Kansas Department of Administration

FY 2018

18-P-001 Change in Organization Dues Deduction Amounts (August 15, 2017)

Informational Circular No.: 18-P-001

Supersedes Informational Circular No: 17-P-002

Effective Date: Payroll Period Ending September 23, 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 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 10, 2017 and ending September 23, 2017, paid October 6, 2017 as follows:

Deduction Code

Hourly Rate of Pay

Bi-Weekly Salary

Dues Deduction

ORG001

$ 13.99 or Less

$ 1,119.20 or Less

$12.95

ORG002

$ 14.00 – 14.99

$ 1,119.21 – 1,199.20

$13.74

ORG003

$ 15.00 – 15.99

$ 1,199.21 – 1,279.20

$14.78

ORG004

$ 16.00 – 16.99

$ 1,279.21 – 1,359.20

$18.57

ORG005

$ 17.00 – 17.99

$ 1,359.21 – 1,439.20

$19.67

ORG006

$ 18.00 or Greater

$ 1,439.21 or Greater

$20.76

 

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.

DH:NTR:abe

Printable Version of 18-P-001

18-P-002 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (August 22, 2017)

Informational Circular No.: 18-P-002

Supersedes Informational Circular No: 17-P-003

Effective Date: Payroll Period Ending September 9, 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 ORG030

 

The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $30.91 to $31.21 per biweekly payroll period.  The new rate will become effective with the payroll period beginning August 27, 2017 and ending September 9, 2017, paid September 22, 2017.

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 $30.85 to $31.15 and the fee (ORF030) will remain at $.06 (for a total deduction of $31.21 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 18-P-002

18-P-003 Missouri State Withholding Tax Law Change (August 24, 2017)

Informational Circular No.: 18-P-003

Effective Date: Immediately

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Missouri State withholding tax law change for residents of Missouri working in another state. 

 

The State of Missouri Employer’s Tax Guide was updated in 2017 to reflect a change in the tax law regarding residents of Missouri working in another state. The tax law states that if a Missouri resident employee performs services in a state with an income tax rate that is lower than Missouri, the employer must withhold and remit to Missouri the difference between the states’ withholding requirements. This change has been implemented within the SHARP system for all current employees who reside in Missouri, effective with the paycheck dated August 11, 2017.  Regent agencies are responsible for implementing this withholding change in the Regent agency systems for any Missouri resident employed in Kansas.

When an agency hires an employee who resides in Missouri, the agency will have the responsibility to ensure state tax data is set up correctly. In SHARP, when an employee’s home address is entered in personal data, the system will automatically establish a state tax row for both the State of Kansas, and the State of residence. If the employee’s State of residence is Missouri, the agency should not delete the tax row for the state of Missouri.  Any additional state tax rows inserted for an employee’s state of residence that is other than Missouri should continue to be deleted when completing the employee tax setup.  SHARP will default the Marital Status to Single and Zero withholding allowances for the tax calculation for both Kansas and Missouri. Missouri residents employed in Kansas should complete both the KS W-4 and the MO W-4 Employee’s Withholding Allowance Certificate at the time of hire if the employee wishes to have the additional Missouri withholding.

If the employee does not wish to have the additional required Missouri tax withheld or is claiming exempt status from withholding taxes, the employee must complete the attached Form MO W-4C Withholding Affidavit for Missouri Residents. This form will relieve the State of Kansas from the responsibility of deducting the additional tax amount from the employee’s paycheck. If an employee submits Form MO W-4C, the agency HR staff should delete the Missouri Tax Row in SHARP and retain the Form MO W-4C in the employee’s personnel file. 

MO-W-4
MO-W-4C
Printable Version of 18-P-003

 

DH:NTR:abe

 


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18-P-004 Ending the Employer KPERS Death and Disability Insurance Contributions Moratorium (September 5, 2017)

Informational Circular No.: 18-P-004

Supersedes Informational Circular No: 16-P-022

Effective Date: Paychecks Issued On or After October 6, 2017

Contact Name: Earl Brynds

Ph: (785) 296-5376

Email: earl.brynds@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Employer KPERS Death and Disability Insurance Contributions to Resume Starting the Pay Period Beginning September 10, 2017 and ending September 23, 2017, paid October 6, 2017

 

House Bill 2002 section 175, passed in the 2017 legislative session, extended the suspension of employer contributions for KPERS Death and Disability Insurance through the first 6 pay periods of fiscal year 2018.  The 2017 moratorium will expire with pay period ending September 23, 2017.  As a result, the Office of the Chief Financial Officer, Payroll Services will resume collecting and remitting the employer portion of KPERS Death and Disability insurance contributions starting with the pay period beginning September 10, 2017 and ending September 23, 2017, paid October 6, 2017.

The KPERS Death and Disability contributions for off-cycle payrolls are calculated based on pay period end dates, so paycheck adjustments processed after October 1, 2017 for pay periods ending on and between April 3, 2010 and June 12, 2010, on and between March 19, 2011 and June 11, 2011, on and between March 31, 2012 and June 9, 2012, on and between March 30, 2013 and June 8, 2013 and on and between March 12, 2016 and September 9, 2017 will continue to NOT have the contributions collected and remitted.

