FY 2020

Pursuant to the Tax Cuts and Jobs Act of 2017, employers must include moving expense reimbursements in employees’ wages.  The new tax law suspends the exclusion for qualified moving expense reimbursements with two exceptions:

Exception 1:  Members of the U.S. Armed Forces can still exclude qualified moving expense reimbursements from their income if:

• They are active duty
• They move pursuant to a military order and incident to a permanent change of station
• The move expenses would qualify as a deduction if the employee didn't get a reimbursement

Exception 2: Employers may exclude from wages any 2018 reimbursements to or payments on behalf of employees for moving expenses incurred for a move that took place prior to January 1, 2018, and which would have been deductible had they been paid prior to that date.

As a result of this tax law change, KPERS is advising that the employee moving expense reimbursements will now be subject to KPERS.  Any applicable employee moving expense reimbursements processed for payments on and after July 1, 2019 using earnings codes MVT and MVG should now be subject to KPERS calculations.

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above.

NTR:ewb
Printable version of 20-P-001

Washington State Senate Bill 5975 enacted in July 2017 establishes a Paid Family and Medical Leave (PFML) program in the State of Washington funded by premium payments comprised of both employee payroll deductions and employer contributions.  Family leave represents 1/3 of the total premium, and Medical Leave represents 2/3 of the premium.  Detailed information on the program is available on the State of Washington website at https://paidleave.wa.gov/.

For 2019 the total premium is 0.4% of gross wages, up to the annual Social Security taxable wage maximum ($132,900 in 2019).  The total premium is split between an employee payroll deduction (63.33%) and employer contribution (36.67%).  The State of Kansas does not currently meet the employment threshold for the employer contribution and is therefore only required to withhold the employee premium payroll deduction at this time.

To implement the Washington Paid Family and Medical Leave payroll deduction, 4 new tax classes will be added to SHARP. The PFML tax classes will be effective for the payroll period beginning September 8, 2019, ending September 21, 2019, paid on October 4, 2019.

The PFML tax classes are:

In addition to the implementation of the new tax classes, a process for submitting the employee hours in accordance with the reporting requirements specified in the program documentation will be developed and provided to the Regent institutions in a separate communication.

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above. Regent institutions should also submit test payroll file sets to Statewide Payroll for approval by no later than August 31, 2019.

NTR:abe
Printable version of 20-P-002

The District of Columbia Universal Paid Leave Act (the Act) of 2015 became effective on April 7, 2017. The Act established the Paid Family Leave program for employees living and working in the District of Columbia that is funded wholly by employer contributions. Detailed information on the program is available on the District of Columbia website at https://dcpaidfamilyleave.dc.gov/.

For 2019 the employer rate is 0.62% of gross wages and will be effective for the pay period beginning September 8, ending September 21, 2019, paid on October 4, 2019. The following tax class should be used in calculating and reporting the District of Columbia paid family leave employer contributions:

The Office of the Chief Financial Officer, Payroll Systems Team is responsible for making this change in the SHARP system.  Regent institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above. Regent institutions should also submit test payroll file sets to Statewide Payroll for approval by no later than August 31, 2019.

NTR:abe
Printable version of 20-P-003

Per notice by the Teamsters Local Union #696, additional deduction codes will be added for membership dues deductions for employees at the Juvenile Justice Authority. The existing deduction codes for Hourly Pay Rate ranges below $23.34 remain unchanged. Currently each organization dues deduction must be entered into SHARP as two separate deduction codes, one for the deduction (ORGXXX) and a corresponding (ORFXXX) row for the $.06 per deduction fee. These bi-weekly deductions of organization dues, effective August 25, 2019, are based on new hourly pay rate ranges as follows:

As a reminder, this organization is only available for membership to employees who work in the specific positions at the Juvenile Justice Authority.

The Office of the Chief Financial Officer, Payroll Systems Team, will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. 

NTR:abe
Printable Version of 20-P-004

Per payroll informational circular 01-P-015 the State of Kansas established a Parking Compensation Reduction Program (PCRP) pursuant to Section 132 of the IRS code and K.S.A. 75-5535 and began offering pre-tax parking by payroll deduction in January 2001. As detailed in the circular, the savings from reduced employer FICA contributions were captured as an employer (ER) parking fee (associated with each pre-tax employee deduction) and distributed between the Department of Administration and Board of Regent institutions to offset the administrative costs of the program.

Since the initial implementation, significant changes have occurred in SOK parking and efficiencies have been gained in the payroll and administrative processes associated with the PCRP. As a result, the Department of Administration is eliminating the employer paid administrative parking fee effective with the pay period beginning September 8, 2019, ending September 21, 2019, paid on October 4, 2019.

The Office of the Chief Financial Officer, Payroll Systems Team, is responsible for making this change in the SHARP system. Regent institutions are responsible for ensuring this change is reflected in their individual systems and is effective with the payroll period noted above.

NTR:abe
Printable Version of 20-P-005

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 8, 2019 and ending September 21, 2019, paid October 4, 2019 as follows:

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.

NTR:ckw

Printable Version of  20-P-006 

The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $31.61 to $32.11 per biweekly payroll period.  The new rate will become effective with the payroll period beginning August 11, 2019 and ending August 24, 2019, paid September 6, 2019.

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 $31.55 to $32.05 and the fee (ORF030) will remain at $.06 (for a total deduction of $32.11 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.

NTR:abe
Printable Version of 20-P-007

As a result of the implementation of state paid family medical leave programs, a new account code has been added to SMART to use for employer contribution expenditure tracking. The following account code was made effective in SMART as of January 1, 2019 and is eligible to be used starting immediately.

This account code is to be used to record employer contributions for state paid family and medical leave programs that are being implemented under new legislation in various states. At this time, the State of Kansas is subject to contributions for employees in the State of Washington and the District of Columbia. Other states may implement similar programs in the future.

NTR:abe
Printable Version of 20-P-008

The Health Care Commission (HCC) has elected to change the coverage end date for terminating members from the last day of employment to the last day of the month in which the member terminates employment. This change in coverage end date will affect all State Employee Health Plan (SEHP) benefits in which a member is enrolled, including Health Savings Accounts and Flexible Spending Accounts.

Per SEHP, effective October 1, 2019, if a member terminates employment on the 1^st of the month, benefits also terminate on the 1^st of the month. The SEHP Membership Administration Portal (MAP) will calculate the appropriate premiums for that day of coverage. HSA & FSA contributions will be sent and should be taken on the first check of the month for a member terminating on the 1^st of the month. If a member terminates on the 2^nd of the month or later, benefits will terminate at the end of the month. The HCC’s expectation is that member deductions on the second check of a month will be processed as sent on the MAP benefit election return file (BERF).

As part of this change, SEHP will be changing the timing of vision, voluntary supplemental insurance, and Long-Term Care (LTC) payroll deductions from once a month to twice a month. Starting with the payroll period beginning September 8, 2019 and ending September 21, 2019, paid on October 4, 2019 the premiums for vision, voluntary supplemental insurance, and LTC will be deducted semi-monthly on the first two paychecks of the month.

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 by the payroll period noted above.

Questions regarding the system set-up/interfaces for these payroll deductions can be directed to Earl Brynds (Earl.Brynds@ks.gov or 785.296.5376).

Questions regarding the vision benefit should be directed to Pete Nagurny (pete.nagurny@ks.gov or 785.296.0185).

NTR:abe
Printable Version of 20-P-009

Kansas law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). This informational circular is being issued to clarify information previously issued and to assist agencies in properly establishing UCI tax coverage for employees.

Attached is a listing of SHARP job codes that are exempt from UCI per state statutes. This list is not intended to be all-inclusive and addresses those exemptions most applicable to State of Kansas employees.

SHARP and Regent agency personnel are responsible for ensuring that employee tax data is accurate.  It is strongly recommended that agencies ensure all individuals responsible for establishing employee tax data review and understand this information and use the attached listing of exempt UCI jobcodes for reference when entering employee tax data.  If agencies have questions regarding UCI exemptions please contact Statewide Payroll.

An employee is subject to UCI and, for SHARP agencies, the Employee Tax Data/State Tax Data 2 page in SHARP should have the ‘Exempt From SUT’ checkbox clicked ‘OFF’ if either of the following exists:

• The employee is in a position/jobcode that is subject to UCI per state statute.
• The employee is concurrently employed in more than one position/jobcode, and at least one of those positions/jobcodes is subject to UCI.  In this case, UCI tax must be calculated and paid on all wages for the employee, including positions that are not normally subject to UCI such as board member pay.

