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In planning your work
for December, it is important to remember that the state holidays for Christmas
this year are Thursday and Friday De. 24 and 25. December biweekly payroll for state agencies
(“B” or “C” biweekly schedules) will be paid on Friday Dec. 11 and Wednesday Dec.
23. December monthly payrolls will be paid on the last working day of the
month, Thursday, Dec. 31. Additionally, those institutions of higher education
on the “A” biweekly schedule will have the Friday Jan. 1, 2016 payroll
scheduled to pay on Thursday, Dec. 31 due to Jan. 1 being an observed holiday.
With these dates in
mind, agency staff should plan their work accordingly for the holiday deadlines:
“B” and “C” BIWEEKLY:
The biweekly payroll for “B” and “C” biweekly schedule agencies will be Wed., Dec.
23. Agencies should have these payrolls processed and paperwork forwarded
to OMES by Wed., Dec. 16.
MONTHLY: Monthly
payrolls will be set to pay on Thurs., Dec. 31. Agencies should have
these payrolls processed and paperwork forwarded to OMES by Tues., Dec. 22.
“A” BIWEEKLY: The
biweekly payroll for “A” biweekly institutions will be Thurs., Dec. 31. Institutions
should have these payrolls processed and paperwork forwarded to OMES by Tues.,
Dec. 22.
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PAYROLL
Listed below is contact
information for OMES personnel working on the IRS reporting project for tax
year 2015. The fax number is 405-522-2186.
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Pursuant to Internal
Revenue Code Section 6056 of the Patient Protection and Affordable Care Act
(“PPACA”), as a large employer, we are required to file an informational return
with the IRS related to the offer of health coverage to employees.
Additionally, we must provide employees with a statement that includes the information
we will be providing in our IRS filing. This “Employee Statement” is the IRS Form
1095-C which includes information about the health insurance coverage offered
to state employees, their spouse, and dependent(s).
For employees that have
worked in multiple agencies during the year, only one 1095-C form will be
produced. This combined 1095-C form will include information related to the
employee across the multiple agencies. The agency on record as the Primary
agency as of 12/31 will receive the 1095-C to distribute.
NOTE: Only employees
eligible for an offer of health coverage or those in a stability period with an
offer of coverage will receive a 1095-C form for 2015. Not all employees will
receive a 1095-C form.
For questions related
to ACA reporting, please contact Kristen Elsenbeck, Human Resources Coordinator
– 405-521-3947; kristin.elsenbeck@omes.ok.gov.
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OMES will have W-2s,
1099s, and 1095s ready for release on Jan. 19, 2016. Agencies may pick up the forms from our new
location at 5005 N Lincoln Blvd. Suite
100 beginning at 10 a.m. You may
park in front of our building in the visitor parking which faces Lincoln Blvd.
As you enter the building, ring the buzzer to the door at the right where you
will be directed to the room where the forms will be distributed. If an express
mail service or courier is to be used, please notify Beth Brox with the
necessary information. If the forms are
not picked up by 3 p.m., Jan. 21, 2016, OMES will ship them at the agency’s
expense.
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All W-2 forms will be
printed from the PeopleSoft HCM System. The format for the W-2 forms will
be the same as that used last year. Envelopes that fit the 2014 PeopleSoft
W-2 forms should fit the 2015 W-2 forms.
The format for the 1099
MISC forms is the same as last year. The forms will have three sections
with the top 1/3 and the middle 1/3 of the page containing the 2 copies of the
form. The bottom 1/3 of the page will include instructions and a mailing
address. To view the 1099 forms and envelope information, go to the 1099 express
website. Click on View for 1099 Misc on blank letter size
paper. This is an example of the 1099 form and can be printed directly
from there for measuring your envelopes. The vendor also specifies that
either the standard No. 9 or No. 10 envelopes will work.
Sample printed forms of
the PeopleSoft W-2 and 1099 MISC can be provided if requested.
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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.
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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.
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PeopleSoft employee
W-2s are processed and printed in Mail Drop order. Please ensure this
field is properly used for employees. The W-2s will print in the same order as
checks and advices sort, which is based on each agency’s needs.