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

 

DH:NTR:abe

Printable Version of 18-P-004

18-P-005 SHARP Bi-Weekly Payroll Schedule for 2018 (October 3, 2017)

Informational Circular No.: 18-P-005

Supersedes Informational Circular No: 17-P-006

Effective Date: Calendar Year 2018

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 2018

 

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2018.  The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. 

SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll.  If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day.  Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. 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.

DH:NTK:abe

2018 On-cycle
2018 Off-Cycle

Printable version of 18-P-005

18-P-006 New Benefit Plans/Deduction Codes for Group Health Insurance (October 16, 2017)

Informational Circular No.: 18-P-006

Effective Date: December 17, 2017

Contact Name: Jude Overton

Ph: (785) 296-2290

Email: jude.overton@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: New Benefit Plans/Deduction Codes for Group Health Insurance for Plan Year 2018

 

The Kansas State Employees Health Care Commission recently approved adding three new medical insurance plans (J, N and Q), in addition to the existing Plan A and Plan C options, for State of Kansas employees via payroll deduction.  These new medical plans will be offered by Aetna and Blue Cross Blue Shield of Kansas during open enrollment in October 2017 for coverage beginning January 1, 2018.

To implement the new medical insurance payroll deductions, new benefit plans and deduction codes will be added to SHaRP.   The new medical insurance payroll deductions will be processed in SHaRP effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018.

The new medical insurance benefit plans and deduction codes effective December 17, 2017 are:

 

PLAN

TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

BENEFIT PLAN

10

BCJJAT

BCBS – Plan J AT

MedicalAT

BCJJAT

10

BCJJBT

BCBS – Plan J BT

MedicalBT

BCJJBT

10

BCNNAT

BCBS – Plan N AT

MedicalAT

BCNNAT

10

BCNNBT

BCBS – Plan N BT

MedicalBT

BCNNBT

10

BCQQAT

BCBS – Plan Q AT

MedicalAT

BCQQAT

10

BCQQBT

BCBS – Plan Q BT

MedicalBT

BCQQBT

10

AETJAT

AETNA-Plan J AT

MedicalAT

AETJAT

10

AETJBT

AETNA-Plan J BT

MedicalBT

AETJBT

10

AETNAT

AETNA-Plan N AT

MedicalAT

AETNAT

10

AETNBT

AETNA-Plan N BT

MedicalBT

AETNBT

10

AETQAT

AETNA-Plan Q AT

MedicalAT

AETQAT

10

AETQBT

AETNA-Plan Q BT

MedicalBT

AETQBT

 

Also, effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018, new employer-only deduction codes will be implemented in SHaRP to assist in processing/tracking the HealthQuest employer contribution rewards paid to employees.  These new deduction codes will appear on employee paychecks for each pay period in which an employee’s earned HealthQuest credits are processed.

 

PLAN

TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

BENEFIT PLAN

67

HSAREW

Health Savings Acct Rewards

HSARewards

HSAREW

68

HRAREW

Health Reimb Acct Rewards

HRARewards

HRAREW

 

The regular quarterly HSA/HRA employer contribution deduction codes will not change.  These deduction codes are HSADR or HSASR for Health Savings Account contributions and HRADR or HRASR for Health Reimbursement Account contributions.

In addition, the voluntary supplemental insurance carrier is changing from Colonial to MetLife effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018.  Therefore, new voluntary supplemental insurance benefit plans and after-tax deduction codes effective December 17, 2017 are: 

 

PLAN

TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

BENEFIT PLAN

29

MTAIAT

MetLife Accident Ins AT

 

VolSuppIns

MTAIAT

29

MTCIEN

MetLife Crit Ill High Plan AT

 

VolSuppIns

MTCIEN

29

MTCIBA

MetLife Crit Ill Low Plan AT

 

VolSuppIns

MTCIBA

29

MTHIBA

MetLife Hosp Ind Low Plan AT

 

VolSuppIns

MTHIBA

29

MTHIEN

MetLife Hosp Ind High Plan AT

 

VolSuppIns

MTHIEN

 

The 2017 plan year voluntary supplemental insurance benefit plans/deduction codes created for Colonial will be discontinued effective for the payroll period beginning December 17, 2017, ending December 30, 2017, paid January 12, 2018.  Employees who continue their coverage through Colonial will be direct billed by Colonial for premiums effective in 2018.  Colonial will be sending the direct billing information out to impacted employees in the future.

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 codes/benefit plans by November 30, 2017.

Printable version of 18-P-006

DH:NTR:ewb

18-P-007 Change in Social Security Base Rate (October 24, 2017)

Informational Circular No.: 18-P-007

Supersedes Informational Circular No: 17-P-007

Effective Date: January 1, 2018

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 $128,700 effective January 1, 2018

 

The Social Security wage base for OASDI will be $128,700 for calendar year 2018.  This is a $1,500 increase from the wage base of calendar year 2017 of $127,200.  The OASDI tax rate for 2018 will be 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2018 will be $7,979.40.   There continues to be no limit on wages subject to the Medicare tax in 2018.  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 $7,979.40 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:ckw

Printable version of 18-P-007

18-P-008 Deferred Compensation and Tax Sheltered Annuity Limits for Calendar Year 2018 (October 27, 2018)

Informational Circular No.: 18-P-008

Supersedes Informational Circular No: 17-P-010

Effective Date: January 1, 2018

Contact Name: Joyce Dickerson

Ph: (785) 296-3979

Email: joyce.dickerson@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: 2018 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, 2018 as follows:

457(b) Deferred Compensation:

The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to $18,500 (up from $18,000 in 2017) or 100% of includible compensation.

