FY 2025

Attachment 

Attachment

Please note that this circular replaces circular 24-P-013. 

A visa is a document that permits a person to enter another country for a specific length of time and purpose.  There are dozens of types of visas issued for foreign nationals allowing entry into the United States, but only a couple of types allow for employment.  Additionally, some employees can hold other non-visa work authorization documents.  In order for State of Kansas to verify an employee has proper authorization to work, as part of the hiring process, the employee must present their visa or work authorization documents and the agency must enter information from those into the HR/payroll system. 

The following steps must be completed when hiring an employee who is working for your agency on a visa or other work authorization.

1. Agency hires employee on a Visa/Work Authorization
2. Employee is setup as subject to FICA in SHARP
3. Employee visa/work authorization data is added to SHARP, even if expired (Refer to the bottom of circular for details.)
4. Agency will email DOA_Payroll@ks.gov with the following information:
   1. Subject Line:  VISA Taxation Verification Needed
   2. Employee Name
   3. Employee Email Address
   4. Employee ID
5. Office of Accounts and Reports Payroll Processing Team will reply with next steps on how to verify the employee taxation

Only after the verification is completed and it has been determined that the employee is not subject to FICA, should the agency update the employee’s FICA status to Exempt.  If an employee has had FICA withheld on a paycheck(s) and has been determined to be exempt, the amount withheld will be refunded.  The agency should submit a Payroll Adjustment Request, Form DA-180, to initiate the refund.

If your agency has foreign employees currently working where the visa/work authorization information has not been entered into SHARP, it is essential that the information is entered as soon as possible so the verification process can be completed even if the employee has been working for a long period of time. 

For employees who are currently in SHARP as FICA Exempt, we will be working to ensure that their taxes are correct in SHARP.  Your agency will be receiving communication from our office concerning those employees.

Adding Visa/Work Authorization Information in SHARP

Agencies are required to utilize the Visa/Permit page in SHARP.  A job aid entitled Visa Setup has been created and placed on the OAR Website to assist agencies:

https://admin.ks.gov/offices/accounts-reports/state-agencies/payroll/payroll-procedures-job-aids

Within the Payroll Procedures/Job Aids listing, the job aid is located under the Out of State folder.

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Printable Version

The Kansas Department of Revenue has issued new tables for the percentage method of withholding for 2024. The Kansas Department of Revenue has directed that employers should implement the 2024 withholding rates as soon as possible. Therefore, the attached tables will be used for computing state tax withholding for wages paid on or after October 11, 2024. All checks issued on or after October 11, 2024, including adjustments processed for checks that were originally issued prior to that date will use the new withholding rates.

In addition to the tax rate change, a person claiming single will have a new personal exemption amount of $9,160 for the first withholding allowance claimed.  For a person claiming married (joint), the first and second withholding allowances will be calculated using the $9,160 personal exemption amount.  All additional allowances will be calculated using the standard deduction amount of $2,320.

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.

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Attachment A: Tables for Annual Percentage Method of Withholding

The organization dues for members of the American Federation of Teachers (AFT) will increase per bi-weekly pay period. The new rate will become effective with the payroll period beginning September 29, 2024, and ending October 12, 2024, paid October 25, 2024.

The amounts listed below include the deduction amount (ORG001 thru ORG006 deduction codes) and the $0.06 service fee (ORF001 thru ORF006 deduction codes) added together. The new rate for deduction codes ORG001 thru ORG006 will increase and the fee (ORF001 thru ORF006) will remain at $0.06. Please review chart below for total bi-weekly amounts.

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 29, 2024.

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Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2025. 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 to their employees.

SHARP off-cycle payrolls will be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last  payroll cycle. 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 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 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.

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2025 On-Cycle

2025 Off-Cycle

The Social Security wage base for OASDI will be $176,100 for calendar year 2025. This is a $7,500 increase from the wage base for calendar year 2024 of $168,600. The OASDI tax rate for calendar year 2025 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for calendar year 2025 will be $10,918.20. There continues to be no limit on wages subject to the Medicare tax in calendar year 2025. Medicare tax rates for both employees and employers remain at 1.45%.

