Kansas Department of Administration

FY 2011

11-P-001 Addition of New Parking Codes for Centre City Garage
DATE: July 9, 2010
SUBJECT:

Addition of New Parking Codes for Centre City Garage

EFFECTIVE DATE: Payroll Period Beginning June 13, 2010 and Ending June 26, 2010, Paid July 9, 2010
CONTACT:

Cindy Lo

(785) 296-2290

Cindy.Lo@da.ks.gov

APPROVAL: Signature of approval.
SUMMARY:

Addition of New Parking Codes for Centre City Garage at 9th and Kansas

 

Pursuant to an agreement entered into by the Kansas Technology Enterprise Corp (KTEC) and the Department of Administration for parking in the Centre City Garage, new parking deduction codes APKA64 (after tax), PPKA64 (before tax), and PKAD17 (admin fee) were added to SHARP. Employees enrolled in parking codes APKA64 and PPKA64 will have a bi-weekly payroll parking deduction of $3.58. Employees enrolled in parking deduction code PPKA64 will also need to be enrolled in the new parking administrative fee code – PKAD17. Parking code PKAD17 will result in an employer bi-weekly payroll contribution of $0.27. These parking codes are effective with the pay period beginning June 13, 2010, ending June 26, 2010, and paid July 9, 2010.

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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11-P-002 Reporting and Remittance for Basic Life and Disability Insurance Coverage During Leave Without Pay (Supersedes 00-p-0028)
DATE: July 12, 2010
SUBJECT:

Reporting and Remittance for Basic Life and Disability Insurance Coverage During Leave Without Pay

EFFECTIVE DATE: Immediately
CONTACT:

Abby Moore

(785) 296-2133

Abby.Moore@da.ks.gov

KPERS CONTACT: Amy Whitmer (785) 296-7901 awhitmer@kpers.org
APPROVAL: image of approval signature
SUMMARY: Reporting and Remittance Requirements to Facilitate Employee Payments for Basic Life and Disability Insurance Coverage During Leave Without Pay Status

 

With the implementation of SMART, changes are being made for the reporting and remittance of payments for basic life and disability insurance coverage for Board of Regent employee’s on leave without pay pursuant to K.S.A. 74-4927a(5).

These changes shall be effective immediately for the pay period beginning June13, 2010 and ending June 26, 2010, paid July 9, 2010.

Regent institutions will submit the detailed information for these transactions in the following format directly to KPERS by email or fax to Amy Whitmer, awhitmer@kpers.org or fax 785-296-6057.

Agency SSN Last Name, First Name Date of Coverage  Contribution

XXX

XXX-XX-XXXX

XXXXXXXXXXXX,XXXXXXXXXX

MM/DD/YYYY to MM/DD/YYYY

$ XXX.XX

XXX

XXX-XX-XXXX

XXXXXXXXXXXX,XXXXXXXXXX

MM/DD/YYYY to MM/DD/YYYY

$ XXX.XX

 

Regent institutions shall remit such employee contributions directly to KPERS via SMART interfund processing.

 

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11-P-003 DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel
DATE:   July 30, 2010
SUBJECT:  

DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel

EFFECTIVE DATE:   Immediately
CONTACT: SHaRP-

Carol Beck

(785) 296-2002

Carol.Beck@da.ks.gov

  SMART- Randy Kennedy (785) 296-2125 Randy.Kennedy @da.ks.gov
APPROVAL:   Image of approval signature.
SUMMARY:   Issuance of combined DA-184 Form for Authorization for Direct Deposit of Employee Pay and/or Employee Travel

 

The updated DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel is now available at http://www.da.ks.gov/ar/pm/forms/default.htm.

Agencies are encouraged to utilize the new combined form and to develop the appropriate business process flow within their agency to correctly route the information provided by an employee on the DA-184 form to all necessary parties for data entry and agency record-keeping. Direct deposit of employee payroll will be entered in the Statewide Human Resource and Payroll system and direct deposit of employee travel and expense is entered into the Statewide Management, Accounting, and Reporting Tool Travel and Expense module.

Please note the following:

  • An employee may only select one account for SMART (travel and expense) and 100% of all travel and expense reimbursements will be deposited to that account.
  • An employee may select up to a maximum of nine accounts for SHARP (employee payroll) and identify the account priority and the percentage or amount of net pay that is distributed to each account.
  • The “International ACH Bank” checkbox is intended to be selected if the entire amount of the direct deposit to a specific account may result in the transfer of funds to a financial agency outside the U.S. The functionality to support the International ACH requirements is not yet in place so agencies should refrain from using this checkbox at this time. Additional instructions will be released when the necessary programming changes are made to implement International ACH payments.

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11-P-004 Addition of New Earnings Code S16 due to FOP Agreement
DATE: August 17, 2010
SUBJECT:

Addition of New Earnings Code S16 due to FOP Agreement

EFFECTIVE DATE: August 8, 2010
CONTACT:

Cindy Lo

(785) 296-2259

Cindy.Lo@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Addition of New Earnings Code S16 due to Memorandum of Agreement between the State of Kansas and the Fraternal Order of Police Lodge No. 64

 

The Memorandum of Agreement, Article 25, between the State of Kansas Department of Corrections and the Fraternal Order of Police Lodge No. 64 signed in June 2010 stipulates that if Parole Duty Officers respond to calls after regularly scheduled work hours, weekends and holidays in accordance to departmental policy IMPP 14-147 – Parole Duty Officer, duty officer hours shall be incurred and compensated at a rate of $1.25/hr for every hour beyond regularly scheduled work hours they are designated as duty officer.  As a result of the agreement, earnings code S16 has been added to SHARP effective August 8, 2010 to administer the duty officer pay:

Earnings Code Description Short Description Effective Date
S16 Duty Officer Pay-FOP-$1.25 Duty Officer Pay FOP August 8, 2010

 

The S16  earning code is only available for use by Department of Corrections. 

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

 

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11-P-005 Implementation of Direct Deposit and Paycards Policy
DATE: August 20, 2010
SUBJECT:

Implementation of Direct Deposit and Paycards Policy

EFFECTIVE DATE: Immediately (Full Implementation Deadline: Sept. 24, 2010)
CONTACT:

Jennifer Holthaus

(785) 368-6313

Jennifer.Holthaus@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Information for Implementation of Direct Deposit or Paycard method and Availability of Employee Paycard Presentations

 

K.S.A. 44-314 provides the authority for employers in the State of Kansas to designate the method by which employees receive wages including electing to pay wages only by electronic funds transfer or deposit to an automated clearinghouse member financial institution account designated by the employee. An employer may elect to pay wages in this manner provided that the employer offers an alternative payment method as a default option, such as a payroll card, for employees who fail to designate a financial institution account for electronic funds transfer or deposit.

For payroll purposes, employees who currently receive a paper paycheck must be transitioned to either traditional direct deposit or a Skylight paycard no later than Sept. 24, 2010. All active and new employees who do not elect to have their payroll directly deposited to a traditional bank account will be required to establish a paycard account. Information concerning this new policy was initially announced on May 21, 2010.

Agency Paper Paycheck Report

To assist with this transition period, a new report, the KPAY208 Paper Paycheck Report is available each pay cycle in the MVS directory for agencies that have employees with paper paychecks. The report is available on the Monday prior to each paydate to identify all employees currently in an agency who receive a paper paycheck for all or a portion of their net pay. Agency personnel are encouraged to download and utilize this report to communicate the new policy and options for electronic payroll to those employees currently receiving paper paychecks.

DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel

The updated DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel is now available here. Please see Informational Circular 11-P-003 for more information regarding this new combined form.
Skylight Paycard

The Department of Administration has renewed its partnership with Skylight Financial, Inc. (associated with U.S. Bank) to provide a Skylight paycard to employees who do not elect to have their payroll directly deposited to a checking or savings account. The Skylight paycard is an FDIC insured ATM/debit-based bank account where pay and other deposits, such as travel and expense reimbursements, can be made.

Employees can withdraw 100% of their payroll net pay from the paycard by a teller transaction at any VISA member bank by presenting their paycard and one form of picture id. Skylight has provided the attached VISA Bank

Teller Service handout that can be provided to employees if they experience any issues with completing a teller transaction for the full amount of their net pay. There is a daily limit of $2,000 for ATM withdrawals. The daily limit for POS transactions or cash withdrawal via a VISA-member bank teller transaction is $7,500 effective Aug. 25, 2010.