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $37,000 (up from $36,000 in 2017). 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 2018 making the total $24,500. The provision for 2017 was $6,000 making the total for 2017 $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 2018 is the lesser of $55,000 or 100% of compensation, increased from $54,000 for 2017.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $270,000 (for 2017) to $275,000 (for 2018).  The $275,000 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 $27,500 ($275,000 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 $38,500 ($275,000 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 $400,000 (for 2017) to $405,000 (for 2018).  However, participants should note their maximum annual compensation limit will be $392,857.14, since the $392,857.14 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $55,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax Sheltered Annuities) increases to $18,500 for 2018 (up from $18,000 in 2017).  The age 50 or older catch-up provision remains unchanged at $6,000 for 2018.  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 ($18,500 for 2018) 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.

 

DH:NTR:ckw

Printable version of 18-P-008

18-P-009 Key Payroll Processing Dates in November 2017 (October 30, 2017)

Informational Circular No.: 18-P-009

Supersedes Informational Circular No: 17-P-008

Effective Date: November  2017

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 2017 holidays

 

Friday, November 10, 2017 (Veterans' Day), Thursday, November 23, 2017 and Friday, November 24, 2017 (Thanksgiving Holiday) are designated as officially observed 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 30, 2017

The Run A off-cycle for the period ending October 21, 2017 will be processed October 30, 2017.  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 3, 2017.

Regents’ on-cycle files for the period ending October 21, 2017 will also be processed on this date.

Tuesday, October 31, 2017

Regents’ Run B off-cycle payroll files for the period ending October 21, 2017 must be received by the Department of Administration by 4:00 PM on October 31, 2017 in order to be processed on Wednesday, November 1, 2017.

Wednesday, November 1, 2017

The Run B off-cycle for the period ending October 21, 2017 will be processed November 1, 2017.  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 6, 2017.

Friday, November 3, 2017

Payday for the payroll period ending October 21, 2017.

First Opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 4, 2017 submitted to the Department of Administration for processing by 5:00 PM on November 3, 2017. (These files would normally be due on Monday, November 6, 2017). Last opportunity to submit files will be noon on Monday, November 6, 2017.

Regents’ Run C off-cycle payroll files for the period ending October 21, 2017 must be received by the Department of Administration by 4:00 PM on November 3, 2017.

Monday, November 6, 2017
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 4, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 6, 2017.

NOTE: Terminations and Retirements must be entered by 6:00 PM on November 6, 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 November 4, 2017 will be created on Monday, November 6, 2017.  (Paysheets would normally be created on Tuesday, November 7, 2017.)  For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 6, 2017 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 4, 2017 will also occur November 6, 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 November 6, 2017 in order for a paycheck record to be created.

The Run C off-cycle for the period ending October 21, 2017 will be processed November 6, 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 November 9, 2017.

Tuesday, November 7, 2017

The second on-cycle preliminary pay calculation for the period ending November 4, 2017 will occur November 7, 2017.

Regent file sets for the period ending November 4, 2017 on-cycle and ‘A’ off-cycle may be submitted.

Wednesday, November 8, 2017

The third on-cycle preliminary pay calculation for the period ending November 4, 2017 will occur November 8, 2017.

Regents’ on-cycle payroll files for the period ending November 4, 2017 must be received by the Department of Administration by 4:00 PM on November 8, 2017. Regent file sets for the period ending November 4, 2017 ‘A’ off-cycle may be submitted.

Thursday, November 9, 2017
Final pay confirmation for the on-cycle payroll for the period ending November 4, 2017 will occur November 9, 2017.  All employees’ payable time must be approved, by 6:00 PM on November 9, 2017 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 9, 2017 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 4, 2017 must be received by the Department of Administration by 4:00 PM on November 9, 2017.

 

Friday, November 10, 2017
Veterans Day Holiday
No batch jobs processing

Monday, November 13, 2017
The Run A off-cycle for the period ending November 4, 2017 will be processed November 13, 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 November 17, 2017.

The Regents’ on-cycle and Run A off-cycle payroll files for the period ending November 4, 2017 will also be processed on this date.

Tuesday, November 14, 2017
Regents’ Run B off-cycle payroll files for the period ending November 4, 2017 must be received by the Department of Administration by 4:00 PM on November 14, 2017.

Wednesday, November 15, 2017
The Run B off-cycle for the period ending November 4, 2017 will be processed November 15, 2017.  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 20, 2017.

Friday, November 17, 2017
Payday for the payroll period ending November 4, 2017.

First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending November 18, 2017 submitted to the Department of Administration for processing by 5:00 PM on November 17, 2017.  (These files would normally be due Monday, November 20, 2017.)  Last opportunity to submit files will be noon on Monday, November 20, 2017.

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

Monday, November 20, 2017
Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 18, 2017 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on November 20, 2017.

NOTE: Terminations and Retirements must be entered by 6:00 PM on November 20, 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 November 18, 2017 will be created on Monday, November 20, 2017. (Paysheets would normally be created on Tuesday, November 21, 2017.)  For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 20, 2017 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 18, 2017 will also occur November 20, 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, 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 18, 2017.

