FY 1999

DATE:	July 13, 1998
SUBJECT:	Change in Organization Dues Deduction Amount
EFFECTIVE DATE:	September 4, 1998
CONTACT:	Janice Wolfley, Payroll Services	(785) 296-3699
APPROVAL:
SUMMARY:	Organization Dues Change for KAPE

The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that the regular bi-weekly dues for members of KAPE will be changing effective with the payroll period beginning August 9, 1998 and ending August 22, 1998, paid September 4, 1998 as follows:
 

The Division of Accounts and Reports, Payroll Services Team will make the necessary updates to the payroll system to affect all SHARP employees enrolled in the above KAPE dues deductions. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 4, 1998.

SAM:JJM:NR

DATE:	August 21, 1998
SUBJECT:	VTSA Company Changes
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Tax Sheltered Annuity Company Name Change

The Kansas Board of Regents has been notified that Western National Life Insurance Company, no. 792, was acquired by and changed its name to American General Annuity.

While the company name has changed, the mailing address will remain as follows:

American General Annuity Insurance Company
P. O. Box 2754
Amarillo, TX 79105

Payroll Services will make the necessary modifications to the SHARP system to reflect this company change. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.

SAM:JJM:LI

DATE:	September 30, 1998
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Immediately
CONTACT:	Abby Moore	(785) 296-2133
APPROVAL:
SUMMARY:	KPERS Quarterly Remittance Totals Verification

Effective with the third quarter 1998, Regents will no longer be required to verify quarterly KPERS remittance file totals with the Payroll Reconciliation\Remittance Team. KPERS annual remittance datasets will continue to be received, processed, and reviewed per the updated attachment.

The elimination of the KPERS Quarterly Remittance totals verification process discussed above supersedes Informational Circular No. 97-R-008, dated December 11, 1996, that has an attachment titled "Regents Remittance Reports/Interface by Fund." This attachment required RGKPER-Summary of Tape Totals and PYRLR048-Transactions Not on Quarterly Tape to be sent to Payroll Services.

Questions regarding this informational circular should be directed to the Division of Accounts and Reports, Abby Moore, Payroll Services at (785) 296-2133.

SAM:AM

Attachment (.pdf)

DATE:	September 24, 1998
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Various: see explanation below
CONTACT:	Myrene Bears	(785) 296-5368
APPROVAL:
SUMMARY:	Changes to STARS Funding and Providers for Group Health Insurance

Effective with the implementation of SHaRP 7.0 and with the 1999 group health insurance (GHI) contract the following changes will impact your payroll processing.

Effective with the implementation of SHaRP 7.0 (checks issued after October 16, 1998):

1) Pursuant to agreements between the Divisions of Accounts and Reports and Personnel Services the following index codes for GHI will no longer be separated in STARS, effective with SHaRP 7.0 (checks issued after October 16, 1998):

• participation fee         (STARS funding file, fund 7700 index code 9745)
• tobacco charge          (STARS funding file, fund 7700 index code 9743)
• health care benefits   (STARS funding file, fund 7700 index codes 9846 and 9847)

These amounts are currently and will continue to be included in the employee deductions and/or employer contributions on pay detail files, but calculations will no longer be needed to separate these pieces on the STARS funding files. The Division of Personnel services will be responsible for tracking and transferring these amounts. Wellness will continue to be separated in STARS. Note: there are no changes to the DA175-176 or pay detail files for these items.

2) A new plan type and deduction code for GHI drug will become effective with the implementation of SHaRP 7.0 (checks issued after October 16, 1998):

• Advance Paradigm: deduction codes DRUGAT A and DRUGBT B (employee), DRUGAT N and DRUGBT N (employer) under plan type 1Z (one Z).

Currently drug is included with the medical portion of the GHI deduction and contributions on the pay detail file but separated on the STARS funding file. Drug will now be shown as a separate deduction on the pay detail file and continue to be separated on the STARS funding file as you are currently doing. Note: there are no changes to the DA175-176 or STARS funding files. The drug deduction will continue to be included with the medical totals on the paycheck stub.

Effective with the 1999 GHI contract:

The following provider changes have been made for the State of Kansas 1999 GHI contract, effective December 27, 1998 paid January 22, 1999:

1) Providers being discontinued:

- Principal PPO: plan type 10, deduction codes PCPPAT and PCPPBT
           STARS funding file, fund 7700 index codes 9717 and 9817

- Principal PSO: plan type 10, deduction codes PCPSAT and PCPSBT
           STARS funding file, fund 7700 index codes 9722 and 9822

2) Providers being added:

• Community Health Plan: plan type 10, deduction codes COMMAT and COMMBT
  • STARS funding file, fund 7700 add index codes 9723 and 9823
• Preferred Health Systems: plan type 10, deduction codes PHSCAT and PHSCBT
  • STARS funding file, fund 7700 add index codes 9724 and 9824
• Vision Service Plan: new plan type 14, deduction codes VISNAT and VISNBT
  • STARS funding file, fund 7700 add index codes 9739 and 9839

Make the above changes in your pay detail and STARS funding files, effective with the January 22, 1999 check issue date. Note : there are no changes to the DA175-176 files.

The attached AIndex Codes for Agency and DOA Clearing Funds@ replaces the one included with informational circular 98-P-007 dated October 31, 1997. All changes listed above are incorporated in this document, so be sure to refer to the dates above for actual implementation dates.

Once Payroll Services has been notified by Division of Personnel Services of the final GHI rate calculations for the 1999 contract period, an expanded spreadsheet of those rates by provider will be sent to you. Every effort will be made to distribute the spreadsheet no later than November 15, 1998. The spreadsheet will not have as many columns of data because of the changes discussed in this informational circular, but will include conversion data between the Rate Schedule codes in SHaRP 4.0 and the Flat Rate Id codes in SHaRP 7.0.

Questions regarding this informational circular should be directed to the Division of Accounts and Reports, Myrene Bears, Payroll Services, at (785) 296-5368.

SAM:JJM:mb

Attachment (.pdf)

DATE:	October 13, 1998
SUBJECT:	SHARP Bi-Weekly Payroll Schedule for Calendar Year 1999
EFFECTIVE DATE:	Calendar Year 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	SHARP On-Cycle and Off-Cycle Payroll Processing Schedules

Attached is the finalized SHARP bi-weekly on-cycle and off-cycle payroll schedules applicable to your agency for calendar year 1999.

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/submitted by the cutoff dates indicated on the schedules in order to ensure the timely issuance of pay for their employees. Time and leave interface agencies: please note that the deadline for submitting time and leave files for the payroll period ending December 28, 1998, is Thursday, December 24.

SHARP off-cycle payrolls will generally be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be changed to the following business day. Any payroll payments resulting from an off-cycle payroll will usually be dated three working days from the date the off-cycle was processed (i.e., payments resulting from a Monday off-cycle will almost always be dated the following Thursday; payments from a Wednesday off-cycle will almost always be dated the following Monday). Please note, however, that payments generated in the first off-cycle payroll for a payroll period (i.e., KA1 off-cycle) will be issued with the same paycheck/direct deposit date as the regular on-cycle pay date for that period. Agencies have until 5:00 p.m. on Mondays and every other Wednesday to enter adjustment and/or supplemental data into SHARP for processing in that nights off-cycle payroll.

Off-cycle payrolls for Regents' institutions are also regularly scheduled for each Monday and every other Wednesday night. Regents' institutions generally have until 5:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. All interface files must then be approved by the Division of Accounts and Reports for processing by 5:00 p.m. on the following Monday or every other Wednesday to be included in that nights off-cycle payroll. Regents' offcycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed that same night.

 Attachment

DATE:	September 30, 1998
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Immediately
CONTACT:	Abby Moore	(785) 296-2133
APPROVAL:
SUMMARY:	Date Changes on the UCI Quarterly Wage & Statistic Reporting

The Department of Human Resources has notified Payroll Services that Y2K changes have been made to their Unemployment Compensation Insurance (UCI) reporting system. Effective with the third quarter 1998, reporting for the UCI Quarterly Wage Remittance Report and Dataset and the UCI Quarterly Statistic Report and Dataset must be modified for Y2K compliance per the attached formats. Regent Institutions are responsible for making the necessary modifications to their Wage and Statistic reporting to reflect the change.

The following are the changes to the Wage Remittance Dataset:

• Element "Wage Quarter/Year Code" increased to 9(5). This is the Quarter number and four digits of year (CCYY).
• Element "Wage First Name Initial" follows "Year Code." There is no longer any filler separating the two elements.

The following are the changes to the Statistic Dataset:

Header Record

• Element "Year" increased to 9(4). This is the four digits of year (CCYY) Detail Record
• Element "Filler" at end increased to X(9).