An employee is exempt from UCI and, for SHARP agencies, the Employee Tax Data/State Tax Data 2 page in SHARP should have the ‘Exempt From SUT’ checkbox clicked ‘ON’ if the following exists:

• The employee is in a position/jobcode that is exempt from UCI per state statute.  See attached reference listing of current SHARP job codes and other statutorily exempt types of employment that are exempt from UCI.

Statewide Payroll will be implementing a new payroll error message for SHARP that will turn off the employee’s paysheet if the employee has one of the exempt job codes but is not set up as exempt from UCI.

NTR:abe
Exempt Job Codes
Printable Version of 20-P-010

Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2020

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2020.  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 5:30 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.

NTR:abe
2020 On-Cycle
2020 Off-Cycle
Printable Version 20-P-011

Summary: Addition of DA-184 Authorization for Direct Deposit of Employee Pay and/or Travel and Expense form to Employee Self Service

As a result of the continued increase in reported fraudulent requests to update direct deposit information, the DA-184 Authorization for Direct Deposit of Employee Pay and/or Employee Travel and Expense form has been updated and moved to Employee Self Service (ESS).  This change limits access to the DA-184 form to active State of Kansas employees using the secure ESS portal. 

Effective immediately, the Rev. 09-2019 version of the form is the only authorized form that may be accepted by an agency to authorize changes to employee direct deposit information. The revised form reflects updates to the required agency certification section and a new revision date of 09-2019.  All previous versions of the DA-184 form are in the process of being removed from the public website.  Agency HR/Payroll/Fiscal offices with blank, paper copies of previous versions of the DA-184 form should shred the blank forms and access/print a new copy of the form from Employee Self Service to assist new employees with enrolling for direct deposit.

To access the revised form in Employee Self Service, click on the W4, K4, & Direct Deposit Forms Tile > Direct Deposit Form > View Attachment. The blank form can be printed and filled in by hand or the form can be completed online as a fillable .pdf form and printed.  The completed form must be signed by hand by the requesting employee and submitted to the employee’s agency HR/Payroll/Fiscal office for processing. Please note that electronic signatures are not accepted on the form.

All agency HR/Payroll/Fiscal staff are reminded that it is the agency’s responsibility to complete the DA-184 Section B: Agency Certification for all submitted DA-184 changes requested. Failure to verify the requested change, directly with the employee either in person or via a known phone number for the employee, carries a very high risk of entering a fraudulent direct deposit change which will result in a loss of funds to the agency if net pay or expense reimbursement is mis-directed and the funds are not recoverable.

NTR:abe
Printable Version of 20-P-012

Summary: Addition of New Error Message on PAY011 Payroll Error Messages Report for Job Codes Exempt from State Unemployment Taxes

Kansas' law exempts certain groups of employees from Unemployment Compensation Insurance (UCI). In SHARP these exemptions are determined by the employee’s job code. To see a listing of SHARP job codes exempt from UCI see payroll informational circular 20-P-010. To ensure UCI is correctly calculated on employee paychecks in SHARP, a new payroll edit has been added to the PAY011 Payroll Error Messages Report beginning with pay period ending October 5, 2019.

The new payroll error message (number 100010) will appear if the employee job code is equal to an exempt job code and the employee’s state tax data page field ‘Exempt from SUT’ is not checked on (equal to ‘Y’). If this message appears on the report, the employee’s paysheet has been turned off, and no paycheck will be generated for the employee until the state tax data page is updated. The message will display as “The job code for the employee is exempt from SUT. The employee does not have the Exempt From SUT box checked on the State Tax Data page.”

If an employee is actively employed in Job Data on more than one position, and at least one of those positions is subject to UCI, the employee is subject to UCI on all positions and the Employee Tax Data ‘Exempt from SUT’ box should not be checked.  UCI tax will be calculated and paid on all wages for that employee including positions that are not normally subject to UCI, such as board member pay.

Agency personnel are responsible for ensuring that employees are exempted from UCI as appropriate. Exemptions from UCI are entered in SHARP under Employee Tax Data (path: Payroll Homepage > Employee Payroll/Benefits Data Tile > Employee Tax Information > Update Employee Tax Data) on the State Tax Data page by clicking "on" the 'Exempt From SUT' checkbox.

If an employee is in a position that is exempt from UCI:

If an employee is in one or more positions and at least one of the positions is subject to UCI:

JG:NTR:abe
Printable version of 20-P-013

Summary: Social Security Wage Base Increase to $137,700 effective January 1, 2020

The Social Security wage base for OASDI will be $137,700 for calendar year 2020.  This is a $4,800 increase from the wage base of calendar year 2019 of $132,900.  The OASDI tax rate for 2020 will be 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2020 will be $8,537.40.   There continues to be no limit on wages subject to the Medicare tax in 2020.  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 $8,537.40 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 Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.  Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.

JG:NTR:ckw

Printable Version of 20-P-014

Summary: Implementation of new daily process to identify SMART AP vouchers for current active employees.

The IRS and U.S. Department of Labor require that workers be correctly classified as an employee or an independent contractor.  All agencies of the State of Kansas operate as one employer under a single Federal Employer Identification Number (FEIN) for the purposes of compliance with federal regulations and reporting, including application of U.S. Dept. of Labor and IRS rules.  Due to that fact, a state employee that performs work at a 2^nd state agency that is similar in nature to the type of work performed at the individual’s employing agency cannot be considered an independent contractor and must be compensated through payroll for the work performed at the 2^nd agency. 

Examples of work completed for multiple agencies that would be employment wages payable through payroll could include:

• Computer Programmer/Web Designer at Agency #1 maintaining a website for Agency #2
• Graphic Designer for Agency #1 designing materials for a conference for Agency #2
• Instructor at Agency #1 lecturing at Agency #2

To assist in ensuring appropriate worker classification for State of Kansas employees and independent contractors, a new daily process has been implemented to identify select SMART AP vouchers that are payable to an individual who is an active employee in SHARP.  All SMART vouchers matched to an active SHARP employee are placed on hold for a wage determination review by the Office of Accounts and Reports (A&R) in order to determine if the SMART payment represents W-2 reportable wages that must be paid through payroll.

If a SMART payment is placed on hold for review, the employing agency and the agency requesting the SMART payment may be contacted to provide additional details regarding the employee’s job duties and/or work performed for the agency.  Agencies are requested to respond timely to any inquiry for information related to a wage determination review.  If the review identifies that the SMART payment is appropriate, the voucher will be released for payment.  If the SMART payment should be paid through payroll, staff from the Office of Accounts and Reports will work with the agencies involved to ensure appropriate processing of the wage payment. 

Questions regarding worker classification may be directed to Danelle Harsin in the Office of Personnel Services at (785) 296-4383 or via e-mail at Danelle.Harsin@ks.gov.  Questions regarding payments in SHARP/SMART impacted by the new review process may be directed to the A&R Contact, Amanda Entress, at (785) 296-3887 or via e-mail at Amanda.Entress@ks.gov.

 JG:NTR:abe

Printable Version of 20-P-015

Summary: Payroll processing schedule changes due to the November 2019 holidays.

Monday, November 11, 2019 (Veterans' Day), Thursday, November 28, 2019 and Friday, November 29, 2019 (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.

Wednesday, November 6, 2019

The second on-cycle preliminary pay calculation for the period ending November 2, 2019 will occur November 6, 2019.

Regents’ on-cycle files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 6, 2019. (These files would normally be due Thursday, November 7, 2019.)

Thursday, November 7, 2019

The third on-cycle preliminary pay calculation for the period ending November 2, 2019 will occur November 7, 2019.

Regents’ Run A off-cycle payroll files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 7, 2019. (These files would normally be due Friday, November 8, 2019.)

Friday, November 8, 2019

Final pay confirmation for the on-cycle payroll for the period ending November 2, 2019 will occur November 8, 2019.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM.  After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created. All deduction and tax data changes must be entered by 6:00 PM on November 8, 2019 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 15, 2019.

Sunday, November 10, 2019

Regents’ on-cycle payroll files for the period ending November 2, 2019 will be processed on this date.

Monday, November 11, 2019
Veterans' Day Holiday

Time Administration runs hourly from 7:30 AM – 5:30 PM

Tuesday, November 12, 2019

The Run A off-cycle for the period ending November 2, 2019 will be processed November 12, 2019. 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 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 15, 2019.

The Regents’ Run A off-cycle payroll files for the period ending November 2, 2019 will also be processed on this date.

