FY 2001

DATE:	July 5, 2000
SUBJECT:	Changes to SHARP Savings Bond Process
EFFECTIVE DATE:	July 1, 2000
CONTACT:	Roger Basinger	(785) 296-5387	roger.basinger@da.state.ks.us
APPROVAL:
SUMMARY:	Changes to SHARP Savings Bond Process

An employees Bond Specification Record is comprised of a bond denomination field, a bond owner field, other registrant type field (co-owner/beneficiary), and co-owner/beneficiary ID field. When a change is made to any of these fields, a new bond priority is created. Currently, if a balance remains with the old bond priority, the balance has to be identified and moved through a manual process to the new bond priority. To automate this process, SHARP agency personnel making changes to an employees Bond Specification Record after June 30, 2000 will encounter a new 'pop-up message if the employee has a current balance not equal to zero. This message will state that a balance exists for the employees old bond data combination and will automatically be applied to the new bond data combination being entered. Agency personnel should click OK to complete the record save.

Transactions will be written to the Savings Bond Activity Log showing the transfer of balances from the old bond combination to the new bond combination. If the employee does not want the balance transferred forward to the new bond combination to be used towards the purchase of a bond, agency personnel can request a refund through the regular refund process.

Because of these changes to this process, changes to the bond specification records should not be future-dated further than two weeks.

For Regent Institutions, this process will be triggered automatically when changes are made to the Bond Specification Records through the Regents Benefits Interface.

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DATE:	July 11, 2000
SUBJECT:	Addition of New Earnings Codes
EFFECTIVE DATE:	Payroll Period beginning July 23, 2000
CONTACT:	Roger Basinger	(785) 296-5387	roger.basinger@da.state.ks.us
APPROVAL:
SUMMARY:	Addition of New Earnings Codes for FY 2001

Earnings Codes 'BDM' and 'LGP' have been added to SHARP and will be effective for the payroll period beginning July 23, 2000 and ending August 5, 2000 paid August 18, 2000. The descriptions of the new codes are as follows: 
 

Please note that earnings code 'LGP' may only be used by agencies 422 and 428.

With the addition of earnings codes 'BDM' and 'LGP', earnings codes 'BD1-BD9', 'BDS', 'CSB', 'LG1-LG7', and 'LGD' are not to be used after July 23, 2000 except for processing adjustments for daily pay for payroll periods prior to the period beginning July 23, 2000.

Earnings codes 'BDM' and 'LGP' are daily pay codes, so agencies should continue to report 1' in Time and Leave for each day worked by a board member or legislator. Please note that with the addition of these earnings codes, that board member's and legislator's daily rate of pay will be read from the their job record rather than the earnings table. Agencies will be responsible for updating the hourly rate field when regulations or statutes change. This change will provide consistency statewide in board members or legislators daily pay, will eliminate the creation of new earnings codes when daily rates of pay change, and will help ensure that compensation rates on the job records are monitored and kept current.

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DATE:	July 11, 2000
SUBJECT:	Addition of New Deduction Code
EFFECTIVE DATE:	Payroll Period beginning July 23, 2000
CONTACT:	Roger Basinger	(785) 296-5387	roger.basinger@da.state.ks.us
APPROVAL:
SUMMARY:	Addition of New Deduction Code for the Kansas Learning Quest Education Savings Program

The Kansas Learning Quest Education Savings Program became available July 1, 2000 and is administered by the Kansas State Treasurer's Office. American Century Investment Company was selected as the program manager and is responsible for managing the investments.

House Bill 2655 authorized a payroll deduction for the Learning Quest program to become effective in Fiscal Year 2001. The Learning Quest bi-weekly payroll deduction will be effective for the payroll period beginning July 23, 2000 and ending August 5, 2000 paid August 18, 2000. The Learning Quest deduction will be taken on an after tax basis and will have the deduction code of 'LEARNQ'. The new deduction will be displayed on paycheck stubs/advices and the Regent's warrant registers as 'LEARN QUEST'.

Payroll deductions for the Learning Quest program will be remitted to American Century on payday. American Century should also post the payroll deductions to the individual employee accounts on payday.

State of Kansas employees interested in participating in the Learning Quest program through payroll deduction should complete the following steps:

Call 1-800-579-2203 or visit www.learningquestsavings.com to request an enrollment packet.

• Advise the representative they are a State of Kansas employee interested in participating in the payroll deduction program.
• An enrollment packet will then be sent to the employee's home with the payroll deduction forms. The payroll deduction forms need to be completed and returned to American Century.
• After enrollment is approved by American Century, a confirmation letter will be sent to the employee.
• If the employee elects a payroll deduction, the employee will give the confirmation letter to the agency's personnel/payroll officer for entry into the payroll system. Agency personnel are reminded that no payroll deduction should be set up for a Learning Quest Account without the confirmation letter from American Century to the employee.

SHARP on-line agencies will enter enrollment data for Learning Quest through the General Deduction Data panel using the following path: Go, Compensate Employees, Maintain Payroll Data U.S., Use, General Deduction Data, Update/Display All. SHARP paper agencies should complete an 'Employee Data Sheet' adding the deduction for the employee and submit the 'Employee Data Sheet' to the Division of Personnel Services. The Division of Personnel Services is currently revising the 'Employee Data Sheet' to enable entry of the Learning Quest deduction. SHARP paper agencies should enter the 'LEARNQ' deduction code and the appropriate deduction amount on the 'Employee Data Sheet' in the section entitled 'Other General Deductions'. Note: the deduction calculation routine for the 'LEARNQ' deduction should be equal to 'flat amount'.

The Learning Quest bi-weekly deduction will become effective the next payroll period following the date the confirmation letter is signed, and will remain in effect until written authorization is received to cancel or change the deduction, or until termination of employment.

Index code 9762 has been added to the STARS system for each of the Regent's payroll funds to record the receipt of the deduction by the individual Regent's institutions.

The Division of Accounts and Reports, Payroll Systems Team will add the Learning Quest deduction to the SHARP payroll system. Regent's institutions are responsible for ensuring that the Learning Quest deduction is available on their individual systems for paychecks issued on or after August 18, 2000.

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DATE:	August 22, 2000
SUBJECT:	Change in Organization Dues Deduction Amount for AFSCME Council 72
EFFECTIVE DATE:	August 19, 2000
CONTACT:	Janice Wolfley	(785) 296-3699	(janice.wolfley@da.state.ks.us)
APPROVAL:
SUMMARY:	Organization Dues Change for AFSCME Council 72, Locals 1417, 1419, 1438, 1439 and 1689

Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Locals 1417 (ORG417), 1419 (ORG419), 1438 (ORG438), 1439 (ORG439) and 1689 (ORG689) will be increased to $10.74. This change is effective for the payroll period beginning August 6, 2000 and ending August 19, 2000, paid September 1, 2000. The deduction table for AFSCME Councils after the change will be as follows:

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued on or after September 1, 2000.

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DATE:	August 30, 2000
SUBJECT:	Change in Organization Dues Deduction for Pittsburg State University-Kansas National Education Association #30
EFFECTIVE DATE:	Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000
CONTACT:	Roger Basinger	(785)296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Organization Dues Changes for ORG030

The organization dues for members of the Pittsburg State University-Kansas National Education Association, deduction code 'ORG030' will change from $20.85 to $21.40 per bi-weekly payroll period. The new rate will become effective for the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHaRP system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after September 29, 2000.

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DATE:	August 30, 2000
SUBJECT:	Increased Parking Fees for the Wichita State Office Building
EFFECTIVE DATE:	Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Increased Parking Fees for the Wichita State Office Building - Payroll Deduction Codes PKW01C and PKW02A

Due to the increase in parking fees for the Wichita State Office Building, payroll deduction codes PKW01C (garage parking) and PKW02A (surface parking) are being increased to $9.70 and $5.08, respectfully, per bi-weekly payroll period. This increase will become effective for the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems and is effective for paychecks issued on or after September 29, 2000.

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DATE:	August 31, 2000
SUBJECT:	Addition of New Holiday Credit Earning Codes HOB, HOC, HON and HOO
EFFECTIVE DATE:	Payroll Period beginning September 3, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of New Holiday Credit Earnings Codes

Kansas Administrative Regulation 1-5-24 was amended to allow an official state holiday to be counted as time worked for employees in non-exempt positions when all three of the following conditions are met.

1. The employee is asked to report to work in order to respond to a building, highway or public safety emergency, as determined by the appointing authority.
2. This work is performed outside the employee's normal work schedule for the workweek or work period that includes the official state holiday.
3. The appointing authority authorizes inclusion of that official state holiday in calculating the time worked by the employee. 

The appointing authority shall also notify the Director of Personnel Services, in writing, of both the nature of the emergency, and the name and position number of each employee for whom the state holiday will be counted as time worked.

To facilitate the change to K.A.R. 1-5-24, the following four holiday credit earnings codes have been added to SHARP:

All these codes count towards FLSA hours worked and become effective with the payroll period beginning September 3, 2000 and ending September 16, 2000, paid September 29, 2000. For specific information on the correct usage of the new codes, please consult the SHARP Customer Service website ( SHARP Website), or the SHARP Message Panel (Message 406, dated August 30, 2000), or either Kraig Knowlton (785) 296-1082 or Brent Smith (785) 296-1432 with the Division of Personnel Services.

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new holiday credit earnings codes to the SHARP payroll system. Regent's institutions are responsible for ensuring the holiday credit earnings codes are available on their individual systems for paychecks issued on or after September 29, 2000.

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DATE:	September 6, 2000
SUBJECT:	Addition of New Earnings Codes VLT, VLK, SLK, CTK, and HTK
EFFECTIVE DATE:	Payroll Period Beginning September 3, 2000 and Ending September 16, 2000, Paid September 29, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of New Earnings Codes

On July 1, 1993, legislation changed the definition of 'final average salary' for KPERS pension purposes. For employees hired on or after July 1, 1993, 'final average salary' is based on 'salary' as defined by K.S.A. 74-4902 (34) rather than 'compensation'. KPERS has advised Payroll Services that KPERS retirement contributions should not be withheld from lump-sum termination payments for vacation leave, sick leave, compensatory time, and holiday compensatory time for employees hired on or after July 1, 1993, since these payments cannot be counted towards 'final average salary' for these employees.

