Kansas Department of Administration

FY 2017

17-P-001 Housing, Food Service, and Other Employee Maintenance (July 1, 2016)

Informational Circular No.: 17-P-001

Supersedes Informational Circular No: 15-P-034

Effective Date: July 1, 2016

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@ks.gov

Approval:    Nancy Ruoff
(Original Signature on File)

 

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 the Chief Financial Officer.  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 2017 will require entry into the SHARP v9.1 system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income.  FY2017 rate changes for maintenance should be entered into SHARP by 6:00 pm on Tuesday, July 5, 2016 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending July 2, 2016 (paychecks dated July 15, 2016). 

Please note that paychecks for payroll period ending June 18, 2016 (paychecks dated July 1, 2016) should have had new FY2017 rates included as well. Agencies will need to review payroll to ensure that no adjustments are needed. 

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

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Printable version of 17-P-001

17-P-002 Change in Organization Dues Deduction Amounts (August 3, 2016)

Informational Circular No.: 17-p-002

Supersedes Informational Circular No: 16-p-001

Effective Date: Payroll Period Ending September 24, 2016

Contact Name: Amanda Entress

Ph: (785) 296-3887

Email: amanda.entress@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 11, 2016 and ending September 24, 2016, paid October 7, 2016 as follows:

 

Deduction Code

Hourly Rate of Pay

Bi-Weekly Salary

Dues Deduction

ORG001

$ 13.99 or Less

$ 1,119.20 or Less

$12.89

ORG002

$ 14.00 – 14.99

$ 1,119.21 – 1,199.20

$13.68

ORG003

$ 15.00 – 15.99

$ 1,199.21 – 1,279.20

$14.71

ORG004

$ 16.00 – 16.99

$ 1,279.21 – 1,359.20

$18.51

ORG005

$ 17.00 – 17.99

$ 1,359.21 – 1,439.20

$19.61

ORG006

$ 18.00 or Greater

$ 1,439.21 or Greater

$20.70

 

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 the Chief Financial Officer, 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 made in their respective systems effective with the payroll period noted above.

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Printable version of 17-P-002

17-P-003 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (August 4, 2016)

Informational Circular No.: 17-P-003

Supersedes Informational Circular No: 16-P-002

Effective Date: Payroll Period Ending August 27, 2016

Contact Name: Amanda Entress

Ph: (785) 296-3887

Email: amanda.entress@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 $30.81 to $30.91 per biweekly payroll period.  The new rate will become effective with the payroll period beginning August 14, 2016 and ending August 27, 2016, paid September 9, 2016.

The amounts listed above include the deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code) added together. The new rate for deduction code ORG030 will increase from $30.75 to $30.85 and the fee (ORF030) will remain at $.06 (for a total deduction of $30.91 per biweekly payroll period).

The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system.  Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

DH:NTR:ckw

Printable version of 17-P-003

17-P-004 New Benefit Plan Type/Benefit Plans/Deduction Code for Deferred Compensation-Roth Option (September 7, 2016)

Informational Circular No.: 17-P-004

Effective Date: January 1, 2017

Contact Name: Joyce Dickerson

Ph: (785) 296-3979

Email: joyce.dickerson@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: New Roth Plan Type/Benefit Plans/Post-Tax Deduction Code for Deferred Compensation

 

In recent years, Congress extended to 457 plans the option of allowing contributions to a Roth 457 account, using post-tax contributions.  As a result of 2016 legislation, KPERS will expand the KPERS 457 plan so that participants can choose between pre-tax and post-tax contributions effective January 1, 2017. 

To implement this new deferred compensation option, a new Roth post-tax deduction code, benefit plan type and benefit plans will be added to SHaRP.   The first Roth deferred compensation payroll deductions will be processed in SHaRP effective for the payroll period beginning December 18, 2016, ending December 31, 2016, paid January 13, 2017. 

The new Roth Deferred Compensation benefit plan type, benefit plans and after-tax deduction code are:  

PLAN

TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

BENEFIT PLAN

BENEFIT PLAN DESCRIPTION

4R

457DRA

Deferred Compensation-Roth

DefCompRth

457DRA

Deferred Compensation-Roth

4R

457DRA

Deferred Compensation-Roth

DefCompRth

457DRC

Deferred Compensation-Roth

4R

457DRA

Deferred Compensation-Roth

DefCompRth

457DRR

Deferred Compensation-Roth

 

The three new Benefit Plans are established for the following employee deferred comp categories:

Benefit Plan   Employee Category
457DRA         Roth-regular contribution (all participants)
457DRC         Roth- catch-up provision for participants who are 50 years of age or                              older
457DRR         Roth- special catch-up for participants who are within three years of                            normal retirement age

The contribution maximums for the benefit plans will include both the pre- tax and post-tax deferred compensation plans added together.  Currently, the maximum contribution amounts are listed below. 

Benefit Plans 457DEF and 457DRA - $18,000
Benefit Plans 457DEC and 457DRC - $24,000
Benefit Plans 457DER and 457DRR - $36,000

Note:  New maximums for 2017 have not been published as of this publication.

Refer to payroll informational circular 15-P-012 for additional information on Deferred Compensation and Tax Sheltered Annuity Limits.

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system.  Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.  In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction/benefit plans by November 1, 2016.

 

DH:NTR:ewb

Printable version of 17-P-004

17-P-005 New Benefit Plan Type/Benefit Plans/Deduction Codes for Voluntary Supplemental Insurance (September 28, 2016)

Informational Circular No.: 17-P-005

Effective Date: January 1, 2017

Contact Name: Jude Overton

Ph: (785) 296-2290

Email: jude.overton@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: New Benefit Plan Type/Benefit Plans/Deduction Codes for Voluntary Supplemental Insurance

 

The Employee Health Care Commission recently passed a motion authorizing the offering of voluntary supplemental employee insurance products to State of Kansas employees via payroll deduction.  These new products will be offered by Colonial Life during open enrollment in October, 2016 for coverage beginning January 1, 2017.

To implement this new Voluntary Supplemental Insurance payroll deduction, a new benefit plan type, benefit plans and deduction codes will be added to SHaRP.   The new Voluntary Supplemental Insurance payroll deductions will be processed in SHaRP effective for the payroll period beginning December 18, 2016, ending December 31, 2016, paid January 13, 2017.

The new Voluntary Supplemental Insurance benefit plan type, benefit plans and deduction codes are:  

PLAN
TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

BENEFIT PLAN

BENEFIT PLAN DESCRIPTION

29

VSPIAT

Voluntary Supp Insurance-AT

VolSuppIns

VSPIAT

Voluntary Supp Insurance-AT

29

VSPIBT

Voluntary Supp Insurance-BT

VolSuppIns

VSPIBT

Voluntary Supp Insurance-BT

 

As previously communicated to Regent institutions, the new Voluntary Supplemental Insurance payroll deduction will be included on the State Employee Health Plan BERF file provided to SHaRP and to each Regent payroll system to complete the Colonial Life deduction via the existing payroll process.  Employees with multiple coverages with Colonial Life will be ‘rolled’ together into one payroll deduction by Tax Class. Please note that during 2017 payroll deductions will only be offered on an after-tax basis; pre-tax payroll deductions are anticipated to be available for qualifying deductions beginning in January, 2018.