SAM:AM
Attachment (pdf)

DATE:	April 12, 1999
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Various: see explanation below
CONTACT:	Myrene Bears	(785) 296-5368
APPROVAL:
SUMMARY:	Update to Index Codes for Agency and DOA Clearing Funds

The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 99-P-004 dated September 23, 1998. The following updates were made:

SLPKPERS for sick leave payout reserve, index code 9872, has again been included on the listing. It was accidently left off the attachment that was included with Informational Circular 99-P-004. There has been no change in any of the sick leave payout reserve index codes.

STATE TAX - UTAH, GEORGIA: index code 9768 will be used for any NEW states for which withholding is required.

UCI - ALL OTHER STATES EMPLOYER: index code 9828 will be used for any NEW states for which unemployment compensation insurance is required.

SAM:JJM:mb

Attachment (pdf)

DATE:	October 8, 1998
SUBJECT:	SHARP 7.0 Payroll Policy Changes
EFFECTIVE DATE:	October 4, 1998
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Payroll Policies Effective with SHARP 7.0 Implementation

Following is a summary of the payroll policy changes that are effective on October 4, 1998 with the implementation of SHARP 7.0. These policy changes and the related procedural changes have been presented to agencies in the SHARP User Training meetings in July, August, and September 1998 and have been incorporated into the SHARP CBT training materials.

DIRECT DEPOSIT

• Payroll direct deposits can be made to multiple accounts in multiple financial institutions. Employees may designate up to a maximum of 6 financial institutions with up to 10 accounts in each institution. Employees can also request a combination of direct deposit accounts and still receive a paper check for a portion of their pay.

PAY CALCULATION

• State withholding tax will be rounded to the nearest whole dollar.
• Overtime will be calculated using the delivered PeopleSoft calculation that is FLSA compliant and approved by Division of Personnel Services. The overtime calculation is:

(Regular Hours X Hourly Rate) + (Overtime Hours X Hourly Rate) + Premium Pay Total Hours Worked in Work Week = FSLA

(Overtime Hours X Hourly Rate) + (Overtime Hours X FLSA Rate X .5) = Overtime Earnings

PAYROLL ADJUSTMENTS:

• Earnings will be 'advanced' to the employee in situations where an employee does not have sufficient net pay to allow deductions (and the corresponding employer contributions) for group health insurance, flexible spending accounts, legislative KPERS, legislative KPERS buyback, and optional group life insurance. In such cases, an arrears balance is automatically set up by the system. In situations where the employee has a tax garnishment, earnings will not be 'advanced'. The employer deductions will occur on the paycheck; arrears balances will be automatically set up by the system for the employee deductions not taken. The 'advance earnings' will increase the employee's taxable wages but will not be considered compensation for the purpose of benefits (i.e. Retirement, state leave assessment, and worker's compensation). At the time the advance earnings arrearage is collected the employee's taxable wages will be reduced.
• Three off-cycle payrolls will be processed for each pay period.
• Paycheck adjustments will update employee current year balances regardless of when the original paycheck was issued. Agencies must ensure that all payroll adjustments for the calendar year are processed by the end of the calendar year. Except for adjustments to correct FICA coverage, employees will not be issued a Form W-2C, Statement of Corrected Earnings, when a paycheck issued in a previous calendar year is adjusted or reversed.
• Payments for suggestion awards will be included on the employee's next regular paycheck.
• Agencies will be responsible for verifying with the State Treasurer's Office that a warrant has not been redeemed and completing the Paycheck Stop Payment Request form prior to processing a paycheck reversal or paycheck reprint.
• Only one "adjustment" transaction can be processed per person per off-cycle payroll due to PeopleSoft delivered software functionality. For an employee, only one adjustment, or one reversal, or one supplemental request can be made in one off-cycle payroll.

SHARP FORMS:

• All SHARP forms have been revised except the DA-186 Authorization for State Additional Withholding Tax Deduction. Copies of the forms are available in the CBT training materials. Agencies should make copies of the forms as needed. SHARP revised forms are:
• DA-179 SHARP Maximum Arrears Payback
• DA-180 SHARP Paycheck Reversal/Adjustment
• DA-182 SHARP Paycheck Reprint Request
• DA-184 SHARP Authorization for Direct Deposit of Employee Pay
• DA-187 SHARP Supplemental Paycheck Authorization
• DA-217 SHARP Position Data Sheet
• DA-218 SHARP Employee Data Sheet
• DA-219A SHARP Account Code Maintenance
• DA-219B SHARP Position Pool ID Maintenance
• DA-219C SHARP Department Budget Earnings/Deductions/Taxes
• DA-6P Paycheck Stop Payment Request

Payroll Services will make the necessary modifications to the SHARP system to reflect these policy changes. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.

SAM:JJM

DATE:	October 13, 1998
SUBJECT:	Other Remuneration
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Authorization To Discontinue Tracking Other Remuneration In SHARP Version 7.0

Pursuant to the legal opinion dated October 12, 1998 as provided by the Department of Administration legal staff, the tracking of Other Remuneration in SHARP version 7.0 payroll system is being discontinued effective immediately.

There should NOT be any usage of the "REM" earnings code with the first paychecks issued out of SHARP version 7.0. This applies to the pay period beginning October 4, 1998 and ending October 17, 1998 with a paycheck date of October 30, 1998.

Please do not use the "REM" earnings code on the timesheets. If you have "REM" setup as additional pay, please access the Additional Pay 1 panel through Go/Compensate Employees/Maintain Payroll Data U. S./Use/Additional Pay. Enter 10/4/98 as the "EARN END DATE" to discontinue tracking Other Remuneration. Please be sure that you have the appropriate Additional Pay panel for the "REM" earnings code and that the "Addl Seq #" is set to 1. The "Ok to Pay" box should also be turned off (left blank).

SAM:JM:LI

DATE:	October 23, 1998
SUBJECT:	Key Payroll Processing Dates in November, 1998
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Payroll processing deadlines which need to be noted due to the holidays which occur in November, 1998

Friday, November 27, 1998, is a designated holiday for state service in 1998; therefore, the pay date for the payroll period ending 11/14/98 is Wednesday, November 25, 1998. Direct deposit advises will be mailed on Monday, November 23; paychecks will be mailed on Tuesday, November 24.

Due to the Veterans Day and Thanksgiving holidays in November, there are some other variations to the 'normal' payroll processing deadlines which occur during the month of November. Agencies are asked to note the following key payroll processing dates which occur on a day of the week that is different than usual:

Thursday, November 5 - Regents' on-cycle payroll files for the payroll period ending 10/31/98 are due to the Department of Administration by 6:00 am on November 5 to ensure timely issuance of the pay on November 13, 1998. (These are normally due on Friday)

Friday, November 13 - Time and leave interface agencies must have time and leave files for the period ending 11/14/98 submitted to the Department of Administration for processing by 5:00 pm on November 13 (normally due on Monday). Paper-user agencies should submit time and leave documents to Payroll Services by 5:00 pm on November 13.

Monday, November 16 - Paysheets for the on-cycle payroll for the period ending 11/14/98 will be created on November 16 (normally created on Tuesday). All job actions (i.e., promotions, terminations, new hires, leave of absences, step increases, etc.) must be entered by 5:00 pm on November 16 in order to be reflected on the paysheets for this period. The first on-cycle preliminary pay calculation for the period ending 11/14/98 will also occur on November 16; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 5:00 pm.

Wednesday, November 18 - Final pay confirmation for the on-cycle payroll for the period ending 11/14/98 will occur on November 18 (normally occurs on Friday). All employees' time and leave records must be 'OK to Process' by 5:00 pm on November 18 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 5:00 pm on November 18 in order to be reflected in the final paycheck created for the employee. The general ledger extract for the period ending 10/31/98 will also be created on this date. Regents' on-cycle payroll files for the payroll period ending 11/14/98 are due to the Department of Administration by 6:00 am on November 18 to ensure timely issuance of the pay on November 25, 1998. PLEASE NOTE: Only two SHARP preliminary payroll calculations will occur for the period ending 11/14/98. In addition, an off-cycle will not be available to process late paychecks with the same pay date as the on-cycle payroll. The earliest date that an employee can receive an off-cycle check for the period ending 11/14/98 is Monday, November 30, 1998, providing the necessary supplemental or adjustment run control has been entered by 5:00 pm on Monday, November 23.

Thursday, November 19 - On-line access to SHARP for all users will not be available due to batch processing which must occur to ensure timely issuance of payroll on November 25, 1998.

