CAR Newsletter - November 2017

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller


Deadlines for November Payrolls

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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Taxability of Gift Cards, Certificates, and Coupons

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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Refunds of Taxes for Overpayments to Employees (Form 94)

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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Deceased Employee Payroll Processing and Reporting

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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Outstanding Wages Beneficiary Designation Option

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, or Jean Hayes at 405-522-6300,

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W-2 Reporting of Employer-Sponsored Group Health Insurance

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, or Jean Hayes at 405-522-6300 or

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Agency Address Verification

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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State HCM System Use of Addresses on W-2s

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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State HCM System Use of Addresses on 1095-C, ACA Reporting Form

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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PeopleSoft MailDrop for Year End Processing

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, or Beth Brox at 405-522-1099 or

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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Employee Benefits Department - PeopleSoft Deduction/Trailer Codes

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, or Jean Hayes at 405-522-6300,

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Mileage Reimbursement Rate- No Change for CY 2018

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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Affordable Care Act (ACA) reminders from Human Capital Management (HCM)

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; Kristin Elsenbeck, human resources coordinator,, 405-521-6030, or Carrie Towery, human resources director,, 405-522-0264.

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There are no accounting articles this month.

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Volume 28, Number 5
Fiscal Year-2018
November 8, 2017

In This Issue ...


OKC American Payroll Association Monthly Lunch & Learn Chapter Meetings

OKC American Payroll Association
Monthly Lunch & Learn Chapter Meetings

2017 Celebration
Thursday, Nov. 16, 2017
11:30 a.m. to 1 p.m.

For more information, please visit their website.

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Form I-9 and E-Verify Webinars

U.S. Citizenship and Immigration Services

Form I-9: an overview of the Form I-9 process, including step by step instructions on how to complete each section, retention and storage.

E-Verify Overview:  an overview of the E-Verify Program, including how the program works, key features, how to enroll, employer responsibilities, program highlights, and a demonstration of the program.

E-Verify for Existing Users: a detailed overview of the E-Verify Program specifically for existing users. Topics include Form I-9, user roles, case alerts, how to handle a TNC, and common user mistakes.

For more information, please visit their website.

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AGA 2017 Fall Conference

The Oklahoma City Chapter of AGA will be hosting a fall seminar on Wednesday, Nov. 15th at the Will Rogers Theatre, 4322 N. Western Ave., OKC 73118.  Cost is $150 if reserved and paid by Nov. 1 and $200 after Nov. 1.  The training includes 8 NASBA approved CPE hours. Registration starts at 7:30 a.m. and the first session begins at 8:10.  The day ends at 5:00.  Lunch is provided.  

Space is limited.  For more information and payments by credit card, please send your contact information to Steven Hawkins at or

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Payroll Law 2017

Presented by Fred Pryor Seminars
Dec. 4, 2017 - Tulsa
Dec. 5, 2017 – Oklahoma City

For more information, please visit their website.

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State Comptroller:
Lynne Bajema, CPA

Deputy State Comptroller:
Steve Funck, CPA, CGFM

OMES Services CAR Accounting:
Jennie Pratt, CPA, CGFM

Agency Business Services:
Steve Funck, CPA, CGFM 

Financial Reporting Unit:
Matt Clarkson, CPA

Transaction Processing Manager:
Steve Wilson

Statewide Accounts Payable:
Courtney Cowart

Replacement Warrants:

Voucher Processing:

Payroll Transaction Processing:
Elsa Kunnel

Payroll Reporting:
Lisa Raihl, CPA

Purchase Cards and Travel (Online Booking) Assistance:
Linda Powell

Vendor Registration:
Victoria Baker

Vendor File Maintenance:

Vendor Remittance Updates:
Updates to remittance contact for vendor payment notification.

OMES Service Desk:
405-521-2444 or toll-free 866-521-2444