CAR Newsletter - December 2017

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller


‘Vouchers from Remote’ Entities - Reporting Early Payment Discounts

As discussed in the August webinar, OMES will be gathering information to report early payment discounts taken by agencies and institutions of higher education.  Most agencies are indicating discounts taken within PeopleSoft, either at the PO level or the voucher level.  However, entities that use the "Vouchers from Remote" process must provide information on discounts taken another way.  These entities must submit a spreadsheet or file showing the voucher number and the amount of the discount taken.  Only list vouchers for which discounts were taken.  These entities should start tracking discounts beginning with January 2018 payments and report discounts taken for the first quarter of calendar year 2018, no later than April 30, 2018.  Spreadsheets may be e-mailed to


Deadlines for December Payrolls

In planning your work for December, it is important to remember that the state holidays for Christmas this year are Monday and Tuesday Dec. 25 and 26.  Additionally, the New Year’s Holiday is on Monday Jan. 1, 2018. December biweekly payroll for state agencies (“B” or “C” biweekly schedules) will be paid on Friday Dec. 8 and Friday Dec. 22. December monthly payrolls will be paid on the last working day of the month, Friday, Dec. 29.

With these dates in mind, agency staff should plan their work accordingly for the holiday deadlines: 

“B” and “C” BIWEEKLY: The biweekly payroll for “B” and “C” biweekly schedule agencies will be Fri., Dec. 22.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Fri., Dec. 15. 

MONTHLY: Monthly payrolls will be set to pay on Fri., Dec. 29.  Agencies should have these payrolls processed and paperwork forwarded to OMES by Wed., Dec. 20.

SPECIAL NOTE: The Friday Jan. 5, 2018, biweekly payroll should be processed and paperwork forwarded to OMES by Thursday Dec. 28.

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OMES Contact Information for Tax Year 2017 Reporting

Listed below is contact information for OMES personnel working on the IRS reporting project for tax year 2017. The fax number is 405-522-2186.

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Agency Payroll Corrections – Year-End Review

Agencies should review all employee corrections for the year to ensure they have been processed by OMES/CAR as requested. This includes cancellation of payroll warrants, overpayment refund requests, social security number changes, and any other requests that affect W-2 reporting.  For any requests identified as not yet processed, please contact Jean Hayes or Lisa Raihl for a status update.

Agencies need to review all outstanding employee overpayments and collect required amounts from employees. After collection, please submit OMES Form 94P as applicable. Agencies will be entitled to receive refunds for all forms submitted by Friday, Dec. 22, 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 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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Taxable Fringe Benefits

Any taxable fringe benefits not yet recorded and reported this year, must be included in December payroll. The payroll system has been structured to accommodate the reporting of non-cash, taxable fringe benefits. Of specific concern to state employees, the following benefits should be reviewed to determine if W-2 wage adjustments are necessary:

  • Employee use of state vehicles
  • Maintenance, car and housing allowances
  • Additional non-cash benefits

Reporting of these benefits is required by state and federal law, and it is the responsibility of the individual agency to ensure compliance. If the item is not run through the payroll system in the current year, the employer can deduct the taxes associated with the wage item on a following paycheck in the next year as a miscellaneous deduction.  The state is responsible for depositing the taxes. Any taxes associated with items not run through the payroll system will need to be sent to OMES in a timely manner so the tax deposits can be made and the items posted to the employee’s earnings record.

Please refer to the W-2 instructions and Publication 15A, Employer’s Supplemental Tax Guide, for additional information if needed. Also, refer to OMES Human Capital Management rules to determine whether these payments are a valid pay plan for a particular agency.

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Employee Overpayments Collected After Year End

The collection of any outstanding overpayments is especially important at year end and must be conveyed to employees who owe any monies back to the agency if they want to repay only the net amount.  Employee overpayments that are collected in the next calendar year are to be repaid at the gross overpayment amount in accordance with Internal Revenue Service regulations. If an employee owes the agency, please be certain to let the employee know if the amount is not paid in full by Dec. 31, 2017, the amount they owe will increase to the gross amount. 

In addition, employees who do not reimburse the overpayment in the current year are subject to taxes on the overpaid amount and later, in the year the overpayment is reimbursed, the employee may be entitled to take a deduction or credit on their current year tax form.  This may not be advantageous to the employee, and they should seek advice from their tax accountant.

