CAR Newsletter - November 2015

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller

Top Story

Deadlines for November Payrolls

Don't Forget Smiley

In planning your work for November, it is important to remember that Veterans Day is Wednesday, Nov. 11.  Thanksgiving is recognized on Thursday, Nov. 26, and Friday, Nov. 27 is also a state holiday.  November biweekly payroll for state agencies (“B” or “C” biweekly schedules) will be paid on Friday Nov. 13 and Wednesday Nov. 25. November monthly payrolls will be paid on the last working day of the month, Monday, Nov. 30.

With these dates in mind, agency staff should plan their work accordingly for the deadlines: 

SUPPLEMENTAL:  Deadline has passed.  PeopleSoft supplemental payrolls will be set to pay on Thursday Nov. 12.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Wed., Nov. 4. 

BIWEEKLY: This deadline has passed. “B” and “C” biweekly payrolls are scheduled to pay on Fri., Nov. 13.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Thurs., Nov. 5. 

The next biweekly for “B” and “C” biweekly schedule agencies will be Wed. Nov. 25.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Wed., Nov. 18. 

MONTHLY: Monthly payrolls will be set to pay on Mon. Nov. 30.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Thurs., Nov. 19.


Adjustments to Oklahoma Child Support Payments

Agencies must notify OMES CAR of any items that will affect the Oklahoma centralized child support payment. Items that could affect the amount to be paid include refunds to employees for amounts withheld in error and reversals of payroll warrants. If OMES is not notified and payment is processed, the agency will be responsible for contacting the Department of Human Services child support division to attempt to get a refund.  If the funds have already been disbursed to the recipient, the money might not be refunded back to the agency. Timely communication from the agencies is critical in these situations.

CAR runs the process to report and make payment to the OCSS/Oklahoma Centralized Support Registry, PS vendor ID 0000190715, every Monday morning.  The process is run for payments with dates from the second previous Saturday through the previous Friday. For example: paychecks with an issue date between 10/24/2015 – 10/30/2015 were processed to pay the child support withholdings on 11/02/2015. All payments going to the OCSS must be set up to use Vendor ID 0000190715.  Payments to Vendor ID 0000000830 or Vendor ID 0000197419 for the OCSS are no longer allowed and will not get processed for centralized payment if used in error.  

In PeopleSoft Financials, a journal entry is created to remove the funds from the agency’s 994 fund.  The agency will see a debit to the 633190 account and a credit to 101000. Institutions of higher education are not included in the central payment process.

For questions, please contact Beth Brox at 405-522-1099, or Jean Hayes at 405-522-6300,

>> Back to Top

Taxability of Gift Cards, Certificates, Coupons

Giving gifts to employees is restricted and should only be given as part of a formal employee recognition program. See O.S. 74 § 4121 and 4122. Furthermore, any gift cards, certificates or coupons given to employees are to be included in the employee’s taxable income.

These items are considered by the Internal Revenue Service to be cash or a cash equivalent and do not meet the requirements to be excludable as a de minimis fringe benefit.

Even when an employer provides gift cards, certificates, or coupons to purchase a turkey, ham or other nominal value property, these are considered wages and are subject to income and employment taxes. This is true even when the card restricts the items purchased; the time to use the coupon and any unused portion is forfeited. Cash equivalents do not meet the de minimis fringe benefit requirements.

Process the taxable amount through payroll using the gift card amount using the TRC Code of “GIFT,” which will show as earnings code “GFT.” The amount will be included as taxable income and will be taxed on the paycheck.

>> Back to Top

Refunds of Taxes for Overpayments to Employees (Form 94)

Agencies need to review all outstanding employee overpayments and collect required amounts from employees. After collection, please submit OMES Form 94P as applicable. Agencies will be entitled to receive refunds for all forms submitted by Friday, Dec. 18, 2015. After this date, refunds cannot be returned to the agencies; however, agencies are still required to submit the form after this date for employee wage corrections. Corrections due to overpayments will still be posted to the employee’s 2015 W-2 for requests submitted through Thursday, Jan. 7, 2016. Any corrections submitted after Jan. 7 will require a corrected W-2.

>> Back to Top

Deceased Employee Payroll Processing and Reporting

The OMES Form DER, Deceased Employee Reporting, is required to be completed by agencies when an employee dies and payments are made after the date of death. The form is on the OMES website under DCAR Forms. Once completed, please send the form to OMES/DCAR payroll, attention Beth Brox or Jean Hayes. Please have all forms completed and submitted no later than Thursday, Jan. 7, 2016, so that 2015 year-end reporting will be correct.

