November 8, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 12, 2004.

Tuesday, November 9, 2004

The second on-cycle preliminary pay calculation for the period ending November 6, 2004 will occur November 9, 2004.

Wednesday, November 10, 2004

The third on-cycle preliminary pay calculation for the period ending November 6, 2004 will occur November 10, 2004.

Thursday, November 11, 2004
(Veterans' Day Holiday)

Friday, November 12, 2004

Regents' on-cycle payroll files for the period ending November 6, 2004 are due to the Department of Administration by 6:00 AM on November 12, 2004.

Final pay confirmation for the on-cycle payroll for the period ending November 6, 2004 will occur November 12, 2004. All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 12, 2004 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 12, 2004 in order to be reflected in the final paycheck created for the employee.

Regents' Run A off-cycle payroll files for the period ending November 6, 2004 must be received by the Department of Administration by 5:00 PM on November 12, 2004.

Monday, November 15, 2004

The Run A off-cycle for the period ending November 6, 2004 will be processed November 15, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated November 19, 2004.

Tuesday, November 16, 2004

Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 6, 2004 will be posted to STARS during Tuesday night's STARS batch processing cycle.

Regents' Run B off-cycle payroll files for the period ending November 6, 2004 must be received by the Department of Administration by 5:00 PM on November 16, 2004 in order to be processed on Wednesday, November 17, 2004.

Wednesday, November 17, 2004

The Run B off-cycle for the period ending November 6, 2004 will be processed November 17, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 22, 2004.

Friday, November 19, 2004

Payday for the payroll period ending November 6, 2004.

Time and leave interface agencies must have time and leave files for the period ending November 20, 2004 submitted to the Department of Administration for processing by 5:00 PM on November 19, 2004 (these files would normally be due Monday, November 22, 2004).

Regents' Run C off-cycle payroll files for the period ending November 6, 2004 must be received by the Department of Administration by 5:00 PM on November 19, 2004.

Monday, November 22, 2004

Paysheets for the on-cycle payroll for the period ending November 22, 2004 will be created on Monday, November 22, 2004. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 22, 2004 in order to be reflected on the paysheets for this period.

The Run C off-cycle for the period ending November 6, 2004 will be processed November 22, 2004. SHARP agencies have until 6:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 29, 2004.

The first on-cycle preliminary pay calculation for the period ending November 20, 2004 will also occur November 22, 2004; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 6:00 PM. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 20, 2004.

Tuesday, November 23, 2004

The second on-cycle preliminary pay calculation for the period ending November 20, 2004 will occur November 23, 2004.

Wednesday, November 24, 2004

Final pay confirmation for the on-cycle payroll for the period ending November 20, 2004 will occur November 24, 2004 (Final pay confirmation would normally occur Friday, November 26, 2004). All employees' time and leave records must be 'OK to Process' by 6:00 PM on November 24, 2004 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 24, 2004 in order to be reflected in the final paycheck created for the employee.

Regents' on-cycle payroll files for the period ending November 20, 2004 are due to the Department of Administration by 6:00 AM on November 24, 2004.

Regents' Run A off-cycle payroll files for the period ending November 20, 2004 must be received by the Department of Administration by 5:00 PM on November 24, 2004.

Attached is a calendar for the month of November 2004, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/sharp/infolist.htm.

DB:JJM:rdb

Attachment: November calendar

05-P-010 Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2005 (Supersedes 04-P-022)
DATE: November 16, 2004
SUBJECT: Deferred Compensation and Voluntary Tax Sheltered Annuity Limits for Calendar Year 2005
EFFECTIVE DATE: January 1, 2005
CONTACT: Janice Wolfley (785) 296-3699 janice.wolfley@da.state.ks.us
Sunni Zentner (785) 296-7058 sunni.zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: 2005 Deferred Compensation and Tax Sheltered Annuity Limits

Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will increase effective January 1, 2005 as follows:

457(b) Deferred Compensation:

The Deferred Compensation annual contribution limit increases from the lessor of
$13,000 or 100% of includible compensation (2004 calendar year limit) to the lessor of $14,000 or 100% of includible compensation (2005 calendar year limit).

The Deferred Compensation special catch-up limit increases from $26,000 (2004 calendar year limit) to $28,000 (2005 calendar year limit). The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.

The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) increases the annual contribution limit by $4,000 (for 2005) to a total of $18,000.

Please note, the two different catch-up provisions cannot be used concurrently.

403(b) Tax Sheltered Annuities (TSA):

The limit on annual contributions to a TSA for 2005 is the lesser of $42,000 or 100% of compensation.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $205,000 (for 2004) to $210,000 (for 2005). The $210,000 dollar applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees who participation began after 1995). For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $21,000 ($210,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution). For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $29,400 ($210,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).

For employees participating in the Kansas Board of Regents' mandatory plan prior to 1996, participants are 'grandfathered' and use the annual compensation limit under Internal Revenue Code Section 401(a) (17). The 401(a) (17) limit is increased from $305,000 (for 2004) to $310,000 (for 2005). However, participants should note their maximum annual compensation limit will be $300,000, since the $300,000 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $42,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $13,000 (for 2004) to $14,000 (for 2005). In addition, the age 50 or older catch-up provision is increased from $3,000 (for 2004) to $4,000 (for 2005). Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on annual contribution by $4,000. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($14,000 for 2005) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.

Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).

Regents' institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees. Please note that this circular only provides a summary of the law in this area. Due to the complexity of the legislation and the unique circumstances of each employee, Regents' institutions are strongly encouraged to contact the 403(b) carriers to aid in determining limits in those cases which are outside the norm (the employee is near the limit on annual contributions, the employee is near the elective deferral limit, the employee wants to use the age 50 catch-up provision, or the employee wants to use the 15-year rule).

Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.

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05-P-011 Voluntary Tax Sheltered Annuity Companies' Merger and Name Change
DATE: November 17, 2004
SUBJECT: Voluntary Tax Sheltered Annuity Companies’ Merger and Name Change
EFFECTIVE DATE: Immediately
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: image of approval signature
SUMMARY: Voluntary Tax Sheltered Annuity Companies’ Merger and Name Change

Payroll Services has been notified that Aid Association for Lutherans (VTSA Company #064) and Lutheran Brotherhood (VTSA Company # 422) have merged. The new entity’s name and address is as follows:

Thrivent Financial for Lutherans
P.O. Box 8072
Appleton, WI 54912-9719

The Savings Plan Table in SHARP will continue to list both VTSA Company numbers, and both VTSA Company numbers will be updated with the company’s new name. In addition, the vendor table in STARS has been updated to reflect the new name and address. Remittances for both Company #064 and Company #422 should be sent to the above address effective immediately.

