Kansas Department of Administration

FY 2021

21-P-001 State Tax Implications for Teleworking (August 10, 2020)

Informational Circular No.

21-P-001

Effective Date:

Immediately

Contact Name:
Carmen Waters

Ph:
(785) 296-7059

Email:
Carmen.Waters@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

State Tax Withholding Changes Due to Teleworking for COVID-19. 

 

Per the Internal Revenue Service (IRS), taxes are to be withheld for the state in which the individual is performing the work. For individuals employed by the State of Kansas, the state for tax withholding is generally Kansas. However, due to the impacts of the Coronavirus pandemic many agencies have implemented telework policies for their employees. Due to this transition,  employees who live outside the state of Kansas may now be performing their normal job duties on a regular basis within the state they live.

Statewide Payroll will provide a listing to agency payroll contacts of employees for whom the home address in SHARP is not Kansas.  Agencies are asked to review the current work location of each employee to determine if the employee is teleworking part-time or full-time from their home address located outside of the state of Kansas.  For those employees teleworking and living in a state other than Kansas, the agency will need to determine if taxes for the employee’s state of residence need to be withheld.

Some states are offering an exemption from state income tax withholding for employees temporarily teleworking in their home state due to the pandemic.  Of the four states bordering Kansas, only Nebraska is currently offering an exemption from withholding.  Any employee teleworking on a regular basis from Colorado, Oklahoma, or Missouri, or another state that has not waived withholding, will require an update to state tax withholding.  Please note that agencies only need to review and update income tax withholding, as unemployment insurance obligations are monitored and reviewed by Statewide Payroll. 

For those states with no COVID-19 exceptions or no existing exemptions for employees who are teleworking, agencies will need to take the following actions:

 For an employee now living/working (teleworking) from a state other than Kansas:

  • Contact the employee to complete the state tax withholding form for their home state and return it to the agency HR/Payroll office.
  • Add a new State Tax Data row for the employee in SHARP to initiate state tax withholding to the state in which the employee is living and working. The State Tax Data row for Kansas can be left as is currently.
  • Please see the SHARP 9.2 Training and Desk Aids Payroll Courses Lesson 2: Employee Payroll Tax Data for help in completing these changes.
  • See the attached procedures for updating the employee Time Reporter Data, which is required in order to capture the state the employee hours are worked in.  If you have questions with the setup, please contact Heather DeBusk at Heather.DeBusk@ks.gov or via phone at (785) 296-2434.
  • Notify the multi-state withholding teleworker(s) that the individual is responsible for tracking and reporting on the employee timesheet the number of hours worked by State in the pay period.

The instructions in this informational circular address multi-state tax withholding for SHARP agencies.  Regent agencies are responsible for completing any necessary updates to properly calculate and report state tax withholding for employees working in multiple state locations.

Please note the changes to employee data may require both HR and Payroll offices within the agency. For questions on tax data setup please contact Carmen Waters at (785) 296-7059 or by email at Carmen.Waters@ks.gov. For questions regarding the tax changes for teleworkers please contact Amanda Entress at (785) 296-3887 or by email at Amanda.Entress@ks.gov.

 

JG:NTR:abe

 Printable Version of 21-P-001 

Procedures for Updating Employee Time Reporter Data

21-P-002 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #50 (August 19, 2020)

Informational Circular No.

21-P-002

Supersedes Informational Circular No:

20-P-007

Effective Date:

Payroll Period Ending August 22, 2020

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
Amanda.Entress@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Organization Dues Changes for ORG030

 

The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $32.11 to $32.76 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 9, 2020 and ending August 22, 2020, paid September 4, 2020.

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 $32.05 to $32.70 and the fee (ORF030) will remain at $.06 (for a total deduction of $32.76 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 these changes are made in their respective systems effective with the payroll period noted above.

 

JG:NTR:abe

Printable Version of 20-P-002

21-P-003 New Maintain Teleworkers Pages Added to SHARP (September 18, 2020)

Informational Circular No.

21-P-003

Supersedes Informational Circular No:

N/A

Effective Date:

September 18, 2020

Contact Name:
Heather DeBusk

Ph:
(785) 296-2434

Email:
Heather.DeBusk@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
<insert summary information here>

 

Informational Circular 21-P-001 issued August 10, 2020 provided guidance to agencies regarding the multi-state tax withholding setup required for individuals teleworking from a location outside of the state of Kansas.  To assist agencies in tracking, managing and reporting information for employees who are teleworking on a regular basis, new ‘Maintain Teleworkers’ pages have been added to SHARP.  The pages can be accessed using the navigation path Workforce Administration > Job Data > Maintain Telework.  These pages will be added to navigation collections during a future upgrade.

To provide the data necessary to ensure accurate tax reporting, SHARP agencies are required to complete the Maintain Teleworkers pages in SHARP for any current or future employee teleworking outside of the state of Kansas.  The data for current employees should be entered by Friday, October 2nd.  Agencies are also responsible for updating the teleworking status when a teleworking employee returns to work full-time in Kansas or changes out-of-state teleworking locations so that the necessary updates to Employee Tax Data can be completed. 

The use of the Maintain Teleworkers pages is optional for agencies as a tool to track information for employees teleworking from a location in the state of Kansas.  In addition, the use of these pages is optional for Regent agencies as each regent is responsible for maintaining and reporting accurate tax data for regent employees.   

Instructions for entering and maintaining teleworker data are attached to this circular and available at the payroll procedures website at SHARP Telework Procedures.

