Kansas Department of Administration

FY 2022

22-P-001 2021 Percentage Method Tables for State Tax Withholding (July 27, 2021)

Informational Circular No.

22-P-001

Supersedes Informational Circular No:

17-P-026

Effective Date:

Payroll Period Beginning July 11, 2021; Ending July 24, 2021; Paid August 6, 2021

Contact Name:
Amanda Entress

Ph:
(785) 296-3887

Email:
Amanda.Entress@ks.gov

Approval: Sunni Zentner
(Original Signature on File)

Summary:

New State Withholding Tax Tables Effective for Paychecks Issued On or After August 6, 2021 

 

The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2021.  The Kansas Department of Revenue has directed that employers should implement the 2021 withholding rates as soon as possible. Therefore, the attached tables will be used for computing state tax withholding for wages paid on or after August 6, 2021. In order to use the attached tables, income must be annualized.  To annualize income, multiply state taxable income for the current bi-weekly pay period by twenty-six pay periods. All checks issued on or after August 6, 2021, including adjustments processed for checks that were originally issued prior to August 6, 2021, will use the new withholding rates.   In addition, the standard deduction for one withholding allowance remains unchanged at $ 2,250.00 per year in calendar year 2021.  

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

 JG:SGZ:abe

Attachment:  Tables for Percentage Method of Withholding

Printable Version of 22-P-001

22-P-002 Addition of New Reports with W-2 Production Load (July 27, 2021)

Informational Circular No.

22-P-002

Supersedes Informational Circular No:

N/A

Effective Date:

Immediately

Contact Name:
Carmen Pearson

Ph:
(785) 296-7059

Email:
Carmen.Pearson@ks.gov

Approval: Sunni Zentner
(Original Signature on File)

Summary:

Addition of New Reports with W-2 Production Load for Reviewing Employees Working in States Other than Kansas

 

Two new W-2 reports have been created for agencies who have employees working in states other than Kansas: 

  1. KTAX200 – Multiple State Employees. This file lists employees that have tax locations in more than one state and contains Employee ID, Name, Department ID, States reported on the employee’s W-2, the applicable state gross amounts, and Federal taxable gross. 
  1. KTAX201 – Other State/Locality Employees. This file lists employees that have tax states and localities other than Kansas and contains Employee ID, Name, Department ID, State, Locality code, applicable gross amounts, and Federal taxable gross.

 Agencies are asked to review each report after each W-2 periodic load for:

  1. Any employees that should not be reporting gross to a state other than Kansas.
  2. The state being reported to is correct per the employee’s telework agreement and/or address the work is being performed.
  3. The total gross amount being reported to the state agrees to what the agency has for each state being reported.

 These new reports will be added to the W-2 report schedule (see Payroll Informational Circular 2021 W-2 Production Report Schedule for the 2021 dates for W-2 loads). Each report will go directly to the agency MVS mailbox as a .OUT file. When the .OUT file is downloaded from the MVS directory, right click on the file, select Rename, and then change the ending 3 letters to CSV (the same process as the renaming of the KPAYGL5C file).  This allows the file to easily be imported into Excel where it can be sorted and reviewed. Agencies are reminded that the file will only be available in your MVS mailbox for 30 days.

 JG:SGZ:abe

Printable Version of 22-P-002

22-P-003 Change in Organization Dues Deduction for Pittsburg State University - Kansas National Education Association #30 (September 20, 2021) (Supersedes 21-P-002)

Informational Circular No.

22-P-003

Supersedes Informational Circular No:

21-P-002

Effective Date:

September 20, 2021

Contact Name: Heather DeBusk

Ph: (785) 296-2434

Email: Heather.DeBusk@ks.gov

Approval: Sunni Zentner (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 $32.76 to $33.06 per biweekly payroll period.  The new rate will become effective with the payroll period beginning September 5, 2021 and ending September 18, 2021, paid October 1, 2021.

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 $32.70 to $33.00 and the fee (ORF030) will remain at $.06 (for a total deduction of $33.06 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:SGZ:abe

Printable Version: 22-P-003

22-P-004 SHARP Bi-Weekly Payroll Schedule for 2022 (October 15, 2021) (Supersedes 21-P-005)

Informational Circular No.