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

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05-P-012 Employee Taxability of State-Owned or Leased Vehicles (Revises 04-P-029)
DATE: November 19, 2004
SUBJECT: Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE: January 1, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2005

The Internal Revenue Service (IRS) has increased the mileage rate from 37.5 cents (for 2004) to 40.5 cents (for 2005) under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle. The new rate becomes effective January 1, 2005. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 40.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total mileage is used for the employer’s trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for ‘luxury’ vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2005 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $14,800. Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.

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

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05-P-013 December 2004 Payroll Processing (Supersedes 04-P-017)
DATE: November 30, 2004
SUBJECT: December 2004 Payroll Processing
EFFECTIVE DATE: Immediately
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: December 2004 Payroll Processing

As 2004 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2004 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2004 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2005 balances; a corrected W-2 (Form W-2C) for 2004 will not be issued for the employee involved.

FINAL 2004 PAYCHECK

The final on-cycle paychecks for calendar year 2004 will be issued December 30, 2004. Paychecks will be mailed on December 29, 2004. The final off-cycle paychecks for calendar year 2004 will also be issued on December 30, 2004 (generated from the off-cycle processed on December 27, 2004).

PAYCHECK REVERSALS

Any 2004 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 6:00 p.m. on December 27, 2004 to enter paycheck reversals. Any reversals entered after the 6:00 p.m. deadline on December 27, 2004 will update calendar year 2005 balances and will not be reflected in the employee's 2004 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 27, 2004 to enter paycheck adjustment requests for any 2004 paychecks. Adjustments processed in the December 27, 2004 off-cycle payroll will be reflected on the employee's 2004 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 2004 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Friday, December 17, 2004.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 17, 2004 for inclusion in the December 27, 2004 off-cycle. However, if a large volume of DA-180 forms is received on the December 17, 2004 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2004 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.

Adjustment requests entered after December 27, 2004 which are adjusting paychecks issued prior to January 1, 2005 will not result in a W-2C; the adjustment will update the employee's 2005 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2004 will update the employee's 2005 payroll balances.

REGENTS' INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 18, 2004, paid December 30, 2004 are due to the Department of Administration by 6:00 a.m. on December 22, 2004.

REGENTS' INSTITUTIONS: OFF-CYCLE FILES

2004 Paycheck Reversals

Regent Institutions must submit all transmittals for 2004 paycheck reversals by 5:00 p.m. on Thursday, December 23, 2004 in order to update the employee's 2004 W-2. These files should contain a 'C' indicating current year business and the pay adjust check date field should contain the original check issue date for the paycheck being reversed. Any paycheck reversals submitted after this date will update the employee's calendar year 2005 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2005 submitted after 5:00 pm on December 23, 2004 should default the pay adjust check date to January 1, 2005.

2004 Adjustments and Supplementals

In order to update employee balances for 2004, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Thursday, December 23, 2004.  The Run A off-cycle for the pay period ending December 18, 2004 generated on the night of Monday, December 27, 2004 will have a check issue date of December 30, 2004; all activity for this off-cycle will be reflected in the employees' 2004 W-2.  These files should contain a 'C' indicating current year business.  For supplementals and salary underpayments, the pay adjust check date should be blank; for all other adjustment types, the pay adjust check date field should contain the original paycheck issue date of the paycheck being adjusted and the date must be a 2004 date.

2005 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2005, any adjustments or supplementals submitted after 5:00 p.m. on Thursday, December 23, 2004, will be considered to be 2005 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2005 business, the employee's 2005 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2005 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2005, agencies should default the pay adjust check date to January 1, 2005).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2005, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2005 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2005 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2004 deadline for the December 27, 2004 Run A's off-cycle payroll will not be processed until the January 24, 2005 off-cycle payroll.  Since the files will be held, please do not begin submitting those files for processing until the week of January 18, 2005.  The deadline for submitting payroll interface files for the January 24, 2005 off-cycle is 5:00 p.m. on Friday, January 21, 2005.

GENERAL REMINDERS

United Way

The deduction END date on the general deduction panel for 2004 United Way contributions should be dated between December 5, 2004 and December 18, 2004 in order for the last 2004 deduction to be taken on the paycheck issued December 17, 2004 (for employees wanting to contribute for twenty-six paychecks).  A deduction END date between December 19, 2004 and January 1, 2005 should be entered for those employees wanting the last United Way deduction to be taken on the December 30, 2004 paycheck (for employees wanting to contribute for the twenty-seven paychecks).   Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly.  For calendar year 2005, agencies can enter a new row effective-dated between December 19, 2004 and January 1, 2005 in order for the first deduction for 2005 to be taken on the January 14, 2005 paycheck. 

Tax Information

Pursuant to IRS regulations, all employees claiming an exemption from federal withholding and/or the advanced Earned Income Credit (EIC) must file a new W-4 and/or W-5 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2004 to all SHARP employees who are exempt from federal withholding and/or who are receiving advanced EIC payments. Notifications will be sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at: https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications will be sent to the agency email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2005 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 17, 2004 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 20, 2004 to enter all paper W-4s and W-5s into the system.  Agency personnel are reminded that they also need to check the radio buttons 'New W-4 Received' and/or 'New W-5 Received' on the employee's 'Federal Tax Data 1' and 'Federal Tax Data 2' panels in SHARP for the effective-dated rows they enter.  Agency Workflow Administrators also need to check the radio button 'New W-4 Received' on the electronic W-4s submitted by the employee for calendar year 2005. 

The KPAY320 will be processed the evening of December 20, 2004.  This process searches for all employees for whom a W-4/W-5 email notification has been sent.  If a new W-4 and/or W-5 has not been received, a January 1, 2005 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2005 effective-dated row will update the employee's marital status to 'single' with zero exemptions and/or stop any advance EIC payments for paychecks with a 2005 pay date.  

For any 2005 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 20, 2004 and January 1, 2005, agency personnel will need to enter the data with a January 2, 2005 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2005 for any electronic W-4s received in this time period.      

The 2005 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS. 

The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 20, 2004 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has yet been submitted for calendar year 2005.  The new tax data row will be dated January 1, 2005.  Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2005 has been submitted.  A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

Deduction Information

All deductions for calendar year 2005 are biweekly except:

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

Arrearages/Advances

Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 27, 2004.  Please refer to the most recent PAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the PAY007 reports to determine collections will be made by calendar year-end.  For sufficiently large balances that cannot be collected in one sum, agencies should establish a deduction override as soon as possible so paycheck deductions can be made and the balance collected by the cut-off date for year-end processing.  Also, as adjustments are processed from now until the end of the year, please monitor any new arrearage balances and collect in an expedient manner. 

NOTE: Any arrearage collections made by personal reimbursement that are collected after December 23, 2004, and prior to December 27, 2004, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2004 W-2.

