PAYROLL
In planning your work for November, it is important to
remember that Veterans Day is Friday, Nov. 11. Thanksgiving is recognized
on Thursday, Nov. 24, and Friday, Nov. 25, is also a state holiday.
November biweekly payroll for state agencies (“B” or “C” biweekly schedules)
will be paid on Thursday, Nov. 10, and Wednesday, Nov. 23. November monthly
payrolls will be paid on the last working day of the month, Wednesday, Nov. 30.
With these dates in mind, agency staff should plan their
work accordingly for the deadlines:
SUPPLEMENTAL: PeopleSoft supplemental payrolls are set
to pay on Thursday Nov. 10. Agencies should have these payrolls processed
and paperwork forwarded to OMES by Thursday, Nov. 3.
BIWEEKLY: “B” and “C” biweekly payrolls are set to pay on
Thursday Nov. 10. Agencies should have these payrolls processed and
paperwork forwarded to OMES by Thursday, Nov. 3.
The next biweekly for “B” and “C” biweekly schedule agencies
will be Wednesday Nov. 23. Agencies should have these payrolls processed
and paperwork forwarded to OMES by Wednesday, Nov. 16.
MONTHLY: Monthly payrolls will be set to pay on Wednesday, Nov. 30.
Agencies should have these payrolls processed and paperwork forwarded to OMES
by Monday, Nov. 21.
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State agencies may receive a notification from the Oklahoma
Employment Security Commission regarding electronic submission of the
OES-3, Oklahoma Employers Quarterly Contribution Report. Effective Jan. 1,
2017, this report must be filed electronically. OMES is in compliance with this
requirement.
OMES submits the quarterly wage report for all state
agencies which use the Oracle/PeopleSoft HCM system and are under the state’s
FEIN. The report is currently submitted electronically using the EZ Tax Express
website. If you receive this notification and have any questions, please
contact Lisa Raihl at 405-521-3258, lisa.raihl@omes.ok.gov
or Jean Hayes at 405-522-6300, jean.hayes@omes.ok.gov.
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Authorized payments of
employee moving expenses under 74 O.S. § 500.51 et seq, either directly or
indirectly to an employee, may be taxable and/or reportable on the employee’s
W-2. Payments may be for qualified or non-qualified moving expense
reimbursements and require close review to ensure proper reporting is
completed.
Qualified moving expenses
paid or reimbursed by an employer can be treated as an excludable fringe
benefit to the employee. The exclusion only applies to the reimbursement of
moving expenses that the employee could deduct if he or she had paid or
incurred them without reimbursement. Please refer to IRS Publication 15-B, Employer’s
Tax Guide to Fringe Benefits, and IRS Publication 521, Moving Expenses, for
additional information. Qualified moving expense reimbursements paid directly
to the employee are reported on Form W-2 only in box 12 with code “P”.
Qualified moving expenses paid by an employer directly to a third party on
behalf of an employee (i.e. moving company) are not reportable on Form W-2.
Non-qualified moving
expense reimbursements, paid directly to an employee or indirectly on behalf of
an employee, are taxable to the employee and are included on Form W-2 in boxes
1, 3, 5, and 16 with the applicable taxes withheld and reported. No box 12 reporting
is required for non-qualified moving expense reimbursements.
A common error occurs when
employee moving expenses are paid through accounts payable without notifying
agency payroll personnel. Agency business practices must ensure communication
between the different departments. Good communication and procedures will allow
for the correct reporting of all moving expense amounts as required by the IRS.
When moving expenses are paid through accounts payable, please forward all
relevant information to agency payroll personnel for inclusion on the
employee’s W-2 at year end as needed. Payroll personnel will need to review the
information, and if taxable to the employee, process through payroll so that
taxes are calculated and withheld and the amounts are reported on the W-2.
Process the taxable amount
through payroll using the TRC Code of “MOVE,” which will show as earnings code
“MOV.” The amount will be included as taxable income and will be taxed on the
paycheck.
