CAR Newsletter - February 2016

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller

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Revised OMES Form EWC

Imaging paper files to electronic

The OMES Form EWC – Electronic Warrant (Payment) Cancellation has been revised and is effective immediately. The revisions include new language from the State Treasurer’s office and changes needed under the new Higher Education Payroll Program when canceling payroll EFT payments from the colleges and universities.

Also revised is the document “Instructions for Cancellation of Electronic Payments” providing guidance on completing the EWC form.

Both the revised form and instructions are available under the DCAR Forms link on the State Comptroller webpage. 


Updating Employee Bank Routing Numbers

Several state agencies are still receiving the bank routing number report, PARTICIPANT OLD/NEW ROUTING NUMBER, with employees that have not been updated in the state’s HCM system.

As a reminder, OST’s current ACH application automatically updates bank routing numbers based on the latest table of Federal Reserve Bank routing numbers.  This update allows the items to continue processing for payment. When an update is made, the report is generated listing the employee, the incorrect bank routing number and the correct bank routing number. The report is distributed to agencies to update employee banking information. These updates must be made so employee transactions will continue to process without interruption due to routing number changes.

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Employee IRS Form W-4

Agencies are reminded to review and ensure employees have valid forms on file for 2016. The exempt Form W-4, Employee’s Withholding Allowance Certificate, expires on Feb. 16, 2016, and employees must submit a new form to continue the exemption for 2016. If you receive an exempt W-4 after Feb. 16, 2016, do not process a tax refund to the employee or submit one to OMES for processing. The W-4 will take effect on the next pay cycle; it is not retroactive to the beginning of the year.  The PeopleSoft HCM query: GO_PY_TAX_EXEMPT_STATUS - Fed or State Tax Exemption can be run by agencies to see who currently is claiming an exemption from income tax withholding. The IRS has posted the 2016 W-4 form on the IRS website.

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Annual Withholding Tax Exemption Certification for Military Spouse

Agencies are reminded to review and ensure employees have a valid OTC Form OW-9-MSE on file for 2016. The form must be completed annually to continue the exemption for 2016. If a new exemption form has not been submitted for 2016, the employee’s withholding status must go back to the last valid IRS Form W-4 on file with the employer.  If you receive an exempt Form OW-9-MSE after processing a payroll, do not process a tax refund to the employee or submit one to OMES for processing. The new exemption form will take effect on the next pay cycle; it is not retroactive to the beginning of the year. 

As a reminder, a nonresident spouse of a nonresident service member may be exempt from Oklahoma income tax on income from services performed in Oklahoma. OTC Form OW-9-MSE must be completed and returned to the employer with the required documentation.  The instructions contains a list of requirements the employer must meet before the withholding exemption will be allowed. The form must be completed each year the exemption is to be claimed. 

This exemption will require an update to the employees' 'State Tax Data' in PeopleSoft.  The Special Tax Status will be changed to: "Maintain Taxable Gross; SWT zero unless specified in 'Additional Withholding' below." This does not affect the Federal Tax Data.  Federal withholding will still be calculated based on the IRS Form W-4 in effect. 

Although exempt from state income tax withholding, the income is still reportable on the W-2 as Oklahoma wages.  Employees with questions regarding this should contact their tax accountants.

The Oklahoma Tax Commission has additional information and a section of Frequently Asked Questions on its website. The form may be found by clicking here.

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Forms W-2 & W-2C

The following are terms frequently used for different types of W-2s based on when the form is completed. 

Original W-2: Form W-2 that was originally issued to an employee by Jan. 31. 

Reissued W-2: Original Form W-2 reissued to an employee due to the original form being lost, misplaced, not received, etc. Write ‘REISSUED STATEMENT” on the employee’s new copies. A reissued W-2 can be produced at any time because the data is not being changed. The form can include a “reissue date”.

Corrected W-2: Used to correct the original W-2 when an error has been discovered before OMES submits the file to the Social Security Administration (SSA). “CORRECTED” must be written on the employee’s new copies. The form can include a “corrected date”.

NOTE: 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 letter explaining why the correction is needed.

W-2C: Used to adjust the original W-2 (or corrected W-2) information when an error has been discovered after OMES has submitted the file to the SSA.

NOTE: W-2Cs must be submitted to OMES as soon as completed and will be filed with the SSA. Please provide an explanation of the changes from the original W-2.

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New Affordable Care Act (ACA) Reporting Requirement for 2015

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 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 was produced. This combined 1095-C form included information related to the employee across the multiple agencies. The agency on record as the primary agency as of 12/31 received 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.

