Kansas Department of Administration

FY 2012

12-P-001 Addition of Earnings Code for Settlement Pay - No KPERS
12-P-001
DATE: July 6, 2011
SUBJECT: Addition of Earnings Code for Settlement Pay-No KPERS
EFFECTIVE DATE: July 10, 2011
CONTACT:

Earl Brynds

(785) 296-5376

 

Earl.Brynds@da.ks.gov

APPROVAL: Signature on File
SUMMARY:

Addition of Earnings Code ‘STP’ for Settlement Pay-No KPERS

 

A recent KPERS interpretation of KSA 74-4902(33) in regard to the KPERS eligible salary definition stipulates that salary shall not include severance/settlement pay or any other payments to the member determined by the board to not be payments for personal services performed.  Currently, there is no settlement type pay earnings code set up in SHARP that is not subject to KPERS.

 

Therefore, a new earnings code has been added to SHARP effective July 10, 2011 to administer the Settlement Pay-No KPERS earnings.  The following earnings code is eligible to be used starting with the pay period beginning July 10, 2011 through July 23, 2011 paid August  5, 2011.

 

Earnings Code Description Short Description Effective Date

STP

Settlement Pay-No KPERS

SetNoKPERS

07/10/2011

 

STP is an Amounts Only earnings code and any settlement pay earnings distributed by its use will not be subject to KPERS.  The Settlement Pay earnings code should only be used for negotiated compensation settlements.

Time and Labor agencies: The Division of Personnel Services has created a corresponding STP (Settlement Pay-No KPERS) Time Reporting Code (TRC) to coincide with the STP Earnings Code.  It is also effective July 10, 2011.

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

 

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12-P-002 Learning Quest changes
DATE: July 25, 2011
SUBJECT: Learning Quest changes
EFFECTIVE DATE: Immediately
CONTACT:

Nancy Haufler

 

(785) 296-5368

 

Nancy.Haufler@da.ks.gov

 

APPROVAL: Olson signature
SUMMARY:

Learning Quest payroll deduction changes

State employees can now start or change a Learning Quest payroll deduction online at www.learningquest.com.  Employees can either log in to their account and select payroll deduction from the list on the left or print the Payroll Direct Deposit form from the Learning Quest Forms page at https://www.learningquest.com/content/forms.html

and send it to Learning Quest.  Once the request is processed on-line, the employee will receive a confirmation page with instructions to complete the form (see example of confirmation page attachment) and then they should bring it to their HR/Payroll office so that it can be entered in SHARP as a Learning Quest deduction.  If the employee mails in their request, they will receive the confirmation page with instructions back in the mail.

If the employee forgets to check the box on their application/change request identifying themselves as a state employee, the instructions they get back from Learning Quest will include a routing number and account number that other employers use for ACH instructions.  If an employee brings in ACH instructions, please disregard it and use the information on the confirmation page to enter/update the Learning Quest deduction in SHARP as needed.

The Learning Quest Payroll Deduction form that previously resided on the A&R website should no longer be used to request Learning Quest changes.

Employees with a current Learning Quest payroll deduction are only affected by this change if they choose to make a change to their current deduction.

Questions regarding the Learning Quest Program can be directed to Scott Gates, Learning Quest Director at 785-296-5317.

 

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Attachment:Example Confirmation Page pdf

12-P-003 Addition of Earnings Codes for Voluntary Retirement Incentive Program Implementation
DATE: August 25, 2011
SUBJECT: Addition of Earnings Codes for Voluntary Retirement Incentive Program Implementation
EFFECTIVE DATE: August 2, 2011
DPS Contact: Kraig Knowlton (785) 296-1082 kraig.knowlton@da.ks.gov
CONTACT:

Earl Brynds

 

(785) 296-5376

 

earl.brynds@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

New Earnings Codes for Voluntary Retirement Incentive Program Implementation

The 2011 State of Kansas Voluntary Retirement Incentive Program has been implemented effective August 2, 2011 and continues through September 19, 2011. 

As a result of the implementation of this program, new earnings codes have been added to SHARP effective August 7, 2011 to administer the Voluntary Retirement Incentive program. The State Leave Assessment Fund may not be used to fund these payouts. The following earnings codes are eligible to be used starting with the pay period beginning August 7, 2011, in accordance with the provisions set out in the materials regarding the Voluntary Retirement Incentive Program, which can be seen at the following link:  http://www.da.ks.gov/vrip/default.htm.

Earnings Code Description Short Description Effective Date

VRI

Vol Retire Incentive -No KPERS

VolNoKPERS

8/7/2011

SLV

Sick Leave Payout - Voluntary

SickPayout

8/7/2011

SLX

Sick Leave Payout-Vol-No KPERS

SickPayout

8/7/2011

VLV

Vacation Leave Payout Voluntary

VacPayout

8/7/2011

VLX

Vac Leave Payout-Vol-No KPERS

VacPayout

8/7/2011

 

Pursuant to the completion of the Voluntary Retirement Incentive Program, the new earnings codes should no longer be used for payroll processing after the on-cycle is confirmed for the pay period beginning September 18, 2011 through October 1, 2011 paid October 14, 2011.

VRI is an Amounts Only earnings code and the lump sum earnings ($ 6,500.00) distributed by its use will not be subject to KPERS.    Following the insertion of the standard vacation and sick leave payout codes on Tuesday night of payroll calc week in SHARP, agency personnel are responsible for updating the default codes to the appropriate new earnings codes/time reporting codes on the employee time sheet as follows for employees retiring under the incentive program only:

VLP must be updated to VLV

VLK must be updated to VLX

SLP must be updated to SLV

SLK must be updated to SLX

Time and Labor agencies: The Division of Personnel Services has created corresponding Time Reporting Codes (TRCs) to coincide with the Earnings Codes listed above.  They are also effective August 7, 2011.  Time and Labor agencies will continue to use the SLH (Sick Leave Payout Hours) and VLH (Vacation Leave Payout Hours) TRCs to record the payout hours.

 

Agencies/Positions funded solely from State sources:

For agencies/positions funded solely from State funding sources, Sick and Vacation leave payouts, as well as the lump sum retirement incentive ($6,500) will be funded by the agencies and will charge to the applicable funding splits that are used to fund the final paycheck for the retiree.  Agencies who wish to fund the lump sum retirement incentive or payouts from a state funding source available to the agency that is different from the employee’s regular payroll funding can set up funding for the applicable earnings codes (VRI,VLV, VLX, SLV, SLX) using combo codes in the Department Budget Tables in SHARP and/or on the timesheet in Time and Labor.

Agencies/Positions funded in part or in full from Federal sources:

For agencies/positions funded in part or in full from Federal sources, agencies are responsible for the determination of which payments (if any) related to the voluntary retirement incentive (vacation leave payout, sick leave payout, and the lump sum incentive) are eligible to be funded from the Federal programs/funding sources utilized to fund the employee/position.  If the agency determines that the payments cannot be funded using the same funding/splits for the employee’s final paycheck, the agency is then responsible for ensuring the appropriate funding (Federal or State) is established through set up of the applicable earnings codes (i.e. VRI, VLV, VLX, SLV, SLX) using combo codes in the Department Budget Tables in SHARP and/or on the timesheet in Time and Labor in order to insure the appropriate funding is charged to State sources or Federal sources.

The Office of General Services, Payroll Systems Team, is responsible for adding the 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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12-P-004 Addition of New Account Codes for Voluntary Retirement Incentive Program Expenditure Tracking
DATE: August 30, 2011
SUBJECT: Addition of New Account Codes for Voluntary Retirement Incentive Program Expenditure Tracking
EFFECTIVE DATE: August 2, 2011
CONTACT:

Earl Brynds

 

(785) 296-5376

 

earl.brynds@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

New Account Codes for Voluntary Retirement Incentive Program Expenditure Tracking-Supplement to Info Circ 12-P-003

As a result of the implementation of the Voluntary Retirement Incentive Program, new account codes have been added to SMART/SHARP effective August 7, 2011 to use for payroll expenditure tracking. The following account codes are eligible to be used starting with the pay period beginning August 7, 2011.