Regents’ Run B off-cycle payroll files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 12, 2019.

Wednesday, November 13, 2019

The Run B off-cycle for the period ending November 2, 2019 will be processed November 13, 2019. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run B off-cycle will be dated November 18, 2019.

The Regents’ Run B off-cycle payroll files for the period ending November 2, 2019 will also be processed on this date.

Friday, November 15, 2019

Payday for the payroll period ending November 2, 2019.

Regents’ Run C off-cycle payroll files for the period ending November 2, 2019 must be received by the Department of Administration by 4:00 PM on November 15, 2019.

Monday, November 18, 2019

The Run C off-cycle for the period ending November 2, 2019 will be processed November 18, 2019. SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run C off-cycle. All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run C off-cycle will be dated November 21, 2019.

Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 16, 2019 to the Department of Administration by 5:00 PM.

The Regents’ Run C off-cycle payroll files for the period ending November 2, 2019 will also be processed on this date.

Tuesday, November 19, 2019

Paysheets for the on-cycle payroll for the period ending November 16, 2019 will be created on Tuesday, November 19, 2019.  For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 6:00 PM on November 19, 2018 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 16, 2019 will also occur November 19, 2019.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM.  After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, in order for a paycheck record to be created.

NOTE: Terminations and Retirements must be entered by 6:00 PM on November 19, 2019 and reported time must be submitted (and approved if applicable) by 5:30 PM in order for leave payouts to be calculated correctly.

Wednesday, November 20, 2019

The second on-cycle preliminary pay calculation for the period ending November 16, 2019 will occur November 20, 2019.

Regents’ on-cycle files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 20, 2019. (These files would normally be due Thursday, November 21, 2019.)

Thursday, November 21, 2019

The third on-cycle preliminary pay calculation for the period ending November 16, 2019 will occur November 21, 2019. 

Regents’ Run A off-cycle payroll files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 21, 2019. (These files would normally be due Friday, November 22, 2019.)

Friday, November 22, 2019

Final pay confirmation for the on-cycle payroll for the period ending November 16, 2019 will occur November 22, 2019.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM.  After Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM, 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, 2019 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 27, 2019.

Sunday, November 24, 2019

Regents’ on-cycle payroll files for the period ending November 16, 2019 will be processed on this date.

Monday, November 25, 2019

The Run A off-cycle for the period ending November 16, 2019 will be processed November 25, 2019. 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 5:30 PM. Payable time must be approved by 6:00 PM. Paychecks for the Run A off-cycle will be dated November 27, 2019.

The Regents’ Run A off-cycle payroll files for the period ending November 16, 2019 will also be processed on this date.

Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 16, 2019 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 27, 2019.)

Tuesday, November 26, 2019

Regents’ Run B off-cycle payroll files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 26, 2019.

Wednesday, November 27, 2019

Payday for the payroll period ending November 16, 2019. (It would normally be Friday, November 29, 2019)

The Run B off-cycle for the period ending November 16, 2019 will be processed November 27, 2019.  SHARP agencies have until 6:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle.  All employees’ reported time must be entered (and approved if applicable) by 5:30 PM. Payable time must be approved by 6:00 PM.  Paychecks for the Run B off-cycle will be dated December 4, 2019. (It would normally be Monday, December 2, 2019.)

Regents’ Run C off-cycle payroll files for the period ending November 16, 2019 must be received by the Department of Administration by 4:00 PM on November 27, 2019. (These files would normally be due Friday, November 29, 2019.)

Thursday, November 28, 2019
Thanksgiving Holiday

Time Administration runs hourly 7:30 AM – 5:30 PM

Friday, November 29, 2019
Thanksgiving Holiday

Time Administration runs hourly 7:30 AM – 5:30 PM

Beginning Monday, December 2, 2019 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2019, which highlights key payroll processing activity for the month.  The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

Please note the changes to the payroll processing schedule and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist.  SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at Informational Circulars.

JG:NTR:abe

November Calendar
Printable Version of 20-P-016

Summary: 2020 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, 2020 as follows:

457(b) Deferred Compensation:

The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to $19,500 (up from $19,000 in 2019) or 100% of includible compensation.

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $39,000 (up from $38,000 in 2019). 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) annual contribution limit increased to $6,500 for 2020 making the total $26,000. The provision for 2019 was $6,000 making the total for 2019 $25,000. 

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 2020 is the lesser of $57,000 or 100% of compensation, increased from $56,000 for 2019.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $280,000 (for 2019) to $285,000 (for 2020).  The $285,000 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 $28,500 ($285,000 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 $39,900 ($285,000 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 $415,000 (for 2019) to $425,000 (for 2020).  However, participants should note their maximum annual compensation limit will be $407,142.86, since the $407,142.86 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $57,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) increases to $19,500 for 2020 (up from $19,000 in 2019).  The age 50 or older catch-up provision increases to $6,500 for 2020 (up from $6,000 in 2019).  Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $6,500.   Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000.  Employees may use both the age 50 catch-up provision and 15-year rule concurrently.  IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($19,500 for 2020) 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.

JG:NTR:ckw
Printable version of  20-P-017

Summary: Changes to IRS Form W-4 Employee’s Withholding Allowance Certificate for Calendar Year 2020 for Claiming Exemption.

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 2, 2019 to all SHARP employees who are exempt from federal withholding.  Notifications will be sent to the employee’s email address listed under the ‘My System Profile’ tile in Employee Self Service.  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 2, 2019 to staff designated as the Agency Payroll Administrator through the SHARP security roles.  The worklist can be accessed two ways in SHARP for those with this role:  from the Payroll Home page, click on the Payroll Processing Tile, then click on Worklist on the left side of the screen, or click on the NavBar icon on the top right side of the screen, then click on the Navigator icon and then the Worklist menu item.  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 2020.  If your agency has no employees claiming an exemption from federal withholding the worklist will be empty.

Due to changes to the Federal W-4 form as a result of the implementation of the Tax Cuts and Jobs Act of 2018, updates are required to the SHARP system.  The target date for implementation of the required changes to SHARP and Employee Self Service is December 30, 2019.  Therefore, any employee that wants to claim exempt status for 2020 prior to December 30, 2019, will need to submit a paper 2020 W-4 form to agency personnel once the IRS issues the finalized copy of the 2020 Federal W-4 form. Agency personnel have until 6:00 p.m. on January 3, 2020 to enter all paper W-4s into the system, using an effective dated row of January 2, 2020.  Additional instructions for entering the new 2020 W-4 form in SHARP will be made available once the required changes are implemented in the SHARP system.   

The KPAY320 will be processed the evening of December 29, 2019.  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, 2020 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2020 effective-dated row will update the employee’s marital status to ‘single’ with no other adjustments.

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 2020 K-4’s.

The 2020 Form W-4 will be posted to the Office of the Accounts and Report’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, 2019 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 2020.  The new tax data row will be dated January 1, 2020.  The 8233 indicator on the tax data records should be updated once a form 8233 for calendar year 2020 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’.

JG:NTR:abe
Printable Version of 20-P-018

Summary: December 2019 Payroll Processing and Updated December Processing Calendar

As 2019 calendar year-end approaches, the Office of Accounts and Reports is making preparations for the issuance of calendar year 2019 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2019 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2020 balances; a corrected W-2 (Form W-2C) for 2019 will not be issued for the employee involved.

FINAL 2019 PAYCHECK

The final on-cycle paychecks for calendar year 2019 will be issued December 27, 2019. Payroll transactions for the December 27, 2019 on-cycle paychecks will be posted to SMART on Tuesday night, December 24, 2019. 

The final off-cycle, which is the ‘B’ cycle for pay period

ending December 14, 2019, paychecks for calendar year 2019 will be issued on December 30, 2019 (generated from the off-cycle processed on December 24, 2019).

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 6:00 p.m. on December 24, 2019 to enter paycheck adjustment requests for any 2019 paychecks.  Adjustments processed in the December 24, 2019 off-cycle payroll will be reflected on the employee’s 2019 Form W-2.  Please remember for SHARP employees only 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 2019 paycheck has been previously adjusted and requires additional adjustment, form DA-180, SHARP Paycheck Reversal/Adjustment/Supplemental, should be submitted to the Office of Accounts and Reports, Payroll Section by 5:00 p.m. on Wednesday, December 11, 2019. Please note that agencies can send DA-180 forms after December 11, 2019 for adjustments that are determined to be needed.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 11, 2019 on or before the December 24, 2019 off-cycle.  However, if a large volume of DA-180 forms is received on or after December 11, 2019 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2019 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.