22-P-004

Supersedes Informational Circular No:

21-P-005

Effective Date:

Calendar Year 2022

Contact Name: Earl Brynds

Ph: (785) 296-5376

Email: Earl.Brynds@ks.gov

Approval: Sunni Zentner (original signature on file)

 

Summary: SHARP On-cycle and Off-cycle Payroll Processing Schedules for 2022

 

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2022.  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 off-cycle transactions entered into SHARP since the last off-cycle payroll processed.  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:SGZ:ewb

CY22 On-cycle

CY22 Off-cycle

Printable Version:  22-P-004

22-P-005 Change In Social Security Base Rate (October 22, 2021) (Supersedes 21-P-006)

Informational Circular No.

22-P-005

Supersedes Informational Circular No:

21-P-006

Effective Date:

January 1, 2022

Contact Name: Carmen Pearson

Ph: (785) 296-7059

Email: carmen.pearson@ks.gov

Approval: Sunni Zentner (original signature on file)

 

Summary: Social Security Wage Base Increase to $147,000 effective January 1, 2022

 

The Social Security wage base for OASDI will be $147,000 for calendar year 2022.  This is a $4,200 increase from the wage base of calendar year 2021 of $142,800.  The OASDI tax rate for 2022 will be 6.2% for both employees and employers.  The maximum OASDI employee contribution for 2022 will be $9,114.00.   There continues to be no limit on wages subject to the Medicare tax in 2022.  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 $9,114.00 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:SGZ:ewb

 

Printable Version: 22-P-005

22-P-006 2022 Vision Benefit Plans (November 4, 2021)

Informational Circular No.

22-P-006

Supersedes Informational Circular No:

N/A

Effective Date:

December 12, 2021

Contact Name: Jude Overton

Ph: (785) 296-2290

Email: Jude.Overton@ks.gov

Approval: Sunni Zentner

(Original Signature on File)

Summary: New Avesis Vision Insurance Benefit Plans/Deduction Codes for Plan Year 2022

 

The Health Care Commission has approved Avesis as the new vendor to administer the vision plan for plan year 2022.  New benefit plans/deduction codes will be added to SHARP for Avesis vision.  The new Avesis payroll deductions will be processed in SHARP effective for the payroll beginning December 12, 2021, ending December 25, 2021, paid January 7, 2022.

The new Avesis vision insurance benefit plans/deduction codes effective December 12, 2021 are:

PLAN TYPE

DEDUCTION CODE

DESCRIPTION

SHORT DESCRIPTION

BENEFIT PLAN

14

AVHIAT

Avesis Vision Enhanced AT

AVHIAT

AVHIAT

14

AVHIBT

Avesis Vision Enhanced BT

AVHIBT

AVHIBT

14

AVLOAT

Avesis Vision Basic AT

AVLOAT

AVLOAT

14

AVLOBT

Avesis Vision Basic BT

AVLOBT

AVLOBT

 

The Avesis payroll deductions 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 vision deductions.  In transition, it is possible that various refunds/adjustments for 2021 Surency vision deduction corrections could also be included on some of the 2022 BERF files.

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, Regents institutions should be prepared to test their payroll files for the new benefit plans/deduction codes by November 15, 2021.

 JG:SGZ:jko

Printable version: 22-P-006

22-P-007 Key Payroll Processing Dates November 2021 (November 5, 2021) (Supersedes 21-P-008)

Informational Circular No.

22-P-007

Supersedes Informational Circular No:

21-P-008

Effective Date:

November 2021

Contact Name: Joyce Dickerson

Ph: (785)296-3979

Email: Joyce.Dickerson@ks.gov

Approval: Sunni Zentner

(Original Signature on File)

Summary: Payroll processing schedule changes due to the November 2021 holidays.  

 

Thursday, November 11, 2021 (Veterans' Day), Thursday, November 25, 2021 and Friday, November 26, 2021 (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 some of the days on 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.

Sunday, November 7, 2021

Regents’ on-cycle payroll files for the period ending October 30, 2021 will be processed on this date. (The Regent on-cycle would normally process on Monday, November 8, 2021.)