Amounts determined only to
be reportable on the employee’s W-2 in box 12, will need to be forwarded to
OMES, 5005 N. Lincoln Blvd., Suite 100, Oklahoma City, OK 73105-3324, Attn:
Lisa Raihl or Jean Hayes. Please include in the memo, the employee name,
employee ID number, and amount to be included on the W-2 in box 12 with code
“P”.
For questions or more
information, please contact Lisa Raihl at 405-521-3258 or lisa.raihl@omes.ok.gov, or Jean Hayes at 405-522-6300 or jean.hayes@omes.ok.gov.
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Title 47 O.S. § 156.1, as
amended, while forbidding the personal use of state-owned motor vehicles,
permits the use of the vehicles for the commuting of designated employees.
The personal use of an
employer-provided vehicle to commute constitutes a noncash taxable benefit to
the employee even when the use of the vehicle is for the benefit of the
employer. Excepted are qualified nonpersonal-use vehicles (any vehicle not
likely to be used more than minimally for personal use because of its design).
Please refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits,
for a list of vehicles generally included as qualified nonpersonal-use
vehicles.
The employee can choose to
have the value included as taxable income or pay the employer for personal use
rather than having it treated as wages. When treating the value as wages, the
imputed income is subject to FICA and income tax withholding. The valuation
method is dependent on the employee status. Control employees (elected
officials or employees whose compensation is at least as great as a federal
government employee at Executive Level V - for 2016; $150,200) cannot use the
commuting valuation rule ($1.50 rule). All other employees can have the value
computed using the Automobile Lease Valuation Rule, the Vehicle Cents-Per-Mile
Rule, or the Commuting Rule ($1.50 rule) subject to the requirements of each
rule.
All valuation methods are
included in IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits. The
most common method is the Commuting Rule ($1.50 rule) for valuing employee use
of an employer-provided vehicle. The employer must require the employee to use
the vehicle for a business purpose; it cannot be voluntary on the employee's
part. Personal use for commuting can be valued at $1.50 each way between home
and work. If more than one employee commutes in the vehicle, each rider has
imputed taxable income. The taxable amount, if not paid by the employee, must
be processed through payroll so that taxes are calculated and withheld and the
amounts are reported on the W-2.
Process the taxable amount
through payroll using the TRC Code of “CAR,” which will show as earnings code
“CAR.” The amount will be included as taxable income and will be taxed on the
paycheck.
We highly recommend the
vehicle usage be included in the employee’s payroll each pay period (for the
previous pay period, as needed). This will preclude a large sum being included
in the employee’s last pay of the calendar year which would result in a higher
than normal amount of taxes withheld. Additionally, up-to-date reporting of
vehicle usage will benefit the agency should the employee terminate during the
year.
For more questions, please
contact Lisa Raihl at 405-521-3258, lisa.raihl@omes.ok.gov or Jean Hayes at 405-522-6300, jean.hayes@omes.ok.gov.
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If for any reason an agency
receives a payroll warrant issued in error, the warrant should be returned as
soon as possible to OMES for cancellation. Payroll warrants must be accompanied
by an OMES Form PWC.
Warrants issued by the
State Treasurer which, for any cause, remain outstanding or unpaid for a period
of ninety (90) days shall be revoked and canceled under the provisions of 62
O.S. § 34.80. For warrants canceled by statute, the cash is transferred to the
canceled warrant fund. Agencies will not be refunded the value of the canceled
warrants.
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Agencies should be
reviewing the PS Financials Payroll 36 Month Statutory Cancellation Report on a
regular basis.
If there is a payroll
warrant listed and the employee is entitled to the funds, please complete the OMES Form 20R and send
to Transaction Processing. This will allow a replacement warrant to be
issued to provide the employees their due pay.