The SHARP payroll system currently withholds KPERS contributions on all termination payments. If the employee was hired on or after July 1, 1993, KPERS notifies the employing agency that a refund should be processed. The agency then submits a DA-180 to Payroll Services and a manual payroll adjustment to refund the KPERS is processed.

Effective September 3, 2000, the following five new earnings codes will be established in SHARP to refund KPERS contributions from termination payments for employees hired after July 1, 1993:

Agencies are asked to note that SHARP will continue to use the existing earnings codes (VLN, VLP and SLP) when automatically generating the leave payout earnings codes on the employees' time and leave records. The existing earnings codes will continue to be subject to KPERS. Agencies should not change the employees' time and leave records to reflect the new earnings codes. Instead, the agency should wait for KPERS to send the notification that the employee was hired after July 1, 1993. Then, using the new earnings codes, agencies should process a paycheck adjustment to refund the erroneous KPERS contributions. Unless a paycheck has previously been adjusted, agencies will no longer have to submit a DA-180 to Payroll Services to have the refund processed. Please see Attachment A for examples on how the new codes are to be used. 

The Division of Accounts and Reports, Payroll Systems Team will add these earnings codes to the SHARP Payroll System. Regent's institutions are responsible for ensuring these earnings codes are available on their individual systems.

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Attachment A

DATE:	September 6, 2000
SUBJECT:	Deletions from the Approved List of Providers for Voluntary Tax Sheltered Annuities
EFFECTIVE DATE:	Payroll Period Beginning August 20, 2000 and Ending September 2, 2000, Paid September 15, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Request From the Kansas Board of Regents to Delete Six Companies from the Approved List of Providers for Voluntary Tax Sheltered Annuities

The Kansas Board of Regents has requested removal of the following six companies from the list of 'approved' providers for Voluntary Tax Sheltered Annuities:

These VTSA companies had no current subscribers and were deleted with an effective date of August 20, 2000 in the SHARP system.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.

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DATE:	September 11, 2000
SUBJECT:	Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Name Change

Massachusetts General Life Insurance Company (VTSA #470) has changed its name to Conseco Life Insurance Company. Remittances should be made payable to Conseco Life Insurance Company and should be sent to the following address:

11815 North Pennsylvania
Box 1963
Carmel, IN 46032-4963

This company name change has been completed in the SHARP payroll system. The vendor table in STARS has also been updated to reflect the change in name and mailing address.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent's institutions are responsible for ensuring this change is reflected in their individual systems.

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DATE:	September 27, 2000
SUBJECT:	Parking Compensation Reduction Program
EFFECTIVE DATE:	Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001
CONTACT:	Elaine Harris	(785) 296-7458	(elaine.harris@da.state.ks.us)
APPROVAL:
SUMMARY:	Pre-Tax Parking Payroll Deduction

The State of Kansas Parking Compensation Reduction Program established pursuant to Section 132 of the Internal Revenue Code and K.S.A. 75-5535 was approved by the Secretary of Administration on July 28, 2000. The purpose of the Program is to provide a parking compensation reduction program that results in payment of parking fees by state employees for state owned or leased parking facilities (including the Signature Building) on a pre-tax basis. The Program authorizes employees to participate in a pre-tax parking payroll deduction where the amount of the parking deduction is not included in gross income. As a result, the employee does not pay employment taxes for federal withholding, state withholding, OASDI, and Medicare on the compensation reduction amount or parking fee.

In addition to parking administered by the Division of Facilities Management (DFM) or leased by the Department of Administration, other state owned or leased parking facilities may be included in the Program. Regents Institutions and other state agencies interested in having their owned or leased parking facilities in the Program should address inquiries to DFM Parking Administration and submit documentation showing the ownership or lease of the parking facilities desired for inclusion in the Program. The Program requires payroll deductions pursuant to K.S.A. 75-5535. Parking deductions pursuant to state agency payroll deduction plans authorized by K.S.A. 75-5536 do not qualify for the Program.

This Program will be administered in accordance with Section 132 of the Internal Revenue Code, and any regulations promulgated thereunder, and K.S.A. 75-5535, by the Division of Facilities Management (DFM) with the advice and approval of the Director of Accounts and Reports. Savings resulting from the reduction in employer paid FICA contributions will be paid to the Department of Administration for administration of the Program. Except for parking at Board of Regents institutions, the employer contribution deduction will be distributed 4.65% for Division of Facilities Management and 3.0% for the Division of Accounts and Reports. For parking administered by Board of Regents institutions, the employer contribution will be distributed 1.0% for the Regents institution, 2.5% for the Division of Accounts and Reports and 4.15% for the Division of Facilities Management.

The Program will utilize the "negative election permitted" approach. This means that employees who have parking payroll deductions in place under K.S.A. 75-5535 will automatically be enrolled in the pretax program unless the employee elects not to participate. DFM Parking Administration is responsible for notifying such employees of the opportunity to not participate in the Program. Elections not to participate shall be effective at the beginning of the next payroll period following the date the election not to participate is received by DFM Parking Administration or received by the affected Regents institution parking administration office in the case of Regents parking.

The salary reduction is a fixed dollar amount as stated on the signed parking contract for the parking facility. In the event the rates change, advanced notice will be given to affected employees who will have the option to elect not to participate. The Program will be provided on a bi-weekly basis that coincides with payroll periods and will be automatically renewed for subsequent periods until a timely election not to participate is received. Compensation reduction amounts are not refundable unless a timely election not to participate is received.

SHARP Agencies

• The following new general deduction codes will be established in SHARP to implement parking on a pre-tax basis for SHARP employees:

The following new general deduction codes will be established in SHARP to implement the employer contribution for pre-tax parking for SHARP employees:

• Conversion to New Codes - General deduction records for all SHARP employees currently enrolled in parking will be updated with the appropriate deduction end date and two new effective-dated rows with the new parking codes (employee and employer). The conversion to the new codes will occur in SHARP on December 18, 2000. All active SHARP employees with an existing parking deduction will be enrolled in the pre-tax parking program effective December 10, 2000.
• Future Maintenance - After the initial enrollments have been made in SHARP, the Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.
• The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.
• The attached spreadsheet outlines the new funding that will be used for the Program.

Regents Institutions

• The following new general deduction codes will be established in SHARP to implement parking deductions for Regents on a pre-tax basis:

• Regents should continue to use the 'AGYPAY' deduction code to collect parking fees from their employees on an after-tax basis in the following situations:
   
  • for those parking facilities which are not state owned or leased, or
  • for employees who elect NOT to participate in the pre-tax program for those lots that are state owned or leased.

• Only one pre-tax deduction code will be established for each participating Regents institution. Regents institutions having multiple parking lots with differing rates can establish additional pre-tax parking codes as needed in their payroll system. However, the codes should be 'rolled up' and reported on the Regents paydetail file using the appropriate pre-tax parking general deduction code assigned.
• A new general deduction code PPKADR will be established in SHARP to implement the employer contribution for pre-tax parking for Regents' employees.
• The attached spreadsheet outlines the new funding that will be used for the Program.
• Regents institutions are responsible for ensuring these changes are reflected in their individual systems.

For questions about business process design or to submit a test file please contact Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.

Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.

Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.

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Attachment  (.pdf)

DATE:	October 16, 2000
SUBJECT:	Key Payroll Processing Dates in November 2000
EFFECTIVE DATE:	November, 2000
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Payroll processing schedule changes due to the November 2000 holidays.

Friday, November 10, 2000 (Veterans Day Observed), Thursday, November 23, 2000 and Friday, November 24, 2000 (Thanksgiving Holiday) are designated holidays for state service in 2000. Due to the Veterans Day holiday, the pay date for the payroll period ending October 28, 2000 will be Thursday, November 9, 2000. Direct deposit advices for this pay date will be mailed on Tuesday, November 7, 2000; paychecks will be mailed Wednesday, November 8, 2000. Because of the Thanksgiving holiday, the pay date for the payroll period ending November 11, 2000 will be Wednesday, November 22, 2000. Direct deposit advices for this pay date will be mailed Monday, November 20, 2000; paychecks will be mailed Tuesday, November 21, 2000.

Due to the holidays in November, the following variations have been made to the 'normal' payroll processing schedule. Agencies are asked to note the payroll processing date changes, which are occurring on a different day of the week than normally scheduled.

Thursday, November 2, 2000

Regents' on-cycle payroll files for the period ending October 28, 2000 are due to the Department of Administration by 6:00 AM on November 2, 2000 to ensure timely issuance of payroll on November 9, 2000 (These files would normally be due Friday).

Thursday, November 9, 2000

Time and leave interface agencies must have time and leave files for the period ending November 11, 2000 submitted to the Department of Administration for processing by 5:00 PM on November 9, 2000 (These files would normally be due Monday). Paper agencies time and leave documents are due to Payroll Services by 5:00 PM on November 9, 2000.

Regents' Run C off-cycle payroll files for the period ending October 28, 2000 must be received by the Department of Administration by 5:00 PM on November 9, 2000 in order to be processed on Monday, November 13, 2000.

Monday, November 13, 2000

Pay sheets for the on-cycle payroll for the period ending November 11, 2000 will be created on November 13, 2000 (Pay sheets would normally be 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 13, 2000 in order to be reflected on the paysheets for this period. The first on-cycle preliminary pay calculation for the period ending November 11, 2000 will also occur November 13, 2000; therefore, all time and leave data should be entered into SHARP and designated 'OK to process' by 5:00 PM.

Please note that there will only be two SHARP on-cycle preliminary payroll calculations for the period ending November 11, 2000.

