TOP STORY
Agencies may receive correspondence from the federal
System of Award Management (SAM) regarding a potential offset due to debt owed
to the federal government. While the offset process has been in place for many years, this appears
to be a new general notification that is being sent to entities registered
with a DUNS number related to the State's federal employment number (FEI). We are trying to obtain more information from
TOP about any change in process and to ask for debt information from September. CAR receives a report monthly (usually after
the 10th) showing all offsets for the prior month. Those offsets are researched by CAR to assist
the agencies effected.
Agencies that do not get money that they are expecting
should notify Vivian Day. Vivian's contact
information is Vivian.day@omes.ok.gov
or 405-521-6164.
AGENCY NEWS
Due
to the renovation of the State Capitol, the building will be closed from
Friday, Oct. 13 until Monday, Oct. 23, to tenants and visitors. This will require the Office of the State
Treasurer (OST) to relocate services and to adopt the following alternate
procedures as reflected below.
October 11, 2017
Capitol
Cashier Window:
-
OST
Cashier window will be open for business on October 11, 2017 from 8:00am
– 12:00pm.
-
State
agency personnel can pick up warrants, bring deposits, and cash checks between
these hours.
-
State
agencies should not
drop deposits in the night depository box (located to the right of the cashier
window) after 12:00pm. Deposits that
cannot be brought to the Capitol before noon on October 11 may be taken to the Bancfirst
location below or held until October 12, 2017.
BancFirst
1111
N Lincoln Blvd
Oklahoma
City OK 73104
October 12, 2017 – October 20, 2017
Alternate
OST Deposit Drop Off and Warrant Pickup:
-
The OST Cashier will open for business
from 9:00
am – 11:30 am beginning on October 12, 2017 at:
Oklahoma Tax Commission
Connors Building First Floor
2501
N Lincoln Blvd
Oklahoma
City OK 73194
The
OST cashier will be located at window
6. Agencies will not have access to OTC through the tunnels. All
personnel should enter the main lobby
by the East doors.
-
The
OST Cashier window operating hours of 9:00am
– 11:30am will be strictly enforced
as we are in a borrowed space that is also needed to serve the public. We cannot accommodate early or late pickups or
drop offs.
-
Warrants
that are not picked up between these designated times will be held for pick up
the next business day.
-
State
agencies have the option to take any late deposits directly to the Bancfirst location,
listed below, for immediate handling.
BancFirst
1111 N Lincoln Blvd.
Oklahoma City, OK 73104
Preparation
of Deposits:
- Agencies
should continue to prepare their deposits as if they were bringing them to the
Cashier window at the State Capitol:
-
Cash
and check deposits will need to be in separate sealed (tamper evident) deposit
bags… do not combine.
-
Foreign
checks will need to be kept separate from cash/check deposits in a sealed
(tamper evident) deposit bag. These can
only be delivered to the OST temporary location at the Oklahoma Tax Commission
during operating hours (9:00am – 11:30am).
-
Agency
depository sheets should be left with the OST Cashier, during the designated time
window, and they will be handled by a member of OST.
-
Agencies
may order tamper evident deposits bags from:
Ashlea
Briggs, 405-218-4653
SVP
Treasury & Merchant Services, BancFirst
Warrant
verification:
Warrant verification procedures will
continued to be performed by OST personnel. Please contact Marcus Brown 405-522-4231 or Lakresha Ferguson 405-522-4225.
Limited
or No Service:
-
Check
Cashing: The
Cashier will not cash state issued warrants or state agency employee personal
checks during this time period (state issued or employee personal checks). Please contact OST for any time sensitive
requirements.
-
Change
Orders: The Cashier
will
not process change orders during this period. State agencies will need
to make adequate preparations for change prior to October 11, 2017.
-
Safekeeping: The Cashier will not be able to
release or accept any Safekeeping items during this period.
October 23, 2017
OST expects to return to the capitol
building on Monday the 23’rd, but would not be fully operational until all
systems have been moved and set up completed, this may delay daily operations. The
Cashier’s window will be open on the 23rd from 10:00am. The alternate
procedures mentioned above will be applicable to the processing on Monday (the
23’rd) but at the CAPITOL LOCATION and not the Tax Commission’s
location.
State
agencies should check the capitol restoration website at www.capitolrestore.ok.gov for updates on the Capitol closure
before stopping by the Capitol. If there is a delay in our return to the
Capitol building, please visit the State Treasurer’s home page at www.treasurer.ok.gov
for further instructions.
Please
direct any questions/concerns to:
Kiran
Nallayahgari 405-522-6860
Kiranmaye.Nallayahgari@treasurer.ok.gov
Deidra
Salim 405-521-3121
Deidra.Salim@treasurer.ok.gov
PAYROLL
In planning your work for November, it is important to remember
that Veterans Day is Friday, Nov. 10. Thanksgiving is recognized on
Thursday, Nov. 23, and Friday, Nov. 24, is also a state holiday. November
biweekly payroll for state agencies (“B” or “C” biweekly schedules) will be
paid on Thursday, Nov. 9, and Wednesday, Nov. 22. November monthly payrolls
will be paid on the last working day of the month, Thursday, 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. 9. Agencies should have these payrolls processed and
paperwork forwarded to OMES by Thursday, Nov. 2.
BIWEEKLY: “B” and “C” biweekly payrolls are set to pay on Thursday
Nov. 9. Agencies should have these payrolls processed and paperwork
forwarded to OMES by Thursday, Nov. 2.
The next biweekly pay date for “B” and “C” biweekly schedule
agencies will be Wednesday Nov. 22. Agencies should have these payrolls
processed and paperwork forwarded to OMES by Wednesday, Nov. 15.
MONTHLY: Monthly payrolls will be set to pay on Thursday, Nov.