 

JG:NTR 

Printable version of 21-P-003

21-P-004 New Benefit Plan Type/Benefit Plan/Deduction Code for KPERS-Furloughs (September 24, 2020)

Informational Circular No.

21-P-004

Supersedes Informational Circular No:

N/A

Effective Date:

August 23, 2020

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

New Benefit Plan Type/Benefit Plan/Nontaxable Deduction Code to Record KPERS Contributions for Employees on Furlough

 

Although there has not been a need for widespread furloughs as a result of the ongoing pandemic, a few State agencies have implemented limited furloughs due to funding limitations.  In processing furlough hours for those agencies, Statewide Payroll and KPERS have identified the need for additional configuration in SHARP to meet the KPERS contribution collection and reporting requirements per Kansas statutes.

Pursuant to K.S.A. 74-49, employees placed on furlough without pay continue to receive the benefit of KPERS contributions for the duration of the furlough.  During the furlough period, the employer is required to pay the combined employee and employer contributions for the specified KPERS rates on behalf of the employee and report to KPERS those contributions with the amount of compensation that would have been paid to the employee had the employee not been placed on furlough.

Therefore, to meet KPERS requirements, a new KPERS-Furloughs deduction code, benefit plan type and benefit plan will be added to SHARP.  The use of the current furlough time reporting code/earnings code (FU1) will trigger the processing of the new benefit plan type/benefit plan/deduction code in SHARP.  For a SHARP employee impacted by an agency furlough, the agency will need to add the new 7F benefit plan type to the Retirement Plans page for the employee.  The KPERS-Furlough codes will be added to SHARP effective for the payroll period beginning August 23, 2020, ending September 5, 2020, paid September 18, 2020. 

The new KPERS-Furloughs benefit plan type, benefit plan and nontaxable (employer only) deduction code are: 

PLAN
TYPE
    DEDUCTION CODE      DESCRIPTION       SHORT DESCRIPTION     BENEFIT PLAN      BENEFIT PLAN DESCRIPTION
7F RETREF KPERS-Furloughs KPERS  PF  KPERS Retirement Code PF

 

The PF Benefit Plan will be established with a rate of 20.23% which is derived from the addition of the current employee rate (6%) plus the current employer rate for regular KPERS benefit plan P members (14.23%).  Additional Furlough benefit plans will be established if needed for other KPERS member types on furlough with the different KPERS rates.  If required to be established, these will be communicated via future informational circulars.

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 that these changes are reflected in their individual systems. 

JG:NTR:ewb

Printable Version of 21-P-004

21-P-005 SHARP Bi-Weekly Payroll Schedule for 2021 (October 5, 2020)

Informational Circular No.

21-P-005

Supersedes Informational Circular No:

20-P-011

Effective Date:

Calendar Year 2021

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2021

 

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2021.  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 7:00 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 6:30 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 7:00 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 Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll.   Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.

 JG:NTR:abe

2021 On Cycle

2021 Off Cycle

Printable Version of 21-P-005

21-P-006 Change in Social Security Base Rate (October 14, 2020)

Informational Circular No.

21-P-006

Supersedes Informational Circular No:

20-P-014

Effective Date:

January 1, 2021

Contact Name:
Carmen Waters

Ph:
(785) 296-7059

Email:
Carmen.Waters@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

Social Security Wage Base Increase to $142,800 effective January 1, 2021

 

The Social Security wage base for OASDI will be $142,800 for calendar year 2021.  This is a $5,100 increase from the wage base of calendar year 2020 of $137,700.  The OASDI tax rate for 2021 will be 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2021 will be $8,853.60.   There continues to be no limit on wages subject to the Medicare tax in 2021.  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 $8,853.60 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:abe

 Printable Version of 21-P-006

21-P-007 New Benefit Plans/Deduction Codes for Voluntary Supplemental Insurance for Plan Year 2021 (October 15, 2020)

Informational Circular No.

21-P-007

Supersedes Informational Circular No:

N/A

Effective Date:

December 13, 2020

Contact Name:
Jude Overton

Ph:
(785) 296-2290

Email:
Jude.Overton@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
New Benefit Plans/Deduction Codes for The Hartford Voluntary Supplemental Insurance for Plan Year 2021

 

The Health Care Commission has approved a new vendor, The Hartford, for the administration of Voluntary Supplemental Insurance (VSP) beginning 1/1/2021.

VSP will continue to be a payroll deduction for the State of Kansas employees.  Therefore, new benefit plans and deduction codes will be added to SHARP.  The new VSP payroll deductions will be processed in SHARP effective for the payroll period beginning December 13, 2020, ending December 26, 2020, paid January 8, 2021.

The VSP benefit plan type, new benefit plans and deduction codes are:

PLAN TYPE DEDUCTION CODE DESCRIPTION SHORT DESCRIPTION BENEFIT PLAN BENEFIT PLAN DESCRIPTION
29 HVAIAT Hartford Supp Accident Ins AT VolSuppIns HVAIAT Hartford Supp Accident Ins AT
29 HVCIP1 Hartford Critical Ill P1 AT VolSuppIns HVCIP1 Hartford Critical Ill P1 AT
29 HVCIP2 Hartford Critical Ill P2 AT VolSuppIns HVCIP2 Hartford Critical Ill P2 AT
29 HVHIP1 Hartford Hosp Ind P1 AT VolSuppIns HVHIP1 Hartford Hosp Ind P1 AT
29 HVHIP2 Hartford Hosp Ind P2 AT VolSuppIns HVHIP2 Hartford Hosp Ind P2 AT

 

The VSP will be included on the State Employee Health Plan BERF file provided to SHARP and to each Regent payroll system to implement the new deduction codes via the existing payroll process.  The first and second BERF file of the month will include the VSP deductions.  Please note that VSP payroll deductions will continue to be offered on an after-tax basis.  In addition, it is possible that various refunds/adjustments for 2020 MetLife VSP deduction corrections could also be included on some of the 2021 BERF files.  However, other than these refunds/adjustments for 2020 MetLife deductions, employees cannot maintain payroll deductions for MetLife supplemental insurance plans after 12/31/2020.