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHaRP payroll system.  Regents’ institutions are responsible for ensuring that these changes are reflected in their individual systems.  In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction/benefit plans by November 1, 2016.

 

DH:NTR:ewb

Printable Version of 17-P-005

17-P-006 SHARP Bi-Weekly Payroll Schedule for 2017 (October 5, 2016)

Informational Circular No.: 17-P-006

Effective Date: Month Day, Year

Contact Name: Earl Brynds

Ph: (785) 296-5376

Email: earl.brynds@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2017

 

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2017.  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.  Please note these schedules are subject to change during the go-live for the SHARP upgrade to version 9.2 in May 2017. Additional communications detailing any changes to these schedules will be issued at that time.

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. 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.   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.  Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.

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 the Chief Financial Officer 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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2017 On-cycle 
2017 Off-Cycle

Printable Version of 17-P-006

17-P-007 Change in Social Security Base Rate (October 19, 2016)

Informational Circular No.: 17-P-007

Supersedes Informational Circular No: 15-P-010

Effective Date: January 1, 2017

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Social Security Wage Base Increase to $127,200 effective January 1, 2017

 

The Social Security wage base for OASDI will be $127,200 for calendar year 2017.  This is a $8,700 increase from the wage base of calendar year 2016 of $118,500.  The OASDI tax rate for 2017 will be 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2017 will be $7,886.40.   There continues to be no limit on wages subject to the Medicare tax in 2017.  Medicare tax rates for employers and employees remain at 1.45%.  However, wages paid in excess of $200,000 will be subject to an additional 0.9% Medicare tax that will only be withheld from employees’ wages.  Employers will not pay the extra tax.

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 $7,886.40 for OASDI and no maximum for Medicare.  The employer and employee rates continue to be the same, with wages paid in excess of $200,000 subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.

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) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000.

The Office of the Chief Financial Officer, 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.

 

DH:NTR:abe

Printable version of 17-P-007

17-P-008 Key Payroll Processing Dates in November 2016 (October 19, 2016)

Informational Circular No.: 17-P-008

Supersedes Informational Circular No: 16-P-007

Effective Date: November 2016

Contact Name: Joyce Dickerson

Ph: (785) 296-3979

Email: joyce.dickerson@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Payroll processing schedule changes due to the November 2016 holidays  

 

Friday, November 11, 2016 (Veterans' Day), Thursday, November 24, 2016 and Friday, November 25, 2016 (Thanksgiving Holiday) are designated holidays and therefore no batch jobs are scheduled for those nights. 

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.  Please review carefully the information contained in this circular and in the attached partial calendar.

Monday, October 31, 2016

The Run A off-cycle for the period ending October 22, 2016 will be processed October 31, 2016.  SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run A off-cycle.  All employees’ reported time must be entered (and approved if applicable) by 3:30 PM.  Payable time must be approved by 6:00 PM.  Paychecks for the Run A off-cycle will be dated November 4, 2016.

Regents’ on-cycle files for the period ending October 22, 2016 will also be processed on this date.

Tuesday, November 1, 2016

Regents’ Run B off-cycle payroll files for the period ending October 22, 2016 must be received by the Department of Administration by 4:00 PM on November 1, 2016 in order to be processed on Wednesday, November 2, 2016.

Wednesday, November 2, 2016

The Run B off-cycle for the period ending October 22, 2016 will be processed November 2, 2016.  SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustments run controls for the Run B off-cycle.  All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM.  Paychecks for the Run B off-cycle will be dated November 7, 2016.

Friday, November 4, 2016

Payday for the payroll period ending October 22, 2016.

First Opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 5, 2016 submitted to the Department of Administration for processing by 5:00 PM on November 4, 2016. (These files would normally be due on Monday, November 7, 2016). Last opportunity to submit files will be noon on Monday, November 7, 2016.

Regents’ Run C off-cycle payroll files for the period ending October 22, 2016 must be received by the Department of Administration by 4:00 PM on November 4, 2016.

Monday, November 7, 2016
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 5, 2016 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 7, 2016.

NOTE: Terminations and Retirements must be entered by 6:00 PM on November 7, 2016 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.

Paysheets for the on-cycle payroll for the period ending November 5, 2016 will be created on Monday, November 7, 2016.  (Paysheets would normally be created on Tuesday, November 8, 2016.)  For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 7, 2016 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 5, 2016 will also occur November 7, 2016. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) 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 7, 2016 in order for a paycheck record to be created.

The Run C off-cycle for the period ending October 22, 2016 will be processed November 7, 2016.  SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM.  Paychecks for the Run C off-cycle will be dated November 10, 2016.

Tuesday, November 8, 2016

The second on-cycle preliminary pay calculation for the period ending November 5, 2016 will occur November 8, 2016.

Regent file sets for the period ending November 5, 2016 on-cycle and ‘A’ off-cycle may be submitted.

Wednesday, November 9, 2016

The third on-cycle preliminary pay calculation for the period ending November 5, 2016 will occur November 9, 2016.

Regents’ on-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 9, 2016. Regent file sets for the period ending November 5, 2016 ‘A’ off-cycle may be submitted.

Thursday, November 10, 2016
Final pay confirmation for the on-cycle payroll for the period ending November 5, 2016 will occur November 10, 2016.  All employees’ payable time must be approved, by 6:00 PM on November 10, 2016 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 10, 2016 in order to be reflected in the final paycheck created for the employee.

Regents’ Run A off-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 10, 2016.

Friday, November 11, 2016
Veterans Day Holiday
No batch jobs processing

Monday, November 14, 2016
The Run A off-cycle for the period ending November 5, 2016 will be processed November 14, 2016. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 18, 2016.

The Regents’ on-cycle and Run A off-cycle payroll files for the period ending November 5, 2016 will also be processed on this date.

Tuesday, November 15, 2016
Regents’ Run B off-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 15, 2016.

Wednesday, November 16, 2016
The Run B off-cycle for the period ending November 5, 2016 will be processed November 16, 2016.  SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run B off-cycle.  All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM.  Paychecks for the Run B off-cycle will be dated November 21, 2016.

Friday, November 18, 2016
Payday for the payroll period ending November 5, 2016.

First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 19, 2016 submitted to the Department of Administration for processing by 5:00 PM on November 18, 2016.  (These files would normally be due Monday, November 21, 2016.)  Last opportunity to submit files will be noon on Monday, November 21, 2016.

Regents’ Run C off-cycle payroll files for the period ending November 5, 2016 must be received by the Department of Administration by 4:00 PM on November 18, 2016.

Monday, November 21, 2016
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 19, 2016 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 21, 2016.