With the exception of arrearages and refunds for OASDI and/or Medicare for tax years prior to 2020, adjustment requests entered after December 24, 2019 which are adjusting paychecks issued prior to January 1, 2020 will not result in a W-2C; the adjustment will update the employee’s 2020 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 24, 2019 will update the employee’s 2020 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 14, 2019, paid December 27, 2019 are due to the Department of Administration by 4:00 p.m. on December 18, 2019.

Regent on-cycle for the pay period ending December 14, 2019, paid December 27, 2019 will be run on the night of December 22, 2019 (normally run on Monday, December 23, 2019).

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2019 Paycheck Reversals
Regent Institutions must submit all transmittals for 2019 paycheck reversals by 4:00 p.m. on Monday, December 23, 2019 in order to update the employee’s 2019 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 2020 payroll balances regardless of the paycheck issue date of the paycheck being reversed. 

2019 Adjustments and Supplementals
In order to update employee balances for 2019, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Monday, December 23, 2019.  The Run B off-cycle for the pay period ending December 14, 2019 generated on the night of Tuesday, December 24, 2019 will have a check issue date of December 30, 2019; all activity for this off-cycle will be reflected in the employees’ 2019 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 2019 date.

2020 Adjustments and Supplementals
With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2020, any adjustments or supplementals submitted after 4:00 p.m. on Monday, December 23, 2019, will be considered to be 2020 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2020 business, the employee’s 2020 balances will be updated.  These files should contain a ‘C’ indicating current year business.

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2020, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2020 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 2020 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 23, 2019 deadline for the December 24, 2019 Run B’s off-cycle payroll will not be processed until the April 13, 2020 off-cycle payroll.  The deadline for submitting payroll interface files for the April 13, 2020 off-cycle is 4:00 p.m. on Friday, April 10, 2020.

GENERAL REMINDERS

United Way and Community Health Charities

The deduction END date on the general deduction page for 2019 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 15, 2019 and December 28, 2019 in order for the last 2019 deduction to be taken on the paycheck issued December 27, 2019 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 2020, agencies can enter a new row effective-dated between December 15, 2019 and December 28, 2019 in order for the first deduction for United Way or Community Health Charities for 2020 to be taken on the January 10, 2020 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 13, 2020 should be entered.  Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2020.

A batch process will run the night of December 27, 2019 to establish the fee portion (deduction code UTFXXX) of the 2020 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 2020.  This process will reduce the 2020 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 2020 will match the employee’s authorized deduction amount.  Agencies should verify the deduction/fees set up for all employees enrolled in United Way and/or Community Health Charities beginning Monday, December 30, 2019 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.  Please note that if agencies need to enter any 2020 United Way/Community Health Charities deductions after December 27, 2019, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.

Tax Information

Please see payroll informational circular 20-P-018 issued on November 25, 2019 for tax information related to year end.

Deduction Information

All deductions for calendar year 2020 are biweekly except:

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

-Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.

-Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month.

-Optional Group Life Insurance: monthly, deducted on the second pay date of the month.

-Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month.   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.

-Long Term Care 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 B cut-off date of December 24, 2019.  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 2019 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 14, 2019 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, 2019 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, 2019.  Please remember that these forms are only for those arrearages that are actively being collected.

On December 29, 2019, 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, 2020 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 2, 2020 to update the Contact Information page, it is strongly recommended that these changes be made as soon as they are known.  Regent Institutions should make their name, address, and social security number changes by submitting them through the management reporting interface by 5:00 p.m. on December 23, 2019.  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 2, 2020 and January 10, 2020.  Electronic W-2 forms through Employee Self Service will be available on or before January 10, 2020.  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, 2020.  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 2019 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 Informational Circulars.

Attachment
Printable version of 20-P-019
JG:NTR:abe

Summary: IRS Releases Form W-4 Employee’s Withholding Allowance Certificate for Calendar Year 2020.

The  2020 IRS Form W-4, Employee’s Withholding Certificate has been released and is immediately available in paper form at the IRS website at https://www.irs.gov/pub/irs-pdf/fw4.pdf and at the Office of Accounts and Report’s website at Document Center.

The 2020 Form W-4 reflects changes resulting from the implementation of the Tax Cuts and Jobs Act of 2018 and uses the employee’s income tax filing status, dependents, and other adjustments to determine the federal withholding liability. Due to the changes to the form, updates are required to the SHARP system.  The new form is scheduled to be available in Employee Self Service on January 1, 2020.

With the exception of employees claiming exemption from withholding for 2020, current employees are NOT required to complete the new 2020 W-4 form at this time but may elect to submit a new form.  If an employee does not elect to submit a new form, payroll tax withholding in 2020 will continue to be based on the most recent W-4 form submitted.  Effective January 1, 2020 all newly hired employees or existing employees who want to change their federal tax withholding will be required to use the new W-4 form.

As noted in Informational Circular 20-P-018, 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 years.

 To ensure exemption from withholding is effective with the first paycheck in 2020, employees should claim exempt status using one of the following methods:

• Claim ‘Exempt’ status via Employee Self Service between January 1, 2020 and January 3, 2020 at 6:00 PM
• Submit a paper 2020 W-4 form to agency personnel, completing Steps 1a, 1b, and 5 and writing the word “EXEMPT” in the space below line 4(c).The employee should not complete any other steps on the 2020 W-4 if claiming exemption.

Agency personnel have until 6:00 p.m. on January 3, 2020 to enter all paper W-4s into the system, using an effective dated row of January 2, 2020. 

JG:NTR:abe
Printable Version of 20-P-020

Summary: New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2020

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2020 per Publication 15-T including an Employer’s Worksheet to be used for computing federal tax withholding for wages paid on or after January 1, 2020.  To use the attached IRS worksheet and 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 $4,300 for employees whose Form W-4 is from 2019 or earlier. 

For employees whose Form W-4 is from 2020 or later, Step 2 on the Form W-4 determines which set of attached tables are used to compute federal tax withholding.  The first set of tax tables (page 2 on the attachment) are used for employees with a 2019 or earlier Form W-4 or whose 2020 Form W-4 does not have the box in Step 2(c) checked.  The second set of tax tables (page 3 on the attachment) are used for employees whose 2020 Form W-4 does have the box in Step 2(c) checked.

Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2020 has increased to $8,100 if the NRA employee has not submitted a Form W-4 for 2020 or later or $12,400 if the NRA employee has submitted a Form W-4 for 2020 or later or was first paid wages in 2020 or later.  In addition, Regents should check IRS Publication 1494 for any changes to the amounts used when computing tax levies for garnishments. Publication 1494 for 2020 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 remains at 22% for 2020.

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 beginning January 1, 2020 to file their 2020 W-4s.  The 2020 Form W-4 has been published by the IRS and can be found on the Office of Accounts and Reports website at the Document Center.  

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

2019 must file a new 8233 form for calendar year 2020 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 Accounts and Reports, Payroll Services, will make 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. 

JG:NTR:ewb

Attachment: IRS Publication 15-T (2020) Worksheet 1. Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems and 2020 Annual Percentage Method Tables

Printable Version of 20-P-021

Summary: Information Pertaining to Employee 2019 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2019 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 3, 2020.  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 3, 2020. 

The KTXPR55 W-2 listing is sorted by 1) 3-digit agency, 2) alphabetically by last name/first name, and 3) by social security number (SSN). The report is totaled by 3-digit agency. The ’Total Number of Employees’ count from the Grand Totals page represents the total number of 2019 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 2019 W-2's.

In those instances where an employee 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 2019.  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 most 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 2019 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, 2020.  At that time, they will be destroyed.

In cases where the 2019 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 2015 through 2019, agencies are expected to recommend that employees consent to view these W-2’s electronically using ‘W-2:  Consent, Reissue, Forms’ tile 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.  The Desk Aid that explains this procedure is W-2 Consent, Withdraw and Reissue Instructions which 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 (2019, 2018, 2017, 2016, or 2015) the reissued W-2 is needed.  Duplicate W-2’s for 2015- 2018 are currently available, and duplicate W-2’s for 2019 will be available starting on Wednesday, February 5, 2020. 

The Office of Accounts and Reports, 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 2019 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 2019 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 off-cycle paychecks dated December 30, 2019 are included in the 2019 W-2 amounts.