The Run C off-cycle for the period ending November 4, 2017 will be processed November 20, 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 November 27, 2017. (These checks would normally be dated Thursday, November 23, 2017)

Tuesday, November 21, 2017
The second on-cycle preliminary pay calculation for the period ending November 18, 2017 will occur November 21, 2017.

Regents’ on-cycle files for the period ending November 18, 2017 must be received by the Department of Administration by 4:00 PM on November 21, 2017.

Wednesday, November 22, 2017

Final pay confirmation for the on-cycle payroll for the period ending November 18, 2017 will occur November 22, 2017.  For SHARP agencies, all employees’ payable time must be approved, by 6:00 PM on November 22, 2017 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 6:00 PM on November 22, 2017 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 18, 2017 must be received by the Department of Administration by 4:00 PM on November 22, 2017.

Thursday, November 23, 2017

Thanksgiving Holiday
No batch jobs scheduled.

Friday, November 24, 2017

Thanksgiving Holiday
No batch jobs scheduled.

Beginning Monday, November 27, 2017 batch jobs will return to the normal payroll schedule. Attached is a partial calendar for the month of November 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.

 

DH:NTR:abe

Attachment
Printable Version of 18-P-009

18-P-010 December 2017 Payroll Processing (November 7, 2017)

Informational Circular No.: 18-P-010

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 2017 Payroll Processing and Updated December Processing Calendar

 

As 2017 calendar year-end approaches, the Office of the Chief Financial Officer is making preparations for the issuance of calendar year 2017 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2017 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2018 balances; a corrected W-2 (Form W-2C) for 2017 will not be issued for the employee involved.

FINAL 2017 PAYCHECK
The final on-cycle paychecks for calendar year 2017 will be issued December 29, 2017.  Payroll transactions for the December 29, 2017 on-cycle paychecks will be posted to SMART on Wednesday night, December 27, 2017.  The final off-cycle paychecks for calendar year 2017 will be issued on December 29, 2017 (generated from the off-cycle processed on December 26, 2017).

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS
SHARP agencies have until 6:00 p.m. on December 26, 2017 to enter paycheck adjustment requests for any 2017 paychecks.  Adjustments processed in the December 26, 2017 off-cycle payroll will be reflected on the employee’s 2017 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 2017 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 13, 2017.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 13, 2017 on or before the December 26, 2017 off-cycle.  However, if a large volume of DA-180 forms is received on the December 13, 2017 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2017 business.  Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.

Adjustment requests entered after December 26, 2017 which are adjusting paychecks issued prior to January 1, 2018 will not result in a W-2C; the adjustment will update the employee’s 2018 payroll balances regardless of the reason the paycheck is being adjusted.  Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 26, 2017 will update the employee’s 2018 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES
Regent on-cycle files for the pay period ending December 16, 2017, paid December 29, 2017 are due to the Department of Administration by 4:00 p.m. on December 20, 2017.

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES
2017 Paycheck Reversals
Regent Institutions must submit all transmittals for 2017 paycheck reversals by 4:00 p.m. on Friday, December 22, 2017 in order to update the employee’s 2017 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 2018 payroll balances regardless of the paycheck issue date of the paycheck being reversed.  Reversals for paychecks issued prior to January 1, 2018 submitted after 4:00 p.m. on December 22, 2017 should default the pay adjust check date to January 1, 2018.

2017 Adjustments and Supplementals
In order to update employee balances for 2017, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Friday, December 22, 2017.  The Run A off-cycle for the pay period ending December 16, 2017 generated on the night of Tuesday, December 26, 2017 will have a check issue date of December 29, 2017; all activity for this off-cycle will be reflected in the employees’ 2017 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 2017 date.

2018 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2018, any adjustments or supplementals submitted after 4:00 p.m. on Friday, December 22, 2017, will be considered to be 2018 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2018 business, the employee’s 2018 balances will be updated.  These files should contain a ‘C’ indicating current year business and the pay adjust check date should be a 2018 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2018, agencies should default the pay adjust check date to January 1, 2018).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2018, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2018 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 2018 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 22, 2017 deadline for the December 26, 2017 Run A’s off-cycle payroll will not be processed until the April 16, 2018 off-cycle payroll.  The deadline for submitting payroll interface files for the April 16, 2018 off-cycle is 4:00 p.m. on Friday, April 13, 2018.

GENERAL REMINDERS
United Way and Community Health Charities
The deduction END date on the general deduction page for 2017 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 17, 2017 and December 30, 2017 in order for the last 2017 deduction to be taken on the paycheck issued December 29, 2017 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 2018, agencies can enter a new row effective-dated between December 17, 2017 and December 30, 2017 in order for the first deduction for United Way or Community Health Charities for 2018 to be taken on the January 12, 2018 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 16, 2018 should be entered.  Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2018.

A batch process will run the night of December 29, 2017 to establish the fee portion (deduction code UTFXXX) of the 2018 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 2018.  This process will reduce the 2018 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 2018 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 2, 2018 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.  Please note that if agencies need to enter any 2018 United Way/Community Health Charities deductions after December 29, 2017, 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, 2017 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, 2017 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 2018.  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 2018 W-4s.  Employees should submit new paper W-4s by December 22, 2017 to allow adequate time for processing.

