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O.S. 74 §840-3.1 authorizes agencies to establish
employee education and training programs with accredited Oklahoma institutions.
Paragraph D states that the employee
shall execute a promissory note that is reduced at a rate of $13.00 per
calendar day beginning the first day after graduation. If the employee leaves the employment of the
agency, the obligation will be considered due.
The requirement to execute a promissory note results in a taxable event
as the debt is forgiven. Agencies using
this authorization and establishing such a program must report any forgiveness
of the promissory note to the agency’s payroll department so that the amount
can be included on payroll as taxable wages and reported on the employee’s
W-2. This should be reported to payroll
on a regular monthly basis. If you have
any questions contact Lisa Raihl at lisa.raihl@omes.ok.gov.
STATE COMPTROLLER
Federal interagency transactions between state agencies
are reported in GAAP package Z. The disbursing agency is responsible for
determining whether the receiving agency is a transfer recipient vs. a provider
service. If the receiving agency is a transfer recipient, the disbursing
agency must confirm the status to the receiving agency so that the transaction
can be properly recorded and reported by both entities on GAAP package Z. Agreements between agencies in a transfer relationship must contain the
funding source, including the federal vs. state percentage.
In general any billings from OMES Information Services would be considered provider service type payments and not a transfer
since IS does not have any part in carrying out the federal program.
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OMES will be hosting a forum for federally funded agencies
to discuss issues surrounding the amount that may be charged to federal
programs for pension contributions. The
forum will offer an opportunity for agencies to discuss funding issues. It is important that senior leadership attend
this meeting. Space is limited, so
participation will be limited to two participants per agency.
Date: May 31,
2018
Time: 9 a.m.
Location: Concourse
Theater – Sequoyah Building
RSVP: Stephanie.Brown@omes.ok.gov
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OMES must determine the federal participation amount for
employees on the Pathfinder plan prior to the May 31 forum. Federally funded agencies who have made
contributions to the new defined contribution (Pathfinder) plan will receive an
e-mail requesting the federal participation rate for those contributions. A list of contributions will be attached to
the e-mail. This will be sent to the CFO
of each applicable agency. Please watch
for the e-mail and respond by May 25.
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PAYROLL
U.S.
Citizenship and Immigration Services is the
authoritative source for information on electronic employment eligibility
verification. The service's user-friendly website provides information about E-Verify
and Form I-9, Employment Eligibility
Verification, including
employee rights and employer responsibilities in the employment verification
process.
With the
mandatory use of E-Verify since Nov. 1, 2007, all state agencies must utilize
the system to verify the federal employment authorization status of all new
employees. Agencies on the state’s PeopleSoft HCM system, should run the query
GO_HR_AUDIT_EVERIFY frequently. The query will return a list of
employees who were hired or rehired after 11/01/2007 for which the
e-verify has not been completed.
For
institutions of higher education, internal processes should be in place to
identify those employees for which the e-verify process has not been completed.
E-Verify
and Form I-9 Webinars are available at: https://www.e-verify.gov/about-e-verify/e-verify-webinars
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As a reminder, agencies must submit payroll information to OMES by
the established deadlines. The deadlines are set for your
protection. Agencies failing to meet deadlines are putting their
employees at risk of not being paid on payday. The responsibility for
late payroll is on the agency if deadlines are not met by the agency.
OMES will notify agency directors when payroll is not submitted by 3 p.m. five
business days prior to payday.
Agencies must submit the following payroll documents to OMES
Transaction Processing:
-
The final Budget Check Report
-
The final Claim Document – signed
-
The CA GL Interface Trace File
Institutions of higher education must submit the following payroll
documents to OMES Transaction Processing:
-
The Validate PFT Funding Report
-
The Claim Document – signed
All documents must be received five business days prior to the
actual pay date to ensure adequate time for audit and processing. Once
OMES receives the documents, the reports will be reviewed and the payroll will
be released to be picked up by a process that sends the checks and direct
deposits to the Office of State Treasurer for further processing.
Payroll documents must be received by 3 p.m. in order for payroll
to be released to the OST file on that day. If the paperwork is not
received by 3 p.m., the payroll will be held until the paperwork is
received.
Payroll documents and correspondence regarding payroll should be submitted to the following group email address: payrolltransprocess@omes.ok.gov
NOTE: Remember that Monday, May 28 is Memorial Day, which impacts the payroll submission deadline.
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When entering a new employee’s name and social security number, or updating a current employee’s name, please verify the name and social
security number being entered is exactly as it appears on the employee’s social
security card. This is critical for reporting not only the W-2 wages at year end
but the Affordable Care Act requires health offer/coverage information.
If the name and SSN does not match the Social Security Administration records,
the employee’s wages may not be credited to their social security account.