An additional Medicare tax of 0.9% applies to employees with wages of more than $200,000 and $250,000 for married couples filing jointly.  This additional tax 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 $10,453.20 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 and $250,000 for married couples filing jointly, 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 and $250,000 for married couples filing jointly.

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.

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Printable Version of 25-P-008

Calendar Attachment

Printable Version

INFORMATIONAL CIRCULAR NO:      25-P-010                                

DATE:                          November 5, 2024

SUBJECT:                   Organization Dues for changes for ORG281

EFFECTIVE DATE:     October 27, 2024

OAR CONTACTS:      doa_payroll@ks.gov

APPROVAL:               Sunni Zentner (original signature on file)

SUMMARY:                 Organization Dues Changes for ORG281

The Kansas State Troopers Association has advised that changes to the regular biweekly dues for members of Kansas State Troopers Association will be effective with the payroll period beginning October 27, 2024, and ending November 09, 2024, paid November 22, 2024, as follows:

The amounts listed above include the deduction amount (ORG018 deduction code) and the $0.06 service fee (ORF281 deduction code) added together. The new rate for deduction code ORG281 will increase from $27.44 to $39.33, and the fee (ORF281) will remain at $0.06 (for a total deduction of $39.39 per biweekly payroll period). 

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues’ organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after November 22, 2024.

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Printable Version

Printable Version

Sharp Year End Checklist

Regents Year End Checklist

INFORMATIONAL CIRCULAR NO:      25-P-012                                 Supersedes 24-P-008

DATE:                           December 12, 2024

SUBJECT:                    First 2025 Payroll Processing & New Year Checklist

EFFECTIVE DATE:      Immediately

OAR CONTACTS:        doa_payroll@ks.gov

APPROVAL:               Sunni Zentner (original signature on file)

SUMMARY:                 First 2025 Payroll Processing and New Year-Begin Checklist

This is the second Information Circular with details for the first payroll/paycycle of 2025.

Any 2024 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2025 balances; a corrected W-2 (Form W-2C) for 2024 will not be issued for the employee involved.

Refer to the attached Year-Begin Calendar for all other 2025 year-begin tasks and deadlines.

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Printable Version

SHARP 2024 Year End - 2025 Begin Checklist

Regents 2024 Year End - 2025 Year Begin Checklist

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2025, 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, 2025.

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.

For 2019 or earlier W-4, each withholding allowance remains at $4,300. 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.

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, 2025, to file their 2025 W-4. The 2025 W-4 can be found on the IRS website at https://www.irs.gov. 

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.

Regents

Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2025 has increased to $10,700 if the NRA employee has not submitted a Form W-4 for 2020 or later or $15,000 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. Regents should be aware that the withholding on supplemental wages rate remains at 22% for 2025.

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 2024 must file a new 8233 form for calendar year 2025 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.

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2025 Publication 15-T

Printable Version

 Printable Version

INFORMATIONAL CIRCULAR NO:      25-P-015                                 Supersedes 25-P005                          

DATE:                          January 2, 2025

SUBJECT:                   Organization Dues Changes for America Federation of Teacher

EFFECTIVE DATE:     November 24, 2024

OAR CONTACTS:       doa_payroll@ks.gov

APPROVAL:               Sunni Zentner (original signature on file)

SUMMARY:                 Organization Dues Changes for America Federation of Teacher (KAPE)

The organization dues for members of the American Federation of Teachers (AFT)/ (KAPE) will increase per bi-weekly pay period. The revised new rate will become effective with the payroll period beginning November 24, 2024, and ending December 07, 2024, paid December 20, 2024.

The amounts listed below include the deduction amount (ORG001 thru ORG006 deduction codes) and the $0.06 service fee (ORF001 thru ORF006 deduction codes) added together. The new rate for deduction codes ORG001 thru ORG006 will increase and the fee (ORF001 thru ORF006) will remain at $0.06. Please review chart below for total bi-weekly amounts.

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after December 20, 2024.