Agency personnel have until 6:00 p.m. on December 29, 2017 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 2018.

The KPAY320 will be processed the evening of December 29, 2017.  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, 2018 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2018 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions.

For any 2018 paper W-4s (for employees claiming exemption from withholding) received between December 29, 2017 and January 2, 2018, agency personnel will need to enter the data with a January 2, 2018 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2018 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 2018 K-4’s.

The 2018 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 29, 2017 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 2018.  The new tax data row will be dated January 1, 2018.  The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2018 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 2018 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. Some deduction balancing adjustments can be processed by the State Employee Health Plan (SEHP) on the second pay date of the month when applicable.

-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 26, 2017.  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 2017 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year.  Agencies should collect any outstanding advances for payroll periods ending before December 16, 2017 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, 2017 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 27, 2017.  Please remember that these forms are only for those arrearages that are actively being collected.

On December 29, 2017, 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 2, 2018 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 2, 2018 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 22, 2017.  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 4, 2018 and January 8, 2018.  Electronic W-2 forms through Employee Self Service will be available on or before January 8, 2018.  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, 2018.  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 2017 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 18-P-010

DH:NTR:abe

18-P-011 Change in Organization Dues Deduction for Public Service Employees Local Union 1290 P.E. (November 22, 2017)

Informational Circular No.: 18-P-011

Supersedes Informational Circular No: 17-P-011

Effective Date: Payroll Period Ending December 30, 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 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 $17.14 to $17.60 per biweekly payroll period.  The new rate will become effective with the payroll period beginning December 17, 2017 and ending December 30, 2017, paid January 12, 2018.

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 $17.08 to $17.54 and the fee (ORF133) will remain at $0.06 (for a total deduction of $17.60 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.

 

DH:NTR:ckw

Printable version of 18-P-011

18-P-012 Change in Social Security Base Rate (November 28, 2017)

Informational Circular No.: 18-P-012

Supersedes Informational Circular No: 18-P-007

Effective Date: January 1, 2018

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 Lowered by the SSA to $128,400 from previously announced wage base effective January 1, 2018

 

The Social Security wage base for OASDI was lowered to $128,400 for calendar year 2018, from $128,700 that the Social Security Administration had previously announced in October 2017.  This is a $1,200 increase from the wage base of calendar year 2017 of $127,200.  The OASDI tax rate for 2018 will remain at 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2018 will be $7,960.80, lowered from the original employee portion of $7,979.40. 

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:ckw

Printable version of 18-P-012

18-P-013 Employee Taxability of State-Owned or Leased Vehicles (December 19, 2017)

Informational Circular No.: 18-P-013

Supersedes Informational Circular No: 17-P-015

Effective Date: January 1, 2018

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 2018

 

The Internal Revenue Service (IRS) has announced the standard mileage rate will increase to 54.5 cents beginning January 1, 2018 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 54.5 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 2018 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $15,600 for a car (down from $15,900 in 2017), and $17,600 (down from $17,800 in 2017) 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).

 

DH:NTR:ckw

Printable Version of 18-P-013

18-P-014 Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2 (December 22, 2017)

Informational Circular No.: 18-P-014

Supersedes Informational Circular No: 14-P-021

Effective Date: Payroll Period Ending December 30, 2017

Contact Name: Amanda Entress

Ph: (785) 296-3886

Email: amanda.entress@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Organization Dues Change for ORG060

 

The organization dues for members of Fraternal Order of Police, Lawrence Lodge #2, will change from $12.96 to $13.58 per biweekly payroll period.  The new rate will become effective with the payroll period beginning December 17, 2017 and ending December 30, 2017, paid January 12, 2018.

The amounts listed above include the deduction amount (ORG060 deduction code) and the $0.06 service fee (ORF060 deduction code) added together. The new rate for deduction code ORG060 will increase from $12.90 to $13.52 and the fee (ORF060) will remain at $.06 (for a total deduction of $13.58 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 18-P-014
DH:NTR:ckw

18-P-015 Working After Retirement Changes for 2018 (December 22, 2017)

Informational Circular No.: 18-P-015

Effective Date: January 1, 2018

Contact Name: Earl Brynds

Ph: (785) 296-5376

Email: earl.brynds@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Working After Retirement Membership Code and Rule Changes Effective January 1, 2018

 

New rules for retirees ‘Working After Retirement’ go into effect on January 1, 2018.  For payroll purposes this would be effective for the pay period of December 17, 2017 to December 30, 2017, paid on January 12, 2018.  The new requirements will result in necessary changes to some of the previous SHARP KPERS benefit plan codes associated with payroll deductions for those employees ‘Working After Retirement.’

Details on which current KPERS benefit plan codes will have a new description for 2018 are listed below.

 

PLAN

TYPE

BENEFIT PLAN CODE

NEW DESCRIPTION

SHORT DESCRIPTION

70

AC

Working After Ret EEs 1/1/2018

KPERS AC

70

ANC

Non-Covered

KPERS ANC

70

AXD

Working After Ret 2018 > $25,000

KPERS AXD

 

Current codes AU (Retired Nurses) and ALE (KLETC Instructors) will continue to be used with the current descriptions.  Current codes PR, AW, AD, AB and ABD will be discontinued effective January 1, 2018.

