CAR Newsletter ~ May 2018

Newsletter Archive | Statewide Accounting Manual | Forms | State Comptroller


Employee Education Assistance – Promissory Note

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


Interagency Federal Pass-Through Relationships

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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Federally Funded Agencies Only – Forum on Pension Contribution Issues

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

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Federally Funded Agencies – Pathfinder Contributions

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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E-Verify – New Website

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:

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Payroll Processing and Submission Requirements – Reminder

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:

  1. The final Budget Check Report
  2. The final Claim Document – signed
  3. The CA GL Interface Trace File  

Institutions of higher education must submit the following payroll documents to OMES Transaction Processing:

  1. The Validate PFT Funding Report
  2. 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:

NOTE: Remember that Monday, May 28 is Memorial Day, which impacts the payroll submission deadline.

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Employee Name and Social Security Number Entries in HCM

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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Payroll Stat Cancelled Warrants Not Eligible for Reissue

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, or Lisa Raihl at 405-521-3258, to have this completed.

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W-2 Reporting of Employer-sponsored Group Health Insurance

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, or Lisa Raihl at 405-521-3258,

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Payments After Date of Employee Death

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 Forms may also be faxed to the updated number 405-521-3663 Attn: Vendor File Maintenance.

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OMES Form 20R - Points of Interest

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.

    By E-Mail:  

    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

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'Non-Fiscal' Appropriation Lapsing

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 Resources and Payroll Professionals

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 or 405-522-6970.

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There are no accounting articles this month.

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Volume 28, Number 11
Fiscal Year-2018
May 11, 2018

In This Issue ...


OKC Chapter American Payroll Association Monthly Lunch & Learn Chapter Meetings

FLSA Overview including Overpayments
May 18, 2018, 11:30 a.m.
309 NW 13th St, Oklahoma City, OK 73103 

For more information, please visit the OKC APA website

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Payroll Law 2018

Presented by Fred Pryor Seminars
Aug. 16, 2018 – Oklahoma City
Aug. 17, 2018 – Tulsa

1-Day Seminar cost - $149
For groups of 5 or more - $139 each

For more information, please visit their website

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Payroll Tax, Contract Labor and Fringe Benefit Tax Update

Sponsored by the Oklahoma Society of CPAs
Thursday, June 14, 2018

OSCPA Learning Center
1900 NW Expressway, Ste. 910
Oklahoma City, OK 73118-1898

For more information, please visit their website

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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