Agencies are reminded that advance ('ADV') earnings are being paid to employees in situations where the employee's earnings are not sufficient to cover certain deductions.  'ADV' earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected ('ADVNCE' deduction).  Any 'ADV' earnings paid to an employee in calendar year 2004 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year.  Agencies should collect any outstanding advances for payroll periods ending before December 18, 2004 by personal reimbursement as soon as possible.  

W-2s

Please note that if an employee has a mailing address on the SHARP Personal Data page, the mailing address will be used for mailing the W-2.  If the employee has no mailing address, then the home address will be used for mailing the W-2.  Since the majority of employees do not have a mailing address, most W-2's will continue to be mailed to the employee's home.  Please make any name, address, or social security number changes to the employee's Personal Data page by 6:00 pm on December 29, 2004 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 29, 2004 to update the Personal Data page, it is strongly recommended that these changes be made as soon as they are known.  Regent's Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2004.  Since the W-2 form can only accommodate 30 characters in Address 1 and Address 2, please limit your employees' address lengths.  Abbreviations should be used as needed to stay within the limit.

The W-2 programs will be executed anytime between December 29, 2003 and January 7, 2005.

W-2 forms will be mailed on or before January 31, 2005.  Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist.

December Calendar

Attached is a revised calendar for the month of December 2004 that highlights the key payroll processing activity.  This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular No. 05-P-007, dated October 18, 2004.  The attached calendar is intended for use as a supplementary reference tool to this informational circular.

If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist.  SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm.

Attachment: December Calendar

DB:JJM:rdb     

05-P-014 2005 Percentage Method Tables for Federal Tax Withholding (Supersedes 03-P-046)
DATE: December 10, 2004
SUBJECT: 2005 Percentage Method Tables for Federal Tax Withholding
EFFECTIVE DATE: January 1, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2005.

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2005. The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2005. In order to use the attached tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year. In addition, the value of one withholding allowance is increased to $3,200 for 2005.

IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually.  Employees are eligible for the exempt status if the following criteria are met:  1) the employee had no income tax liability in the previous years, and 2) the employee anticipates no income tax liability in the upcoming year. 

An e-mail notification was sent on December 1, 2004 to all SHARP employees who were exempt from federal withholding in 2004.  The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2005.  The notification was sent to the employee's e-mail address listed under 'Update My Profile' in the Employee Self Service Center at https://SHARP.state.ks.us/servlets/iclientservlet/ess/?cmd=login. Notifications were sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notification to their employees.  A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list. 

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2005 W-4s.  As of this date, the IRS has not issued the 2005 Form W-4 - Employee's Withholding Allowance Certificate.  Once the W-4 becomes available, notification will be sent to subscribers of the SHARP Infolist.  SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm.   

Employees should submit their new W-4s by December 17, 2004 to allow adequate time for processing.  Agency personnel have until 6:00 p.m. on December 20, 2004 to enter all paper W-4s into the system.  It is important that agency personnel check the 'New W-4 Received' radio button on the employee's 'Federal Tax Data 1' page in SHARP for the effective-dated row that is entered.  Agency Workflow Administrators also need to check the 'New W-4 Received' radio button on electronic W-4s submitted by the employee for calendar year 2005. 

The KPAY320 will process in the batch cycle generated the evening of December 20, 2004.  This process will search for employees for whom a W-4 notification was sent.  If a new W-4 has not been received, a January 1, 2005 effective-dated row will be placed in the employee Tax Data record, and will update the employee's marital status to 'single' and exemptions to 'zero'.  (Please note the KPAY320 process will also update the existing SHARP federal tax data records for all employees claiming the advance Earned Income Credit in 2004 in which the 'New W-5 Received' radio button is not checked.  The update will insert a January 1, 2005 effective dated row with an EIC Status of 'Not Applicable'.)  

For any Forms W-4s for 2005 (or Forms W-5s for 2005 for employees claiming the advanced EIC) received between December 21, 2004 and January 1, 2005, agency personnel will need to enter the data with a January 2, 2005 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 7, 2005 in order to be reflected in the on-cycle paycheck dated January 14, 2005.  Agency Workflow Administrators will also need to change the effective date to January 2, 2005 for any electronic Forms W-4s for 2005 received in this time period.  Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.    

IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually.  Employees who claimed a non-resident alien exempt status in calendar year 2004 must file a new 8233 form for calendar year 2005 if they wish to continue their non-resident alien status.  As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.   

The KPAY320 processed on December 20, 2004 will enter a new effective dated row in the SHARP federal tax data records for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2005.  The new tax data row will be dated January 1, 2005.  Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2005 has been submitted. 

The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status and/or EIC was updated in SHARP on the night of December 20, 2004. The report will be available in the agency directory on the MVS on Tuesday, December 21.  A report will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

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

DB:JJM:rb

Attachment:  Tables for Percentage Method of Withholding

05-P-015 New Advance Earned Income Credit Tables for 2005 (Supersedes 04-P-019)
DATE: December 10, 2004
SUBJECT: New Advance Earned Income Credit Tables for 2005
EFFECTIVE DATE: January 1, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL:
SUMMARY: New Advance Earned Income Credit Tables Effective for Paychecks Issued on or After January 1, 2005

The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for 2005.  The attached tables are to be used in computing all advance EIC payments for wages paid on or after January 1, 2005.  In order to use the attached tables, income must be annualized.  When annualizing income to calculate the advance EIC, multiply federal taxable income for the current bi-weekly pay period by the twenty-six pay periods in the year.

As of this date, the IRS has not released the 2005 Form W-5 - Earned Income Credit Advance Payment Certificate.  Once the 2005 W-5 becomes available, notification will be sent to subscribers of the SHARP Infolist.  SHARP users interested in subscribing to the Infolist, but who have no yet done so, can subscribe at http://www.da.ks.gov/SHARP/infolist.htm.    

The 2004 Form W-5 expires on December 31, 2004.  The 2005 Form W-5 must be filed with the employer before advance 2005 payments can begin.  Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments.  In addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect that 2005 earned and adjusted gross income will each be less than $31,030.00 for single employees or $33,030.00 if filing jointly (include spouse's income if filing jointly).  Employees cannot claim the EIC if planning to file either Form 2555 or Form 2555-EZ (relating  foreign earned income).  Finally, a nonresident alien may not claim the advance EIC for 2005 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2005.

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

An e-mail notification was sent on December 1, 2004 to all SHARP employees receiving advance EIC payments in 2004.  The notification reminded employees that a new Form W-5 must be submitted to continue the advance EIC payments in 2005.  The notification was sent to the employee's email address listed under 'Update My Profile' in the Employee Self Service Center at https://SHARP.state.ks.us/servlets/iclientservlet/ess/?cmd=login. The notification was sent to the agency e-mail address for those employees who lack an individual e-mail address, and agencies will need to distribute the notifications to their employees.  A list of agency employees receiving the notification was put into the Agency Payroll Workflow Administrator's work list.