If there is a payroll
warrant listed and the employee is not entitled to the funds, the issuing
agency must notify OMES. (62 O.S. § 34.80.) Notification should include
the warrant number, warrant date, and must be signed by an agency approving
authority. Please send notification to Transaction Processing stating that the
warrant should not be reissued. In addition, the amounts must be removed from
the employee’s earning record. Please contact Lisa Raihl at 405-521-3258, lisa.raihl@omes.ok.gov or Jean Hayes at 405-522-6300, jean.hayes@omes.ok.gov.
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As a reminder, in the Oracle/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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The 1095-C form process in
the Oracle/PeopleSoft HCM system has
been set to load the employee’s mailing address just as the W-2 process does. 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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Please verify the correct agency address is being used on the Oracle/PeopleSoft HCM 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 updated before year end processing of tax forms. Please
contact the OMES Service Desk at (405) 521-2444 to have the agency’s address
updated in the HCM system.
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Oracle/PeopleSoft HCM system employee W-2s and 1095-C forms are
processed and printed in mail drop order. Please ensure this field is
properly used for employees. The forms will print in the same order as checks
and advices sort, which is based on each agency’s needs.
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ACCOUNTING
OMES is changing the format of the deduction
register that state agencies use to provide vendors with the names and
deduction amounts of participants. Effective Nov. 1, 2016, the Deductions Register (PAY001) will no longer include employees’ full social
security numbers. Instead, only the last four digits of the social security
number will be visible. This change is being made to better ensure confidential
employee information protected by statute is not inadvertently provided outside
an agency. The employee ID will continue to be provided on the deduction
register.
This notice also serves as a reminder to agency
staff responsible for processing the voluntary payroll deduction payments to
send the page(s) from the deduction register to the corresponding vendor to
ensure proper credit is applied to the employee’s account.
Please contact Kathy Haney-Crabb or Carrie
Towery if you have any questions about this process change. You may reach them at (405) 521-2177 or via
email at payroll.service@omes.ok.gov.
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Background
In April 2016, Senate Bill 1342 was passed by
the legislature and approved by the Governor.
This legislation is related to the Oklahoma “Taxpayer Transparency Act”
and requires OMES to report additional information on the state’s transparency
website related to Federal Revenues and Federal Expenditures including payment
details.
Also new Federal legislation was previously passed:
“In May 2014, President Obama signed the Digital Accountability and
Transparency Act of 2014 (DATA Act) into law. Once implemented, the DATA Act
will make Federal spending data more accessible, searchable, and reliable. It
will not only make it easier to understand how the Federal government spends
taxpayer dollars but will also serve as a tool for better oversight,
data-centric decision-making, and innovation both inside and outside of
government. The U.S. Department of the Treasury (Treasury) and the Office of
Management and Budget (OMB) are leading the government-wide implementation of
the DATA Act.”
It remains uncertain when states (and other
recipients) will be required to begin reporting this new data to meet the DATA
Act requirements. Federal agencies are
still working to develop and implement their processes that will gather and
compile data similar to how the American Recovery and Reinvestment Act (ARRA)
was carried out from 2009 through 2012. The
Federal agencies are working to improve the processes based on the
irreplaceable and valuable experience that was gained from the ARRA
project. While some areas remain
uncertain, some key data elements that are certain to be required are widely
known and easily obtainable.
Expected Plan
These two upcoming data reporting requirements
are similar. OMES is working to include
the DATA Act’s key data elements in the State of Oklahoma’s “Taxpayer
Transparency Act” implementation. By
doing this, the state’s transparency website will be able to present much more
meaningful information when the website updates go live starting in 2017. In addition, this will allow the state to
have a “head start” on meeting the DATA Act requirements once they are
finalized. Lastly, by combining these
two efforts, OMES expects the impact on agencies to be less when the DATA act
is implemented fully.
The key data elements are 12 to 20
common Federal award data elements (most of which are found on the “Grant Award
Notification” letter from the Federal government. These are items of which every recipient
agency already has knowledge but are not recorded in a system that can be
accessed by OMES. OMES plans to gather this
information using a “Federal Grant Award File”.
