FY 2007

DATE:	June 27, 2006
SUBJECT:	Change in Organization Dues Deduction Amounts
EFFECTIVE DATE:	Payroll Period Ending July 15, 2006
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wofley@da.state.ks.us
APPROVAL:
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 July 2, 2006 and ending July 15, 2006, paid July 28, 2006 as follows:
 

Deduction Code	Hourly Rate of Pay	Bi-Weekly Salary	Dues Deduction
ORG001	$ 7.35 or Less	$ 588.00 or Less	$ 8.55
ORG002	$ 7.36 - $ 8.51	$ 588.80 - $ 680.80	$ 9.05
ORG003	$ 8.52 - $ 9.39	$ 681.60 - $ 751.20	$ 9.55
ORG004	$ 9.40 - $ 10.35	$ 752.00 - $ 828.00	$10.05
ORG005	$ 10.36 - $ 11.41	$ 828.80 - $ 912.80	$10.55
ORG006	$ 11.42 or Greater	$ 913.60 - or Greater	$11.03
ORG888	KU Medical Center - Nurses		$11.03
ORG 018 & 019	KU - Graduate Teaching Assistants		$ 9.25

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 July 28, 2006.

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DATE:	July 5, 2006
SUBJECT:	Addition of New Parking Codes for Curtis Building Garage
EFFECTIVE DATE:	Payroll Period Beginning June 18, 2006 and Ending July 1, 2006, Paid July 14, 2006
CONTACT:	Kathy Ogle	(785) 296-2290	Kathy.Ogle@da.state.ks.us
APPROVAL:
SUMMARY:	Addition of New Parking Codes for Curtis Building Garage

Pursuant to an agreement entered into by the Kansas Department of Health and Environment and the Department of Administration for parking in the Curtis Building Garage, parking deduction codes PKT12B and PPKT12 were added to SHARP.  Parking codes PKT12B (after tax) and PPKT12 (pre-tax) will both result in an employee bi-weekly parking deduction of $22.48.  Parking administrative fee deduction code PKAD15 was also added.  Employees enrolled in parking deduction code PPKT12 will also need to be enrolled in this new parking administrative fee code.  Parking code PKAD15 will result in an employer bi-weekly contribution of $1.72.  These parking codes are effective with the pay period beginning June 18, 2006, ending July 1, 2006, and paid July 14, 2006  

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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DATE:	August 18, 2006
SUBJECT:	Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30
EFFECTIVE DATE:	Payroll Period Ending September 9, 2006
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.state.ks.us
APPROVAL:
SUMMARY:	Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University, Kansas National Education Association, deduction code ‘ORG030’, will change from $24.55 to $25.15 per biweekly payroll period.  The new rate will become effective with the payroll period beginning August 27, 2006 and ending September 9, 2006, paid September 22, 2006.

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 22, 2006.

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DATE:	September 11, 2006
SUBJECT:	New Community Health Charities Deduction Code
EFFECTIVE DATE:	Payroll Period Ending December 30, 2006
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.state.ks.us
APPROVAL:
SUMMARY:	Addition of Deduction Code for Community Health Charities

The legislature passed, and Governor Sebelius signed, HB2727 authorizing a new payroll deduction for Community Health Charities beginning January 1, 2007.  A new, after-tax, deduction code ‘UTD100’ will be added to the SHARP deduction code table effective with the pay period December 17, 2006 – December 30, 2006 and paid January 12, 2007.

For calendar year 2007, agencies can enter in SHARP a new General Deduction row effective-dated between December 17, 2006 and December 30, 2006 in order for the first deduction for 2007 to be taken on the January 12, 2007 paycheck. If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2007 should be entered.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the payroll system to establish this deduction code for all employees for whom SHARP calculates pay.  Regents’ institutions are responsible for ensuring that this change is made to their individual payroll systems for all paychecks issued for the pay period ending December 30, 2006 and beyond. The fund/index combination for the new deduction code will be Fund 9094, Index 9715 which is the same fund/index combination used for United Way deductions.  The Division of Accounts and Reports, Reconciliation and Remittance Team will be responsible for the remittance of the deductions for all SHARP and Regent employees to Community Health Charities.

