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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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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Agencies need to review all outstanding employee overpayments and
collect required amounts from employees. After collection, please submit OMES
Form 94P as applicable. If a refund of taxes is due to the agency, the form must be submitted by Thursday, Dec. 21, 2017. 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 2017 W-2 for requests
submitted through Friday, Jan. 5, 2018. Any corrections submitted after Jan. 5
will require a corrected W-2.
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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. 5, 2018,
so that 2017 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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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 decendant’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, lisa.raihl@omes.ok.gov or Jean
Hayes at 405-522-6300, jean.hayes@omes.ok.gov
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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 lisa.raihl@omes.ok.gov, or Jean
Hayes at 405-522-6300 or jean.hayes@omes.ok.gov.
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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. Address corrections must be made 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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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 must be updated or
inactivated.
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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 remittance advices, 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 2016 PeopleSoft W-2 forms should fit the 2017
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 and the bottom 1/3
of the page will contain mailing addresses. Instructions will print on
the back of the form. 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 jean.hayes@omes.ok.gov, or Beth
Brox at 405-522-1099 or beth.brox@omes.ok.gov
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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For state EBD insurance purposes in calendar year 2018, 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, lisa.raihl@omes.ok.gov or Jean
Hayes at 405-522-6300, jean.hayes@omes.ok.gov.
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TRAVEL
The mileage rate of $0.47 as established by OMES will remain the same for 2018. Executive branch state agencies are required to continue using this rate.
OMES highly recommends that all agencies and political subdivisions take
advantage of the savings offered by using this rate.
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MISCELLANEOUS
Each year 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 state has elected the annual lookback period of 10/16
through 10/15 each year.
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 2017 payrolls
are confirmed.
In order for 2017 ACA reporting
to the IRS 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, 2017.
Please run the following queries
to ensure that your agency ACA data is correct:
- All active employees should have a current ACA
Eligibility Page. Run the GO_HR_ACA_HIRE_NO_ACA_STATUS query to
confirm.
- 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 as the termination effective date reflected on Job
Data. Run the GO_HR_ACA_TERMS_NO_ACA_STATUS query to confirm.
- 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 9/30/2017 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.
For information on the ACA eligibility page, reporting, or additional ACA resources please visit the ACA web
page.
If you have any questions, please
contact: OMES Human Capital Management at humanresources@omes.ok.gov; Kristin
Elsenbeck, human resources coordinator, kristin.elsenbeck@omes.ok.gov,
405-521-6030, or Carrie Towery, human resources director, carrie.towery@omes.ok.gov,
405-522-0264.
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ACCOUNTING
There are no accounting articles this month.
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