 

Account Code Description Short Description Effective Date

514401

Volntry Retire Incntv Cash Opt

VolRetCash

8/7/2011

514402

Volntry Rtire Inctv Vac Payout

VolRetVac

8/7/2011

514403

Volntry Retire Incntv Sick Pay

VolRetSick

8/7/2011

 

Account Code 514401 will be used for the cash lump sum retirement incentive ($6,500) only and processed with earnings code VRI.   Account Code 514402 will be used for the Vacation leave payouts only and processed with earnings codes VLV and VLX.  Account Code 514403 will be used for the Sick leave payouts only and processed with earnings codes SLV and SLX.  These account codes will only track gross payout expenditures.  No related employer fringe costs will be recorded using these account codes.

Pursuant to the completion of the Voluntary Retirement Incentive Program, the new account codes should no longer be used for payroll processing after the on-cycle is confirmed for the pay period beginning September 18, 2011 through October 1, 2011 paid October 14, 2011.

The Office of General Services, Payroll Systems Team, is responsible for adding the new account codes in the SHARP system. Regents' institutions are responsible for implementing the new account codes in their payroll systems.

 

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12-P-005 Extension of the Voluntary Retirement Incentive Program
DATE: September 2, 2011
SUBJECT: Extension of the Voluntary Retirement Incentive Program
EFFECTIVE DATE: August 31, 2011
CONTACT:

Earl Brynds

 

(785) 296-5376

 

earl.brynds@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Extension of the Voluntary Retirement Incentive Program- Earnings and Account Code Usage

On August 31, 2011, the Voluntary Retirement Incentive Program (VRIP) was extended through October 31, 2011. As a result of the extension, agencies should also note the extended use of the new earnings and account codes established in SHARP to administer the VRIP.

Pursuant to the completion of the Voluntary Retirement Incentive Program, the new earnings and account codes should now no longer be used for payroll processing after the on-cycle is confirmed for the pay period beginning October 30, 2011 through November 12, 2011 paid November 23, 2011.

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12-P-006 Change in Organization Dues Deduction Amounts
DATE: September 6, 2011 Supersedes: 11-P-007
SUBJECT: Change in Organization Dues Deduction Amounts
EFFECTIVE DATE: Payroll Period Ending September 17, 2011
CONTACT:

Janice Wolfley

 

(785) 296-3699

 

janice.wolfley@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Organization Dues Changes for KAPE

The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning September 4, 2011 and ending September 17, 2011, paid September 30, 2011 as follows:

Deduction Code Hourly Rate of Pay Bi-Weekly Salary Dues Deduction
ORG001 $ 13.99 or Less $ 1119.20 or Less $ 9.82
ORG002 $ 14.00 – 14.99 $ 1119.21 – 1199.20 $10.81
ORG003 $ 15.00 – 15.99 $ 1199.21 – 1279.20 $11.75
ORG004 $ 16.00 – 16.99 $ 1279.21 – 1359.20 $12.72
ORG005 $ 17.00 – 17.99 $ 1359.21 – 1439.20 $13.69
ORG006 $ 18.00 or Greater $ 1439.21 or Greater $14.66

As a reminder, the service fee will remain $0.06 per biweekly payroll period. Therefore, the amounts listed above include the deduction amount (ORG001-006 deduction codes) and the $0.06 service fee (ORF001-006 deduction codes) added together.

The Office of General Services, Payroll Systems Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 30, 2011.

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12-P-007 SHARP Bi-Weekly Payroll Schedule for 2012
DATE: September 15, 2011
SUBJECT: SHARP Bi-Weekly Payroll Schedule for 2012
EFFECTIVE DATE: Calendar Year 2012
CONTACT:

Earl Brynds

 

(785) 296-5376

 

Earl.Brynds@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2012

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2012. 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 Office of General Services 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 2012 PDF
Bi-Weekly Payroll Schedule for OFF-cycle Calendar Year 2012 PDF

12-P-008 Change in Organization Dues Deduction for Pittsburg State University – Kansas National Education Association #30 (Supersedes 11-P-006)
DATE: September 29, 2011
SUBJECT: Change in Organization Dues Deduction for Pittsburg State
University – Kansas National Education Association #30
EFFECTIVE DATE: Payroll Period Ending October 1, 2011
CONTACT:

Nancy Ruoff

 

(785) 296-2853

 

Nancy.Ruoff@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $28.65 to $29.50 per biweekly payroll period. The new rate will become effective with the payroll period beginning September 18, 2011 and ending October 1, 2011, paid October 14, 2011.

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 $28.59 to $29.44 and the fee (ORF030) will remain at $.06 (for a total of $29.50 per biweekly payroll period).

The Office of General Services, 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 October 14, 2011.

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12-P-009 Addition of New Health Savings Accounts/Medical Deduction Codes
DATE: October 5, 2011
SUBJECT: Addition of New Health Savings Accounts/Medical Deduction Codes
EFFECTIVE DATE: Pay Period Beginning December 11, 2011; Ending December 24, 2011; Paid January 6, 2012
CONTACT:

Earl Brynds

 

(785) 296-5376

 

Earl.Brynds@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Addition of New Health Savings Accounts/Medical Deduction Codes and Other Changes for Group Health Insurance Plan Year 2012

For plan year (PY) 2012, the Health Care Commission approved the addition of a new Health Savings Account (HSA) benefit option for each employee participating through the State of Kansas health insurance program in a Qualified High Deductible Health Plan (QHDHP) and making the required employee contribution to a Health Savings Account. In addition to the current QHDHP’s offered by Coventry Healthcare and United Healthcare, employees will be eligible to enroll in a new QHDHP offered through Blue Cross. SelectAccount is the custodian for Blue Cross participants.

Another major change for PY 2012 is Preferred Health being merged with Coventry. Current Preferred Health HSA and medical deduction codes will not be valid and will no longer be used in PY 2012. Members in prior Preferred Health HSA plans will be converted to Coventry HSA plans during open enrollment. Any adjustments made to previous Preferred Health HSA and medical deduction codes will be reported and remitted to Coventry.

For all three QHDHP benefit options, the HSA annual employer contribution amounts for full-time employees will be $900 for single coverage and $1350 for dependent coverage. For part-time employees, the HSA annual employer contribution amounts will be $675.12 for single coverage and $1012.56 for dependent coverage.

For all employees except 9-month paid employees at Regents Institutions, the agency GHI composite rate cost for the QHDHP benefit options will be reduced by the amount of the HSA employer contribution and the HSA employer contribution will be added as a flat employer contribution to the FSA benefit setup tables in SHARP. Both GHI and HSA employer contributions will be charged to Account Code 519500.

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

To accommodate the new HSA plan, new deduction codes will be added in SHARP effective for the payroll period beginning December 11 and ending December 24, 2011, paid January 6, 2012.

The new Medical and HSA deduction codes for Blue Cross are:

PLAN TYPE DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

10

BCCCAD

BCBS - Plan C - AT - NTU Disc MedNTUDisc

10

BCCCAT

BCBS - Plan C - AT - TU NoDisc Medical

10

BCCCBD

BCBS - Plan C - BT - NTU Disc MedNTUDisc

10

BCCCBT

BCBS - Plan C - BT - TU NoDisc Medical

 

All employees except Regent 9-month:

 

PLAN TYPE DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

6Y

HSASBL

BCBS-Health Sav Acct-Single-FT HSA-Single

6Y

HSASBX

BCBS-Health Sav Acct-Single-PT HSA-SglePT

6Z

HSADBP

BCBS-Health Sav Acct-Dep-FT HSA-Depend

6Z

HSADBX

BCBS-Health Sav Acct-Dep-PT HSA-DepPT

 

Regent 9-month (16deductions):

PLAN TYPE DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

6Y

HSXSBL

BCBS-Health Sav Act-Sgl-FT16 HSA-Sing16

6Y

HSXSBX

BCBS-Health Sav Act-Sgl-PT16 HSA-SgPT16

6Z

HSXDBP

BCBS-Health Sav Acct-Dep-FT16 HSA-Dep16

6Z

HSXDBX

BCBS-Health Sav Acct-Dep-PT16 HSADepPT16

 

The Office of General Services, Payroll Services Section will remit the employee and employer monies to SelectAccount for all agencies.