KPERS recently sent out a reminder to agencies to update employee membership codes in the KPERS system.  Agencies may also need to update SHARP effective December 17, 2017 if you have a retiree that is affected by the new rules.  Going forward, employees who are in non-covered positions will need to be enrolled in the ‘ANC’ KPERS benefit plan code.  The definition of a covered vs non-covered position as provided by KPERS is below.

Covered vs Non-Covered

  • A non-covered position is seasonal/temporary or requires less than 1,000 hours of work per year.
  • A covered position is not seasonal/temporary and requires at least 1,000 hours of work per year.

Retirees working in a covered position should be enrolled in the ‘AC’ KPERS benefit plan code (statutory rate) effective December 17, 2017.  In addition, once the employee has earned $25,000 they need to be enrolled in the ‘AXD’ KPERS benefit plan code (30% rate), effective with the pay period immediately following the period in which the employee crosses the $25,000 earnings threshold, for the remainder of the calendar year.  Agencies are responsible for tracking the $25,000 employee earnings limit and subsequently making the necessary benefit plan code changes in SHARP when the earnings limit has been met.

The attachment to this informational circular is the amended Attachment A to Informational Circular 17-P-024 issued previously on June 21, 2017.  This amendment deletes the Working After Retirement benefit plan codes no longer in use for 2018.

Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.

DH:NTR:ewb

Attachment
Printable Version of 18-P-015

18-P-016 W-2 Wage and Tax Statements for Calendar Year 2017 (January 5, 2018)

Informational Circular No.: 18-P-016

Supersedes Informational Circular No: 17-P-017

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 2017 W-2 Statements

 

The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2017 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 5, 2018.  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 4, 2018. 

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 2017 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 2017 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 2017.  The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s 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, each retired/separated employee will have his/her consent reset 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 2017 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, 2018.  At that time, they will be destroyed.

In cases where the 2017 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 2012 through 2017, 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 (2017, 2016, 2015, 2014, 2013, or 2012) the reissued W-2 is needed.  Duplicate W-2’s for 2012- 2016 are currently available, and duplicate W-2’s for 2017 will be available starting on Wednesday, February 7, 2018.

The Office of the Chief Financial Officer, Statewide Payroll 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 Statewide Payroll 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 Statewide Payroll.  Agencies are requested to submit one blanket request for duplicate 2017 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 2017 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 Statewide Payroll 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 29, 2017 are included in the 2017 W-2 amounts.   

Attachment A
Attachment B
Printable version of 18-P-016

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18-P-017 2018 W-2 Production Report Schedule (January 5, 2018)

Informational Circular No.: 18-P-017

Supersedes Informational Circular No: 17-P-018

Effective Date: Immediately

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: carmen.waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: 2018 W-2 Production Report Schedule 

 

In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 2018 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 2018 W-2 production reports are scheduled to be generated:

Friday, March 23, 2018
Friday, April 20, 2018
Friday, May 18, 2018
Friday, June 15, 2018
Friday, July 13, 2018
Friday, August 10, 2018
Friday, September 7, 2018
Friday, October 5, 2018
Friday, November 2, 2018
Friday, November 16, 2018
Friday, November 30, 2018
Monday, December 10, 2018
Monday, December 17, 2018
Wednesday, December 26, 2018
Monday, December 31, 2018
Thursday, January 3, 2019 - Tentative Final Load

 

Agencies should anticipate finding copies of the KTXPR55 report in their agency mailbox on the MVS on the first working day following the above listed scheduled dates.  No action is required by the agency on the KTXPR55.  Once the W-2’s for 2018 are complete, a final KTXPR55 report will be generated for each agency’s information and review.

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 18-P-017

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18-P-018 2018 Percentage Method Tables for Federal Tax Withholding (January 12, 2018)

Informational Circular No.: 18-P-018

Supersedes Informational Circular No: 17-P-014

Effective Date: February 9, 2018

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 February 9, 2018 

 

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2018 per IRS Notice 1036.  The IRS has directed that employers should implement the 2018 withholding rates as soon as possible but not later than February 15, 2018. Therefore, the attached tables will be used in SHARP for computing federal tax withholding for wages paid on or after February 9, 2018.  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 has increased to $4,150 for 2018.

Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2018 has increased to $7,850.  In addition, Regents should check IRS Publication 1494 for any changed amounts when computing tax levies for garnishments.  Publication 1494 for 2018 is currently available on the IRS website at https://www.irs.gov/pub/irs-pdf/p1494.pdf.  Regents should be aware that the withholding on supplemental wages rate has decreased to 22% for 2018.

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.  

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2018 W-4s.  The 2018 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.

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

2017 must file a new 8233 form for calendar year 2018 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 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 18-P-018

18-P-019 Employee Moving Expense Reimbursements (March 26, 2018)

Informational Circular No.: 18-P-019

Effective Date: January 1, 2018

Contact Name: Nancy Ruoff Statewide Payroll and Accounting, Jackie Craine Statewide Policy

Ph: (785) 296-2853, (785) 296-2934

Email: Nancy.Ruoff@ks.gov, Jackie.Craine@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Changes to Taxability of Moving Expense Reimbursements

 

This Informational Circular (IC) is issued to announce the following changes to the process for the reimbursement of qualified moving expenses to state employees:

The federal Tax Cuts and Job Act (H.R.1) enacted into law on December 22, 2017 amends Internal Revenue Code – Title 26, § 132(g) suspending the existing exclusion for qualified moving expense reimbursements from gross income.