The Run C off-cycle for the period ending October 28, 2000 will be processed November 13, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.

Tuesday, November 14, 2000

The second on-cycle preliminary pay calculation for the period ending November 11, 2000 will occur November 14, 2000.

The general ledger extract for the payroll period ending October 28, 2000 will also be created on this date.

Wednesday, November 15, 2000

Final pay confirmation for the on-cycle payroll for the period ending November 11, 2000 will occur November 15, 2000 (Final pay confirmation would normally occur Friday). All employees' time and leave records must be 'OK to Process' by 5:00 PM on November 15, 2000 in order for a paycheck record to be created. All deduction and tax data changes must be entered by 5:00 PM on November 15, 2000 in order to be reflected in the final paycheck created for the employee.

Regents' on-cycle payroll files for the period ending November 11, 2000 are due to the Department of Administration by 6:00 AM on November 15, 2000 to ensure timely issuance of the payroll on November 22, 2000.

Wednesday, November 15, 2000 Continued

Please note that 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 November 11, 2000 is Monday, November 27, 2000, providing the necessary supplemental or adjustment run control has been entered by 5:00 PM on Monday, November 20, 2000.

Thursday, November 16, 2000

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 22, 2000.

Friday, November 17, 2000

The final SHARP on-cycle payroll reports, with the exception of the KPAYWAGE, for the period ending November 11, 2000 will be available in the agency directories on the MVS (for on-line agencies) and will be distributed (for paper-user agencies) on November 17, 2000.

Regents' Run A off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 17, 2000 in order to be processed on Monday, November 20, 2000.

Monday, November 20, 2000

KPAYWAGE reports for the on-cycle for the period ending November 11, 2000 will be available in the agency directories (for on-line agencies) and will be distributed (for paper-user agencies) on November 20, 2000.

The Run A off-cycle for the period ending November 11, 2000 will be processed November 20, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and/or adjustments run controls for the Run A off-cycle. Paychecks for the Run A off-cycle will be dated Monday, November 27, 2000 rather than the SHARP on-cycle pay date of Wednesday, November 22, 2000.

Encumbrance transactions for the SHARP on-cycle payroll for the period ending November 11, 2000 will be posted to STARS during Monday night's STARS batch processing cycle.

Tuesday, November 21, 2000

Regents' Run B off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 21, 2000 in order to be processed on Wednesday, November 22, 2000.

Wednesday, November 22, 2000

Payday for the payroll period ending November 11, 2000.

The Run B off-cycle for the period ending November 11, 2000 will be processed November 22, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run B off-cycle.

Paychecks for the Run B off-cycle will be dated November 29, 2000.

Regents' Run C off-cycle payroll files for the period ending November 11, 2000 must be received by the Department of Administration by 5:00 PM on November 22, 2000 in order to be processed on Monday, November 27, 2000.

Monday, November 27, 2000

The Run C off-cycle for the period ending November 11, 2000 will be processed November 27, 2000. SHARP agencies have until 5:00 PM on this date to enter supplemental and /or adjustments run controls for the Run C off-cycle.

Paychecks for the Run C off-cycle will be dated November 30, 2000.

Attached is a calendar for the month of November 2000, which highlights key payroll processing activity for the month. The attached calendar is intended for use as a supplementary reference tool only; it does not contain the level of detail that is included in the narrative portion of this circular.

Please note the changes to the payroll processing dates and adjust your schedules accordingly. If it becomes necessary to change any of the payroll processing dates identified above, notification of the change will be provided to all state agencies via the SHARP on-line message panel and the SHARP web site SHARP Website. On-line users should review the SHARP message panel or web site daily to determine if new messages have been added. Paper-users will be notified of any changes to these dates via telephone.

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Attachment:  November, 2000 Calendar (.pdf format)

DATE:	October 16, 2000
SUBJECT:	SHaRP Bi-Weekly Payroll Schedule for Calendar Year 2001
EFFECTIVE DATE:	Calendar Year 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	SHaRP On-cycle and Off-cycle Payroll Processing Schedules

Attached are the finalized SHaRP bi-weekly on-cycle and off-cycle schedules for calendar year 2001.

The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees. Time and leave interface agencies, please note that time and leave files for the payroll period ending December 23, 2000 are due Friday, December 22, 2000.

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. Payroll payments resulting from the first off-cycle for the payroll period (Run A) will be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs B & C) will normally be dated three working days from the date the off-cycle was processed. SHaRP agencies have till 5:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into ShaRP for processing in that night's off-cycle payroll.

Off-cycle payroll for Regents' institutions are also normally 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. The Division of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night's off-cycle payroll. Regents' off-cycle payroll will be issued with the same check/advice date as the SHaRP off-cycle processed the same night.

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Attachments:
 -SHaRP Bi-Weekly On-Cycle Payroll Schedule -CY2001   (.pdf)
 -SHaRP Bi-Weekly Off-Cycle Payroll Schedule -CY2001   (.pdf)

DATE:	October 20, 2000
SUBJECT:	Board of Regents Institutions
EFFECTIVE DATE:	Payroll Period Beginning December 24, 2000 and Ending January 6, 2001. Paid January 19, 2001
CONTACT:	Elaine Harris	(785) 296-7458	(elaine.harris@da.state.ks.us)
APPROVAL:
SUMMARY:	Changes to STARS Funding and Providers for Group Health Insurance

The following provider changes have been made for the State of Kansas 2001 GHI contract:

1. Provider contracts expire December 23, 2000. Adjustments can still be processed through June 30, 2002 for CY 2000:

• Cigna: plan type 10, deduction codes CIGNAT and CIGNBT
• STARS funding file, fund 7700 index codes 9714 and 9814
• Kaiser: plan type 10, deduction codes KAISAT and KAISBT
• STARS funding file, fund 7700 index codes 9712 and 9812 
• Protective Dental: plan type 11, deduction codes UTDCAT and UTDCBT
• STARS funding file, fund 7700 index codes 9721 and 9821

1. Provider name changes:

• BC/BS Blue Select will become BC/BS Kansas Choice. This is a name change only. 
• All other information will remain as plan type 10, deduction codes BCSEAT and BCSEBT.
• STARS funding file, fund 7700 index codes 9740 and 9840. 
• Principal Health Care will become Coventry Health Care. This is a name change only.
• All other information will remain as plan type 10, deduction codes PCHMAT and PCHMBT. STARS funding file, fund 7700 index codes 9719 and 9819
• Regents institutions are responsible for ensuring these changes are reflected in their individual systems. Note: there are no changes to the DA175-176 files.

The attached "Index Codes for Agency and DOA Clearing Funds" replaces the one included with Informational Circular 00-P-010 dated November 22, 1999. All changes listed above are incorporated in this document.

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Attachment: Index Codes for Agency and DOA Clearing Funds (.pdf) 

DATE:	November 22, 2000
SUBJECT:	Parking Compensation Reduction Program
EFFECTIVE DATE:	Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001
CONTACT:	Elaine Harris	(785) 296-7458	(elaine.harris@da.state.ks.us)
APPROVAL:
SUMMARY:	Pre-Tax Parking Payroll Deduction (Revised to Include Impact on UCI gross)

The State of Kansas Parking Compensation Reduction Program established pursuant to Section 132 of the Internal Revenue Code and K.S.A. 75-5535 was approved by the Secretary of Administration on July 28, 2000. The purpose of the Program is to provide a parking compensation reduction program that results in payment of parking fees by state employees for state owned or leased parking facilities (including the Signature Building) on a pre-tax basis. The Program authorizes employees to participate in a pre-tax parking payroll deduction where the amount of the parking deduction is not included in gross income. As a result, the employee does not pay employment taxes for federal withholding, state withholding, OASDI, and Medicare on the compensation reduction amount or parking fee and the unemployment compensation insurance (UCI) gross will be reduced by the compensation reduction amount or parking fee.

In addition to parking administered by the Division of Facilities Management (DFM) or leased by the Department of Administration, other state owned or leased parking facilities may be included in the Program. Regents Institutions and other state agencies interested in having their owned or leased parking facilities in the Program should address inquiries to DFM Parking Administration and submit documentation showing the ownership or lease of the parking facilities desired for inclusion in the Program. The Program requires payroll deductions pursuant to K.S.A. 75-5535. Parking deductions pursuant to state agency payroll deduction plans authorized by K.S.A. 75-5536 do not qualify for the Program.

This Program will be administered in accordance with Section 132 of the Internal Revenue Code, and any regulations promulgated thereunder, and K.S.A. 75-5535, by the Division of Facilities Management (DFM) with the advice and approval of the Director of Accounts and Reports. Savings resulting from the reduction in employer paid FICA contributions will be paid to the Department of Administration for administration of the Program. Except for parking at Board of Regents institutions, the employer contribution deduction will be distributed 4.65% for Division of Facilities Management and 3.0% for the Division of Accounts and Reports. For parking administered by Board of Regents institutions, the employer contribution will be distributed 1.0% for the Regents institution, 2.5% for the Division of Accounts and Reports and 4.15% for the Division of Facilities Management.

The Program will utilize the "negative election permitted" approach. This means that employees who have parking payroll deductions in place under K.S.A. 75-5535 will automatically be enrolled in the pretax program unless the employee elects not to participate. DFM Parking Administration is responsible for notifying such employees of the opportunity to not participate in the Program. Elections not to participate shall be effective at the beginning of the next payroll period following the date the election not to participate is received by DFM Parking Administration or received by the affected Regents institution parking administration office in the case of Regents parking.

The salary reduction is a fixed dollar amount as stated on the signed parking contract for the parking facility. In the event the rates change, advanced notice will be given to affected employees who will have the option to elect not to participate. The Program will be provided on a bi-weekly basis that coincides with payroll periods and will be automatically renewed for subsequent periods until a timely election not to participate is received. Compensation reduction amounts are not refundable unless a timely election not to participate is received.