The Office of General Services, Payroll Systems Team will make changes to the SHARP payroll system to implement the new Health Savings Account benefit option/new deduction codes. Regent’s institutions are responsible for ensuring that the new Health Savings Account benefit option/new deduction codes are available in their individual systems. In addition, Regent’s institutions should be prepared to test their benefits interface and payroll files for the new deductions by November 1, 2011.

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12-P-010 Key Payroll Processing Dates in November 2011
DATE: October 25, 2011
SUBJECT: Key Payroll Processing Dates in November 2011
EFFECTIVE DATE: November 2011
CONTACT:

Joyce Dickerson

(785) 296-3979

joyce.dickerson@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Payroll processing schedule changes due to the November 2011 holidays.

Friday, November 11, 2011 (Veterans' Day), Thursday, November 24, 2011 and Friday, November 25, 2011 (Thanksgiving Holiday) are designated holidays for state service in 2011.

Due to the holidays in November, changes are required 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.

Tuesday, November 1, 2011

Paysheets for the on-cycle payroll for the period ending October 29, 2011 will be created on Tuesday, November 1, 2011. All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 1, 2011 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending October 29, 2011 will also occur November 1, 2011; 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 2, 2011

The second on-cycle preliminary pay calculation for the period ending October 29, 2011 will occur November 2, 2011.

Regents' on-cycle payroll files for the period ending October 29, 2011 are due to the Department of Administration by 4:00 PM on November 2, 2011.  (These files would normally be due Thursday, November 3, 2011.)

Thursday, November 3, 2011

The third on-cycle preliminary pay calculation for the period ending October 29, 2011 will occur November 3, 2011.

Friday, November 4, 2011

Final pay confirmation for the on-cycle payroll for the period ending October 29, 2011 will occur November 4, 2011.  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 4, 2011 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 4, 2011 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 29, 2011 must be received by the Department of Administration by 4:00 PM on November 4, 2011.

Sunday, November 6, 2011

The Regents' on-cycle files for the period ending October 29, 2011 will be processed.

Monday, November 7, 2011

The Run A off-cycle for the period ending October 29, 2011 will be processed November 7, 2011.  Paychecks for the Run A off-cycle will be dated November 10, 2011.

Tuesday, November 8, 2011

Regents' Run B off-cycle payroll files for the period ending October 29, 2011 must be received by the Department of Administration by 4:00 PM on November 8, 2011 in order to be processed on Wednesday, November 9, 2011.

Wednesday, November 9, 2011

The Run B off-cycle for the period ending October 29, 2011 will be processed November 9, 2011.  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 14, 2011.

Thursday, November 10, 2011

Payday for the payroll period ending October 29, 2011.

Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 12, 2011 submitted to the Department of Administration for processing by 5:00 PM on November 10, 2011.  (These files would normally be due Monday, November 14, 2011.)

Regents' Run C off-cycle payroll files for the period ending October 29, 2011 must be received by the Department of Administration by 4:00 PM on November 10, 2011.

Friday, November 11, 2011
Veterans' Day Holiday

Monday, November 14, 2011

The Run C off-cycle for the period ending October 29, 2011 will be processed November 14, 2011.  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 17, 2011. 

Paysheets for the on-cycle payroll for the period ending November 12, 2011 will be created on Monday, November 14, 2011.  All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 14, 2011 in order to be reflected on the paysheets for this period.  (Paysheets would normally be created on Tuesday, November 15, 2011.)

The first on-cycle preliminary pay calculation for the period ending November 12, 2011 will also occur November 14, 2011, rather than Tuesday, November 15, 2011; 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 14, 2011 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 12, 2011.

Tuesday, November 15, 2011

The second on-cycle preliminary pay calculation for the period ending November 12, 2011 will occur November 15, 2011.

Regents' on-cycle payroll files for the period ending November 12, 2011 are due to the Department of Administration by 4:00 PM on November 15, 2011.  (These files would normally be due Thursday, November 17, 2011.)

Wednesday, November 16, 2011

Final pay confirmation for the on-cycle payroll for the period ending November 12, 2011 will occur November 16, 2011.  (Final pay confirmation would normally occur Friday, November 18, 2011).  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 16, 2011 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 16, 2011 in order to be reflected in the final paycheck created for the employee.

Thursday, November 17, 2011

The Regents' on-cycle files for the period ending November 12, 2011 will be processed.

Regents' Run A off-cycle payroll files for the period ending November 12, 2011 must be received by the Department of Administration by 4:00 PM on November 17, 2011.  (These files would normally be due Friday, November 18, 2011.)

Friday, November 18, 2011

The Run A off-cycle for the period ending November 12, 2011 will be processed November 18, 2011. (This off-cycle would normally be scheduled for Monday, November 21, 2011.)  Paychecks for the Run A off-cycle will be dated November 23, 2011.

Monday, November 21, 2011

Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 12, 2011 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 23, 2011.)

Tuesday, November 22, 2011

Regents' Run B off-cycle payroll files for the period ending November 12, 2011 must be received by the Department of Administration by 4:00 PM on November 22, 2011.

Wednesday, November 23, 2011

Payday for the payroll period ending November 12, 2011. (It would normally be Friday, November 25, 2011)

The Run B off-cycle for the period ending November 12, 2011 will be processed November 23, 2011.  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 30, 2011. (Paychecks would normally be dated Monday, November 28, 2011.)

Regents' Run C off-cycle payroll files for the period ending November 12, 2011 must be received by the Department of Administration by 4:00 PM on November 23, 2011. (These files would normally be due Friday, November 25, 2011.)

Thursday, November 24, 2011
Thanksgiving Holiday

Friday, November 25, 2011
Thanksgiving Holiday

Monday, November 28, 2011

The Run C off-cycle for the period ending November 12, 2011 will be processed November 28, 2011.  Paychecks for the Run C off-cycle will be dated December 1, 2011.

Time and Leave/Time and Labor interface agencies must have time and leave files for the period ending November 26, 2011 submitted to the Department of Administration for processing by 5:00 PM on November 28, 2011. 

Tuesday, November 29, 2011

Paysheets for the on-cycle payroll for the period ending November 26, 2011 will be created on Tuesday, November 29, 2011.  All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 6:00 PM on November 29, 2011 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 26, 2011 will also occur November 29, 2011; 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 30, 2011

The second on-cycle preliminary pay calculation for the period ending November 26, 2011 will occur November 30, 2011.

Attached is a calendar for the month of November 2011, 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.ks.gov/sharp/infolist.htm.

 

MJ:NTR:ccl

Attachment

12-P-011 Terminated/Retired Employee Self Service Access Changes
DATE: October 27, 2011
SUBJECT: Terminated/Retired Employee Self Service Access Changes
EFFECTIVE DATE: Immediately
CONTACT:

Kathy Ogle

(785) 296-2290

kathy.ogle@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Request W-2 Reissue access in Employee Self Service has been extended for terminated and retired users.

Changes have been made in SHARP to allow retired and terminated Employee Self Service (ESS) users access to ESS for longer than 30 days for the purpose of requesting the reissue of W-2 duplicates.  Retired/terminated employees will continue to have full ESS access for 30 days after their termination effective date.  After 30 days, these users will be given a new limited security role which is restricted to two ESS links:  Update My Profile and Request W-2 Reissue.  These users may access these two links for 18 months from their termination effective date, at which time all access will be terminated.  The changes to ESS access for 18 months following retirement/termination is effective for any employee who was active in the SHARP payroll system as of September 16, 2011 and becomes inactive after that date.

Reissue requests for W-2 duplicates for the most recent 5 years will be available through Employee Self Service.  Currently reissue requests for 2006-2010 are available through ESS.  Reissue requests from 2002 up to the most recent five years (currently 2002-2005) must continue to be requested through Payroll Services.  W-2 duplicates are no longer available for calendar years prior to 2002.

