CAR Newsletter - November 2016

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller


New Procedures Due to Travel Reimbursement Legislation

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Three pieces of legislation go into effect Nov. 1: HB 2435, HB 2619 and HB 2704.   Until the Statewide Accounting Manual is updated, this article presents procedures that will be enforced for the new legislation. 

  • Travel claims and vouchers may now cover more than 30 days.  However, one claim cannot cover more than one fiscal year.
  • Rather than using map mileage for travel between cities and vicinity miles within a locality, the traveler must track actual business miles based on a recognized GPS system.  We recognize that for some travel GPS is not currently available and that occasionally minor detours are necessary.  GPS miles should be used when available.
  • When GPS is not available, actual miles per the odometer will suffice as long as no personal miles are included and every travel point is documented.
  • Travel claims must include a log of each location of travel and the associated miles. 
  • For agencies that have travelers that drive over the state but not to specific addresses, a description of the destination will suffice (e.g. ‘2 miles north of Ada’).
  • Attaching GPS printouts to travel claims will not be required.  Transaction Processing will be performing sample audits of mileage to compare reported miles to a GPS system for reasonableness.
  • Mileage reimbursement rate - OMES is still researching this issue and plans to make an announcement in December.  Any change in the mileage reimbursement rate will be effective Jan.1.  Agencies should expect some decrease in the mileage reimbursement rate.


Early Payment Discounts

In industry it is customary for vendors to offer early payment discounts. Some agencies may be taking advantage of these discounts on a sporadic basis, but there has been no statewide initiative to maximize savings from early payment discounts – until now. CAR, Central Purchasing, and Information Services are collaborating on an initiative to maximize early payment discounts. This initiative will result in some business practice changes that will affect all state agencies. Ensuring that each agency understands this initiative and has an opportunity to participate in the discussion is vital to its success.

OMES is offering three opportunities for interested agency personnel to learn about the plan, pose questions and voice concerns:

  •    Monday, Nov. 21          2:30 p.m.
    Concourse Theater – no registration necessary
  •    Tuesday, Nov. 29          9:30 a.m.
    Concourse Theater – no registration necessary
  •    Wednesday, Dec. 7        1 p.m.
    Webinar – watch for registration information

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Deadlines for November Payrolls

In planning your work for November, 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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Taxability of Gift Cards, Certificates, and Coupons

Giving gifts to employees is restricted and should only be given as part of a formal employee recognition program. See 74 O.S. § 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. 

In the HCM system, process 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.

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OMES Form 94P, Request for Overpayment Refund - Updated

The OMES Form 94P has been updated and is available on the OMES website. The updated form, revised 7/15/2016, contains new fields for reporting the Pathfinder retirement plan. The instructions have been updated as well.  Please be sure to use the new form on all overpayment refund requests.

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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 Thursday, Dec. 22, 2016. 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. 6, 2017. Any corrections submitted after Jan. 6 will require a corrected W-2.

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Deceased Employee Payroll Processing and Reporting

Agencies must complete Form DER, Deceased Employee Reporting when an employee dies and payments are made after the date of death. The form is on the OMES website under DCAR Forms. Complete all forms and send to OMES/DCAR payroll, attention Beth Brox or Jean Hayes no later than Friday, Jan. 6, 2017, so that 2016 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: 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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Outstanding Wages Beneficiary Designation Option

40 O.S. § 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.  74 O.S. § 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,

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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.

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

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Agency Address Verification

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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State HCM System Use of Addresses on W-2s

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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State HCM System Use of Addresses on 1095-C, ACA Reporting Form

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 must be updated or inactivated.

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PeopleSoft MailDrop for Year End Processing

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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State agency 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 2015 PeopleSoft W-2 forms should fit the 2016 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. Standard No. 9 or No. 10 envelopes with left windows should work. 

Sample printed forms of the PeopleSoft W-2 and 1099 MISC can be provided if requested. Please contact Jean Hayes at 405-522-6300 or, or Beth Brox at 405-522-1099 or

NOTE: This is not applicable for the Institutions of Higher Education due to the fact that they will be responsible for their own year-end reporting.

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Employee Benefits Department - PeopleSoft Deduction/Trailer Codes

For state EBD insurance purposes in calendar year 2017, 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,

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500 Misc File – Duplicate Warrant Number Edit

The 500 MISC Higher Ed Payroll Issue File includes a new edit check to ensure the warrant numbers are not being reused.  Vouchers with duplicate warrant numbers cannot be resaved in the event of a lost payment reissue or stat cancel replacement. If the file contains a warrant number already submitted, the following will display in the error report: Warrant number already loaded in the OCP_HE_PAY_ARCH table. Pay Claim:____

If you receive this error message, please review your file and resubmit with new, unused warrant numbers.

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1099 Information - Update on TIN Matching

The IRS offers TIN Matching through their e-Services Online Tools for tax professionals.  On the IRS website it states, TIN Matching is a pre-filing service only offered to payers and/or their authorized agents who submit any of six information returns (Forms 1099-B, 1099-K, INT, DIV, OID, PATR, or MISC). It enables validation of TIN and name combinations prior to submission of the information return.

  • Interactive TIN Matching enables payers to match up to 25 payee TIN and name combinations in real-time
  • Bulk TIN Matching enables the submission of a file with up to 100,000 TIN and name combinations. We send a response file to the users secure mailbox within 24 hours.

Payers must be listed on the IRS Payer Account File (PAF) database in order to participate. If your institution has not filed information returns with the IRS in one of the past two tax years, you are not eligible. A principal of the institution must complete a TIN Matching Application after registering. Refer to Pub 2108A - On-Line Taxpayer Identification Number (TIN) Matching Program for complete information.