Additionally, if the name and SSN do not match, the employee may not be
reported correctly for ACA purposes which could result in an IRS letter to the
employee for possible lack of health coverage or an IRS letter to the agency
for not offering coverage.
Beginning Sept. 8, 2007, the Social Security Administration
updated the social security card. The number holder’s name will always be
printed on two lines, with the last name printed directly below the first and
middle names. If you receive a prior version from an employee and are unsure,
please ask the employee to verify the first, middle, and last names.
Additionally, compound names do not need to be hyphenated. If an
employee provides a name with an apparent compound or multiple last names, ask
the employee which name is the beginning of the last name and which, if any, is
the middle name.
Please update the employee’s name in the HCM system as instructed
in the COR301 Part II manual beginning on page 42 (Navigation: Workforce
Administration > Personal Information > Modify a Person). You can
enter the name that the employee currently uses as their paycheck name if
desired so their paycheck will continue to have the same name as in the past
but their employee record and W-2 information will match their social security
card.
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Agencies need to review 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 OMES Form
20R and send to Transaction Processing so that a replacement warrant can be issued.
If a payroll warrant is listed and the employee is not entitled to
the funds, the issuing agency must notify OMES (62 O.S. § 34.80). Notification must include the employee name, warrant number, warrant date and
amount. The notification 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 Jean Hayes at 405-522-6300, jean.hayes@omes.ok.gov or Lisa
Raihl at 405-521-3258, lisa.raihl@omes.ok.gov to have this completed.
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Beginning in 2012, the IRS mandated Box 12 reporting of 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 Jean Hayes at
405-522-6300, jean.hayes@omes.ok.gov or Lisa
Raihl at 405-521-3258, lisa.raihl@omes.ok.gov.
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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. 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 vendor.form@omes.ok.gov. Forms
may also be faxed to the updated number 405-521-3663 Attn: Vendor File
Maintenance.
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ACCOUNTS PAYABLE
Please
remember the following:
-
Vendor Notary
When
sending the 20R form to a vendor for notarization, it’s best that the agency does
not send the second page [the form submission page] to the vendor. Vendors
are using the submission information and submitting the 20R directly to OMES.
This will delay the replacement process, as OMES will then send the form back
to the agency for the Approving Officer’s Signature.
-
Pg. 2 FORM SUBMISSION
By
E-Mail: OMESTPReplacement.Warrants@omes.ok.gov
By Address:
OMES - Transaction Processing
Attn: Warrant Replacement
5005 N. Lincoln Blvd,
Suite 100
Oklahoma City, OK 73105
-
Agency Requestor Name
Fill in the name of the individual responsible for requesting the 20R. OMES
will contact this individual regarding any questions or concerns about the
form. Most importantly, OMES-mailed
warrants will address the Attention section to the individual listed. If the
Requestor Name remains blank, it may
delay the warrant from arriving at the right office and right person.
-
Changing the Location or Address
If
the replacement warrant calls for a different location or address, please
include that in the Warrant Information section. As there is no space currently
for the address, the agency may write it in the margins.
As always,
if your agency has any questions, comments, or concerns; please feel free to
contact Warrant Replacements at OMESTPReplacement.Warrants@omes.ok.gov.
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PURCHASING
The maximum
life of any appropriation is two and one-half years (thirty months) under the
provision of Article V § 55,
of the Oklahoma Constitution. Every appropriation made by the Legislature
has a lapse date. Agencies cannot pay expenditures against their
appropriation after such lapse date. The 30-month lapse date for FY17
“non-fiscal” appropriations is Nov. 27, 2018.
If agencies
have unused FY17 appropriated money carried over to FY18 and plan to
spend it on FY18 expenditures, those funds must be encumbered before June 30,
2018 AND must be expended before Nov. 27, 2018.
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HUMAN CAPITAL MANAGEMENT (HCM)
The Office of Management and Enterprise Services has been
notified that the Group Accident Medical Expense product offered through
American Trustee will no longer be available through the State of Oklahoma
Voluntary Payroll Deduction (VPD) program. This policy will be terminated for
all state employees effective 6/1/2018.
The vendor, American Trustee, notified OMES that they will
not be sending termination notices to individual employees who are covered by
this plan.
Please ensure each of your employees with a general
deduction for ***American Trustee & A164*** with a Group Accident Medical
Expense product is notified that the payroll deduction will end after May 2018
payrolls are processed. Should the employee wish to cancel his/her policy prior
to the vendor’s stated termination effective date, he/she should contact the
vendor directly in addition to notifying the agency payroll department.
Should you or the plan participant have questions about this
notice, please William Allison, contact broker, at 405-482-7233.
If you have general questions about the VPD program, please
contact us at vpd@omes.ok.gov or
405-522-6970.
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ACCOUNTING
There are no accounting articles this month.
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