For example, John Deere was overpaid in September 2017 by $1,000.00 regular wages. This was discovered in October and the agency calculated what the correct payroll should have been. The net check difference is $743.50.  If John reimburses the overpayment before the end of the year (by personal check, miscellaneous deduction, or other reduction), he would pay $743.50 and his W-2 will correctly reflect his pay reduced by the reimbursement.  If he reimburses the agency after year-end, he must pay $1,000, and his 2017 W-2 would include the $1,000 overpayment in taxable wages.  In 2018 he may be entitled to take a deduction or credit on his personal tax return for the reimbursement, which may not be beneficial to him. 

In accordance with 74 O.S. § 840-2.19, the agency must send a notice to the employee within 10 days of identifying an overpayment. The employee then has 30 days to respond to this notification. Employees have several options for repaying overpaid payroll amounts: 

  • reduction of annual leave (for the gross overpaid),
  • reduction of current gross salary (for the gross overpaid during the same calendar year) in a lump sum or installments over a term not to exceed the term in which the overpayment(s) occurred,
  • lump-sum cash repayment,
  • miscellaneous payroll deduction (for the net overpaid during the same calendar year) in a lump sum or installments over a term not to exceed the term in which the overpayment(s) occurred,
  • any combination of the above options. 

For amounts paid back in subsequent years, the applicable W-2, corrected W-2, or W-2C for the year of the overpayment will only reflect a change in Social Security and Medicare wages and taxes.  Since the employee received and had use of the funds during the year of overpayment, the amount is taxable for federal and state purposes.  Federal and state taxable wages or income taxes withheld will not be changed.

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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. If the address is not correct for the agency, it must 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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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 must 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 1095-C form.  If there is a value in the mailing address field that is not to be used on the 1095-C form, 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 advices sort, 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. The bottom 1/3 of the page will contain the 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

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

OMES will have W-2s, 1099s, and 1095 CDs ready for release on Jan. 16, 2018, beginning at 10 a.m. through Thursday Jan. 18, 2018, 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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Payroll – End of Calendar Year 2017

Dec. 22, 2017 – Last day refund of taxes due to overpayments can be returned to agencies (See above article).

Dec. 27, 2017 – Last day OMES will process payrolls for calendar year 2017. PeopleSoft payrolls must be delivered to OMES by 3 p.m. on this date.  Any payrolls received after this deadline may not process to pay timely. 

Dec. 28, 2017 – Backup withholding payments from agencies must be received by OMES (See article below).

Jan. 5, 2018 – Payroll warrant cancellations, OMES Form 94Ps, and earning adjustments for calendar year 2017 must be received by OMES no later than 5 p.m. Any 2017 payroll information received after this date will require the agency to complete a corrected W-2. 

Jan. 5, 2018 – Last day for state agency updates to employees' ACA Eligibility Page in order for the 1095-C forms to be correct. Changes to 2017 data after this date must be communicated to Kristin Elsenbeck, Human Resources Coordinator,, 405-521-3947, for accurate 2017 reporting.

Jan. 16 – Jan 18, 2018 – All forms are to be picked up on Jan. 16, 2018 beginning at 10 a.m. through Thursday Jan. 18, 2018 at 3 p.m. (see article above).

Jan. 25, 2018 - Last date to submit corrected W-2 and 1099 forms for file submission (See articles below).

Jan. 31, 2018 – Deadline for delivering forms to employees.

Feb. 15, 2018 – Form W-4 with exemption expires (See article below).

Feb. 23, 2018– Last date to submit corrected 1095-C forms for file submission (See article below).

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Backup Withholding

Agencies that have collected backup withholding on miscellaneous claims need to submit payment to be received by OMES prior to Dec. 28, 2017.  Please make interagency wires payable to the State Contribution Fund (Vendor 0000000467, ADDR # 002, LOC # 0002). After processing payment, please send details of the payment to Jean Hayes or Lisa Raihl at or

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Correcting W-2s

Corrected W-2 forms must be delivered to OMES by Jan. 25, 2018, in order for the corrections to be in the submission file.  The IRS has accelerated the requirements for reporting certain year-end information. The due date for submission of form W-2 information to the IRS is Jan. 31, 2018.

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.

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Federal Income Tax Withholding

IRS Publication 15 Circular E, Employer’s Tax Guide, states that any federal income tax withholding must be based on marital status and withholding allowances. Withholding cannot be based solely on a fixed dollar amount or percentage. In addition to the amount calculated on marital status and withholding allowances, an employee may specify a dollar amount to be withheld. The employee must submit a valid Form W-4 stating his or her marital status, number of allowances, and any additional withholding requested. 