SHARP Agencies

• The following new general deduction codes will be established in SHARP to implement parking on a pre-tax basis for SHARP employees:

• The following new general deduction codes will be established in SHARP to implement the employer contribution for pre-tax parking for SHARP employees:

Conversion to New Codes - General deduction records for all SHARP employees currently enrolled in parking will be updated with the appropriate deduction end date and two new effective-dated rows with the new parking codes (employee and employer). The conversion to the new codes will occur in SHARP on December 18, 2000. All active SHARP employees with an existing parking deduction will be enrolled in the pre-tax parking program effective December 10, 2000.

• Future Maintenance - After the initial enrollments have been made in SHARP, the Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.
• The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.
• The attached spreadsheet outlines the new funding that will be used for the Program.

Regents Institutions

• The following new general deduction codes will be established in SHARP to implement parking deductions for Regents on a pre-tax basis:

• Regents should continue to use the 'AGYPAY' deduction code to collect parking fees from their employees on an after-tax basis in the following situations:
   
  • for those parking facilities which are not state owned or leased, or
  • for employees who elect NOT to participate in the pre-tax program for those lots that are state owned or leased.
• Only one pre-tax deduction code will be established for each participating Regents institution. Regents institutions having multiple parking lots with differing rates can establish additional pre-tax parking codes as needed in their payroll system. However, the codes should be 'rolled up' and reported on the Regents paydetail file using the appropriate pre-tax parking general deduction code assigned.
• A new general deduction code PPKADR will be established in SHARP to implement the employer contribution for pre-tax parking for Regents' employees.
• The attached spreadsheet outlines the new funding that will be used for the Program
• Regents institutions are responsible for ensuring these changes are reflected in their individual systems.

For questions about business process design or to submit a test file please contact Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.

Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.

Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.

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Attachment: SHARP Pre-Tax Parking Funding (.pdf format)

DATE:	November 22, 2000
SUBJECT:	SHaRP Bi-Weekly Payroll Schedule for Calendar Year 2001
EFFECTIVE DATE:	Calendar Year 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	SHaRP On-cycle and Off-cycle Payroll Processing Schedules

Due to the New Years Day (1/1/2001) and Martin Luther King Day (1/15/2001) holidays that fall on Monday, the Regents on-cycle processing will be added to the Day 8 schedule and will run on Sunday night, rather than Monday. Because of this change in processing, the following changes to the SHARP bi-weekly on-cycle payroll schedule have been made.

1. For the pay period ending December 23, 2000, paid January 5, 2001, the cutoff date for the Regents on-cycle files is December 28, 2000 at noon.
2. For the pay period ending January 6, 2001, paid January 19, 2001, the cutoff date for the Regents on-cycle files is January 11, 2001 at 6 am.

Please find attached corrected schedules that reflect these changes.

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Attachments:
  -SHaRP Bi-Weekly On-Cycle Payroll Schedule -CY2001  (.pdf)
  -SHaRP Bi-Weekly Off-Cycle Payroll Schedule -CY2001  (.pdf)

DATE:	November 22, 2000
SUBJECT:	Change in Social Security Base Rate
EFFECTIVE DATE:	January 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Social Security Wage Base Increase to $80,400 effective January 1, 2001

The Social Security wage base for OASDI will be $80,400 for calendar year 2001. This is a $4,200 increase from the 2000 wage base of $76,200. The OASDI tax rate remains at 6.2% for both employees and employers. The maximum OASDI employee contribution for 2001 will be $4,984.80. There continues to be no limit on wages subject to the Medicare tax in 2001. Medicare tax rates for employers and employees remain at 1.45%.

For Federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45 % on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $4,984.80 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same.

For Kansas Police and Fireman's program participants, who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994).

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DATE:	November 22, 2000
SUBJECT:	Employee Taxability of State-Owned Vehicles
EFFECTIVE DATE:	January 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	IRS Changes to Cents-Per-Mile Valuation Rule for Calendar Year 2001

The Internal Revenue Service (IRS) has increased the mileage rate to 34.5 cents under the Cents-Per-Mile method of valuing an employee's personal (commuting) use of a state-owned vehicle. The new rate becomes effective January 1, 2001. The Cents-Per-Mile valuation is one of several methodologies that can be used to calculate fringe benefit income. Using this methodology, fringe benefit income is calculated by multiplying the 34.5 cents rate by the number of personal (commuting) miles driven by the employee in the state-owned vehicle. To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicles total mileage is used for the employer's trade or business, or the vehicle is primarily used by employees and the total mileage for the vehicle exceeds 10,000 miles per year. The Cents-Per-Mile method may not be used for 'luxury' vehicles. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2001 and the agency wishes to use the Cents-Per-Mile method, please contact Payroll Services for the 'luxury' vehicle definition. Agencies and employees are also reminded that the only personal use of a state vehicle allowed under state law is to commute between the employee's work station and home, and then in only limited situations.

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

DB:JJM:rdb

DATE:	December 7, 2000
SUBJECT:	New Tables for Federal Withholding Tax for 2001
EFFECTIVE DATE:	January 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	New Federal Withholding Tax Rates Effective for Paychecks Issued On or After January 1, 2001.

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, 2001. In addition, the standard deduction for one withholding allowance changes to $2900.00 per year in calendar year 2001.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after January 1, 2001. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount.

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 2000 must file a new W-4 form for calendar year 2001 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 annually. Employees who claimed a non-resident alien exempt status in calendar year

2000 must file a new 8233 form for calendar year 2001 if they wish to continue their non-resident alien status. As a reminder, Regents Institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.

The Department of Administration will be updating the SHaRP federal and state tax data records on December 18, 2000, for all employees currently claiming exempt from withholding; the tax data record updates will be effective January 1, 2001. On-line agencies must enter a new effective-dated row into SHaRP for employees who wish to claim exempt from withholding. Paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim exempt from withholding in 2001. The new tax data row should be effective January 2, 2001. 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 18, 2000 for employees with a special tax withholding status of 'Non-Resident Alien' to reflect that no 8233 form has been submitted for calendar year 2000. The new tax data row will be dated January 1, 2001. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2001 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 18, 2000. This 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.

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Attachment: SCHEDULE A (FEDERAL WITHHOLDING TAX) (.pdf)

DATE:	December 11, 2000
SUBJECT:	KPAY329 - No GHI Coverage Because No Paycheck Exists Report - SHARP Agencies Only
EFFECTIVE DATE:	Immediately
CONTACT:	Myrene Bears	(785) 296-5368	(myrene.bears@da.state.ks.us)
APPROVAL:
SUMMARY:	Division of Personnel Services, Benefits Administration, is now Responsible for the KPAY329, GHI Coverage Because No Paycheck Exists Report

Effective immediately Division of Personnel Services, Benefits Administration will be responsible for the administration and review of the KPAY329 No GHI Coverage Because No Paycheck Exists report. The report will continue to be distributed to SHARP agency mailboxes on the MVS with a hard copy going to SHARP paper user agencies. Until notified differently continue using Informational Circular 00-P-003, dated August 19, 1999 as a basis for review and processing adjustments from the KPAY329 report.

Questions concerning this Informational Circular should be directed to Myrene Bears, Payroll Services at (785) 296-5368: myrene.bears@da.state.ks.us.

Questions concerning the KPAY329 report should be directed to Phil Williams, DPS, Benefits Administration at (785) 296-2069: phil.williams@da.state.ks.us.

Questions concerning the processing of adjustments or personal reimbursements should be directed to Joyce Dickerson, Payroll Services at (785) 296-3979: joyce.dickerson@da.state.ks.us.

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DATE:	December 11, 2000
SUBJECT:	Voluntary Tax Sheltered Annuity Calculations for Kansas Board of Regents, School for the Deaf, and School for the Blind
EFFECTIVE DATE:	Immediately
CONTACT:	Sunni Zentner	(785) 296-7058	(Sunni.Zentner@da.state.ks.us)
APPROVAL:
SUMMARY:	Formulas for Calculating the Maximum Allowable Voluntary Tax Sheltered Annuity Contributions

The attachments are the formulas for calculating the maximum allowable voluntary tax sheltered annuity contributions for the year 2000. These formulas have been developed in accordance with Internal Revenue Code limitations.

The Division of Accounts and Reports will continue to provide calculation worksheets for each voluntary tax sheltered annuity participant employed at the following agencies: Board of Regents, Kansas State School for the Blind, and School for the Deaf. These agencies will be contacted during the month of December to assist in gathering the data necessary to complete the worksheets.

As a reminder, Board of Regents Institutions are responsible for applying the maximum voluntary tax sheltered annuity formulas to their own employees and processing any necessary refunds prior to the end of the calendar year.

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Attachment: Information Needed to Calculate Voluntary Tax Sheltered Annuity Maximum

DATE:	December 13, 2000
SUBJECT:	2000 Calendar Year-End Processing
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Schedule for Processing Transactions During 2000 Calendar Year-End

As 2000 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2000 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2000 paycheck adjustments processed after the established cut-off dates will update the employee's calendar year 2001 balances; a corrected W-2 (Form W-2C) for 2000 will not be issued for the employee involved.

Final 2000 Paycheck

The final on-cycle paychecks for calendar year 2000 will be issued December 22, 2000. Paychecks will be mailed on December 21, 2000 and advices will be mailed on December 20, 2000. The final off-cycle paychecks for calendar year 2000 will be issued on December 29, 2000 for the off-cycle processed on December 26, 2000.

Paycheck Reversals

Any 2000 paychecks that are undeliverable should be reversed as soon as possible. After proper authorization SHARP agencies have until 5:00 p.m. on December 26, 2000 to enter paycheck reversals; paper user agencies should submit Form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', for any paycheck reversals by 12:00 noon on December 26, 2000. Any reversal requests entered/received after the 5:00 p.m./12:00 noon deadline on December 26, 2000 will update calendar year 2001 balances and will not be reflected in the employee's 2000 W-2.