Attachment A
Attachment B
Printable Version of 20-P-022

JG:NTR:abe

Summary: 2020 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 2020 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 2020 W-2 production reports are scheduled to be generated:

Friday, April 17, 2020
Friday, May 15, 2020
Friday, June 12, 2020
Friday, July 10, 2020
Friday, August 7, 2020
Friday, September 4, 2020
Friday, October 2, 2020
Friday, October 30, 2020
Friday, November 13, 2020
Wednesday, November 25, 2020
Monday, December 7, 2020
Monday, December 14, 2020
Monday, December 21, 2020
Monday, December 28, 2020
Thursday, December 31, 2020 12:00 PM – DEADLINE FOR W-2 ADJUSTMENTS
Thursday, December 31, 2020
Tuesday, January 5, 2021 - 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 2020 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. Please note that all W-2 adjustments need to be sent to payroll services no later than noon on Thursday, December 31, 2020 to ensure all W-2s are correct. 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 20-P-023
JG:NTR:abe

Summary: 2020 Form W-4 Employee’s Withholding Allowance Certificate  Required for Rehired Employees

The 2020 IRS Publication 15-T Federal Income Tax Withholding Methods has clarified the Form W-4 requirements for employees rehired in 2020 as follows:

“A new employee who is first paid wages in 2020, including an employee who previously worked for you and was rehired in 2020, and who fails to furnish a Form W-4 will be treated as if they had checked the box for Single or Married filing separately in Step 1(c) and made no entries in Step 2, Step 3, or Step 4 of the 2020 Form W-4…” [emphasis added]

Therefore, individuals rehired on or after January 1, 2020 must complete a 2020 W-4, Employee’s Withholding Certificate. If no W-4 form is completed at the time of rehire the individual will be treated as if they had checked the box for Single or Married filing separately and no other adjustments.  The  2020 IRS Form W-4, Employee’s Withholding Certificate can be found at the IRS website at https://www.irs.gov/pub/irs-pdf/fw4.pdf and at the Office of Accounts and Report’s website at the Document Center.

Printable version of 20-P-023
JG:NTR:abe

Summary: NACHA data security requirement 

In order to enhance quality and improve risk management, the National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information.  NACHA has established 2 separate phases of implementation for the new requirement based on transaction volume.  The State of Kansas must be compliant with the Phase 1 date of June 30, 2020.

The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically.  This includes ACH account information stored at rest in any system or in any electronic format.  ACH account information in transit is not affected by this requirement.  Forms collected electronically (including those which are scanned and stored) are subject to the requirement.

Examples of data subject to the new NACHA security requirement:

• ACH information for any current or former employee
• ACH information for any supplier
• INF02, Inbound Voucher Interface File, retained by the agency for historical purposes
• INF67/BL67, Inbound ACH Bank File, retained by the agency for historical purposes
• DA-130, Authorization for Electronic Deposit of Supplier Payment
• DA-184, Authorization for Direct Deposit of Employee Pay and/or Travel and Expense
• Regent Pay Detail Files, retained by the agency for historical purposes
• Correspondence in e-mail or help desk that includes ACH information

Examples of data not subject to the new NACHA security requirement:

• INF02, Inbound Voucher Interface File, in transit
• INF67/BL67, Inbound ACH Bank File, in transit
• Regent Pay Detail Files, in transit

Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration.  Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security on June 30, 2020.

Additional Resources
NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements

PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9

Attachment
Letter from Jake LaTurner dated November 26, 2019

Printable Version of 20-P-025

Summary: Elimination of Agency E-Mail Notifications of Employee Changes to Federal W-4 and State K-4 Withholdings Made via SHARP Employee Self Service

Effective immediately, electronically submitted changes to an employee’s Federal W-4 or Kansas K-4 made via SHARP Employee Self Service (ESS) will no longer generate an e-mail notification to agency HR/Payroll staff. Agency staff will no longer be required to maintain a paper copy of electronic changes made to an employee’s Federal W-4 or State K-4. Staff are reminded that W-4/K-4 forms submitted in paper version and entered by agency staff must continue to be retained by the agency in the employee’s personnel file in accordance with record retention guidelines.

To assist agencies with identifying W-4/K-4 changes made electronically by employees, a new query (Employee Tax Updates) is being developed and will be added to the Payroll WorkCenter Queries in SHARP.  Notification will be sent via the SHARP Infolist when the new query has been added to the WorkCenter. The Payroll WorkCenter can be found in SHARP on the Payroll Homepage under the Payroll WorkCenter tile.  The query prompts for a date range, which pulls from the Date Last Updated field on the Federal Tax Data Page in SHARP and will display the max effective dated row for all employees in your agency who had a Federal or State tax data change between the dates entered in the prompt. The results of the query will display the Employee ID, Effective Date, Form: (note: version A = 2019 or earlier; version B = 2020 or later), Last Action (see below for code references), and Date of last update.

Last Action Codes:

B = Batch
C = System (i.e. Rehire)
D = Hire Process
O = Online User
W = Employee Self Service

Agencies are reminded that employees have until 6:00 p.m. on the night of payroll confirm (normally the Friday of pay calc week) to change tax data.

Printable Version of 20-P-026
JG:NTR:abe

Summary: Organization Dues Change for ORG357

The organization dues for members of the AFSCME Council 61, Local 1357, will increase from $19.31 to $19.81 per biweekly payroll period.  The new rate will become effective with the payroll period beginning January 26, 2020 and ending February 8, 2020, paid February 21, 2020.

The amounts listed above include the deduction amount (ORG357 deduction code) and the $0.06 service fee (ORF357 deduction code) added together. The new rate for deduction code ORG357 will increase from $19.25 to $19.75 and the fee (ORF357) will remain at $.06 (for a total deduction of $19.81 per biweekly payroll period).

The Office of Accounts and Reports, 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 20-P-027
JG:NTR:abe

Summary: IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2020

The Internal Revenue Service (IRS) announced the standard mileage rate decreased to 57.5 cents beginning January 1, 2020 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 57.5 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 2020 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $50,400 for automobiles (including trucks and vans). 

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. 

Also, as noted in Informational Circular 20-A-006, any agency that processed a mileage reimbursement on or after January 1^st for travel that occurred on or after January 1, 2020 and used the previously published (higher) rates will need to calculate the difference and either:

• process that amount through payroll as fringe benefit income; or
• reduce that amount from future mileage reimbursements that occur in 2020

*Informational Circular No. 05-P-023 contains an incorrect K.A.R. reference number in the next to the last paragraph of the POLICY section.  The reference should be:  Kansas Administrative Regulation 1-17-2a(b)(1).

Printable version of 20-P-028
JG:NTR:abe

Summary: Delay of enforcement for NACHA data security requirement 

This revises Informational Circular No. 20-P-025 issued on January 16, 2020.

Background:

The National Automated Clearing House Association (NACHA) has increased the level of security measures required for large-volume processors when storing account information. The new requirement states that account information used for ACH purposes must be rendered unreadable when it is stored electronically.  This includes ACH account information stored at rest in any system or in any electronic format.  ACH account information in transit is not affected by this requirement.  Forms collected electronically (including those which are scanned and stored) are subject to the requirement.

Revised deadline:

As published in the National Association of State Auditors, Controllers and Treasurers’ (NASACT) newsletter dated January 21, 2020, NACHA will be taking the position of “no enforcement” of the new data security rule through June 30, 2021 for governmental entities that are working in good faith toward implementation and compliance.  Agencies subject to the NACHA requirement should develop and document a plan of action by June 30, 2020 that will ensure compliance with the new security requirements is achieved on or before June 30, 2021.

Security of ACH account information and attachments stored in SMART and SHARP will be addressed by the Department of Administration.  Each state agency retaining ACH account information and attachments in any agency system or database must adhere to the new requirement for data security by June 30, 2021.

Additional Resources

NACHA web site, Supplementing Data Security Requirements:
https://www.nacha.org/rules/supplementing-data-security-requirements

PCI DSS Requirement 9
https://www.solarwindsmsp.com/content/pci-dss-requirement-9

Printable version of 20-P-029

Summary: Employee Self-Service ‘View Paycheck’ tile has been extended for terminated and retired users.    

A change has been made to Employee Self-Service (ESS) for (Non-Regent) employees who are no longer employed by the State of Kansas.   A terminated/retired employee will have thirty days from the date of termination to access all their ESS information online. After thirty days, access will be limited to the “My System Profile”, “W-2: Consent, Reissue, Forms”, and “View Paycheck” tiles for 18 months from the date of separation from employment. Agencies should inform their employees upon their retirement/termination that they will have access to print their W-2’s and view/print paychecks  for 18 months after termination.  The Employee Self-Service Center is available 24/7, excluding Official State of Kansas Holidays and scheduled monthly maintenance.