Agencies should inform employees upon their retirement/termination that they have the ability to request a duplicate W-2 themselves for 18 months after their termination effective date.  ESS may be accessed through the Self Service Center website located at www.kansas.gov/employee by clicking the Employee Self Service hyperlink located on the right side of the page.  The Self Service Center is available anytime except during daily routine systems maintenance from 6:00 p.m. to 7:00 p.m. CT and Sundays from 8:00 a.m. to 12:00 noon CT.  A Desk Aid that explains the procedures for requesting a duplicate W-2 from ESS is attached and may be distributed to retiring/terminating employees.  It is also available on the Self Service Center website. If the past employee does not remember their password at any time during this 18 month period, a 'Forgot Your Password Tutorial' is also available on the Self Service Center website.  Other resources available on this website that may be of interest are 'Employee Self Service Center – Frequently Asked Questions' and 'Request W-2 Reissue FAQ's'.

The changes to SHARP ESS access have been completed and are effective immediately.  Because the Request W-2 Reissue section is available to employees of both SHARP agencies and Regent's institutions, all retiring/terminating employees should be informed of the extended ESS access to request duplicate W-2s.

MJ:NTR:kao

Attachment

12-P-012 Deferred Compensation and Tax Sheltered Annuity (Supersedes 09-P-010)
DATE: November 1, 2011
SUBJECT: Deferred Compensation and Tax Sheltered Annuity
Limits for Calendar Year 2012
EFFECTIVE DATE: January 1, 2012
CONTACT:

Joyce Dickerson

(785) 296-3979

Joyce.Dickerson@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

2012 Deferred Compensation and Tax Sheltered Annuity Limits

Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the annual Deferred Compensation and Tax Sheltered Annuity (TSA) limits will change effective January 1, 2012 as follows:

457(b) Deferred Compensation:

The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit is increased from the lesser of $16,500 or 100% of includible compensation (2011 calendar year limit) to the lesser of $17,000 or 100% of includible compensation.

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit is increased from $33,000 (2011 calendar year limit) to $34,000.  The special catch-up limit is twice the general deferral limit, and is only available to employees who are within three years of normal retirement age.

The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) remains the same with an annual contribution limit of $5,500 for 2012 making the total $22,500.

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

403(b) Tax Sheltered Annuities (TSA):

The limit on annual contributions to a TSA for 2012 is the lesser of $50,000 or 100% of compensation, increased from $49,000 for 2011.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $245,000 (for 2011) to $250,000 (for 2012).  The $250,000 applies to the mandatory retirement plans for the School of the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995).  For School of the Blind and School of the Deaf employees, the maximum contribution that can be made to the plan is $25,000 ($250,000 maximum annual compensation multiplied by 10%, 5% employer contribution and 5% employee contribution).  For Board of Regents employees (participants after 1995), the maximum contribution that can be made to the plan is $35,000 ($250,000 maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5% employee contribution).

For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996, participants are ‘grandfathered’ and use the annual compensation limit under Internal Revenue Code Section 401(a) (17).  The 401(a) (17) limit is increased from $360,000 (for 2011) to $375,000 (for 2012).  However, participants should note their maximum annual compensation limit will be $357,142.86, since the $357,142.86 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $50,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax Sheltered Annuities) is increased from $16,500 for 2011 to $17,000 for 2012.  The age 50 or older catch-up provision remains the same at $5,500 for 2012.  Therefore, an employee age 50 or over is eligible to increase their elective deferral and limit on an annual contribution by $5,500.   Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000.  Employees may use both the age 50 catch-up provision and 15-year rule concurrently.  IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($17,000 for 2012) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.

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

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

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

MJ:NTR:kao

12-P-013 Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 10, 2011 and December 24, 2011
DATE: November 17, 2011
SUBJECT: Changes to the Payroll Processing Schedule for the Payroll Periods Ending December 10, 2011 and December 24, 2011
EFFECTIVE DATE: Immediately
CONTACT:

Joyce Dickerson

(785) 296-3979

Joyce.Dickerson@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Changes to the payroll processing schedule for the payroll periods ending December 10, 2011 and December 24, 2011 due to December 26, 2011 being designated a state holiday

As a result of former Governor Parkinson declaring Monday, December 26, 2011 as a state holiday, the following changes have been made to the December payroll processing schedule for the payroll periods ending December 10, 2011 and December 24, 2011:

Monday, December 12, 2011

The Run 'C' off-cycle for the payroll period ending November 26, 2011 continues to be scheduled for December 12, 2011.  The check issue date for the Run 'C' off-cycle will remain Thursday, December 15, 2011.

Interface agencies must have time and leave files for the period ending December 10, 2011 submitted to the Department of Administration for processing by 5:00 p.m. on December 12, 2011.

Tuesday, December 13, 2011

Paysheets for the on-cycle payroll for the period ending December 10, 2011 will be created as usual on Tuesday, December 13, 2011.  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 13, 2011 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending December 10, 2011 will also occur December 13, 2011; 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 p.m. After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.

Wednesday, December 14, 2011

The second on-cycle preliminary pay calculation for the period ending December 10, 2011 will occur December 14, 2011.

Thursday, December 15, 2011

The third on-cycle preliminary pay calculation for the period ending December 10, 2011 will occur December 15, 2011.

Regents’ on-cycle payroll files for the period ending December 10, 2011 are due to the Department of Administration by 4:00 p.m. on December 15, 2011.

Friday, December 16, 2011

Final pay confirmation for the on-cycle payroll for the period ending December 10, 2011 will occur December 16, 2011.    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 p.m. on December 16, 2011 in order for a paycheck record to be created.    All deduction and tax data changes must be entered by 6:00 p.m. on December 16, 2011 in order to be reflected in the final paycheck created for the employee. The check issue date for the on-cycle will be Friday, December 23, 2011.

Regents’ Run ‘A’ off-cycle payroll files for the period ending December 10, 2011 are due to the Department of Administration by 4:00 p.m. on December 16, 2011.

Monday, December 19, 2011

The Run ‘A’ off-cycle for the period ending December 10, 2011 will be processed December 19, 2011.  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 Friday, December 23, 2011.

The Regents’ on-cycle files for the period ending December 10, 2011 will be processed.

Tuesday, December 20, 2011

Regents’ Run ‘B’ off-cycle payroll files for the period ending December 10, 2011 must be received by the Department of Administration by 4:00 p.m. on December 20, 2011 in order to be processed on Wednesday, December 21, 2011.

Wednesday, December 21, 2011

The Run 'B' off-cycle for the payroll period ending December 10, 2011 continues to be scheduled for December 21, 2011.  The check issue date for the Run 'B' off-cycle will be Tuesday, December 27, 2011. (It would normally be Monday, December 26, 2011.)                                          

Friday, December 23, 2011

Payday for the payroll period ending December 10, 2011.

Regents’ Run ‘C’ off-cycle payroll files for the period ending December 10, 2011 must be received by the Department of Administration by 4:00 p.m. on December 23, 2011 in order to be processed on Tuesday, December 27, 2011.

Interface agencies must have time and leave files for the period ending December 24, 2011 submitted to the Department of Administration for processing by 5:00 p.m. on December 23, 2011.

Monday, December 26, 2011

Christmas Holiday

Tuesday, December 27, 2011

The Run 'C' off-cycle for the payroll period ending December 10, 2011 is scheduled for December 27, 2011. (It would normally be on Monday, December 26, 2011.)  The check issue date for the Run 'C' off-cycle will be Friday, December 30, 2011. (It would normally be on Thursday, December 29, 2011.)

Paysheets for the on-cycle payroll for the period ending December 24, 2011 will be created as usual on Tuesday, December 27, 2011.  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, 2011 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending December 24, 2011 will also occur December 27, 2011.  For Time and Leave agencies, all employees’ time and leave data must be entered into SHARP and designated ‘OK to Process’ by 6:00 p.m. 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 p.m.  After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 p.m. in order for a paycheck record to be created.