30. Agencies should have these payrolls processed and paperwork forwarded
to OMES by Tuesday, Nov. 21.
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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
2017; $151,700) 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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When an
employee reimburses a payroll overpayment, please complete and submit the OMES
Form 94P as soon as the reimbursement is made. Timely submission helps
ensure corrections are reflected in the quarter in which they occurred for
proper reporting and also helps in the full recovery of OPERS 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, resulting in a loss to the agency. In addition, retirement
calculations may be incorrect if the overpayment is not reported timely.
Please do not provide copies of personal checks. The form
allows the agency to enter the amount reimbursed. 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.
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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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HIGHER EDUCATION ENTITIES
In planning your work for November, it is important to remember
that Veterans Day is Friday, Nov. 10. Thanksgiving is recognized on
Thursday, Nov. 23, and Friday, Nov. 24 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.
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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 in the
HECLM vendor file have not been TIN Matched in tax year 2017. You may contact Beth Brox at 405-522-1099 or
beth.brox@omes.ok.gov, with any questions you may have in regard
to TIN matching your vendors.
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GENERAL LEDGER
This report is designed to allow agencies to run an agency
specific Combining Trial Balance report similar to the CTB used by the
Financial Reporting Unit and State Auditor and Inspector’s Office. The report parameters include a number of
options on how the report can be run.
The navigation is General Ledger > General Reports > Cash Basis
Financial Statement.
The first selection is for the fiscal year and period. The fiscal year should be 4 digits (2017,
2018, etc). To include the balances
carried into the fiscal year the ‘from period’ must be period 0. To include the
entire year, the ‘to period’ would be period 12.
The Business Unit is your 5 digit agency number. After the Business Unit is selected, you
should tab out of the selection box to display the available class
fundings. If you enter the Business Unit
and click directly on the run box, the report will be blank.
The selection for report type allows for either a summarized
report or a detail report. If the report
is summarized, it will roll selected class fundings into a single statement. The revenue accounts will be at the detail
account level but the expenses will be at a rolled up level based on the first
3 digits of the account number. The
detail report will present a statement for each selected class funding. Revenues and expenses will be presented at
the detail account number.
Agencies may further clarify parameters to either include
only selected class fundings or exclude specific class fundings. Individual class fundings will display when
the business unit is added. The report
will return all class fundings unless you make specific selections. You may select all class fundings by checking
the select all box or select only the specific class fundings you are wanting. For instance, to run the report to include
all class fundings except the clearing account, you would ‘select all’, then
deselect the clearing account class funding.
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Agencies
are required to complete all transactions related to fiscal appropriations for
FY17 funding lines by the expiration/lapse date, generally November 27, 2017. Although the funds are still valid and
available through November 27th, due to the holidays, we are recommending that
agencies complete all transactions related to the lapsing funds, including
budget revisions, no later than November 10th.
The
following steps should be started immediately to ensure completion before the
lapse date:
- Run the LAPSED FUNDS REPORT – APPROPRIATED FUNDS. The navigation is:
General
Ledger > General Reports > Lapse Fund Adv Notice – Approp
- Reconcile Requisition and PO balances to zero
or positive amounts
- Process any necessary Change Orders
- Process any necessary Expenditure Corrections
- Process final payments for goods and services encumbered on FY17 funds
- Finalize Voucher, Requisition and PO funding
lines as appropriate
- Process Budget Revisions and Carryover Budgets through
OMES Budget Division
The
LAPSED FUNDS REPORT APPROPRIATED FUNDS report shows all appropriated funding
lines which will lapse within the next 60 days.
The report must be ran prior to the lapsing date. If any lines have negative Encumbrances or
Pre-Encumbrances on this report, these amounts need to be resolved. If you are unable to resolve the differences,
submit a case to the OMES Helpdesk. Be
sure to specify the particular
funding lines with negative balances.
Please run this report and begin working on it immediately as it could
take several days to resolve any cases.
This
report includes funding from years prior to FY17 that were carried over to
subsequent fiscal years which are also lapsing.
Those lines should also be review so that appropriate action can be taken
prior to the lapse date.
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1099 INFORMATION
Each agency should review their 1099
reportable transactions for the first three quarters of the calendar year 2017.
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 01/01/2017 through 09/30/2017.
As you review this report please
note that the IRS Name, TIN, 1099 address and 1099 Flag are our primary
concerns. 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. The amounts are listed
on the report so as you reconcile you can make sure that all payments are
accounted for.
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. 27, 2017. Your timely review and response to this
report will allow us time 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 OMES 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 2017 will be at an accelerated pace due to new
IRS regulations. After 1099s are distributed in January 2018
corrections will be required to be returned within a week so they can be entered
in the file which is due to be filed with the IRS by January 31, 2018. Any corrections needed after this date should
still be sent to OMES for us to report to the IRS. This will ensure our reporting is as accurate
and complete as possible.
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ACCOUNTING
The Government Services Administration (GSA) has posted revisions to the per diem rates we use for travel which are effective Oct. 1, 2017.
For Oklahoma, the
meals and incidental rates (our per diem) did not change for Oklahoma
City, however, Enid dropped out as a “high-rate” area and is now at the
Standard Rate.
The Oklahoma City lodging rate dropped, but the Standard Rate lodging increased. Click here to see how the rates have changed.
This
rate change is effective for travel occurring October 1, 2017 and
after, which is the start of the federal fiscal year (FY) 2018. These
new rates can be viewed or downloaded from the GSA website.
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P-CARD
FY17 invoices paid by p-card should be paid by the end of
October. Agencies still waiting on FY17 services to be billed should
contact the vendor to obtain those invoices as soon as possible to facilitate
October payment. Questions should be directed to pcard@omes.ok.gov.
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