Paycheck Adjustments and Supplements

SHARP agencies have until 5:00 p.m. on December 26, 2000 to enter paycheck adjustment requests for any 2000 paychecks. Adjustments processed in the December 26, 2000 off-cycle payroll will be reflected on the employee's 2000 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 2000 paycheck has been previously adjusted and requires additional adjustment, form DA-180, 'SHARP Paycheck Reversal/Adjustment/Supplemental', should be submitted to the Division of Accounts and Reports, Payroll Section by 5:00 p.m. on Monday, December 18, 2000. The December 18, 2000 deadline for submitting Form DA-180 also applies to all adjustment requests for paper user agencies.

Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 18, 2000 for inclusion in the December 26, 2000 off-cycle. However, if a large volume of DA-180 forms is received on the December 18, 2000 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2000 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 27, 2000 which are adjusting paychecks issued prior to January 1, 2001 will not result in a W-2C; the adjustment will update the employee's 2001 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 27, 2000 will update the employee's 2001 payroll balances.

Regents' Institutions: On-cycle Files

Regent on-cycle files for the pay period ending December 9, 2000, paid December 22, 2000 are due to the Department of Administration by 6:00 am December 15, 2000.

Regents' Institutions: Off-cycle Files  

2000 Paycheck Reversals 

Regent Institutions must submit all transmittals for 2000 paycheck reversals by 5:00 p.m. on Friday, December 22, 2000 in order to update the employee's 2000 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 2001 payroll balances regardless of the paycheck issue date of the paycheck being reversed. Reversals for paychecks issued prior to January 1, 2001 submitted after 5:00 pm on December 22, 2000 should default the pay adjust check date to January 1, 2001.

2000 Adjustments and Supplementals

In order to update employee balances for 2000, any paycheck adjustments and supplementals must be submitted no later than 5:00 p.m. on Friday, December 22, 2000. The off-cycle for the pay period ending December 9, 2000 generated on the night of Tuesday, December 26, 2000 will have an issue date of December 29, 2000; all activity for this off-cycle will be reflected in the employees' 2000 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 2000 date.

2001 Adjustments and Supplementals

With the exception of arrearages or refunds for OASDI and or Medicare for tax years prior to 2001, any adjustments or supplementals submitted after 5:00 p.m. on Friday, December 22, 2000, will be considered to be 2001 business regardless of the pay period end date to which the pay is related. Since this activity will be considered calendar year 2001 business, the employee's 2001 balances will be updated. These files should contain a 'C' indicating current year business and the pay adjust check date should be a 2001 date (regardless of the original paycheck issue date of the paycheck being adjusted -- if the original check date was prior to January 1, 2001, agencies should default the pay adjust check date to January 1, 2001).

With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2001, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2001 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 2001 payroll balances.

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

Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 26, 2000 deadline will not be processed until the January 29, 2001 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 22, 2001. The deadline for submitting payroll interface files for the January 29, 2001 off-cycle is 5:00 p.m. on January 26, 2001. 

General Reminders

The deduction END date on the general deduction panel for 2000 United Way contributions should be dated between December 10, 2000 and December 23, 2000 in order for the last 2000 deduction to be taken on the paycheck issued December 22, 2000. Agencies should verify the deduction end date for all employees enrolled in United Way to ensure deductions are taken correctly. For calendar year 2001, agencies can enter a new row effective-dated between December 10, 2000 and December 23, 2000 in order for the first deduction for 2001 to be taken on the January 5, 2001 paycheck. If the 2001 deduction is to be taken over 26 pay periods, a deduction end date of December 9, 2001 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 26, 2000 (December 18, 2000 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 2000 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 9, 2000 by personal reimbursement as soon as possible. All 'ADV' earnings paid to employees on the on-cycle paychecks dated December 22, 2000 (i.e., on-cycle for the payroll period ending December 9, 2000) should be collected by personal reimbursement to avoid the advance from being included in the employee's 2000 Form W-2.

The 2000 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 5:00 pm on December 29, 2000 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, 2001 and January 15, 2001.

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 December 29, 2000.

W-2 forms will be mailed on or before January 31, 2001. 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 2000 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 No. 01-P-016, dated November 22, 2000. The attached calendar is intended for use as a supplementary reference tool to this informational circular.

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 and the SHARP web site (http://www.da.ks.gov/sharp/). 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:  Payroll Processing Calendar for December 

DB:JJM:rdb

DATE:	December 13, 2000
SUBJECT:	New Tables for Earned Income Credit for 2001
EFFECTIVE DATE:	January 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	New Earned Income Credit Rates Effective for Paychecks Issued On or After January 1, 2001

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, 2001. The attached tables have been prepared for use in computing all EIC payments for wages paid on or after January 1, 2001. When calculating EIC by annualizing, 26 pay periods should be used to arrive at an annualized amount.

The Internal Revenue Service has released the 2001 Form W-5, Earned Income Credit Advance Payment Certificate. A copy of the 2001 Form W-5 is attached; the 2000 Form W-5 expires on December 31, 2000. The new form must be filed with the employer before advance 2001 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 2001 earned and adjusted gross income will each be less than $28,281.00 (include spouses' income if filing jointly), in addition to meeting other criteria. In addition, employees cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income) for 2000. A nonresident alien may not claim the EIC for 2001 unless married to a U.S. citizen and elects to be taxed as a resident alien for all of 2001.

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 18, 2000, 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, 2000. On-line agencies must enter a new effective-dated row into SHARP for employees who wish to claim the EIC in calendar year 2001; paper user agencies should submit an employee data sheet to the Division of Personnel Services for employees who wish to claim the EIC in 2001. The new tax data row should be added effective January 2, 2001. 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 18, 2000. 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. Regent's institutions are responsible for implementing the new EIC rates in their respective payroll systems.

DB:JJM:rdb

Attachments:

W-5 - Earned Income Credit Advance Payment Certificate (.pdf)
Advance Earned Income Credit Formulas (.pdf)

DATE:	December 14, 2000
SUBJECT:	Missouri State Withholding
EFFECTIVE DATE:	January 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Change in Missouri State Withholding Tax Formula for 2001

The Missouri Department of Revenue has made changes to the Missouri Withholding Tax Formula effective January 1, 2001. The following table is a list of current filing statuses and the standard deduction for 2001.

For the single, married and spouse works, and married and spouse does not work, the employee is allowed a $1,200.00 deduction for each allowance claimed on the MO W-4. For the head of household status, an employee is allowed $3,500.00 for the first allowance claimed on the MO W-4, no deduction for allowances two through four, and then $1,200.00 per allowance for allowances five and greater. Please note that allowances two through four are not allowed using the withholding tax formula; however, allowances two through four are still used for employers using the withholding tax tables. Please find attached copies of the 2001 Missouri Withholding Tax Formula and MO W-4 for your review.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect these changes for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that these changes are reflected on all paychecks issued through their systems.

DB:JJM:rd

DATE:	December 14, 2000
SUBJECT:	Parking Compensation Reduction Program (SHARP Agencies Only)
EFFECTIVE DATE:	Payroll Period Beginning December 10, 2000 and Ending December 23, 2000, Paid January 5, 2001
CONTACT:	Myrene Bears	(785) 296-5368	(myrene.bears@da.state.ks.us)
APPROVAL:
SUMMARY:	Parking Compensation Payroll Deduction (Includes New Employer Codes, Lots Administered by 'Other Agencies' and After Tax Deductions)

As outlined in Informational Circular 01-P-015, the State of Kansas Parking Compensation Reduction Program has been expanded to include parking lots administered by other SHARP agencies. The additional employee and employer deduction codes for after tax and pre-tax options are shown below.

SHARP Agencies - Lots Administered by 'Other Agencies'

The general deduction codes shown below will be added to SHARP to implement after tax and pre-tax parking for the employees enrolled in lots that have been officially approved and will be administered by the following agencies:
 

Payroll Services will be requesting fund information from each of the above agencies so the monies can be distributed biweekly on the date of each on cycle. The agency is then responsible for any further distributions.

SHARP Agencies - Administrative Fees for all SHARP Agencies

The following employer deduction codes will be used in SHARP for DFM and 'other agency' administered lots with the intent to assign all employees with a parking deduction of the same amount (regardless of lot), to one administrative fee for pre-tax parking deductions. Note: these deduction codes replace the ones originally sent in Informational Circular 01-P-015.
 

• Future Maintenance - The Division of Facilities Management will be responsible for adding and updating the employee and employer deduction codes for pre-tax parking for new enrollments, changes, and deletions.

• The Division of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system.

Questions about business process design may be directed to Nancy Ruoff, Payroll Services at (785) 296-5369 or nancy.ruoff@da.state.ks.us.

Questions about remittance or accounting information may be directed to Myrene Bears, Payroll Services at (785) 296-5368 or myrene.bears@da.state.ks.us.

Other questions about the Parking Compensation Reduction Program may be directed to Ken Bartel, Facilities Management at (785) 296-1318 or ken.bartel@da.state.ks.us.

DB:JJM:mhb

DATE:	December 21, 2000
SUBJECT:	Deferred Compensation Limit
EFFECTIVE DATE:	January 1, 2001
CONTACT:	Janice Wolfley	(785) 296-3699	(janice.wolfley@da.state.ks.us)
APPROVAL:
SUMMARY:	Deferred Compensation Limit increased to $8,500

Per the Internal Revenue Service Informational Release 2000-82, the annual deferred compensation limit under Section 457(b)(2) has increased from $8,000.00 to $8,500.00 effective January 1, 2001.

Aetna will notify all Deferred Compensation Plan Participants that are currently at the limit, giving them the opportunity to increase their contributions. Please inform employees in your agency of this change.