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Printable Version

INFORMATIONAL CIRCULAR NO:      25-P-016                                 Supersedes 25-P-015                         

DATE:                           January 10, 2025

SUBJECT:                    Organization Dues Changes for America Federation of Teacher

EFFECTIVE DATE:      January 05, 2025

OAR CONTACTS:       doa_payroll@ks.gov

APPROVAL:               Sunni Zentner (original signature on file)

SUMMARY:                 Organization Dues Changes for America Federation of Teacher (KAPE)

The organization dues for members of the American Federation of Teachers (AFT)/ (KAPE) has a correction for ORG003 code amount it will decrease per bi-weekly pay period from $14.88 to $14.84. The revised new rate will become effective with the payroll period beginning January 05, 2025, and ending January 18, 2025, paid January 31, 2025.

The amounts listed below include the deduction amount (ORG001 thru ORG006 deduction codes) and the $0.06 service fee (ORF001 thru ORF006 deduction codes) added together. The new rate for deduction codes ORG001 thru ORG006 will increase and the fee (ORF001 thru ORF006) will remain at $0.06. Please review chart below for total bi-weekly amounts.

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 31, 2025.

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Printable Version

The Internal Revenue Service (IRS) Notice 2024-80 announced increased 2025 contribution limits for retirement plans as follows:

Kansas Public Employees Retirement System (KPERS)

• IRS sets a contribution limit based on annual compensation limit based on membership date. 
• Agencies should not send KPERS contributions for any earnings over the annual compensation limit.
  • Membership date before July 1, 1996, annual compensation limit $520,000 (increased from $505,000 2024)
  • Membership date on or after July 1, 1996, annual compensation limit $350,000 (increased from $345,000 2024)

Deferred Compensation (IRS Section 457)

• 457DEF (Regular Plan) [457(e)(15)]
  • Annual limit increases to $23,500 ($23,000 in 2024) or 100% of includible compensation
• Please note that the two different catch-up provisions below cannot be used concurrently:
  • 457DER (special catch-up)
    • Annual limit increases to $47,000 ($46,000 in 2024)
    • 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.
  • 457DEC (catch up provision for 50 years of age or older)
    • Annual contribution limit remains the same $7,500 for 2025, making the total limit $31,000

Tax Sheltered Annuities (TSA)

• The limit on annual contributions to a TSA for 2025 is the lesser of $70,000 or 100% of compensation ($69,000 in 2024). [IRS Section 415(b)(1)(A)]
• The annual compensation limit used for calculating mandatory employee and employer contributions increased to $350,000 ($345,000 in 2024) and applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents.

School for the Blind and School for the Deaf

• The maximum contribution that can be made to the plan is $35,000.
  • $350,000 maximum annual compensation multiplied by 10% (5% employer contribution and 5% employee contribution)

Board of Regents

• For employees starting participation after 1995, the maximum contribution that can be made to the plan is $49,000.
  • $350,000 maximum annual compensation multiplied by 14% contribution rate (8.5% employer contribution and 5.5% employee contribution)
• For employees starting participation prior to 1996, participants are grandfathered and use the annual compensation limit under IRS Code Section 401(a)(17) which increased from $505,000 (for 2024) to $520,000.  The maximum contribution that can be made to the plan is $70,000.
  • $520,00 maximum annual compensation multiplied by 14% contribution rate (8.5% for the employer and 5.5% for the employee)

Voluntary Tax-Sheltered Annuity (VTSA)

• The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) increases to $23,500 ($23,000 in 2024).
• The age 50 or older catch-up provision remains at $7,500 in 2025.
  • Employees age 50 or over are eligible to increase their elective deferral and limit on an annual contribution by $7,500.
  • The 15-year rule may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,750.
  • 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 ($23,500 for 2025) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.
• 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.
• Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are asked to contact the 403(b) carriers to aid in any questions regarding the VTSA plans. 

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Printable Version

INFORMATIONAL CIRCULAR NO:      25-P-018                                 Supersedes 24-P-012

DATE:                           February 7, 2025

SUBJECT:                    W-2 Wage and Tax Statements for Calendar Year 2024

OAR CONTACTS:    doa_payroll@ks.gov

APPROVAL:               Sunni Zentner (original signature on file)

SUMMARY:                Information Pertaining to Employee 2024 W-2 Statements

The final version of the KTXPR55 W-2 listing has been generated and is available in your agency MVS mailbox.  The KTXPR55 report contains all information printed on the 2024 W-2 Wage and Tax Statement for each employee of your agency.   Agencies have 90 days to download and save this report.  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 2024 W-2s that were generated for your agency.  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.