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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
Friday Jan. 8, 2016.
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Dec. 18, 2015
– Last day refund of taxes due to overpayments can be returned to agencies (See
above article).
Dec.
18, 2015 – Last day for state agency updates to employees'
ACA Eligibility Page in order for the 1095-C forms to be correct. Changes to
2015 data after this date must be communicated to Kristin Elsenbeck, Human Resources Coordinator, kristin.elsenbeck@omes.ok.gov, 405-521-3947, for accurate 2015 reporting.
Dec. 29, 2015
– Last day OMES will process payrolls for calendar year 2015. PeopleSoft
payrolls must be delivered to OMES by 3 p.m. on this date. Any payrolls
received after this deadline may not process to pay timely.
Dec. 30, 2015
– Backup withholding payments from agencies must be received by OMES (See
article below).
Jan. 8, 2016
– Payroll warrant cancellations, OMES Form 94Ps, and earning adjustments for
calendar year 2015 must be received at OMES by 5 p.m. on Jan. 8, 2016. Any 2015
payroll information received after Jan. 8, 2016, will require the agency to
complete a corrected W-2.
Feb 1, 2016
– Deadline for delivering forms to employees. With Jan. 31, 2016 falling on a Sunday,
forms must be delivered no later than the next business day, Feb. 1.
Feb. 16, 2016
– Form W-4 with exemption expires (See article below).
Feb. 19, 2016–
Last date to submit corrected forms (See article below).
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Agencies that have
collected backup withholding on miscellaneous claims need to submit payment to
be received by OMES prior to Dec. 30, 2015. Please make interagency wires
payable to the State Contribution Fund (Vendor 0000000467, ADDR # 002, LOC #
0002). After processing payment, please send detail of the payment to Lisa
Raihl or Jean Hayes at OMES/DCAR 5005 N. Lincoln Blvd., Suite 100, Oklahoma
City, OK 73105-3324.
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Year 2015 rates are provided for comparison
purposes. In order to view the table click here.
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Corrected W-2 forms
must be delivered to OMES by Feb. 19, 2016. Please send the original W-2,
a copy of the corrected form, and a memo explaining why the correction is
needed. If the correction is due to a statutory canceled warrant which is
not to be replaced, please also send a letter asking that the warrant not be
replaced. Note: Because a warrant has been canceled by statute is
not a reason for such a W-2 correction. If it was a valid payroll payment,
the employee is still entitled to a replacement warrant; therefore, the W-2
reporting is proper.
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Other corrected forms such
as 1099 series forms and 1095-C forms must be delivered to OMES by Feb. 19, 2016.
Please send the original form, a copy of the corrected form, and a memo
explaining why the correction is needed.
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IRS Publication 15
Circular E, Employer’s Tax Guide, states that any federal income tax
withholding must be based on marital status and withholding
allowances. Withholding cannot be based solely on a fixed dollar amount or
percentage. In addition to the amount calculated on marital status and
withholding allowances, an employee may specify a dollar amount to be withheld.
The employee must submit a valid Form W-4 stating his or her marital
status, number of allowances, and any additional withholding requested.
Exemption from federal
income tax withholding is generally claimed when an employee had no income tax
liability in the prior year and expects none for the current year. Exempt
W-4s are valid for one calendar year and a new W-4 must be submitted by Feb. 16,
2016 to continue exempt status. If a new W-4 is not received, withholding is
based on single status with zero allowances or the last valid W-4 the agency
has for the employee. To claim exempt status, the employee completes only boxes 1, 2,
3, 4, and 7 and signs the form. If an exempt W-4 has a number on line 5
(allowances) or an amount on line 6 (additional amount), you may treat the form
as invalid and ask for another one. If a new W-4 is not received, withholding
is based on single with zero allowances or the last valid W-4 the agency has
for the employee.
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An employee who
certified to his or her employer on Form W-4 (Employee’s Withholding Allowance
Certificate) that the employee had no income tax liability for 2014 and
anticipated no income tax liability for 2015 was entitled to an exemption from
withholding for 2015. This exemption expires on Feb. 16, 2016, and must be
renewed if conditions remain the same. If you receive an exempt W-4 after Feb.