Friday, November 20 - Final on-cycle SHARP payroll reports, with the exception of the KPAYWAGE, will be available on November 20 in the agency directories on the MVS. Final on-cycle payroll reports (except for the KPAYWAGE) for paper-user agencies will be distributed on November 20.

Monday, November 23 - KPAYWAGE reports for the on-cycle for the payroll period ending 11/14/98 will be available on November 23 in the agency directories. KPAYWAGE reports for paper-user agencies will be distributed on November 23. The first SHARP off-cycle (Run A) and the first Regents' off-cycle for the payroll period ending 11/14/98 will be processed November 23. SHARP agencies have until 5:00 pm on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle payroll. Regents' off-cycle payroll files must be approved by 5:00 pm on November 23 in order to be included in the off-cycle. In order to be approved by 5:00 pm on November 23, the Regents' off-cycle payroll files must be received by 5 pm on the preceding business day. PLEASE NOTE: paychecks for this off-cycle will be dated November 30, 1998 (NOT NOVEMBER 25). Encumbrance transactions for the SHARP on-cycle payroll for the period ending 11/14/98 will be posted to STARS during Monday night's STARS batch processing cycle.

Wednesday, November 25 - PAYDAY for the payroll period ending 11/14/98. The second SHARP off-cycle (Run B) and the second Regents' off-cycle for the payroll period ending 11/14/98 will be processed. SHARP agencies have until 5:00 pm on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle payroll. Regents' off-cycle payroll files must be approved by 5:00 pm on November 25 in order to be included in the off-cycle. In order to be approved by 5:00 pm on November 25, the Regents' off-cycle payroll files must be received by 5 pm on the preceding business day. Checks for this off-cycle payroll will be dated December 2, 1998.

Attached is a calendar for the month of November, 1998 which highlights the key payroll processing activity for the month. 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 these informational circulars.

Please make note of the above payroll processing dates and adjust your schedules accordingly. If, in order to ensure the timely issuance of the payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel. On-line user agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paperuser agencies will be notified of any changes to these dates via telephone.

SAM:JJM:LI

Attachment (pdf)

DATE:	October 26, 1998
SUBJECT:	Change in Social Security Base Rate
EFFECTIVE DATE:	January 1, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Social Security Wage Base Increases to $72,600 effective January 1, 1999

Beginning January 1, 1999 the social security wage base for OASDI will be increased. The employee and employer contribution rates will remain the same.

The OASDI wage base will increase to $72,600, up from the 1998 wage limit of $68,400. The employee contribution rate remains at 6.2% with a maximum employee contribution of $4501.20. There is no limit on the Medicare wage base. The employee and employer contribution rates for the Medicare tax remain at 1.45%.

For Federal employees at Kansas State University who were hired before January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45% and beginning January 1, 1994, there is no maximum. Federal employees hired after January 1, 1984 will have a contribution maximum for OASDI of $4501.20 and HI (Medicare) will have no maximum. The employer rates remain the same as the employee rates.

For Kansas Police and Fireman's program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% and beginning January 1, 1994 there is no maximum.

SAM:JJM:LI

DATE:	October 23, 1998
SUBJECT:	SHARP Version 7.0 - Payroll Pointers #1
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Helpful Payroll Processing Information

To assist users in their understanding of the upgraded SHARP 7.0 payroll system and to inform users of new developments based on recent testing, Payroll Services in the Division of Accounts and Reports has compiled the following list of payroll pointers. Please provide a copy of this summary to all SHARP payroll users in your agency.

GENERAL:

1. Arrearage collection - If an employee has an outstanding arrearage balance, the on-cycle pay calculation will collect as much of the arrearage as possible, reducing the employee's net pay to zero. Agencies should monitor the KPAY007 Deductions in Arrears Report for large arrearage balances and establish deduction overrides where needed. Agencies should also monitor the preliminary KPAY002-Payroll Register for zero net paychecks and determine if action should be taken prior to final pay calculation.
2. Direct Deposit - With enhanced functionality in 7.0, employees are now able to allocate net pay between multiple financial institutions and also receive a paycheck along with direct deposit. After an employee makes a change to their direct deposit information and the change has been pre-noted, agencies should verify the correct distribution of the employee's net pay by monitoring the final KPAY002 report which shows net pay by paycheck and advice (ie, 'C' or 'A' beside the net amount on the right side of the report). Also, the KDDP002-Direct Deposit Register lists net pay amounts for each account within each financial institution.
   
   If an employee is receiving both a paycheck and advice, the pay stub for each will only show the net pay for that paycheck/advice. The net from each should be added together to obtain the employee's total net. All other earnings and deductions shown on the pay stub reflect the employee's total compensation for the pay period.
3. On-line Paycheck - Users must be logged into SHARP through the Application Server in order to use the new on-line paycheck functionality. Also, during the time period that on-cycle paychecks are being calculated (Wednesday through Friday of the week before payday), users will receive an error message if they try to calculate an on-line paycheck.
4. Earnings Codes -The new earnings code for regular overtime is 'OTP' and 'O28' for 28-day overtime. The following earnings codes have been inactivated effective 10/4/98: OVT, FCB, IEL, N17, SF0, SF2, and SF4.

ADJUSTMENTS:

1. Benefit/Deduction Adjustments - Savings plan and retirement plan changes (KPERS, Deferred Compensation, TSA, and VTSA) that result in paycheck adjustments can be processed the same as in 4.02. The effective-dated benefit change should be made to the employee's record prior to entry of the paycheck adjustment request. These should not be submitted to Payroll Services as stated in previous memorandums and CBT training materials.
2. Multiple Adjustments - If multiple transactions are requested for the same employee in the same off-cycle, the priority for processing will be: supplemental, centrally entered adjustment, agency entered adjustment and reversal. The transactions that do not process will show on-line as a payroll error message and also on the KPAY213 Final Error Messages report. Paycheck reprints and reversals can process in the same off-cycle as any of the above transactions.
3. Prior Year Adjustments - If a paycheck is requested for an adjustment that is over 2 years old, it will error during payroll calculation. If an adjustment is required for these paychecks, complete the DA-180 form and send to Payroll Services for processing.
4. Time Adjustments - New indicators will display under the 'Adj' column on the left side of the Time Adjustments panel. When a new row is added, the indicator displays 'I'. If the adjustment is pay affecting, the indicator will change to 'Y' when the panel is saved. If the adjustment is non-pay affecting, the indicator will change to 'L' when the panel is saved. The 'L' rows will NOT update to payroll for a pay affecting adjustment. The 'Y' rows will be grayed out when you exit the panel. If a keying error was made, additional 'Y' rows can be added until the off- cycle processes.
5. Earnings Codes - When adjusting a paycheck for an exempt employee, the new 'leave' earnings codes should be utilized. For example, 'VAE' should be used in place of 'VAC' for vacation leave. Regular hours will not display correctly on the paycheck for an exempt adjustment, but the amount will be correct.
   
   Adjustments to paychecks with inactivated earnings codes (#4 under 'GENERAL') will error during the payroll process. The on-line system will not prevent agencies from requesting an adjustment to a paycheck containing an inactivated earnings code; however, the off-cycle payroll process will cause the paycheck to error. If an adjustment is required for these paychecks, complete the DA-180 form and send to Payroll Services for processing.
6. Taxes - Taxes will be calculated at the rates in effect as of the paycheck date for the taxable grosses on the adjustment check. Preliminary pay calculations should be thoroughly reviewed so that adjustments are kept to a minimum. Adjustments should be processed in a timely manner to ensure that the adjustment is processed in the same calendar year as the paycheck being adjusted.

SAM:JJM:LK

DATE:	November 19, 1998
SUBJECT:	New Tables for State Withholding Tax for 1999
EFFECTIVE DATE:	January 1, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New State Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 1999

The Kansas Department of Revenue has issued new percentage tables for computing the state withholding tax deductions effective for all paychecks issued on or after January 1, 1999. The standard deduction for one withholding allowance is changing to $2250.00 per year in calendar year 1999.

The attached tables have been prepared for use in computing all state withholding tax payments for wages paid on or after January 1, 1999. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.

At this time, Payroll Services has not been notified of any changes in the federal income tax withholding or earned income credit tables most recently issued in Accounts and Reports Information Circulars No. 98-P-011 and 98-P012 dated November 26, 1997. Any changes which may occur to the tables will be issued in a separate informational circular when the information is available.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents Institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.

SAM:JJM:EB
Attachment (pdf)

DATE:	December 4, 1998
SUBJECT:	1998 Calendar Year-End Processing
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Schedule for Processing Transactions During 1998 Calendar Year-End

As 1998 calendar year-end approaches, the Division of Accounts and Reports has begun making preparations for the issuance of calendar year 1998 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 1998 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 1999 balances; a corrected W-2 (Form W-2C) for 1998 will not be issued for the employee involved.