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 2025. 

Employees who have retired or separated from state service will be able to consent to receive their W-2 forms electronically, via Employee Self- Service, for 18 months following separation.  Each retired or separated employee will have to sign into Employee Self -Service and complete their consent, even if consent was previously granted.  If this consent is not resubmitted, a paper W-2 will be generated and mailed.   

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 W-2s returned in the mail as undeliverable will be destroyed immediately.

In cases where the 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 form reprints for the most recent 5 years, 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.

Employees needing a duplicate W-2 who cannot access Employee Self-Service should contact their Agency HR Office. Agency staff should refer to the job aid Agency Requested W2 Reprints for providing these duplicate reissued W-2 statements for employees of your agency.

An attachment is 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 should also consider using 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. 

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Printable Version

2024 W-2 Statement Attachment

The Board of Directors for the Graduate Teaching Assistants Coalition (GTAC) Local 6403 has advised that changes to the regular biweekly dues for members of GTAC will be effective with the payroll period beginning March 02, 2025, and ending March15, 2025, paid March 28, 2025, as follows:

The amounts listed above include the deduction amount (ORG018 deduction code) and the $0.06 service fee (ORF018 deduction code) added together. The new rate for deduction code ORG018 will increase from $13.02 to $13.05, and the fee (ORF018) will remain at $0.06 (for a total deduction of $13.11 per biweekly payroll period). 

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues’ organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after March 28, 2025.

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Printable Version

The International Association of Fire Fighters Local 64 (IAFF) has advised that changes to the regular biweekly dues for members of IAFF will be effective with the payroll period beginning February 16, 2025, and ending March 01, 2025, paid March 14, 2025, as follows:

The amounts listed above include the deduction amount (ORG064 deduction code) and the $0.06 service fee (ORF064 deduction code) added together. The new rate for deduction code ORG064 will increase from $13.78 to $17.37, and the fee (ORF064) will remain at $0.06 (for a total deduction of $17.43 per biweekly payroll period). 

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues’ organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after March 14, 2025.

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Printable Version

The Internal Revenue Service (IRS) Notice 2024-80 announced increased 2025 contribution limits for retirement plans. Additionally, the SECURE 2.0 Act of 2022 was signed into law on December 29, 2022.  Changes to State of Kansas retirements plans are described below.

Kansas Public Employees Retirement System (KPERS)

• IRS sets a contribution limit based on annual compensation differentiated by membership date. 
• Agencies should not allow KPERS contributions to be deducted for any earnings over the annual compensation limit.
  • Membership date before July 1, 1996, annual compensation limit $520,000 (increased from $505,000 2024)
  • Membership date on or after July 1, 1996, annual compensation limit $350,000 (increased from $345,000 2024)

Deferred Compensation (IRS Section 457)

• Regular Deferred Compensation Plan
  • Annual limit increases to $23,500 ($23,000 in 2024) or 100% of includible compensation
  • Benefit Plan 457DEF for regular before-tax plan
  • Benefit Plan 457DRA for Roth after-tax plan
  • This limit also applies to the plan for elected and appointed officials using the Retirement Benefit Plan V and V1.
• There are three different catch-up provisions below that cannot be used concurrently. Age is based on the participant’s age on the last day of the calendar year.
  • The special catch-up limit is only available to employees who are within three years of normal retirement age. Annual limit is twice the general deferral limit and increases to $47,000 ($46,000 in 2024)
    • Benefit Plan 457DER for before-tax plan
    • Benefit Plan 457DRR for Roth after-tax plan
  • Catch-up provision for 50 years of age or older
    • Annual contribution limit remains the same $7,500 for 2025, making the total limit $31,000 ($30,500 in 2024)
    • Benefit Plan 457DEC for before-tax plan
    • Benefit Plan 457DRC for Roth after-tax plan
  • New for calendar year 2025, catch-up provision for 60-63 years of age
    • Annual contribution limit is $11,250 ($7,500 x 150%) for 2025, making the total limit $34,750
    • Benefit Plan 457DCS for before-tax plan
    • Benefit Plan 457DRS for Roth after-tax plan

Tax Sheltered Annuities (TSA)

• The limit on annual contributions to a TSA for 2025 is the lesser of $70,000 or 100% of compensation ($69,000 in 2024). [IRS Section 415(b)(1)(A)]
• The annual compensation limit used for calculating mandatory employee and employer contributions increased to $350,000 ($345,000 in 2024) and applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and Kansas Board of Regents.