Wednesday, December 28, 2011

The 2nd on-cycle preliminary pay calculation for the period ending December 24, 2011 will occur December 28, 2011.

Regents’ on-cycle payroll files for the period ending December 24, 2011 are due to the Department of Administration by 4:00 p.m. on December 28, 2011. (They would normally be due on Thursday, December 29, 2011.)

Thursday, December 29, 2011

The 3rd on-cycle preliminary pay calculation for the period ending December 24, 2011 will occur December 29, 2011.

Friday, December 30, 2011

Final pay confirmation for the on-cycle payroll for the period ending December 24, 2011 will occur December 30, 2011.    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 p.m. on December 30, 2011 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 p.m. on December 30, 2011 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 6, 2012.

Attached is a revised calendar for the month of December 2011 that highlights the payroll processing schedule changes due to the December 26th Christmas 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

MJ:NTR:ccl

12-P-014 December 2011 Payroll Processing
DATE: November 29, 2011
SUBJECT: December 2011 Payroll Processing
EFFECTIVE DATE: Immediately
CONTACT:

Joyce Dickerson

(785) 296-3979

Joyce.Dickerson@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

December 2011 Payroll Processing and Updated December Processing Calendar

As 2011 calendar year-end approaches, the Office of General Services is making preparations for the issuance of calendar year 2011 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2011 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2012 balances; a corrected W-2 (Form W-2C) for 2011 will not be issued for the employee involved.

FINAL 2011 PAYCHECK

The final on-cycle paychecks for calendar year 2011 will be issued December 23, 2011.  Payroll transactions for the December 23, 2011 on-cycle paychecks will be posted to SMART on Wednesday night, December 21, 2011.  The final off-cycle paychecks for calendar year 2011 will be issued on December 30, 2011 (generated from the off-cycle processed on December 27, 2011).

PAYCHECK REVERSALS

Any 2011 paychecks that are undeliverable should be reversed as soon as possible.  SHARP agencies have until 6:00 p.m. on December 27, 2011 to enter paycheck reversals.  Any reversals entered after the 6:00 p.m. deadline on December 27, 2011 will update calendar year 2012 balances and will not be reflected in the employee’s 2011 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 27, 2011 to enter paycheck adjustment requests for any 2011 paychecks.  Adjustments processed in the December 27, 2011 off-cycle payroll will be reflected on the employee’s 2011 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 2011 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of General Services, Payroll Section by 5:00 p.m. on Wednesday, December 14, 2011.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 14, 2011 for inclusion in the December 27, 2011 off-cycle.  However, if a large volume of DA-180 forms is received on the December 14, 2011 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2011 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, 2011 which are adjusting paychecks issued prior to January 1, 2012 will not result in a W-2C; the adjustment will update the employee’s 2012 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, 2011 will update the employee’s 2012 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 10, 2011, paid December 23, 2011 are due to the Department of Administration by 4:00 p.m. on December 15, 2011.

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2011 Paycheck Reversals

Regent Institutions must submit all transmittals for 2011 paycheck reversals by 4:00 p.m. on Friday, December 23, 2011 in order to update the employee’s 2011 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 2012 payroll balances regardless of the paycheck issue date of the paycheck being reversed.  Reversals for paychecks issued prior to January 1, 2012 submitted after 4:00 p.m. on December 23, 2011 should default the pay adjust check date to January 1, 2012.

2011 Adjustments and Supplementals

In order to update employee balances for 2011, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 23, 2011.  The Run C off-cycle for the pay period ending December 10, 2011 generated on the night of Tuesday, December 27, 2011 will have a check issue date of December 30, 2011; all activity for this off-cycle will be reflected in the employees’ 2011 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 2011 date.

2012 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2012, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 23, 2011, will be considered to be 2012 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2012 business, the employee’s 2012 balances will be updated.  These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2012 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2012, agencies should default the pay adjust check date to January 1, 2012).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2012, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2012 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 2012 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, 2011 deadline for the December 27, 2011 Run C’s off-cycle payroll will not be processed until the April 11, 2012 off-cycle payroll.  Since the files will be held, please do not begin submitting those files for processing until the week of April 9, 2012.  The deadline for submitting payroll interface files for the April 11, 2012 off-cycle is 4:00 p.m. on Tuesday, April 10, 2012.

GENERAL REMINDERS

United Way and Community Health Charities

The deduction END date on the general deduction page for 2011 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 11, 2011 and December 24, 2011 in order for the last 2011 deduction to be taken on the paycheck issued December 23, 2011. 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 2012, agencies can enter a new row effective-dated between December 11, 2011 and December 24, 2011 in order for the first deduction for United Way or Community Health Charities for 2012 to be taken on the January 6, 2012 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 9, 2012 should be entered.  Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2012.

A batch process will run the night of December 23, 2011 to establish the fee portion (deduction code UTFXXX) of the 2012 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 2012.  This process will reduce the 2012 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 2012 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 Tuesday, December 27, 2011 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, 2011 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, 2011 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 2012.  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 2012 W-4s.  Employees should submit new paper W-4s by December 14, 2011 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 19, 2011 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 2012.

The KPAY320 will be processed the evening of December 19, 2011.  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, 2012 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2012 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.

For any 2012 paper W-4s (for employees claiming exemption from withholding) received between December 19, 2011 and January 1, 2012, agency personnel will need to enter the data with a January 2, 2012 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2012 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 2012 Form W-4 will be posted to the Office of General Services 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.  Agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2012. 

The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 19, 2011 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 2012.  The new tax data row will be dated January 1, 2012.  The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2012 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 2012 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, 2011.  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 16, 2011, and prior to December 27, 2011, must be sent to the Office of General Services, Payroll Section for processing in order to impact the 2011 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 2011 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 10, 2011 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, 2011 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until December 28, 2011 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, 2011.  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, 2011 and January 3, 2012.  W-2 forms will be mailed on or before January 31, 2012.  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 2011 that highlights the key payroll processing activity.  Please note that the original 12/23/2011 due date for Time and Leave and Time and Labor files for all interface agencies as previously published in Informational Circular 12-P-013 has also been extended to Monday, December 26, 2011 by 5:00 p.m. for night batch processing and Tuesday, December 27, 2011 by 12:00 p.m. for 12:30 p.m. day batch processing.  These extended due dates/times have also been added to the attached calendar.  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: Calendar pdf

MJ:NTR:kao    

12-P-015 Change in KOSE Organization Dues Deduction Amounts (Supersedes: 11-p-027)
DATE: December 6, 2011
SUBJECT: Change in KOSE Organization Dues Deduction Amounts
EFFECTIVE DATE: Payroll Period Ending January 7, 2012
CONTACT:

Nancy Ruoff

(785) 296-2853

Nancy.Ruoff @da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

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 December 25, 2011 and ending January 7, 2012, paid January 20, 2012 as follows:

Deduction Code

Hourly Rate of Pay

Bi-Weekly Dues Deduction

ORG502 $ 13.99 or Less

$15.29

ORG503 $ 14.00 – 14.99

$15.88

ORG504 $ 15.00 – 15.99

$16.98

ORG505 $ 16.00 – 16.99

$18.07

ORG506 $ 17.00 – 17.99

$19.17

ORG507 $ 18.00or Greater

$20.26

 

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 Office of General Services, 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 January 20, 2012.

MJ:NTR:ccl

12-P-016 2012 Percentage Method Tables for Federal Tax Withholding (Supersedes: 11-p-019)
DATE: December 6, 2011
SUBJECT: 2012 Percentage Method Tables for Federal Tax Withholding
EFFECTIVE DATE: January 1, 2012
CONTACT:

Nancy Ruoff

(785) 296-2853

Nancy.Ruoff @da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2012.

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2012.  The attached tables are to be used in computing federal tax withholding for wages paid on or after January 1, 2012.  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 $3,800 for 2012.   

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, 2011 to all SHARP employees who were exempt from federal withholding in 2011.  The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2012.  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 2012 W-4s.  The IRS has indicated that the 2012 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 19, 2011 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 2012. 