It is expected that this file should only need to be completed and submitted
once a year (unless revisions are made or new grant awards are received).
In addition, a separate “Federal Expenditure
Detail Reporting File” will be required to be submitted shortly after the end
of each quarter. This will include payment
detail information for vendors and sub-recipients. Payment details for assistance type payments
to individuals will ONLY be reported in total by Federal grant award. OMES is still studying how this can best be
gathered and reported. This will be a
main topic of discussion with our partner agencies that receive Federal dollars
in a meeting to be held in November. These
agencies will be notified of the day and time.
It is very important for every agency with Federal dollars to have a
qualified person attend the meeting to have input in the reporting details and
format of the “Federal Expenditure Detail Reporting File”.
OMES will begin accepting the “Federal Grant
Award File” and the “Federal Expenditure Detail Reporting File” later this
calendar year that will cover the first quarter activity from July 1 through
September 30 of this current fiscal year.
First Steps
Many details are still being developed, so
your agency’s input is needed to make this implementation the best it can be. If you are an agency that receives federal
funding, please make plans now to attend this important meeting during the
first part of November. The agencies with federal funding will be notified once the date and time are finalized.
If you have questions or comments before the
meeting in November, please contact Steve Funck, Deputy State Comptroller at
521-3231 or at Steve.Funck@omes.ok.gov.
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Some important process changes will be coming in order to
enable the State to take better advantage of payment terms offering discounts
for early payment. This will be
discussed at the OKFMA meeting on Thursday, October 13th. Watch for more information in future
newsletters.
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(Previously announced in a special news article released
last month)
The Government Services Administration (GSA) has
posted revisions to the per diem rates we use for travel which are effective Oct. 1, 2016. For Oklahoma, the meals and incidental rates (our per diem) did not
change, however, the lodging rate decreased in the two “high-rate” areas of
Oklahoma City and Enid. The Standard Rate lodging areas also increased. Please view the rates on the OMES website.
This rate change is
effective for travel occurring Oct. 1, 2016 and after, which is the start of
the federal fiscal year (FY) 2017. These new rates can be viewed or downloaded
at the GSA website.
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We had previously announced in CAR Newsletter Vol. 26,
Number 11, dated May 6, 2016, three pieces of legislation that affect travel reimbursements. They
are HB 2435, HB 2619, and HB 2704; and are effective Nov. 1, 2016.
-
HB 2435 has probably the least effect on travelers since it removes the 31
day limit for the period of time that may be included on a single claim and changes it to one
fiscal year. Although, most travelers are usually ready to file for
reimbursement as soon as the trip is over. This will also re-enforce the
split funding requirement for any travel crossing fiscal years. (74§500.3)
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HB 2619 establishes that OMES would publish a schedule of mileage reimbursement
rates that would replace the IRS mileage rate (but not to exceed the IRS
rate).(74§85.45l)
The mileage rates are being reviewed and any changes will be announced prior to November 1st.
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HB 2704 would also affect all mileage reimbursement travel since rather
than using the ODOT map mileage for travel between cities and vicinity
miles within a locality, the traveler must track actual business miles
based on a recognized Global Positioning System (GPS). Travelers
must document actual mileage to each location traveled and attach the GPS
Reading Sheet(s) to the travel voucher. (74§500.4)
We recognize that in some rural areas an actual GPS reading is not
available and that occasionally minor detours are necessary. Actual miles
per the odometer will suffice as long as no personal miles are included, every
travel point is documented, and the mileage is reasonably comparable to GPS
models used in the audits.
As OMES audits travel vouchers the mileage submitted will be
compared to available GPS models such as MapQuest or Google Maps for
reasonableness.
A revised Travel Form 19 has
been prepared to account for the change in the recording of mileage and for several
minor revisions to improve the form.
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A revised OMES Form 19 is available on the State Comptroller’s webpage
under Related Topics and DCAR Forms. The new version has a revised date of 9/16.