NOTE: Terminations and Retirements must be entered by 6:00 PM on November 21, 2016 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.

Paysheets for the on-cycle payroll for the period ending November 19, 2016 will be created on Monday, November 21, 2016. (Paysheets would normally be created on Tuesday, November 22, 2016.)  For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 21, 2016 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 19, 2016 will also occur November 21, 2016.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) 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. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending November 19, 2016.

 

The Run C off-cycle for the period ending November 5, 2016 will be processed November 21, 2016.  SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle.  All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM.  Paychecks for the Run C off-cycle will be dated November 28, 2016. (These checks would normally be dated Thursday, November 24, 2016)

Tuesday, November 22, 2016
The second on-cycle preliminary pay calculation for the period ending November 19, 2016 will occur November 22, 2016.

Regents’ on-cycle files for the period ending November 19, 2016 must be received by the Department of Administration by 4:00 PM on November 22, 2016.

Wednesday, November 23, 2016

Final pay confirmation for the on-cycle payroll for the period ending November 19, 2016 will occur November 23, 2016.  For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 23, 2016 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 23, 2016 in order to be reflected in the final paycheck created for the employee.

Regents’ Run A off-cycle payroll files for the period ending November 19, 2016 must be received by the Department of Administration by 4:00 PM on November 23, 2016.

Thursday, November 24, 2016

Thanksgiving Holiday
No batch jobs scheduled.

Friday, November 25, 2016

Thanksgiving Holiday
No batch jobs scheduled.

Attached is a partial calendar for the month of November 2016, which highlights key payroll processing activity for the month.  The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

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

 

DH:NTR:abe

Attachment
Printable version of 17-P-008

17-P-009 December 2016 Payroll Processing (November 1, 2016)

Informational Circular No.: 17-P-009

Effective Date: Immediately

Contact Name: Joyce Dickerson

Ph: (785) 296-3979

Email: joyce.dickerson@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: December 2016 Payroll Processing and Updated December Processing Calendar

 

As 2016 calendar year-end approaches, the Office of the Chief Financial Officer is making preparations for the issuance of calendar year 2016 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2016 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2017 balances; a corrected W-2 (Form W-2C) for 2016 will not be issued for the employee involved.

FINAL 2016 PAYCHECK
The final on-cycle paychecks for calendar year 2016 will be issued December 30, 2016.  Payroll transactions for the December 30, 2016 on-cycle paychecks will be posted to SMART on Wednesday night, December 28, 2016.  The final off-cycle paychecks for calendar year 2016 will be issued on December 30, 2016 (generated from the off-cycle processed on December 27, 2016).

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 27, 2016 to enter paycheck adjustment requests for any 2016 paychecks.  Adjustments processed in the December 27, 2016 off-cycle payroll will be reflected on the employee’s 2016 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 2016 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of the Chief Financial Officer, Payroll Section by 5:00 p.m. on Wednesday, December 14, 2016.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 14, 2016 on or before the December 27, 2016 off-cycle.  However, if a large volume of DA-180 forms is received on the December 14, 2016 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2016 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, 2016 which are adjusting paychecks issued prior to January 1, 2017 will not result in a W-2C; the adjustment will update the employee’s 2017 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, 2016 will update the employee’s 2017 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 17, 2016, paid December 30, 2016 are due to the Department of Administration by 4:00 p.m. on December 22, 2016.

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2016 Paycheck Reversals
Regent Institutions must submit all transmittals for 2016 paycheck reversals by 4:00 p.m. on Friday, December 23, 2016 in order to update the employee’s 2016 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 2017 payroll balances regardless of the paycheck issue date of the paycheck being reversed.  Reversals for paychecks issued prior to January 1, 2017 submitted after 4:00 p.m. on December 23, 2016 should default the pay adjust check date to January 1, 2017.

2016 Adjustments and Supplementals
In order to update employee balances for 2016, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 23, 2016.  The Run A off-cycle for the pay period ending December 17, 2016 generated on the night of Tuesday, December 27, 2016 will have a check issue date of December 30, 2016; all activity for this off-cycle will be reflected in the employees’ 2016 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 2016 date.

2017 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2017, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 23, 2016, will be considered to be 2017 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2017 business, the employee’s 2017 balances will be updated.  These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2017 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2017, agencies should default the pay adjust check date to January 1, 2017).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2017, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2017 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 2017 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, 2016 deadline for the December 27, 2016 Run A’s off-cycle payroll will not be processed until the April 17, 2017 off-cycle payroll.  Since the files will be held, please do not begin submitting those files for processing until the week of April 3, 2017.  The deadline for submitting payroll interface files for the April 17, 2017 off-cycle is 4:00 p.m. on Friday, April 14, 2017.

GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2016 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 18, 2016 and December 31, 2016 in order for the last 2016 deduction to be taken on the paycheck issued December 30, 2016 if the deduction was taken over 26 pay periods. 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 2017, agencies can enter a new row effective-dated between December 18, 2016 and December 31, 2016 in order for the first deduction for United Way or Community Health Charities for 2017 to be taken on the January 13, 2017 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 17, 2017 should be entered.  Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2017.

A batch process will run the night of December 30, 2016 to establish the fee portion (deduction code UTFXXX) of the 2017 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 2017.  This process will reduce the 2017 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 2017 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, January 3, 2017 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.  Please note that if agencies need to enter any 2017 United Way/Community Health Charities deductions after December 30, 2016, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.

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, 2016 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.  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 to identify these employees. The worklist will be sent on December 1, 2016 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles.  The worklist can be accessed two ways in SHARP:  from the Home page, click on Worklist under Main 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 2017.  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 2017 W-4s.  Employees should submit new paper W-4s by December 23, 2016 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 30, 2016 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 2017.

The KPAY320 will be processed the evening of December 30, 2016.  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, 2017 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2017 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.

For any 2017 paper W-4s (for employees claiming exemption from withholding) received between December 30, 2016 and January 3, 2017, agency personnel will need to enter the data with a January 2, 2017 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2017 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, either paper or on-line, to make any needed state tax withholding change.  SHaRP employees are encouraged to use the Employee Self Service functionality to file their 2017 K-4’s.

The 2017 Form W-4 will be posted to the Office of the Chief Financial Officer’s website as soon as it is available from the IRS.

The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 30, 2016 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 2017.  The new tax data row will be dated January 1, 2017.  The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2017 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 2017 are biweekly except:

-Group Health Insurance (Medical and Dental): semi-monthly, deducted on the first and second pay dates of the month.

-Group Health Insurance (Vision): monthly, deducted on the first pay date 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.   Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the third pay date of the month when applicable.

-Supplemental Voluntary Health Insurance: semi-monthly, deducted on the first and second pay dates of the month.

Arrearages/Advances
The collection of all outstanding payroll debts (arrearages or advances) must be completed either by personal reimbursement or paycheck deduction prior to the off-cycle A cut-off date of December 27, 2016.  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.