School for the Blind and School for the Deaf

• The maximum contribution that can be made to the plan is $35,000.
  • $350,000 maximum annual compensation multiplied by 10% (5% employer contribution and 5% employee contribution)

Board of Regents

• For employees starting participation after 1995, the maximum contribution that can be made to the plan is $49,000.
  • $350,000 maximum annual compensation multiplied by 14% contribution rate (8.5% employer contribution and 5.5% employee contribution)
• For employees starting participation prior to 1996, participants are grandfathered and use the annual compensation limit under IRS Code Section 401(a)(17) which increased from $505,000 (for 2024) to $520,000.  The maximum contribution that can be made to the plan is $70,000. 
  • $500,000 maximum annual compensation multiplied by 14% contribution rate (8.5% for the employer and 5.5% for the employee) equals $70,000 (The contribution limit for “grandfathered” participants is $70,000 and the KBOR Mandatory Retirement Plan contribution rate is 14%, the dollar limit is $500,000 ($500,000 * 14% = $70,000)).

Voluntary Tax-Sheltered Annuity (VTSA)

• The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) increases to $23,500 ($23,000 in 2024).
• The age 50 or older catch-up provision remains at $7,500 in 2025.
• New, for 2025, is a $11,250 catch-up provision (instead of $7,500) for those who will be age 60-63 as of 12/31/25.
  • Employees age 50 or over are eligible to increase their elective deferral and limit on an annual contribution by $7,500.
  • As of 12/31/2025 employees age 60-63 are eligible to increase their elective deferral and limit on an annual contribution by $11,250.
  • The 15-year rule may allow employees with 15 or more years of service to increase the elective deferral limit by a maximum $3,000 annual addition (total of $15,000 lifetime).
  • Employees may use both the age catch-up provisions
    • Age 50 or older or age 60-63
    • 15-year rule concurrently 
  • IRS regulations state that when employees are eligible for both the 15-year rule and the age 50 or older or age 60-63 catch-up provision, the limit on elective deferrals ($23,500 for 2025) is applied first, then the 15-year rule, and finally the age 50 or older or age 60-63 catch-up provision.
• The total of nonelective deferrals (the mandatory retirement plans) and elective deferral (VTSA) cannot exceed the limit on annual contributions plus the age catch-up provision (age 50 or older or age 60-63 catch-up provision amounts and 15-year catch-up if applicable).
• Regents’ institutions are reminded that they are responsible for applying the maximum VTSA formulas for their employees.
• Due to the complexity of the legislation and the unique circumstances of each employee, Regents’ institutions are asked to contact the 403(b) carriers to aid in any questions regarding the VTSA plans. 

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INFORMATIONAL CIRCULAR NO.:  25-P-022                 

DATE:     April 08, 2025 

SUBJECT: Key Payroll Processing Dates due to Memorial. Day 

EFFECTIVE DATE:  May 26, 2025 

OAR CONTACTS:   doa_payroll@ks.gov   

APPROVAL:   Sunni Zentner (original signature on file) 

SUMMARY:  Payroll processing schedule changes due to Memorial. Day 

Due to the Memorial Day holiday, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular. 

Note: Items noted in red indicate a change to the regular processing schedule. 