FINAL 1998 PAYCHECK

The final on-cycle paycheck for calendar year 1998 will be issued December 24, 1998. Paychecks will be mailed on December 23, 1998 and advises will be mailed on December 22, 1998. The final off-cycle paycheck for calendar year 1998 will be issued on December 31, 1998 for the off-cycle processed on December 28, 1998.

PAYCHECK REVERSALS

Any 1998 paychecks that are undeliverable should be reversed as soon as possible. SHARP agencies have until 5:00 p.m. on December 28, 1998 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHARP Paycheck Reversal Adjustment', for any paycheck reversals by 12:00 noon on December 28, 1998. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 28, 1998 will update calendar year 1999 balances and will not be reflected in the employee's 1998 W-2.

PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS

SHARP agencies have until 5:00 p.m. on December 28, 1998 to enter paycheck adjustment requests for any 1998 paychecks. Adjustments processed in the December 28, 1998 off-cycle payroll will be reflected on the employee's 1998 Form W-2. Please remember that only one adjustment can be processed per employee per off-cycle; this applies to agency entered adjustments, supplementals and centrally entered adjustments. If a 1998 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal Adjustment', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 21, 1998. The December 21 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.

Since the upgrade to version 7 of SHARP, a bi-weekly deduction amount is no longer maintained for Flexible Spending Account deductions (FSA). Instead, FSA deductions are calculated by subtracting the year-to-date FSA deduction amount from the employee's annual pledge amount and then dividing by the number of payroll periods remaining in the calendar year (including the payroll period being processed). As a result, problems could occur during the last three offcycles of the calendar year for the payroll period ending December 12, 1998 (ie, off-cycles processed on December 21, 23 and 28) if a paycheck adjustment is processed for a check which contains an FSA deduction and the employee has reached their FSA pledge amount for the year. In this situation, the adjustment would result in a refund to the employee of the FSA amount on the paycheck being adjusted. Agencies should not enter paycheck adjustment requests in the three off-cycles for the period ending December 12 if the paycheck contains an FSA deduction and the employee has reached their FSA annual pledge amount. Instead, agencies should submit Form DA-180 to Payroll Services for the paycheck needing to be adjusted.

Since the upgrade to version 7 of SHARP, a bi-weekly deduction amount is no longer maintained for Flexible Spending Account deductions (FSA). Instead, FSA deductions are calculated by subtracting the year-to-date FSA deduction amount from the employee's annual pledge amount and then dividing by the number of payroll periods remaining in the calendar year (including the payroll period being processed). As a result, problems could occur during the last three off-cycles of the calendar year for the payroll period ending December 12, 1998 (ie, off-cycles processed on December 21, 23 and 28) if a paycheck adjustment is processed for a check which contains an FSA deduction and the employee has reached their FSA pledge amount for the year. In this situation, the adjustment would result in a refund to the employee of the FSA amount on the paycheck being adjusted. Agencies should NOT enter paycheck adjustment requests in the three off-cycles for the period ending December 12 if the paycheck contains an FSA deduction and the employee has reached their FSA annual pledge amount. Instead, agencies should submit Form DA-180 to Payroll Services for the paycheck needing to be adjusted

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 21 for inclusion in the December 28 off-cycle. However, if a large volume of DA-180 forms is received on the December 21 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 1998 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed.

Adjustment requests entered on or after December 29, 1998 which are adjusting paychecks issued prior to January 1, 1999 will not result in a W-2C; the adjustment will update the employee's 1999 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests which are entered either by agencies or centrally by Payroll Services, on or after December 29 will update the employee's 1999 payroll balances.

REGENTS' INSTITUTIONS: OFF-CYCLE FILES

1998 Paycheck Reversals

Regent Institutions must submit all transmittals for 1998 paycheck reversals by 5:00 p.m. on Thursday, December 24, 1998 in order to update the employee's 1998 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 1999 payroll balances regardless of the paycheck issue date of the paycheck being reversed.

1998 Adjustments and Supplementals

In order to update employee balances for 1998, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Thursday, December 24, 1998. The off-cycle for the pay period ending December 12, 1998 generated on the night of Monday, December 28, 1998 will have an issue date of December 31, 1998; all activity for this off-cycle will be reflected in the employees' 1998 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 1998 date.

1999 Adjustments and Supplementals

With the exception of arrearages or refunds for FICA and or Medicare taxes withheld on or before January 1, 1999, any adjustments or supplementals submitted after 5:00 p.m. on Thursday, December 24, 1998, will be considered to be 1999 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 1999 business, the employee's 1999 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 1999 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 1999, agencies should default the pay adjust check date to January 1, 1999).

With the exception of FICA and/or Medicare tax refunds or arrearages for tax years prior to 1999, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 1999 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 1999 payroll balances.

Arrearages or refunds for FICA and or Medicare taxes for taxable years prior to 1999 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 FICA 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 FICA and/or Medicare refunds/arrearages identified after the December 28, 1998 deadline will not be processed until the February 1, 1999 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 25, 1999. The deadline for submitting payroll interface files for the February 1 off-cycle is 5:00 p.m. on January 29, 1999.

GENERAL REMINDERS

The deduction END date on the general deduction panel for 1998 United Way contributions should be dated between December 13, 1998 and December 26, 1998 in order for the last 1998 deduction to be taken on the paycheck issued December 24, 1998. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 1999, agencies can enter a new row effective-dated between December 13, 1998 and December 26, 1998 in order for the first deduction for 1999 to be taken on the January 8, 1999 paycheck. If the 1999 deduction is to be taken over 26 pay periods, a deduction end date of December 12, 1999 should be entered.

Every effort should be made to collect all arrearage balances either by personal reimbursement or paycheck deduction prior to the cut-off date of December 28, 1998 (December 21, 1998 for paper user agencies). Please refer to the most recent KPAY007, 'Deductions in Arrears Report' and evaluate all existing arrearages for your agency and verify that collection will be made; agencies should continue monitoring the KPAY007 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.

One of the changes implemented at the time of the v7.0 SHARP upgrade is the new advance ('ADV') earnings 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 1998 will increase the employees' W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 12, 1998 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 24, 1998 (i.e., on-cycle for the payroll period ending December 12) should be collected by personal reimbursement to avoid the advance from being included in the employee's 1998 Form W-2.

The 1998 W-2 forms will again be mailed directly to the employee's home address stored on the Personal Data 1 panel in the Personnel Administration window. Please make any name, address, or social security number changes to this panel by January 1, 1999 to guarantee their inclusion in the W-2 data. However, since this panel is not effective dated, the information on the panel as of the day the final W-2 data is loaded will be the data reflected on the W-2 form. This final load may take place anytime between January 1, 1999 and January 15, 1999.

Regents 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 January 1, 1999.

W-2 forms will be mailed on or before January 31, 1999. A message will appear on the SHARP message panel to advise agencies of the W-2 mailing date during the latter part of January.

Attached is a calendar for the month of December 1998 that highlights the key payroll processing activity. This calendar does not provide the same level of detail as that provided in this informational circular or in the SHARP bi-weekly payroll schedules issued under Informational Circular Nos. 98-P-005, dated October 16, 1997 and 99-P-005, dated October 13, 1998. The attached calendar is intended for use as a supplementary reference tool to these informational circulars.

Please make note of the above payroll processing dates and adjust your schedules accordingly. 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 state agencies via the SHARP on-line message panel. On-line agencies should be reviewing the SHARP message panel on a daily basis to determine if new messages have been added. Paper-user agencies will be notified of any changes to these dates via telephone.

Attachment (pdf)

SAM:LK

DATE:	December 8, 1998
SUBJECT:	New Tables for Federal Withholding Tax for 1999
EFFECTIVE DATE:	January 1, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 1999

The Internal Revenue Service (IRS) has issued advance copies of the new federal percentage tables for computing the federal withholding tax deductions effective for all paychecks issued on or after January 1, 1999. In addition, the standard deduction for one withholding allowance changes to $2,750.00 per year in calendar year 1999.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 1999. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount. Please refer to Division of Accounts and Reports Informational Circular No. 99-P-013, issued November 19, 1998 for the state withholding tax formula.

IRS regulations require employees who claim an exempt status from federal withholding tax, for income earned in the United States, to file a new W-4 form annually. Employees who claimed an exempt status in calendar year 1998 must file a new W-4 form for calendar year 1999 if they wish to continue their exempt status.

Employees may be eligible for the withholding tax 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.