Agency personnel have until 6:00 p.m. on December 20, 2004 to update SHARP with the new EIC information for all employees who submit a new paper Form W-5 for 2005.  It is important that agency personnel check the 'New W-5 Received' radio button on the employee's 'Federal Tax Data 2' page for the new effective-dated row that is entered. 

The KPAY320 will process in the batch cycle generated the evening of December 20, 2004.  This process will search for employees who were sent a W-5 notification.  If a new W-5 has not been received, a January 1, 2005 effective-dated row will be inserted in the employee's Tax Data record with an EIC status of 'Not Applicable'.  (Please note the KPAY320 process will also update all employees claiming exemption from withholding tax in 2004, if a new W-4 has not been received.  The update will place a January 1, 2005 effective-dated row in the employee's tax record with a marital status of 'single' and zero exemptions.)

For any Forms W-5 for 2005 (or Forms W-4 for 2004 for employees claiming exemption from withholding) received between December 21, 2004 and January 1, 2005, agency personnel will need to enter the data with a January 2, 2005 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Friday, January 7, 2005 in order to be reflected in the on-cycle paycheck dated January 14, 2005.  Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer Based Training) for specific instructions on entering employee tax data information and worklist maintenance.  

The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding and/or EIC status was updated in SHARP on the night of December 20, 2004.  The report will be available in the agency directory on the MVS on Tuesday, December 21.

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

DB:JJM:rdb

Attachment:  Advance Earned Income Credit Formulas

05-P-016 Addition of Earnings Code 'GLD'
DATE: December 15, 2004
SUBJECT: Addition of Earnings Code 'GLD'
EFFECTIVE DATE: December 19, 2004
CONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Addition of Earnings Code 'GLD'

The Sidebar Agreement for the Implementation and Compensation of the Bindery Group Leader Differential of the Graphic Communications Union No. 49C, AFL-CIO establishes a new premium pay of $1.00 per hour for eligible employees. The premium is only available for use by the Department of Administration-Division of Printing and is to be used to supplement the pay received by a Bookbinder Senior for the performance of lead worker duties in the Binder unit. Earnings Code 'GLD' has been added in SHARP to record the payment of the new group leader differential pay. The new earnings code will be effective for the payroll period beginning December 19, 2004 and ending January 1, 2005, paid January 14, 2005. GLD earnings will add to gross pay and will be displayed as follows:
 

Earns Code Description Rate
GLD Group Ldr Differential-Bindery $1.00

The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents' institutions are responsible for implementing the new earnings codes in their payroll systems.

DB:JJM:kao

05-P-017 Increase in Parking Fees for City of Topeka Parking Garages (Supersedes 03-P-024 & 03-P-031)
DATE: December 15, 2004
SUBJECT: Increase in Parking Fees for City of Topeka Parking Garages
EFFECTIVE DATE: Payroll Period Beginning December 5, 2004 and Ending December 18, 2004 Paid December 30, 2004
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Increase in Parking Fees for City of Topeka Parking Garages

Effective January 1, 2005, the City of Topeka is increasing its parking rates for all City parking garages. This rate increase will impact State of Kansas employees parking in the City's 512 Jackson garage and Centre City garage (9th and Kansas). The monthly parking rate for both facilities is increasing from $55.00 a month to $57.00 a month. The increases are effective with the payroll period beginning December 5, 2004 and ending December 18, 2004, paid December 30, 2004.

Due to the increase, the parking deduction for codes APKA02 and PPKA02 (used by the Department on Aging at 512 Jackson) is increasing from $13.85 per bi-weekly pay period to $14.77 per bi-weekly pay period. The related parking administrative fee code, PKAD04, will also increase from $1.06 per bi-weekly pay period to $1.13 per bi-weekly pay period.

The following parking deductions codes used for the Centre City garage will also increase: APKA07 and PPKA07 (used by the Department of Agriculture), APKA08 and PPKA08 (used by the Ethics Commission), APKA09 and PPKA09 (used by the Conservation Commission), and APKA10 and PPKA10 (used by the Kansas Water Office). The deduction for these codes is increasing from $25.38 per bi-weekly pay period to $26.31 per bi-weekly pay period. Parking administrative fee code PKAD11 is increasing from $1.94 per bi-weekly pay period to $2.01 per bi-weekly pay period.

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

DB:JJM:rdb

05-P-018 W-2 Wage and Tax Statements for Calendar Year 2004 (Supersedes 04-P-025)
DATE: January 6, 2005
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2004
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
Debbie Esquibel (785) 368-6313 Debbie.Esquibel@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Information Pertaining to Employee 2004 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2004 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency mailbox on the MVS with a date of December 30, 2004.

The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 2004 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 2004 W-2's.

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

The standard W-2 will once again be used for 2004. The standard W-2 conforms to our SHARP software, and aids in reducing programming costs for updating and maintaining custom programs in SHARP. The standard W-2 is one page, contains four copies (a copy to be used with the employees federal return, two copies that can be used for the employees state and local returns, and a copy for the employee records), and is pressure-sealed.

Agencies are reminded that the mailing address on the SHARP Personal Data 1 panel will be the primary address used for mailing the W-2. If the employee has no mailing address, then the employee's home address will be used for mailing theW-2. Most employees should continue to receive their W-2's at home, since the majority of employees do not have a mailing address. In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.

All 2004 W-2's, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 18, 2005. At that time, they should be sorted in alphabetical order by last name, first name, and middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.

In cases where the 2004 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.

For employees needing duplicate W-2's for years 2002 through 2004, agencies are strongly encouraged to recommend that employees use the 'W-2 Reissue Request' functionality found in Employee Self Service at https://sharp.state.ks.us/servlets/iclientservlet/ess/?cmd=login. After logging into the system and selecting 'W-2 Reissue Request', the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year (2004, 2003, or 2002) the reissued W-2 is needed. Duplicate W-2's for 2002 and 2003 are currently available, with duplicate W-2's for 2004 becoming available Monday, January 24, 2005.

The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2s for those employees who cannot access Employee Self Service. Requests for duplicate W-2's received by Payroll Services by noon of each Thursday will be processed Thursday evening and mailed the next day. Agencies need to verify the mailing addresses for the W-2's and submit the correct addresses to Payroll Services. Agencies are requested to submit one blanket request for duplicate 2004 W-2's for each printing. The requests should be in social security number order and should include each employee's name, employee ID, and correct mailing address in addition to the SSN. Requests for duplicate W-2's for years prior to 2004 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services at telephone number 785-368-6313 or via e-mail at Debbie.Esquibel@da.state.ks.us.

