PAYROLL
State agencies may receive
either an email or letter from the Oklahoma Tax Commission regarding the
submission of W2 and 1099 information for tax year 2016. For agencies under the state’s FEIN for which OMES Central Accounting and Reporting prints the forms and/or receives the files, we will complete the required OTC W2 and 1099
filing. Agencies that print certain 1099s themselves and submit the IRS
filings, will also have to complete the OTC filing. Please contact Lisa
Raihl at 405-521-3258 or lisa.raihl@omes.ok.gov if you receive the notice and have any additional
questions.
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OMES will have W-2s, 1099s, and 1095s ready for release
on Tuesday Jan. 17, 2017, beginning at 10 a.m. through Thursday Jan. 19, 2017, at
3 p.m. Agencies will pick up the forms from our location at 5005 N
Lincoln Blvd., Suite 100. You may park in front of our building in
the visitor parking which faces Lincoln Boulevard. As you enter the building, you
will need to sign in at the Central Purchasing reception area. Once signed in,
a team member will direct you to the room where the forms will be distributed.
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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 when an original form is 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 Jan. 25, 2017. 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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Corrected W-2 forms must be delivered to OMES by Jan. 25, 2017, in
order for the corrections to be in the submission file. The IRS has
accelerated the requirements for reporting W-2 information. The new due date
for submission of Form W-2 information to the Social Security Administration is
Jan. 31, 2017.
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.
Any
correction needed after this date should still be sent to OMES as a W-2C for us
to notify the IRS. This will ensure reporting is as accurate and
complete as possible.
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Corrected 1099-MISC forms
must be delivered to OMES by Jan. 25, 2017, in order for the corrections to be
in the submission file. The IRS has
accelerated the requirements for reporting 1099-MISC information. Please send the original form, a copy of the
corrected form, and a memo explaining why the correction is needed. Any
corrections needed after this date should still be sent to OMES for us to
notify the IRS. This will ensure reporting is as accurate and
complete as possible.
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Corrections for Form 1095-C
must be submitted to OMES/HCM Division by Feb. 24, 2017. Please send the
original form, a copy of the corrected form, and a memo explaining why the
correction is needed. Please send corrections to the attention of: Kristin
Elsenbeck, Human Resources Coordinator, 405-521-6030. Any corrections needed after this date should still be sent to
OMES for us to notify the IRS. This will ensure reporting is as
accurate and complete as possible.
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Employee payroll tax
withholdings are not authorized to be refunded to an employee once withheld
from their payroll. Refunds will not be given for those employees who did not
submit a W-4 in time for payroll processing. All agencies should have a deadline
for employees to submit W-4 changes. Per IRS regulations, the effective date of
the new W-4 will be the beginning of the next pay cycle for the employee. When
the effective date entered is before the beginning of the next pay cycle, the
system will recalculate the taxes already withheld for a closed period, which
is not authorized by the IRS.
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Repayments from employees
made in the current year (2017) that are for overpayments of wages in a prior
year (2016 or earlier) must be repaid at the gross overpayment amount in
accordance with Internal Revenue Service regulations. A Corrected W-2 or a
W-2C, as applicable, is required to be completed and sent to OMES. Only Social
Security and Medicare wages and taxes are corrected on the Form W-2 or W-2C.
DO NOT correct Federal or
State taxable wages or income taxes. The employee received and had use of the
funds during the year of overpayment and as such, the amounts are taxable for
federal and state purposes. The employee may be entitled to either a deduction
or credit on their current year (2017) Form 1040. Please advise them to speak
to their tax accountant. Additional instructions for Form W-2 and Form W2-C are
available on the IRS website. For assistance, 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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Agencies are reminded to
review and ensure employees have a valid OTC Form OW-9-MSE on file for 2017.