Monday, November 8, 2021

The Run A off-cycle for the period ending October 30, 2021 will be processed November 8, 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 November 12, 2021.

The Regents’ Run A off-cycle payroll files for the period ending October 30, 2021 will also be processed on this date.

Tuesday, November 9, 2021

Regents’ Run B off-cycle payroll files for the period ending October 30, 2021 must be received by the Department of Administration by 4:00 PM on November 9, 2021.

Wednesday, November 10, 2021

The Run B off-cycle for the period ending October 30, 2021 will be processed November 10, 2021. 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, 2021. (The paychecks would normally be dated Monday, November 15, 2021.)

The Regents’ Run B off-cycle payroll files for the period ending October 30, 2021 will also be processed on this date.

Thursday, November 11, 2021

Veterans Day Holiday

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

Friday, November 12, 2021

Payday for the payroll period ending October 30, 2021.

Regents’ Run C off-cycle payroll files for the period ending October 30, 2021 must be received by the Department of Administration by 4:00 PM on November 12, 2021.

Monday, November 15, 2021

The Run C off-cycle for the period ending October 30, 2021 will be processed November 15, 2021. 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 18, 2021.

Time and Labor interface agencies can submit time and labor (INF42/KAGYTL42) files for the period ending November 13, 2021 to the Department of Administration by 6:00 PM.

The Regents’ Run C off-cycle payroll files for the period ending October 30, 2021 will also be processed on this date.

Tuesday, November 16, 2021

Paysheets for the on-cycle payroll for the period ending November 13, 2021 will be created on Tuesday, November 16, 2021.  For SHARP agencies, all job actions (i.e., FLSA Status change) must be entered by 7:00 PM on November 16, 2021 in order to be reflected on the paysheets for this period.

The first on-cycle preliminary pay calculation for the period ending November 13, 2021 will also occur November 16, 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.

NOTE: Terminations and Retirements must be entered by 7:00 PM on November 16, 2021 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 17, 2021

The second on-cycle preliminary pay calculation for the period ending November 13, 2021 will occur November 17, 2021.

Regents’ on-cycle files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 17, 2021. (These files would normally be due on Thursday, November 18, 2021.)

Thursday, November 18, 2021

The third on-cycle preliminary pay calculation for the period ending November 13, 2021 will occur November 18, 2021. 

Friday, November 19, 2021

Final pay confirmation for the on-cycle payroll for the period ending November 13, 2021 will occur November 19, 2021.  All employees’ payable time must be approved, by 7:00 PM on November 19, 2021 in order for a paycheck record to be created.  All deduction and tax data changes must be entered by 7:00 PM on November 19, 2021 in order to be reflected in the final paycheck created for the employee.  Paychecks for the on-cycle will be dated November 24, 2021.

Regents’ Run A off-cycle payroll files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 19, 2021.

Sunday, November 21, 2021

Regents’ on-cycle payroll files for the period ending November 13, 2021 will be processed on this date. (The Regent on-cycle would normally process on Monday, November 22, 2021.)

Monday, November 22, 2021

The Run A off-cycle for the period ending November 13, 2021 will be processed November 22, 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 November 24, 2021.

The Regents' Run A off-cycle payroll files for the period ending November 13, 2021 will also be processed on this date.

Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 13, 2021 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 24, 2021.)

Regents’ Run B off-cycle payroll files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 22, 2021.

Tuesday, November 23, 2021

The Run B off-cycle for the period ending November 13, 2021 will be processed November 23, 2021.  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 30, 2021. (It would normally be Monday, November 29, 2021.)

The Regents’ Run B off-cycle payroll files for the period ending November 13, 2021 will also be processed on this date.

Wednesday, November 24, 2021

Payday for the payroll period ending November 13, 2021. (It would normally be Friday, November 26, 2021)

Regents’ Run C off-cycle payroll files for the period ending November 13, 2021 must be received by the Department of Administration by 4:00 PM on November 24, 2021. (These files would normally be due Friday, November 26, 2021.)