Additionally, 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 form annually. Employees who claimed a non-resident alien exempt status in calendar year 1998 must file a new 8233 form for calendar year 1999 if they wish to continue their non-resident alien exempt status.

The Department of Administration will be updating the SHARP federal and state tax data records on December 21, 1998, for all employees currently claiming exemption from withholding; the tax data record updates will be effective January 1, 1999. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim exemption from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exemption from withholding in 1999. The new tax data row should be added effective January 2, 1999. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.

A new-effective dated row will also be added in the SHARP federal tax data records on December 21, 1998 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 1999. The new tax data row will be dated January 2, 1999. Payroll Services will update the 8233 indicator on the tax data records once a form for calendar year 1999 has been submitted.

The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose withholding tax status was updated on December 21, 1998. The listing will include department, employee ID, name, SSN, and withholding tax exempt status. A listing will not be provided for the 'Non-Resident Alien' updates since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services.

The Department of Administration will make all of the necessary changes in the computation of withholding taxes for SHARP agencies. Regents' institutions are responsible for implementing the new withholding tax rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.

SAM:JJM:EB
Attachment (pdf)

DATE:	December 9, 1998
SUBJECT:	New Tables for Earned Income Credit for 1999
EFFECTIVE DATE:	January 1, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 1999

The Internal Revenue Service (IRS) has issued the new percentage tables for computing the advance earned income credit (EIC) payments effective for all paychecks issued on or after January 1, 1999. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 1999. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.

The Internal Revenue Service has released the 1999 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 1999 Form W-5 is attached; the 1998 Form W-5 expires on December 31, 1998. The new form must be filed with the employer before advance 1999 payments can begin. Generally, employees have to successfully answer questions listed on page 2 of Form W-5 in order to be eligible for advance payments. Advance EIC qualifiers must have at least one qualifying child and expect that 1999 earned and adjusted gross income will each be less than $26,928 (include spouses' income if filing jointly), in addition to meeting other criteria. Employees cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income) for 1999. A nonresident alien may not claim the EIC for 1999 unless married to a U.S. citizen and elects to be taxed as a resident alien for all of 1999.

There are two employee status categories that can effect the amount of advance EIC payments: (a) single or married without spouse filing certificate, and (b) married with both spouses filing certificate. Married employees must indicate on Form W-5 if their spouse receives advance EIC payments. When updating the employee's EIC status in SHARP, please verify that the federal tax data record correctly reflects the employee's status as shown on the completed Form W-5.

The Department of Administration will be updating the existing SHARP federal tax data records on December 21, 1998, for all employees currently claiming the EIC to reflect an Earned Income Credit status of 'Not applicable'. The tax data record updates will be effective January 1, 1999. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 1999; paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 1999. The new tax data row should be added effective January 2, 1999. Please refer to the Employee Payroll Tax Data section of the Payroll module in the on-line CBT (Computer-Based Training) for specific instructions on entering employee tax data information.

The Division of Accounts and Reports will provide a listing to agencies which identifies all employees whose EIC status was updated in SHARP on December 21, 1998. The listing will include department, employee ID, name, SSN, and EIC exempt status.

The Department of Administration will make all of the necessary changes in the computation of EIC for SHARP agencies. Regents institutions are responsible for implementing the new EIC rates in their respective payroll systems effective with all payroll warrants issued on or after January 1, 1999.

SAM:JJM:EB
Attachment (pdf)

DATE:	December 23, 1998
SUBJECT:	Paycheck Adjustments
EFFECTIVE DATE:	Immediately
CONTACT:	Joyce Dickerson	(785) 296-3979
APPROVAL:
SUMMARY:	Processing Paycheck Adjustments for Paychecks Which Contain an FSA Deduction and the Original Paycheck was Issued in a Previous Calendar Year

Effective with the implementation of SHARP v7.0 in October, 1998, bi-weekly deduction amounts are no longer maintained for Flexible Spending Account (FSA) deductions. Instead, FSA deductions are calculated by subtracting the year-to-date FSA deduction amount from the employee's annual pledge amount and then dividing by the number of payroll periods remaining in the calendar year (including the payroll period being processed). This change, coupled with the fact that all payroll adjustments are treated as current year activity, means that agencies will need to follow specific procedures in order to accurately process a paycheck adjustment when the original paycheck was issued in a previous calendar year and the paycheck contains an FSA deduction.

For paycheck adjustments, the off-cycle payroll process will determine which paycheck deductions to calculate based on the earnings end date of the paycheck being adjusted. In the case of FSA deductions, the off-cycle will select the maximum effective-dated FSA benefit information which is less than or equal to the earnings end date on the paycheck being adjusted. The 'Annual Pledge' and 'Contributions YTD' from this effective-dated row will be used in calculating the FSA deduction for the paycheck adjustment; however, the number of payroll periods remaining in the calendar year will be based on the payroll period in which the adjustment is being processed.

To illustrate:

EXAMPLE

On-cycle paycheck #123456 was originally issued on May 15, 1998 for an FLSA nonexempt employee for the payroll period ending 05/02/98; the paycheck is for the earnings periods 4/19/98 through 4/25/98 and 4/26/98 through 5/02/98. There are 17 payroll periods remaining in the calendar year (including the period ending 05/02/98) at the time the on-cycle is calculated. The employee is enrolled in FSA benefits; the employee's current FSA row is for coverage effective 01/01/98 and reflects the following information: annual pledge amount = $2600.00 and contributions YTD = $900.00. The FSA amount calculated on paycheck #123456 is $100.00

In February 1999, the agency realizes the paycheck needs to be adjusted due to shift differential being underreported for the employee for the payroll period ending 05/02/98. The FSA row for the coverage period effective 01/01/98 now reflects the following information: annual pledge amount = $2600.00 and contributions YTD = $2000.00. The agency requests a paycheck adjustment for paycheck #123456 in the second off-cycle for the payroll period ending 02/06/99; there are 23 payroll periods remaining in calendar year 1999 (including the period ending 02/06/99). The off-cycle will calculate the FSA deduction for the adjustment check as follows: ($2600 - 2000) / 23 = $26.09. This adjustment will result in an FSA refund of $73.91 to the employee. If the contributions YTD had been equal to $2600.00 (ie, the annual pledge amount), the refund would have been for $100.00.

To prevent erroneous FSA refund/arrearages from occurring on paycheck adjustments which are processed in calendar year 1999 for paychecks issued prior to 1999 which also contain an FSA deduction, the following procedures should be followed:

1. Prior to requesting the paycheck adjustment on-line, the agency should contact the Benefits Unit in the Division of Personnel Services and request that a deduction override amount be entered on the appropriate FSA benefit row for the employee. The override amount should be for the amount deducted on the original paycheck (in the example above, the override amount would be $100.00).
2. Once the override amount has been entered, the agency should enter the paycheck adjustment request.
3. After the off-cycle has been generated, verify that the adjustment processed correctly.

DATE:	January 11, 1999
SUBJECT:	1999 W-2 Production Reports
EFFECTIVE DATE:	Immediately
CONTACT:	Sunni Zentner,Payroll Services	(785) 296-7058
APPROVAL:
SUMMARY:	1999 W-2 Production reports to be Run Throughout the Year

In an effort to reduce the time and effort required of Regents and SHARP agency personnel as well as Payroll Services staff at the end of the calendar year, the 1999 W-2 production reports will be produced throughout the calendar year. By producing the reports on a scheduled basis during the year, the work associated with identifying and correcting errors/address problems can be more evenly distributed. Following is a list of the dates the 1999 W-2 production reports are scheduled to be generated:

• Friday, January 22, 1999
• Friday, February 5, 1999
• Friday, March 5, 1999
• Friday, April 2, 1999
• Friday, April 30, 1999
• Friday, May 14, 1999
• Friday, June 11, 1999
• Friday, July 9, 1999
• Friday, August 6, 1999
• Friday, September 3, 1999
• Friday, October 1, 1999
• Friday, October 29, 1999
• Friday, November 12, 1999
• Wednesday, November 24, 1999
• Friday, December 10, 1999
• Thursday, December 23, 1999

Agencies should anticipate finding copies of the KTXPR55 and TAX910ER reports in their agency directory on the first working day following the above listed scheduled dates. Agencies should access the TAX910ER through Rapid Filer to review the report; a copy of the TAX910ER will be distributed to paper agencies. Any necessary corrections should be processed as soon as possible to eliminate the error from appearing on the next TAX910ER report that is generated. No action is required by the agency on the KTXPR55. Once the W-2s for 1999 are complete, a "final" KTXPR55 report will be generated for each agency's information and review. An informational circular will advise agencies of the date the final KTXPR55 report is created.