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We have reactivated
a modified version of the OMES Form MWC, for cancelling miscellaneous
warrants and limited replacements. We are also going back to an earlier version
of the OMES Form 20R, for replacing lost or destroyed warrants. The
modified 20R Form now has a selection for such reissues.
These forms had been combined with the Office of the State
Treasurer (OST) forms for Stop Payment
and Hard Cancellations into a single form (OST Stop Payment and Hard
Cancel Form). The purpose of the
combined form use was based on a planned implementation by the OST; however, due to a change in plans regarding the use of
PeopleSoft as the system of record for state warrants and stop payments the
merged form is no longer necessary.
Both of the OMES
Forms are available on the Comptroller’s webpage under DCAR Forms. The OST will
have its own forms for stop payment and hard cancel of non-PeopleSoft warrants available on its website.
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Agencies using voucher build to create payroll withholding
vouchers need only include the signed Form 15A as supporting documentation.
The deduction registers do not need to be included since they are available in
the HCM system.
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Transaction Processing established three group emails in
August 2016. After some lessons learned, we would like to request the
following:
-
OMESTPVouchers@omes.ok.gov
– This group email address was set up to receive batch slips and travel
voucher reimbursement inquires. It should also be used for general travel
questions.
o
Please include the agency number in the email subject
line to help us search when responding to subsequent questions.
o
Multiple batch slips other than P-Card and
Rush batches can be submitted in one email, but please submit them with one
pdf per batch slip. For example, if MO and TU batch slips are submitted at
the same time, there should be two pdf attachments in the email.
o
Submit the P-Card batch slips in an email separate
from the MO – FR batch slips and include the agency number and ‘P-Card’ in the
subject line.
-
OMESTPAccountsPayable@omes.ok.gov
– This group email address was set up to receive email inquiries about
PeopleSoft issues, unprocessed vouchers, and rush payments.
o
Please include the agency number in the email subject
line.
o
Since the Rush Payment requests are submitted
through this group email, also email the Rush batch slips to this group email
address after approval has been given. Please include the agency number and
‘SP’ in the subject line.
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OMESTPReplacement.Warrants@omes.ok.gov
– This group email address was set up to receive the Form 20R whenever a
warrant is not available. It is also used for stat cancel and lost warrant
replacement inquiries.
o
The OST Stop Pay and Hard Cancel Form should be
sent or faxed to OST per the information on the OST form. OST and OMES are
no longer sharing the form. (See the Warrant Actions - Forms Changed article.) Both the Stat Cancel and the Lost Replacement
affidavit will now be on the Form 20R.
o
Please include the agency number and indicate if
it is a Stat Cancel or Lost Warrant Replacement in the email subject line.
o
Please type the Vendor Name in the body of the
email.
o
Please include the Stop Payment request date in
the body of the email for lost warrant replacements.
Questions regarding this article can be submitted to OMESTPAccountsPayable@omes.ok.gov.
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1099 INFORMATION
Each agency should review their 1099
reportable transactions for the first three quarters of the calendar year 2016.
Agencies should run and print the 1099 Transaction Report in the PeopleSoft
system. The report path is:
Accounts Payable --> Reports
--> Payments --> Misc. Tax Information Report
Specify your agency number and
select the date range as 01/01/2016 through 09/30/2016.
As you review this report please
note the IRS Name, TIN and 1099 address are our primary concerns along with the
1099 Flag. All vendors that need to
receive a 1099 should have a ‘Y’ in the 1099 Flag column. If it shows an ‘N’
and the vendor needs a 1099 please indicate the change with your corrections.
If a 1099 Flag is 'N' there is no need to submit a change of address since the vendor
will not receive a 1099, otherwise please verify the address where the 1099
should be sent. Return the report and all available W-9s to document your changes
(even if it is ‘only’ an address change) to the Office of Management and
Enterprise Services on or before Friday,
Oct. 28, 2016. Your timely review
and response to this report will allow us to update the vendor file in order to
have the best information possible for the final report which will need to be
reviewed the first week of January 2017.
