NEW Payroll Articles!!! CAR Newsletter ~ June 2017

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller


Posting Deposits to PeopleSoft

Statutes require that all monies be deposited into an agency’s clearing account within certain deadlines, most often on the same day as received.  Depositing money into a bank does not complete the process of depositing money into the agency’s clearing account; it only starts the process.  The act of posting the deposit into PeopleSoft is how the funds are credited to the agency’s clearing account.  All deposits should be posted to PeopleSoft within 24 hours of receipt.  The Treasurer’s office sweeps money to a state interest bearing account based on the information in PeopleSoft.  OST also calculates interest on any agency interest-bearing accounts based on the amount shown in PeopleSoft.  It is statewide accounting policy that deposits be posted to PeopleSoft without delay. 

Cash Controls on 700 Funds

All state funds including special accounts should be operating with a positive cash balance.  OMES announced in the March 2016 DCAR newsletter that cash controls would be turned on for 700 funds.  This was delayed, but is planned for this summer.  There are very few agencies who currently have a negative balance in a 700 fund.  All agencies should take immediate measures to ensure 700 accounts maintain a positive balance.

>> Back to Top


FY Combo Code Conversion Schedule

The schedule for running the FY Combo Code Conversion process is:

  • Evening of July 3, 2017 – Department of Human Services. This process must be run prior to running the July 14, 2017, payroll.
  • Evening of July 5, 2017 – All State Agencies having bi-weekly payrolls. This process must be run prior to running ‘B01’ or ‘C01’ payrolls which pay on July 21, 2017.
    (NOTE: This date includes agencies that run both monthly and bi-weekly payrolls. All supplemental and off-cycle payrolls must be completed and processed to GL by 3 p.m. on July 05.)  
  • Evenings of July 13 and 14, 2017 – All monthly anticipatory agencies. Do not begin processing M01 until July 17.

NOTE: As soon as all on- and off-cycle payroll processes are completed for the June pay period, please notify Enterprise Business Services by creating a service desk case asking for the case to be assigned to the HCM payroll group.  This will enable the EBS team to try and schedule the agency’s FY Combo Code Conversion Process earlier.  

Questions may be directed to Carol Barton at 405-522-4371 or

>> Back to Top

Changes in Fees for SoonerSave Deferred Savings Plan

The rate certified for the administrative cost which will be calculated in payrolls submitted for the fiscal year beginning July 1, 2017, has changed to $1.49 per month for any qualified participant. The equivalent amount for a bi-weekly pay period is $0.69. This change will be reflected in any payrolls submitted with a pay period code of M01 or B01.

>> Back to Top

New Fees for Pathfinder Retirement Plan

The Board of Trustees for OPERS has established an employer administrative fee for the Pathfinder retirement plan for reimbursement of administrative costs of the plan. The fee is effective beginning with the first payroll of fiscal year 2018 (B01 or M01 payrolls). The rate is $0.36 (thirty-six cents) per month for each participant. For agencies on biweekly payroll, the equivalent amount is $0.16 (sixteen cents) per pay period.

The HCM system is being programmed to automatically add the admin fee deduction when an employee is set up with a contribution amount and the effective date is July 1, 2017, or later. For employees in the Pathfinder Plan with an effective date prior to July 1, 2017, programming is being completed to insert a row for each employee to have the admin fee effective July 1, 2017. No manual updates will be required by agencies. HCM payroll reports will be updated to include the admin fee amount.

>> Back to Top

No Change in State Share of Oklahoma Public Employees Retirement System

The amount the State of Oklahoma pays for employee retirement will remain at 16.5% for FY 2018.

>> Back to Top

Change in Employer Contribution Rate for Justices and Judges Retirement System

The employer contribution rate for the Uniform Retirement System for Justices and Judges will increase effective July 1, 2017, from 19.0% to 20.5% beginning with any payrolls submitted with a pay period code on M01 or B01.

>> Back to Top

No Change in State Share of Oklahoma Law Enforcement Retirement System

The amount the State of Oklahoma pays for employee retirement will remain at 11.0% for FY 2018.

>> Back to Top

Change in Federal Matching Contribution for Teachers Retirement System

The Federal matching contribution rate for the Teachers Retirement System will increase effective July 1, 2018, from 7.70% to 7.80% beginning with any payrolls submitted with a pay period code on M01 or B01.  The federal matching contribution rate must be paid when salaries are paid by federal funds or externally sponsored agreements such as grants, contracts and cooperative agreements. Other TRS contribution rates remain the same for FY 2018.  For a complete list of rates, please see the TRS website.