The form must be completed annually to continue the exemption for 2017. If a
new exemption form has not been submitted for 2017, 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 contain 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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Pursuant to HB
1111, of the
1st session of
the 52nd Legislature,
2009, OMES Central Accounting and Reporting has established procedures for agencies converting to the biweekly
payroll schedule. Interested agencies
should contact the OMES HelpDesk to request information from CAR on the correct
procedures for the conversion. The
HelpDesk can be contacted at 405-521-2444 or HelpDesk@omes.ok.gov. As part of the pre-conversion process,
interested agencies must first present a financial plan to the director of OMES
and certify that sufficient funds are available within the agency’s existing
budget to make the conversion.
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When submitting the OMES
Form 94P, Overpayment Refund Request, please do not provide copies of personal
checks. The form allows the agency to enter the amount reimbursed which
indicates to OMES that the overpayment has indeed been paid. Additional
back up data is not required.
The form requires the State
EmplID be entered. This has been changed for the privacy and security of
the employee. Please do not submit with the social security number or any other
number.
Please complete and submit
Form 94P as soon as the employee has paid back the overpayment to the
agency. Timely submission helps ensure full recovery of retirement
amounts. If the retirement system is not aware of an overpayment and the
pending overpayment refund request, payouts to former employees may be
incorrect and result in a loss to the agency. In addition, retirement
calculations may be incorrect if the overpayment is not corrected timely.
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1099 INFORMATION
1099 M forms will be ready to pick up after 10 a.m.
on Tuesday, Jan. 17, along with the W-2s and other year end tax forms. Please note, ALL FORMS will be available at
our new location, 5005 N Lincoln Blvd,
Ste 100. Please review the 1099's you
receive and advise OMES of any changes which you determine necessary. A few blank
1099M forms will be included for you to make any necessary corrections and you
may make more copies of the blank form if necessary. If you have several corrections please
contact Beth Brox and we will be able to create corrected 1099s and
forward them to you. Please return as many changes as possible to OMES
prior to Jan. 25, 2017.
Please note the following procedures pursuant to such
changes in the 1099 documents:
- For missing
addresses or address changes, send us a copy of the 1099 which includes the
address you added or changed and include a notation as to the type of change.
- For name or
FEI/SSN changes, send us a copy of the original and the amended document so
that we have appropriate reference to the changes.
- For all
transaction changes, please send us appropriate documentation which explains
the nature of the amount changes.
-
Any changes that
need to be made after Jan. 25, 2017,
still need to be sent to OMES and we will forward the information to the IRS.
- In all instances, please make sure that your
documentation includes enough information for us to understand your changes,
the reasons for them and a contact person in case we still have questions.
-
To ensure security on Form 1099M we will truncate the SSN
and FEI numbers so only the last four digits are shown, ex. xxxxx1234.
-
In January,
before submitting our 1099 file to the IRS, we will TIN match the file with the
IRS e-Services system. Any vendors that
mismatch in this process must be corrected before we can submit our final file to the IRS on Jan. 31, 2017.
Questions or comments should be directed to Beth Brox at 405-522-1099 or Beth.Brox@omes.ok.gov.
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TRAVEL
In the December newsletter, OMES
announced the 2017 mileage reimbursement rate.
The new mileage rate of $.47 is considered equitable
but not excessive, in light of the cost of fuel and other mileage related
expenses in Oklahoma. OMES considered rates of surrounding states, fuel
and maintenance costs and other factors in setting the new rate. Executive branch state agencies are required
to use the new, lower rate. OMES highly
recommends that all agencies and political subdivisions take advantage of the
savings offered by using the lower rate.
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The travel voucher form is revised to require the Official
Duty Station address, to amend wording concerning points of travel, and to add
a Page Two to the Form 19. The new
second page should be used to provide detailed mileage information identifying
amounts being claimed based on GPS or odometer readings. The Page Two is not
required unless necessary to provide mileage information. Also provided are some Mileage Reimbursement
Guidelines with examples for reporting the mileage.
The form is effective immediately and is available on the OMES website by clicking on the Comptroller & Budget link then select DCAR Forms.
For any questions concerning use of the form or with
guidelines, please contact us via email at OMESTPVouchers@omes.ok.gov and in
the Subject Line please include your agency number and the words Travel Form.
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ACCOUNTING
There are no accounting articles this month.
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