The preferred way of submitting
any corrections to our office is to print the report and write the corrections
on the report using a color of ink other than black. Please send comments and corrections by mail
or interagency mail, or if there are just a few corrections, they may be sent via
e-mail to beth.brox@omes.ok.gov or by fax to (405) 522-2186. Any other questions or comments regarding this
matter should be directed to Beth Brox at 522-1099.
Tax reporting for 2016 will be at an accelerated pace due to new
IRS regulations. After 1099s are distributed in January, 2017
corrections will be required to be returned within a week so they can be entered
in the file that is due to the IRS by Jan. 31, 2017. Any corrections needed after this date should
still be sent to OMES for us to notify the IRS.
This will ensure our reporting is as accurate and complete as possible.
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HIGHER EDUCATION ENTITIES
All pension trusts, colleges and universities, and other component
units (with a fiscal year of June 30) should be working with their auditors to
complete financial statements. The deadline for submitting these, and any
necessary financial reporting packages, to the OMES Financial Reporting Unit is
October 31. Failure to complete these statements in a timely manner jeopardizes
the State’s ability to complete the audit of the CAFR in time to meet
disclosure requirements set forth by bond issuers and the GFOA. A potential
risk of missing the deadline includes a downgraded bond rating for the State. All component units are expected to ensure
their auditors are aware of the deadline and complete their final reports in
time for you to provide it to OMES no later than October 31st.
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In past years OMES has TIN
Matched vendor names and Tax ID Numbers (TINs) through the IRS e-Services
website. As a reminder, beginning with
tax year 2016, each Higher Ed Institution is responsible for reporting their
own 1099 information to the IRS, therefore, as a whole, Higher Ed vendors have
not been TIN Matched in this tax year. To
avoid penalties for mismatched Name and TINs it is recommended that
institutions register and use the e-Services Online Tools offered by the IRS. The following is the link to the registration
page for this service.
e-Services
Online
You may contact Beth Brox,
405-522-1099, beth.brox@omes.ok.gov, with any questions you may have on registration or using the site.
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In planning
your work for November, it is important to remember that Veterans Day is Friday,
Nov. 11. Thanksgiving is recognized on Thursday, Nov. 24, and Friday,
Nov. 25 is also a state holiday. With these dates in mind, please adjust
your payroll processing schedules as needed. All payroll documents must be
received five (5) business days prior to the actual pay date to ensure adequate
time for audit and processing.
The 36 Month Statutory Cancellation and the AP Statutory
Cancellations reports have been updated to include the Higher Education stat
cancelled payroll warrants recorded in the 78900 class fund.
The 36 Month Statutory Cancellation report lists all stat
cancelled warrants during the last 36 months and includes Statutory
Cancellation Replacement and ‘Do Not Reissue’ information. If a statutory
cancelled payroll warrant needs to be replaced, please ensure the employee is
set up in the SETID 00000 vendor file. If the employee is not in the SETID
00000 file, submit the Additions/Changes for Employees/Board Member form as
follows:
- If the stat cancelled warrant accompanies Form 20R, please mail the form, warrant, and the Additions/Changes for
Employees/Board Member form, if applicable, to Joana Stenulson at OMES, 5005 N.
Lincoln Blvd, Suite 100, OKC, OK 73105.
- If the stat cancelled warrant is lost, please
email Form 20R and the Additions/Changes for Employees/Board Member form,
if applicable, to OMESTPReplacement.Warrants@omes.ok.gov
with the agency number and Stat Cancel Replacement Form without Warrant in the
subject line. Please include the employees name in the body of the email.
The Statutory Cancellation report lists statutory
cancellation warrants in a specified date range and should be run monthly to
identify stat cancelled warrants that should not be replaced per 62 O.S. § 34.80C. Warrants that should not be replaced must be reported to Steve Wilson
at steve.wilson@omes.ok.gov.
As a reminder, institutions can run the Month End
Outstanding Warrants Report to monitor aging warrants before they stat cancel.
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