Agency Human Resource/Payroll professionals participated in Skylight Training in June and Skylight Paycard Instant Issue Packs have been issued to all requesting agencies. Any agency that requires additional training information or that did not initially request Skylight Paycard Instant Issue Packs and now wishes to obtain an inventory of paycards should contact Jennifer Holthaus at (785) 368-6313 or Jennifer.Holthaus@da.ks.gov to obtain further information. Please note that an employee cannot be required to designate a financial institution for direct deposit at which time the paycard becomes the default payroll payment option for the employee.

The new paycard contract provides increased benefits, convenience, and flexibility to employees. As an added benefit, Skylight will be auto-generating a name-embossed paycard for every employee following the first direct deposit to the paycard. This will be mailed to the address on the Skylight account and is at no cost to the employee. In addition, it does not count toward the employee’s one-free-per-year card replacement or upgrade. Employees will need to follow the instructions received with the card to activate the new name-embossed card. Electronic marketing materials are available for distribution to your employees here under the Skylight One section.

Employee Communication

Attached is a sample Memorandum to Employees which can be used by your agency to assist in communicating this change to existing and incoming employees. Information should be provided to all existing employees who appear on the agency KPAY208 report and employees should be encouraged to take the necessary steps as soon as possible to request direct deposit to an existing checking and/or savings account or to sign-up for a payroll paycard.

Employee Paycard Informational Meetings

Payroll Services has scheduled employee informational meetings to provide an overview of direct deposit and the Skylight One paycard. The informational meetings will be available via webcast utilizing dimdim. Registration instructions for the dimdim broadcast are being provided via the SHARP Infolist to agency HR/Payroll personnel. Agencies are encouraged to arrange an agency meeting location, convenient for their employees, at which the webcast can be broadcast/projected or to provide the registration instructions to employees who require remote attendance. Employees should be encouraged to attend at the agency location or in person on the following dates:

Wed., Aug. 25 1:30pm – 2:30pm Rm 106 Landon State Office Building, Topeka
Thurs., Sept. 9 10:00am – 11:00am Rm 106 Landon State Office Building, Topeka

 

No Exceptions

No exceptions will be granted for payroll payments to new or existing, active employees. The implementation of this policy will result in an estimated $250,000 annual savings for the State of Kansas. Special awards or payments requiring payroll processing for active or retiring employees should be paid to the employee via direct deposit or paycard.

Payroll payments required to be processed through the payroll system for terminated employees for whom direct deposit or paycard information cannot be confirmed may be made via paper paycheck, but only upon approval from the Director of Accounts and Reports.

 

Attachments

Memo to Employees
VISA Bankteller

 

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11-P-006 Change in Organization Dues Deduction for Pittsburg State (Supersedes: 10-P-003)
DATE: August 30, 2010
SUBJECT:

Change in Organization Dues Deduction for Pittsburg State
University – Kansas National Education Association #30

EFFECTIVE DATE: Payroll Period Ending September 4, 2010
CONTACT:

Janice Wolfley

(785) 296-3699

Janice.Wolfley@da.ks.gov

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 will change from $28.35 to $28.65 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 22, 2010 and ending September 4, 2010, paid September 17, 2010.

Currently, organization dues must be entered into SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code. In this case, the new rate for deduction code ORG030 will increase from $28.29 to $28.59 and the fee (ORF030) will remain at $.06 (for a total of $28.65 per biweekly payroll period).

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 17, 2010.

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11-P-007 Change in Organization Dues Deduction Amounts (Supersedes: 09-P-008)
DATE: September 10, 2010
SUBJECT:

Change in Organization Dues Deduction Amounts

EFFECTIVE DATE: Payroll Period Ending September 18, 2010
CONTACT:

Janice Wolfley

(785) 296-3699

Janice.Wolfley@da.ks.gov

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 changes to the dues structure (pay ranges) and the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 5, 2010 and ending September 18, 2010, paid October 1, 2010 as follows:

Deduction Code     Hourly Rate of Pay Bi-Weekly Salary Dues Deduction

ORG001

$ 13.99 or Less

$ 1119.20 or Less

$ 9.68

ORG002

$ 14.00 – 14.99

$ 1119.21 – 1199.20

$10.68

ORG003

$ 15.00 – 15.99

$ 1199.21 – 1279.20

$11.62

ORG004

$ 16.00 – 16.99

$ 1279.21 – 1359.20

$12.59

ORG005

$ 17.00 – 17.99

$ 1359.21 – 1439.20

$13.56

ORG006

$ 18.00 or Greater

$ 1439.21 or Greater

$14.5

 

Due to the change to the pay ranges to which these deduction codes apply, the Division of Personnel Services (DPS) will review the individual employees with active deductions for the impacted deduction codes. If the employee’s rate of pay requires the movement of the employee to a new deduction code based on the new dues structure, DPS will make the necessary changes to end the existing deduction (both the ORG – dues deduction and ORF – fee deduction) and establish the new deduction codes (both the new ORG – dues deduction and ORF – fee deduction).

Existing deduction rows (ORG/ORF) will be ended with a Deduction End Date of September 5, 2010 and the new deduction rows (ORG/ORF) will be established with an effective date of September 5, 2010. For SHARP agencies, the deduction updates will be completed in SHARP by 6:00 pm on Tuesday, September 21, 2010 in order to be included in the first preliminary on-cycle payroll calculation for the period.

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 October 1, 2010.

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11-P-008 SHARP Bi-Weekly Payroll Schedule for 2011 (Supersedes: 10-P-002)
DATE: September 13, 2010
SUBJECT:

SHARP Bi-Weekly Payroll Schedule for 2011

EFFECTIVE DATE: Calendar Year 2011
CONTACT:

Earl Brynds

(785) 296-5376

Earl.Brynds@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2011

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2011. 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 normally 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’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. SHARP Time and Leave agencies generally 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. SHARP Time and Labor agencies have until 3:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 6:00 p.m. so that the status is ready for payroll processing.

Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions generally have until 4:00 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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Attachments:
Bi-Weekly Payroll Schedule for ON-cycle Calendar Year 2011 PDF
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2011 PDF

11-P-009 Key Payroll Processing Dates in November 2010 (Supersedes: 10-P-004)
DATE: October 18, 2010
SUBJECT:

Key Payroll Processing Dates in November 2010

EFFECTIVE DATE: November 2010
CONTACT:

Joyce Dickerson

(785) 296-3979

Joyce.Dickerson@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Payroll processing schedule changes due to the November 2010 holidays.

 

Thursday, November 11, 2010 (Veterans' Day), Thursday, November 25, 2010 and Friday, November 26, 2010 (Thanksgiving Holiday) are designated holidays for state service in 2010.

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.

Monday, November 1, 2010

The Run C off-cycle for the period ending October 16, 2010 will be processed November 1, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be
dated November 4, 2010.

Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending October 30, 2010 submitted to the Department of Administration for processing by 5:00 PM on November 1, 2010.

Tuesday, November 2, 2010

Paysheets for the on-cycle payroll for the period ending October 30, 2010 will be created on Tuesday, November 2, 2010. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 2, 2010 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending October 30, 2010 will also occur November 2, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.

Wednesday, November 3, 2010

The second on-cycle preliminary pay calculation for the period ending October 30, 2010 will occur November 3, 2010.

Regents’ on-cycle payroll files for the period ending October 30, 2010 are due to the Department of Administration by 4:00 PM on November 3, 2010.

Thursday, November 4, 2010

The third on-cycle preliminary pay calculation for the period ending October 30, 2010 will occur November 4, 2010.

Friday, November 5, 2010

Final pay confirmation for the on-cycle payroll for the period ending October 30, 2010 will occur November 5, 2010. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on November 5, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 5, 2010 in order to be reflected in the final paycheck created for the employee.

Regents’ Run A off-cycle payroll files for the period ending October 30, 2010 must be received by the Department of Administration by 4:00 PM on November 5, 2010.

Sunday, November 7, 2010

The Regents’ on-cycle files for the period ending October 30, 2010 will be processed.

Monday, November 8, 2010

The Run A off-cycle for the period ending October 30, 2010 will be processed November 8, 2010. Paychecks for the Run A off-cycle will be dated November 12, 2010.