The W-2 form used prior to 2002 provided the employee a summary, which showed calculations for federal, state, social security, and Medicare grosses. This summary is no longer available using the standard functionality provided by our software. Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. In addition, on-line agencies may also consider utilizing the SHARP KPAY318, "Year to Date Balances' report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Compensate Employees / Maintain Payroll Data U.S. / Report / Year to Date Balances. Employee ID and year are required to run this report. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.

Please note that both on-cycle and off-cycle paychecks dated December 30, 2004 are included in the 2004 W-2 amounts.

DB:JJM:rdb

Attachments: 2004 W-2 Wage and Tax Statement Calculations (.pdf)
     Sample KPAY318.SQR (.pdf)

05-P-019 2005 W-2 Production Report Schedule (Supersedes 04-P-026)
DATE: January 6, 2005
SUBJECT: 2005 W-2 Production Report Schedule
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: 2005 W-2 Production Report Schedule

In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2005 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. The following is a list of the dates the 2005 W-2 production reports are scheduled to be generated:

  • Friday, February 11, 2005
  • Friday, March 11, 2005
  • Friday, April 8, 2005
  • Friday, May 6, 2005
  • Friday, June 3, 2005
  • Friday, July 1, 2005
  • Friday, July 29, 2005
  • Friday, August 26, 2005
  • Friday, September 23, 2005
  • Friday, October 21, 2005
  • Friday, November 4, 2005
  • Friday, November 18, 2005
  • Friday, December 2, 2005
  • Wednesday, December 14, 2005
  • Monday, December 19, 2005
  • Tuesday, December 27, 2005
  • Thursday, December 29, 2005 - Tentative Final Load

Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency mailbox on the MVS on the first working day following the above listed scheduled dates. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2's for 2005 are complete, a final KTXPR55 report will be generated for each agency's information and review.

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

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

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05-P-020 Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2 (Supersedes 98-P-022)
DATE: January 6, 2005
SUBJECT: Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2
EFFECTIVE DATE: Payroll Period Ending January 15, 2005
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organizational Dues Change for ORG060

The organization dues for members of the Fraternal Order of Police, Lawrence Lodge #2, deduction code 'ORG060', will change from $10.00 to $11.54 per biweekly payroll period. The new rate will become effective with the payroll period beginning January 2, 2005 and ending January 15, 2005, paid January 28, 2005.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 28, 2005.

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05-P-021 Establish Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59
DATE: January 11, 2005
SUBJECT: Establish Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59
EFFECTIVE DATE: Payroll Period Ending January 15, 2005
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Establish Organizational Dues for ORG059

The Kansas Game Wardens Fraternal Order of Police Lodge #59 has met the requirements of K.S.A. 75-5501(3)(b) for employee membership dues deductions. Therefore, a new deduction code, ORG059, is being added in SHARP to accommodate payroll deduction of membership dues to this organization. The deduction for member dues will be $10.00 per biweekly payroll period effective with the payroll period beginning January 2, 2005 and ending January 15, 2005, paid January 28, 2005.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this update in the SHARP system. Regent's institutions are responsible for ensuring this update is reflected in their individual systems and is effective for paychecks issued on or after January 28, 2005.

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05-P-022 Addition of New Parking Codes for Townsite Plaza Garage
DATE: January 26, 2005
SUBJECT: Addition of New Parking Codes for Townsite Plaza Garage
EFFECTIVE DATE: Payroll Period Beginning January 16, 2005, Ending January 29, 2005, and Paid February 11, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Addition of New Parking Codes for Townsite Plaza Garage

Pursuant to the lease agreement executed by the Kansas Real Estate Commission for parking spaces in the Townsite Plaza Garage, parking deduction codes APKA13 and PPKA13 are being added to SHARP. Parking codes APKA13 (after tax) and PPKA13 (pre-tax) will both result in an employee bi-weekly parking deduction of $9.23. Employees enrolled in parking deduction code, PPKA13, will also need to be enrolled in parking administrative fee code PKAD06. Parking code PKAD06 will result in an employer bi-weekly contribution of $.71. These parking codes are effective with the pay period beginning January 16, 2005, ending January 29, 2005, and paid February 11, 2005.

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

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05-P-023 Employee Taxability for the Personal (Commuting) Use of a State-Owned or Leased Vehicle (Supersedes 04-P-029)
DATE: February 16, 2005
SUBJECT: Employee Taxability for the Personal (Commuting) Use of a State-Owned or Leased Vehicle
EFFECTIVE DATE: January 1, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Information Concerning Employee Use of a State-Owned or Leased Vehicle

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

BACKGROUND

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

POLICY

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

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

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

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

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

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

  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 allow field employees, such as inspectors, to commute between the field employee's residence and work sites in a state-owned or leased vehicle when the employee's residence is designated as the official work station. The employee's residence can be designated as the official workstation when over 50% of the employee's work time involves direct travel from his or her residence.

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

PRINCIPAL PLACE OF BUSINESS TEST

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

AGENCY RESPONSIBILITY

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

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

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

  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.

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Attachments:
Appendix A - IRS APPROVED METHODS OF REPORTING FRINGE BENEFIT INCOME
Appendix B - STATEMENT OF PERSONAL USAGE FOR STATE PROVIDED VEHICLES (pdf)
Appendix C - DAILY TRAVEL LOG (pdf)
Appendix D - VEHICLES EXCLUDED FROM FRINGE BENEFIT INCOME REPORTING REQUIREMENTS

05-P-024 Increase in Parking Fees for Reserved Parking in Centre City Garage (Supersedes 05-P-017)
DATE: February 23, 2005
SUBJECT: Increase in Parking Fees for Reserved Parking in Centre City Garage
EFFECTIVE DATE: Payroll Period Beginning February 13, 2005 and Ending February 26, 2005 Paid March 11, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Increase in Parking Fees for Reserved Parking in Centre City Garage

Effective January 1, 2005, MBI, Inc. has increased its parking rates for all spaces leased from the City of Topeka. This rate increase impacts State of Kansas agencies with contracts for parking in the City Centre Garage. Payroll Services increased the parking fees for non-reserved spaces in December 2004. Unfortunately, Payroll Services was not informed until recently of MBI's increase to reserved parking spaces. The monthly parking rate for reserved spaces has increased from $66.00 a month to $68.00 a month. All employees who park in reserved spaces in the Centre City Garage under an agency agreement with MBI will see their parking deduction increase starting with the payroll period beginning February 13, 2005 and ending February 26, 2005, paid March 11, 2005.