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 2016 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 17, 2016 by personal reimbursement as soon as possible.

Payroll arrearages and advances, not including advances for Group Health Insurance for active employees and specific arrearages requested for exclusion, outstanding as of December 31, 2016 will be sent to the State of Kansas Set-Off Program for collection.  Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 28, 2016.  Please remember that these forms are only for those arrearages that are actively being collected.

On December 30, 2016, Payroll Services will generate a file of those identified outstanding payroll arrearages which will be sent to the Set-Off Program for collection.  KPAY229 will be run to remove those identified outstanding payroll arrearages from SHARP.  Please be aware that any employee inquiries for specific information regarding the debts submitted by Payroll Services to Setoff will be directed to the individual employee’s agency.

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 January 3, 2017 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 3, 2017 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known.  Regent 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, 2016.  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 January 5, 2017 and January 9, 2017.  Electronic W-2 forms through Employee Self Service will be available on or before January 9, 2017.  For those employees not consenting to receive their W-2 forms electronically, W-2 forms will be printed and mailed on or before January 31, 2017.  Email notification of electronic W-2 availability will be provided for employees who have consented.  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 2016 that highlights the key payroll processing activity.  This calendar does not provide the same level of detail as that provided in this informational circular.  The attached calendar is intended for use as a supplementary reference tool to this informational circular.

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

Attachment
Printable version of 17-P-009

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17-P-010 Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2017 (November 15, 2016)

Informational Circular No.

17-P-010

Supersedes Informational Circular No:

15-P-012

Effective Date:

January 1, 2017

Contact Name:
Joyce Dickerson

Ph:
(785) 296-3979

Email:
(joyce.dickerson@ks.gov)

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
2017 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, 2017 as follows:

457(b) Deferred Compensation:

The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit remains unchanged at $18,000 or 100% of includible compensation.

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit remains unchanged at $36,000. 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) increases the annual contribution limit by $6,000 for 2017 making the total unchanged at $24,000.

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

Tax Sheltered Annuities (TSA):

The limit on annual contributions to a TSA for 2017 is the lesser of $54,000 or 100% of compensation, increased from $53,000 for 2016.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $265,000 (for 2016) to $270,000 (for 2017).  The $270,000 applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents (for employees whose participation began after 1995).  For School for the Blind and School for the Deaf employees, the maximum contribution that can be made to the plan is $27,000 ($270,000 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 $37,800 ($270,000 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 $390,000 (for 2016) to $400,000 (for 2017).  However, participants should note their maximum annual compensation limit will be $385,714.30, since the $385,714.30 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $54,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax Sheltered Annuities) remains unchanged at $18,000 for 2017.  The age 50 or older catch-up provision remains unchanged at $6,000 for 2017.  Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,000.   Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000.  Employees may use both the age 50 catch-up provision and 15-year rule concurrently.  IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($18,000 for 2017) 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.

Printable version of 17-P-010

DH:NTR:ckw

17-P-011 Change in Organization Dues Deduction for Public Service Employees Local Union 1290 P.E. (November 15, 2016)

Informational Circular No.: 17-P-011

Supersedes Informational Circular No: 16-P-010

Effective Date: Payroll Period Ending December 31, 2016

Contact Name: Amanda Entress

Ph: (785) 296-3887

Email: (amanda.entress@ks.gov)

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG133

 

The organization dues for members of the Public Service Employees Local Union 1290 P.E. (represents employees at the University of Kansas and the University of Kansas Medical Center) will increase from $14.37 to $17.14 per biweekly payroll period.  The new rate will become effective with the payroll period beginning December 18, 2016 and ending December 31, 2016, paid January 13, 2017.

The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $14.31 to $17.08 and the fee (ORF133) will remain at $0.06 (for a total deduction of $17.14 per biweekly payroll period).

The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system.  Regent’s institutions are responsible for ensuring that this change is made in their respective systems effective with the payroll period noted above.

Printable Version of 17-P-011

DH:NTR:abe

17-P-012 Organization Dues Change for ORG050 and ORG051 (November 15, 2016)

Informational Circular No.: 17-P-012

Supersedes Informational Circular No: 15-P-015

Effective Date: Payroll Period Ending December 31, 2016

Contact Name: Amanda Entress

Ph: (785) 296-3887

Email: (amanda.entress@ks.gov)

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Change in Organization Dues Deduction for SEAK Members

 

The organization dues for the State Employees Association of Kansas (SEAK) will be increased from $7.50 to $9.25 for regular members (ORG050) and from $4.50 to $6.25 for single, head of household members (ORG051) per biweekly payroll period.  The new rates will become effective with the payroll period beginning December 18, 2016 and ending December 31, 2016, paid January 13, 2017.

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 ORG050 will increase from $7.44 to $9.19 and the fee (ORF050) will remain at $.06 (for a total of $9.25 per biweekly payroll period).  The new rate for deduction code ORG051 will increase from $4.44 to $6.19 and the fee (ORF051) will remain at $.06 (for a total of $6.25 per biweekly payroll period).

The Office of the Chief Financial Officer, 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 effective with the payroll period noted above.

Printable version of 17-P-012

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17-P-013 Addition of New Account Codes for KPERS Working After Retirement 3rd Party/Independent Contractors Expenditure Tracking (November 21, 2016)

Informational Circular No.: 17-P-013

Effective Date: Immdeiately

Contact Name: Amanda Entress SHARP - Statewide Payroll, Nancy Haufler SMART - Statewide Accouting

Ph: (785) 296-3887, (785) 296-5368

Email: amanda.entress@ks.gov, nancy.haufler@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: New Account Codes for KPERS Working After Retirement 3rd Party/Independent Contractor Expenditure Tracking

 

As a result of the implementation of KPERS Working After Retirement (WAR) 3rd Party/Independent Contractor member contributions, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code is eligible to be used starting immediately.

Account Code                    Description                                             Short Description           

518101                               ER KPERS WAR 3rd PTY/CNSLNT          SHARP REQ    

This account code is to be used to track non-payroll employer contributions for KPERS WAR 3rd Party/Independent Contractor member type ACTR that are not tracked in SHARP. Agencies are reminded that they will need to work with KPERS to establish reporting procedures and billing frequencies for these members. As these member contributions are not tracked in SHARP agencies are required to be billed via a SMART interfund for amounts due to KPERS. Agencies should use SMART account code 518101(ER KPERS WAR 3rd PTY/CNSLNT) to record the expense side of the interfund.

Any interfunds that have been processed using any SMART account code other than 518101 will need to be corrected by creating a journal voucher in the Accounts Payable module, not Interfund module See the How to Enter a Journal Voucher job aid for instruction on entering the AP journal voucher. The payment method on the Payments tab of the journal voucher may need to be changed to ‘CHK’ in order to save the journal voucher. Submit a ManageEngine Service Desk ticket if you need additional assistance.