Exemption from federal income tax withholding is generally claimed when an employee had no income tax liability in the prior year and expects none for the current year. Exempt W-4s are valid for one calendar year and a new W-4 must be submitted by Feb. 15, 2018, to continue exempt status. If a new W-4 is not received, withholding is based on single status with zero allowances or the last valid W-4 the agency has for the employee. To claim exempt status, the employee completes only boxes 1, 2, 3, 4, and 7 and signs the form. If an exempt W-4 has a number on line 5 (allowances) or an amount on line 6 (additional amount), you may treat the form as invalid and ask for another one. If a new W-4 is not received, withholding is based on single with zero allowances or the last valid W-4 the agency has for the employee.

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Employee’s Withholding Allowance Certificate (W-4) Information

An employee who certified to his or her employer on Form W-4 (Employee’s Withholding Allowance Certificate) that the employee had no income tax liability for 2016 and anticipated no income tax liability for 2017 was entitled to an exemption from withholding for 2017. This exemption expires on Feb. 15, 2018, and must be renewed if conditions remain the same. If you receive an exempt W-4 after Feb. 15, 2018, do not process a tax refund to the employee or submit a request to OMES. They will not be processed.  If you receive an exempt W-4 after Feb. 15, 2018, the W-4 will take effect on the next pay cycle; per IRS regulations it is not retroactive to the beginning of the year. 

If you have received correspondence from the IRS specifying the maximum number of withholding allowances permitted (commonly referred to as a “lock-in-letter”) and the employee submits a new W-4 claiming more allowances than the maximum allowed, you must disregard this new W-4 until the IRS notifies you to withhold tax based on the new W-4. However, the employee may furnish a new W-4 that claims fewer allowances than the maximum allowed and the employer must withhold tax based on that Form W-4. See Employee W-4 Lock-in Letters article below.

In addition, the loss of an exemption that affects withholding at the beginning of the next taxable year, such as a divorce or the loss of a dependent should be reflected by an amended certificate on or before Dec. 1. If the change occurs in December, the new certificate must be furnished within 10 days of the day on which the change occurs.

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Employee W-4 Lock-in Letters

When an agency receives Letter 2800C, WHC Lock-in Letter to Employer, from the Internal Revenue Service (IRS), the letter instructs employers to begin withholding federal income tax at a specific marital status and withholding allowance for a particular employee.   You must withhold tax as indicated in the lock-in letter by the date specified unless the IRS notifies you otherwise. This date is generally 60 days after the date of the lock-in letter. Once a lock-in rate is effective, an employer can’t decrease withholding unless the IRS approves it. If the employee no longer works for you, you don’t need to do anything. However, if the employee returns to work within 12 months, you should begin withholding income tax from the employee’s wages based on the withholding rate in the letter.

Within the HCM system, enter the lock-in letter information (marital status and withholding allowances) on the employee’s Federal Tax Data page. Under the Lock-in Details area, be sure to select the Letter Received box.

The IRS lock-in letter paperwork will include a copy of the letter to give to the employee. The letter will explain how the employee can provide additional information to help the IRS determine the appropriate number of withholding exemptions. The IRS will give the employee some time before the lock-in rate is effective to submit a new Form W-4 and a statement that supports the claims made on it. You must disregard any Form W-4 submitted by the employee that decreases the amount of withholding. The employee must submit for IRS approval any new Form W-4 and a statement that supports his or her request to decrease federal income tax withholding. The employee should send the Form W-4 and statement to the address on the lock-in letter. The IRS will notify you if they approve the employee’s request. However, if the employee submits a Form W-4 that claims fewer withholding allowances than the maximum number specified in the lock-in letter, you must increase withholding based on that Form W-4.

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2018 Rates & Maximums

Year 2017 rates are provided for comparison purposes.  View the Table.

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December Payroll Deadlines

In planning your work for December, it is important to remember that the state holidays for Christmas this year are Monday and Tuesday Dec. 25 and 26.  Additionally, the New Year Holiday is Monday Jan. 1, 2018. 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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ACA Reporting Reminders for 2017

Pursuant to Internal Revenue Code Section 6056 of the Patient Protection and Affordable Care Act (“PPACA”), as a large employer, we are required to file an informational return with the IRS related to the offer of health coverage to employees. Additionally, we must provide employees with a statement that includes the information we will be providing in our IRS filing. This “Employee Statement” is the IRS Form 1095-C which includes information about health insurance coverage offered to state employees, their spouse, and dependent(s).

For employees that have worked in multiple agencies during the year, only one 1095-C form will be produced. This combined 1095-C form includes information related to the employee across the multiple agencies. The agency on record as the primary agency as of 12/31 received the 1095-C to distribute.