Thursday, November 25, 2021

Thanksgiving Holiday

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

Friday, November 26, 2021

Thanksgiving Holiday

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

Beginning Monday, November 29, 2021 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2021, 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 https://www.admin.ks.gov/offices/office-of-accounts--reports/informational-messages-and-circulars.

JG:SGZ:ewb

Calendar Attachment

Printable version: 22-P-007

22-P-008 Deferred Compensation and Tax-Sheltered Annuity Limits for Calendar Year 2022 (November 30, 2021) (Supersedes 21-P-009)

INFORMATIONAL CIRCULAR NO.:     22-P-008              Supersedes 21-P-009 

DATE:                                 November 10, 2020   

SUBJECT:                          Deferred Compensation and Tax-Sheltered Annuity

                                           Limits for Calendar Year 2021

EFFECTIVE DATE:           January 1, 2021

CONTACT:                        Carmen Pearson      (785) 296-7059 (Carmen.Pearson@ks.gov)

APPROVAL:                     Sunni Zentner (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

22-P-009 December 2021 Payroll Processing and Updated December Processing Calendar (December 1, 2021)

INFORMATIONAL CIRCULAR NO:         22-P-009

DATE:                       December 1, 2021

SUBJECT:                December 2021 Payroll Processing

EFFECTIVE DATE:  Immediately

CONTACT:               Joyce Dickerson  (785) 296-3979   joyce.dickerson@ks.gov

APPROVAL:            Sunni Zentner (original signature on file)

SUMMARY:              December 2021 Payroll Processing and Updated December Processing Calendar


As 2021 calendar year-end approaches, the Office of Accounts and Reports is making preparations for the issuance of calendar year 2021 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S).  Any 2021 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2022 balances; a corrected W-2 (Form W-2C) for 2021 will not be issued for the employee involved.

 

FINAL 2021 PAYCHECK

The final on-cycle paychecks for calendar year 2021 will be issued December 23, 2021. Payroll transactions for the December 23, 2021 on-cycle paychecks will be posted to SMART on Tuesday night, December 21, 2021. 

 

Paychecks for the final off-cycle for calendar year 2021, which is the ‘C’ cycle for pay period ending December 11, 2021, will be issued on December 30, 2021 (generated from the off-cycle processed on December 27, 2021).

 

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 7:00 p.m. on December 27, 2021 to enter paycheck adjustment requests for any 2021 paychecks.  Adjustments processed in the December 27, 2021 off-cycle payroll will be reflected on the employee’s 2021 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 2021 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 15, 2021. Please note that agencies can send DA-180 forms after December 15, 2021 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 15, 2021 on or before the December 27, 2021 off-cycle.  However, if a large volume of DA-180 forms are received on or after December 15, 2021 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2021 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.

 

For adjustment requests entered after December 27, 2021, only those adjustments impacting OASDI and/or Medicare for tax years prior to 2022 will result in a W-2C for 2021; all other adjustment requests entered after December 27, 2021 which are adjusting paychecks issued prior to January 1, 2022 will update the employee’s 2022 payroll balances regardless of the reason the paycheck is being adjusted, and will not result in a W-2C for 2021.  Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 27, 2021 will update the employee’s 2022 payroll balances.

 

REGENTS’ INSTITUTIONS: ON-CYCLE FILES

Regent on-cycle files for the pay period ending December 11, 2021, paid December 23, 2021 are due to the Department of Administration by 4:00 p.m. on December 15, 2021.

 

The Regent on-cycle for the pay period ending December 11, 2021, paid December 23, 2021 will be run on the night of December 19, 2021 (normally runs on Monday, December 20, 2021).

 

REGENTS’ INSTITUTIONS: OFF-CYCLE FILES

2021 Paycheck Reversals

Regent Institutions must submit all transmittals for 2021 paycheck reversals by 4:00 p.m. on Thursday, December 23, 2021 in order to update the employee’s 2021 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 2022 payroll balances regardless of the paycheck issue date of the paycheck being reversed

 

2021 Adjustments and Supplementals

In order to update employee balances for 2021, any paycheck adjustments and supplementals must be submitted no later than 4:00 p.m. on Thursday, December 23, 2021.  The Run C off-cycle for the pay period ending December 11, 2021 generated on the night of Monday, December 27, 2021 will have a check issue date of December 30, 2021; all activity for this off-cycle will be reflected in the employees’ 2021 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 2021 date.