    

The KPAY320 will process during the batch cycle generated on the evening of December 19, 2011.  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, 2012 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.  Therefore, agency payroll/human resource staff should enter no W-5 information into the system for calendar year 2012.

For any Form W-4s for 2012 received between December 19, 2011 and January 1, 2012, agency personnel will need to enter the data with a January 2, 2012 effective date.  The data will need to be entered into SHARP by 6:00 p.m. on Thursday, December 29, 2011 in order to be reflected in the on-cycle paycheck dated January 6, 2012.  Agency Workflow Administrators will also need to change the effective date to January 2, 2012 for any electronic FormsW-4s for 2012 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

2011 must file a new 8233 form for calendar year 2012 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 19, 2011 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 2012.  The new tax data row will be dated January 1, 2012.  Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2012 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 19, 2011. The report will be available in the agency directory on the MVS on Tuesday, December 20, 2011.  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. 

MJ:NTR:ewb

Attachment:  Tables for Percentage Method of Withholding

12-P-017 Employee Taxability of State-Owned or Leased Vehicles (Supersedes: 11-p-033)
DATE: December 12, 2011
SUBJECT: Employee Taxability of State-Owned or Leased Vehicles
EFFECTIVE DATE: January 1, 2012
CONTACT:

Kathy Ogle

(785) 296-2290

Kathy.Ogle@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2012

The Internal Revenue Service (IRS) has announced the standard mileage rate will remain unchanged at 55.5 cents beginning January 1, 2012 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 2012 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,900 for a car (up from $15,300 in 2011), and $16,700 for a passenger truck or van (up from $16,200 in 2011).  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).

 

MJ:NTR:kao

12-P-018 Change in Social Security Base Rate (Supersedes: 11-p-020)
DATE: December 13, 2011
SUBJECT: Change in Social Security Base Rate
EFFECTIVE DATE: January 1, 2012
CONTACT:

Sunni Zentner

(785) 296-7058

Sunni.Zentner.@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Social Security Wage Base Increase to $110,100 effective January 1, 2012

The Social Security wage base for OASDI will be $110,100 for calendar year 2012.  This is a $3,300 increase from the wage base of the past three years of $106,800.  If no changes are passed by Congress, the OASDI tax rate for 2012 will be 6.2% for both employees and employers.  (Note that the 2011 OASDI tax rate was 4.2% for employees and 6.2% for employers under the Tax Relief Act of 2010, and that rate is scheduled to be 6.2% for both employees and employers in 2012.  However, bills currently being considered in Congress may change this.)  If no changes are passed by Congress, the maximum OASDI employee contribution for 2012 will be $6,826.20.   There continues to be no limit on wages subject to the Medicare tax in 2012.  Medicare tax rates for employers and employees remain at 1.45%.  Office of General Services staff are closely tracking legislation pending in Congress and additional informational circulars will be issued as necessary to communicate any changes for 2012 resulting from Federal Legislation.

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 $6,826.20 for OASDI and no maximum for Medicare.  The employer and employee rates continue to be the same.

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

The Office of General Services, 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.

 

MJ:NTR:kao

12-P-019 Extension of OASDI 4.2% Tax Rate for Employees (Amends 12-p-018)
DATE: December 28, 2011
SUBJECT: Extension of OASDI 4.2% Tax Rate for Employees
EFFECTIVE DATE: January 1, 2012
CONTACT:

Sunni Zentner

(785) 296-7058

Sunni.Zentner.@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Extension of OASDI 4.2% Tax Rate for Employees

Congress has granted a two-month extension to the Tax Relief Act of 2010 by passing the Temporary Payroll Tax Cut Continuation Act of 2011. The OASDI tax rate for the first two months of 2012 will be 4.2% for employees and 6.2% for employers. If no changes are passed by Congress, the OASDI tax rate for employees will increase to 6.2% beginning March 1, 2012. However, Congress continues negotiations that would extend the payroll tax cut for the remainder of 2012. Medicare tax rates for employers and employees remain at 1.45%. Office of General Services staff are closely tracking legislation pending in Congress and additional informational circulars will be issued as necessary to communicate any changes for 2012 resulting from Federal Legislation.

The Office of General Services, 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.

MJ:NTR:kao

12-P-020 W-2 Wage and Tax Statements for Calendar Year 2011 (Supersedes 11-p-022)
DATE: January 3, 2012
SUBJECT: W-2 Wage and Tax Statements for Calendar Year 2011
EFFECTIVE DATE: Immediately
CONTACT:

Sunni Zentner

(785) 296-7058

Sunni.Zentner.@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Information Pertaining to Employee 2011 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2011 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, 2011. 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, 2012.

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 2011 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 2011 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 2011.  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 2011 W-2's, which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service, should be retained by the agency until April 16, 2012.  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 Office of General Services, Payroll Services. 

In cases where the 2011 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 2006 through 2011, agencies are expected to recommend that employees use the 'W-2 Reissue Request' functionality found in Employee Self Service at https://sharp.ks.gov/psp/ESS/.  A Desk Aid that explains the procedures for requesting a duplicate W-2 from ESS is attached and may be distributed to employees to assist them in this process.  Agencies are reminded that employees who retired or terminated from State service on or after September 16, 2011, have access to request duplicate W-2's for 18 months following their date of separation, per Informational Circular 12-P-011 and should be directed to utilize Employee Self Service to request a duplicate W-2.  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 (2011, 2010, 2009, 2008, 2007, or 2006) the reissued W-2 is needed.  Duplicate W-2's for 2006- 2010 are currently available, and duplicate W-2's for 2011 will be available starting on Wednesday, January 18, 2012.  Please note that duplicate W-2's for the year 2006 will no longer be available after mid-April 2012.

The Office of General Services, 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 afternoon 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 2011 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 2011 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, 2011 and off-cycle checks dated December 27, 2011 and December 30, 2011 are included in the 2011 W-2 amounts.

Attachments:
Attachment A (.xls)

Attachment B (.xls)

Desk Aid (.doc)

 

MJ:NTR:kao

12-P-021 2012 W-2 Production Report Schedule (Supersedes 11-p-023)
DATE: January 3, 2012
SUBJECT: 2012 W-2 Production Report Schedule
EFFECTIVE DATE: Immediately
CONTACT:

Sunni Zentner

(785) 296-7058

Sunni.Zentner.@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

2012 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 2012 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 2012 W-2 production reports are scheduled to be generated:

Friday, February 17, 2012
Friday, March 16, 2012
Friday, April 27, 2012
Friday, May 11, 2012
Friday, June 8, 2012
Friday, July 6, 2012
Friday, August 3, 2012
Friday, August 31, 2012
Friday, September 28, 2012
Friday, October 26, 2012
Friday, November 9, 2012
Wednesday, November 21, 2012
Wednesday, December 5, 2012
Monday, December 10, 2012
Monday, December 17, 2012
Friday, December 21, 2012
Thursday, December 27, 2012 - 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 the Office of General Services.  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 2012 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.

MJ:NTR:kao

12-P-022 New Organization Dues Deduction Codes ORG902 and ORF902 and Dues Rate Increases for ORG900 and ORG901 (Supersedes 02-p-011)
DATE: March 1, 2012
SUBJECT: New Organization Dues Deduction Codes ORG902 and ORF902 and Dues Rate Increases for ORG900 and ORG901
EFFECTIVE DATE: Payroll Periods Ending February 18, 2012 and March 3, 2012
CONTACT:

Sunni Zentner

Joyce Dickerson

(785) 296-7058

(785) 296-3979

Sunni.Zentner.@da.ks.gov

Joyce.Dickerson@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Establish New Organization Dues Deduction Codes ORG902 and ORF902 for Fort Hays State University-American Association of University Professors (FHSU-AAUP) and Dues Rate Increases for ORG900 and ORG901

 

Please be advised of the creation of a third category for organization dues for “associate members” of the Fort Hays State University-American Association of University Professors. Therefore, a new organization dues deduction code (ORG902) and a corresponding fee deduction code (ORF902) will be added in SHARP, effective with the payroll period beginning February 19, 2012 and ending March 3, 2012, paid March 16, 2012 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 $11.94 for ORG902 and $.06 for ORF902 for total membership dues of $12.00 per bi-weekly payroll period. Also, existing organization dues deduction codes ORG900 and ORG901 are increasing effective with the payroll period beginning February 5, 2012 and ending February 18, 2012, paid March 2, 2012. The bi-weekly deduction amount will be $8.94 for ORG900 and $.06 for ORF900 for total membership dues of $9.00 per bi-weekly payroll period. The bi-weekly deduction amount will be $13.94 for ORG901 and $.06 for ORF901 for total membership dues of $14.00 per bi-weekly payroll period.