For procedures on processing payroll after the death of employee, the HCM how-to document titled "Payroll Processing for Death of an Employee" is on the EBS website under HCM’s Module News for "How-to Documents." 

NOTE: Please remember to update the date of death on the HR Personal Data Record, update Job Data for a termination with the reason code ‘SO4’ (deceased), and terminate the employee’s direct deposit. Banks will return direct deposits for deceased customers.  A return of an item will cause a delay to the individual receiving the payment.

>> Back to Top

Outstanding Wages Beneficiary Designation Option

O.S. 40 § 165.3a, allows employers to provide employees the option of designating a beneficiary for wages and benefits payable upon an employee’s death.  There is no requirement for an employer to allow employees to select beneficiaries, but agencies may want to consider adopting a policy which allows employees to designate a beneficiary.  Providing the option to employees would relieve stress and anxiety after the death of the employee on the family members, etc.  Also, agencies would have clear guidance on who is to receive final wage payments and avoid any potential difficulties in determining who gets the payment(s). 

This statute does not include any longevity payment that may be due as of the date of death of an employee.  O.S. 74 § 840-2.18, subsection H.2, authorizes any longevity payment to be paid to the decedent’s surviving spouse, or if there is no surviving spouse, to the decedent’s estate. 

For more information or sample forms and instructions, please contact Lisa Raihl at 405-521-3258, or Jean Hayes at 405-522-6300,

>> Back to Top

W-2 Reporting of Employer-Sponsored Group Health Insurance

Beginning in 2012, the IRS mandated Box 12 reporting for the cost of employer-provided health coverage. The W-2 must show the amount in Box 12 with Code DD. 

To correctly report the cost of health coverage, all payments made for health insurance must process through the payroll system.  Failure to process through payroll will result in incorrect reporting on the W-2.  For help establishing the appropriate deduction codes, state agencies should contact the OMES HelpDesk.  Assistance will be provided by the EBD HCM Payroll team. For institutions of education, please ensure payroll file information contains the total cost of health insurance (employer and employee share).

As a reminder, this reporting to employees is for their information only. The amount reported is not taxable and is only intended to inform them of the cost of their health care coverage. 

For questions or more information, please contact Lisa Raihl at 405-521-3258 or, or Jean Hayes at 405-522-6300 or

>> Back to Top

Agency Address Verification

Please verify the correct agency address is being used in the HCM payroll system. The agency address can be found on the Employee’s Earnings Statement. If the address is not correct for the agency, this will need to be corrected before year end processing of tax forms. Please contact the OMES Help Desk to have the agency’s address updated in the payroll system.

>> Back to Top

State HCM System Use of Employee Addresses on W-2s

Please instruct employees to update their address if there has been a change during 2015.  As a reminder, in the PeopleSoft HCM system, the W-2 process loads the employee’s mailing address for IRS Form W-2 reporting.  If there is no value in the mailing address field, then the employee’s home address will be used on the W-2.  If there is a value in the mailing address field that is not to be used on the Form W-2, it will need to be updated or inactivated.

>> Back to Top

Employee Benefits Department - PeopleSoft Deduction/Trailer Codes

For state EBD insurance purposes in calendar year 2016, please distribute this listing to Payroll and Human Resource Directors (to view the table click the link). Questions may be directed to Lisa Raihl at 405-521-3258, or Jean Hayes at 405-522-6300,


Clearing Accounts (Including 700 Funds)

O.S. 62 § 34.57 E 1. States:  “…at least once each month each state agency shall transfer monies deposited in agency clearing accounts to the various funds or accounts, subdivisions of the state, or functions as may be provided by statute and no money shall ever be disbursed from the agency clearing account for any other purpose, except in refund of erroneous or excessive collections and credits.”  Agencies may not accumulate monies in clearing accounts or 700 funds. 

>> Back to Top

P-Card Calendar Year 2016 Scheduled Pay Cycle

View the table that represents the actual dates of action associated with the P-Card payments  to see when the p-card download to PeopleSoft will occur each month, the date agencies can begin preparing their p-card vouchers, and the submission deadline for the vouchers received at OMES each month.