ESS may be accessed at www.kansas.gov/employee by clicking the Employee Self-Service hyperlink located on the right side of the page.  If the past employee does not remember their password at any time during this 18-month period, a 'Forgot Your Password Instructions' is available on the ESS website.  Additional resources on this website are listed under Frequently Asked Questions (FAQs) – W-2 Consent Withdraw, and Reissue Instructions’, ‘View Paycheck’, ‘Print Paycheck’ and 'Request W-2 Reissue’.

JG:NTR:jko
Printable version of 20-P-030

Summary: Addition of Earnings Code ‘CVD’ for COVID-19 Tasks

On March 12, 2020, Governor Kelly declared an emergency in response to the growing novel coronavirus (COVID-19) outbreak in Kansas.  As a result, agencies will be preparing for and responding to numerous issues, questions, and tasks related to COVID-19. 

Therefore, a new earnings code has been added to SHARP effective March 8, 2020 to administer the tracking of time worked on COVID-19 related tasks.  Agencies should also refer to the Governor’s memorandum issued March 13, 2020 on COVID-19 Operational and Workplace Guidance for instructions regarding the recording of administrative leave for other scenarios related to COVID-19.

The following new earnings code is eligible to be used starting with the pay period beginning March 8, 2020 through March 21, 2020 paid April 3, 2020.

Earnings Code

CVD

Description

COVID-19 Tasks

Short Description

COVID-19

Effective Date

03/08/2020

SHARP agencies: The Office of Personnel Services has created the CVTSK (COVID-19 Task) Time Reporting Code (TRC) and has mapped the CVTSK TRC to the CVD earnings code effective March 8, 2020. The CVTSK TRC is now visible in Time and Labor drop down lists.

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

JG:NTR:ewb
Printable Version of 20-P-031

Summary: Suspension of Continuing Education Garnishments for US Department of Education

In a press release dated March 25, 2020 U.S. Secretary of Education Betsy DeVos announced that, due to the COVID-19 national emergency, the U.S. Department of Education will halt collection actions and wage garnishments for student loans due to the Dept of Education for a period of at least 60 days from March 13, 2020.  In additional Q&A information available at https://studentaid.gov/announcements-events/coronavirus, the Dept. of Education notes that it will refund any funds received by the Dept. of Education for wages garnished during the transition by employers to comply with the announced changes. 

To comply with the announcement, effective immediately, Statewide Payroll will be completing the necessary actions to temporarily suspend all wage garnishment for student loans collections due to the Dept. of Education, either directly or through a 3^rd-party collection agent, and will re-activate the wage garnishments upon notification from the U.S. Dept. of Education.  Regent agencies are responsible for making the necessary changes in their systems to comply with the announced changes.

JG:NTR
Printable Version of 20-P-032

Summary: Update to Program Code for Funding Associated with the New CVD Earnings Code (Time Reporting Code CVTSK)

Informational Circular 20-P-031 announced the addition of earnings code CVD (Time Reporting Code CVTSK) for tracking work related COVID-19 tasks.  In addition, the Governor and Secretary of Administration have requested that all transactions related to the COVID-19 outbreak, including the time worked on COVID-19 related tasks, be tracked via a new program code in SMART for ease of reporting.  This applies to all state agencies (Regents, executive, judicial, and legislative branches).  Division of the Budget and the Office of Accounts and Reports have added program code 21662, COVID-19 Transactions, with an effective date of February 1, 2020, to both IBARS and SMART.

Agencies utilizing the new CVD earnings code must update the program code chartfield for the agency funding string associated with the CVD earnings code to reflect the new program code of ‘21662’ and submit the new combination code(s) to SHARP using the new program code.  Combination codes submitted by 11 a.m. daily will be loaded by 1 p.m.; requests submitted after 11a.m. will be loaded the following day. 

Agencies are responsible to instruct those employees required to record time using the new CVD earnings code (Time Reporting Code CVTSK)/combination code.  If previous COVID-19 related time reporting has already been processed using the CVD earnings code (Time Reporting Code CVTSK), agencies are expected to process an adjustment in SMART to update/correct the funding to reflect the new program code of 21662. 

When considering what time reporting and/or SMART transactions should use the COVID-19 program code, the general guidance is to include transactions that would not normally have occurred if the virus outbreak had not happened.

Examples of transactions that should use the COVID-19 program code:

• Salaries and wages for additional personnel or overtime costs due to outbreak response 
• Overtime costs for staff working to cover tasks when co-workers cannot report due to self-quarantine or no access to daycare for school-age kids
• Purchase of laptop computers so staff can work remotely 
• Meals, lodging and/or miscellaneous expenses for emergency response
• Military activation
• Supplies for disinfection (cleaners, anti-bacterial gel, etc.)
• Medical supplies (gloves, masks, thermometers, test kits, etc.)
• Costs due to the cancellation of activities
• Deposits for COVID-19 revenue

Examples that should not use the COVID-19 program code:

• Salaries and wages for staff working remotely or performing normal tasks during the statewide office closure

Any agencies with specific questions about whether expenses or revenues should be included or excluded should contact their Division of Budget analyst.  Questions regarding the steps required to update the agency funding to reflect the new program code for the CVD earnings code (Time Reporting Code CVTSK) should be directed to Heather DeBusk at Heather.DeBusk@ks.gov or 785.296.2434.

JG:NTR
Printable Version of 20-P-033

Summary: Agency Options for Required Use of New Program Code for Funding Related to COVID-19 Payroll Expenditures 

Informational Circular 20-P-033 announced the addition of a new program code ‘21662’ to track and report payroll expenditures for work related to COVID-19 tasks.  This reporting requirement applies to all state agencies (Regents, executive, judicial, and legislative branches).  To assist in tracking COVID-19 payroll expenditures, including overtime, a new Taskgroup ‘COVIDTSK’ has been added to SHARP effective 3/8/2020.  The new Taskgroup may be used with any Time Reporting Code to track/report COVID-19 related hours (Overtime, Shift Differential, etc.)

To minimize the agency impact for implementation of the new reporting requirement, the Division of Budget and the Secretary of Administration have approved the following options for agencies required to record COVID-19 related payroll expenditures using the new program code:

Option #1:  For agencies NOT using task profiles to record detailed expenditures:

• Employees may use the Time Reporting Code CVTSK OR REG (with new Taskgroup COVIDTSK) to record employee regular hours related to COVID-19
• Employees will use the newly established Taskgroup ‘COVIDTSK’ to record other COVID-19 related hours such as overtime reported as OTP (see example), Shift Differential, etc.

  Timesheet Example:

  

• Agency payroll/finance staff must generate the Payable Time Extract (KTL109) in SHARP each pay period to identify all payroll expenditures associated with COVID-19 and complete a SMART GL journal entry to move the associated expenditures to the new program code ‘21662’ on a bi-weekly basis
• Additional detailed guidance for this option is available in Attachment A

Option #2:  For agencies tracking detailed expenditures through task profiles:

• Agency may create new task profiles per Info Circ. 20-P-033 to reflect the new required program code OR
• Agency payroll/finance staff may use task profiles or other tracking information to identify COVID-19 related payroll expenditures and complete a SMART GL journal entry to move the associated expenditures to the new program code ‘21662’ on a bi-weekly basis

Agencies are responsible to instruct those employees required to record time using the new COVIDTSK Taskgroup for time reporting and/or the Time Reporting Code CVTSK to track time recorded for COVID-19 tasks.  If previous COVID-19 related time reporting has already been processed, agencies are expected to process an adjustment in SMART to update/correct the funding to reflect the new program code of 21662 for COVID-19 related expenditures that occurred on or after February 1, 2020. 

As a reminder, per Division of Budget, only payroll expenditures that would not normally have occurred if the virus outbreak did not happen should be reported under the COVID-19 program code. 