Printable version of 17-P-013

DH:NTR:abe

17-P-014 2017 Percentage Method Tables for Federal Tax Withholding (December 13, 2016)

Informational Circular No.: 17-P-014

Supersedes Informational Circular No: 16-P-011

Effective Date: January 1, 2017

Contact Name: Nancy Ruoff

Ph: (785) 296-2853

Email: nancy.ruoff@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2017 

 

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2017.  Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after January 1, 2017.  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 twenty-six pay periods.  In addition, the value of one withholding allowance remains unchanged at $4,050 for 2017.  

Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2017 has increased to $2,300.  In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments.  Publication 1494 for 2017 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf.

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, 2016 to all SHARP employees who were exempt from federal withholding in 2016.  The notification reminded employees that a new W-4 must be submitted to continue the federal tax withholding exempt status for 2017.  The notification was sent to the employee’s e-mail address listed under ‘Update My Profile’ in the Employee Self Service Center. 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 2017 W-4s.  The 2017 Form W-4 has not currently been published by the IRS. The Office of the Chief Financial Officer will post it to their website as soon as it becomes available. 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 30, 2016 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 2017.     

The KPAY320 will process during the batch cycle generated on the evening of December 30, 2016.  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, 2017 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’.

For any Form W-4s for 2017 received after December 30, 2016, agency personnel will need to enter the data with a January 2, 2017 effective date.   Agency Workflow Administrators also will need to change the effective date to January 2, 2017 for any electronic FormsW-4s for 2017 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

2016 must file a new 8233 form for calendar year 2017 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 that will process on December 30, 2016,  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 2017.  The new tax data row will be dated January 1, 2017.  Regents Institutions are responsible for updating the 8233 indicator on the tax data records once a form 8233 for calendar year 2017 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 30, 2016. The report will be available in the agency directory on the MVS on Tuesday, January 2, 2017.  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 Office of the Chief Financial Officer, Payroll Services, will make all of the necessary changes in the computation of withholding taxes for SHARP agencies.  Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.

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Attachment:  Tables for Percentage Method of Withholding

Printable version of 17-P-014

17-P-015 Employee Taxability of State-Owned or Leased Vehicle (December 16, 2016)

Informational Circular No.: 17-P-015

Supersedes Informational Circular No: 16-P-014

Effective Date: January 1, 2017

Contact Name: Amanda Entress

Ph: (785) 296-3887

Email: amanda.entress@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2017

 

The Internal Revenue Service (IRS) has announced the standard mileage rate will decrease to 53.5 cents beginning January 1, 2017 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 53.5 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 2017 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 (unchanged from 2016), and $17,800 (up from $17,700 in 2016) for a passenger truck or van.  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).

Printable version of 17-P-015

DH:NTR:abe

17-P-016 Change in Organization Dues Deduction for FOP Lodge #37 (December 28, 2016)

Informational Circular No.: 17-016

Supersedes Informational Circular No: 14-P-024

Effective Date: Payroll Period Ending January 14, 2017

Contact Name: Amanda Entress

Ph: (785) 296-3887

Email: amanda.entress@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG037

 

The organization dues for members of the FOP Lodge #37 will change from $20.31 to $25.00 per biweekly payroll period.  The new rate will become effective with the payroll period beginning January 1, 2017 and ending January 14, 2017, paid January 27, 2017.

The amounts listed above include the deduction amount (ORG037 deduction code) and the $0.06 service fee (ORF037 deduction code) added together. The new rate for deduction code ORG037 will increase from $20.25 to $24.94 and the fee (ORF037) will remain at $.06 (for a total deduction of $25.00 per biweekly payroll period).

The Office of the Chief Financial Officer, Payroll Systems Team will make the necessary updates to the SHARP system.  Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

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Printable Version of 17-P-016

17-P-017 W-2 Wage and Tax Statements for Calendar Year 2016 (January 9, 2017)

Informational Circular No.: 17-P-017

Supersedes Informational Circular No: 16-P-015

Effective Date: Immediately

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary:  Information Pertaining to Employee 2016 W-2 Statements

 

The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2016 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 January 6, 2017.  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 February 5, 2017.  

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 2016 W-2's that were generated for your agency.  The Department of Administration will be preparing a SMART voucher to bill each agency for the applicable costs associated with processing the 2016 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 2016.  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).  For those employees consenting to receive their W-2 electronically, the form will be available on Employee Self Service (ESS).  For those receiving a printed W-2, the form will be printed and sealed in an envelope. Please note that any employees who have retired or separated from state service continue to have access to consent and receive W-2 forms electronically via Employee Self Service for 18 months following separation.  However, retired/separated employees will have his/her consent reset in order to ensure generation of a mailed copy of his/her W-2 if the former employee does not re-consent/receive the W-2 electronically via Employee Self Service.  

Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees not consenting to receive an electronic 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.  The return address for all W-2 forms mailed this year will be the address of the Department of Administration’s Office of Printing & Mailing.

All paper 2016 W-2’s, which are considered undeliverable to the employees and are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be retained until April 15, 2016.  At that time, they will be destroyed.

In cases where the 2016 W-2 Wage and Tax Statement information does not agree with your records, please notify this office with an explanation.  For all cases where the social security number is incorrect, please send a copy of the employee's social security card to this office with the explanation.  State agencies are not authorized to make changes on 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 2010 through 2016, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2/W-2c Consent’ found in Employee Self Service, and then view and print the duplicate using ‘View W-2/W-2c Forms’.  For those employees not wishing to consent to receiving their W-2 Form electronically, they should use the ‘W-2 Reissue Request’ functionality also found in Employee Self Service to request a paper W-2 duplicate if a paper W-2 was processed for the year being requested.  Desk Aids that explain these procedures, Desk Aid - View W-2/W-2c Forms - Employee Self Service and Desk Aid - W-2 Reissue Request - Employee Self Service may be printed and distributed to employees to assist them in this process. Agencies are reminded that employees who have separated or retired from State service have access to consent to consent/view/print and to request duplicate paper 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 consent/view/print or request a duplicate W-2.  For requesting paper W-2 reissues, 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 paper 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 (2016, 2015, 2014, 2013, 2012, 2011, or 2010) the reissued W-2 is needed.  Duplicate W-2’s for 2010- 2015 are currently available, and duplicate W-2’s for 2016 will be available starting on Wednesday, February 8, 2017.

The Office of the Chief Financial Officer, Payroll Services will continue to provide duplicate paper 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 2016 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 2016 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 785-296-7059.

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 30, 2016 are included in the 2016 W-2 amounts.   

Attachment A

Attachment B

Printable Version of 17-P-017

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17-P-018 2017 W-2 Production Report Schedule (January 9, 2017)

Informational Circular No.: 17-P-018

Supersedes Informational Circular No: 16-P-016

Effective Date: Immediately

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: <insert summary information here>

 

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 2017 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 2017 W-2 production reports are scheduled to be generated:

Friday, February 10, 2017
Friday, March 10, 2017
Friday, April 21, 2017
Friday, May 19, 2017
Friday, June 16, 2017
Friday, July 14, 2017
Friday, August 11, 2017
Friday, September 8, 2017
Friday, October 6, 2017
Friday, November 3, 2017
Friday, November 17, 2017
Monday, December 4, 2017
Monday, December 11, 2017
Monday, December 18, 2017
Tuesday, December 26, 2017
Tuesday, January 2, 2018
Thursday, January 4, 2018 - 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 the Chief Financial Officer.  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 2017 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.