Tuesday, November 9, 2010

Regents’ Run B off-cycle payroll files for the period ending October 30, 2010 must be received by the Department of Administration by 4:00 PM on November 9, 2010 in order to be processed on Wednesday, November 10, 2010.

Wednesday, November 10, 2010

The Run B off-cycle for the period ending October 30, 2010 will be processed November 10, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated November 15, 2010.

Thursday, November 11, 2010
Veterans' Day Holiday

Friday, November 12, 2010

Payday for the payroll period ending October 30, 2010.

Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 13, 2010 submitted to the Department of Administration for processing by 5:00 PM on November 12, 2010. (These files would normally be due Monday, November 15, 2010.)

Regents’ Run C off-cycle payroll files for the period ending October 30, 2010 must be received by the Department of Administration by 4:00 PM on November 12, 2010.

Monday, November 15, 2010

The Run C off-cycle for the period ending October 30, 2010 will be processed November 15, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. Paychecks for the Run C off-cycle will be dated November 18, 2010.

Paysheets for the on-cycle payroll for the period ending November 13, 2010 will be created on Monday, November 15, 2010. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 15, 2010 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, November 16, 2010.)

The first on-cycle preliminary pay calculation for the period ending November 13, 2010 will also occur November 15, 2010, rather than Tuesday, November 16, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM.on November 15, 2010 in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 13, 2010.

Tuesday, November 16, 2010

The second on-cycle preliminary pay calculation for the period ending November 13, 2010 will occur November 16, 2010.

Regents’ on-cycle payroll files for the period ending November 13, 2010 are due to the Department of Administration by 4:00 PM on November 16, 2010. (These files would normally be due Thursday, November 18, 2010.)

Wednesday, November 17, 2010

Final pay confirmation for the on-cycle payroll for the period ending November 13, 2010 will occur November 17, 2010. (Final pay confirmation would normally occur Friday, November 19, 2010). For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on November 17, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 17, 2010 in order to be reflected in the final paycheck created for the employee.

Thursday, November 18, 2010

The Regents’ on-cycle files for the period ending November 13, 2010 will be processed.

Regents’ Run A off-cycle payroll files for the period ending November 13, 2010 must be received by the Department of Administration by 4:00 PM on November 18, 2010. (These files would normally be due Friday, November 19, 2010.)

Friday, November 19, 2010

The Run A off-cycle for the period ending November 13, 2010 will be processed November 19, 2010. (This off-cycle would normally be scheduled for Monday, November 22, 2010.) Paychecks for the Run A off-cycle will be dated November 24, 2010.

Monday, November 22, 2010

Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 13, 2010 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 24, 2010.)

Tuesday, November 23, 2010

Regents’ Run B off-cycle payroll files for the period ending November 13, 2010 must be received by the Department of Administration by 4:00 PM on November 23, 2010.

Wednesday, November 24, 2010

Payday for the payroll period ending November 13, 2010. (It would normally be Friday, November 26, 2010)

The Run B off-cycle for the period ending November 13, 2010 will be processed November 24, 2010. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. Paychecks for the Run B off-cycle will be dated December 1, 2010. (Paychecks would normally be dated Monday, November 29, 2010.)

Regents’ Run C off-cycle payroll files for the period ending November 13, 2010 must be received by the Department of Administration by 4:00 PM on November 24, 2010. (These files would normally be due Friday, November 26, 2010.)

Thursday, November 25, 2010
Thanksgiving Holiday

Friday, November 26, 2010
Thanksgiving Holiday

Monday, November 29, 2010

The Run C off-cycle for the period ending November 13, 2010 will be processed November 29, 2010. Paychecks for the Run C off-cycle will be dated December 2, 2010.

Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 27, 2010 submitted to the Department of Administration for processing by 5:00 PM on November 29, 2010.

Tuesday, November 30, 2010

Paysheets for the on-cycle payroll for the period ending November 27, 2010 will be created on Tuesday, November 30, 2010. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 30, 2010 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 27, 2010 will also occur November 30, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.

Attached is a calendar for the month of November 2010, 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://da.state.ks.us/sharp/infolist.htm.

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Attachment pdf

11-P-010 Re-Creation of FY11 SHARP Payroll Reports and Interfaces
DATE: October 25, 2010
SUBJECT:

Re-Creation of FY11 SHARP Payroll Reports and Interfaces

EFFECTIVE DATE: Immediately
CONTACT:

Sunni Zentner

(785) 296-7058

Sunni.Zentner@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Re-creation of Corrected KPAYWAGE, KPAY303, KPAYGL5C Payroll Reports and Interfaces for FY11

 

The implementation of the delivered general ledger process required updates to several reports and interfaces generated from the Statewide Human Resource and Payroll (SHARP) system. Reports and interfaces generated on or after June 23, 2010 included the changes.

Initial issues with specific payroll reports and interfaces resulted in immediate corrections and
re-issuance of certain reports and interfaces either Statewide or for specific agencies. The recent identification of issues that impact multiple agencies has resulted in additional programming to correct these errors. The errors have included missing or duplicated data for certain adjustment transactions and incorrect position numbers for employees with multiple positions.

Due to these additional changes, the payroll reports and interfaces listed below will be re-run for all pay period end dates paid in FY11.

It is strongly recommended that agencies discard previous reports and interfaces and download the most current version from the agency MVS directory to provide accurate data for reporting.

  • KPAYWAGE: Salary and Wages Breakdown by Classification
  • KPAY303: Agency Salary and Expense File by Jobcode
  • KPAYGL5C: General Ledger Interface Download (select agencies)

The reports and interfaces will be run in order starting on Oct. 25, 2010 and beginning with the earliest FY11 pay period end date and moving forward to the most recent pay period end date.

The reports and interfaces for several pay period end dates may be recreated on the same day. Agency functional and technical staff should review agency processes to determine if any changes are necessary to accommodate these files. Agencies will have to review the Date/Time stamp on the file or open the file to determine the pay period end date of the data.

Agencies are encouraged to contact Payroll Services if any additional questions or issues are encountered with these reports.

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11-P-011 Addition of New Earnings Codes ORG and ORE due to FOP Agreement
DATE: November 5, 2010
SUBJECT:

Addition of New Earnings Codes ORG and ORE due to FOP Agreement

EFFECTIVE DATE: November 14, 2010
CONTACT:

Cindy Lo

(785) 296-2259

Cindy.Lo@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Addition of New Earnings Codes ORG and ORE due to Memorandum of Agreement between the State of Kansas and the Fraternal Order of Police Lodge No. 64

 

The Memorandum of Agreement, Article 21, between the State of Kansas Department of Corrections and the Fraternal Order of Police Lodge No. 64 signed in June 2010 granted the Lodge representatives statewide up to a total of one hundred and sixty (160) hours per calendar year shared among all eligible employees, which may be taken intermittently, to conduct or participate in the following FOP activities: FOP-related seminars and educational programs; FOP Kansas State Lodge Board meetings; FOP Kansas State Lodge conferences and conventions; National FOP board meetings or conferences and conventions; attend legislative hearings to discuss issues related to collective bargaining and terms and conditions of employment of bargaining unit members; attend Parole regional meetings to discuss membership with Parole staff members.

As a result of the agreement, earnings codes ORG (for Time and Leave non-exempt employees and Time and Labor non-exempt and exempt employees) and ORE (for Time and Leave exempt employees) have been added to SHARP effective November 14, 2010 to administer the organization paid leave hours:

Earnings Code Description Short Description Effective Date

ORG

Leave-Organization Leave-Org Nov. 14, 2010

ORE

Leave-Organization Exempt Leave-Org Nov. 14, 2010

The above earnings codes are only available for use by certain (covered) Department of Corrections FOP Lodge No. 64 parole officer I & II positions. The details of the agreement can be found at http://www.da.ks.gov/ps/subject/labor/docmoa.pdf.