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DATE:	September 18, 2006
SUBJECT:	Addition of Employer Deduction Codes/Funding Changes for Health Savings Account
EFFECTIVE DATE:	Pay Period Beginning December 17, 2006; Ending December 30, 2006; Paid January 12, 2007
CONTACT:	Nancy Ruoff	(785) 296-5369	nancy.ruoff@da.state.ks.us
APPROVAL:
SUMMARY:	Addition of New Employer Payroll Deduction Codes and Funding Changes for the Health Savings Account Program

For Plan Year 2007, the Health Care Commission approved the addition of an employer contribution to the Health Savings Account (HSA) of each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. Employer contributions for the Health Savings Accounts will be remitted to UMB on payday and should be posted to the individual employee accounts on payday.

 The new HSA annual employer contribution amounts for full-time employees are $900 for single coverage and $1350 for dependent coverage. For part-time employees, they are $675 for single coverage and $1012.56 for dependent coverage. 

For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the HSA benefit setup tables in SHARP.  Both GHI and HSA employer contributions will be charged to Object Code 1950.

For 9-month paid Regent employees (16 deductions), the HSA employer contribution cost will be paid by the agency in addition to the full agency GHI composite rate cost.  Regent agencies will then request a journal voucher reimbursement of the amount of their agency HSA employer contributions from the Kansas Health Policy Authority on a monthly, quarterly, or annual basis.      

To accommodate the new HSA employer contribution, new plan types and deduction codes will be added in SHARP effective for the payroll period beginning December 17 and ending December 30, 2006, paid January 12, 2007.    These new plan types/deduction codes are:

All employees except Regent 9-month:

PLAN TYPE	DEDUCTION CODE	DESCRIPTION	SHORT DESCRIPTION
6Y	HSASGL	HSA-Single Coverage/High Ded	HSA-Single
6Y	HSASGX	HSA-Single Coverage/Part-time	HSA-SglePT
6Z	HSADEP	HSA-Dependent Coverage/HighDed	HSA-Depend
6Z	HSADEX	HSA-Dependent Cov/Part-time	HSA-DepPT

Regent 9-month (16deductions):

PLAN TYPE	DEDUCTION CODE	DESCRIPTION	SHORT DESCRIPTION
6Y	HSXSGL	Health Sav Acct-Single-FT-16	HSXSGL
6Y	HSXSGX	Health Sav Acct-Single-PT-16	HSXSGX
6Z	HSXDEP	Health Sav Acct-Dep-FT-16	HSXDEP
6Z	HSXDEX	Health Sav Acct-Dep-PT-16	HSXDEX

The Division of Accounts and Reports, Payroll Services Section will remit the employee and employer monies to UMB for all agencies.  The KPAYHSA2 report is available in the agency MVS directories and will be modified to provide employee and employer detail for each remittance period.

REGENTS PAYROLL SYSTEM PROCESSING CHANGES

The following changes will be made to accommodate the new employer contribution and to make the fund/index processing for the employee deduction consistent with previously established standards. 

The following additions/change to the Fund/Index combination will be completed for the Department of Administration clearing fund for Health Savings Account Deductions:

AGENCY	FUND	BUDGET UNIT	INDEX
173	9051	9075	9764 SHARP EE Index (replacing 9075)
173	9051	9075	9864 SHARP Employer Index (new)

Effective 12/17/06, index code 9764 will replace the previously established index code of 9702 to record the receipt of the employee deductions by the individual Regent’s institutions.  In addition, index code 9664 has been added to the STARS system for each of the Regent’s Payroll Funds (98XX) to record the receipt of the new employer contribution by the individual Regent’s institutions.  Attached is an updated copy of the “Index Codes for Agency and DOA Clearing Funds”.  This document has been updated for the changes noted above and replaces the document issued with Informational Circular 06-P-009 dated October 14, 2005.