 

2022 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and/or Medicare for tax years prior to 2022, any adjustments or supplementals submitted after 4:00 p.m. on Monday, December 27, 2021, will be considered to be 2022 business regardless of the pay period end date to which the pay is related.  Since this activity will be considered calendar year 2022 business, the employee’s 2022 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 2022, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2022 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 2022 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, 2021 deadline for the December 27, 2021 Run C’s off-cycle payroll will not be processed until the April 11, 2022 off-cycle payroll.  The deadline for submitting payroll interface files for the April 11, 2022 off-cycle is 4:00 p.m. on Friday, April 8, 2022.

 

GENERAL REMINDERS

United Way and Community Health Charities

The deduction END date on the general deduction page for 2021 United Way or Community Health Charities contributions for both the UTDXXX and UTFXXX deduction codes should be dated between December 12, 2021 and December 25, 2021 in order for the last 2021 deduction to be taken on the paycheck issued December 23, 2021 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 2022, agencies can enter a new row effective-dated between December 12, 2021 and December 25, 2021 in order for the first deduction for United Way or Community Health Charities for 2022 to be taken on the January 7, 2022 paycheck.  If the deduction is to be taken over 26 pay periods, a deduction end date of December 11, 2022 should be entered.  Agencies should enter the total pay period amount authorized by the employee when establishing the UTDXXX deduction code for 2022 if entered before December 23, 2021. If entered after December 23, 2021, agencies will need to split the total pay period amount into the UTDXXX deduction code amount and the UTFXXX deduction code.

 

A batch process will run the night of December 23, 2021 to establish the fee portion (deduction code UTFXXX) of the 2022 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 2022.  This process will reduce the 2022 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 2022 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 27, 2021 to ensure both the UTDXXX and UTFXXX deductions are taken correctly.  Please note that if agencies need to enter any 2022 United Way/Community Health Charities deductions after December 23, 2021, 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, 2021 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.  Agency payroll/human resource staff will need to access the U.S. Payroll WorkCenter tile in SHARP and run the payroll query EE Fed W/H = Exempt to get a listing of employees claiming exempt from federal withholding status.    For each employee on the query listing, your agency should contact the person to ensure the appropriate action is taken so that the desired tax status is in effect for 2022.  If your agency has no employees claiming an exemption from federal withholding the query listing will be empty.

 

SHARP employees are encouraged to use the Employee Self Service functionality to file their 2022 W-4s.  Employees should submit new paper 2022 W-4s by December 29, 2021 to allow adequate time for processing.  Employees must use the 2022 IRS W-4 Form to submit a request for exemption from withholding for calendar year 2022.

 

Agency personnel have until 7:00 p.m. on December 30, 2021 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 2022.

 

The KPAY320 will be processed the evening of December 26, 2021.  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, 2022 effective-dated row will be placed in the Employee Tax Data record.  The January 1, 2022 effective-dated row will update the employee’s marital status to ‘single’ with no adjustments.

 

For any 2022 paper W-4s (for employees claiming exemption from withholding) received between December 26, 2021 and January 2, 2022, agency personnel will need to enter the data with a January 2, 2022 effective date.  Agency Workflow Administrators will also need to change the effective date to January 2, 2022 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 2022 K-4’s.

 

Deduction Information

All deductions for calendar year 2022 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 12/12/2021 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 27, 2021.  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 2021 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 11, 2021 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, 2021 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, 2021.  Please remember that these forms are only for those arrearages that are actively being collected.

 

On December 29, 2021, 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 4, 2022 to guarantee the updated information is included in the W-2 data. Although SHARP agencies have until January 4, 2022 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, 2021.  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 4, 2022 and January 11, 2022.  Electronic W-2 forms through Employee Self Service are anticipated to be available on or before January 11, 2022.  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, 2022.  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 2021 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 https://admin.ks.gov/resources/listserv-signup.