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Printable Version

INFORMATIONAL CIRCULAR NO:      25-P-023       Supersedes 25-P-019                           

DATE:                           April 9, 2025

SUBJECT:                    Organization Dues for changes for ORG018

EFFECTIVE DATE:   April 13, 2025

OAR CONTACTS:    doa_payroll@ks.gov

APPROVAL:               Sunni Zentner (original signature on file)

SUMMARY:                Organization Dues Changes for ORG018

The Board of Directors for the Graduate Teaching Assistants Coalition (GTAC) Local 6403 has advised that changes to the regular biweekly dues for members of GTAC will be effective with the payroll period beginning April 13, 2025, and ending April 26, 2025, paid May 09, 2025, as follows:

The amounts listed above include the deduction amount (ORG018 deduction code) and the $0.06 service fee (ORF018 deduction code) added together. The new rate for deduction code ORG018 will increase from $13.02 to $15.05, and the fee (ORF018) will remain at $0.06 (for a total deduction of $15.11 per biweekly payroll period). 

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues’ organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after May 09, 2025.

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Printable Version

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

Note: A separate information circular regarding the fiscal year 2025 payroll contribution rates will be issued as soon as the information becomes available. 

Off-Cycle C Payroll for Pay Period End 6/7/2025 has been cancelled.  The final opportunity to run payroll adjustments for fiscal year 2025 will be Off-Cycle B, which will run on 6/17/2025, with a paycheck date of 6/23/2025.

Regent Off-Cycle B Cutoff

Cutoff for Off-Cycle B for pay period end 6/7/2025 will be 9:00 A.M., 6/16/2025.  We will be unable to accept any Regent Off-Cycle B files received after this date and time. 

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 15, 2025. In that process, a new row will be added to the Department Budget tables with an effective date of June 8, 2025 (the beginning date of the first on-cycle payroll charged to FY2026). The Budget End Date will be June 6, 2026.

Agencies should not enter any rows in the Department Budget table with an effective date greater than or equal to June 8, 2025, until agencies have been notified that the BUD006 process ran successfully.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday June 20, 2025, after the ‘B’ off-cycle process has been completed for the June 7, 2025, pay period end date. A SHARP Infolist message will be sent to agencies after the KPAYGL5C has finished processing on June 20, 2025.

Payroll Adjustments

Agencies need to complete all FY2025 payroll adjustments on or before the Off-Cycle B which processes on Tuesday night, June 17, 2025.  Off-Cycle B is the last payroll cycle for FY2025.  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 Tuesday, June 17, 2025, will be included with FY2026 transactions and processed with Off-Cycle A on Monday, June 30, 2025, for the June 21, 2025, 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 7, 2025, will use fiscal year 2026 rates.

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.  Off-Cycle B (scheduled for June 17, 2025, paycheck date June 23, 2025) for the pay period ending June 7, 2025, will be the last opportunity to have a paycheck adjustment charged to FY2025. 

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.

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Printable Version

INFORMATIONAL CIRCULAR NO:      25-P-025                     Supersedes 25-P-015                          

The organization dues for members of the American Federation of Teachers (AFT)/ (KAPE) will increase per bi-weekly pay period. The revised new rate will become effective with the payroll period beginning May 11, 2025, and ending May 24, 2025, paid June 06, 2025.

The amounts listed below include the deduction amount (ORG001 thru ORG006 deduction codes) and the $0.06 service fee (ORF001 thru ORF006 deduction codes) added together. The new rate for deduction codes ORG001 thru ORG006 will increase and the fee (ORF001 thru ORF006) will remain $0.06. Please review the chart below for total bi-weekly amounts.

The Office of Accounts and Reports Payroll Systems Team is responsible for making this rate change in the SHARP system.  Agencies are responsible for ensuring that employees are enrolled in the correct dues' organization.  Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after June 06, 2025.

Printable Version

INFORMATIONAL CIRCULAR NO.:     25-P-026                                                 

DATE:                                 May 19, 2025

SUBJECT:                          Key Payroll Processing Dates due to Juneteenth and July 4^th Holidays

EFFECTIVE DATE:            May 25, 2025

OAR CONTACTS:              doa_payroll@ks.gov  

APPROVAL:                       Sunni Zentner (original signature on file)

SUMMARY:                        Payroll processing schedule changes due to Juneteenth and July 4^th Independence Day Holidays

Due to the Juneteenth and July 4^th holidays, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this information circular.

Note: Items noted in red indicate a change to the regular processing schedule.

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Printable Version

Attachment A

Attachment B

Attachment C