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

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11-P-012 International ACH Transactions (IAT) in SHARP
DATE: November 9, 2010
SUBJECT:

International ACH Transactions (IAT) in SHARP

EFFECTIVE DATE: Immediately
CONTACT:

Earl Brynds

(785) 296-5376

Earl.Brynds@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Implementation of IAT Transactions in SHARP

 

The functionality for processing new International ACH transactions (IAT) has been completed in SHARP for all non-Regent agencies.  Agencies are reminded that new National Automated Clearing House Association (NACHA) rules require the identification of any ACH payment that may result in the transfer of those funds to a financial agency outside the U.S. as an International ACH transaction (IAT).  Transactions identified as IAT require additional information to be provided for the transactions to flow through the banking process.  However, it is anticipated that very few, if any, State of Kansas payroll transactions will be required to be identified as International ACH transactions.  The “International ACH Bank” checkbox is intended to be selected if AND ONLY IF the entire amount of the direct deposit to a specific account may result in the transfer of funds to a financial agency outside the U.S.  Otherwise, the “International ACH Bank” checkbox should be left blank on the employee Direct Deposit page in  SHARP.  Agencies should also confirm with any employee who has checked the ‘International ACH Bank’ box on Form DA-184, Authorization for Direct Deposit of Employee Pay, that the designation is valid before making entries on the Direct Deposit page.

Agencies can refer to Accounts and Reports Informational Circular 10-P-012 for information on where the IAT checkbox is located on the SHARP employee Direct Deposit page.

The final step for full IAT implementation is to complete changes for Regents processing.  Changes required to the Regents files to implement the IAT functionality will be released to the Regents in the near future.

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11-P-013 New VTSA Roth 403(b) After-Tax Investment Option
DATE: November 10, 2010
SUBJECT:

New VTSA Roth 403(b) After-Tax Investment Option

EFFECTIVE DATE: January 1, 2011
CONTACT:

Earl Brynds

(785) 296-5376

Earl.Brynds@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

New Plan Type, Benefit Plans and Deduction Code for Voluntary Tax Sheltered Annuity Roth 403(b) Investment Option

 

The Kansas Board of Regents (KBOR) has approved the recommendation to add a Roth 403(b) after-tax investment option as part of the voluntary retirement plan (VTSA). Only Regent university employees as well as employees of the KBOR office (agency 561) will be eligible to participate in the new Roth after-tax option. Eligible employees will have the flexibility to participate in either the current before-tax option, the new after-tax option, or both options concurrently. Employee contributions made under the after-tax investment option will not be reported on the employee’s W-2 per IRS regulations. Seven investment companies who currently offer the before-tax option will also offer the Roth 403(b) after-tax option and are listed in the table below.

To implement the new after-tax option, a new benefit plan type, a new payroll deduction code and new benefit plans will be added to SHARP effective for the payroll period beginning December 12, 2010 and ending December 25, 2010, paid January 7, 2011.

The new Benefit Plan Type, VTSA deduction code and benefit plans are:

PLAN TYPE DEDUCTION CODE DESCRIPTION SHORT DESCRIPTION BENEFIT PLAN BENEFIT PLAN DESCRIPTION INVEST OPTION

4T

VTSART

Voluntary TaxSheltAnnuity

-Roth

VTSAnnRoth

VTR009

VTSA-Roth After-Tax

009-ING Voluntary

4T

VTSART

Voluntary TaxSheltAnnuity

-Roth

VTSAnnRoth

VTR321

VTSA-Roth After-Tax

321-Ameriprise Financial Services, Inc

4T

VTSART

Voluntary TaxSheltAnnuity

-Roth

VTSAnnRoth

VTR413

VTSA-Roth After-Tax

413-Lincoln Investment Planning, Inc

4T

VTSART

Voluntary TaxSheltAnnuity

-Roth

VTSAnnRoth

VTR416

VTSA-Roth After-Tax

416-Lincoln National Life Ins Co

4T

VTSART

Voluntary TaxSheltAnnuity

-Roth

VTSAnnRoth

VTR655

VTSA-Roth After-Tax

655-Security Benefit Life Ins Co

4T

VTSART

Voluntary TaxSheltAnnuity

-Roth

VTSAnnRoth

VTR695

VTSA-Roth After-Tax

695-Teachers Ins Annuity Assoc

4T

VTSART

Voluntary TaxSheltAnnuity

-Roth

VTSAnnRoth

VTR769

VTSA-Roth After-Tax

769-AIG Variable Annuity Life Ins Co

The Department of Administration is responsible for making the necessary updates to the SHARP payroll system and for remitting these new VTSART payroll deductions for employees of the KBOR office (agency 561). Regents’ institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above and for remitting these new VTSART payroll deductions for their impacted employees.

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11-P-014 Optional Group Life Insurance Rate Changes
DATE: November 12, 2010
SUBJECT:

Optional Group Life Insurance Rate Changes

EFFECTIVE DATE: January 1, 2011
CONTACT:

Janice Wolfley

(785) 296-3699

Janice.Wolfley@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Optional Group Life Insurance Rate Changes

 

Please note that effective January 1, 2011 the Optional Group Life Insurance rates are changing as follows:

Age at the Beginningof the Calendar Year Monthly Premium per $1,000

Under 25

$0.05 (no change)

25-29

$0.05

30-34

$0.07

35-39

$0.08

40-44

$0.09

45-49

$0.13

50-54

$0.19

55-59

$0.36

60-64

$0.55

65-69

$1.06

70-74

$1.71

75 and older

$1.85

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 2011. Therefore, the January 21, 2011 paycheck (paycheck issued for the payroll period ending January 8, 2011) 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, 2011.

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11-P-015 Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 11, 2010 and December 25, 2010
DATE: November 17, 2010
SUBJECT:

Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 11, 2010 and December 25, 2010

EFFECTIVE DATE: Immediately
CONTACT:

Joyce Dickerson

(785) 296-3979

Joyce.Dickerson@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Changes to the payroll processing schedule for the payroll periods ending December 11, 2010 and December 25, 2010 due to December 24, 2010 and December 31, 2010 being designated state holidays

 

As a result of Governor Parkinson declaring Friday, December 24, 2010 and Friday, December 31, 2010 as state holidays, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 11, 2010 and December 25, 2010:

Friday, December 10, 2010

Payday for the payroll period ending November 27, 2010.

Monday, December 13, 2010

The Run 'C' off-cycle for the payroll period ending November 27, 2010 continues to be scheduled for December 13, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, December 16, 2010.

Tuesday, December 14, 2010

Paysheets for the on-cycle payroll for the period ending December 11, 2010 will be created as usual on Tuesday, December 14, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 14, 2010 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending December 11, 2010 will also occur December 14, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.

Wednesday, December 15, 2010

The second on-cycle preliminary pay calculation for the period ending December 11, 2010 will occur December 15, 2010.

Regents’ on-cycle payroll files for the period ending December 11, 2010 are due to the Department of Administration by 4:00 PM on December 15, 2010. (These files would normally be due Thursday, December 16, 2010.)

Thursday, December 16, 2010

The third on-cycle preliminary pay calculation for the period ending December 11, 2010 will occur December 16, 2010.

Friday, December 17, 2010

Final pay confirmation for the on-cycle payroll for the period ending December 11, 2010 will occur December 17, 2010. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on December 17, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on December 17, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Thursday, December 23, 2010. (It would normally be Friday, December 24, 2010.)

Regents’ Run ‘A’ off-cycle payroll files for the period ending December 11, 2010 are due to the Department of Administration by 4:00 p.m. on December 17, 2010.

Sunday, December 19, 2010

The Regents’ on-cycle files for the period ending December 11, 2010 will be processed.

Monday, December 20, 2010
The Run ‘A’ off-cycle for the period ending December 11, 2010 will be processed December 20, 2010. SHARP agencies have until 6:00 p.m. on this date to enter supplemental and/or adjustment run controls for the Run ‘A’ off-cycle. Paychecks for the Run ‘A’ off-cycle will be dated Thursday, December 23, 2010.

Tuesday, December 21, 2010

Regents’ Run ‘B’ off-cycle payroll files for the period ending December 11, 2010 must be received by the Department of Administration by 4:00 pm. on December 21, 2010 in order to be processed on Wednesday, December 22, 2010.

Wednesday, December 22, 2010

The Run 'B' off-cycle for the payroll period ending December 11, 2010 continues to be scheduled for December 22, 2010. The check issue date for the Run 'B' off-cycle will remain Monday, December 27, 2010.

Thursday, December 23, 2010

Payday for the payroll period ending December 11, 2010. (It would normally be Friday, December 24, 2010)

Friday, December 24, 2010
Christmas Holiday

Monday, December 27, 2010

The Run 'C' off-cycle for the payroll period ending December 11, 2010 continues to be scheduled for December 27, 2010. The check issue date for the Run 'C' off-cycle will remain Thursday, December 30, 2010.