>> Back to Top

OPERS Defined Contribution Plan – Updated Account Code

Please note the following change in account code related to the new OPERS Defined Contribution Plan:

OLD ACCOUNT CODE:    519140           

NEW ACCOUNT CODE:   513300      

Payments for deposit to the Oklahoma Public Employee’s Retirement System for employer retirement savings made pursuant to the Retirement Freedom Act (O.S. 74 § 935.10).

>> Back to Top


P-Card Payment Information

Each invoice paid by P-Card must be paid in its entirety with one single transaction.  If any supplier has restrictions in place that require multiple transactions to pay a single invoice, the P-Card cannot be used for payment.

When making multiple monthly payments to the same supplier, care should be taken to evaluate any convenience fee cost on each transaction vs. the P.O. cost.  P.O.s should be utilized when the annual cumulative total of convenience fees would exceed the P.O. cost for a single supplier.

>> Back to Top

Agencies with State Purchasing Act Exemptions

Exemptions from the State Purchasing Act do not exempt agencies from encumbering funds at the time of purchase.  Title 10 Section 23 of the Oklahoma Constitution states: “…Any department, institution or agency of the state operating on revenues derived from any law or laws which allocate the revenues thereof to such department, institution or agency shall not incur obligations in excess of the unencumbered balance of cash on hand…”  This applies to all branches of government.

>> Back to Top


Affordable Care Act (ACA) reminders from Human Capital Management (HCM)

The ACA has been in full swing, effective Jan. 1, 2015.  OMES HCM is working hard to keep you informed on updates as they are developing new processes to accommodate the provisions of ACA. 

In order for 2015 ACA reporting to be correct, all agencies must ensure that the information for all employees is correct on the ACA eligibility page no later than Dec. 1, 2015.

Each October, agencies must run the Annual ACA Eligibility report which contains a listing of the current employees measured during the 12-month look back period.  The report is available within PeopleSoft HCM at OK Custom Reports/OK Reports/HR/ACA Eligibility Hrs Rpt (0666). The report must be run after all October 2015 payrolls are confirmed and employees have been evaluated for their ACA eligibility status.

Here are a few reminders to help ensure that your agency is in compliance with the ACA:

  • All current employees should have an effective dated row of 1/1/2015, or their hire date if hired after 1/1/2015.  Run the GO_HR_ACA_HIRE_NO_ACA_STATUS query to ensure your compliance.
  • All employees that are offered health insurance must have the ‘Medical Offered Date’ entered on the ACA Eligibility Page. The date will be the first day of the applicable month.
  • The ACA Monthly Hours Report 0668 should be run each month to determine eligibility for variable hour employees.  Variable hour employees will then need an updated ACA Eligibility row.
  • Employees who have terminated since 1/1/2015 should have a Termination row on the ACA Eligibility page.  The effective date should be the same effective date reflected on Job Data.  Run the GO_HR_ACA_TERMS_NO_ACA_STATUS query to ensure your compliance.
  • Any employee that terminated or who has not received pay prior to 1/1/2015 should be terminated in Job Data with the appropriate retroactive effective date.  Run the GO_PY_NOT_PAID_SINCE_PROMT query using the 1/1/2015 prompt date to ensure your compliance. NOTE: There may be extenuating circumstances for an unpaid employee to remain on payroll, such as an employee who is on workers compensation TTD.  If your agency has an employee(s) who will remain active, in an unpaid status, you must enter a row to reflect their current ACA Status on the ACA Eligibility page.  It would be advisable to utilize the “Remarks” field.
  • To ensure that data for your employees is accurate,  run the GO_HR_ACA_EMPL_LIST to view the current ACA status for all employees.

Please review the information from the link below regarding the Affordable Care Act that was presented at the 2015 Benefit Coordinator training. Contact information is available within the document if HCM can be of additional assistance.  HCM has created an ACA page found here, that contains helpful information and resources.



Project Website Updated

Information continues to be added to the higher education separation project website.  All webinars through Oct. 28 and the notes have been added along with documents discussed during the sessions. All information that has been published can be found in one area on the OMES CIO website.

>> Back to Top

Higher Education Notification Subscription Topic Reminder

OMES created a subscription topic designated specifically for the higher education separation project. To receive updates, click Subscription Update to subscribe to the topic Higher Education Payroll Processing & Reporting.  Once on the subscription page, select Subscription Type "Email", enter your email address and click the "Submit" button.  At the top of the subscription page, select the "Higher Education Payroll Processing and Reporting" topic. Other topics are available and can be subscribed to as desired. When finished, select “Submit” at the bottom of the page and your preferences will be saved.