16, 2016, do not process a tax refund to the employee or submit a request
to OMES. They will not be processed. If you receive an exempt
W-4 after Feb. 16, 2016, the W-4 will take effect on the next pay cycle; per
IRS regulations it is not retroactive to the beginning of the year.
If you have received
correspondence from the IRS specifying the maximum number of withholding
allowances permitted (commonly referred to as a “lock-in-letter”) and the
employee submits a new W-4 claiming more allowances than the maximum allowed,
you must disregard this new W-4 until the IRS notifies you to withhold tax
based on the new W-4. However, the employee may furnish a new W-4 that
claims fewer allowances than the maximum allowed and the employer must withhold
tax based on that Form W-4.
In addition, the loss
of an exemption that affects withholding at the beginning of the next taxable
year, such as a divorce or the loss of a dependent should be reflected by an
amended certificate on or before Dec. 1. If the change occurs in December, the
new certificate must be furnished within 10 days of the day on which the change
occurs.
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With the calendar year end approaching, the collection of
any outstanding overpayments is especially important and must be conveyed to
employees who owe any monies back to the agency if they want to repay only the
net amount. Employee overpayments that
are collected in the next calendar year are to be repaid at the gross
overpayment amount in accordance with Internal Revenue Service regulations. If
an employee owes the agency, please be certain to let the employee know if the
amount is not paid in full by Dec. 31, 2015, the amount they owe will increase
to the gross amount.
In addition, employees who do not reimburse the
overpayment in the current year are subject to taxes on the overpaid amount and
later, in the year the overpayment is reimbursed, the employee may be entitled
to take a deduction or credit on their current year tax form. This may not be advantageous to the employee,
and they should seek advice from their tax accountant.
For example, John Deere was overpaid in September 2015 by
$1,000.00 regular wages. This was discovered in October and the agency
calculated what the correct payroll should have been. The net check difference
is $743.50. If John reimburses the
overpayment before the end of the year (by personal check, miscellaneous
deduction, or other reduction), he would pay $743.50 and his W-2 will correctly
reflect his pay reduced by the reimbursement.
If he reimburses the agency after year-end, he must pay $1,000, and his
2015 W-2 would include the $1,000 overpayment in taxable wages. In 2016 he may be entitled to take a
deduction or credit on his personal tax return for the reimbursement, which may
not be beneficial to him.
In accordance with 74 O.S. § 840-2.19, the agency must
send a notice to the employee within 10 days of identifying an
overpayment. The employee then has 30 days to respond to this
notification. Employees have several options for repaying overpaid payroll
amounts:
- reduction of annual leave (for the gross overpaid),
- reduction of current gross salary (for the gross overpaid during
the same calendar year) in a lump sum or installments over a term not to
exceed the term in which the overpayment(s) occurred,
- lump-sum cash repayment,
- miscellaneous payroll deduction (for the net overpaid during the
same calendar year) in a lump sum or installments over a term not to
exceed the term in which the overpayment(s) occurred,
- any combination of the above options.
For amounts paid back in subsequent years, the applicable
W-2, Corrected W-2, or W-2C for the year of the overpayment will only reflect a
change in the Social Security and Medicare wages and taxes. Since the employee received and had use of
the funds during the year of overpayment, the amount is taxable for federal and
state purposes. Federal and state
taxable wages or income taxes withheld will not be changed.
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As we approach the end
of the calendar year, be reminded that the payroll systems have been structured
to accommodate the reporting of non-cash, taxable fringe benefits. Of specific
concern to state employees, the following benefits should be reviewed to determine
if W-2 wage adjustments are necessary:
- Group term life insurance
- Employee use of state vehicles
- Maintenance, car and housing
allowances
- Additional non-cash benefits
Reporting of these, and
other, benefits is required by state and federal law, and it is the
responsibility of the individual agency to ensure compliance. All taxable
benefits can and should be run through the payroll system. In exception
cases, where taxable benefits cannot be run through the payroll system, any
taxes associated with the exception item will need to be sent to OMES in a
timely manner so the tax deposits can be made and the items posted to the
employee’s earnings record.