Interface agencies must have time and leave files for the period ending December 25, 2010 submitted to the Department of Administration for processing by 5:00 p.m. on December 27, 2010.

Paysheets for the on-cycle payroll for the period ending December 25, 2010 will be created on Monday, December 27, 2010. All job actions (i.e. promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 p.m. on December 27, 2010 in order to be reflected on the paysheets for this period. (Paysheets would normally be created on Tuesday, December 28, 2010.)

The first on-cycle preliminary pay calculation for the period ending December 25, 2010 will also occur December 27, 2010, rather than Tuesday, December 28, 2010; therefore, for Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 PM in order for a paycheck record to be created. For Time and Labor agencies, all employees’ reported time must be entered into SHARP by 3:30 PM. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM in order for a paycheck record to be created.

Tuesday, December 28, 2010

The 2nd on-cycle preliminary pay calculation for the period ending December 25, 2010 will occur December 28, 2010.

Wednesday, December 29, 2010

The 3rd on-cycle preliminary pay calculation for the period ending December 25, 2010 will occur December 29, 2010.

Regents’ on-cycle payroll files for the period ending December 25, 2010 are due to the Department of Administration by 4:00 PM on December 29, 2010. (These files would normally be due Thursday, December 30, 2010.)

Thursday, December 30, 2010

Final pay confirmation for the on-cycle payroll for the period ending December 25, 2010 will occur December 30, 2010. For Time and Leave agencies, all employees’ time and leave records must be ‘OK to Process’, and for Time and Labor agencies, all employees’ payable time must be approved, by 6:00 PM on December 30, 2010 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on December 30, 2010 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, January 7, 2011.

Friday, December 31, 2010
New Year’s Holiday

Attached is a revised calendar for the month of December 2010 that highlights these payroll processing schedule changes due to the December 24th Christmas holiday and December 31st New Year’s holiday. The informational circular for key payroll processing dates in December for calendar year end activities will be released at a later date. 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 informational circular.

Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If 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 who are interested in subscribing to the Infolist, but have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm.

Attachment: Calendar pdf

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11-P-016 New Organization Dues Deduction Codes ORG065 and ORF065
DATE: November 23, 2010
SUBJECT:

New Organization Dues Deduction Codes ORG065 and ORF065

EFFECTIVE DATE: Payroll Period Ending December 25, 2010
CONTACT:

Janice Wolfley

(785) 296-3699

Janice.Wolfley@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Establish New Organization Dues Deduction Codes ORG065 and ORF065 for Public Employees Association of Kansas, Inc. (PEAK)

 

Public Employees Association of Kansas, Inc. (PEAK) has met the requirements of K.S.A. 75-5501(3)(b) for employee membership dues deductions. Therefore, a new organization dues deduction code (ORG065) and a corresponding fee deduction code (ORF065) will be added in SHARP, effective with the payroll period beginning December 12, 2010 and ending December 25, 2010, paid January 7, 2011 to administer membership dues deductions for participating employees. Currently, organization dues must be entered into employee general deduction data in SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code.

The bi-weekly deduction amount will be $9.17 for ORG065 and $.06 for ORF065 for total membership dues of $9.23 per bi-weekly payroll period.

As a reminder, for all non-KOSE employee organizations, agency personnel should receive enrollment/cancel cards from the organization for their employees. Agency personnel should then update SHARP and retain the cards for their files.

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes in the SHARP system. Regent’s institutions should ensure that the addition of the listed deduction codes is reflected in their individual systems effective December 12, 2010.

 

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11-P-017 December 2010 Payroll Processing
DATE: November 29, 2010
SUBJECT:

December 2010 Payroll Processing

EFFECTIVE DATE: Immediately
CONTACT:

Joyce Dickerson

(785) 296-3979

Joyce.Dickerson@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

December 2010 Payroll Processing

As 2010 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2010 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2010 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2011 balances; a corrected W-2 (Form W-2C) for 2010 will not be issued for the employee involved.

FINAL 2010 PAYCHECK

The final on-cycle paychecks for calendar year 2010 will be issued December 23, 2010.  Payroll transactions for the December 23, 2010 on-cycle paychecks will be posted to SMART on Tuesday night, December 21, 2010.  The final off-cycle paychecks for calendar year 2010 will be issued on December 30, 2010 (generated from the off-cycle processed on December 27, 2010).

PAYCHECK REVERSALS

Any 2010 paychecks that are undeliverable should be reversed as soon as possible.  SHARP agencies have until 6:00 p.m. on December 27, 2010 to enter paycheck reversals.  Any reversals entered after the 6:00 p.m. deadline on December 27, 2010 will update calendar year 2011 balances and will not be reflected in the employee’s 2010 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 27, 2010 to enter paycheck adjustment requests for any 2010 paychecks.  Adjustments processed in the December 27, 2010 off-cycle payroll will be reflected on the employee’s 2010 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 2010 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 Wednesday, December 15, 2010.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 15, 2010 for inclusion in the December 27, 2010 off-cycle.  However, if a large volume of DA-180 forms is received on the December 15, 2010 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2010 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, 2010 which are adjusting paychecks issued prior to January 1, 2011 will not result in a W-2C; the adjustment will update the employee’s 2011 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, 2010 will update the employee’s 2011 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 11, 2010, paid December 23, 2010 are due to the Department of Administration by 4:00 p.m. on December 15, 2010.

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2010 Paycheck Reversals

Regent Institutions must submit all transmittals for 2010 paycheck reversals by 4:00 p.m. on Thursday, December 23, 2010 in order to update the employee’s 2010 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 2011 payroll balances regardless of the paycheck issue date of the paycheck being reversed.  Reversals for paychecks issued prior to January 1, 2011 submitted after 4:00 p.m. on December 23, 2010 should default the pay adjust check date to January 1, 2011.

2010 Adjustments and Supplementals

In order to update employee balances for 2010, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Thursday, December 23, 2010.  The Run C off-cycle for the pay period ending December 11, 2010 generated on the night of Monday, December 27, 2010 will have a check issue date of December 30, 2010; all activity for this off-cycle will be reflected in the employees’ 2010 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 2010 date.

2011 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2011, any adjustments or supplementals submitted after 4:00 p.m. on Thursday, December 23, 2010, will be considered to be 2011 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2011 business, the employee’s 2011 balances will be updated.  These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2011 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2011, agencies should default the pay adjust check date to January 1, 2011).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2011, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2011 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 2011 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2010 deadline for the December 27, 2010 Run C’s off-cycle payroll will not be processed until the April 13, 2011 off-cycle payroll.  Since the files will be held, please do not begin submitting those files for processing until the week of April 11, 2011.  The deadline for submitting payroll interface files for the April 13, 2011 off-cycle is 4:00 p.m. on Tuesday, April 12, 2011.

GENERAL REMINDERS

United Way and Community Health Charities

The deduction END date on the general deduction page for 2010 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 12, 2010 and December 24, 2010 in order for the last 2010 deduction to be taken on the paycheck issued December 23, 2010. Agencies should verify the deduction end date for all employees enrolled in United Way and/or Community Health Charities to ensure deductions are taken correctly.  For calendar year 2011, agencies can enter a new row effective-dated between December 12, 2010 and December 25, 2010 in order for the first deduction for United Way or Community Health Charities for 2011 to be taken on the January 7, 2011 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 11, 2011 should be entered.  Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2011.

A new batch process will run the night of December 23, 2010 to establish the fee portion (deduction code UTFXXX) of the 2011 United Way/Community Health Charities deduction.  The batch process will establish the UTFXXX deduction code with the same effective date and deduction end date as the UTDXXX deduction code for 2011.  This process will reduce the 2011 deduction amount (UTDXXX deduction code) by $.06 and create a UTFXXX deduction code which defaults to the Deduction Code table for a deduction of $.06; the sum of the UTDXXX and UTFXXX deduction codes for 2011 will match the employee’s authorized deduction amount.  Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 27, 2010 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.