Printable Version of 17-P-018
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17-P-019 Change in KOSE Organization Dues Deduction Amounts (February 7, 2017)

Informational Circular No.: 17-P-019

Supersedes Informational Circular No: 13-P-013

Effective Date: Payroll Period Ending February 11, 2017

Contact Name: Amanda Entress

Ph: (785) 296-3887

Email: amanda.entress@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 January 29, 2017 and ending February 11, 2017, paid February 24, 2017 as follows:

Deduction Code Hourly Rate of Pay  Bi-Weekly Dues Deduction 
 ORG502 $ 13.99 or Less  $17.43 
 ORG503 $ 14.00 - 14.99  $18.02
 ORG504 $ 15.00 - 15.99  $19.12 
 ORG505 $ 16.00 - 16.99 $20.21 
 ORG506 $ 17.00 - 17.99  $21.31 
 ORG507 $18.00 or Greater  $22.40 

 

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 the Chief Financial Officer, 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 February 24, 2017.

Printable version of 17-P-019

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17-P-020 SHARP 9.2 Upgrade and Key Payroll Processing Dates in May 2017 (April 14, 2017)

Informational Circular No.: 17-P-020

Effective Date: May 2017

Contact Name: Earl Brynds - OCFO, Brent Smith - OPS

Ph: (785) 296-5376, (785) 296-1432

Email: earl.brynds@ks.gov, brent.smith@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: SHARP 9.2 Upgrade-Payroll/Time and Labor Changes and Impact on Payroll Processing Dates in May 2017  

 

This informational circular covers key dates and Payroll/Time and Labor changes in SHARP as a result of the transition to the SHARP version 9.2 Upgrade. On-cycle and off-cycle dates have been changed in May in order to accommodate the transition to v9.2. Please review carefully the information contained in this circular and in the calendar attached.

Due to the SHARP 9.2 Upgrade, scheduled to begin Friday night, May 12, 2017, 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.

Friday, May 5, 2017
Payday for the payroll period ending April 22, 2017.

First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending May 6, 2017 submitted to the Department of Administration for processing by 5:00 PM on May 5, 2017.  (These files would normally be due Monday, May 8, 2017.)  Last opportunity to submit files will be noon on Monday, May 8, 2017.

Regents’ Run C off-cycle payroll files for the period ending April 22, 2017 must be received by the Department of Administration by 4:00 PM on May 5, 2017.

Last day to load new combination codes.  No new combination codes will be loaded until after the 9.2 environment is live on May 16, 2017.

Monday, May 8, 2017
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending May 6, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on May 8, 2017.

NOTE: Terminations and Retirements must be entered by 6:00 PM on May 8, 2017 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.

Paysheets for the on-cycle payroll for the period ending May 6, 2017 will be created on Monday, May 8, 2017. (Paysheets would normally be created on Tuesday, May 9, 2017.)  For SHARP agencies, some job actions (i.e., FLSA Status change) must be entered by 6:00 PM on May 8, 2017 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending May 6, 2017 will also occur May 8, 2017.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) in 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. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending May 6, 2017.

The Run C off-cycle for the period ending April 22, 2017 will be processed May 8, 2017.  SHARP agencies have until 6:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle.  All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM.  Paychecks for the Run C off-cycle will be dated May 11, 2017.

Tuesday, May 9, 2017
The second on-cycle preliminary pay calculation for the period ending May 6, 2017 will occur May 9, 2017.

Regents’ on-cycle files for the period ending May 6, 2017 must be received by the Department of Administration by 4:00 PM on May 9, 2017. (These files would normally be due Thursday, May 11, 2017.)

Wednesday, May 10, 2017

Final pay confirmation for the on-cycle payroll for the period ending May 6, 2017 will occur May 10, 2017.  (Final pay confirmation would normally occur Friday, May 12, 2017). For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) by 3:30 PM.  All employees’ payable time must be approved, by 6:00 PM on May 10, 2017 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on May 10, 2017 in order to be reflected in the final paycheck created for the employee.

Thursday, May 11, 2017

The Regents’ on-cycle files for the period ending May 6, 2017 will be processed.

Regents’ Run A off-cycle payroll files for the period ending May 6, 2017 must be received by the Department of Administration by 4:00 PM on May 11, 2017. (These files would normally be due Friday, May 12, 2017.)

Friday, May 12, 2017

The Run A off-cycle for the period ending May 6, 2017 will be processed May 12, 2017. (This off-cycle would normally be scheduled for Monday, May 15, 2017.)   SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle. All employees’ reported time must be entered (and approved if applicable) by 3:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated May 19, 2017.  NOTE:  This off-cycle is the final payroll cycle run in v9.1.

Saturday, May 13, 2017
SHARP system shut down.  Data conversion for transition to v9.2 begins.  Regent’s institutions should hold all interface files until the SHARP 9.2 system comes back up on the morning of May 16, 2017.

Monday, May 15, 2017

Upgraded SHARP system open to Central Department of Administration upgrade team members only for validation. 

Tuesday, May 16, 2017

SHARP system open to all users.  Normal Payroll Processing Schedule resumes.

Regents’ Run B off-cycle payroll files for the period ending May 6, 2017 must be received by the Department of Administration by 4:00 PM on May 16, 2017.

Wednesday, May 17, 2017
The Run B off-cycle for the period ending May 6, 2017 will be processed May 17, 2017.  Paychecks for the Run B off-cycle will be dated May 22, 2017. 

Note: This is the first payroll processed in v9.2.

Attached is a partial calendar for the month of May 2017, which highlights key payroll processing activity for the month.  The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

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

Additional Key Payroll/Time and Labor Changes for Transition to 9.2
As a result of the SHARP 9.2 upgrade, the following is a brief summary of additional key Payroll/Time and Labor changes that are being implemented in SHARP effective beginning May 16, 2017.

Time and Labor

  • The look and feel of the electronic timesheet has changed.  The Department ID is now visible via a pop up box when hovering over the employee’s Job Title.  Additional job attributes are also visible in the pop up Job Information box.   There are also some new folder tabs on the timesheet which contain key Reported Time and Payable Time information.  Managers and Timekeepers will approve timesheets individually so that online timesheet edits are invoked.  Managers can no longer approve time via the Time Summary page.  Individual timesheets must be pulled up to approve time.