The following parking deduction codes are effected by this increase: APKA57 and PPKA57 (used by the Department of Agriculture), APKA58 and PPKA58 (used by the Ethics Commission), APKA59 and PPKA59 (used by the Conservation Commission), APKA60 and PPKA60 (used by the Kansas Water Office), and APKA61 and PPKA61 (used by the Board of Technical Professions). The deduction amount for these codes will increase from $30.46 per bi-weekly pay period to $31.38 per bi-weekly pay period. Parking administrative fee code PKAD50 will increase from $2.33 per bi-weekly pay period to $2.40 per bi-weekly pay period.

The above noted deduction code changes have been entered in SHARP with a December 18, 2004 effective-dated row. Since notification of the parking rate increase was not received in time to implement the change effective with the December 30, 2004 paychecks, agencies have the following 3 options for collecting the amount due to MBI:

  1. Process paycheck adjustments for each effected employee for each of the five payroll periods in which parking was under withheld (payroll period ending December 18, 2004; period ending January 1, 2005; period ending January 15; period ending January 29; and period ending February 12).
  2. Collect the difference due directly from the employee and remit the amount owed to MBI. If the adjustment is not processed in SHARP, any adjustment for any other reason would also pick up the parking increase and could potentially create a refund situation.
  3. Pay the amount owed to MBI from agency funds.

If using Option 1 to collect the amount owed, it is important for agencies to remember that only one paycheck adjustment per employee can be processed in any given SHARP off-cycle payroll. Furthermore, agencies will not be able to utilize Option 1 in the event a paycheck requiring adjustment has previously been adjusted for another reason. In these instances, agencies should select from Option 2 or 3 or submit a DA-180 to Payroll Services for processing. Questions related to processing adjustments in SHARP should be directed to Joyce Dickerson at joyce.dickerson@da.state.ks.us at telephone no. 785-296-3979.

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

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05-P-025 Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions (Supersedes 04-P-023)
DATE: February 24, 2005
SUBJECT: Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions
EFFECTIVE DATE: Immediately
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Unemployment Compensation Insurance, Social Security (OASDI) and Medicare Exemptions

Kansas' law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). Likewise, the State's Section 218 Agreement with the Social Security Administration exempts others from Social Security (OASDI) and Medicare. This informational circular is being issued to clarify information previously issued and to assist agencies in properly establishing UCI, Social Security and Medicare tax coverage for employees.

Following is a list of exemptions from UCI. This list is not intended to be all-inclusive and addresses those exemptions most applicable to State of Kansas employees. The statutory reference is included:

Unemployment Compensation Insurance Exemptions (from K.S.A.):

  • Students, who are enrolled and regularly attending classes, in the employ of a college or university (K.S.A. 44-703 (i)(4)(N)).
  • Patients in the employ of a hospital licensed, certified or approved by the Secretary of Health and Environment (K.S.A. 44-703 (i)(4)(P)).
  • Services performed as part of an employment work relief or work training program assisted or financed in whole or in part by any federal agency or an agency of the state or political subdivision, by an individual receiving such work relief or work training (K.S.A. 44-703 (i)(4)(L)). (Does not apply to Employee Under Public Service Careers or the Emergency Employment Act of 1971.)
  • Ordained, commissioned or licensed ministers of a church in the exercise of their ministry or members of a religious order (who have taken a vow of poverty) in the exercise of duties required by such order (K.S.A. 44-703 (i)(4)(J)).
  • Individuals (patients, etc.) in a facility that's purpose is providing rehabilitation or remunerative work, who are impaired by age, physical or mental deficiency, or injury, or who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market (K.S.A. 44-703 (i)(4)(K)(i)(ii)).
  • Services performed in the employ of the United State Government (K.S.A. 44-703 (i)(4)(D)).
  • Elected officials (K.S.A. 44-703 (i)(4)(A)(i)).
  • Members of legislative bodies (K.S.A. 44-703 (i)(4)(A)(ii)).
  • Members of the judiciary or of a state or political subdivision (K.S.A. 44-703 (i)(4)(A)(ii)).
  • Members of the state national guard or air national guard (K.S.A. 44-703 (i)(4)(A)(iii)).
  • Employees serving on a temporary basis in cases of fire, storm, snow, earthquake, flood, or similar emergency (K.S.A. 44-703 (i)(4)(A)(iv)).
  • Employees in a position which, under or pursuant to the laws of this state, is designated as a major nontenured policymaking or advisory position or as a policymaking or advisory position the performance of the duties of which ordinarily does not require more than eight hours per week (K.S.A. 44-703 (i)(4)(A)(v)). (Note: Board member positions (for example, job code 010300) would be included in this group of employees.)
  • Inmates in the employ of a custodial or correctional institution (K.S.A. 44-703 (i)(4)(M)).

If an employee is on more than one concurrent position, and at least one of those positions is subject to UCI, then the Employee Tax Data should be set to "subject". UCI tax will have to be calculated and paid on all wages for that employee including positions that are not normally subject to UCI, such as board member pay.

Agency personnel are responsible for ensuring that employees are exempted from UCI as appropriate. Exemptions from UCI are entered in SHARP under Employee Tax Data (path: 'Compensate Employees', 'Maintain Payroll Data (US)', 'Use') on the State Tax Data 2 page by clicking "on" the 'Exempt From SUT' checkbox.

Social Security (OASDI) and Medicare Exemptions (based on the State's current Section 218 Agreement):

  • Students in the employ of a college or university who are regularly enrolled and attending classes
  • Members of the Kansas Police & Firemen's Retirement (KP&F) at Kansas Bureau of Investigation (KBI) or Highway Patrol hired before 04/01/1986*
  • Non-resident aliens in possession of an F-1 VISA
  • Non-resident aliens in possession of a J-1 VISA
  • Non-resident aliens in possession of an M-1 or Q-1 VISA
  • National Guard employees on active duty
  • Wages After Death - If a wage payment will be issued in the subsequent year after the year in which the person died, the wages are not subject to Social Security and Medicare under Sec. 209M of the Social Security Act
  • Medicare covered employees - Members of Kansas Police & Fireman's Retirement at KBI and Highway Patrol hired on or after 04/01/1986 have mandatory Medicare coverage* (Choose "Medicare only" for the FICA Status field)
  • Patients or inmates in the employ of a hospital, home, or penal institution
  • Services by an individual who has taken a vow of poverty

*Any positions affiliated with KP&F after 04/29/1983 that were previously covered by OASDHI will continue to be covered by OASDHI (P.L. 98-21). These positions include University Police affiliated with KP&F in 1989 and Capitol Area Security Police and Motor Carrier Inspectors affiliated with KP&F in 2004.