>> Back to Top

Schedule of FY-2018 Pay Periods

Please distribute the FY-2018 pay date schedules found ScheduleOfFY18PayPeriods to payroll and human resource directors.  Questions on the codes may be directed to Lisa Raihl at 405-521-3258, or Beth Brox at 405-522-1099,

>> Back to Top

Military Differential Wage Payments – Taxation and Reporting

Military differential wage payments are payments made to an employee during the period the individual is serving on active duty for a period of more than 30 days and represents all or a portion of the wages an employee would have received from the employer if the individual was performing services for the employer.

Military differential pay is includible as wages for income tax purposes on Form W-2, but is excludable from Social Security and Medicare taxes (FICA). To correctly report military differential wage payments, Time Reporting Code ‘MILDF’ (earnings code ‘MLD’) must be used.

The military differential pay is also included in for OPERS, OLERS, and URSJJ retirement contributions and must be correctly coded in order for the information to be sent to the retirement systems correctly.

Please refer to Title 72 O.S. §48 and OAC 260:25-15-44, for additional information related to leave of absence due to military service.

>> Back to Top

Payments After Date of Employee Death

When earnings are payable after the death of an employee, the Payroll Processing for Death of an Employee Manual must be followed to ensure proper processing. The manual is available on the CIO website under the header HCM How to Documents. For payments to a spouse, dependents, guardians, or beneficiaries of a deceased employee that are made through AP, the recipient(s) must be set up in the vendor file. Processing Step 1 in the manual states the agency can request a Vendor ID using the ‘Vendor File Additions/Changes for Employees/Board Members’ form. This form has been modified and is no longer valid for this type of vendor setup. Please submit a completed IRS Form W-9 to Vendor Maintenance for payments to be made to a spouse, dependents, guardians, or beneficiaries of a deceased employee. Requests to add or update an employee Vendor ID made payable to the “Estate of …” an employee, may continue to be submitted using the Form Adding Employees CORE Vendor Database. All forms should be submitted to Vendor Maintenance via email to Forms may also be faxed to the updated number 405-521-3663 Attn: Vendor File Maintenance.

>> Back to Top

W-2 reporting of employer-sponsored group health insurance

Beginning in 2012, the IRS mandated Box 12 reporting or 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 (both employee and employer) made for health insurance must process through the payroll system. Failure to process through payroll will result in incorrect reporting on the W-2. 

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

>> Back to Top


REMINDER - Submission of the OMES Form MWC

Please be sure to use the OMES Form MWC Form for canceling miscellaneous warrants issued through OMES as warrants. DO NOT use the OST Stop Payment and Hard Cancel Form for this. Also, the OMES Form MWC should be sent directly to OMES and not be sent to the State Treasurer’s office.

In the CAR Newsletter, Volume 27, Number 4, dated Oct. 13, 2016; we announced the reactivation of the OMES Form MWC used to cancel miscellaneous warrants. However, we are still seeing cancelation requests on the OST Stop Payment and Hard Cancel Form (NOTE: The Hard Cancel form should only be used for ASA checks, manual checks, and others not issued on vouchers through OMES).

We have started rejecting warrant cancellations on the OST Hard Cancel form since requests must be submitted using the OMES Form MWC (Revised 9/16). Please be sure all appropriate staff in your agency are aware of this. Using the incorrect form is the basis for rejection of the request causing delays and even loss of funds if the warrant cancels by statute prior to being processed as a miscellaneous warrant cancellation. For warrants already statutorily canceled and where we subsequently receive a cancellation request, the state-canceled warrant would be flagged for no replacement.

>> Back to Top

Fiscal 2017 Year End Miscellaneous Claim Vouchers and Orders Processing

Following are the procedures for closing out the current fiscal year and then beginning the new fiscal year activity.

  • Miscellaneous Claim Voucher Processing
    Voucher batches received by 1 p.m. on Thursday, June 29, 2017, will be processed for payment by the close of business June 30. Vouchers received at OMES after 1 p.m. may be held and processed for payment in FY 2018. Vouchers can be created through 5 p.m. on Thursday, June 29, 2017, to accrue for 2017 expenditures in FY 2018. New vouchers should not be created on Friday, June 30, 2017, since it is reserved for fiscal year closing activities.  Agencies should resolve all voucher exceptions by the close of business on June 30, 2017. New vouchers may be created beginning on Monday, July 3, 2017.

  • EDT Vouchers Submission
    Agencies uploading voucher data via ‘EDT’ transmissions (vouchers from remote) should provide for sufficient internal lead time so that vouchers arrive at OMES by the 1 p.m. Thursday, June 29, 2017, deadline. Alternate System Agency vouchers transmitted after 12 p.m. on June 29, 2017, will be paid on Friday, June 30, 2017. ‘EDT’ transmissions should not be submitted on Friday, June 30, 2017, ‘EDT’ agencies should resolve all voucher exceptions by the close of business on June 30, 2017. New ‘EDT’ transmissions may be submitted beginning on Monday, July 3, 2017.