WorkCenters

  • New WorkCenter functionality is being offered through both Payroll and Time and Labor. Through the WorkCenter, some agency users with the assigned security roles will be able to run a few centrally maintained queries for the first time ever in SHARP.  For the Time and Labor WorkCenter, initial queries will be available for Reported Time (Timesheet) for multiple time periods as well as for Payable Time for one pay period.  Another Time and Labor query will be initially available for Time Reporter Data like employee’s Workgroup, Taskgroup, etc.  Depending on system performance with this new functionality, additional queries may be added to the WorkCenter in the future.
  • For Payroll, four queries will initially be available in the Payroll WorkCenter for the assigned agency users.  These centrally maintained queries are intended for agencies to run during pay calc week to help identify/resolve certain scenarios on employee paychecks before final pay calc.  The initial payroll queries will be available to identify calculated checks with ADV (Advance) earnings, checks with an arrearage collection (ADVNCE or ADJUST deductions), checks with WCH (Workers Comp Hours) earnings code and a KPERS deduction, and calculated checks that are missing a KPERS deduction.

    Payroll

  • The Direct Deposit account numbers will be masked except for the last four characters of the account number in the following SHARP system locations:
    1. The Net Pay Distribution area on the Paycheck Deductions tab under the Review Paycheck page.
    2. The Net Pay Distribution area on the PDF pay advice document under View Paycheck in Employee Self-Service.
    3. The Distribution area on the employee Request Direct Deposit page (enrollment page).
  • The entire account number is still visible on the Direct Deposit enrollment page either in correction mode or by clicking on the ‘+’ in the upper right of the page (NOTE: don’t save the resulting new row that is added from clicking on the ‘+’).

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Attachment

Printable Version of 17-P-020

17-P-021 Payroll/SMART Processing Date Changes in June 2017 (May 8, 2017)

Informational Circular No.: 17-P-021

Effective Date: June 2017

Contact Name: Earl Brynds

Ph: (785) 296-5376

Email: earl.brynds@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Payroll/SMART processing schedule changes due to 2017 Fiscal Year End

 

Due to the upcoming 2017 Fiscal Year End in SMART and the payroll pay check date occurring on the last day of the fiscal year in SHARP, June 30, 2017, it is necessary to make a few changes to the normal payroll/SMART processing schedules to accommodate the early closing of SMART on Wednesday, June 28, 2017.

Regents/Agencies are asked to pay close attention to the changes noted below to file due dates and processing dates for payroll in SHARP and for budget checking and posting of payroll journals in SMART.

Wednesday, June 21, 2017
Regents’ on-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 21, 2017.   (These files would normally be due on Thursday, June 22, 2017).

Regent file sets for the period ending June 17, 2017 ‘A’ off-cycle may be submitted.

SHARP on-cycle payroll pre-calculation for the period ending June 17, 2017 will be processed as normal on this date.

Thursday, June 22, 2017
Regents’ on-cycle files for the period ending June 17, 2017 will be processed on this date. (The Regent’ on-cycle files would normally be processed on Monday, June 26, 2017).

SHARP on-cycle payroll pre-calculation for the period ending June 17, 2017 will be processed as normal on this date.

Friday, June 23, 2017
Regents’ on-cycle payroll journals for the period ending June 17, 2017 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 28, 2017).

Regents’ Run A off-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 23, 2017.  NOTE: If necessary, Regents can work directly with Statewide Payroll to submit off-cycle ‘A’ payroll files for approval on Monday, June 26, 2017, but all files must be approved no later than 3pm on Monday, June 26, 2017 for processing in the ‘A’ off-cycle.

SHARP on-cycle final payroll calculation for the period ending June 17, 2017 will be processed as normal on this date.

Monday, June 26, 2017
SHARP on-cycle payroll journals for the period ending June 17, 2017 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 28, 2017).

NOTE: SHARP and Regents’ off-cycle ‘A’ payroll for the period ending June 17, 2017 will be processed as normal on June 26, 2017.  This will be the last payroll cycle for fiscal year 2017.

Tuesday, June 27, 2017
Regents’ and SHARP off-cycle ‘A’ payroll journals for the period ending June 17, 2017 will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Wednesday, June 28, 2017).

Regents’ Run B off-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 27, 2017.

Wednesday, June 28, 2017
SMART closed to Agencies.

SHARP and Regents’ off-cycle ‘B’ payroll for the period ending June 17, 2017 will be processed as normal in SHARP on June 28, 2017.  This will be the first payroll cycle for fiscal year 2018.

Thursday, June 29, 2017 through Friday, June 30, 2017
SMART closed to Agencies.

Regents’ Run C off-cycle payroll files for the period ending June 17, 2017 must be received by the Department of Administration by 4:00 PM on June 30, 2017.

Monday, July 3, 2017
SMART open to Agencies.

Regents’ and SHARP off-cycle ‘B’ payroll journals for the period ending June 17, 2017 (off-cycle ‘B’ payroll was processed in SHARP on Wednesday, June 28, 2017) will be budget checked and posted in SMART on this date. (These journals would normally be budget checked and posted in SMART on Friday, June 30, 2017).

SHARP and Regents’ off-cycle ‘C’ payroll for the period ending June 17, 2017 will be processed as normal on July 3, 2017.

NOTE: Due to the July 4, 2017 holiday, paysheets for the SHARP on-cycle payroll for the period ending July 1, 2017 will be created on Monday, July 3, 2017.  (Paysheets would normally be created on Tuesday, July 4, 2017.)

Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending July 1, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on July 3, 2017.

Terminations and Retirements must be entered by 6:00 PM on July 3, 2017 and reported time must be submitted (and approved if applicable) by 3:30 PM in order for leave payouts to be calculated correctly.

The first on-cycle preliminary pay calculation for the period ending July 1, 2017 will also occur July 3, 2017. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 3:30 PM.  After Time Administration runs at 3:30 PM, payable time must be approved by 6:00 PM. on July 3, 2017 in order for a paycheck record to be created.

 

Printable Version of 17-P-021

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17-P-022 Fiscal Year End Payroll Processing for FY 2017 (May 15, 2017)

Informational Circular No.: 17-P-022

Supersedes Informational Circular No: 16-P-023

Effective Date: Immediately

Contact Name: Joyce Dickerson

Ph: (785) 296-3979

Email: joyce.dickerson@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 2018 payroll contribution rates will be issued as soon as the information becomes available. There is also informational circular 17-P-021 available regarding the key payroll processing dates related to fiscal year end processing in SHARP and SMART.

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 17, 2017 will use fiscal year 2017 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 17, 2017 will use fiscal year 2018 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, 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 A off-cycle (scheduled for June 26, 2017, paid June 30, 2017) for the pay period ending June 17, 2017 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2017 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 25, 2017 and should be completed by Monday morning, June 26, 2017.  In that process, a new row will be added to the Department Budget tables with an effective date of June 18, 2017 (beginning date of the first on-cycle payroll charged to FY2018).  The Budget End Date will be June 17, 2018.