Examples for Employee payroll expenditures for COVID-19 tracking:

Employee payroll expenditures that should be tracked/reported using the COVID-19 program code:

• Salaries and wages for additional personnel or additional (non-standard) overtime costs directly related to outbreak response 
• Additional overtime costs for staff working to cover tasks due to COVID-19 (i.e. when co-workers cannot report due to self-quarantine or no access to daycare for school-age kids)

Employee payroll expenditures that should not be tracked/reported as COVID-19 costs:

• Previously budgeted salaries and wages for staff working regular hours remotely (either performing normal tasks and/or planning/discussing agency impacts from COVID-19)
• Previously budgeted overtime costs to cover standard agency-anticipated overtime

Examples for distribution of Employer payroll tax/fringe expenditures for COVID-19 tracking:

• For NEW positions added and fully dedicated to COVID-19 ALL employer taxes and fringes (KPERS/Employer Health Benefits, etc.) should be reported with the new program code

   

• For EXISTING positions with additional hours/overtime reported under the new program code, only the portion of those employer charges that would not have previously occurred may be charged to the new program code:
  • Employer Percentage-Based Taxes/Fringes such as OASDI/Medicare, UCI, State Leave, KPERS, etc. should be reported for the COVID-19 related payroll costs 
  • Flat-rate employer charges such as Health Benefits for existing employees should NOT be reported to the new program code as those are not new costs due to the outbreak

Any agencies with specific questions about what should be included or excluded for COVID-19 reporting should contact their Division of Budget analyst.  Questions regarding agency funding should be directed to Heather DeBusk at Heather.DeBusk@ks.gov or 785.296.2434.

JG:NTR

Attachment A
Printable Version of 20-P-034

Summary: New Earnings Codes and Agency Guidance for Implementation of the Federal Families First Coronavirus Relief Act (FFCRA)

On March 18, 2020, the Federally authorized Families First Coronavirus Relief Act (FFCRA) was signed into law to aid employees impacted by COVID-19. The FFCRA contains the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (EFMLEA) which authorize paid leave provisions for specific circumstances related to COVID-19 and apply to leave taken between April 1, 2020 and December 31, 2020. 

The Act specifies that wages paid for FFCRA authorized leave are not considered wages for the calculation of the employer share of OASDI, however, all other employee and employer deductions, withholdings, and contributions apply.  

Please note that due to the State of Kansas providing state-authorized administrative leave to state employees through April 4, 2020, the FFCRA leave provisions will be implemented for SHARP agencies effective April 5, 2020.

Earnings Codes:

New earnings codes have been added to SHARP effective April 5, 2020 to administer the tracking of the compensation paid under the FFCRA guidance.  Agencies should also refer to the Office of Personnel Services SHARP Infolist message containing guidance for entry of Time Reporting Codes used to record leave authorized under the FFCRA.

The following new earnings codes are effective for the pay period beginning April 5, 2020 through April 18, 2020 paid May 1, 2020.

Earnings Code             Description                         Short Description      Effective Date
ADC                        Leave-Emergency Self             Lve-COVID               04/05/2020
CVF                         Leave-Emergency Family        Lve-COVID               04/05/2020
CVC                         Leave-Emergency Childcare   Lve-COVID               04/05/2020
ADF                         Leave-Emergency Admin         Lve-COVID               04/05/2020

Due to the complexity of the payroll calculations required under the FFCRA, the Time Reporting Codes established to track FFCRA leave in Time and Labor are NOT mapped directly to the payroll earnings code in SHARP.  However, the hours reported in Time and Labor are required to complete the payroll calculations.

Payroll Calculations under FFCRA:

As authorized by the FFCRA, employees are eligible for paid leave subject to daily limits.  However, to further assist employees impacted by COVID-19, beginning April 5, 2020 and until further notice, the State of Kansas Executive Branch has authorized additional emergency administrative leave for SHARP employees authorized to take leave under the FFCRA to fill the gap between the FFCRA-authorized wage limits and the employee’s regular wages (defined as standard hours at standard hourly rate). 

Employee Paid Leave Eligibility under FFCRA:

Under the EPSLA, eligible employees may receive up to two weeks (80 hours, or a part-time employee’s two-week equivalent) of paid sick leave paid at:

100% of employee’s FFCRA-defined regular rate of pay for an employee who:

• Is subject to a Federal, State, or local quarantine or isolation order related to COVID-19
• Has been advised by a health care provider to self-quarantine related to COVID-19
• Is experiencing COVID-19 symptoms and is seeking a medical diagnosis

2/3 of employee’s FFCRA-defined regular rate of pay for an employee who:

• Is caring for an individual who is subject to a Federal, State, or local quarantine or isolation order or who has been advised by a health care provider to self-quarantine related to COVID-19
• Is experiencing any other substantially similar condition specified by the U.S. Department of Health and Human Services
• NOTE: Emergency administrative leave will be inserted into the paysheet for the additional 1/3 of employee’s wages (effective 04/05/20 until further notice)

Under the EPSLA, all eligible employees may receive up to two weeks of paid sick leave (80 hours/2  weeks, or a part-time employee’s equivalent) and under the EFMLEA individuals employed for 30 days or more may receive an additional 10 weeks of paid family/medical leave paid at:

2/3 of employee’s FFCRA-defined regular rate of pay for an employee who:

• Is caring for his or her child whose school or place of care is closed (or child-care provider is unavailable) due to COVID-19 related reasons
• NOTE: Emergency administrative leave will be inserted into the paysheet for the additional 1/3 of employee’s wages (effective 04/05/20 until further notice)

The Office of Accounts and Reports, Payroll Systems Team, is responsible for adding the new earnings codes and FFCRA calculations in the SHARP System.  Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems in accordance with guidance from the Office of Accounts and Reports and the Kansas Board of Regents. 

Office of Accounts and Reports Contacts:

• Nancy Ruoff, Statewide Payroll Manager(785) 296-2853    Nancy.Ruoff@ks.gov
• Earl Brynds, Payroll Systems Team Lead(785) 296-5376    Earl.Brynds@ks.gov

Office of Personnel Services Time and Labor Contacts:

• Connie Guerrero, Deputy Director                        Connie.Guerrero@ks.gov
• Brent Smith, Human Resource Professional        Brent.Smith@ks.gov

JG:NTR
Printable Version of 20-P-035

Summary: Payroll/SMART processing schedule changes due to 2020 Fiscal Year End

Due to the upcoming 2020 Fiscal Year End in SMART and the payroll pay check date occurring close to the last day of the fiscal year in SHARP, June 26, 2020, it is necessary to make a few changes to the normal payroll/SMART processing schedules to accommodate the early closing of SMART on Saturday, June 27, 2020. 

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 17, 2020

Regents’ on-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 17, 2020.   (These files would normally be due on Thursday, June 18, 2020).

Regent file sets for the period ending June 13, 2020 ‘A’ off-cycle may be submitted. 

SHARP on-cycle payroll pre-calculation for the period ending June 13, 2020 will be processed as normal on this date.

Thursday, June 18, 2020

Regents’ on-cycle files for the period ending June 13, 2020 will be processed on this date. (The Regent’ on-cycle files would normally be processed on Monday, June 22, 2020).

SHARP on-cycle payroll pre-calculation for the period ending June 13, 2020 will be processed as normal on this date.

Friday, June 19, 2020

Regents’ on-cycle payroll journals for the period ending June 13, 2020 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 24, 2020).

Regents’ Run A off-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 19, 2020.  NOTE: If necessary, Regents can work directly with Statewide Payroll to submit off-cycle ‘A’ payroll files for approval on Monday, June 22, 2020, but all files must be approved no later than 3pm on Monday, June 22, 2020 for processing in the ‘A’ off-cycle.

SHARP on-cycle final payroll calculation for the period ending June 13, 2020 will be processed as normal on this date.

Monday, June 22, 2020

SHARP on-cycle payroll journals for the period ending June 13, 2020 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 24, 2020).

NOTE: SHARP and Regents’ off-cycle ‘A’ payroll for the period ending June 13, 2020 will be processed as normal on June 22, 2020. 

Tuesday, June 23, 2020

Regents’ and SHARP off-cycle ‘A’ payroll journals for the period ending June 13, 2020 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 24, 2020).

Regents’ Run B off-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 23, 2020. 

Wednesday, June 24, 2020

SHARP and Regents’ off-cycle ‘B’ payroll for the period ending June 13, 2020 will be processed as normal in SHARP on June 24, 2020.  This will be the last payroll cycle for fiscal year 2020.

Thursday, June 25, 2020 

Regents’ and SHARP off-cycle ‘B’ payroll journals for the period ending June 13, 2020 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 26, 2020).

Friday, June 26, 2020

Payday for the payroll period ending June 13, 2020.

First opportunity for Time and Labor interface agencies to have time and labor (INF42/KAGYTL42) files for the period ending June 27, 2020 submitted to the Department of Administration for processing by 5:00 PM on June 26, 2020.  (These files would normally be due Monday, June 29, 2020.)  Last opportunity to submit files will be noon on Monday, June 29, 2020.