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 that these changes are reflected in their individual systems.  In addition, Regent’s institutions should be prepared to test their payroll files for the new deduction/benefit plans by November 13, 2020.

JG:NTR:jko

Printable Version of 21-P-007

21-P-008 Key Payroll Processing Dates in November 2020 (October 30, 2020)

Informational Circular No.

21-P-008

Supersedes Informational Circular No:

20-P-016

Effective Date:

November 2020

Contact Name:
Joyce Dickerson

Ph:
(785) 296-3979

Email:
Joyce.Dickerson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Payroll processing schedule changes due to the November 2020 holidays.  

 

Wednesday, November 11, 2020 (Veterans' Day), Thursday, November 26, 2020 and Friday, November 27, 2020 (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 4, 2020

The second on-cycle preliminary pay calculation for the period ending October 31, 2020 will occur November 4, 2020.

Regents’ on-cycle files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 4, 2020. (These files would normally be due Thursday, November 5, 2020.)

Thursday, November 5, 2020

The third on-cycle preliminary pay calculation for the period ending October 31, 2020 will occur November 5, 2020.

Friday, November 6, 2020

Final pay confirmation for the on-cycle payroll for the period ending October 31, 2020 will occur November 6, 2020.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM.  After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created. All deduction and tax data changes must be entered by 7:00 PM on November 6, 2020 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 13, 2020.

Regents’ Run A off-cycle payroll files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 6, 2020.

Sunday, November 8, 2020

Regents’ on-cycle payroll files for the period ending October 31, 2020 will be processed on this date.

Monday, November 9, 2020

The Run A off-cycle for the period ending October 31, 2020 will be processed November 9, 2020. SHARP agencies have until 7:00 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 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated November 13, 2020.

The Regents’ Run A off-cycle payroll files for the period ending October 31, 2020 will also be processed on this date.

Regents’ Run B off-cycle payroll files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 9, 2020.

Tuesday, November 10, 2019

The Run B off-cycle for the period ending October 31, 2020 will be processed November 10, 2020. SHARP agencies have until 7:00 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 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run B off-cycle will be dated November 16, 2020.

The Regents’ Run B off-cycle payroll files for the period ending October 31,2020 will also be processed on this date.

Wednesday, November 11, 2020

Veterans' Day Holiday

Time Administration runs hourly from 7:30 AM – 6:30 PM

Friday, November 13, 2020

Payday for the payroll period ending October 31, 2020.

Regents’ Run C off-cycle payroll files for the period ending October 31, 2020 must be received by the Department of Administration by 4:00 PM on November 13, 2020.

 Monday, November 16, 2020

The Run C off-cycle for the period ending October 31, 2020 will be processed November 16, 2020. SHARP agencies have until 7:00 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 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run C off-cycle will be dated November 19, 2020.

Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 14, 2020 to the Department of Administration by 6:00 PM.

The Regents’ Run C off-cycle payroll files for the period ending October 31, 2020 will also be processed on this date.

Tuesday, November 17, 2020

Paysheets for the on-cycle payroll for the period ending November 14, 2020 will be created on Tuesday, November 17,

2020.  For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 7:00 PM on November 17, 2020 in order to be reflected on the paysheets for this period. 

The first on-cycle preliminary pay calculation for the period ending November 14, 2020 will also occur November 17, 2020.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM.  After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created.

NOTE: Terminations and Retirements must be entered by 7:00 PM on November 17, 2020 and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.

Wednesday, November 18, 2020

The second on-cycle preliminary pay calculation for the period ending November 14, 2020 will occur November 18, 2020 

Regents’ on-cycle files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 18, 2020. (These files would normally be due Thursday, November 19, 2020.)

Thursday, November 19, 2020

The third on-cycle preliminary pay calculation for the period ending November 14, 2020 will occur November 19, 2020. 

Friday, November 20, 2020

Final pay confirmation for the on-cycle payroll for the period ending November 14, 2020 will occur November 20, 2020.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM.  After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created. All deduction and tax data changes must be entered by 7:00 PM on November 20, 2020 in order to be reflected in the final paycheck created for the employee. Paychecks for the on-cycle will be dated November 25, 2020. 

Regents’ Run A off-cycle payroll files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 20, 2020.

Sunday, November 22, 2020

Regents’ on-cycle payroll files for the period ending November 14, 2020 will be processed on this date.

Monday, November 23, 2020

The Run A off-cycle for the period ending November 14, 2020 will be processed November 23, 2020. SHARP agencies have until 7:00 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 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated November 25, 2020.

The Regents’ Run A off-cycle payroll files for the period ending November 14, 2020 will also be processed on this date.

Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 14, 2020 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 25, 2020.)

Regents’ Run B off-cycle payroll files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 23, 2020.

Tuesday, November 24, 2020

The Run B off-cycle for the period ending November 14, 2020 will be processed November 24, 2020.  SHARP agencies have until 7:00 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 6:30 PM. Payable time must be approved by 7:00 PM.  Paychecks for the Run B off-cycle will be dated December 1, 2020. (It would normally be Monday, November 30, 2020.) 