DB:JJM:rdb

DATE:	January 3, 2001
SUBJECT:	Addition of Payroll Deduction Code 'LTC'
EFFECTIVE DATE:	Payroll Period Beginning January 7, 2001 and Ending January 20, 2001, paid February 2, 2001.
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of New Payroll Deduction Code for the Kansas State Employees Long-Term Care Program

The monthly payroll deduction for the Kansas State Employee Long-Term Care Program as authorized by K.S.A. 75-6523 will become available with the payroll period beginning January 7, 2001. The Long-Term Care deduction will be taken on an after tax basis and will have the deduction code of 'LTC'. The new deduction will also be displayed on paycheck stubs/advices and the Regent's warrant registers as 'LTC'.

The Long-Term Care deduction will occur monthly on the first paycheck of the month. Deductions taken will be for coverage for the following month. For example, the deduction taken on the February 2, 2001 paycheck will be for the month of March 2001.

Hartford Life Insurance Company will be the provider of the Kansas State Employees Long-Term Care Program. State of Kansas employees currently enrolled in the Long-Term Care Program will be receiving a letter from Hartford's Long Term Care Group (LTCG) indicating that payroll deduction is available. Included with the letter from the LTCG will be a Payroll Deduction Authorization form. Interested employees may also contact Hartford at 1-877-463-9871 to request the authorization form.

Employees interested in electing the payroll deduction for the Long-Term Care Program need to complete the authorization form and return it to Hartford's Minneapolis Minnesota office. The LTCG will transmit the authorization form to the Division of Personnel Services (DPS) Benefit Unit, the first of the month following receipt of the Payroll Deduction Authorization form by LTCG. The authorization form will be accompanied by a listing of all individuals electing payroll deduction along with the amount to be deducted. The DPS Benefit Unit will verify eligibility, notify the employing agency of the payroll deduction, and enter the deduction into the SHARP system for SHARP agencies. The payroll deduction is effective the first day of the payroll period for the first paycheck of the month following transmission of the payroll deduction information to the Division of Personnel Services Benefits Unit for coverage effective the first of the month following the payroll. Regent's institutions are responsible for entering the deduction in their individual systems. The LTCG will send a confirmation statement to the participant to notify them of the payroll deduction amount and the effective date of the payroll deduction.

Employees wanting to change or cancel their participation in the Long-Term Care Program will need to contact Hartford's LTCG directly and complete the change or termination paperwork. The LTCG will then forward the change or termination information to DPS Benefit Unit. The Benefit Unit will enter the change or termination data into the SHARP system, and will notify the employing agency of the change or termination. Regent's institutions are responsible for entering the change or termination information into their individual systems. Any questions regarding the plan or deduction should be directed to either the Division of Personnel Services Benefit Unit at (785) 296-6280 or the Hartford's LTCG at 1-877-463-9871.

Please note that if the employee does not receive a paycheck or the employee paycheck is not large enough for the 'LTC' deduction to occur, the employee will be responsible for remitting premiums directly to Hartford in order for coverage to continue. Payroll adjustments will not be processed to collect past due premiums. This includes employees at Regents institutions who are on summer leave with benefits.

The following new Department of Administration Clearing Fund has been established for Long-Term Care: 173-00-9016 (fund) - 01 (fiscal year)-9110 (budget unit)-9763 (index code). In addition, index code 9763 has been added to the STARS system for each of the Regent's Payroll Funds to record the receipt of the deduction by the individual Regent's institutions. The Division of Accounts and Reports, Payroll Services Section will remit the monies to the LTCG for all agencies.

The Division of Accounts and Reports, Payroll Systems Team will make changes to the SHARP payroll system to implement the Long-Term Care deduction. Regent's institutions are responsible for ensuring that the Long-Term Care deduction is available on their individual systems. 

DB:JJM:rdb

DATE:	January 5, 2001
SUBJECT:	W-2 Wage and Tax Statements for Calendar Year 2000
EFFECTIVE DATE:	Immediately
CONTACT:	Sunni Zentner	(785) 296-7058	(sunni.zentner@da.state.ks.us)
	Debbie Esquibel	(785) 368-6313	(debbie.esquibel@da.state.ks.us)
APPROVAL:
SUMMARY:	Information Pertaining to Employee 2000 W-2 Statements

The final version of the KTXPR55 W-2 Listing has been generated. The KTXPR55 report contains all information printed on the 2000 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 December 30, 2000. 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 2000 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 2000 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 2000 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 16, 2001.  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 2000 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 2000 will be printed for distribution to the agencies on each Monday, beginning February 6, 2001 and continuing through April 16, 2001. The agencies are requested to submit one blanket request for duplicate 2000 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 2000 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 v7.02 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.

Agencies are reminded that the Internal Revenue Service eliminated Form 4782, Employee Moving Expense Information in 1998. Therefore, agencies will no longer receive this form for employees of their agency. For calendar years 1998 and after, 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, 3, 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 22, 2000 and the off-cycle paychecks dated December 29, 2000 are included in the 2000 W-2 amounts.

DB:JJM:rdb

Attachment: 2000 W-2 WAGE AND TAX STATEMENT (pdf)

DATE:	January 5, 2001
SUBJECT:	New Organizational Dues Deduction Code
EFFECTIVE DATE:	Payroll Period Beginning December 24, 2000 and Ending January 6, 2001, Paid January 19, 2001
CONTACT:	Janice Wolfley	(785) 296-3699	(janice.wolfley@da.state.ks.us)
APPROVAL:
SUMMARY:	Addition of Organizational Dues Code for Hays Fraternal Order of Police

Please be advised of a new deduction code, 'ORG048' for organization dues for members of the Hays Fraternal Order of Police Kansas Lodge #48. The deduction will be $10.00 per bi-weekly pay period effective with the payroll period shown above. Fort Hays State University should send DA-193 authorizations forms required for employees to Blaine Bryden at Hays Fraternal Order of Police Lodge #48 at 16112 East 29th, Hays, Kansas 67601.

The Division of Accounts and Reports, Payroll Services team has made the necessary updates to the SHaRP system to effect this change for all responsible for ensuring this change is made in their individual systems.

DB:JJM:rdb

DATE:	January 5, 2001
SUBJECT:	Change in Organization Dues Deduction Amount for AFSCME Council 72
EFFECTIVE DATE:	Payroll Period Beginning December 24, 2000 and Ending January 6, 2001, Paid January 19, 2001
CONTACT:	Janice Wolfley	(785) 296-3699	(janice.wolfley@da.state.ks.us)
APPROVAL:
SUMMARY:	Organization Dues Change for AFSCME Council 72, Locals 1270, 1357, and 1469

Please be advised that the regular bi-weekly dues for members of AFSCME Council 72, Locals 1270 (ORG270), 1357 (ORG357), and 1469 (ORG469) will be increased to $10.74. The deduction table for AFSCME Councils after the change will be as follows:

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

DB:JJM:rdb

DATE:	January 5, 2001
SUBJECT:	2001 W-2 Production Reports
EFFECTIVE DATE:	Immediately
CONTACT:	Sunni Zentner	(785) 296-7058	(Sunni.Zentner@da.state.ks.us)
APPROVAL:
SUMMARY:	2001 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 2001 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 2001 W-2 production reports are scheduled to be generated:

• Friday, February 16, 2001
• Friday, March 16, 2001
• Friday, May 11, 2001
• Friday, June 8, 2001
• Friday, July 6, 2001
• Friday, August 3, 2001
• Friday, August 31, 2001
• Friday, September 28, 2001
• Friday, October 26, 2001
• Friday, November 9, 2001
• Friday, November 21, 2001
• Friday, December 7, 2001
• Friday, December 19, 2001
• Friday, December 26, 2001
• Friday, December 28, 2001 - Tentative Final Load 

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 2001 are complete, a final KTXPR55 report will be generated for each agency's information and review.

In addition, the Regent's institutions will receive, via either e-mail or fax from Payroll Services, a copy of the errors from the 2001 KTAX900 report. The KTAX900 report should be thoroughly reviewed and any correcting transactions processed timely. It will continue to be the Regent's responsibility to use the Management Reporting Interface file (MRI) to reconcile the year-to-date amounts in SHARP to the year-to-date amounts in their individual payroll systems.

Regent's 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.

DB:JJM:rdb

DATE:	January 5, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Massachusetts Mutual Life Insurance Company (VTSA #444) has changed its premium payment address for the Panorama Annuity. Remittances should be made payable to MassMutual-Panorama and should be sent to the following address:

P. O. Box 92230
Chicago, IL 60675-2230

The vendor table in STARS has been updated to reflect the change in mailing address.

DB:JJM:rb

DATE:	January 11, 2001
SUBJECT:	Increased Parking Fees for the Garage at 512 Jackson in Topeka
EFFECTIVE DATE:	Payroll Period Beginning December 24, 2000 and Ending January 6, 2001, Paid January 19, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Increased Parking Fees for the Garage at 512 Jackson in Topeka - Payroll Deduction Codes PPKA02, APKA02, and PKAD04

Due to the increase in parking fees for Department of Aging employees who park in the garage at 512 Jackson in Topeka, payroll deduction codes PPKA02 (pre-tax parking) and APKA02 (after tax parking) will increase to $12.70 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD04, will increase to $.97 (.0765 X $12.70).

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

DB:JJM:rdb 

DATE:	January 23, 2001
SUBJECT:	Elimination of Insurance Coverage Codes on Paycheck Stubs
EFFECTIVE DATE:	Payroll Period Beginning January 7, 2001 and Ending January 20, 2001, Paid February 2, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.ks.us)
APPROVAL:
SUMMARY:	Elimination of Insurance Coverage Codes A, B and C Being Printed on Paycheck Stubs and Advices

As a result of a review of the insurance codes printed on the paycheck stubs and advices, the Insurance Coverage Codes A: Covered Workers Compensation Insurance, B: Covered Unemployment Compensation Insurance, and C: Covered Life and Disability Insurance will no longer be printed on paycheck stubs. The elimination of these codes on the paycheck stub is a print change only and does not affect the coverage provided or data entry into SHARP for these deductions. Elimination of these codes is a result of programming modifications needed to print accurate data and the continued policy to implement delivered PeopleSoft software without modifications.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees.