Regents’ Run C off-cycle payroll files for the period ending June 13, 2020 must be received by the Department of Administration by 4:00 PM on June 26, 2020. 

Monday, June 29, 2020
SMART closed to Agencies.

SHARP and Regents’ off-cycle ‘C’ payroll for the period ending June 13, 2020 will be processed as normal on June 29, 2020.  This will be the first payroll cycle for fiscal year 2021.

NOTE: Due to the July 4, 2020 holiday, paysheets for the SHARP on-cycle payroll for the period ending June 27, 2020 will be created on Monday, June 29, 2020.  (Paysheets would normally be created on Tuesday, June 30, 2020.)

Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending June 27, 2020 to the Department of Administration for processing by noon to be processed at 12:30 p.m. on June 29, 2020.

Terminations and Retirements must be entered by 6:00 PM on June 29, 2020 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 27, 2020 will also occur June 29, 2020. For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 5:30 PM.  After the final Time Administration runs at 5:30 PM, payable time must be approved by 6:00 PM. on June 29, 2020 in order for a paycheck record to be created.

JG:NTR:abe
Printable Version of 20-P-036

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 2021 payroll contribution rates will be issued as soon as the information becomes available. There is also informational circular 20-P-036 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 13, 2020 will use fiscal year 2020 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 13, 2020 will use fiscal year 2021 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 B off-cycle (scheduled for June 24, 2020, paid June 29, 2020) for the pay period ending June 13, 2020 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2020 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 21, 2020 and should be completed by Monday morning, June 22, 2020.  In that process, a new row will be added to the Department Budget tables with an effective date of June 14, 2020 (beginning date of the first on-cycle payroll charged to FY2021).  The Budget End Date will be June 12, 2021. 

Agencies should send Combination Code files or any Department Budget Table files for FY2021 changes into Statewide Payroll by Friday, June 19, 2020.  These files will be loaded into SHARP beginning Tuesday, June 23, 2020. Agencies should not enter any rows with an effective date greater than or equal to June 14, 2020 until June 23, 2020. When adding new rows for FY2021, agencies should verify that June 12, 2021 was used as the Budget End Date for FY2021.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Thursday June 25, 2020 after the ‘B’ off-cycle process has been completed for the June 13, 2020 pay period end date.  A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 25.  Agencies are encouraged to complete all FY2020 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 24, 2020, since the ‘B’ off-cycle is the last payroll cycle in SHARP for FY2020.    Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 29, 2020 will be included with FY2021 transactions and will not be included on the KPAYGL5C file until it is run again on Tuesday night, June 30, 2020.

GHI Adjustments

June is a popular retirement month.  Many employees will retire by June 15^th which would impact the amount of GHI for which the employee should have on his/her final paycheck issued in July 2020.  In order to avoid processing a refund for any employees who have a retirement date greater than June 14, 2020, MAP should be updated with an employee’s termination date as soon as possible.  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’.

JG:NTR:abe
Printable Version of 20-P-037

Summary: Two New Earnings Codes and Agency Guidance Changes for Administering the Federal Families First Coronavirus Relief Act (FFCRA)

Pursuant to the phased re-opening guidelines issued by the Governor on April 30, 2020, there will be a new employee leave policy for those using Families First Coronavirus Recovery Act (FFCRA) leave for childcare purposes effective May 4, 2020. In addition, a new leave policy has been established for those employees considered in the at-risk/high risk populations. 

Earnings Codes:

Two new earnings codes have been added to SHARP effective May 4, 2020 to administer the employee leave changes paid under the new policy guidance.  Agencies should also refer to the Office of Personnel Services SHARP Infolist message issued May 13, 2020 containing guidance for entry of Time Reporting Codes used to record leave authorized under the FFCRA with these changes. The guidance is also posted here.

The following new earnings codes are effective for the pay period beginning May 3, 2020 through May 16, 2020 paid May 29, 2020.

Earnings Code             Description                          Short Description        Effective Date
ADH                         Leave-Emergency High Risk         Lve-COVID             05/04/2020
CVK                         Leave-Emergency Child2               Lve-COVID             05/04/2020

Due to the complexity of the payroll calculations required under the FFCRA, the Time Reporting Code CVK established to track FFCRA leave in Time and Labor is NOT mapped directly to the payroll earnings code in SHARP.  However, Time Reporting Code ADH is mapped to the payroll earnings code in SHARP and will load directly to Payroll from Time and Labor since processing of this code is not tied to the FFCRA rules. 

Payroll Calculations for CVK under FFCRA:

As authorized by the FFCRA, employees are eligible for paid leave subject to daily limits.  Employees utilizing leave provided by the FFCRA due to childcare will still receive paid leave in the amount of two-thirds of their FFCRA-defined regular rate of pay.  However, employees must now telework, use their own accrued leave (compensatory time, holiday compensatory time, sick or vacation) or record leave without pay for the remainder of their time.  NOTE: Administrative leave (ADF) for the remaining one-third pay will no longer be provided beginning May 4, 2020. In addition, ADF will no longer be used to supplement the difference if the employee’s current hourly rate exceeds the Dept. of Labor required regular rate of pay.

Payroll Calculations for ADH:

Employees who are unable to report to work due to being in an at-risk/high-risk population and who are unable to telework will receive paid leave in the amount of two-thirds of their regular pay at their current regular rate.  Employees must telework, use their own accrued leave (compensatory time, holiday compensatory time, sick or vacation) or record leave without pay for the remainder of their time.

A COVID-19 Leave Split chart to help to determine how many hours to split the employee’s hours between the ADH or CVK codes and their own leave can be found in the Time and Labor Documents section of the SHARP website at: SHARP

The Office of Accounts and Reports, Payroll Systems Team, is responsible for adding the new earnings codes and FFCRA calculations in the SHARP System.  Regents’ institutions are responsible for implementing the new earnings codes in their payroll systems in accordance with guidance from the Office of Accounts and Reports and the Kansas Board of Regents. 

Office of Accounts and Reports Contacts:

• Nancy Ruoff, Statewide Payroll Manager(785) 296.2853 Nancy.Ruoff@ks.gov
• Earl Brynds, Payroll Systems Team Lead(785) 296-5376 Earl.Brynds@ks.gov

Office of Personnel Services Time and Labor Contacts:

• Connie Guerrero, Deputy Director Connie.Guerrero@ks.gov
• Brent Smith, Human Resource Professional Brent.Smith@ks.gov

JG:NTR:ewb
Printable Version of 20-P-038

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 Accounts and Reports.  The completed form should be maintained at your agency.  If the items that you provide have been determined to be taxable to the employee, any changes in rates for fiscal year 2021 will require entry into the SHARP system at the Payroll Homepage > Employee Payroll/Benefits Data Tile > Create Additional Pay for fringe benefit income.  FY2021 rate changes for maintenance should be entered into SHARP by 6:00 pm on Monday June 29, 2020 in order to be reflected in the paychecks produced in the first preliminary on-cycle pay calculation for the payroll period ending June 27, 2020 (paychecks dated July 10, 2020). 

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 20-P-039
JG:NTR:abe

Summary: Fiscal Year 2021-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 2021.  The fiscal year 2021 rates will become effective with the on-cycle payroll period beginning June 14, 2020, ending June 27, 2020 and paid July 10, 2020.  The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2020. 

Governor Kelly’s Allotment Plan for FY 2021 includes a one-year moratorium on the KPERS Death and Disability contribution of 1.0% (.4% for Judges).  For all pay periods of FY 2021 only the base KPERS contributions will be made. The legal authority to make allotment reductions is found in the allotment implementation letter from the Secretary of Administration dated June 29, 2020, which is posted on the Division of the Budget website at https://budget.kansas.gov/budget-report/.

Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustments with payroll period end dates that contain an original check date within a moratorium period.  Previous moratoriums for KPERS Death and Disability Insurance contributions were in place for payroll periods with an original check date between April 1, 2010 and June 30, 2010; between April 1, 2011 and June 30, 2011; between April 1, 2012 and June 30, 2012; between April 1, 2013 and June 30, 2013; and between March 25, 2016 and September 30, 2017.

For Regent institutions, previous 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 Accounts and Reports, Payroll Systems Team will update the SHARP system to reflect the changes in employer’s contribution rates.  Regents’ institutions are responsible for ensuring the changes in rates are made in their individual systems.  Regents’ institutions are also responsible for ensuring that the SMART INF06 impacts the correct fiscal year and account codes.

 JG:NTR:abe

Attachment A

Attachment B

Attachment C

Printable Version of 20-P-040