DCAR Newsletter - December 2014

Newsletter Archive | Procedures Manual | Forms | State Comptroller

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Workers Comp Premium Important Change Effective Jan. 1, 2015

Calendar art

CompSource will be privatized effective Jan. 1, 2015, at which time, supplier ID 0000000390 will be deactivated. State agencies and OUHSC will use Supplier ID 0000385034 and Higher Ed institutions will use Supplier ID 0000767437 to make all payments to CompSource after Dec. 31, 2014. Agencies using the Vouchers from Remote Agency to transmit vouchers must populate column 208 of the Payee Record layout with E to pay electronically. State agencies using a purchase order to encumber workers compensation insurance will need to set up a purchase order with the new supplier ID for the balance of payments to be made after Dec. 31, 2014. Any questions can be directed to patricia.garcia@omes.ok.gov or steve.wilson@omes.ok.gov.

Closing of the Federal Government's Executive Departments and Agencies on Friday, Dec. 26, 2014

Dec 26

By executive order, the President of the United States has declared all executive branch departments and agencies of the federal government to be closed on Friday, Dec. 26, 2014. Certain offices or installations may remain open and staffed if for reasons of national security, defense or other public need. If there is a need to interact with the federal government on Dec. 26, please verify ahead of time if that particular office will be open.

Holly Berry


Payroll Processed Before a Reversal is Completed

Agencies are responsible for going to the timesheet and removing the time that processed back through payroll when a replacement check was processed before a reversal was completed. 

When a payroll check that had time pulled in from Time and Labor is reversed, the reversal creates offset payable time with status “Reversed” and an additional row in payable time with “Estimated” status when the check reversal is confirmed. The “Estimated” payable time will be pulled into payroll again when payroll is processed if not removed which may cause an overpayment. 

The recommended best practice is that a replacement check should not be issued until the reversal has been processed. This allows reversed time to either be processed through payroll again, or if needed, time can be corrected and then processed again. If time entered was invalid or incorrect and should not be pulled into payroll again, it should be corrected on the Timesheet and processed through Time Administration.

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Refunds of Taxes for Overpayments to Employees (Form 94P)

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. 19, 2014. 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 2014 W-2 for requests submitted through Wednesday, Jan. 7, 2015. 

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Deceased Employee Payroll Processing, 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 Lisa Raihl or Jean Hayes. Please have all forms completed and submitted no later than Wednesday Jan. 7, 2015, so that 2014 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).

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OMES Contact Information for Tax Year 2014 Reporting

Listed below is contact information for OMES personnel working on the IRS reporting project for tax year 2014. The fax number is (405) 522-2186.

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W-2, 1099 Pick-up Instructions

OMES will have W-2s and 1099s ready for release on Jan. 20, 2015.  Agencies may pick up the forms from OMES, Room 122, at the State Capitol Building beginning at 10 a.m.  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. 22, 2015, 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 2013 PeopleSoft W-2 forms should fit the 2014 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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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.

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

Please instruct employees to update their address if there has been a change during 2014.  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 MailDrop for Year End W-2 Processing

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 based on each agency’s needs.

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Payroll – End of Calendar Year 2014

Dec. 19, 2014 – Last day refund of taxes due to overpayments can be returned to agencies (See above article).

Dec. 29, 2014 – Last day OMES will process payrolls for calendar year 2014. 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, 2014 – Backup withholding payments from agencies must be received by OMES (See article below).

Jan. 7, 2015 – Payroll warrant cancellations, OMES Form 94Ps, and earning adjustments for calendar year 2014 must be received at OMES by 5 p.m. on Jan. 7, 2015. Any 2014 payroll information received after Jan. 7, 2015, will require the agency to complete a corrected W-2. 

Feb 2, 2015 – Deadline for delivering W-2 forms to employees. With Jan. 31, 2015 falling on a Saturday, forms must be delivered no later than the next business day, Feb. 2.

Feb. 17, 2015 – Form W-4 with exemption expires (See article below).

Feb. 20, 2015– Last date to submit corrected W-2 forms (See article below).

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Backup Withholding

Agencies that have collected backup withholding on miscellaneous claims need to submit payment to be received by OMES prior to Dec. 30, 2014.  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 2300 N Lincoln Blvd., Room 122, Oklahoma City, OK 73105-4801.