The Regents’ Run B off-cycle payroll files for the period ending November 14, 2020 will also be processed on this date.

Wednesday, November 25, 2020

Payday for the payroll period ending November 14, 2020. (It would normally be Friday, November 27, 2020)

Regents’ Run C off-cycle payroll files for the period ending November 14, 2020 must be received by the Department of Administration by 4:00 PM on November 25, 2020. (These files would normally be due Friday, November 27, 2020.)

Thursday, November 26, 2020

Thanksgiving Holiday

Time Administration runs hourly 7:30 AM – 6:30 PM

Friday, November 27, 2020

Thanksgiving Holiday

Time Administration runs hourly 7:30 AM – 6:30 PM

Beginning Sunday, November 29, 2020 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2020, 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 Infolist

JG:NTR:abe

Attachment

Printable Version of 21-P-008

21-P-009 Deferred Compensation and Tax-Sheltered Annuity Limits for Calendar Year 2021 (November 10, 2020)

Informational Circular No.

21-P-009

Supersedes Informational Circular No:

20-P-017

Effective Date:

January 1, 2021

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
2021 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, 2021 as follows:

457(b) Deferred Compensation:

The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit remains unchanged at $19,500 or 100% of includible compensation.

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit remains unchanged at $39,000. The special catch-up limit is twice the general deferral limit and is only available to employees who are within three years of normal retirement age.

The Deferred Compensation catch-up provision for participants who are 50 years of age or older (Benefit Plan 457DEC) annual contribution limit remains at $6,500 for 2021 making the total unchanged at $26,000. 

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 2021 is the lesser of $58,000 or 100% of compensation, increased from $57,000 for 2020.

The annual compensation limit used for calculating mandatory employee and employer contributions is increased from $285,000 (for 2020) to $290,000 (for 2021).  The $290,000 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 $29,000 ($290,000 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 $40,600 ($290,000 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 $425,000 (for 2020) to $430,000 (for 2021).  However, participants should note their maximum annual compensation limit will be $414,285.71, since the $414,285.71 annual compensation multiplied by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in $58,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) remains unchanged at $19,500 for 2021.  The age 50 or older catch-up provision remains unchanged at $6,500 for 2021.  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 2021) 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:ckp

Printable Version of 21-P-009

21-P-010 December 2020 Payroll Processing (November 30, 2020)

Informational Circular No.

21-P-010

Supersedes Informational Circular No:

N/A

Effective Date:

Immediately

Contact Name:
Joyce Dickerson

Ph:
(785) 296-3979

Email:
Joyce.Dickerson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

December 2020 Payroll Processing and Updated December Processing Calendar

 

As 2020 calendar year-end approaches, the Office of Accounts and Reports is making preparations for the issuance of calendar year 2020 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2020 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2021 balances; a corrected W-2 (Form W-2C) for 2020 will not be issued for the employee involved.

FINAL 2020 PAYCHECK

The final on-cycle paychecks for calendar year 2020 will be issued December 23, 2020. Payroll transactions for the December 23, 2020 on-cycle paychecks will be posted to SMART on Tuesday night, December 21, 2020.  

 

Paychecks for the final off-cycle for calendar year 2020, which is the ‘C’ cycle for pay period ending December 12, 2020, will be issued on December 31, 2020 (generated from the off-cycle processed on December 28, 2020).

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 7:00 p.m. on December 28, 2020 to enter paycheck adjustment requests for any 2020 paychecks.  Adjustments processed in the December 28, 2020 off-cycle payroll will be reflected on the employee’s 2020 Form W-2.  Please remember for SHARP employees 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 2020 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 9, 2020. Please note that agencies can send DA-180 forms after December 9, 2020 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 9, 2020 on or before the December 28, 2020 off-cycle.  However, if a large volume of DA-180 forms are received on or after December 9, 2020 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2020 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 2021, adjustment requests entered after December 28, 2020 which are adjusting paychecks issued prior to January 1, 2021 will not result in a W-2C; the adjustment will update the employee’s 2021 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 28, 2020 will update the employee’s 2021 payroll balances.

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 12, 2020, paid December 23, 2020 are due to the Department of Administration by 4:00 p.m. on December 16, 2020.

The Regent on-cycle for the pay period ending December 12, 2020, paid December 23, 2020 will be run on the night of December 20, 2020 (normally run on Monday, December 21, 2020).

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2020 Paycheck ReversalsRegent Institutions must submit all transmittals for 2020 paycheck reversals by 4:00 p.m. on Wednesday, December 23, 2020 in order to update the employee’s 2020 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 2021 payroll balances regardless of the paycheck issue date of the paycheck being reversed

2020 Adjustments and Supplementals

In order to update employee balances for 2020, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Wednesday, December 23, 2020.  The Run C off-cycle for the pay period ending December 12, 2020 generated on the night of Monday, December 28, 2020 will have a check issue date of December 31, 2020; all activity for this off-cycle will be reflected in the employees’ 2020 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 2020 date.

2021 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2021, any adjustments or supplementals submitted after 4:00 p.m. on Monday, December 28, 2020, will be considered to be 2021 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2021 business, the employee’s 2021 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 2021, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2021 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 2021 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, 2020 deadline for the December 28, 2020 Run C’s off-cycle payroll will not be processed until the April 12, 2021 off-cycle payroll.  The deadline for submitting payroll interface files for the April 12, 2021 off-cycle is 4:00 p.m. on Friday, April 9, 2021.