Under IRS rules, an
employer can choose to pay the employee’s share of taxes on group term life,
auto fringe, and other non-cash benefits. If the employer pays these taxes
without deducting them from the individual, those taxes must be included as
wages for federal, state, social security and Medicare wages (boxes 1, 3, 5,
and 16). This increase in the employee’s wages is also subject to employee
social security and Medicare taxes. This again increases the amount of
additional taxes the employer must pay. Again, these items can and should be
reported through the payroll system.
Please refer to the W-2
instructions and Publication 15A, Employer’s Supplemental Tax Guide for
additional information if needed. Also, please refer to OMES/HCM rules to
determine whether these payments are a valid pay plan for a particular agency.
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1099 INFORMATION
The 1099 Report is available for agencies to run in the PeopleSoft
Financials system any time. The path for this report is: Accounts Payable/Reports/Payments/Misc
Tax Information Report. Make sure
the dates include the whole year. This
report will reflect the 1099 data from PeopleSoft vouchers. Be advised that any
vendor with a 1099 Flag of “N” on
the report will Not receive a 1099
unless they are paid using a medical or legal account code. The final report should be processed by
agencies no later than Jan. 4, 2016, or possibly prior to Dec. 31, 2015 if the
agency will not be making any more 1099 reportable payments. All corrections
must be returned to Beth Brox at OMES by Jan.
8, 2016.
The 1099-MISC forms require an agency phone number to be printed
on the form. The program will search our agency database and insert the phone
number for the finance officer of the agency. If any phone number changes need
to be made, please notify Beth Brox by phone at (405) 522-1099 or by e-mail at Beth.Brox@omes.ok.gov no later than Jan. 8, 2016.
1099 File Format – Outside Agencies
Any agency needing to submit an additional file for 1099M
reporting should use the format listed in the link below. Instructions are
provided in a separate link as well as 1099M reportable object codes. Due to
the sensitive nature of the data, please hand-deliver a CD in the file format
to OMES, 5005 N. Lincoln Blvd., Suite 100 or you may send your file by a
password protected email to Beth.Brox@omes.ok.gov . During December, it is recommended that these
agencies submit a test file to have a Name and TIN Match done with the IRS.
Final information is due Jan. 8, 2016.
The file instructions and format can be found on the CAR
forms page of the OMES website:
-
1099 Detail File Format – Outside
Agencies
-
1099 Outside Agency
Cross-Reference
- 1099 Instructions – Detail
File Format
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MISCELLANEOUS
OMES HCM is working hard to keep you informed on updates as they are developing
new processes to accommodate the provisions of the ACA. Your continued
attention to this matter is appreciated.
All employees
and data on the ACA Eligibility Page must be up to date and accurate so that year-end processing and reporting can
begin. To ensure we are reporting correct data to the IRS, here are
a few reminders to help ensure that your agency is in compliance with the ACA:
- Agencies should have already run the ACA Eligibility Hours report to determine
if variable hour employees employed from 10/16/2014 through 10/15/2015 are
eligible for benefits in 2016. Any employees that were tested on this
report and do not have the ACA FT/Eligible box checked will need a new row on
the ACA Eligibility Page effective 1/1/2016.
- All current employees should have an initial 1/1/2015 effective dated row,
or a row effective their hire date if hired after 1/1/2015.
- Agencies should be running the ACA Monthly Hours Report 0668 each month to
determine eligibility for variable hour employees. Variable hour
employees will then need an updated ACA Eligibility row.
- Agencies should be ensuring that ACA reporting is accurate by running the
following queries on a regular basis:
- GO_HR_ACA_TERMS_NO_ACA_STATUS
- GO_HR_ACA_HIRE_NO_ACA_STATUS
- GO_PY_NOT_PAID_SINCE_PROMT
- GO_HR_ACA_EMPL_LIST
If you have any questions,
please contact OMES Human Capital Management at humanresources@omes.ok.gov or Kristin Elsenbeck, Human Resources Coordinator, kristin.elsenbeck@omes.ok.gov, 405-521-3947.
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ACCOUNTING
There are no accounting updates this month.
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