 

Attachment

 

JG:SGZ:ewb

22-P-010 Organization Dues Change for ORG060 (December 22, 2021) (Supersedes 19-P-018)

INFORMATIONAL CIRCULAR NO. 22-P-010                                  Supersedes:  19-P-018  

DATE:                         December 22, 2021

SUBJECT:                  Change in Organization Dues Deduction for Fraternal Order of Police, Lawrence Lodge #2

EFFECTIVE DATE:    Payroll Period Ending December 25, 2021

CONTACT:                 Heather DeBusk   (785) 296-2434    (heather.debusk@ks.gov)

APPROVAL:              Sunni Zentner (Original signature on file)

SUMMARY:               Organization Dues Change for ORG060


The organization dues for members of Fraternal Order of Police, Lawrence Lodge #2, will change from $15.20 to $17.56 per biweekly payroll period.  The new rate will become effective with the payroll period beginning December 12, 2021 and ending December 25, 2021, paid January 7, 2022.

 

The amounts listed above include the deduction amount (ORG060 deduction code) and the $0.06 service fee (ORF060 deduction code) added together. The new rate for deduction code ORG060 will increase from $15.14 to $17.50 and the fee (ORF060) will remain at $.06 (for a total deduction of $17.56 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:SGZ:had   

22-P-011 2022 Percentage Method Tables for Federal Tax Withholding (December 22, 2021) (Supersedes 21-P-011)

INFORMATIONAL CIRCULAR NO.:     22-P-011                            Supersedes 21-P-011

DATE:                                December 22, 2021    

SUBJECT:                         2022 Percentage Method Tables for Federal Tax Withholding

EFFECTIVE DATE:           January 1, 2022

CONTACT:                        Carmen Pearson  (785) 296-7059  carmen.pearson@ks.gov

APPROVAL:                     Sunni Zentner (Original signature on file)

SUMMARY:                      New Federal Withholding Tax Tables Effective for Paychecks Issued On or After January 1, 2022

 


The Internal Revenue Service (IRS) has issued new tables for the percentage method of

withholding for 2022 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, 2022. 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 is used for employees with a 2019 or earlier Form W-4 or whose 2020 or later Form W-4 does not have the box in Step 2(c) checked. The second set of tax tables is used for employees whose 2020 or later 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 2022 has increased to $8,650 if the NRA employee

has not submitted a Form W-4 for 2020 or later or $12,950 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 2022 is not currently available on the IRS website. Regents should be aware that the withholding on supplemental wages rate remains at 22% for 2022.

 

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, 2022 to file their 2022 W-4. The 2022 Form W-4 has not yet been published by the IRS.  When it is published, it can be found on the IRS website at https://www.irs.gov and also

can be found on the Office of Accounts and Reports website at

https://admin.ks.gov/resources/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

2021 must file a new 8233 form for calendar year 2022 if they wish to continue their non-resident alien status. As a reminder, Regent 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 Systems Team, will make the necessary changes in the computation of withholding taxes for SHARP agencies. Regent institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.

 

JG:SGZ:had

 

Attachment: 2022 IRS Publication 15-T

Worksheet 1A. Employer’s Withholding Worksheet for Percentage Method Tables for Automated Payroll Systems and 2022 Annual Percentage Method Tables

22-P-012 W-2 Wage and Tax Statements for Calendar Year 2021 (January 10, 2022) (Supersedes 21-P-014)

INFORMATIONAL CIRCULAR NO. 22-P-012                            Supersedes:  21-P-014           

DATE:                             January 10, 2022

SUBJECT:                      W-2 Wage and Tax Statements for Calendar Year 2021

EFFECTIVE DATE:        Immediately

CONTACT:                     Carmen Pearson   (785) 296-7059    (carmen.pearson@ks.gov)

APPROVAL:                  Sunni Zentner (Original signature on file)

SUMMARY:                    Information Pertaining to Employee 2021 W-2 Statements


The final version of the KTXPR55 W-2 listing has been generated.  The KTXPR55 report contains all information printed on the 2021 W-2 Wage and Tax Statement for each employee of your agency.  Agencies will find the report in their agency MVS mailbox with a date of January 7, 2022.  This report should be downloaded and retained by your agency.  The report will be removed from the MVS mailbox and will no longer be available after February 4, 2022.