Tax Information

Pursuant to IRS regulations, all employees claiming an exemption from federal withholding

must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2010 to all SHARP employees who are exempt from federal withholding.  Notifications will be sent to the employee’s email address listed under ‘Update

My Profile’ in the Employee Self Service Center at: https://sharp.ks.gov/psp/ESS/?cmd=login.  Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.  For agency payroll/human resource staff, a worklist will be created that will identify these employees. The worklist will be sent on December 1, 2010 to the agency staff that has been designated as the “agency payroll workflow administrator” through the SHARP security roles.  The worklist can be accessed two ways in SHARP:  from the Home page, click on Worklist under the Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home.  For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2011.  If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2011 W-4s.  Employees should submit new paper W-4s by December 15, 2010 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 20, 2010 to enter all paper W-4s into the system.  Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row 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 2011.

The KPAY320 will be processed the evening of December 20, 2010.  This process searches for all employees for whom a W-4 email notification has been sent.  If a new W-4 has not been received, a January 1, 2011 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2011 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.

For any 2011 paper W-4s (for employees claiming exemption from withholding) received between December 20, 2010 and January 1, 2011, agency personnel will need to enter the data with a January 2, 2011 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2011 for any electronic W-4s received in this time period.

The KPAY320 will only insert new effective-dated rows for federal withholding tax.  Employees should be advised to also review their state tax withholding to determine if changes are needed.  Employees working in Kansas will need to complete a new form K-4 to make any needed state tax withholding change.  See A&R Informational Circular 08-P-011 issued October 25, 2007 for information pertaining to the use of Form K-4.

The 2011 Form W-4 will be posted to the Accounts and Reports website as soon as it is available from the IRS.
In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed.  The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010.  An email notification will be sent December 1, 2010 to all SHARP employees who are receiving advanced EIC payments, informing them of this change.  Agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2011.  KPAY320, which will process December 20, 2010, will insert a January 1, 2011 effective-dated row in the Employee Tax Data record of employees to whom a W-5 email notification was sent.  This record will stop all advance EIC payments for paychecks with a 2011 pay date.  Agency payroll/human resource staff should verify that all employees’ advance EIC payments have been stopped.

The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 20, 2010 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 2011.  The new tax data row will be dated January 1, 2011.  The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2011 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 whose current Federal Tax Data record in SHARP indicates the ‘Form 8233 Received’ checkbox does not contain a value of ‘Y’.

Deduction Information

All deductions for calendar year 2011 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.

-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 27, 2010.  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 17, 2010, and prior to December 27, 2010, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2010 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 2010 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 11, 2010 by personal reimbursement as soon as possible.

W-2s

Please note that if an employee has an active mailing address on the SHARP Personal Information/ Modify a Person/ Contact Information page, the mailing address will be used for mailing the W-2.  If the employee has no active 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 Contact Information page by 6:00 p.m. on December 28, 2010 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 28, 2010 to update the Contact Information 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, 2010.  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, 2010 and January 3, 2011.  W-2 forms will be mailed on or before January 31, 2011.  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 2010 that highlights the key payroll processing activity.  This calendar does not provide the same level of detail as that provided in this informational circular.  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://da.state.ks.us/sharp/infolist.htm.

Attachment: December 2010 Calendar pdf

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11-P-018 Employee Taxability of State-Owned or Leased Vehicles (Supersedes 10-P-013)
DATE: December 6, 2010
SUBJECT:

Employee Taxability of State-Owned or Leased Vehicles

EFFECTIVE DATE: January 1, 2011
CONTACT:

Cindy Lo

(785) 296-2259

Cindy.Lo@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

IRS Changes Cents-Per-Mile Valuation Rule for Calendar Year 2011

 

The Internal Revenue Service (IRS) has increased the standard mileage rate from 50 cents to 51 cents beginning January 1, 2011 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle.  The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.  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 51 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 2011 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,300 for a car (unchanged from 2010), and $16,200 for a passenger truck or van (up from $16,000 in 2010).  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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11-P-019 2011 Percentage Method Tables for Federal Tax Withholding (Supersedes 10-P-016)
DATE: December 17, 2010
SUBJECT:

2011 Percentage Method Tables for Federal Tax Withholding

EFFECTIVE DATE: January 1, 2011
CONTACT:

Jennifer Holthaus

(785) 368-6313

Jennifer.Holthaus@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2011.

 

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2011.  The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2011.  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 $3,700 for 2011.   

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 year, and 2) the employee anticipates no income tax liability in the upcoming year.   

An e-mail notification was sent on December 1, 2010 to all SHARP employees who were exempt from federal withholding in 2010.  The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2011.  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.ks.gov/psp/ESS/?cmd=login. Agencies will need to distribute notifications to their employees who lack an individual e-mail address.

   

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2011 W-4s.  The IRS has indicated that the 2011 Form W-4 will be available in the near future at the IRS website at http://www.irs.gov/ and will also be available at the Accounts and Reports website at http://www.da.ks.gov/ar/payroll/default.htm once it is released by the IRS.  Employees should submit their new W-4s as soon as possible to allow adequate time for processing.  Agency personnel have until 6:00 p.m. on December 20, 2010 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 2011. 

    

The KPAY320 will process during the batch cycle generated on the evening of December 20, 2010.  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, 2011 effective-dated row will be placed in the employee’s Tax Data record, and will update the employee’s marital status to ‘single’ and exemptions to ‘zero’.  

In prior years, this same process was used to notify employees claiming the Advance Earned Income Credit (EIC) that a new W-5 should be filed.  The Education Jobs Act of 2010, enacted August 10, 2010, repeals IRC §3507, which allows low- and moderate-income employees to receive the advance payments of the earned income tax credit (EIC) through their paycheck, for tax years beginning after December 31, 2010.  An email notification was sent December 1, 2010 to all SHARP employees who are receiving advanced EIC payments, informing them of this change.  Agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2011.  KPAY320 will insert a January 1, 2011 effective-dated row in the Employee Tax Data record of employees to whom a W-5 email notification was sent.  This record will stop all advance EIC payments for paychecks with a 2011 pay date.  Agency payroll/human resource staff should verify that all employees’ advance EIC payments have been stopped.

For any Form W-4s for 2011 received between December 20, 2010 and January 1, 2011, agency personnel will need to enter the data with a January 2, 2011 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Thursday, December 30, 2010 in order to be reflected in the on-cycle paycheck dated January 7, 2011.  Agency Workflow Administrators will also need to change the effective date to January 2, 2011 for any electronic FormsW-4s for 2011 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

2010 must file a new 8233 form for calendar year 2011 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, 2010 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 2011.  The new tax data row will be dated January 1, 2011.  Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2011 has been submitted. 

The KPAY320 creates a report (by SHARP agency) that identifies all agency employees whose exempt withholding status was updated in SHARP on the night of December 20, 2010. 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 whose tax data records indicate a current 8233 form has not been received.

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

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Attachment:  Tables for Percentage Method of Withholding pdf

11-P-020 Change in Social Security Employee Tax Rate (Supersedes 09-P-009)
DATE: December 17, 2010
SUBJECT:

Change in Social Security Employee Tax Rate

EFFECTIVE DATE: January 1, 2011
CONTACT:

Jennifer Holthaus

(785) 368-6313

Jennifer.Holthaus@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Social Security Employee Tax Rate Decreases to 4.2% effective January 1, 2011

 

As a result of the passage of the Tax Relief Act of 2010, the employee OASDI tax rate is reduced from 6.2% to 4.2% effective for wages paid in 2011.  The employer OASDI tax rate remains at 6.2%.  The Social Security wage base for OASDI will continue to be $106,800 for calendar year 2011.  Therefore, the maximum OASDI employee contribution for 2011 will be $4,485.60, a $2,136.00 decrease from the 2010 maximum of $6,621.60.   There continues to be no limit on wages subject to the Medicare tax in 2011.  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 $4,485.60 for OASDI and no maximum for Medicare. 

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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11-P-021 Submission of Prior Period Adjustments on Form DA-180
DATE: December 30, 2010
SUBJECT: Submission of Prior Period Adjustments on Form DA-180
EFFECTIVE DATE: January 1, 2011
CONTACT: Joyce Dickerson (785) 296-3979 Joyce.Dickerson@da.ks.gov
APPROVAL: Kent E Olson
SUMMARY:

Submission of All Prior Period Adjustments on Form DA-180 Due to Social Security Tax Employee Rate Reduction for 2011

 

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid for calendar year 2011.  The IRS has released Notice 1036 that contains this lower Social Security withholding rate and related information for implementing the change.