If any college or university is having difficulty with their TIN Matching process, please let me know and I will be happy to help where and when I can.  You may contact me, Beth Brox, at 405-522-1099,

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Summary of Receipts and Disbursements

Changes are being made to the retention time for the temporary table related to the Summary of Receipts and Disbursements.  This change is necessary to enhance performance for users of the report and associated query. 

A temporary table is populated when the report is processed.  This temporary table is used to build the report and to allow users to run the associated query.  Data populated on the temporary table was available to query for 48 hours before being purged.  Due to the number of lines that the table was accumulating, the performance on the report and query was not acceptable.  To enhance performance, the retention time for data on the temporary table will be reduced to 60 minutes.   Query users who plan to utilize the OCP_GL0059_SMMRY_RCPTS_DISBS query to obtain CSV/XLS output must run the query before the data is purged from the temporary table.  If the query returns with no results, it is likely the data has already been purged, and you will need to reprocess the report and make sure the query runs within the 60 minute time frame.

It is anticipated that this enhancement will be in production no later than Nov. 11, 2016, with earlier migration possible.  If you have scheduled this report to run during the night with plans to extract the data the following day, you will need to modify the timing of your scheduled process.  

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New Public Queries – OCP_PO0356_RUNDATE and OCP_PO0356_RUNDATE_RANGEDT

Two new public queries are available to users who have purchase order and vendor inquiry accesses.

  • The OCP_PO0356_Rundate query lists encumbrances as of the date and time run. It differs from the Outstanding Orders report in that it provides project chartfields, the buyer, a description of the item or service encumbered and other additional information. Since it runs without prompts, this query can be scheduled to run on a recurrence basis.
  • The OCP_PO0356_RUNDATE_RANGEDT query provides the same data as the OCP_PO0356_RUNDATE query except that it prompts by PO date range.

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P-Card Reminder

Remember that the maximum payment amount in any single transaction is $5000 unless the purchase is one of the following:

  • Statewide contract;
  • Inter-agency payment;
  • Utility payment; or
  • A qualified professional service (under 18 O.S. 18 § 803)

The correct SW contract or other service type must be selected from the drop down list in the Category column on each P-Card transaction. The $5000 limit applies to multiple invoices or folios ‘batched’ by the vendor/merchant for their convenience. The $5000 limit also applies to any and all emergency purchases at this time.

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Welcome the New State Travel Manager

We would like to welcome Cindi Reisman as the new State Travel Manager. She will be assisting agencies with issues concerning airfare, hotels and local transportation through the state travel contract. She will also be an additional contact for p-card issues. Cindi can be reached at 405-522-4812 or

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

OMES has successfully submitted the required ACA reports for all state agencies for 2015.  In order for 2016 ACA reporting to be correct, agencies must ensure that the information for all employees is correct on the ACA Eligibility Page located within PeopleSoft HCM no later than Dec. 1, 2016.

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 2016 payrolls are confirmed.

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

  1. All active employees should have a current ACA Eligibility Page. Run the GO_HR_ACA_HIRE_NO_ACA_STATUS query to ensure your compliance.
    Employees regularly working 40 hours per week
    should have an effective dated row of 1/1/2015, or their hire date if hired after 1/1/2015.  The FT/ACA eligible checkbox should be marked, and medical offer date field should be complete.
    Employees working less than 40 hours per week
    , or variable hour employees should have an effective dated row on the first of the most recent stability date, or their hire date, whichever date is most recent
    Once you review the October Annual reports, any variable or part-time employees will need a new ACA Eligibility Page row, effective 01/01/2017.  If the employee has earned benefits, the medical offer date will be 01/01/2017.  If they did not earn benefits, leave this field blank.
    Do not mark the ACA/FT Eligible box for these employees.
    The Evaluation Date will be 10/16/2015 – 10/15/2016
    The Stability Date will be 01/01/2017 – 12/31/2017
  2. 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 month in which their insurance coverage will begin.
  3. 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.
  4. Employees who are not active on your agency’s payroll should be terminated in Job Data with the appropriate retroactive effective date.  Run the GO_PY_NOT_PAID_SINCE_PROMT query.  We suggest using the 1/1/2016 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.

Agencies will continue to run the ACA Monthly Hours Report 0668 each month, including October, to determine eligibility for part-time and variable hour employees.  Utilize the testing calendars found on the OMES ACA page for assistance with determining the Evaluation and Stability dates for these employees. 

For additional ACA resources visit the ACA page found here, that contains helpful information and resources.

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Volume 27, Number 5
Fiscal Year-2017
November 4, 2016

In This Issue ...


Payroll Law 2016

Nov. 16, 2016
Presented by Fred Pryor Seminars

Sheraton Downtown
1 N. Broadway Ave.
Oklahoma City, OK 73102

1-Day Seminar cost - $149
For groups of 5 or more - $139 each

For more information, please visit their website.

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The Complete Guide to Payroll Taxes and 1099 Issues

Presented by the Oklahoma Society of Certified Public Accountants (OSCPA)

Monday Nov. 14, 2016 - Tulsa
Tuesday Dec. 13, 2016 – Shawnee
Thursday Dec. 15, 2016 - Lawton

For more information, please visit: OSCPA website

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OKFMA Quarterly Meeting

The next quarterly meeting is Thursday, Dec. 8, 2016.  Seminars are provided free of charge.  To ensure an adequate number of refreshments are available, please register at:

Date:    Dec. 8, 2016
Time:   1:30 - 4 p.m.
Place:   Business Conference  Center Auditorium            
MetroTech Springlake Campus  
1900 Springlake Drive
Oklahoma City, OK

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State Comptroller:
Lynne Bajema, CPA

Deputy State Comptroller:
Steve Funck, CPA, CGFM

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

Agency Business Services:
Steven Hawkins, CGFM

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