DB:JJM:rdb 

DATE:	January 29, 2001
SUBJECT:	Addition of New Earnings Code
EFFECTIVE DATE:	Pay Period Beginning January 21, 2001 and Ending February 3, 2001, Paid February 16, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of Earnings Code 'S10'

Executive Directive 01-305 establishes a new pay premium of $1.00 per hour for Kansas Department of Transportation employees who perform emergency snow removal. The earnings code for this pay premium is 'S10' and is only available for use by the Kansas Department of Transportation (agency 276). The new earnings code adds to gross pay and will be displayed as follows:

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new earnings code to the SHARP payroll system. Regent's institutions are responsible for ensuring the new earnings code is available on their individual systems.

DB:JJM:rdb

DATE:	February 27, 2001
SUBJECT:	Workers Compensation Insurance Rates
EFFECTIVE DATE:	Pay Period Beginning March 4, 2001 and Ending March 17, 2001 paid March 30, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Change from a uniform flat rate to an agency experience rate for Workers Compensation Insurance.

Senate Bill 219 amended K.S.A. 44-575 to establish Workers Compensation Insurance (WCI) rates for state agencies based on the accidental injury and occupational disease experience of a state agency rather than the current practice of a uniform rate for all state agencies. The establishment of individual state agency rates will become effective fiscal year 2002. For fiscal year 2002, the state agency rate will be calculated by using one-half of the old uniform rate and one-half of the agency experience rate. For fiscal year 2003, the rate will be the experience rate based on a three year rolling average.

New Deduction Codes - With the establishment of individual WCI rates for each state agency, the deduction codes in Attachment A have been added to SHARP.

Conversion to New Codes - The conversion to the new WCI deduction codes will occur in SHARP on Monday, March 12, 2001 with an effective date of March 4, 2001. Please note that this is only a change to the new codes, the new rates are not effective until July 1, 2001. The conversion process will set-up the new WCI deduction codes for all active employees in SHARP where the employee record number is equal to the benefit record number. Please note that if an employee is working concurrent positions in two different agencies and both employee record numbers have the the same benefit record number, the employee will only be enrolled in one agency specific WCI deduction code (the agency where the employee record number equals the benefit record number). For example, employee A is working concurrently for agencies 173 and 276. The employee record number for agency 173 is '0' and the employee record number for agency 276 is '1'. Both employee record numbers are tied to benefit record number '0'. In this case, the employee will be set up with the deduction code of WCI173. The employee will receive one paycheck for all wages (from both agency 173 and 276) and WCI for all wages will be calculated using the rate for agency 173. The WCI charged to each agency will be prorated by the employee's agency wage to employee's total gross wages. For example, if the employee in the above example had $1500.00 of total wages for the period ($900.00 agency 173 and $600.00 agency 276) and WCI rate charge of $14.00, $8.40 will be charged to agency 173 (60%) and $5.60 will be charged to agency 276 (40%).

Future Maintenance - The SHARP batch process which runs every night to enroll new hires and re-hires into the State Leave and WCI with the proper rate, has been modified to review all job actions to determine if the agency has enrolled the employee in the proper WCI code. SHARP will verify that the employee record number is equal to the employee benefit number in determining if the correct WCI code was used. If the agency has not enrolled the employee into the proper WCI code, the batch process to enroll the employee into the proper WCI code will insert a new row with the correct WCI code for the employee with an effective date equal to the job action necessitating the change (hire, rehire, transfer, ect.).

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new deduction codes to the SHARP payroll system. Regent's institutions are responsible for ensuring the new earnings codes are available on their individual systems.

DB:JJM:rdb 

Attachment: WCI Codes By Agency Number

DATE:	March 15, 2001
SUBJECT:	Addition of Earnings Codes DNE and DON
EFFECTIVE DATE:	Pay Period Beginning March 4, 2001 and Ending March 17, 2001 paid March 30, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of Earnings Codes DNE and DON for the Kansas Donor Leave Program.

Executive Order 2001-02 establishes the Kansas Donor Leave Program for state employees within the executive branch of state government and Regents institutions. The Kansas Donor Leave Program provides approved recovery time away from work for employees who choose to donate organs, tissue, bone marrow, blood or blood products. All classified and unclassified benefit eligible employees may receive paid leave in accordance with the following criteria:

1. Employees may receive up to 30 working days of paid leave for recovery from an organ or tissue donation procedure.
2. Employees may receive up to 7 working days of paid leave following the donation of bone marrow.
3. Employees may receive 1.5 hours of paid leave every 4 months for the donation of blood.
4. Employees may receive 3 hours of paid leave every 4 months for the donation of blood platelets or other approved blood products.

The following two new earnings codes have been added to SHARP for the Kansas Donor Leave Program:

For further implementation guidelines or information, please consult the Division of Personnel Services' Bulletin No. 01-01 dated March 4, 2001 or contact Brent Smith at (785) 296-1432.

The Division of Accounts and Reports, Payroll Systems Team is responsible for adding the new earnings codes to the SHARP payroll system. Regents instituions are responsible for ensuring the new earnings codes are available on their individual systems.

DB:JJM:rdb 

DATE:	March 15, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Fidelity Investments (VTSA #775) has changed its premium payment address. Effective immediately, remittances should be sent to the following address:

P. O. Box 770002
Cincinnati, OH 45277-0089

The vendor table in STARS has been updated to reflect the change in mailing address.

DB:JJM:lk 

DATE:	April 13, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Name Change
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Name Change

Payroll Services has been notified that reference to Kansas Farm Bureau Life Insurance Company (VTSA #378) should be changed to Farm Bureau Life Insurance Company.

The vendor table in STARS has been updated to reflect the change in name.

DB:JJM:lk 

DATE:	May 11, 2001
SUBJECT:	Housing, Food Service and Other Employee Maintenance
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
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.

DB:JJM:RDB

Attachment: DA-171 Housing, Food Service and Other Maintenance Policy (.pdf)  

DATE:	May 11, 2001
SUBJECT:	Fiscal Year End Payroll Processing for FY 2001
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Summary of Fiscal Year End Payroll Processing

This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing. Please note that another informational circular concerning fiscal year 2002 payroll contribution rates will be issued as soon as the information is available. 

Benefits Contribution Rates 

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments that are processed for the payroll periods ending on or before June 9, 2001 will use fiscal year 2001 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 9, 2001 will use fiscal year 2002 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).

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 9, 2001 will use fiscal year 2001 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 9, 2001 will use fiscal year 2002 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 B (processed June 20, paid June 25) and Run C (processed June 25, paid June 28) for the payroll period ending June 9, 2001 will be charged to fiscal year 2001 expenditures. Run A (processed July 2, paid July 6) for the payroll period ending June 23, 2001 will be charged to fiscal year 2002 expenditures.

Reversals will always reverse expenditures in the fiscal year originally charged. Please note that the off-cycle scheduled June 25, 2001 (paid June 28) will be the last opportunity to have the reissue of an adjusted paycheck charged to fiscal year 2001 expenditures. 

Once the Run C off-cycle for the period ending June 23, 2001 (processed July 9, paid July 12) has been processed, agencies should not request or process paycheck reversals until STARS FY 2001 closing has been successfully completed. STARS is scheduled to resume processing July 23, 2001.

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 18 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 6/10/01 (beginning date of the first on-cycle payroll charged to FY2002). The Budget End Date will be 6/9/02. On June 18 please refrain from making updates to these panels until after the update has been completed and you can view the 6/10/01 effective dated row. When adding new rows for FY2002, agencies should verify that 6/9/02 was used as the Budget End Date for FY2002. 

GHI Adjustments 

As of July 1, 2001, NO payroll processing for GHI adjustments should be made for contract year 1999. 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 1999.

Julian Date Reset 

The julian date used for the SHaRP off-cycle document numbers will reset to 001 on July 1, 2001. 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 25, paid June 28) will have the 360 julian date in the document number and expenditures will be charged to fiscal year 2001. The off-cycle Run A (processed July 2, paid July 6) will have the 002 julian date in the document number and expenditures will be charged to fiscal year 2002.

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 2002.

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 on-cycle paycheck for the period.
2. Agencies should review the accuracy of the gross-to-net payroll information and employer 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 'non-taxable'.

DB:JJM:RDB 

DATE:	May 11, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	June 1, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified of an address change for the Metropolitan Life Insurance Company (VTSA #446). Effective June 1, 2001, remittances must be mailed to the following new address:

MetLife
P.O. Box 120841 Dept. 0841
Dallas, TX 75312-0841 

The vendor table in STARS has been updated to reflect the change in address.

In addition, any wired remittances must use the following account information:

Chase Manhattan Bank, New York, NY
ABA Routing Number: 021000021
Account Number: 002-2-430813
Account Title: Denver Annuity EFT 

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHARP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.

DB:JJM:lk 

DATE:	May 15, 2001
SUBJECT:	Employee Taxability for the Personal (Commuting) Use of a State-Owned Vehicle
EFFECTIVE DATE:	Immediately
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Information Concerning Employee Use of State-Owned Vehicles

The information provided herein is based on current provisions of the Internal Revenue Service Code, Treasury Regulations, Kansas Statutes Annotated and Kansas Administrative Regulations.

BACKGROUND 

In general, an employee's personal (commuting) use of a state-owned vehicle is a taxable fringe benefit. Employer's who allow employee's personal (commuting) use of a vehicle are generally required to determine the value of the personal (commuting) use and include it in the employee's gross income. The value of the personal (commuting) use is generally subject to income, Social Security and Medicare taxes. The Internal Revenue Service (IRS) currently utilizes the Annual Lease, Commuting and Cents-Per-Mile methods to determine the amount of fringe benefit income to include in employee wages. The requirements for the different valuation methods will be discussed in Appendix A.