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2015 Rates & Maximums

Year 2014 rates are provided for comparison purposes. In order to view the table, select the link: http://go.usa.gov/6txR

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Correcting W-2s

Corrected W-2 forms must be delivered to OMES by Feb. 20, 2015.  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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Federal Income Tax Withholding

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. 17, 2015 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, 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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Employee’s Withholding Allowance Certificate (W-4)

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 2013 and anticipated no income tax liability for 2014 was entitled to an exemption from withholding for 2014. This exemption expires on Feb. 17, 2015, and must be renewed if conditions remain the same. If you receive an exempt W-4 after Feb. 17, 2015, 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. 17, 2015, 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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Employee Overpayments Collected After Year End

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, 2014, the amount they owe will increase to the gross amount. 

Once the overpayment is identified, the agency must send a notice to the employee within 10 days of the finding. The employee then has 30 days to respond to this notification. 

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) 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) 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. 

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. When an overpayment is paid back in a subsequent year, IRS rules state that the employee must pay back at the gross amount because they had use of the funds in the prior year and as such, they are taxable to that year. Additionally, federal and state wages and taxes cannot be reduced for prior years when repayments are done after the end of that calendar year. 

For example, John Deere was overpaid in September 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, this is the amount the employee owes the agency if paying back by personal check or miscellaneous deduction in the current year. If the employee does not pay this net amount back by Dec. 31, 2014, the employee owes the agency the full $1,000.00 gross overpayment. 

The applicable W-2, Corrected W-2, or W-2C 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 still taxable for federal and state purposes. The W-2 form will not correct federal or state taxable wages or income taxes. The employee may be entitled to either a deduction or credit on their current year Form 1040.  Please advise the employee to speak to their tax accountant.

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Taxable Fringe Benefits

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. The OMES is responsible for timely depositing of all payroll taxes. 

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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Holly Berry


2014 – 1099 Report

The 1099 Report is available for agencies to run in the PeopleSoft system any time. The path for this report in PeopleSoft Financials is:  Accounts Payable, Reports, Payments, Misc Tax Information Report.  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. 2, 2015, or possibly prior to Dec. 31 if the agency will not be making any more 1099 reportable payments. All corrections must be returned to Beth Brox at OMES by Jan. 7, 2015.

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. 7, 2015.

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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, 2300 N. Lincoln Blvd., Room 122 or you may send your file by a password protected email. Agencies can submit a test file at any time to have a Name and TIN Match done with the IRS. Final information is due Jan. 7, 2015.

The file instructions and format can be found on the DCAR 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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Holly Berry


Vendor Forms Update

The OMES Form Vend/Vendor Payee Form and Employee/Board Member Vendor Request forms have been updated. Please visit the Division of Central Accounting and Reporting Forms page to download the most recent version for your agency use. For questions regarding the revised forms or current vendor processes, please contact Victoria Baker, Vendor File Manager at Victoria.Baker@omes.ok.gov.

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Holly Berry


Change in Access to View Deposits, Corrections and Transfers

This guidance applies to deposits not related to invoice payments in Accounts Receivable.

Access to view deposits, transfers and corrections  through the General Ledger navigation is being discontinued.  The General Ledger journal entry view of deposits was not retrofit in the upgrade.  This navigation was for deposits, transfers and corrections as they were utilized prior to the AR Deposit implementation in January, 2010. 

There are four ways to see current direct journal deposit transactions in the system.

  1. Completed individual deposit entries, in their original form, should be viewed in Accounts Receivable using the navigation:  Accounts Receivable>Payments>Direct Journal Payments>Modify Accounting Entries.
  2. Once the deposit has been journal generated, the related summarized General Ledger Journal Entry could be viewed in General Ledger>Journals>Journal Entries>Create and Update Journal Entries.  These entries typically start with DJ.
  3. Using Ledger Inquiry you can drill down to the summarized and the detailed deposit.  This navigation is General Ledger>Review Financial Information>Ledger.
  4. Using Journal Inquiry you can inquire on the summarized entry or drill down to the detailed deposit.  This navigation is General Ledger>Review Financial Information>Journals.

To view deposit related transactions prior to the AR implementation (January 2010), you will use the basic General Ledger journal entry view found under General Ledger>Journals>Journal Entry>Create/Update Journal Entries.

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Mileage Reimbursement Rate Increases for 2015

The Internal Revenue Service has announced an increase in the mileage reimbursement rate, effective Jan. 1, 2015, to $0.575 per mile.  This is an increase from the $0.56 rate for 2014.  (See Internal Revenue Notice 2014-79, released 12-9-14)  The new rate is for travel incurred on and after Jan. 1, 2015, not your 2014 travel reimbursement claims submitted after Jan. 1.