In addition, the Regents' institutions will receive, via either e-mail or fax from Payroll Services, a copy of the errors from the 1999 KTAX900 report. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regents' responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.

Regents' institutions are also reminded, in accordance with Informational Circular No. 1242 issued March 2, 1994, to submit copies of the completed forms 8233, Exemption From Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual, to Payroll Services on a timely basis.

SAM:JJM

DATE:	January 7, 1999
SUBJECT:	Visa Permit Record on Regents' Inbound Management Reporting Interface
EFFECTIVE DATE:	February 1, 1999
CONTACT:	Nancy Ruoff	(785) 296-5369
APPROVAL:
SUMMARY:	Add/Change Capability for Visa Permit Record on Regents' Inbound Management Reporting Interface

A field has been added to the Visa Permit Record on the Regents inbound management reporting interface (MRI) to allow for the designation of the record as an Add (New Record) or Change (Change existing record). The valid values are 'A' (Add) or 'C' (Change). A copy of the updated MRI layout is attached to this circular; the Visa Permit Record is located on page 12 of the layout and is the only record being changed at this time.

As the Visa Permit Data is not an effective dated record, the 'Add' capability should only be utilized if there is no existing Visa Permit record in SHARP for the employee. The 'Change' capability should be used to make a change to an employee's existing Visa Permit Data record. The new file layout will go into effect for all Regent MRIs submitted for processing on or after February 1, 1999.

Any questions regarding this information should be directed to Nancy Ruoff in the Payroll Services Section at (785) 296-5369.

SAM:NR
Attachment (.pdf)

DATE:	January 11, 1999
SUBJECT:	W-2 WAGE AND TAX STATEMENTS FOR CALENDAR YEAR 1998
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services
	Sunni Zentner	(785) 296-7058
	Debbie Esquibel	(785) 368-6313
APPROVAL:
SUMMARY:	Information Pertaining to Employee 1998 W-2 Statements

The final version of the KTXPR55 W-2 Listing has been generated. The KTXPR55 report contains all information printed on the 1998 W-2 Wage and Tax Statement for each employee of your agency. Agencies which are on-line users of SHARP will find the report in your agency mailbox on the MVS dated January 7, 1999. The KTXPR55 W-2 Listing will be distributed to paper user agencies via the normal report distribution process.

The KTXPR55 W-2 listing is sorted as follows: 1) by department number, 2) alphabetically by last name, and 3) by social security number (SSN). Totals are included for each 10-digit department number as well as a grand total summary for the entire agency. The 'DIST. TOTAL' represents the total number of 1998 W-2's that were printed for your agency. The Department of Administration will be preparing a STARS voucher to bill each agency for the applicable costs associated with mailing the 1998 W-2's.

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

In situations where the address information is not correct or is not sufficient for postal delivery, the W-2 form will be mailed to the agency for distribution to the employee. The return address for all W-2 forms mailed this year will again be the agency address.

All 1998 W-2's which are considered undeliverable to the employees and are returned to the agency by the U.S. Postal Service should be retained by the agency until April 15, 1999. At that time, they should be sorted in alphabetical order by last name, first name, middle initial within department number and returned to the Division of Accounts and Reports, Payroll Services.

In cases where the 1998 W-2 Wage and Tax Statement form does not agree with your records, please send a copy of the form to this office with an explanation. For all cases where the social security number is incorrect, please include a copy of the employee's social security card with the explanation. State agencies are not authorized to make changes on the W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.

Duplicate laser printed W-2's for calendar year 1998 will be printed for distribution to the agencies on each Monday, beginning February 15, 1999 and continuing through April 12, 1999. The agencies are requested to submit one blanket request for duplicate 1998 W-2's for each printing. Requests received in the Division of Accounts and Reports, Payroll Services, by noon of each Thursday will be printed for distribution the following Monday. The requests should be in social security number order and should include each employee's name and employee ID in addition to the SSN. Requests for duplicate W-2's for years prior to 1998 should be submitted separately. Duplicate 1042S form requests should also be submitted separately. Requests for either duplicate W-2 or 1042S forms should be directed to Debbie Esquibel in Payroll Services.

Attachment A, which defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form, has been included to assist agencies in answering questions regarding the W-2 forms. On-line agencies may also want to consider utilizing the SHARP KPAY318, 'Year to Date Balances' report to assist in answering W-2 related questions. The KPAY318 report is located in SHARP v7.0 under the 'Compensate Employees' window, 'Maintain Payroll Data U.S.', 'Report', 'Year to Date Balances'. See Accounts and Reports Informational Circular No. 97-P-005 dated October 31, 1996 for additional information regarding the KPAY318.

Beginning with 1998 returns, the Internal Revenue Service has eliminated Form 4782, Employee Moving Expense Information. Therefore, agencies will no longer receive this form for employees of their agency. For 1998 and hereafter, only qualified reimbursements made directly to an employee will be reported in Box 13P. Nonqualified expenses will continue to be reported as wages and will be reflected in boxes 1, 2, 5 and 17 on Form W-2. Any amounts reported in Box 13P are reflected on the KTXPR55 report.

Please note that the on-cycle paychecks dated December 24, 1998 and the off-cycle paychecks dated December 31, 1998 are included in the 1998 W-2 amounts.

SAM:JJM:wm
Attachment (.pdf)

DATE:	January 11, 1999
SUBJECT:	Change in Organization Dues Deduction Amount
EFFECTIVE DATE:	January 10, 1999
CONTACT:	Janice Wolfley, Payroll Services	(785) 296-3699
APPROVAL:
SUMMARY:	Organization Dues Changes for AFSCME Locals

Please be advised that the regular bi-weekly dues for members of the following AFSCMEKansas Public Employees' Union Council 64 will be changing effective with the payroll period beginning January 10, 1999 and ending January 23, 1999 paid February 5, 1999:
 

The Division of Accounts and Reports, Payroll Services team will make the necessary updates to the SHARP system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after February 5, 1999.

SAM:JJM:CJ

DATE:	January 29, 1999
SUBJECT:	Non-Resident Alien Earnings
EFFECTIVE DATE:	Immediately
CONTACT:	Nancy Ruoff	(785) 296-5369
APPROVAL:
SUMMARY:	Clarification on Payroll Issues for Regents' Payroll System Agencies Reporting Earnings for Non-Resident Alien Employees

Effective with the implementation of SHARP v7.0 in October, 1998, Non-Resident Alien employees and 1042 earnings balances are maintained utilizing as 'vanilla' an approach to PeopleSoft as possible. Following is a clarification of certain issues that have been addressed since the implementation of SHARP v7.0.

• Earnings for Non-Resident Alien employees should be submitted by Regents institutions using earnings codes NR4, NR5, NF4, or NF5. SHARP evaluates the employee's current 1042 balance, tax treaty limit, and current NR or NF earnings to determine the amount of earnings to be updated to 1042 balances and/or W2 balances. Once an employee has reached the 1042 tax treaty maximum eligible earnings limit for the year, the system will automatically begin updating W2 balances.
• PeopleSoft v7.0 does not evaluate maximum presence limits for Non-Resident Alien employees. Regents institutions are responsible for determining when a Non-Resident Alien employee meets the maximum presence limit. Once an employee meets the maximum presence limit, the employee is no longer eligible for NR4, NR5, NF4, or NF5 earnings and all future earnings should be reported using REG (or another valid earnings codes). An employee's Special_FWT_Status must remain as an 'A' (Non-Resident Alien) on the maximum effective dated Fed Tax Data row for any year in which they have 1042 earnings. After an employee meets the maximum presence limit, the employee's Special_FWT_Status should be set to 'N' (None) for subsequent years.
• It continues to be the responsibility of the Regents institutions to correctly determine the applicability of a tax treaty for any income in question and to inform the Department of Administration of any changes to the tax treaty table. Many countries have multiple treaty IDs on the tax treaty table to identify various income code/income limit/payer of income combinations. It is the responsibility of the Regents institutions to gather all of the necessary information to make the correct determination of tax exemption and treaty ID. Regents institutions should review the treaty IDs assigned to employees on a regular basis to insure the correct treaty ID is in use.
• Non-Resident Alien employee information for country, income code, and year-to-date 1042 taxable gross is provided on the Regent's Outbound Management Reporting File (start position 5951). Regents institutions should review year-to-date 1042 taxable gross balances on a regular basis throughout the year and forward any questions regarding differences to Sunni Zentner in the Payroll Services Section at (785) 296-7058.