 

The KTXPR55 W-2 listing is sorted by 1) 3-digit agency, 2) alphabetically by last name/first name, and 3) 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 2021 W-2s 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 2021 W-2s.

 

In the instance where an employee worked for more than one agency, one W-2 form has been prepared that includes earnings and deductions for all agencies.  The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the agency appearing on the employee's most current job record.

 

The standard W-2 was used for 2021.  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 employees consenting to receive their W-2 electronically, the form is now available on Employee Self Service (ESS).  For employees receiving a printed W-2, the form will be printed and mailed by the end of January 2022. 

 

Any employees who have retired or separated from state service continue to have access to consent to receive their W-2 forms electronically, via Employee Self- Service, for 18 months following separation.  However, each retired or separated employee must sign back into Employee Self -Service and consent to receive their W-2 electronically.  If this consent is not resubmitted, a paper W-2 will be generated and mailed to the former employee.   

 

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 who have not consented to receive an electronic W-2.  If the employee has no mailing address, the employee's home address will be used for mailing the W-2.    The return address for all mailed W-2 forms will be the Department of Administration, Office of Printing & Mailing.

 

All paper 2021 W-2s that are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be destroyed after April 15, 2022.

 

In cases where the 2021 W-2 Wage and Tax Statement information does not agree with your agency records, please notify the Payroll Processing Team, DOA_Payroll@ks.gov, with an explanation of the issue. 

 

For all cases where the social security number is incorrect, please send a copy of the employee's social security card to DOA_Payroll@ks.gov 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 in need of W-2 reprints for years 2017 through 2021, agencies are expected to recommend that employees consent to view these W-2s electronically using the ‘W-2:  Consent, Reissue, Forms’ tile found in Employee Self-Service.  The employee may view and print the duplicate by selecting ‘View W-2/W-2c Forms’.  For those employees who do not consent to receive their W-2 form electronically, a paper W-2 duplicate can be requested by selecting the ‘W-2 Reissue Request’ option also found in Employee Self -Service.

 

Agencies are reminded that employees who have separated or retired from State service have access to consent, view or print, and request duplicate paper W-2s for 18 months following their date of separation.  These employees should be directed to utilize Employee Self-Service to consent, view or 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 the reissued W-2 is needed.  Duplicate W-2’s for 2021 will be available starting on Wednesday, February 2, 2022.   

 

Employees who cannot access Employee Self-Service should contact their Agency HR Office for duplicate paper W-2s. Agency shall refer to the job aid Agency Requested W2 Reprints posted on 12/28/2021 for providing these duplicate reissued W-2 statements for employees of your agency.

 

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. 

 

Attachment

 

JG:SGZ:had

22-P-013 Employee Taxability of State-Owned or Leased Vehicles (January 10, 2022) (Supersedes 21-P-012)

INFORMATIONAL CIRCULAR NO.:  22-P-013

(Supersedes 21-P-012) 

DATE: 

January 10, 2022

SUBJECT:

Employee Taxability of State-Owned or Leased Vehicles

EFFECTIVE DATE:  

January 1, 2022

CONTACT:

Heather DeBusk

    (785) 296-2434

Heather.DeBusk@ks.gov

APPROVAL:

Sunni Zentner (Original signature on file)

SUMMARY:

IRS Cents-Per-Mile Valuation Rule Changes for Calendar Year 2022


The Internal Revenue Service (IRS) announced the standard mileage rate has increased to 58.5 cents per mile, beginning January 1, 2022. Using the Cents Per-Mile methodology, fringe benefit income is calculated by multiplying the 58.5 cents per mile 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 annual mileage must be used for the employer’s trade or business, or the vehicle is primarily used by the employee and the total mileage driven exceeds 10,000 miles per year. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2022, and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $56,100 for automobiles (including trucks and vans). (See IRS Notice 2022-03)

 

Agencies and employees are reminded the only state approved personal use of a state-owned or leased vehicle is to commute between the employee’s workstation and home. Even those situations should be limited.

