10-P-031 Fiscal Year 2011 Payroll Contribution Rates (Supersedes 09-P-041)
|DATE:||June 23, 2010|
Fiscal Year 2011 Payroll Contribution Rates
|EFFECTIVE DATE:||Pay Period Beginning June 13, 2010; Ending June 26, 2010;
Paid July 9, 2010
Fiscal Year 2011-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 2011. The fiscal year 2011 rates will become effective with the on-cycle payroll period beginning June 13, 2010, ending June 26, 2010 and paid July 9, 2010. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2010.
For the first nine months of FY2011, the employer’s contribution to KPERS Death and Disability Insurance remains at 1.00% (except for retirement codes J1, J2, J3 which are .4%). Due to the end of the moratorium implemented from April 1, 2010 to June 30, 2010, the Division of Accounts and Reports will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions effective with the pay period beginning June 13, 2010 and ending June 26, 2010, paid July 9, 2010. However, Senate Sub for HB 2219 calls for an additional moratorium between April 1, 2011 and June 30, 2011. Collection of the employer’s contribution to KPERS Death and Disability Insurance will again be suspended at that time.
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 adjustments with payroll period end dates that contain an original check date within a moratorium period. Previous moratoriums for KPERS Death and Disability Insurance contributions 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; between April 1, 2003 and June 30, 2004; and between March 1, 2009 and November 30, 2009.
For Regent institutions, moratoriums do not extend to members of Board of Regents retirement plans who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(8), which specifically requires the “employee” to remit the required contribution while on leave without pay.
Legislation passed in 2006 changed rules about KPERS retirees who work after retirement for the same or a different KPERS employer. More detailed information on these changes can be found in the KPERS DA Memo – April 21, 2006, located at http://www.kpers.org/damemos042106.htm. These changes do not affect KP&F or the Retirement System for Judges. For retirees who begin work for a different KPERS employer, the employer must make contributions based on retiree compensation. This includes all retirees who first begin actively working in KPERS-covered positions on or after July 1, 2006. Employees who meet these criteria should be enrolled in Benefit Plan ‘PR’ and Deduction Code ‘RETRET’. For fiscal year 2011, employer rates are 7.39% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 11.39%. Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.
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 SMART INF06 impacts the correct fiscal year and account codes.
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