CAR Newsletter ~ January 2017

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller


Oklahoma Tax Commission Informational Notice: W2/W3 and 1099’s

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 if you receive the notice and have any additional questions.

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Forms W-2, 1095C, and 1099 Pick-up Instructions

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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Forms W-2 & W-2C Terminology

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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Correcting W-2s Forms

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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Correcting 1099-MISC Forms

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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Correcting 1095-C Forms

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 Tax Refunds

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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Reporting Requirements for Repayments of Prior Year Wage Amounts

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, or Jean Hayes at 405- 522-6300,

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Annual Withholding Tax Exemption Certification for Military Spouse

Agencies are reminded to review and ensure employees have a valid OTC Form OW-9-MSE on file for 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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Biweekly Payroll Conversion Procedure Reminder

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  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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Submission of OMES Form 94P Tidbits

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 M Corrections

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

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New Mileage Reimbursement Rate

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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OMES Form 19 Travel Voucher – Revised (12/16)

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 and in the Subject Line please include your agency number and the words Travel Form.

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There are no accounting articles this month.

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Volume 27, Number 7
Fiscal Year-2017
January 11, 2017

In This Issue ...


Payroll Law 2017

April 24, 2017 - Tulsa
April 25, 2017 – Oklahoma City

Presented by Fred Pryor Seminars

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

For more information, please visit their website.

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State Comptroller:
Lynne Bajema, CPA

Deputy State Comptroller:
Steve Funck, CPA, CGFM

Jennie Pratt, CPA, CGFM

Lisa Raihl, CPA

Transaction Processing:
Steve Wilson

Payroll Processing:
Elsa Kunnel

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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