GENERAL REMINDERS

United Way and Community Health Charities

The deduction END date on the general deduction page for 2020 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 13, 2020 and December 26, 2020 in order for the last 2020 deduction to be taken on the paycheck issued December 23, 2020 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 2021, agencies can enter a new row effective-dated between December 13, 2020 and December 26, 2020 in order for the first deduction for United Way or Community Health Charities for 2021 to be taken on the January 8, 2021 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 12, 2021 should be entered.  Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2021. 

A batch process will run the night of December 23, 2020 to establish the fee portion (deduction code UTFXXX) of the 2021 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 2021.  This process will reduce the 2021 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 2021 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 28, 2020 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.  Please note that if agencies need to enter any 2021 United Way/Community Health Charities deductions after December 23, 2020, then both the UTDXXX and UTFXXX deduction codes for the employee will need to be entered by the agency.

Tax Information

Pursuant to IRS regulations, all employees claiming an exemption from federal withholding must file a new W-4 each calendar year. To facilitate this requirement, an email notification will be sent on December 1, 2020 to all SHARP employees who are exempt from federal withholding.  Notifications will be sent to the employee’s email address listed under ‘Update My Profile’ in the Employee Self Service Center (ESS).  Agencies are encouraged to review the primary email address stored in ESS for employees by executing the Payroll Workcenter query titled ‘ESS Primary Email by Agency’ and contact employees to make updates when necessary due to an invalid/missing email address. Notifications will be sent to the agency payroll supervisor email address for those employees who lack an individual email address, and agencies will need to distribute the notifications to their employees.  For agency payroll/human resource staff, a worklist will be created to identify these employees. The worklist will be sent on December 1, 2020 to the agency staff that has been designated as the Agency Payroll Administrator through the SHARP security roles.  The worklist can be accessed two ways in SHARP:  from the Home page, click on Worklist under Main Menu on the left side of the screen, or click on Worklist on the top right side of the screen next to Home.  For each employee on the worklist, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2021.  If your agency has no employees claiming an exemption from federal withholding the worklist will be empty. 

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2021 W-4s.  Employees should submit new paper 2021 W-4s by December 30, 2020 to allow adequate time for processing.  Employees must use the 2021 IRS W-4 Form to submit a request for exemption from withholding for calendar year 2021. 

Agency personnel have until 7:00 p.m. on December 30, 2020 to enter all paper W-4s into the system.  Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter.  Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2021.

The KPAY320 will be processed the evening of December 30, 2020.  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, 2021 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2021 effective-dated row will update the employee’s marital status to ‘single’ with no adjustments. 

For any 2021 paper W-4s (for employees claiming exemption from withholding) received between December 30, 2020 and January 2, 2021, agency personnel will need to enter the data with a January 2, 2021 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2021 for any electronic W-4s received in this time period.

The KPAY320 will only insert new effective-dated rows for federal withholding tax.  Employees should be advised to also review their state tax withholding to determine if changes are needed.  Employees working in Kansas will need to complete a new Form K-4, either paper or on-line, to make any needed state tax withholding change.  SHARP employees are encouraged to use the Employee Self Service functionality to file their 2021 K-4’s.

Deduction Information

All deductions for calendar year 2021 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.

Working After Retirement KPERS

Effective 12/13/2020 all employees that currently have the KPERS Working After Retirement code AXD should be returned to code AC for the new calendar year. After the employee has earned $25,000 in the new calendar year you can change them to the AXD code effective with the next pay period after earnings reach $25,000.

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 ‘C’ cut-off date of December 28, 2020.  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 2020 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 12, 2020 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, 2020 will be sent to the State of Kansas Set-Off Program for collection.  Agencies are allowed to request certain debts not be submitted to the Set-Off Program for the period of one calendar year by submitting a DA-181, SHARP Exclusion Request Form to Payroll Services. All DA-181 forms are due to Payroll Services no later than 4:00 p.m. on December 28, 2020.  Please remember that these forms are only for those arrearages that are actively being collected.

On December 30, 2020, 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 7:00 p.m. on January 5, 2021 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 5, 2021 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, 2020.  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 are anticipated to be executed anytime between January 5, 2021 and January 10, 2021.  Electronic W-2 forms through Employee Self Service are anticipated to be available on or before January 10, 2021.  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, 2021.  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 2020 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 Infolist.

Attachment

Printable Version of 21-P-010

JG:NTR:abe 

21-P-011 2021 Percentage Method Tables for Federal Tax Withholding (December 17, 2020)

Informational Circular No.

21-P-011

Supersedes Informational Circular No:

20-P-021

Effective Date:

January 1, 2021

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2021 

 

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2021 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, 2021.  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 remained at $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, left side of the attachment) is 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 2, right side of the attachment) is 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 2021 has increased to $8,250 if the NRA employee has not submitted a Form W-4 for 2020 or later or $12,550 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 2021 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 2021.

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, 2021 to file their 2021 W-4s.  The 2021 Form W-4 has been published by the IRS and can be found on the Office of Accounts and Reports website at https://admin.ks.gov.production.premier.siteviz.com/for-state-agencies/agency-information-center/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

2020 must file a new 8233 form for calendar year 2021 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, Statewide Payroll, 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:abe 

Attachment:  IRS Publication 15-T (2021)

Worksheet 1. Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems and 2021 Annual Percentage Method Tables

Printable Version of 21-P-011

21-P-012 Employee Taxability of State-Owned or Leased Vehicles (December 23, 2020)

Informational Circular No.

21-P-012

Supersedes Informational Circular No:

20-P-028

Effective Date:

January 1, 2021

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
Amanda.Entress@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2021

 

The Internal Revenue Service (IRS) announced the standard mileage rate decreased to 56 cents beginning January 1, 2021 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 56 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 2021 and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $51,100 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. 