>> Back to Top

Project Testing is Underway

Testing began on Monday Oct. 26 and runs through Wednesday, Nov. 25. Institutions should be loading files and reviewing the results in the test database. Notification went out on Monday Oct. 26 through the GovDelivery system.

>> Back to Top

Volume 26, Number 5
Fiscal Year-2016
November 06, 2015

In This Issue ...


The Complete Guide to Payroll Taxes and 1099 Issues

Hosted by the Oklahoma Society of CPAs
Presented by Surgent McCoy, CPE LLC
Monday, Nov. 16, 2015 in Oklahoma City

Topics include payroll tax requirements for wages, employee benefits, and reimbursements, fringe benefit and special issues, gross-up calculations, tax deposits, and complying with reporting requirements. Additional information can be found on their website

>> Back to Top

Fringe Benefits: 2015

Hosted by the Oklahoma Society of CPAs
Presented by Nichols Patrick CPE, Inc.
Tuesday, Dec. 1, 2015 in Tulsa

Topics include tax advantages of fringe benefit programs; health savings accounts, tax treatment of automobiles, cafeteria plans, group term life insurance. Additional information can be found on their website

>> Back to Top

OKFMA Next Quarterly Meeting

Mark your calendars for the next Oklahoma Financial Managers Association quarterly meeting Wednesday, Dec. 9, 2015 (please note the date is NOT Thursday, Dec. 10, as previously mentioned).  Seminars are provided free of charge.  To ensure an adequate number of training materials and refreshments are available, please register at:

Speaker:  Sandi McGarraugh

Topic:  "People grow into the conversations you have around them." (coaching, mentoring and juggling)

Date:   Dec. 9, 2015
Time:   1:30 - 4 p.m.
Place:   Business Conference Center Auditorium MetroTech, Springlake Campus, 1900 Springlake Drive, Oklahoma City, OK

>> Back to Top

AGA Luncheons for 2015-2016

The Oklahoma City Chapter of the AGA holds CPE luncheons most months between September and April as well as two all-day CPE events.  The luncheons are held in the Burk Burnett Board Room at the Oklahoma Cowboy and Western Heritage Museum on NE 63rd Street between Kelly and Martin Luther King Boulevard.  The luncheons begin at 11:30 a.m. and end at 1 p.m.  Cost is $15 for AGA Oklahoma City Chapter members and $20 for non-members.  The luncheons are recommended for one hour of CPE.  Mark your calendar for these upcoming luncheons (no RSVP necessary):

  • Jan. 19 – Speaker: Andrew Messer, Office of the State Treasurer
  • Feb. 17 – speaker and topic to be decided
  • March 16 – speaker and topic to be decided
  • April 27 – speaker and topic to be decided

>> Back to Top

Payroll 101: Foundations of Payroll Certificate Program

Offered by the American Payroll Association
San Antonio, Texas or Las Vegas, NV
Classes are held several times throughout the year at both locations.

The class is designed to help employees understand the procedures and processes in all aspects of payroll to include new employee forms, calculating pay, withholding and paying taxes, and preparing tax returns. The classes can be found on the APA website.

>> Back to Top

Payroll 201: Payroll Administration Certificate Program

Offered by the American Payroll Association
San Antonio, Texas or Las Vegas, NV
Classes are held several times throughout the year at both locations.

The class is designed for employees who have the fundamentals of payroll and wish to improve job performance and gain more knowledge. The class gets more in-depth in all aspects of payroll to FLSA, taxable fringe benefits, paying non-resident and resident aliens, corrections to Form W-2 and 941. The classes can be found on the APA website.

>> Back to Top


Jennie Pratt, CPA, CGFM

General Ledger:
Dan Thomason, CPA

Lisa Raihl, CPA

Transaction Processing:
Steve Wilson

Payroll Processing:
Elsa Kunnel

AP Manager:
Patricia Garcia, CPA, CGFM

ISD Finance:
Cathy Menefee, CPA, CGFM

Vendor Maintenance:
Victoria Baker

OMES Service Desk:
(PeopleSoft questions)

Financial Reporting Unit:
Matt Clarkson, CPA

Steven Hawkins, CGFM

Facebook Large

Like OklahomaOMES.

Twitter Large