Effective January 1, 2018 all qualified moving expense reimbursements are subject to taxes and are to be reimbursed directly to the employee through payroll (SHARP) using the Moving Expense Taxable (MVT) earnings code.

As authorized by KSA 75-3225(d), the Secretary of Administration intends to amend KAR 1-16-2b to require that moving expenses be reimbursed directly to the employee and to no longer allow payments to a commercial carrier. Therefore, moving related direct billed (commercial carrier, lodging, or airfare) payments are no longer authorized to be paid via the SMART Accounts Payable module or agency procurement card. Nor should any moving related reimbursements be paid to the employee through the SMART Travel & Expense module due to the taxable fringe benefit reporting requirements.

All moving expenses are to be paid after the move has occurred and all the necessary documents and receipts have been submitted by the employee for reimbursement. As authorized by KSA 75-3225, per KAR 1-16-2b(b)(1), the amount to be paid for moving household and personal effects may not in any case exceed the amount of the actual reimbursable moving expenses verified by receipts and bill of lading or the amount of moving expenses for moving twelve thousand (12,000) pounds of household goods by commercial carrier, whichever is the lesser amount. The agency is required to determine the actual amount of the moving expense to be reimbursed to the employee and notify the appropriate agency HR/Payroll staff of the employee and the amount to be added to the employee’s timesheet as MVT earnings. Agency HR/Payroll staff should include the reimbursement on the employee’s timesheet in the pay period following submission of the documentation.

As specified in KSA 76-727(b)(2), applicable to state educational institutions, the amount of the reimbursement cannot exceed the amount of the actual moving expenses verified by receipts or the amount of moving expenses for moving 12,000 pounds of household goods, whichever is the lesser amount.

Documentation for all moving expense reimbursements paid through SHARP with the MVT code should be maintained at the agency.

Approval to Reimburse Qualified Moving Expenses

The approval process for both in-state and out-of-state authorizations are not impacted by the taxability of the moving expense reimbursements.

As required by KSA 75-3225(a), an agreement must be signed by the agency head prior to authorizing the reimbursement of moving expenses to an employee using Form DA-22, Agreement for Reimbursement of Moving Expenses.

If an applicant is from out-of-state; prior approval of the Secretary of Administration and the Governor should be obtained using Form DA-29, Request to Pay Expenses of Out of State to reimburse moving expenses. (KSA 76-727 (3c) exempts state educational institutions and the Board of Regents from obtaining prior approval of the governor).

Policy Manual 3,607 - Employee Moving Expense Reimbursement has been updated and will be available on or before March 30th on the Department of Administration website.

Policy Manual

 

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Printable Version of 18-P-019

18-P-020 Payroll/SMART Processing Date Changes in June 2018 (May 1, 2018)

Informational Circular No.: 18-P-020

Effective Date: June 2018

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 2018 Fiscal Year End

 

Due to the upcoming 2018 Fiscal Year End in SMART and the payroll pay check date occurring close to the last day of the fiscal year in SHARP, June 29, 2018, it is necessary to make a few changes to the normal payroll/SMART processing schedules to accommodate the early closing of SMART on Thursday, June 28, 2018.

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 20, 2018
Regents’ on-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 20, 2018.   (These files would normally be due on Thursday, June 21, 2018).

Regent file sets for the period ending June 16, 2018 ‘A’ off-cycle may be submitted.

SHARP on-cycle payroll pre-calculation for the period ending June 16, 2018 will be processed as normal on this date.

Thursday, June 21, 2018
Regents’ on-cycle files for the period ending June 16, 2018 will be processed on this date. (The Regent’ on-cycle files would normally be processed on Monday, June 25, 2018).

SHARP on-cycle payroll pre-calculation for the period ending June 16, 2018 will be processed as normal on this date.

Friday, June 22, 2018
Regents’ on-cycle payroll journals for the period ending June 16, 2018 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 27, 2018).

Regents’ Run A off-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 22, 2018.  NOTE: If necessary, Regents can work directly with Statewide Payroll to submit off-cycle ‘A’ payroll files for approval on Monday, June 25, 2018, but all files must be approved no later than 3pm on Monday, June 25, 2018 for processing in the ‘A’ off-cycle.

SHARP on-cycle final payroll calculation for the period ending June 16, 2018 will be processed as normal on this date.

Monday, June 25, 2018
SHARP on-cycle payroll journals for the period ending June 16, 2018 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 27, 2018).

NOTE: SHARP and Regents’ off-cycle ‘A’ payroll for the period ending June 16, 2018 will be processed as normal on June 25, 2018.  This will be the last payroll cycle for fiscal year 2018.

Tuesday, June 26, 2018
Regents’ and SHARP off-cycle ‘A’ payroll journals for the period ending June 16, 2018 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 27, 2018).

Regents’ Run B off-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 26, 2018.

Wednesday, June 27, 2018
SHARP and Regents’ off-cycle ‘B’ payroll for the period ending June 16, 2018 will be processed as normal in SHARP on June 27, 2018.  This will be the first payroll cycle for fiscal year 2019.

Thursday, June 28, 2018 
SMART closed to Agencies.

Friday, June 29, 2018
SMART closed to Agencies.