Agencies should send Combination Code files or any Department Budget Table files for FY18 changes into Payroll Services by Friday, June 23, 2017.  These files will be loaded into SHARP beginning Monday, June 26, 2017. Agencies should not enter any rows with an effective date greater than or equal to June 18, 2017 until after the FY2018 insert has been completed. When adding new rows for FY2018, agencies should verify that June 17, 2018 was used as the Budget End Date for FY2018.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Tuesday June 27, 2017 after the ‘A’ off-cycle process has been completed for the June 17, 2017 pay period end date.  A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 27.  Agencies are encouraged to complete all FY17 payroll adjustments on or before the ‘A’ off-cycle which processes on Monday night, June 26, 2017, since the ‘A’ off-cycle is the last payroll cycle in SHARP for FY17.    Otherwise, any adjustments processed in the ‘B’ off-cycle on Wednesday, June 28, 2017 will be included with FY18 transactions and will not be included on the KPAYGL5C file until it is run again on Wednesday night, July 5, 2017. 

GHI Adjustments

As a reminder, GHI adjustments can only be processed for terminated employees. Contact SEHP Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 at Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan about event maintenance that may affect claims processing for any active employees.

Regents’ Institutions Responsibilities

Regents’ institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the SMART INF06 interface files affect the correct fiscal year expenditures.

Reminders

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

  1. Enter job data changes prior to the creation of paysheets.  Paysheets for on-cycle payrolls are generally created on the Tuesday night following the end of the payroll period.  Agencies should not change the FLSA status after Tuesday night as this will cause issues with the paysheets and will require special handling.  Agencies should also not change the Assign Work Schedule after Tuesday night if the change affects the Paygroup.
  2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation.  The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.

Printable Version of 17-P-022

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17-P-023 Housing, Food Service and Other Employee Maintenance (May 15, 2017)

Informational Circular No.: 17-P-023

Supersedes Informational Circular No: 17-P-001

Effective Date: July 1, 2017

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@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 the Chief Financial Officer.  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 2017 will require entry into the SHARP system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income.  FY2018 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday July 3, 2017 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending July 1, 2017 (paychecks dated July 14, 2017).

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
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17-P-024 Fiscal Year 2018 Payroll Contribution Rates (June 21, 2017)

Informational Circular No.: 17-P-024

Supersedes Informational Circular No: 16-P-025

Effective Date: Pay Period Beginning June 18, 2017; Ending July 1, 2017; Paid July 14, 2017

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2018-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 2018.  The fiscal year 2018 rates will become effective with the on-cycle payroll period beginning June 18, 2017, ending July 1, 2017 and paid July 14, 2017.  The withholding rates for OASDI, Medicare, and federal income taxes remain unchanged for the remainder of calendar year 2017.  The withholding rates for Kansas income taxes will be changing.    An additional informational circular will be published to discuss the Kansas income tax withholding changes and effective dates as soon as they are released by the Kansas Department of Revenue.

For Fiscal Year 2018, the employer’s contribution to KPERS Death and Disability Insurance moratorium will extend through the first quarter of fiscal year 2018, which includes pay periods ending July 1, 2017, paid July 14, 2017 through pay period ending September 9, 2017, paid September 22, 2017. Beginning with the second quarter of fiscal year 2018 the rate will be 1.00% (except for retirement codes J1, J2, J3 which are .4%).  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 March 12, 2016 and June 30, 2017; between April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; between April 1, 2012 and June 30, 2012; and between April 1, 2013 and June 30, 2013.

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 2015 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 Working After Retirement flyer.  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 May 1, 2015.  Employees who meet these criteria should be enrolled in corresponding benefit plan and Deduction Code ‘RETRET’ as detailed in Informational Circular 16-P-024.  Retirees enrolled in the working after retirement benefit plans are not subject to KPERS death and disability insurance.

The Office of the Chief Financial Officer, 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
Attachment B
Attachment C
Printable Version of 17-P-024

17-P-025 New Payroll Paycard Provider (June 28, 2017)

Informational Circular No.: 17-P-025

Effective Date: August 1, 2017

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: Carmen.Waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: US Bank is the new payroll Paycard provider effective 8/1/17

 

The Office of the Chief Financial Officer, Statewide Payroll has signed a new contract for payroll Paycard services with US Bank featuring the US Bank FOCUS Paycard program.  Employees that currently utilize the Skylight payroll paycard will have the option to continue to use their existing Skylight paycard or transition to the new US Bank FOCUS Paycard program.

The FOCUS Paycard program will expand the features and ATM networks available to State of Kansas employees who choose to participate in the FOCUS Paycard program.

Some of the key features for FOCUS Paycard program participants include:

  • Expanded ATM network including US Bank, Allpoint, and MoneyPass ATMs
  • U.S. Bank FOCUS Mobile App to access account, check balance, and view transactions
  • Available interest-bearing savings account feature
  • Text/Email alerts, online bill pay, and more!

Statewide Payroll is working with the US Bank transition team to implement the new paycard program by August 1, 2017. Agencies will be receiving a request from Statewide Payroll to provide the agency-specific information required to set up the administrative portal for the US Bank FOCUS Paycard program.  The process for issuing a FOCUS Paycard will be similar to the existing process including instant-issue packs, auto-inventory replenishment options, and on-line instant-issue card enrollment.  US Bank and Statewide Payroll will provide training for agency HR/Payroll staff on the US Bank FOCUS Paycard administrative portal in late July. Additional information will be sent out as it is available.

Agencies are asked to continue to use the Skylight paycard for any new employees requesting a Paycard through July 31, 2017.  Effective August 1, 2017, agencies will issue the US Bank FOCUS Paycard to new or existing employees seeking to utilize a paycard as part of their payroll payment solution.

Questions regarding the new Paycard program can be directed to Carmen Waters at 785-296-7059 or by email at Carmen.waters@ks.gov, or to Amanda Entress at 785-296-3887 or by email at Amanda.entress@ks.gov.

 

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Printable Version of 17-P-025

17-P-026 2017 Percentage Method Tables for State Tax Withholdings (June 28, 2017)

Informational Circular No.: 17-P-026

Supersedes Informational Circular No: 15-P-018

Effective Date: July 1, 2017

Contact Name: Nancy Ruoff

Ph: (785) 296-2853

Email: nancy.ruoff@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: New State Withholding Tax Tables Effective for Paychecks Issued On or After July 1, 2017 

 

The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2017.  Please note that the standard deduction for one withholding allowance remains unchanged at $ 2,250.00 per year in calendar year 2017.  The attached tables are to be used in computing state tax withholding for wages paid on or after January 1, 2017.  In order to use the attached tables, income must be annualized.  To annualize income, multiply state taxable income for the current bi-weekly pay period by twenty-six pay periods. All checks issued on or after July 1, 2017, including adjustments processed for checks that were originally issued prior to July 1, 2017, will use the new withholding rates.  

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system to implement the new withholding tax rates. Regents’ institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.

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Attachment:  Tables for Percentage Method of Withholding
Printable version of 17-P-026

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