As with UCI, agency personnel are responsible for ensuring that employees are exempted from Social Security (OASDI) and Medicare coverage as appropriate. Exemptions from Social Security and Medicare are entered under Job Data (path: 'Administer Workforce', 'Administer Workforce (GBL)', 'Use') on Payroll page. If the employee is exempt from both OASDI and Medicare, 'Exempt' should be chosen for the FICA Status field. If the employee is exempt only from OASDI, 'Medicare only' should be chosen.

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05-P-026 Parking Rate Correction for Reserved Parking in Centre City Garage (Supersedes 05-P-024)
DATE: March 22, 2005
SUBJECT: Parking Rate Correction for Reserved Parking in Centre City Garage
EFFECTIVE DATE: Payroll Period Beginning March 13, 2005 and Ending March 26, 2005 Paid April 8, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Parking Rate Correction for Reserved Parking in Centre City Garage

Effective January 1, 2005, MBI, Inc. increased its parking rates for all spaces leased from the City of Topeka. This rate increase impacts State of Kansas agencies with contracts for parking in the City Centre Garage. Payroll Services increased the parking fees for non-reserved spaces in December 2004, and increased parking fees for reserved spaces when notified in February 2005. At that time, Payroll Services was informed that parking rates for reserved spaces were increasing to $68.00 a month; unfortunately, that rate should have been $68.40 per month. Due to this corrected rate, employees who park in reserved spaces in the Centre City Garage under an agency agreement with MBI will see their parking deduction increase starting with the payroll period beginning March 13, 2005 and ending March 26, 2005, paid April 8, 2005.

The following parking deduction codes are effected by this increase: APKA57 and PPKA57 (used by the Department of Agriculture), APKA58 and PPKA58 (used by the Ethics Commission), APKA59 and PPKA59 (used by the Conservation Commission), APKA60 and PPKA60 (used by the Kansas Water Office), and APKA61 and PPKA61 (used by the Board of Technical Professions). The deduction amount for these codes will increase from $31.38 per bi-weekly pay period to $31.57 per bi-weekly pay period. Parking administrative fee code PKAD50 will increase from $2.40 per bi-weekly pay period to $2.42 per bi-weekly pay period.

The rate increases discussed in the paragraph above were entered in SHARP with a March 26, 2004 effective-dated row, and will be effective for paychecks dated on or after April 8, 2005. This increase will not be made retroactive to January 1, 2005 since the rates in mid-February were backdated, and paycheck adjustments may have already been made using the February 2005 corrected rates. Agencies are reminded that when notified of parking rate increases for the Centre City Garage, it is imperative that the information is shared with the Department of Administration's Parking Office so the rates can be implemented in SHARP in a timely manner.

Due to the complexities created by the late and erroneous rates, agencies' options in collecting the additional amounts due to MBI are limited to either collecting the difference directly from the employees or paying the difference from agency funds.

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

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05-P-027 Change in Organization Dues Deduction Amounts for AFSCME Council 72 (Supersedes 03-P-037)
DATE: April 26, 2005
SUBJECT: Change in Organization Dues Deduction Amounts for AFSCME Council 72
EFFECTIVE DATE: Payroll Period Beginning April 10, 2005 and Ending April 23, 2005, Paid May 6, 2005
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, 1469 and 1715

The organization dues for members of AFSCME Council 72 will change from $11.46 to $13.40 per biweekly payroll period. The new rate will become effective with the payroll period beginning April 10, 2005 and ending April 23, 2005, paid May 6, 2005. The following deduction codes will be updated to reflect the new deduction amounts:
 

Deduction Code Union Dues Deduction
ORG270 Local 1270 $13.40
ORG357 Local 1357 $13.40
ORG469 Local 1469 $13.40
ORG715 Local 1715 $13.40

The Division of Accounts and Reports, Payroll Systems Team is responsible for making these changes in the SHARP system. Regent's institutions are responsible for ensuring these changes are reflected in their individual systems effective for paychecks issued on or after May 6, 2005.

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05-P-028 Fiscal Year End Payroll Processing for FY 2005 (Supersedes 04-P-031)
DATE: April 29, 2005
SUBJECT: Fiscal Year End Payroll Processing for FY 2005
EFFECTIVE DATE: Immediately
CONTACT: Joyce Dickerson (785) 296-3979 Joyce.Dickerson@da.state.ks.us
APPROVAL: 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 2006 payroll contribution rates will be issued as soon as the information becomes available.

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments that are processed for pay periods ending on or before June 4, 2005 will use fiscal year 2005 benefits contribution rates (or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted). Supplementals and adjustments for pay period ending dates greater than June 4, 2005 will use fiscal year 2006 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, group health insurance (GHI), and parking administrative fee.

Tax Rates

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

Fiscal Year Expenditure Impact

Supplementals and adjustments (with the exception of reversals) will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. For example, the Run C off-cycle (processed June 20, paid June 23) for the pay period ending June 4, 2005 will be charged to fiscal year 2005 expenditures. The Run A off-cycle (processed June 27 paid July 1) for the pay period ending June 18, 2005 will be charged to fiscal year 2006 expenditures.

Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the Run C off-cycle scheduled for June 20, 2005 (paid June 23) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2005 expenditures.

Once the Run C off-cycle for the period ending June 18, 2005 (processed July 5, paid July 8) has been processed, agencies should not request or process paycheck reversals until STARS FY 2005 closing has been successfully completed. STARS is scheduled to resume processing July 21, 2005.

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

Budget End Date and Fiscal Year Changes

The Budget End Date and Fiscal Year on the Department Budget tables will be updated centrally at the beginning of the fiscal year. This process is scheduled to run the morning of June 13, 2005 and should be completed by 8:30 a.m. In that process, a new row will be added to the Department Budget tables with an effective date of June 5, 2005 (beginning date of the first on-cycle payroll charged to FY2006). The Budget End Date will be June 4, 2006. Agencies should not enter any rows with an effective date greater than or equal to June 5, 2005 until after the FY2006 insert has been completed. When adding new rows for FY2006, agencies should verify that June 4, 2006 was used as the Budget End Date for FY2006.

GHI Adjustments

As of July 1, 2005, NO payroll processing for GHI adjustments should be made for contract year 2003. Contact Judy Allman in the Division of Personnel Services at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 2003.

Julian Date Reset

The Julian date used for the SHARP off-cycle document numbers will reset to 001 on July 1, 2005. The Julian date used for the off-cycle's document number is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's check issue date. For example (assuming processing occurs before midnight), the Run C off-cycle for the pay period ending June 4, 2005 (processed June 20, paid June 23) will have 355 as the Julian date in the document number and expenditures will be charged to fiscal year 2005. The Run A off-cycle for the pay period ending June 18, 2005 (processed June 27, paid July 1) will have 362 as the Julian date in the document number and expenditures will be charged to fiscal year 2006. The Run B off-cycle for the pay period ending June 18, 2005 (processed June 29, paid July 5) will have 364 as the Julian date in the document number and expenditures will be charged to fiscal year 2006. The Run C off-cycle for the pay period ending June 18, 2005 (processed July 5, paid July 8) will have 005 as the Julian date in the document number and expenditures will be charged to fiscal year 2006.