*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).

JG:NTR:abe

Printable Version of 21-P-012

21-P-013 Additional New Earnings Codes and Agency Guidance Concerning the Families First Coronavirus Response Act (FFCRA) (January 6, 2021)

Informational Circular No.

21-P-013

Supersedes Informational Circular No:

N/A

Effective Date:

January 1, 2021

Contact Name:
Earl Brynds

Nancy Ruoff

Ph:
(785) 296-5376

(785) 296-2853

Email:
Earl.Brynds@ks.gov

Nancy.Ruoff@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

Three New Earnings Codes and Agency Guidance Concerning the Federal Families First Coronavirus Response Act (FFCRA) 

 

The following changes to employee leave policies were outlined in the COVID-19 Leave Effective January 1st guidelines issued on December 29, 2020 which stated:

“The provisions of the Families First Coronavirus Response Act (FFCRA) providing employees with paid leave for various reasons related to COVID-19 expire on December 31st and the bill that Congress passed last week did not provide for any additional leave. So, as of January 1st, the Federal government is not requiring employers to provide employees with paid leave for any circumstances related to the ongoing pandemic.”  

Governor Kelly has decided that State agencies under her jurisdiction will continue to provide paid leave to employees for certain absences related to COVID-19.

Earnings Codes:

Three new earnings codes have been added to SHARP effective January 1, 2021 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 January 5, 2021 containing guidance for entry of Time Reporting Codes used to record leave with these changes.  The guidance is also posted at COVID-19 ADK (Childcare), ADQ (Quarantine), and ADR (High Risk) Instructions.  

The following new earnings codes are effective for the pay period beginning December 27, 2020 through January 9, 2021 paid January 22, 2021.                        

Earnings Code Description  Short Description Effective Date
ADK Leave-COVID Childcare Lve-COVID 01/01/2021
ADQ Leave-COVID Quarantine Lve-COVID 01/01/2021
ADR Leave-COVID High Risk Lve-COVID 01/01/2021

Payroll Calculations for ADQ:

ADQ replaces the existing ADC (Leave-Emergency Self) and CVF (Leave-Emergency Family) time reporting code/earnings code. This single leave code provides full paid leave at the employee’s existing rate of pay for all absences from work due to a quarantine, whether it is because of the employee testing positive, a household contact testing positive, or the employee being a close contact of someone who has tested positive, or for ongoing health issues following the mandatory quarantine.

  • The state is covering this leave at 100%. Example, if Quarantined for one day, 8 hours of ADQ is recorded on the employee’s timesheet.
  • There is no maximum to the number hours being recorded for this code (Usage can be more than 80 hours in totality). 

Payroll Calculations for ADK:

ADK replaces the existing CVK (Leave-Emergency Child2) time reporting code/earnings code. Employees who are not able to work due to childcare issues related to COVID-19 will receive leave in the amount of 2/3 of their time until January 9, 2021 and then in the amount of 1/2 of their time effective January 10, 2021 and later at the employee’s existing rate of pay and can supplement the remainder with their own accrued leave, or leave without pay, if they so choose. Effective January 1, 2021 FMLA will no longer be tracked for leave taken using the ADK code.

Payroll Calculations for ADR: 

ADR replaces the existing ADH (Leave-Emergency High Risk) time reporting code/earnings code. Employees considered at High Risk, will receive leave in the amount of 2/3 of their time until January 9, 2021 and then in the amount of 1/2 of their time effective January 10, 2021 and later, paid at the employee’s existing rate of pay, and can supplement the remainder with their own accrued leave, or leave without pay, if they so choose.

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

 

JG:NTR:ewb

Printable Version of 21-P-013

21-P-014 W-2 Wage and Tax Statements for Calendar Year 2020 (January 8, 2021)

Informational Circular No.

21-P-014

Supersedes Informational Circular No:

20-P-022

Effective Date:

Immediately

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
Information Pertaining to Employee 2020 W-2 Statements

 

The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2020 W-2 Wage and Tax Statement for each employee of your agency.  Agencies will find the report in their agency mailbox on the MVS with a date of January 5, 2021.  This report should be downloaded and retained by your agency to meet your historical record needs.  This report will be removed from your MVS mailbox and will be no longer available for downloading after February 5, 2021.  

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 2020 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 2020 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 2020.  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. Per Federal reporting regulations, employees who have received Families First Coronavirus Response Act (FFCRA) leave in 2020 may have multiple pages to their W-2 to report the required FFCRA information. 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 2020 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, 2021.  At that time, they will be destroyed.

In cases where the 2020 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 2016 through 2020, 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 (2020, 2019, 2018, 2017, or 2016) the reissued W-2 is needed.  Duplicate W-2’s for 2016- 2019 are currently available, and duplicate W-2’s for 2020 will be available starting on Wednesday, February 3, 2021.   

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 2020 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 2020 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 31, 2020 are included in the 2020 W-2 amounts.   

Attachment A

Attachment B

Printable Version of 21-P-014

 

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21-P-015 2021 W-2 Production Report Schedule (January 8, 2021)

Informational Circular No.