Please note that the new contact at FHSU-AAUP is Dr. Win Jordan, Fort Hays State University, 600 Park Street, Hays, Kansas 67601.

The Office of General Services, Payroll Systems Team is responsible for adding the new deduction codes and making the necessary updates in the SHARP system. Regent’s institutions should ensure that the addition of the listed deduction codes and necessary updates are reflected in their individual systems effective February 18, 2012.

 

MJ:NTR:ewb

12-P-023 Employer KPERS Death and Disability Insurance Contributions Moratorium (Supersedes 11-p-031)
DATE: March 13, 2012
SUBJECT: Employer KPERS Death and Disability Insurance Contributions Moratorium
EFFECTIVE DATE: April 1, 2012
CONTACT:

Cindy Lo

(785) 296-2259

 

Cindy.Lo.@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Suspension of Employer Contributions for KPERS Death and Disability Insurance for the period of April 1, 2012 to June 30, 2012

 


As a result of Senate Sub for HB 2014, passed in the 2011 legislative session, a moratorium that suspends employer contributions for KPERS Death and Disability Insurance is being implemented from April 1, 2012 to June 30, 2012.  The Office of General Services 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 13, 2012.  The KPERS Death and Disability Insurance moratorium will start effective with the pay period beginning March 18, 2012 and ending March 31, 2012, paid April 13, 2012.  Please note that 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, 2012 for pay period end dates prior to March 31, 2012 will continue to have the contributions collected and remitted.  Refer to Informational Circular 11-P-025 at the following link FY 2011to review the dates the previous moratorium was in effect for 2011.  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 18, 2012, 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 require the "employee" to remit the required contribution while on leave without pay.

The Office of General Services, 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.

MJ:NTR:ccl

12-P-024 Continuation of the Extension of OASDI 4.2% Tax Rate for Employees (Supersedes 12-p-019)
DATE: March 21, 2012
SUBJECT: Continuation of the Extension of OASDI 4.2% Tax Rate for Employees
EFFECTIVE DATE: March 1, 2012
CONTACT:

Sunni Zentner

(785) 296-7058

 

Sunni.Zentner.@da.ks.gov

 

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Continuation of the Extension of OASDI 4.2% Tax Rate for Employees

 

President Obama has signed the Middle Class Tax Relief and Job Creation Act of 2012 which extends the employee OASDI tax rate reduction for the remaining ten months of 2012.  The OASDI tax rate will be 4.2% for employees and 6.2% for employers for the remainder of 2012.  If no further changes are passed by Congress, the OASDI tax rate for employees will increase to 6.2% beginning January 1, 2013.  Medicare tax rates for employers and employees remain at 1.45%. 

The Office of General Services, 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.

MJ:NTR:ewb

12-P-025 New Organization Dues Deduction Codes ORG165 and ORF165 (Supersedes 10-p-006)
DATE: April 24, 2012
SUBJECT: New Organization Dues Deduction Codes ORG165 and ORF165
EFFECTIVE DATE: Payroll Period Ending May12, 2012
CONTACT:

Sunni Zentner

Joyce Dickerson

(785) 296-7058

(785) 296-3979

 

Sunni.Zentner.@da.ks.gov

Joyce.Dickerson.@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Establish New Organization Dues Deduction Codes ORG165 and ORF165 for Fraternal Order of Police KS Lodge #64

 

Please be advised of the creation of a second category for organization dues for an optional program offered to FOP members only through the FOP Grand Lodge of the Fraternal Order of Police KS Lodge #64. Therefore, a new organization dues deduction code (ORG165) and a corresponding fee deduction code (ORF165) will be added in SHARP, effective with the payroll period beginning April 29, 2012 and ending May 12, 2012, paid May 25, 2012 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 $20.94 for ORG165 and $.06 for ORF165 for total membership dues of $21.00 per bi-weekly payroll period.

The Office of General Services, Payroll Systems Team is responsible for making this update in the SHARP system. Regent’s institutions are responsible for ensuring this update is reflected in their individual systems and is effective for paychecks issued on or after May 25, 2012. The Office of General Services, Reconciliation and Remittance team will be responsible for the remittance of the deductions to FOP Lodge #64.

 

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12-P-026 KPAYGL5C File Available For All Agencies
DATE: May 3, 2012
SUBJECT: KPAYGL5C File Available For All Agencies
EFFECTIVE DATE: May17, 2012
CONTACT:

Sunni Zentner

Lisa Kraus

(785) 296-7058

(785) 296-3699

 

Sunni.Zentner@da.ks.gov

Lisa.Kraus@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

KPAYGL5C File Available For All Agencies in a CSV Version Format-File Layout Attached

 

The Office of General Services, Payroll Services, is pleased to announce that the KPAYGL5C file will be available effective May 17, 2012 for all agencies to download from their MVS directory using CoreFTP.  Step-by-step instructions regarding the download and use of the KPAYGL5C file are attached to this circular and can also be found at the Office of General Services, Payroll Procedures and Forms webpage located at:

Document Center

As a reminder, the KPAYGL5C is a file that contains information regarding the accounting transactions created in SHARP that corresponds to every paycheck funded by the receiving agency.  Previously, the KPAYGL5C was available to selected agencies using a flat file format.  Effective May 17, 2012, the KPAYGL5C will be available to all agencies using a CSV (comma delimited) format.  The CSV version file layout is attached to this circular.  Agencies who were receiving the KPAYGL5C prior to May 17, 2012 will continue to receive it in their current format.  Any agency currently receiving the flat file format can switch solely to the CSV version upon request to the OGS contacts listed above.

The CSV version of the KPAYGL5C file is easy to open and use in Excel or a similar spreadsheet application.  Column dividers are inserted automatically and the top row of the file contains column labels for each data element.  The file contains a subset of the data fields from the payroll accounting table and includes expenditure accounting transactions only.  The file lists the detail rows for the payroll journals that are summarized by matching chartfields and sent to SMART.  The Journal IDs that appear on the detail rows are the same Journal IDs that are processed in SMART for your agency payroll.  If, due to journal edit errors or budget errors, funding has to be changed in SMART after the original payroll journal has been generated, these changes are not reflected on the KPAYGL5C.

The KPAYGL5C file is generated twice per pay period.  The first file includes only on-cycle paycheck information and is usually generated the Saturday following the end of the pay period.  The first file does not include Journal ID information since the file is created prior to sending the data to SMART.  Several agencies use this first file to get total expenditures of federal funds in order to request federal draw-downs.  The second file for the pay period is usually generated the Wednesday evening following pay day.  This file is cumulative and contains the on-cycle as well as off-cycles A, B and C data including the Journal ID information.  Please note that holidays could slightly alter the KPAYGL5C processing schedule.

Agencies should accumulate all KPAYGL5C files for the fiscal year in a secure location to assist with fiscal year-to-date budget and reporting information.  As a reminder, the KPAYGL5C file should be downloaded within 30 days of the date the file is generated.  The file will be deleted from CoreFTP after 30 days.  The data on the KPAYGL5C can also be filtered by various data fields, such as Project ID to assist with special reporting needs associated with a project or grant. The KPAYGL5C provides the same data as the KPAYWAGE report in order to obtain wage and fringe information by position number for a particular program code or funding source.  The KPAYWAGE report will be discontinued in February, 2013 with the implementation of PeopleSoft 9.1.  Agencies are strongly encouraged to begin using the KPAYGL5C file during this time of transition, in order to obtain the wage and fringe information required for reporting purposes.