Regents' Institutions Responsibilities

Regents' institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2006.

Reminders

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

  1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls are created on the Tuesday night following the end of the payroll period. Any changes to the employee's job data information (i.e., pay grade, rate of pay, FLSA status, etc.) that are entered after the creation of the paysheets will not be reflected in the employee's on-cycle paycheck for the period and will require special handling.
  2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. On-line agencies can review employer contributions by accessing the employee's paycheck deduction information for the period. Employer contributions have a deduction class of 'Nontaxable'.

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05-P-029 Parking Fee Increase - Curtis Building Garage - FY2006 (Supersedes 04-P-032)
DATE: May 3, 2005
SUBJECT: Parking Fee Increase - Curtis Building Garage - FY2006
EFFECTIVE DATE: Payroll Period Beginning June 5, 2005 and Ending June 18, 2005, Paid July 1, 2005
CONTACT: Roger Basinger (785) 296-5387 Roger.Basinger@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Parking Fee Increase - Curtis Building Garage - FY2006

Pursuant to Kansas Administrative Regulation 1-45-7a, parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2006. To facilitate this change, payroll deduction codes PKT08B and PPKT08 will increase to $22.48 per bi-weekly pay period effective with the payroll period beginning June 5, 2005 and ending June 18, 2005, paid July 1, 2005. The associated administrative fee code PKAD05 increases to $1.72 ($22.48 X .0765).

Employees with the Department of Commerce, the Board of Accountancy, and Board of Regents who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction increased to $11.24. The associated administrative fee code PKAD07 increases to $0.86 ($11.24 X .0765).

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

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05-P-030 Housing, Food Service and Other Employee Maintenance (Supersedes 04-P-030)
DATE: May 6, 2005
SUBJECT: Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE: July 1, 2005
CONTACT: Sunni Zentner (785) 296-7058 Sunni.Zentner@da.state.ks.us
APPROVAL: 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 2006 will require entry into the SHARP v8.0 system through the Compensate Employees menu group, the Maintain Payroll Data U.S. menu, the Use menu item, and the Additional Pay component.

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

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Attachment:  DA-171 (.pdf)

05-P-031 Questionable W-4's
DATE: May 17, 2005
SUBJECT: Questionable W-4's
EFFECTIVE DATE: April 14, 2005
CONTACT: Roger Heckerson (785) 296-5384 Roger.Heckerson@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Change in submission of W-4's to the IRS

Pursuant to Treasury Decision 9196, Internal Revenue Bulletin 2005-19, employers will no longer be required to send copies of potentially questionable Forms W-4 (Employee's Withholding Allowance Certificate) to the Internal Revenue Service. Previously, employers were required to send to the IRS any form W-4 claiming more than 10 allowances or claiming complete exemption from withholding if $200 or more in weekly wages was expected. Under the new regulation, an employer must submit a copy of any currently effective W-4 only if directed to do so in a written notice to the employer from the IRS or if directed to do so under any published guidance. The Division of Accounts and Reports, Payroll Section, will continue to be responsible for submitting W-4's to the IRS if so requested.

Agencies are still required to provide copies of an employee's Form W-4 on request. Please refer to the SHARP CBT (Employee Payroll Tax Data book) for specific information related to providing Form W-4 for employees entering their W-4 information via self-service.

DB:rh

05-P-032 Addition of Earnings Code RTD
DATE: June 10, 2005
SUBJECT: Addition of Earnings Code RTD
EFFECTIVE DATE: July 1, 2005
CONTACT: Sunni Zentner (785) 296-5387 Sunni.Zentner@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Addition of Earnings Code 'RTD'

A new earnings code has been established for Regent transitional after-tax long-term disability payments pursuant to legislative changes made to K.S.A. 74-4927a. These changes establish a transitional long-term disability benefit when an individual who is disabled and receiving benefits under the long-term disability program sponsored by KPERS is no longer eligible to receive continued contributions to the Kansas Board of Regents Mandatory Retirement Plan. Using the new earnings code, a monthly after-tax long-term disability payment will be made to the disabled individual through the payroll system until the individual is no longer disabled within the meaning of the KPERS long-term disability program.

The earnings code established is only available for use by Regent institutions. It will be effective for the payroll period beginning June 5, 2005, ending June 18, 2005, paid July 1, 2005. It will add to gross earnings and is subject to Federal and state withholding taxes, KPERS Death and Disability contributions, State Leave Payment Reserve assessment, and Worker's Compensation Insurance assessment. It is not subject to FICA/OASDI or Kansas Unemployment Compensation Insurance. The earnings code is being established in SHARP as follows:

Earns Code Description
RTD Regent Transition LTD Benefit

The Division of Accounts and Reports, Payroll Systems Team, is responsible for adding this new earnings code in the SHARP system. Regents' institutions are responsible for implementing the new earnings code in their payroll systems.

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05-P-033 Fiscal Year 2006 Payroll Contribution Rates (Supersedes 04-P-034)
DATE: June 17, 2005
SUBJECT: Fiscal Year 2006 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 5, 2005; Ending June 18, 2005; Paid July 1, 2005
ACONTACT: Kathy Ogle (785) 296-2290 Kathy.Ogle@da.state.ks.us
APPROVAL: Image of approval signature.
SUMMARY: Fiscal Year 2006-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans

The attached schedules contain employer's contribution rates for KPERS, unemployment insurance, state leave assessment, group health insurance, and worker's compensation insurance for fiscal year 2006. The fiscal year 2006 rates will become effective with the on-cycle payroll period beginning June 5, 2005, ending June 18, 2005 and paid July 1, 2005. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2005.

In FY2006, the employer's contribution to KPERS Death and Disability Insurance increases to 0.80% (except for retirement codes J1, J2, J3 which are .4%). Agencies are reminded of the moratoriums for KPERS Death and Disability Insurance contribution that were in place for payroll periods with an original check date between April 1, 2000 and December 31, 2001; between July 1, 2002 and December 31, 2002; and between April 1, 2003 and June 30, 2004. Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustment with payroll period end dates that contain an original check date within the moratorium period.

The Division of Accounts and Reports, Payroll Systems Team will update the SHARP system to reflect the changes in employer's contribution rates. Regents' institutions are responsible for ensuring the changes in rates are made in their individual systems. Regents' institutions are also responsible for ensuring that the STARS funding file and DA175/176 impact the correct fiscal year expenditures, and that all appropriate payroll clearing fund indexes are established for fiscal year 2006.

DB:JJM: kao

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