  • Manual Warrants
    The cutoff for issuing manual warrants is noon on Thursday, June 29, 2017, for non-alternate system agencies, and 5 p.m. for Alternate System Agencies. Agencies whose warrants are entered into the system by OMES must have the supporting paperwork to OMES by 5 p.m. on Thursday, June 29, 2017. Manual warrants should not be issued to payees after these deadlines since vouchers are not to be created June 30, 2017. Manual warrants may be issued and the associated voucher created beginning on Monday, July 3, 2017.

  • 340 Fund Expenditures
    Expenditure entries for 340 funds for June 29, 2017, and prior must be received by 9 a.m. on June 30, 2017, to be processed in FY 2017. Expenditure entries for 340 funds for June 30, 2017, must be received by 2 p.m. on June 30, 2017, to be processed in FY 2017.

WARNING! 2018 Expenses Due Early in July 2017

Payments for 2018 expenses may not be paid with 2017 budget. An example is July rent. These payments may not be paid until the agency receives its 2018 budget. Agencies should notify vendors and contractors of this end-of-year processing dilemma, which could delay payment beyond the due date.

>> Back to Top

Accounts Payable Year-End Preparations

Vouchers other than inter-unit billings and payroll withholding vouchers older than 30 days on June 30, 2017, that have not posted because of matching, document tolerance, budget checking or recycle exceptions will be deleted that day. To identify and correct vouchers prior to that date, please run the following reports beginning now: Match Exception, Document Tolerance Exception, Budget Checking Error and the Vouchers in Recycle Status. If a voucher is not corrected while it is an open accounts payable period, the accounting date on the voucher must be changed to the current date so it will budget check. Contact the if assistance is needed to resolve the errors identified on these reports. 

All payroll withholding vouchers in the staging tables should be built as of June 30, 2017. Additionally, to ensure expenditures and liabilities are reported properly and to facilitate the reconciliation processes, run the OCP_AP_UNPAID_VOUCHERS query to monitor unpaid vouchers. If vouchers have been created but will not be paid, please delete vouchers that have never posted and close vouchers that have posted.

>> Back to Top


Purchase Card

Cardholders encountering issues with Staples transactions should email the State Use Office directly at rather than contacting Staples.  The State Use Office employees will assist with a quick resolution for unauthorized charges to the P-card.

>> Back to Top

Fiscal Year End P-Card Deadline

The Works end-of-cycle deadline posted on the P-Card information website is the final deadline by which all transactions must be closed by the Works accountants at each agency.  The agency P-card administrator should determine an additional deadline for cardholder and approver sign offs in Works between the cycle deadline and the posted date to provide the Works accountants adequate time to finalize all transactions.  For example: The June cycle ends Friday, June 30, the final transactions available for editing Monday morning, July 3. The deadline posted on the P-card website is Thursday, July 6, at 5 p.m., so the deadline for the cardholders and approvers for this cycle might be 5 p.m. on Wednesday, July 5, or even noon on that day. You should consult both the calendar and the posted deadline date when determining your internal deadline schedule.  Most Works accountants will need at least one full day to finalize all transactions.

Remember for all new P-card AOs, the Supplier ID is 0000001101 and the Location is 0002, Type is PCAO only, Origin is EXC or PCD only.  You must also set the matching to NO MATCH in the header and the matching controls in the schedule detail must also be set to NO MATCH.  Amount only must be selected and Receiving Required should be set to Optional.

>> Back to Top

Volume 27, Number 12
Fiscal Year-2017
June 8, 2017

In This Issue ...


OKC American Payroll Association Monthly Lunch & Learn Chapter Meetings

OKC American Payroll Association

Monthly Lunch & Learn Chapter Meetings

U.S. Dept. of Labor – Wage & Hour Division

Thursday June 20, 2017

11:30 a.m. - 1 p.m.

For more information, please visit their website.

>> Back to Top

APA PayTrain Level I

Oklahoma City Community College

August 1 – September 7, 2017

For more information, please visit: OCCC website

>> Back to Top

Payroll Law 2017

Presented by Fred Pryor Seminars

August 11, 2017 – Oklahoma City

For more information, please visit their website.

>> Back to Top

The Complete Guide to Payroll Taxes and 1099 Issues

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

Friday, September 29, 2017 – Oklahoma City

For more information, please visit: OSCPA website

>> Back to Top

APA Preparing for Year End and 2018

Presented by American Payroll Association

Friday, October 27, 2017 - Tulsa

For more information, please visit:  APA website

>> Back to Top


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

Statewide Accounts Payable:
Courtney Cowart

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

Facebook Large

Like OklahomaOMES.

Twitter Large