For SHARP agencies, any pay-affecting adjustment processed in 2011 to a check originally issued in 2010 will result in an unintended OASDI refund since the new rate will be applied to the entire gross amount of the original paycheck.  To avoid this unintended OASDI impact, all prior year SHARP pay-affecting adjustments requested in 2011 for checks issued in 2010 will need to be submitted for processing to the Division of Account and Reports, Payroll Processing Team on Form DA-180.  The ‘Attachment to DA-180’ should accompany the form.  Any pay-affecting adjustment entered for a check issued in 2010 will create an error in the off-cycle calculation.  Leave adjustments can continue to be made directly to the time sheet with no adverse effects.

Regent’s institutions are responsible for reviewing their adjustment processing to insure that prior year adjustments processed in 2011 do not generate an unintended OASDI adjustment for the entire OASDI gross based on the OASDI employee rate change.

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11-P-022 W-2 Wage and Tax Statements for Calendar Year 2010 (Supersedes 10-P-019)
DATE: January 3, 2011
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2010
EFFECTIVE DATE: Immediately
CONTACT: Jennifer Holthaus (785) 368-6313 jennifer.holthaus@da.ks.gov
APPROVAL: Kent E Olson
SUMMARY:

Information Pertaining to Employee 2010 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2010 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, 2010.  There may be two KTXPR55 reports with a December 30, 2010 date.  The one with the later time stamp should be used.  This report should be downloaded and retained by your agency to meet your historical record needs.  This report will be removed from your MVS mailbox and will be no longer available for downloading after January 28, 2011.

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 2010 W-2's that were printed for your agency.  The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with mailing the 2010 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 be used again for 2010.  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 Contact Information page 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 the W-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 2010 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, 2011.  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 2010 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 2005 through 2010, agencies are strongly encouraged to recommend that employees use the ‘W-2 Reissue Request’ functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/.  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 (2010, 2009, 2008, 2007, 2006, or 2005) the reissued W-2 is needed.  Duplicate W-2’s for 2005 - 2009 are currently available, and duplicate W-2’s for 2010 will be available starting on Wednesday, January 19, 2011.  Please note that duplicate W-2’s for the year 2005 will no longer be available after mid-April 2011.

The Division of Accounts and Reports, Payroll Services will continue to provide duplicate W-2’s 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 2010 W-2's for each printing.  The requests should be in employee ID order and should include each employee's name and correct mailing address in addition to the employee ID.  Requests for duplicate W-2's for years prior to 2010 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 Payroll Services at telephone number 785-296-2311.

Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms.  The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form.  In addition, 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 / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / 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 on-cycle and off-cycle paychecks dated December 23, 2010 and off-cycle checks dated December 27, 2010 and December 30, 2010 are included in the 2010 W-2 amounts.

Attachments:
2010 W-2 Wage and Tax Statement Calculations(xls)

Sample KPAY318.SQR (xls)

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11-P-023 2011 W-2 Production Report Schedule (Supersedes 10-P-020)
DATE: January 3, 2011
SUBJECT: 2011 W-2 Production Report Schedule
EFFECTIVE DATE: Immediately
CONTACT: Jennifer Holthaus (785) 368-6313 jennifer.holthaus@da.ks.gov
APPROVAL: Kent E Olson
SUMMARY:

2011 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 2011 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 2011 W-2 production reports are scheduled to be generated:

  • Friday, February 18, 2011
  • Friday, March 18, 2011
  • Friday, April 29, 2011
  • Friday, May 13, 2011
  • Friday, June 10, 2011
  • Friday, July 8, 2011
  • Friday, August 5, 2011
  • Friday, September 2, 2011
  • Friday, September 30, 2011
  • Friday, October 28, 2011
  • Thursday, November 10, 2011
  • Wednesday, November 23, 2011
  • Wednesday, December 7, 2011
  • Monday, December 12, 2011
  • Monday, December 19, 2011
  • Tuesday, December 27, 2011
  • Thursday, December 29, 2011 - 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. Errors appearing on TAX910ER for SHARP agencies will be monitored and corrected by Accounts and Reports.  Regent’s institutions are responsible for monitoring and correcting their own errors in a timely manner.  No action is required by the agency on the KTXPR55.  Once the W-2’s for 2011 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 TAX900 in their agency mailbox on the MVS. The TAX900 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.

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11-P-024 New Organization Dues Deduction Codes ORG066 and ORF066
DATE: February 10, 2011
SUBJECT: New Organization Dues Deduction Codes ORG066 and ORF066
EFFECTIVE DATE: Payroll Period Ending March 5, 2011
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley@da.ks.gov
APPROVAL: Kent E Olson
SUMMARY:

Establish New Organization Dues Deduction Codes ORG066 and ORF066 for Public Employees Association of Kansas, Inc. (PEAK)

Public Employees Association of Kansas, Inc. (PEAK) has requested that part-time employees have the ability to enroll as a member of PEAK at a dues rate that is less than the current dues rate for a full-time employee. For the purposes of this deduction, a part-time employee is an individual whose employment position has a Full-Time Equivalent rate (FTE) < 1.0.

A new organization dues deduction code (ORG066) and a corresponding fee deduction code (ORF066) will be added in SHARP, effective with the payroll period beginning February 20, 2011 and ending March 5, 2011, paid March 18, 2011 to administer membership dues deductions for participating employees who qualify for the part-time rate. Currently, organization dues must be entered into employee general deduction data in SHARP as two separate deduction codes: one organizational dues deduction code and one corresponding fee deduction code.

The bi-weekly deduction amount will be $4.55 for ORG066 and $.06 for ORF066 for total membership dues of $4.61 per bi-weekly payroll period.

As a reminder, for all non-KOSE employee organizations, agency personnel should receive enrollment/cancel cards from the organization for their employees. For employees enrolling in the Public Employees Association of Kansas, Inc, (PEAK), it is the responsibility of the employing agency to review the employee’s position FTE and assign the appropriate deduction code based on full-time or part-time employment. Agency personnel should then update SHARP and retain the cards for their files.

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes in the SHARP system. Regent’s institutions should ensure that the addition of the listed deduction codes is reflected in their individual systems effective February 20, 2011.

 

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11-P-025 Employer KPERS Death and Disability Insurance Contributions Moratorium (Supersedes 10-P-030)
DATE: February 21, 2011
SUBJECT: Employer KPERS Death and Disability Insurance Contributions Moratorium
EFFECTIVE DATE: April 1, 2011
CONTACT: Cindy Lo (785) 296-2259 Cindy.Lo@da.ks.gov
APPROVAL: Kent E Olson
SUMMARY:

Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2011 to June 30, 2011

S Sub for HB 2219, passed in the 2010 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2010 until June 30, 2010, and then again from April 1, 2011 to June 30, 2011.  As a result, the Division of Accounts and Reports will not collect or remit the employer portion of  KPERS Death and Disability insurance contributions for pay periods that have an original check issue date on and after April 1, 2011.  The KPERS Death and Disability Insurance moratorium will commence again effective with the pay period beginning March 6, 2011 and ending March 19, 2011, paid April 1, 2011.

The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after April 1, 2011 for an original check issue date and pay period that does NOT fall within a moratorium period will continue to have the contributions collected and remitted. Remittances will continue to be made according to the normal schedule for the prior period adjustments.

Agencies are reminded that it is extremely important that the appropriate ‘GTL’ code be established in SHARP’s Retirement Plans page ( Plan Type 7U) under Benefits, or for Legislators the Life and AD/D Benefits page ( Plan Type 22) for new employees hired after March 6, 2011, even though the agency will not be charged for KPERS Death and Disability contributions. If the appropriate ‘GTL’ code is not established, the imputed income, if applicable, will not be properly calculated for the new employee.

Regent institutions are reminded that the Death and Disability Insurance moratorium is for the employer paid contributions only. The moratorium does not extend to 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.

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

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11-P-026 Organization Dues Change for ORG059 (Supersedes 09-P-028)
DATE: March 28, 2011
SUBJECT: Organization Dues Change for ORG059
EFFECTIVE DATE: Payroll Period Ending April 2, 2011
CONTACT: Janice Wolfley (785) 296-3699 Janice.Wolfley @da.ks.gov
APPROVAL: Kent E Olson
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 $14.94 to $15.94 per biweekly payroll period. The service fee will remain $0.06 per biweekly payroll period. The new rate will become effective with the payroll period beginning March 20, 2011 and ending April 2, 2011, paid April 15, 2011.