NOTE: Only employees eligible for an offer of health coverage or those in a stability period with an offer of coverage will receive a 1095-C form for 2017. Not all employees will receive a 1095-C form.

The 1095-C forms will be provided to agencies on a CD.  It is important that agencies print these documents and provide a copy to your eligible employees.  The IRS mandates that this document be provided to employees by the end of January of the following year.

In addition to the 1095-C form, state agency employees that enrolled in health coverage will receive a 1095-B form from their insurance carrier. The 1095-B form provides information about who was covered and the periods of coverage.

For questions related to ACA reporting, please contact Kristin Elsenbeck, human resources coordinator: 405-521-6030;

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Correcting Form 1095-C

Corrections for Form 1095-C must be submitted to OMES/HCM Division by Feb. 23, 2018.  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.

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1099 Information

2017 – IRS TIN Matching

OMES will be TIN matching with the IRS all vendors who have received 1099 reportable payments for tax year 2017.  By doing this we hope to provide more correct information on the original 1099 that the vendor will receive since the time for reporting is more limited for 2017.  We will notify individual agencies of vendors that don’t match with the IRS, asking for them to provide the necessary correcting information.  Please be ready to respond promptly if/when you are notified.  Please contact Beth Brox at 405-522-1099 or by e-mail at if you have any questions.

2017 – 1099 Report

The year end 1099 Report is available for each agency to run in the PeopleSoft Financials system any time. The path for this report is:  Accounts Payable, Reports, Payments, Misc Tax Information Report.  Make sure the dates include 01/01/2017 – 12/31/2017.  This report will reflect the 1099 data from PeopleSoft vouchers. Be advised that any vendor with a 1099 Flag of “N” on the report will Not receive a 1099 unless they are paid using a medical or legal account code. If the vendor should be issued a 1099 please let OMES know so we can change the 1099 Flag to “Y.”  The final report should be processed by agencies no later than Jan. 3, 2018, or preferably by Dec. 30, 2017.  All corrections must be returned to Beth Brox at OMES by Jan. 5, 2018.

1099 File Format – Outside Agencies

Any agency needing to submit an additional file for 1099M reporting should use the format listed in the link below (CAR forms page). Instructions are provided in a separate link as well as 1099M reportable object codes. Due to the sensitive nature of the data, please submit your file by a password protected email to or hand-deliver a CD in the file format to OMES, 5005 N. Lincoln Blvd., Suite 100.  It is recommended that these agencies submit a test file by Dec. 15, 2015, to have a Name and TIN Match done with the IRS. Final information is due Jan. 5, 2018.

The file instructions and format can be found on the CAR forms page of the OMES website:

  • 1099 Detail File Format – Outside Agencies
  • 1099 Outside Agency Cross-Reference
  • 1099 Instructions – Detail File Format

2017 – IRS Tax Filing Deadline – Reminder

Tax reporting for 2017 will be at an accelerated pace due to new IRS regulations.  1099s and W2s will be distributed January 16 – 18, 2018.  Any corrections will be required to be returned by January 25, 2018 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 notify the IRS.  This will ensure our reporting is as accurate and complete as possible.

NOTE:  This does not apply to Higher Ed Institutions since they will be doing their own 1099 reporting for 2017.

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2018 Valid EFT Date Calendar

The 2018 Valid EFT Date Calendar has been released by the State Treasurer’s Office and can be found by clicking here. Please use the calendar to ensure that your EFT items process with the effective dates intended.

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Retirement Notice from the State Treasurer's Office

The State Treasurer’s office would like to announce Sherian Kerlin's retirement and replacement. Charles Hover will replace Sherian as the Director of Portfolio Accounting and Reporting.  Charles' contact information is or 405-522-9465.


Federal Mileage Reimbursement Rate Increases for CY 2018 – Limited to Certain Agencies

The Internal Revenue Service has announced an increase in the mileage reimbursement rate, effective January 1, 2018, to $0.545 per mile.  This is an increase from the $0.535 rate for 2017.  (See Internal Revenue newswire 2017-205, released 12-14-17)  The new rate is for travel incurred on and after January 1, 2018, not your 2017 travel reimbursement claims submitted after January 1st.

Please remember that OMES announced in the November 8, 2017 CAR Newsletter, Volume 28, No. 5, that 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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Click here to view the CY 2018 p-card cycle payment processing schedule.

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Volume 28, Number 6
Fiscal Year-2018
December 15, 2017

In This Issue ...


There are no training articles this month.

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State Comptroller:
Lynne Bajema, CPA

OMES Services CAR Accounting:
Jennie Pratt, CPA, CGFM

Agency Business Services/Deputy State Comptroller:
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