In addition to the 1095-C form, state agency employees that enrolled in health coverage will receive a 1095-B form from their insurance carrier. The 1095-B form provides information about who was covered and the periods of coverage.

The IRS has posted a set of questions and answers that introduce the new Forms 1095-B and 1095-C. The questions and answers explain who should expect to receive the forms, how they can be used, and how to file personal tax returns with or without the forms. Please share this information with your employees.

For questions related to ACA reporting, please contact Kristen Elsenbeck, human resources coordinator: 405-521-3947;

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1099 M Corrections

All 1099 corrections for 2015 or for previous years need to be submitted to OMES and we will report the corrections to the IRS.  If you should have any 1099s that are returned by the vendor requiring changes, please issue a ‘corrected 1099’ to the vendor using the blank forms provided with the original 1099s or you may contact OMES to print one for you.  Send copies of the incorrect 1099 and the correct 1099 along with any documentation to support the change to OMES.  Please contact Beth Brox with any questions at 405-522-1099 or

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Dropping Off Approved Rush Voucher Payments

For agencies still submitting hardcopy vouchers and who have been approved for a rush payment, when delivering the voucher to OMES Central Accounting and Reporting-Transaction Processing at 5005 N. Lincoln Blvd., Suite 100; please take it to the receptionist inside the CAR office and tell her that it is a rush. This will usually be Norcetta who will let us know a rush payment has been delivered. Avoid just putting the voucher in the bucket for incoming documents since it may not be seen in time for the rush processing cut off.

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Use of Proper Forms

Please be sure to verify that the form versions of all OMES Forms being used by your agency are the latest ones. We normally notify agencies when there are changes to the forms, but some agencies occasionally continue to use the outdated forms. These are usually rejected since the revisions often relate to something new that is necessary for the form. To confirm you have the latest version of the financial related forms you should go to the above link where forms are available for review and printing.

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FRU Assumes the Post-Audit Duties for Agencies under the Alternate System for Settlement of Misc. Claims Program

The Financial Reporting Unit (FRU) of the Central Accounting and Reporting division of OMES is assuming the audit and reporting duties for those agencies participating in the Alternate System for Settlement of Miscellaneous Claims Program. This post-audit function was being performed by the Transaction Processing Department, but staff reductions have given us the opportunity to look at other resources within the division. FRU is preparing a schedule for the audits and should soon begin contacting the affected agencies to start scheduling the audits.

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Oklahoma State Tax Payments

Higher education institutions paying the Oklahoma Tax Commission for state withholding taxes beginning in calendar year 2016 must include both the Tax Commission’s “WTH” account number and the filing or pay period on the voucher. It is our recommendation that the account number and the filing or pay periods be submitted as the Invoice ID. If this is not feasible because of system limitations, then the information should be included in the Payment Message field and can be submitted on the Payee Record Layout in positions 301-378. Both the Invoice ID and Payment Message information will show on the Misc Inter/Intra Agency report.

Payments for other taxes paid to the Oklahoma Tax Commission should also include the account and filing or pay periods information. This would be prefixes such as STS, SLP, etc. It is not necessary to include the institution’s FEI number on the voucher.

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Reversal Payroll Fund Transfers for Higher Education Entities

With the change in Higher Education payroll processing, the proper accounting and reconciling for cancelled warrants becomes more important.  Because agencies must transfer the amount required for each payroll claim to the 78900 class-funding as it is processed, the ability to offset future PFT amounts for cancelled warrants is not available.  Therefore we created a process to allow for PFT reversals to return the funds from the cancelled warrant to the original funding source which is already in production.  Keep in mind that this is for cancelled warrants, not for warrants being reissued.

The PFT reversal process currently being used is being revised to ensure proper cash balances are maintained.  The change primarily relates to the account coding on the 78900 class-funding on the PFT reversal.  We are currently targeting March 1 for putting the new coding in the system.  The new requirements will be published by Feb. 12 on the CIO website utilized during the higher ed payroll processing change process.  The changes will also be covered in a webinar scheduled for Feb. 22.  Notification containing the webinar login will be distributed through govDELIVERY about two weeks prior to the webinar.  

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Volume 26, Number 8
Fiscal Year-2016
February 10, 2016

In This Issue ...


AGA Luncheons for 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.

  • Feb. 17 – Speaker: Alicia Wade, Valliance Bank
    Topic: The Future of Banking
  • Mar. 16 - Speaker: Brenda Bolander
    Topic: Retirement Planning
  • Apr. 27 - Speaker: Rebecca Goza
    Topic: Internal Audit

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State Comptroller:
Lynne Bajema, CPA

Deputy State Comptroller:
Steve Funck, CPA

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

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