Payday for the payroll period ending June 16, 2018.

First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending June 30, 2018 submitted to the Department of Administration for processing by 5:00 PM on June 29, 2018.  (These files would normally be due Monday, July 2, 2018.)  Last opportunity to submit files will be noon on Monday, July 2, 2018.

Regents’ Run C off-cycle payroll files for the period ending June 16, 2018 must be received by the Department of Administration by 4:00 PM on June 29, 2018.

Monday, July 2, 2018
SMART open to Agencies.

Regents’ and SHARP off-cycle ‘B’ payroll journals for the period ending June 16, 2018 (off-cycle ‘B’ payroll was processed in SHARP on Wednesday, June 27, 2018) 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 29, 2018).

SHARP and Regents’ off-cycle ‘C’ payroll for the period ending June 16, 2018 will be processed as normal on July 2, 2018.

NOTE: Due to the July 4, 2018 holiday, paysheets for the SHARP on-cycle payroll for the period ending June 30, 2018 will be created on Monday, July 2, 2018.  (Paysheets would normally be created on Tuesday, July 3, 2018.)

Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending June 30, 2018 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on July 2, 2018.

Terminations and Retirements must be entered by 6:00 PM on July 2, 2018 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 June 30, 2018 will also occur July 2, 2018. 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 2, 2018 in order for a paycheck record to be created.

On-Cycle Revised
Off-Cycle Revised
Printable Version of 18-P-020

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18-P-021 Housing, Food Service and Other Employee Maintenance (May 8, 2018)

Informational Circular No.: 18-P-021

Supersedes Informational Circular No: 17-P-023

Effective Date: July 1, 2018

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 2019 will require entry into the SHARP system at Payroll for North America>Employee Pay Data USA> Create Additional Pay for fringe benefit income.  FY2019 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday July 2, 2018 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 30, 2018 (paychecks dated July 13, 2018).

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
Printable version of 18-P-021

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18-P-022 Fiscal Year End Payroll Processing for FY 2018

Informational Circular No.: 18-P-022

Supersedes Informational Circular No: 17-P-022

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 2019 payroll contribution rates will be issued as soon as the information becomes available. There is also informational circular 18-P-020 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 16, 2018 will use fiscal year 2018 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 16, 2018 will use fiscal year 2019 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 25, 2018, paid June 29, 2018) for the pay period ending June 16, 2018 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2018 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 24, 2018 and should be completed by Monday morning, June 25, 2018.  In that process, a new row will be added to the Department Budget tables with an effective date of June 17, 2018 (beginning date of the first on-cycle payroll charged to FY2019).  The Budget End Date will be June 15, 2019. 

Agencies should send Combination Code files or any Department Budget Table files for FY19 changes into Payroll Services by Friday, June 22, 2018.  These files will be loaded into SHARP beginning Tuesday, June 26, 2018. Agencies should not enter any rows with an effective date greater than or equal to June 17, 2018 until June 26, 2018. When adding new rows for FY2019, agencies should verify that June 15, 2019 was used as the Budget End Date for FY2019.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Tuesday June 26, 2018 after the ‘A’ off-cycle process has been completed for the June 16, 2018 pay period end date.  A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 26.  Agencies are encouraged to complete all FY18 payroll adjustments on or before the ‘A’ off-cycle which processes on Monday night, June 25, 2018, since the ‘A’ off-cycle is the last payroll cycle in SHARP for FY18.    Otherwise, any adjustments processed in the ‘B’ off-cycle on Wednesday, June 27, 2018 will be included with FY19 transactions and will not be included on the KPAYGL5C file until it is run again on Tuesday night, July 3, 2018.  

GHI Adjustments

June is a popular retirement month.  Many employees will retire by June 16th impacting the amount of GHI for which the employee should be charged for the month of June.  In order to avoid processing a refund, MAP should be updated with an employee’s termination date prior to the paycheck for the Pay Period Ending 6/2/2018, if at all possible.  This will allow the correct calculation of insurance for the employee in the on-cycle processed for the 6/2/18 pped.  The paycheck for pped 6/16/18 is the 3rd check of the month so no insurance deductions or refunds will be processed on that paycheck.   If you have any questions or concerns, contact Kansas Department of Health & Environment, Division of Health Care Finance, State Employee Health Plan Membership Services by Email: SEHPMembership@kdheks.gov or Phone: 785-296-3226 about event maintenance that may affect claims processing for any employee.

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 Job Data including 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 18-P-022

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18-P-023 Fiscal Year 2019 Payroll Contribution Rates (June 26, 2018)

Informational Circular No.: 18-P-023

Supersedes Informational Circular No: 17-P-024

Effective Date: Pay Period Beginning June 17, 2018; Ending June 30, 2018; Paid July 13, 2018

Contact Name: Carmen Waters

Ph: (785) 296-7059

Email: Carmen.Waters@ks.gov

Approval:    Nancy Ruoff (Original Signature on File)
Summary: Fiscal Year 2019-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 2019.  The fiscal year 2019 rates will become effective with the on-cycle payroll period beginning June 17, 2018, ending June 30, 2018 and paid July 13, 2018.  The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2018.

For Fiscal Year 2019, the employer’s contribution to KPERS Death and Disability Insurance 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 25, 2016 and September 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.

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 18-P-023

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