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Object of Expenditure Code Revisions

The following codes are revised along with their descriptions.  For code 521110 we are removing the language to include contract leased/rented motor vehicle under this code.   Under code 521130 we have removed reference to “Public” Transportation from the title and added “Local” Transportation. We also removed from the title the reference to “Non-Mileage” since it is not necessary.  In the description we added “rental car” to the list and removed the reference for using code 521110 for rental car subject to the mileage rate.  All in-state rental car costs will be placed under this code, whether based on the Trip Optimizer or exempt rental cars subject to not exceeding the mileage rate (per 74 O.S. § 500.5).

These changes are effective immediately.


Reimbursement of mileage expense incurred with use of privately-owned automobile for in-state travel.

NOTE: For automobile mileage to/from in-state airport or other terminal in connection with out-of-state travel, use OEC 521210.


Reimbursement for local transportation expenses (e.g., railroad, airplane, bus, taxicab, limousine, rental car, etc.) incurred for travel to points within the state of Oklahoma. May also include local (vicinity) transportation charges incurred for in-state travel, except as noted below.

NOTE: For local transportation expenses (e.g., taxicab, limousine, rental car, local transit system, etc.) incurred in going to and coming from an in-state airport or other terminal in connection with out-of-state travel, use OEC 521240.

These changes will be reflected in the next scheduled update of the OMES Statewide Accounting Manual.

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Calendar Year 2015 P-Card Pay Cycle

The table that can be found in this link:http://go.usa.gov/6z3w represents the actual dates of action associated with the P-Card payments.  For example, it lists the date the p-card download from the Servicing Bank to the state system will occur each month, the date agencies can begin preparing their p-card vouchers and the submission deadline for the vouchers to be received at OMES each month.  

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New Voucher Rejection Procedures

The “attachment” feature available in the Oracle 9.2 upgrade will be used to link rejection notices to the voucher records. This will allow users to view vouchers and see the corresponding rejection notices.  For agencies under the Voucher Imaging Program we will be sending an email notification to the agency when there is a voucher rejection. There will be a hyperlink to access the voucher so you can see the rejection reason.  The rejection will be an attachment to the voucher (listed on the top right corner of the Invoice Information tab of the voucher).


Screenshot of the Attachment Feature

To make sure the notifications go to the proper person(s), each employee needs to update their PeopleSoft System Profile. Instructions to update the System Profile are as follows:

  1. Go to Main Menu My System Profile (located at the bottom of the Main Menu).
  2. Under the section labeled Workflow Attributes, make sure the “Email User” and “Worklist User” boxes are checked.
  3. Under the section labeled Email, verify if the email address listed is correct. If there is no email address, check the box for “Primary Email Account” and enter your email address.
  4. Click ‘Save’ at the bottom of the screen.

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Holly Berry

Volume 25, Number 6
Fiscal Year-2015
December 12, 2014

Christmas Tree

In This Issue ...


Certified Government Financial Manager Course

Due to popular demand, the Oklahoma City Chapter is once again offering the Certified Government Financial Manager courses here in Oklahoma City.  The courses will be offered March 4-11, 2015.  The training offers 48 hours of CPE and the cost will be $1,150 to $1,500 which makes it very affordable CPE.  For more information contact Riley Shaull at riley.shaull@trs.ok.gov

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The AGA CPE Luncheon on January 21, 2015 will feature a representative from Maximus Consulting that will present the effect of OMB's new 'super-circular' on the state.

2 hours CPE is $20.00 and lunch is included.  The luncheon is limited to the 1st 50 people who enroll.  To reserve your spot e-mail your name, phone number and e-mail address to agaokc@cox.net and state that you plan to attend the January 21st luncheon.

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Jennie Pratt, CPA, CGFM
(405) 521-6160 jennie.pratt@omes.ok.gov

General Ledger:
Dan Thomason, CPA
(405) 522-4992 dan.thomason@omes.ok.gov 

Lisa Raihl, CPA
(405) 521-3258 lisa.raihl@omes.ok.gov 

Transaction Processing:
Steve Wilson
(405) 521-4679

Payroll Processing:
Elsa Kunnel
(405) 521-6178

AP Manager:
Patricia Garcia, CPA, CGFM
(405) 522-6855

ISD Finance:
Cathy Menefee, CPA, CGFM
(405) 521-6584

Vendor Maintenance:
Victoria Baker
(405) 522-3093

OMES Service Desk:
(PeopleSoft questions)
(405) 521-2444

Financial Reporting Unit:
Matt Clarkson, CPA
(405) 521-2759

Steve Funck, CPA, CGFM
(405) 521-3231

Steve Funck, CPA, CGFM
(405) 521-3231