The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Health Savings Account employer contribution.  Regent’s institutions are responsible for ensuring that the Health Savings Account employer contribution is available in their individuals systems.  In addition, Regent’s institutions should be prepared to test their benefits interface and payroll files for the new deduction prior to November 1, 2006.

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

DATE:	September 21, 2006
SUBJECT:	Parking Fee Increase - KPERS Building Garage
EFFECTIVE DATE:	Payroll Period Beginning September 10, 2006 and Ending September 23, 2006, Paid October 6, 2006
CONTACT:	Kathy Ogle	(785) 296-2290	Kathy.Ogle@da.state.ks.us
APPROVAL:
SUMMARY:	Parking Fee Increase - KPERS Building Garage

Pursuant to the lease agreement executed by the Kansas Housing Resource Corporation for parking spaces in the KPERS Building Garage, parking fees will increase effective October, 2006.  To facilitate this change, payroll deduction codes APKA12 and PPKA12 will increase to $11.54 per bi-weekly pay period effective with the payroll period beginning September 10, 2006 and ending September 23, 2006, paid October 6, 2006.  The associated administrative fee code PKAD14 increases to $0.88 ($11.54 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.  

RLM:JJM:kao

 

 

DATE:	October 2, 2006
SUBJECT:	Optional Group Life Insurance Rate Changes
EFFECTIVE DATE:	January 1, 2007
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.state.ks.us
APPROVAL:
SUMMARY:	Optional Group Life Insurance Rate Changes

Please note that effective January 1, 2007 the Optional Group Life Insurance rates are changing as follows:
 

Age at the Beginning of the Calendar Year	Monthly Premium per $1,000
Under 25	$0.05
25-29	$0.06
30-34	$0.08
35-39	$0.09
40-44	$0.10
45-49	$0.14
50-54	$0.21
55-59	$0.40
60-64	$0.61
65-69	$1.18
70-74	$1.90
75 and Older	$2.06

The Under 30 age range has changed to Under 25 and a new age range of 25-29 has been added. 

An administrative fee of $0.20 per month will continue to be added to the premium each month.  Maximum coverage available is $250,000.00.  The age calculation will continue to be based on the employee’s attained age as of January 1st of the current calendar year.

The new rates are effective with coverage for the month of January 2007.  Therefore, the January 26, 2007 paycheck (paycheck issued for the payroll period ending January 13, 2007) will be the first check issued with the new rates, since Optional Group Life Insurance premiums are collected on the second biweekly paycheck of the month for that month’s coverage. 

The Division of Accounts and Reports, Payroll Services Team will ensure the updates are made to the SHARP payroll system to effect this change for all employees from whom SHARP calculates pay.  Regent's institutions are responsible for ensuring that this change is made in their respective systems prior to January 1, 2007.

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DATE:	November 15, 2006
SUBJECT:	December 2006 Payroll Processing
EFFECTIVE DATE:	Immediately
CONTACT:	Joyce Dickerson	(785) 296-3979	Joyce.Dickerson@da.ks.gov
APPROVAL:
SUMMARY:	December 2006 Payroll Processing

As 2006 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2006 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2006 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2007 balances; a corrected W-2 (Form W-2C) for 2006 will not be issued for the employee involved.

FINAL 2006 PAYCHECK

The final on-cycle paychecks for calendar year 2006 will be issued December 29, 2006.  Paychecks will be mailed on December 28, 2006.  The final off-cycle paychecks for calendar year 2006 will also be issued on December 29, 2006 (generated from the off-cycle processed on December 26, 2006).

PAYCHECK REVERSALS

Any 2006 paychecks that are undeliverable should be reversed as soon as possible.  SHARP agencies have until 6:00 p.m. on December 26, 2006 to enter paycheck reversals.  Any reversals entered after the 6:00 p.m. deadline on December 26, 2006 will update calendar year 2007 balances and will not be reflected in the employee’s 2006 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 26, 2006 to enter paycheck adjustment requests for any 2006 paychecks.  Adjustments processed in the December 26, 2006 off-cycle payroll will be reflected on the employee’s 2006 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 2006 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 15, 2006.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2006 for inclusion in the December 26, 2006 off-cycle.  However, if a large volume of DA-180 forms is received on the December 15, 2006 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2006 business.  Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.