 

Please note this Informational Circular does not impact the State’s privately-owned vehicle mileage reimbursement rate.

 

JG:SGZ:had

22-P-014 Fiscal Year End Payroll Processing for FY 2022 (May 11, 2022)

INFORMATIONAL CIRCULAR NO.:  22-P-014

(Supersedes 21-P-018) 

DATE: 

May 11, 2022

SUBJECT:

Fiscal Year End Payroll Processing for FY 2022

EFFECTIVE DATE:  

Immediately

CONTACT:

Heather DeBusk

   

Heather.DeBusk@ks.gov

APPROVAL:

Sunni Zenter (Original Signature on File)

SUMMARY:

Summary of Fiscal Year End Payroll Processing


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

 

Note: A separate informational circular regarding the fiscal year 2023 payroll contribution rates will be issued as soon as the information becomes available.

 

Off-Cycle C Payroll for Pay Period End 6/11/2022 has been cancelled.  The final opportunity to run payroll adjustments for fiscal year 2022 will be Off-Cycle B, which will run on 6/22/2022, with a paycheck date of 6/27/2022.

 

Regent Off-Cycle B Cutoff

Cutoff for Off-Cycle B for pay period end 6/11/2022 will be 9:00 A.M., 6/22/2022.  We will be unable to accept any files received after this date and time, for Off-Cycle B processing for pay period end 6/11/2022.

 

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 nightly batch cycle on June 19, 2022. In that process, a new row will be added to the Department Budget tables with an effective date of June 12, 2022 (beginning date of the first on-cycle payroll charged to FY2023). The Budget End Date will be June 10, 2023.

 

Agencies should not enter any rows in the Department Budget table with an effective date greater than or equal to June 12, 2022, 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 23, 2022, after the ‘B’ off-cycle process has been completed for the June 11, 2022 pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 23.

 

Payroll Adjustments

Agencies need to complete all FY2022 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 22, 2022.  The ‘B’ off-cycle is the last payroll cycle for FY2022.  This includes clean-up of all Rejected by Payroll (RP) rows listed on the Reject by Payroll (Payable Time) Time and Labor Workcenter Query.  Any adjustments processed after Wednesday June 22, 2022 will be included with FY2023 transactions and processed with the ‘A’ off-cycle on Tuesday July 5, 2022 for the June 25, 2022 pay period end date.

 

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments for pay period ending dates greater than June 11, 2022, will use fiscal year 2023 rates. These 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. This includes OASDI (Social Security), Medicare, federal withholding tax, state withholding tax, local withholding tax, and unemployment compensation insurance.

 

Fiscal Year Expenditure Impact

Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year of the off-cycle paycheck date regardless of the pay period being adjusted.  The ‘B’ off-cycle (scheduled for June 22, 2022, paycheck date June 27, 2022) for the pay period ending June 11, 2022, will be the last opportunity to have a paycheck adjustment charged to FY2022. 

 

The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.

 

Regents Institutions Responsibilities

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

 

NR:SGZ:had

22-P-015 Fiscal Year 2023 Payroll Contributions

Informational Circular No.

22-P-015

Supersedes Informational Circular No:

21-P-020

Effective Date:

June 22, 2022

Contact Name: Heather DeBusk

 

Email: heather.debusk@ks.gov

Approval:         Sunni Zentner

(Original Signature on File)

Summary:        Fiscal Year 2023-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 2023. The fiscal year 2023 rates will become effective with the on-cycle payroll period beginning June 12, 2022, paid July 8, 2022. The withholding rates for OASDI, Medicare, Federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2022.

 

For fiscal year 2023, the employer’s contribution to KPERS Death and Disability Insurance will be 1.00% (except for retirement codes J1, J2, J3 which are 0.4%).

 

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-June 30, 2010

April 1, 2011-June 30, 2011

April 1, 2012-June 30, 2012

April 1, 2013-June 30, 2013

March 25, 2016-September 30, 2017

July 10, 2020-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.

 

NR:SGZ:had

 

Attachment A 

Attachment B

Attachment C

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