SAM:JJM:NR

DATE:	March 6, 1999
SUBJECT:	Employee Taxability for the Value of Certain Uses of State-Owned Vehicles
EFFECTIVE DATE:	April 1, 1999
CONTACT:	Nancy Ruoff	(785) 296-5369
APPROVAL:
SUMMARY:	Information Pertaining to Employee Use of State-Owned Vehicles

This Informational Circular is issued as an update to Informational Circular No. 98-P-024, dated March 16, 1998. The information provided herein is based on current provisions of Internal Revenue Code and Regulations, as well as Kansas Statutes Annotated and Administrative Regulations.

REQUIREMENTS

If a state-owned vehicle is used for business purposes only and kept on the business premises except for business use and repair, there is no taxable "personal use". However if a vehicle is taken to an employee's personal residence (commuting) or is used for other "personal use", there is fringe benefit income. (Except for those exclusions set forth in Appendix D.)

In order to limit the fringe benefit income to commuting only, the following conditions must exist:

1. The vehicle must be owned or leased by the employer and be provided to employees for use in connection with the employer's business;
2. For business reasons, the employer requires the employee to commute to and/or from work in the vehicle;
3. The employer establishes a policy under which the employee may not use the vehicle for personal purposes, other than commuting or de minimis personal use;
4. The employer reasonably believes that, except for de minimis use, the employee does not use the vehicle for any personal purpose other than commuting;
5. The employee required to use the vehicle is not a control employee, i.e., an elected official, or appointee of the Governor who is confirmed by the Senate or other state officer comparable to the above officials; and
6. The employer accounts for the commuting use by including the appropriate amount in the employee's gross income.
7. The amount of fringe benefit income to be reported must be determined utilizing one of the IRS approved valuation methods, i.e., Annual Lease, Commuting, or Cents-Per-Mile valuation rules. See Appendix A.
8. Field employees, such as inspectors, who work (travel) out of their homes and have no office or duty location, would be subject to these reporting requirements. However, only trips incidental (other than the initial trip to and the trip home at the end of the day) are considered commuting for IRS reporting purposes.

A work sheet for computing the biweekly fringe benefit income amount has been designed to assist agency personnel/payroll officers in computing the biweekly amount of the fringe benefit income. See Statement of Personal Usage for State Provided Vehicles, Appendix B.

POLICY

1. The State's adopted policy as stated in K.S.A. 8-301 is that all state-owned vehicles are for official state business only, and may not be used for private business or for pleasure. However, specific exceptions contained in K.A.R. 1-17-2a permit employees to drive state vehicles home as follows:

   (a) (1) State-owned or leased motor vehicles shall not be used to commute between the employee's residence and the employee's official work station, except:

   1. when parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism;
   2. when the vehicle is used by an official or employee who is regularly called to duty after normal work hours in connection with law enforcement activities or dealing with emergencies which result from an act of God; or
   3. for trip vehicles assigned to the traveler, on the evening of the work day immediately preceding the date of travel or the evening of the work day in which travel is completed.
   (2) When the state-owned or leased motor vehicle is authorized to be used for travel to an employee's place of residence under paragraphs (1)(A) and (1)(B), the "reasonable distance" one-way between the employee's official work station and residence shall not exceed 10 miles unless the 10-mile limitation is specifically exempted by the secretary or the secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on a determination that driving the vehicle home will not increase the total one-way trip mileage between the official work station and the destination by more than 10 miles."
2. All employees who have state vehicles assigned to them for one or more days and who park the vehicle overnight at their residence, are subject to the requirement for reporting of fringe benefit income under (1) the Annual Lease Valuation Rule, (2) the Commuting Valuation Rule ($1.50 per one-way trip), or (3) the Cents-Per-Mile Valuation Rule. See Appendix A. Vehicles excluded from the reporting requirement are denoted in Appendix D.
3. The value of the fringe benefit income derived from such use of state vehicles shall be determined by the agencies from work sheets and data supplied by the employees (Appendices B and C) and reported within the payroll system.

AGENCY RESPONSIBILITY

1. Agencies shall:
    
   1. Identify and notify those employees who use state vehicles and who park those vehicles overnight at their residence (commuting) or use such vehicles for other "personal use" (except for those exclusions enumerated in Appendix D) that such use of the vehicles is deemed to be fringe benefit income valued at one of the three methods set forth herein, resulting in a taxable event to the employee.
   2. Agencies shall determine and install a procedure similar to the attached accounting work sheet that will record the work days on which vehicles were parked overnight at the employee's residences and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include as a minimum the data specified in the attached Statement of Personal Usage for State Provided Vehicles, Appendix B, including agency code, employee's name, social security number and vehicle license number.
2. The payroll system shall use reports or data provided by the agencies to:
    
   1. Record fringe benefit income chargeable to each affected employee listed.
   2. Calculate and withhold from each affected employee's pay the social security, Medicare and retirement contributions due.
   3. Calculate and withhold from each affected employee's pay the federal and state income tax due.
   4. Calculate the employer's share of social security, Medicare, retirement, unemployment compensation and workers compensation contributions due.
   5. Remit all withheld taxes and contributions to the appropriate authorities.
   6. Report on each affected employee's form W-2, the total fringe benefit income for the calendar year.

SAM:JJM:NR

Attachments (pdf)

DATE:	March 8, 1999
SUBJECT:	VTSA Company Changes
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Tax Sheltered Annuity Company Name Change

The Kansas Board of Regents has been notified that First American National Securities, no. 828, has changed its name to PFS Investments Inc. All other information about the company, including mailing address, remains unchanged.

Payroll Services will make the necessary modifications to the SHARP system to reflect this company name change. Regent Institutions are responsible for making the necessary modifications to their payroll systems for these changes.

SAM:JJM:EB

DATE:	March 16, 1999
SUBJECT:	Change in Organization Dues Deduction Amount
EFFECTIVE DATE:	April 4, 1999
CONTACT:	Janice Wolfley	(785) 296-3699
APPROVAL:
SUMMARY:	Organization Dues Changes for SEAK Organization 050

Please be advised that the regular bi-weekly organization dues for members of the State Employees Association of Kansas, deduction code 'ORG050', will be changing to $4.50 per biweekly period effective with the payroll period beginning April 4, 1999 and ending April 17, 1999 paid April 30, 1999.

The Division of Accounts and Reports, Payroll Services team will make the necessary updates to the SHARP system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after April 30, 1999.

SAM:JJM:NR

DATE:	April 8, 1999
SUBJECT:	Change in Organization Dues Deduction Amount
EFFECTIVE DATE:	April 4, 1999
CONTACT:	Janice Wolfley	(785) 296-3699
APPROVAL:
SUMMARY:	Organization Dues Changes for AFSCME Local 1270

Please be advised that the regular bi-weekly organization dues for members of the AFSCME Local 1270 organization, deduction code 'ORG270', will be changing to $10.11 per bi-weekly period effective with the payroll period beginning April 4, 1999 and ending April 17, 1999 paid April 30, 1999.

The Division of Accounts and Reports, Payroll Services team will make the necessary updates to the SHARP system to effect these changes for all employees for whom SHARP calculates pay. Regents institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after April 30, 1999.

SAM:JJM:NR

DATE:	June 1, 1999
SUBJECT:	Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE:	Immediately
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Annual review of housing, food service and other employee Maintenance rates required under K.S.A. 75-2961A and K.A.R. 1-19-9

Attached is a Form DA-171, Housing, Food Service and Other Maintenance Policy for your agency to complete. It is not necessary to return this form to the Division of Accounts and Reports. The completed form should be maintained at your agency. Any changes in rates will require entry into the SHaRP system through Compensate Employees window, Maintain Payroll Data U.S. menu, Additional Pay panel. Paper agencies should complete an Employee Data Sheet (DA-218 Part B) and submit it to the Division of Personnel Services for entry into SHaRP.

Regent institutions should also complete the Form DA-171 and maintain the completed form at their agency. Regents are responsible for updating any rate changes into their payroll system.

Attachment: DA-171 (.pdf)

SAM:JJM

DATE:	June 7, 1999
SUBJECT:	Addition of New Earnings Codes
EFFECTIVE DATE:	Payroll period beginning June 13, 1999
CONTACT:	Payroll Services	(785) 296-3146	(Roger.Basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of New Earnings Codes for FY 2000

Executive Directive 99-279 establishes two 5% pay differentials (Earnings Codes PD2 and PD3) for Juvenile Corrections Officers I with the Juvenile Justice Authority. The PD2 earnings code is to be used when the Juvenile Corrections Officers I is performing lead worker duties during the absence of a supervisor. The PD3 earnings code is to be used when the Juvenile Corrections Officer I is performing duties in a specialty unit that deals with acute behavior, chronic behavior, or psychiatric problems.