Adjustment requests entered after December 26, 2006 which are adjusting paychecks issued prior to January 1, 2007 will not result in a W-2C; the adjustment will update the employee’s 2007 payroll balances regardless of the reason the paycheck is being adjusted.  Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 26, 2006 will update the employee’s 2007 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 16, 2006, paid December 29, 2006 are due to the Department of Administration by 6:00 a.m. on December 21, 2006.

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2006 Paycheck Reversals

Regent Institutions must submit all transmittals for 2006 paycheck reversals by 5:00 p.m. on Friday, December 22, 2006 in order to update the employee’s 2006 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 2007 payroll balances regardless of the paycheck issue date of the paycheck being reversed.  Reversals for paychecks issued prior to January 1, 2007 submitted after 5:00 pm on December 22, 2006 should default the pay adjust check date to January 1, 2007.  

2006 Adjustments and Supplementals

In order to update employee balances for 2006, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 22, 2006.  The Run A off-cycle for the pay period ending December 16, 2006 generated on the night of Tuesday, December 26, 2006 will have a check issue date of December 29, 2006; all activity for this off-cycle will be reflected in the employees’ 2006 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 2006 date.

2007 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2007, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 22, 2006, will be considered to be 2007 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2007 business, the employee’s 2007 balances will be updated.  These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2007 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2007, agencies should default the pay adjust check date to January 1, 2007). 

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2007, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2007 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 2007 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 22, 2006 deadline for the December 26, 2006 Run A’s off-cycle payroll will not be processed until the January 22, 2007 off-cycle payroll.  Since the files will be held, please do not begin submitting those files for processing until the week of January16, 2007.  The deadline for submitting payroll interface files for the January 22, 2007 off-cycle is 5:00 p.m. on Friday, January 19, 2007.

GENERAL REMINDERS

United Way

The deduction END date on the general deduction panel for 2006 United Way contributions should be dated between December 17, 2006 and December 30, 2006 in order for the last 2006 deduction to be taken on the paycheck issued December 29, 2006.  Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly.  For calendar year 2007, agencies can enter a new row effective-dated between December 17, 2006 and December 30, 2006 in order for the first deduction for United Way or Community Health Charities for 2007 to be taken on the January 12, 2007 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2007 should be entered.  Please note that the code UTD100 for the Community Health Charities cannot be entered until December 17, 2006 or after.  All other United Way codes can be entered earlier.

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, 2006 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 2007 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 15, 2006 to allow adequate time for processing. 

Agency personnel have until 6:00 p.m. on December 20, 2006 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 2007. 

The KPAY320 will be processed the evening of December 20, 2006.  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, 2007 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2007 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 2007 pay date.  

For any 2007 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 20, 2006 and January 1, 2007, agency personnel will need to enter the data with a January 2, 2007 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2007 for any electronic W-4s received in this time period. The 2007 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, 2006 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 2007.  The new tax data row will be dated January 1, 2007.  Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2007 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 2007 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.
• Health Savings Accounts: semi-monthly, deducted on the first and second pay dates 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 26, 2006.  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. 

Any arrearage collections made by personal reimbursement that are collected after December 22, 2006, and prior to December 26, 2006, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2006 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 2006 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year.  Agencies should collect any outstanding advances for payroll periods ending before December 16, 2006 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 26, 2006 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 26, 2006 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 22, 2006.  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 27, 2006 and January 5, 2007.  W-2 forms will be mailed on or before January 31, 2007.  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 2006 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. 07-P-008, dated October 12, 2006.  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.