Agencies can obtain more information on downloading the KPAYGL5C file and some suggested tips on its use during a presentation at the upcoming ASTRA meeting held in Topeka on May 17, 2012.  Any questions regarding the KPAYGL5C file should be directed to the OGS contacts listed at the top of this informational circular.

Attachments

 KPAYGL5C CSV Version File Layout xls

 KPAYGL5C Download to Excel Procedures docx

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12-P-027 Fiscal Year End Payroll Processing for FY 2012 (Supersedes 11-p-028)

DATE:

May 15, 2012

SUBJECT:

Fiscal Year End Payroll Processing for FY 2012

EFFECTIVE DATE:

Immediately

CONTACT:

Joyce Dickerson

(785) 296-3979

 

Joyce.Dickerson@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

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 2013 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 9, 2012 will use fiscal year 2012 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 9, 2012 will use fiscal year 2013 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 25, 2012, paid June 28, 2012) for the pay period ending June 9, 2012 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2012 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 17, 2012 and should be completed by Monday morning, June 18, 2012.  In that process, a new row will be added to the Department Budget tables with an effective date of June 10, 2012 (beginning date of the first on-cycle payroll charged to FY2013).  The Budget End Date will be June 9, 2013.  Agencies should not enter any rows with an effective date greater than or equal to June 10, 2012 until after the FY2013 insert has been completed. When adding new rows for FY2013, agencies should verify that June 9, 2013 was used as the Budget End Date for FY2013.

 

GHI Adjustments

As of July 1, 2012, NO GHI adjustments can be processed for any pay period prior to the December 25, 2010 pay period end date, which was the beginning of contract year 2011.  Contact Brenda Vaughn (785) 296-3147 bvaughn@kdheks.gov or Lea Weishaar (785) 296-0611LWeishaar@kdheks.gov at Kansas Dept of Health & Environment, Division of Health Care Finance, State Employee Health Plan about any event maintenance changes that may affect claims processing for contract year 2010 or prior.

 

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:

 

  • 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.

 

  • 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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12-P-028 Parking Fee Increase - Curtis Building Garage – FY2013 (Supersedes 11-p-029)
DATE: June 1, 2012
SUBJECT: Parking Fee Increase - Curtis Building Garage – FY2013
EFFECTIVE DATE: Payroll Period Beginning June 10, 2012 and Ending June 23, 2012, Paid July 6, 2012
CONTACT:

Cindy Lo

(785) 296-2259

 

Cindy.Lo@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Parking Fee Increase - Curtis Building Garage – FY2013

 

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 2013.  To facilitate this change, the following payroll deduction codes and associated administrative fee code will increase effective with the payroll period beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012:

Deduction Code New bi-weekly rate for pped 6/23/12
PKT08B 

25.82

PPKT08 25.82
PKAD05 (admin fee) 1.98 ($25.82 * .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 New bi-weekly rate for pped 6/23/12
PKT10B 12.91
PPKT10 

12.91

PKAD07 (admin fee) 0.99 ($12.91 * .0765)

 

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

Deduction Code Bi-weekly rate for pped 6/23/12 
PKT09B 9.23
PPKT09 9.23
PKAD06 (admin fee) 0.71 ($9.23 * .0765)

 

The Office of General Services, 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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12-P-029 Clarification of KPERS Policy Regarding Worker’s Comp/GTL
DATE: June 4, 2012
SUBJECT: Clarification of KPERS Policy Regarding Worker’s Comp/GTL
EFFECTIVE DATE: Immediately
CONTACT:

Joyce Dickerson

(785) 296-3979

 

Joyce.Dickerson@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Clarification of KPERS Policy Regarding Worker’s Comp/GTL and KPERS Eligibility

 

In the fall of 2010, KPERS issued a policy requiring a member on workers compensation to receive at least 50% of full pay to be KPERS eligible.  The policy was handed out at the Designated Agent (DA) workshops in October, 2010 and is included in the 2011 Fall DA workshop (page 65) of the KPERS website located at the following link:  http://www.kpers.org/daworkshop_statepresentation.pdf.

Per clarification from KPERS, any individual who does not receive at least 50% of their regular  bi-weekly rate of pay from a combination of regular, vacation, and sick leave and who has been off the payroll for ten days or more is no longer considered as being in a KPERS eligible position.  For employees in this situation, agencies should:

    • Stop KPERS deductions for the employee with an effective date of the first day of the first pay period after the employee has ceased to receive 50% of their regular bi-weekly rate
    • Stop GTL deductions for the employee with the same effective date as the KPERS deduction
    • Complete the KPERS-60 Employer’s Report of Disability located at http://www.kpers.org/forms/k60.pdf in order to ensure continued group-term life insurance coverage for the employee while they are on short-term disability

Please ensure all steps above are completed as agencies have been inconsistent in stopping the GTL deductions which can have an impact on an employee’s calculated amount for taxable group life insurance.

Questions regarding KPERS eligibility may be directed to KPERS at 1-888-275-5737 or in Topeka at 785-296-6166.

 

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12-P-030 Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium (Supersedes 12-P-023)
DATE: June 15, 2012
SUBJECT: Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium
EFFECTIVE DATE: July 1, 2012
CONTACT:

Earl Brynds

(785) 296-5376

 

Earl.Brynds@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012


Senate Sub for HB 2014, passed in the 2011 legislative session, suspended employer contributions for KPERS Death and Disability Insurance beginning April 1, 2012 until June 30, 2012.  The 2012 moratorium will expire on July 1, 2012.  As a result, the Office of General Services, Payroll Services will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012.

House Sub for SB 294, passed in the 2012 legislative session, calls for an additional moratorium between April 1, 2013 and June 30, 2013.  Another informational circular will be issued closer to the implementation date of the 2013 moratorium on April 1, 2013 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, 2012 for pay periods ending on and between April 3, 2010 and June 12, 2010, on and between March 19, 2011 and June 11, 2011 and on and between March 31, 2012 and June 9, 2012 will continue to NOT have the contributions collected and remitted.

The Office of General Services, 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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12-P-031 Fiscal Year 2013 Payroll Contribution Rates (Supersedes 11-P-030)
DATE: June 21, 2012
SUBJECT: Fiscal Year 2013 Payroll Contribution Rates
EFFECTIVE DATE: Pay Period Beginning June 10, 2012; Ending June 23, 2012;
Paid July 6, 2012
CONTACT:

Kathy Ogle

(785) 296-2290

 

Kathy.Ogle@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

SUMMARY:

Fiscal Year 2013-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 2013.  The fiscal year 2013 rates will become effective with the on-cycle payroll period beginning June 10, 2012, ending June 23, 2012 and paid July 6, 2012.  The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2012.

For Fiscal Year 2013, 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, 2012 to June 30, 2012, the Office of General Services will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions effective with the pay period beginning June 10, 2012 and ending June 23, 2012, paid July 6, 2012.  However, House Sub. for SB 294 calls for an additional moratorium between April 1, 2013 and June 30, 2013.  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; between April 1, 2011 and June 30, 2011; and between April 1, 2012 and June 30, 2012.

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 2013, employer rates are 9.55% Actuarial Employer Rate, 4.00% Statutory Employer Rate, for a Total Combined Rate of 13.55%.  Retirees enrolled in the ‘PR’ benefit plan are not subject to KPERS death and disability insurance.

The Office of General Services, 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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Attachment A xls

Attachment B xls

Attachment C xls

12-P-032 Housing, Food Service and Other Employee Maintenance (Supersedes 11-P-032)
DATE: June 22, 2012
SUBJECT: Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE: July 1, 2012
CONTACT:

Jennifer Holthaus

Joyce Dickerson

(785) 368-6313

(785) 296-3979

Jennifer.Holthaus@da.ks.gov

Joyce.Dickerson@da.ks.gov

APPROVAL:

Nancy Ruoff

(Original Signature on File)

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 Office of General Services.  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 2013 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.  FY2013 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday, June 25, 2012 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 23, 2012 (paychecks dated July 6, 2012).   

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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