21-P-015

Supersedes Informational Circular No:

20-P-023

Effective Date:

Immediately

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:
2021 W-2 Production Report Schedule 

 

In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Statewide Payroll staff at the end of the calendar year, the 2021 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 2021 W-2 production reports are scheduled to be generated:

Friday, April 2, 2021

Friday, April 30, 2021

Friday, May 28, 2021

Friday, June 25, 2021

Friday, July 23, 2021

Friday, August 20, 2021

Friday, September 17, 2021

Friday, October 15, 2021

Friday, November 12, 2021

Wednesday, November 24, 2021

Monday, December 6, 2021

Monday, December 13, 2021

Monday, December 20, 2021

Monday, December 27, 2021

Thursday, December 30, 2021 12:00 PM – DEADLINE FOR W-2 ADJUSTMENTS

Thursday, December 30, 2021

Tuesday, January 4, 2022 - 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 2021 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 30, 2021 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. 

JG:NTR:abe

Printable Version of 21-P-015

21-P-016 Change in Organization Dues Deduction for AFSCME Council 61, Local 1357 (February 5, 2021)

Informational Circular No.

21-P-016

Supersedes Informational Circular No:

20-P-027

Effective Date:

Payroll Period Ending February 20, 2021

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
Amanda.Entress@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

Organization Dues Change for ORG357

 

The organization dues for members of the AFSCME Council 61, Local 1357, will increase from $19.81 to $20.16 per biweekly payroll period.  The new rate will become effective with the payroll period beginning February 7, 2021 and ending February 20, 2021, paid March 5, 2021.

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 $19.75 to $20.10 and the fee (ORF357) will remain at $.06 (for a total deduction of $20.16 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.

JG:NTR:abe

Printable Version of 21-P-016

21-P-017 Payroll Processing Date Changes for the May 1, 2021 Pay Period End Date Due to the SHARP Upgrade (April 9, 2021)

Informational Circular No.

21-P-017

Supersedes Informational Circular No:

N/A

Effective Date:

April/May 2021

Contact Name:
Earl Brynds

Ph:
(785) 296-5376

Email:
Earl.Brynds@ks.gov

Approval: Nancy Ruoff
(Original Signature on File)

Summary:

SHARP Upgrade and Impact on Payroll Processing Dates in April/May 2021

 

The Department of Administration is pleased to announce that the SHARP system is being upgraded to a newer version. The SHARP upgrade is scheduled to begin Saturday, May 8, 2021 and will continue through Monday, May 10, 2021.  The upgraded version of SHARP will look slightly different than the current version.   The current version uses a dark blue background, dark blue header and black font titles on the individual tiles on the home pages.  The upgraded version will have a light blue background, black header and blue font titles on the individual tiles on the home pages.   However, the functionality of the SHARP pages (the actions you take when you reach a certain page) is not changing.

Also, a change to the View Paycheck tile in Employee Self-Service that employees will notice is the addition of summary paycheck information added to the front of the tile for the employee’s most recent confirmed paycheck.  The screen print below shows an example of how this tile will look.

View paycheck information

This informational circular also covers the key dates and Payroll/Time and Labor and Job Data changes in SHARP as a result of the transition to the SHARP upgrade. On-cycle and off-cycle dates have been changed in late April/early May in order to accommodate the transition to the new version of SHARP.  Please review carefully the information contained in this circular.

Due to the SHARP upgrade, scheduled to begin Saturday, May 8, 2021, changes are required to the ‘normal’ payroll processing schedule.  Agencies are asked to note the payroll processing schedule due dates, some of which are occurring on a different day of the week than normally scheduled. 

 

Friday, April 30, 2021

Payday for the payroll period ending April 17, 2021.

First opportunity for Time and Labor interface agencies to submit time and labor (INF42/KAGYTL42) files for the period ending May 1, 2021 to the Department of Administration for processing by 6:00 PM on April 30, 2021.  (These files would normally be due Monday, May 3, 2021.)  Last opportunity to submit files will be noon on Monday, May 3, 2021.

Regents’ Run C off-cycle payroll files for the period ending April 17, 2021 must be received by the Department of Administration by 4:00 PM on April 30, 2021.

Monday, May 3, 2021

Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending May 1, 2021 to the Department of Administration by noon to be processed at 12:30 p.m. on May 3, 2021.

NOTE: Terminations and Retirements must be entered by 7:00 PM on May 3, 2021 and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.

Paysheets for the on-cycle payroll for the period ending May 1, 2021 will be created on Monday, May 3, 2021. (Paysheets would normally be created on Tuesday, May 4, 2021.)  For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 7:00 PM on May 3, 2021 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending May 1, 2021 will also occur May 3, 2021.  For SHARP agencies, all employees’ reported time must be entered (and approved if applicable) into SHARP by 6:30 PM.  After Time Administration runs at 6:30 PM, payable time must be approved by 7:00 PM, in order for a paycheck record to be created. Please note that there will be only two SHARP on-cycle preliminary payroll calculations for the pay period ending May 1, 2021.

The Run C off-cycle for the period ending April 17, 2021 will be processed May 3, 2021.  SHARP agencies have until 7:00 PM on this date to enter supplementals and/or adjustment run controls for the Run C off-cycle.  All employees’ reported time must be entered (and approved if applicable) by 6:30 PM. Payable time must be approved by 7:00 PM.  Paychecks for the Run C off-cycle will be dated May 6, 2021.  

Tuesday, May 4, 2021

The second on-cycle preliminary pay calculation for the period ending May 1, 2021 will occur May 4, 2021.

Regents’ on-cycle files for the period ending May 1, 2021 must be received by the Department of Administration by 4:00 PM on May 4, 2021.

Wednesday, May 5, 2021

Final pay confirmation for the on-cycle payroll for the period ending May 1, 2021 will occur May 5, 2021.  For SHARP agencies, all employees’ payable time must be approved, by 7:00 PM on May 5, 2021 in order for a paycheck record to be created/confirmed.  All deduction and tax data changes must be entered by 7:00 PM on May 5, 2021 in order to be reflected in the final paycheck created for the employee.