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Attachment: December 2006 Payroll Calendar

DATE:	December 8, 2006
SUBJECT:	Inactivation of Organization Dues Deductions for Kansas Chapter of International Association of Workforce Professionals (IAWP)
EFFECTIVE DATE:	Payroll Period Ending December 30, 2006
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.ks.gov
APPROVAL:
SUMMARY:	Organization Dues Closing for ORG980

Please be advised that the Kansas chapter of International Association of Workforce Professionals (IAWP) is closing effective January 1, 2007.  Payroll deductions for this organization (ORG980) should be discontinued effective with the payroll period beginning December 17, 2006 and ending December 30, 2006, paid January 12, 2007.   The paychecks issued December 29, 2006 are the last paychecks for which deductions will be made for deduction code ‘ORG980’.   Agencies should enter a new-effective dated row of December 17, 2006 on the general deduction page for deduction code ‘ORG980’ which reflects a deduction end date of December 17, 2006 for all employees in their agency who have active enrollments with this organizational dues company.

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 12, 2007.

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DATE:	January 9, 2007
SUBJECT:	Organization Dues Change for ORG133
EFFECTIVE DATE:	Payroll Period Ending January 27, 2007
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.ks.gov
APPROVAL:
SUMMARY:	Change in Organization Dues Deduction for Public Service Employees Union Local 1132

The organization dues for members of the Public Service Employees Union, Local 1132, ORG133, will be increased from $12.50 to $14.00 per biweekly payroll period.  The new rate will become effective with the payroll period beginning January 14, 2007 and ending January 27, 2007, paid February 9, 2007.

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 February 9, 2007.

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DATE:	January 9, 2007
SUBJECT:	Organization Dues Change for ORG048
EFFECTIVE DATE:	Payroll Period Ending January 13, 2007
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.ks.gov
APPROVAL:
SUMMARY:	Change in Organization Dues Deduction for Fort Hays State University-FOP #48

The organization dues for members of the Fort Hays State University FOP, ORG048, will be increased from $15.00 to $17.50 per biweekly payroll period.  The new rate will become effective with the payroll period beginning December 31, 2006 and ending January 13, 2007, paid January 26, 2007.

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 26, 2007

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DATE:	January 24, 2007
SUBJECT:	Recordkeeping Requirement for Charitable Contributions Made by Payroll Deduction
EFFECTIVE DATE:	Taxable years beginning after August 17, 2006
CONTACT:	Janice Wolfley	(785) 296-3699	Janice.Wolfley@da.ks.gov
APPROVAL:
SUMMARY:	Recordkeeping Requirement for Charitable Contributions Made by Payroll Deduction

Taxpayers claiming charitable contributions for cash, check, or other monetary gifts made in taxable years beginning after August 17, 2006, are subject to the recordkeeping requirements of Sec. 170(f)(17), as added by section 1217 of the Pension Protection Act of 2006, Public Law 109-280, 120 Stat. 780(2006)(PPA).  IRS Notice 2006-110 provides guidance on how charitable contributions made by payroll deduction may meet the requirements of Sec. 170(f)(17) of the Internal Revenue Code.

Sec. 170(f)(17) of the Internal Revenue Code indicates that charitable contribution deductions of $250 or more withheld from each payment of wages must be substantiated in order to be a valid tax deduction effective for calendar year 2007.  Substantiation requirements include a pay stub furnished by the employer that sets forth the amount withheld and a pledge card or other document prepared by the donee organization that includes a statement that the organization does not provide goods or services in whole or partial consideration for any contribution made to the organization by payroll deduction.  Currently, any payroll deductions withheld by the State of Kansas for United Way or Community Health Charities (CHC) are printed on the paycheck stubs and included on the paycheck view in self service.  United Way and CHC are responsible for the pledge cards or other documents with the proper information included.  Employees with a payroll deduction of $250 or more per pay period should keep their pay stub or print their self service paycheck with the deduction amount, and retain a copy of the pledge card or other document provided by United Way or CHC to fulfill these requirements.

There are currently no United Way or CHC deductions in SHARP which are equal to or greater than $250 per period.  However, agencies should advise employees of the record keeping requirements for charitable contributions in the event an employee’s deduction meets or exceeds $250 per period.