The earnings code will be displayed as follows:

Each of the above earnings codes are effective with the payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. Earnings codes 'PD2' and 'PD3' are established for use only by the following agencies: Atchison Juvenile Correctional Facility (355), Beloit Juvenile Correctional Facility (325), Larned Juvenile Correctional Facility (412), and the Topeka Juvenile Correctional Facility (319). Juvenile Corrections Officers I who satisfy the criteria for both pay differentials can only receive one of the differentials; they are not eligible for both.

SAM:JJM:RDB

DATE:	June 9, 1999
SUBJECT:	Addition of New Earnings Codes
EFFECTIVE DATE:	Payroll Period beginning June 13, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Addition of New Earnings Codes for FY 2000

Legislators will be eligible to receive a State Per Diem rate of $74.58 in fiscal year 2000. Legislators serving in the Legislature have the option to receive the new daily rate. Legislators who serve as board members for a state agency may also receive the increased rate. The following two earnings codes have been added to SHaRP to reflect the increased rate:
 

Each of the above earnings codes is effective with the payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. Earning code 'LG6' should be used only by agency 428.

SAM:JJM:RDB

DATE:	June 7, 1999
SUBJECT:	Optional Group Life Insurance Rate Changes
EFFECTIVE DATE:	Pay Period Beginning June 27, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	Optional Group Life Insurance Rate Changes

Please be advised that effective with the payroll period beginning June 27, 1999 and ending July 10, 1999, paid July 23, 1999, the Optional Group Life Insurance rates are changing as follows:
 

An administrative fee of $0.20 per month will continue to be added to the premium each month. Maximum coverage available will remain at $200,000.00.

Age is based on the employee's attained age during the payroll period. Optional Group Life Insurance deductions will continue to be taken the second biweekly period of the month.

Board of Regents' Institutions operating under the Regents' Payroll system are responsible for implementing the new rates and for updating age groups and premium deduction amounts in their Payroll Systems effective with deductions made for the pay period beginning June 27, 1999 and ending July 10, 1999.

SAM:JJM:eh

DATE:	June 7, 1999
SUBJECT:	Change in Uniform Premiums of Taxable Group Life Insurance
EFFECTIVE DATE:	Effective Pay Period Beginning June 13, 1999
CONTACT:	Payroll Services	(785) 296-3146
APPROVAL:
SUMMARY:	New Uniform Premium Rates Used To Calculate the Cost of Group-Term Life Insurance Coverage In Excess of $50,000

As provided under Internal Revenue Code Section 79 the cost of group term life insurance coverage in excess of $50,000 provided to an employee by an employer is required to be included in employee federal and state taxable gross income. Employees covered by KPERS death and disability insurance being paid more than $1282.05 per biweekly pay cycle (based on 26 pay dates) are subject to the provisions of Code Section 79. Per recent changes in IRC 79 regulations the IRS Uniform Premium Table I will be modified to include a 25 to 29 age category and reduced uniform premiums for all other age groups. Effective with the pay period beginning June 13, 1999, paid July 9, 1999, the new table values will be as follows:
 

The calculation to determine an employee's age is based on the employee's attained age on the last day of the taxable year.

Board of Regents' Institutions operating under the Regents' Payroll system are responsible for implementing this change in their Payroll Systems effective with the pay period beginning June 13, 1999 paid July 9, 1999.

SAM:JJM:eh

DATE:	June 18, 1999
SUBJECT:	Fiscal Year 2000 Payroll Contribution Rates
EFFECTIVE DATE:	Pay Period Beginning June 13, 1999
CONTACT:	Payroll Services,	(785) 296-3146
APPROVAL:
SUMMARY:	-Fiscal Year 2000-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans -Summary of Fiscal Year End Payroll Processing

The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2000. The rates for fiscal year 2000 will become effective with the on-cycle payroll period beginning June 13, 1999 and ending June 26, 1999 paid July 9, 1999. The rates for OASDI, Medicare, federal withholding taxes and Kansas withholding taxes remain unchanged for fiscal year 2000. In addition, the following summary will discuss key payroll processing concepts to aid in fiscal year end closing.

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments that are processed for the payroll periods ending on or before June 12, 1999 will use fiscal year 1999 benefits contribution rates or prior fiscal years benefits contribution rates depending on the fiscal year of the payroll period being adjusted. Supplementals and adjustments using a payroll period end date greater than June 12, 1999 will use fiscal year 2000 rates. Benefit contributions include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave reserve assessment, flexible spending accounts administrative fee, and group health insurance (GHI).

Tax Rates

Taxes for supplementals and adjustments will be calculated using the tax rates effective for the paycheck issue date for the off-cycle payroll being processed. Taxes include: OASDI (Social Security), Medicare, federal withholding tax, state withholding tax, local withholding tax, and unemployment compensation insurance.

Fiscal Year Expenditure Impact

Supplementals and adjustments with the exception of reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the payroll period being adjusted.
For example, Run A (processed June 21, paid June 25) and Run B (processed June 23, paid June 28) for the payroll period ending June 12, 1999 will be charged to fiscal year 1999 expenditures. Run C (processed June 28, paid July 1) will be charged to fiscal year 2000 expenditures.

Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 23, 1999 (paid June 28) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 1999 expenditures.

Once the Run C off-cycle for the period ending June 26, 1999 (processed July 12, paid July 15) has been processed, agencies should not request or process paycheck reversals until STARS FY 1999 closing has been successfully completed. STARS is scheduled to resume processing July 26, 1999.

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

Budget End Date and Fiscal Year Changes

With the implementation of Peoplesoft 7.0, the Budget End Date and Fiscal Year on the Department Budget tables will be updated centrally at the beginning of the fiscal year. This process is scheduled to run on Monday morning June 21 and should be completed by 8:30 a.m. At that time a new row will be added to the Department Budget tables with an effective date of 6/13/99 (beginning date of the first on-cycle payroll charged to FY2000). The Budget End Date will be 6/12/00. On June 21 please refrain from making updates to these panels until after the update has been completed and you can view the 6/13/99 effective dated row.
When adding new rows for FY2000, agencies should use 6/12/00 as the Budget End Date for FY2000.

GHI Adjustments

As of July 1, 1999, NO payroll processing for GHI adjustments should be made for contract year 1997. Contact Judy Allman in the Division of Personnel Services at (785) 368-6338 about any event maintenance changes that may affect claims processing for contract year 1997.

Julian Date Reset

The julian date used for the SHaRP off-cycle document numbers will reset to 001 on July 1, 1999. The julian date used for the off-cycle's document number is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's check issue date. For example, the off-cycle Run C (processed June 28, paid July 1) will have the 363 julian date in the document number, but expenditures will be charged to fiscal year 2000. The June 28 off-cycle is the only cycle where the document number and expenditure do not represent the same fiscal year.

Regents' Institutions Responsibilities

Regents institutions are responsible for ensuring that the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring that the STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions are also responsible for ensuring that all appropriate payroll clearing fund indexes are established in STARS for fiscal year 2000.

Reminders

To help reduce the number of adjustments to process, SHaRP agencies are reminded of the following:

1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payroll are created on the Tuesday night following the end of the payroll period. Any changes to the employee's job data information (i.e., pay grade, rate of pay, FLSA status, etc.) that are entered after the creation of the paysheets will not be reflected in the employee's oncycle paycheck for the period and will require a paycheck adjustment.
2. Agencies should review the accuracy of the gross-to-net payroll information and employers contributions after each preliminary pay calculation. The KPAY002 report can be used to review the gross-to-net data. On-line agencies can review employer contributions by accessing the employee's paycheck deduction information for the period. Employer contributions have a deduction class of 'N'.

SAM:JJM: rdb

Attachment: Schedule of Contribution Rates for FY2000  (pdf)

DATE:	June 23, 1999
SUBJECT:	KPAY710 - Department Budget Earnings Report
EFFECTIVE DATE:	June 28, 1999
CONTACT:	Steve Banning	(785) 296-7059
APPROVAL:
SUMMARY:	Department Budget Earnings Report will be available to agencies beginning June 28, 1999

Beginning June 28, 1999, each payroll period on-line agencies can expect to see a KPAY710 Department Budget Earnings Report in their agency mailboxes on the MVS and paper user agencies will be sent a hard copy of the report. The KPAY710 report lists, by department, the funding information contained in the current effective-dated row in the department budget earnings table for your agency. The data elements contained on the report include: department, budget level indicator (i.e., position, position pool), effective date, description, account code, effective status, account (funding agency), fund, org code (index), program (PCA), earnings code (if applicable), sequence #, percent or amount, and agency use.

The KPAY710 will be added to the job schedule and should be available in the agency mailboxes on the workday following the on-cycle confirm date (i.e., usually the Monday of pay date week).

SAM:JJM:eh