Thursday, May 6, 2021

The Regents’ on-cycle payroll files for the period ending May 1, 2021 will be processed on this date.  (This Regents’ on-cycle would normally be scheduled for Monday, May 10, 2021.)

Regents’ Run A off-cycle payroll files for the period ending May 1, 2021 must be received by the Department of Administration by 4:00 PM on May 6, 2021.  (These files would normally be due Friday, May 7, 2021.)

Friday, May 7, 2021

The Run A off-cycle for the period ending May 1, 2021 will be processed May 7, 2021. (This off-cycle would normally be scheduled for Monday, May 10, 2021.)   SHARP agencies have until 7:00 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 6:30 PM. Payable time must be approved by 7:00 PM. Paychecks for the Run A off-cycle will be dated May 14, 2021.  NOTE:  This off-cycle is the final payroll cycle run before the SHARP upgrade begins.

The Regents’ Run A off-cycle payroll files for the period ending May 1, 2021 will also be processed on this date.

Saturday, May 8, 2021

SHARP system and Employee Self Service shut down.  SHARP upgrade begins. 

Sunday, May 9, 2021

SHARP system and Employee Self Service closed.  SHARP upgrade continues.

Monday, May 10, 2021

SHARP system and Employee Self Service open to core users only for validation. 

No batch jobs processing. 

Tuesday, May 11, 2021

SHARP system and Employee Self Service open to all users.

Beginning Tuesday, May 11, 2021 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the months of April/May 2021, which highlights key payroll processing activity for these months.  The attached partial calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

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

JG:NTR:ewb 

Attachment

Printable Version of 21-P-017

21-P-018 Fiscal Year End Payroll Processing for FY 2021 (May 28, 2021)

Informational Circular No.

21-P-018

Supersedes Informational Circular No:

20-P037

Effective Date:

Immediately

Contact Name:
Joyce Dickerson

Ph:
(785) 296-3979

Email:
Joyce.Dickerson@ks.gov

Approval: Sunni Zentner
(Original Signature on File)

Summary:
Summary of Fiscal Year End Payroll Processing 

 

This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.

Note:  Another informational circular regarding the fiscal year 2022 payroll contribution rates will be issued as soon as the information becomes available.

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted.  Supplementals and adjustments that are processed for pay periods ending on or before June 12, 2021 will use fiscal year 2021 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 12, 2021 will use fiscal year 2022 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 23, 2021, paid June 28, 2021) for the pay period ending June 12, 2021 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2021 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 (BUD006) is scheduled to run during the batch cycle the night of June 20, 2021.  In that process, a new row will be added to the Department Budget tables with an effective date of June 13, 2021 (beginning date of the first on-cycle payroll charged to FY2022).  The Budget End Date will be June 11, 2022. 

Agencies should not enter any rows in the Department Budget table with an effective date greater than or equal to June 13, 2021 until agency notification has been received that the BUD006 process ran successfully.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Thursday June 24, 2021 after the ‘B’ off-cycle process has been completed for the June 12, 2021 pay period end date.  A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 24.  Agencies are encouraged to complete all FY2021 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 23, 2021, since the ‘B’ off-cycle is the last payroll cycle in SHARP for FY2021.    Otherwise, any adjustments processed in the ‘C’ off-cycle on Monday, June 28, 2021 will be included with FY2022 transactions and will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 30, 2021.

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’. 

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Printable Version of 21-P-018

21-P-019 Housing, Food Service and Other Employee Maintenance (June 16, 2021)

Informational Circular No.

21-P-019

Supersedes Informational Circular No:

20-P-039

Effective Date:

July 1, 2021

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Sunni Zentner
(Original Signature on File)

Summary:

Annual review of housing, food service and other employee maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9 

 

Attached is form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete.  It is not necessary to return this form to the Office of 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 2022 will require entry into the SHARP system at the Payroll Homepage > Employee Payroll/Benefits Data Tile > Create Additional Pay for fringe benefit income.  FY2022 rate changes for maintenance must be entered into SHARP by 7:00 pm on Tuesday June 29, 2021 in order to be reflected in the paychecks produced in the on-cycle pay calculation for the payroll period ending June 26, 2021 (paychecks dated July 9, 2021). 

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 21-P-019

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21-P-020 Fiscal Year 2022 Payroll Contribution Rates (June 22, 2021)

Informational Circular No.

21-P-020

Supersedes Informational Circular No:

20-P-040

Effective Date:

Pay Period Beginning June 13, 2021; Ending June 26, 2021; Paid July 9, 2021

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Sunni Zentner
(Original Signature on File)

Summary:

Fiscal Year 2022-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 2022.  The fiscal year 2022 rates will become effective with the on-cycle payroll period beginning June 13, 2021, ending June 26, 2021 and paid July 9, 2021.  The withholding rates for OASDI, Medicare, federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2021.  

For Fiscal Year 2022, the employer’s contribution to KPERS Death and Disability Insurance will be 1.00% (except for retirement codes J1, J2, J3 which are .4%). Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustments with payroll period end dates that contain an original check date within a moratorium period.  Previous moratoriums for KPERS Death and Disability Insurance contributions were in place for payroll periods with an original check date between 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; between March 25, 2016 and September 30, 2017; and between July 10, 2020 and June 25, 2021. 

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.

 

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Attachment A

Attachment B

Attachment C

Printable Version of 21-P-020

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