Regent’s institutions are responsible for ensuring that the requirements are met within their individuals systems.

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DATE:	February 2, 2007
SUBJECT:	Addition of New Parking Codes for 10th & Quincy Lot - KSDE
EFFECTIVE DATE:	Payroll Period Beginning February 11, 2007 and Ending February 24, 2007, Paid March 9, 2007
CONTACT:	Kathy Ogle	(785) 296-2290	Kathy.Ogle@da.ks.gov
APPROVAL:
SUMMARY:	Addition of New Parking Codes for 10th & Quincy Lot - KSDE

Pursuant to an agreement entered into by the Kansas State Department of Education and the Department of Administration for parking in the lot at 10th and Quincy, parking deduction codes APKA14 and PPKA14 will be added to SHARP.  Parking codes APKA14 (after-tax) and PPKA14 (pre-tax) will both result in an employee bi-weekly parking deduction of $4.62.  Employees enrolled in parking deduction code PPKA14 will also need to be enrolled in parking administrative fee code PKAD10.  Parking code PKAD10 will result in an employer bi-weekly contribution of $0.35.  The new parking codes are effective with the pay period beginning February 11, 2007, ending February 24, 2007, and paid March 9, 2007.

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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DATE:	February 6, 2007
SUBJECT:	Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE:	January 1, 2007
CONTACT:	Kathy Ogle	(785) 296-2290	Kathy.Ogle@da.ks.gov
APPROVAL:
SUMMARY:	IRS Changes Luxury Vehicle Fair Market Value for Calendar Year 2007

The Internal Revenue Service (IRS) has changed the definition of a “luxury vehicle” beginning January 1, 2007.  A “luxury vehicle” will be defined as one with a fair market value in excess of $15,100, increased from $15,000, for a passenger vehicle first made available for an employee’s personal use in 2007.  This definition is used under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle.  The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income.  See Informational Circular No. 05-P-023*.  Using this methodology, fringe benefit income is calculated by multiplying the 48.5 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 2007 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,100.  Agencies and employees are also reminded that the only personal use of a state-owned or leased vehicle allowed under state law is to commute between the employee’s work station and home, and then in only limited situations.

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

*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section.  The reference should be:  Kansas Administrative Regulation 1-17-2a(b)(1).

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DATE:	April 2, 2007
SUBJECT:	Addition of Earnings Code ‘INC’ for Incentive Pay
EFFECTIVE DATE:	March 25, 2007
CONTACT:	Earl Brynds	(785) 296-5376	Earl.Brynds@da.ks.gov
APPROVAL:
SUMMARY:	Addition of Earnings Code ‘INC’

The Governor’s Office has approved Hazmat Technician Incentive pay for those employees within the 190th Fire Department in the Kansas Adjutant General’s Department who obtain and maintain a Hazmat Technician certification.  To administer the Hazmat Technician Incentive pay and all other applicable future statewide incentive pay scenarios, a new earnings code is established in the SHARP system effective March 25, 2007.  The following new earnings code is set up to be used starting with the pay period beginning March 25, 2007 through April 7, 2007 paid April 20, 2007.                                                

Earnings Code	Description	Short Description	Effective Date
INC	Incentive Earnings	Incntv Ern	3/25/2007

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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DATE:	April 10 , 2007
SUBJECT:	Organization Dues Change for ORG059
EFFECTIVE DATE:	Payroll Period Ending April 21, 2007
CONTACT:	Janice Wolfley	(785) 296-3699	janice.wolfley@da.ks.gov
APPROVAL:
SUMMARY:	Change in Organization Dues Deduction for Kansas Game Wardens FOP Lodge #59

The organization dues for members of the Kansas Game Wardens Fraternal Order of Police Lodge #59, ORG059, will be increased from $10.00 to $12.00 per biweekly payroll period.

The new rate will become effective with the payroll period beginning April 8, 2007 and ending April 21, 2007, paid May 4, 2007.

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 May 4, 2007.

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