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 April 15, 2011.

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11-P-027 Change in KOSE Organization Dues Deduction Amounts (Supersedes 10-p-010)
DATE: April 15, 2011
SUBJECT:

Change in KOSE Organization Dues Deduction Amounts

EFFECTIVE DATE: Payroll Period Ending April 30, 2011
CONTACT:

Janice Wolfley

(785) 296-3699

Janice.Wolfley@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Organization Dues Changes for KOSE

The organization dues for members of the Kansas Organization of State Employees (KOSE) will be changing effective with the payroll period beginning April 17, 2011 and ending April 30, 2011, paid May 13, 2011 as follows:

Deduction Code Hourly Rate of Pay Bi-weekly Dues Deduction
ORG502 $ 13.99 or Less $15.08
ORG503 $ 14.00 - $ 14.99 $15.66
ORG504 $ 15.00 - $ 15.99 $16.74
ORG505 $ 16.00 - $ 16.99 $17.82
ORG506 $ 17.00 - $ 17.99 $18.90
ORG507 $ 18.00 or Greater $19.98

As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG502-507 deduction codes) and the $0.06 service fee (ORF502-507 deduction codes) added together.

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 KOSE dues deductions. Regent’s institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after May 13, 2011.

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11-P-028 Fiscal Year End Payroll Processing for FY 2011 (Supersedes 10-p-024)
DATE: May 12 , 2011
SUBJECT:

Fiscal Year End Payroll Processing for FY 2011

EFFECTIVE DATE: Immediately
CONTACT:

Joyce Dickerson

(785) 296-3979

Joyce.Dickerson@da.ks.gov

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.

Note: Another informational circular regarding the fiscal year 2012 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 11, 2011 will use fiscal year 2011 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 11, 2011 will use fiscal year 2012 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, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted. Please note, the Run C off-cycle (scheduled for June 27, 2011, paid June 30, 2011) for the pay period ending June 11, 2011 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2011 expenditures.

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 during the batch cycle the night of June 19, 2011 and should be completed by Monday morning, June 20, 2011. In that process, a new row will be added to the Department Budget tables with an effective date of June 12, 2011 (beginning date of the first on-cycle payroll charged to FY2012). The Budget End Date will be June 11, 2012. Agencies should not enter any rows with an effective date greater than or equal to June 12, 2011 until after the FY2012 insert has been completed. When adding new rows for FY2012, agencies should verify that June 11, 2012 was used as the Budget End Date for FY2012.

GHI Adjustments

As of July 1, 2011, NO payroll processing for GHI adjustments should be made for contract year 2009. Contact Brenda Vaughn (785) 296-3226 Brenda.Vaughn@khpa.ks.gov at Kansas Health Policy Authority about any event maintenance changes that may affect claims processing for contract year 2009.

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 SMART INF06 interface files affect the correct fiscal year expenditures.

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 generally 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. 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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11-P-029 Parking Fee Increase - Curtis Building Garage – FY2012 (Supersedes 10-P-028)
DATE: June 7, 2011
SUBJECT:

Parking Fee Increase - Curtis Building Garage – FY2012

EFFECTIVE DATE: Payroll Period Beginning June 12, 2011 and Ending June 25, 2011, Paid July 8, 2011
CONTACT:

Earl Brynds

(785) 296-5376

Earl.Brynds @da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Parking Fee Increase - Curtis Building Garage – FY2012

 

Pursuant to Kansas Administrative Regulation 1-45-22(b)(2), parking fees for the Curtis Building Garage will increase by 2% effective with the start of fiscal year 2012. To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 12, 2011 and ending June 25, 2011, paid July 8, 2011:

Deduction Code (Group 1) New bi-weekly rate for pped 6/25/11
PKT08B 25.32
PPKT08 25.32
PKAD05 (admin fee) 1.94 ($25.32 * .0765)

 

Employees with Attorney General who park in the Curtis Building Garage under parking deduction codes PKT10B and PPKT10 will see their bi-weekly deduction and associated administrative fee increase as follows:

Deduction Code(Group 2) New bi-weekly rate for pped 6/25/11
PKT10B 12.66
PPKT10 12.66
PKAD07 (admin fee) 0.97 ($12.66 * .0765)

The parking rates for Secretary of State employees are listed in Group 3 below and do not change:

Deduction Code (Group 3) Bi-weekly rate for pped 6/25/11

PKT09B

9.23

PPKT09

9.23

PKAD06 (admin fee)

0.71 ($9.23 * .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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11-P-030 Fiscal Year 2012 Payroll Contribution Rates (Supersedes 10-P-031)
DATE: June 17, 2011
SUBJECT:

Fiscal Year 2012 Payroll Contribution Rates

EFFECTIVE DATE: Pay Period Beginning June 12, 2011; Ending June 25, 2011;
Paid July 8, 2011
CONTACT:

Kathy Ogle

(785) 296-2290

Kathy.Ogle@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Fiscal Year 2012-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 2012. The fiscal year 2012 rates will become effective with the on-cycle payroll period beginning June 12, 2011, ending June 25, 2011 and paid July 8, 2011. The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2011.

For the first nine months of Fiscal Year 2012, 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, 2011 to June 30, 2011, 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 12, 2011 and ending June 25, 2011, paid July 8, 2011. However, Senate Sub for HB 2014 calls for an additional moratorium between April 1, 2012 and June 30, 2012. 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; between March 1, 2009 and November 30, 2009; between April 1, 2010 and June 30, 2010; and between April 1, 2011 and June 30, 2011.

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 2012, employer rates are 11.13% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 15.13%. 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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Attachments ABC pdf

11-P-031 Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium (Supersedes 11-P-025)
DATE:

June 20, 2011

SUBJECT:

Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium

EFFECTIVE DATE: July 1, 2011
CONTACT:

Earl Brynds

(785) 296-5376

Earl.Brynds@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning June 12, 2011 and ending June 25, 2011, paid July 8, 2011

S Sub for HB 2219, passed in the 2010 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2010 until June 30, 2010, and then again from April 1, 2011 to June 30, 2011. The 2011 moratorium will expire on July 1, 2011. As a result, the Division of Accounts and Reports will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning June 12, 2011 and ending June 25, 2011, paid July 8, 2011.

Senate Sub for HB 2014, passed in the 2011 legislative session, calls for an additional moratorium between April 1, 2012 and June 30, 2012. Another informational circular will be issued closer to the implementation date of the 2012 moratorium on April 1, 2012 to remind agencies to suspend employer KPERS Death and Disability Insurance contributions.

The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after July 1, 2011 for pay periods ending on and between April 3, 2010 and June 12, 2010 and on and between March 19, 2011 and June 11, 2011 will continue to NOT have the contributions collected and remitted.

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

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11-P-032 Housing, Food Service and Other Employee Maintenance (Supersedes 10-P-025)
DATE:

June 22, 2011

SUBJECT:

Housing, Food Service and Other Employee Maintenance

EFFECTIVE DATE: July 1, 2011
CONTACT:

Jennifer Holthaus

Joyce Dickerson

(785) 368-6313

(785) 296-3979

Jennifer.Holthaus@da.ks.gov
Joyce.Dickerson@da.ks.gov

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.  If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2012 will require entry into the SHARP v8.9 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income.  FY2012 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 27, 2011 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 25, 2011 (paychecks dated July 8, 2011).   

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.

Attachment DA-171 pdf

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11-P-033 Employee Taxability of State-Owned or Leased Vehicles (Supersedes 11-P-018)
DATE:

June 27, 2011

SUBJECT:

Employee Taxability of State-Owned or Leased Vehicles

EFFECTIVE DATE: July 1, 2011
CONTACT:

Kathy Ogle

(785) 296-2290

Kathy.Ogle@da.ks.gov

APPROVAL: Image of approval signature.
SUMMARY:

IRS Changes Cents-Per-Mile Valuation Rule for Final Six Months of
Calendar Year 2011

 

The Internal Revenue Service (IRS) has increased the standard mileage rate from 51 cents to 55.5 cents beginning July 1, 2011, through December 31, 2011 under the Cents-Per-Mile method of valuing an employee’s personal (commuting) use of a state-owned or leased vehicle.  The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.  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 55.5 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 2011 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,300 for a car (unchanged from 2010), and $16,200 for a passenger truck or van (up from $16,000 in 2010).  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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