Please note that Qualified Nonpersonal Use Vehicles are exempt from the taxability requirements, since these vehicles are unlikely to be used more than minimally for personal use because of their special design. Vehicles that qualify for this exclusion are listed in Appendix D.

Field employees, such as inspectors, do not report fringe benefit income for official travel between the employee's residence and work sites. To qualify for the exclusion, the employee's residence must be designated as the employee's official work station because over 50% of the employee's work time involves direct travel from his or her residence. Please note that any incidental travel would be considered commuting and subject to fringe benefit income reporting.

POLICY

K.S.A. 8-301 states that all state-owned vehicles are for official business only and may not be used for personal business or pleasure. Kansas Administrative Regulation 1-17-2a states that a state-owned or leased motor vehicle shall not be used to commute between the employee's residence and the employee's official work station, except:

(1)(A) When parking the vehicle at the official work station overnight subjects the vehicle to a high risk of vandalism.

(1)(B) 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.

(1)(C) 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.

K.A.R 1-17-2a also states when a state-owned or leased vehicle is authorized to be used for travel to a employee's place of residence under paragraphs (1)(A) or (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 of Administration or the Secretary's designee. For trip vehicles assigned to a traveler under paragraph (1)(C), "reasonable distance" shall be based on the 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.

Please note that meeting the Kansas Administration Regulation requirements to commute with the state-owned vehicle does not exempt the employee from the IRS fringe benefit income reporting requirements. The employee would still need to report fringe benefit income for the commuting use of vehicle unless the vehicle qualifies as a Nonpersonal Use Vehicle or the employee's residence is designated as the employee's official work station.

AGENCY RESPONSIBILITY

Agencies shall identify and notify those employees who use state-owned vehicles and who park those vehicles overnight at their residence (commuting) that such use of the vehicle is a taxable event to the employee. The personal (commuting) use is fringe benefit income and must be valued at one of the three methods approved by the IRS. This requirement does not apply to vehicles listed in Appendix D.

Agencies shall determine and install procedures similar to the attached accounting work sheet that will record the workdays on which the vehicles were parked overnight at the employee's residence and will report the calculated gross amount of such fringe benefit income for the pay period to the payroll system. The procedure will include at a minimum the data specified in the attached Statement of Personal Usage for State Provided Vehicles (Appendix B).

Agencies shall provide the payroll system with reports and data to:

1. Record fringe benefit income chargeable to each affected employee.
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 W-2, the total fringe benefit income for the calendar year.

DB:JJM:rdb 

Attachment A: IRS Approved Methods of Reporting Fringe Benefit Income (.pdf)
Attachment B: Statement of Personal Usage for State Provided Vehicles (.pdf) 
Attachment C: Daily Travel Log (.pdf)  
Attachment D: Vehicles Excluded From Fringe Benefit Income Reporting Requirements (.pdf)

DATE:	May 21, 2001
SUBJECT:	New Payroll Deduction Codes for Parking
EFFECTIVE DATE:	Payroll Period Beginning May 13, 2001 and Ending May 26, 2001, Paid June 8, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of New Parking Deduction Codes PPKA04, APKA04 and PKAD05 for Employees of the Kansas Department of Agriculture

To facilitate a parking lease recently entered into by the Kansas Department of Agriculture for employees of their agency who park in the garage located near 9th and Quincy in Topeka, payroll deduction codes PPKA04 (pre-tax parking) and APKA04 (after-tax parking) have been added in SHARP effective May 13, 2001. The employee deduction amount will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05, will be $1.59 (.0765 X $20.77) per payroll period. 

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP payroll system to effect this change for all employees for whom SHARP calculates pay. Regent's institutions are responsible for ensuring any needed changes are made in their individual systems.

DB:JJM:lak

DATE:	June 5, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Address Change
EFFECTIVE DATE:	Immediately
CONTACT:	Earl Brynds	(785) 296-5376	(earl.brynds@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified of a name change for the Security First Life Insurance Company (VTSA #843). Effective immediately the name is changed to MetLife Investors USA Insurance Company. Premium remittances should be mailed to the following address:

MetLife Investors USA Insurance Company
P.O. Box 91811
Chicago, IL 60693-1289  

The vendor table in STARS has been updated to reflect the name change.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHaRP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.

DB:JJM:lk 

DATE:	June 8, 2001
SUBJECT:	Voluntary Tax Sheltered Annuity Company Change
EFFECTIVE DATE:	Immediately
CONTACT:	Earl Brynds	(785) 296-5376	(earl.brynds@da.state.ks.us)
APPROVAL:
SUMMARY:	Voluntary Tax Sheltered Annuity Company Address Change

Payroll Services has been notified that the name change for the Security First Life Insurance Company to MetLife Investors Insurance Company (See Informational Circular No. 01-P-045 dated June 5, 2001) applies to both VTSA companies #841 and #843. To avoid a duplication of companies, effective immediately, VTSA company #841 (Security First Life Insurance Company - California) is being removed from the list of valid VTSA companies and company #843 will remain with the name of MetLife Investors USA Insurance Company. Any employees currently enrolled in company #841 should be changed to company #843. The information contained in Informational Circular No. 01-P-045 regarding company #843 is still applicable.

The vendor table in STARS has been updated to reflect this change.

The Division of Accounts and Reports, Payroll Systems Team is responsible for making any necessary updates to the SHaRP payroll system. Regents' institutions are responsible for ensuring this change is reflected in their individual systems.

DB:JJM:lak 

DATE:	June 19, 2001
SUBJECT:	Fiscal Year 2002 Payroll Contribution Rates
EFFECTIVE DATE:	Pay Period Beginning June 10, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	-Fiscal Year 2002-Employee/Employer Matching Share of Payroll Contributions and Retirement Plans - Extension of KPERS Death and Disability Moratorium

The attached schedule is a listing of the percentage rates for employer payroll contributions and employee/employer retirement plan contribution rates for fiscal year 2002. The rates for fiscal year 2002 will become effective with the on-cycle payroll period beginning June 10, 2001 and ending June 23, 2001 paid July 6, 2001. The rates for OASDI, Medicare, and Kansas's withholding taxes remain unchanged for fiscal year 2002. The new federal withholding tax rates will be published under a separate informational circular when released by the Internal Revenue Service.

The moratorium of KPERS Death and Disability Insurance has been extended from July 1, 2001 to December 31, 2001. Because of the extension of the moratorium, the Division of Accounts and Reports will not collect or remit KPERS Death and Disability contributions for pay periods that have an original check date between April 1, 2000 and December 31, 2001. Agencies are reminded that it is extremely important that the appropriate 'GTL' code be established in SHARP's General Deduction Data for new employees hired between March 19, 2000 and December 8, 2001 even though the agency will not be charged for KPERS Death and Disability contribution. If the appropriate 'GTL' code is not established, then imputed income, if applicable, will not be properly calculated for the new employees. 

The Division of Accounts and Reports, Payroll Systems Team will make the necessary changes to the SHaRP payroll system to effect these changes for all employees for whom SHaRP calculates pay. 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 2002.

DB:JJM:rdb

Attachments: A,B &C (.pdf)

DATE:	June 20, 2001
SUBJECT:	New Payroll Deduction Codes for Parking - Governmental Ethics Commission
EFFECTIVE DATE:	Payroll Period Beginning June 10, 2001 and Ending June 23, 2001, Paid July 6, 2001
CONTACT:	Roger Basinger	(785) 296-5387	(roger.basinger@da.state.us.ks)
APPROVAL:
SUMMARY:	Addition of New Parking Deduction Codes PPKA05 and APKA05

To facilitate a parking lease recently entered into by the Governmental Ethics Commission for employees of their agency who park in the garage located near 9th and Quincy in Topeka, payroll deduction codes PPKA05 (pre-tax parking) and APKA05 (after-tax parking) have been added to SHaRP effective June 10, 2001. The employee deduction will be $20.77 per bi-weekly payroll period. The employer rate, payroll deduction code PKAD05 (which is already established), will be $1.59 (.0765 X $20.77) per payroll period.

The Division of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHaRP payroll system to effect this change for all employees for whom SHaRP calculates pay. Regent's institutions are responsible for ensuring that this change is made in their individual systems.

DB:JJM:rdb

DATE:	June 21, 2001
SUBJECT:	New Tables for Federal Withholding Tax for 2001
EFFECTIVE DATE:	July 1, 2001
CONTACT:	Carla Johnston Kathy Ogle	(785) 296-2588 (785) 296-2290	carla.johnston@state.ks.us (kathy.ogle@da.state.ks.us)
APPROVAL:
SUMMARY:	New Federal Withholding Tax Rates Effective for Paychecks Issued On or After July 1, 2001

The Internal Revenue Service (IRS) has issued Publication 15-T containing revised withholding rates and tables for computing the federal withholding tax deductions effective for all paychecks issued on or after July 1, 2001. The supplemental wage flat withholding rate is decreased to 27.5% effective August 7, 2001. These changes are the result of the Economic Growth and Tax Relief Reconciliation Act of 2001. The standard deduction for one withholding allowance will remain at $2900.00 per year in calendar year 2001.

The attached tables have been prepared for use in computing all federal withholding tax payments for wages paid on or after July 1, 2001. When calculating federal and state withholding tax by annualizing, 26 pay periods should be used to arrive at an annualized amount. The Kansas withholding tax tables are not effected by the Economic Growth and Tax Relief Reconciliation Act of 2001. The tax tables contained in Accounts and Reports Informational Circular No. 99-P-013 dated December 13, 1998 will continue to be used to calculate state tax withholding amounts for employees working in Kansas.

In addition, agencies should make the attached document, entitled 'Notice to Employees', available to employees so that they will be aware of how the new law affects their withholding.

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.

DB:JJM:cj

Attachment 1 - SCHEDULE A (FEDERAL WITHHOLDING TAX)
Attachment 2 - Notice to Employees