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 CompSource will be privatized
effective Jan. 1, 2015, at which time, supplier ID 0000000390 will be
deactivated. State agencies and OUHSC will use Supplier ID 0000385034 and
Higher Ed institutions will use Supplier ID 0000767437 to make all
payments to CompSource after Dec. 31, 2014. Agencies using the Vouchers
from Remote Agency to transmit vouchers must populate column 208 of the Payee
Record layout with E to pay electronically. State agencies using a purchase
order to encumber workers compensation insurance will need to set up a purchase
order with the new supplier ID for the balance of payments to be made after
Dec. 31, 2014. Any questions can be directed to patricia.garcia@omes.ok.gov or steve.wilson@omes.ok.gov.
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 By executive order, the President of the United
States has declared all executive branch departments and agencies of the federal government to be closed on Friday, Dec. 26, 2014. Certain offices or
installations may remain open and staffed if for reasons of national security,
defense or other public need. If there is a need to interact with the federal
government on Dec. 26, please verify ahead of time if that particular
office will be open.
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PAYROLL
Agencies are responsible for
going to the timesheet and removing the time that processed back through
payroll when a replacement check was processed before a reversal was
completed.
When a payroll check that had
time pulled in from Time and Labor is reversed, the reversal creates offset
payable time with status “Reversed” and an additional row in payable time with
“Estimated” status when the check reversal is confirmed. The “Estimated”
payable time will be pulled into payroll again when payroll is processed if not
removed which may cause an overpayment.
The recommended best practice
is that a replacement check should not be issued until the reversal has been
processed. This allows reversed time to either be processed through payroll
again, or if needed, time can be corrected and then processed again. If time
entered was invalid or incorrect and should not be pulled into payroll again,
it should be corrected on the Timesheet and processed through Time
Administration.
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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. Agencies will be
entitled to receive refunds for all forms submitted by Friday, Dec. 19, 2014.
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 2014 W-2 for requests submitted through Wednesday, Jan. 7,
2015.
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The OMES Form DER, Deceased
Employee Reporting, is required to be completed by agencies when an employee
dies and payments are made after the date of death. The form is on the OMES
website under DCAR Forms. Once completed, please send the form to OMES/DCAR
payroll, attention Lisa Raihl or Jean Hayes. Please have all forms completed
and submitted no later than Wednesday Jan. 7, 2015, so that 2014 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: Please
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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Listed below is contact
information for OMES personnel working on the IRS reporting project for tax
year 2014. The fax number is (405) 522-2186.
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OMES will have W-2s and 1099s
ready for release on Jan. 20, 2015. Agencies may pick up the forms from
OMES, Room 122, at the State Capitol Building beginning at 10 a.m. If an
express mail service or courier is to be used, please notify Beth Brox with the
necessary information. If the forms are not picked up by 3 p.m., Jan. 22,
2015, OMES will ship them at the agency’s expense.
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All 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 2013 PeopleSoft W-2
forms should fit the 2014 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 include instructions and a mailing
address. To view the 1099 forms and envelope information, go to the 1099 express
website. Click on View for 1099 Misc on blank letter size
paper. This is an example of the 1099 form and can be printed directly
from there for measuring your envelopes. The vendor also specifies that either
the standard No. 9 or No. 10 envelopes will work.
Sample printed forms of the
PeopleSoft W-2 and 1099 MISC can be provided if requested.
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Please verify the correct
agency address is being used in the HCM payroll system. The agency address can
be found on the Employee’s Earnings Statement. If the address is not correct
for the agency, this will need to be corrected before year end processing of
tax forms. Please contact the OMES Help Desk to have the agency’s address
updated in the payroll system.
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Please instruct employees to
update their address if there has been a change during 2014. As a
reminder, in the 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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PeopleSoft employee W-2s are
processed and printed in Mail Drop order. Please ensure this field is
properly used for employees. The W-2s will print in the same order as checks
and advices sort, which based on each agency’s needs.
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Dec. 19, 2014 – Last
day refund of taxes due to overpayments can be returned to agencies (See above
article).
Dec. 29, 2014 – Last
day OMES will process payrolls for calendar year 2014. 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. 30, 2014 –
Backup withholding payments from agencies must be received by OMES (See article
below).
Jan. 7, 2015 –
Payroll warrant cancellations, OMES Form 94Ps, and earning adjustments for
calendar year 2014 must be received at OMES by 5 p.m. on Jan. 7, 2015. Any 2014
payroll information received after Jan. 7, 2015, will require the agency to
complete a corrected W-2.
Feb 2, 2015 –
Deadline for delivering W-2 forms to employees. With Jan. 31, 2015 falling on a
Saturday, forms must be delivered no later than the next business day, Feb. 2.
Feb. 17, 2015 – Form
W-4 with exemption expires (See article below).
Feb. 20, 2015– Last
date to submit corrected W-2 forms (See article below).
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Agencies that have collected
backup withholding on miscellaneous claims need to submit payment to be
received by OMES prior to Dec. 30, 2014. Please make interagency wires
payable to the State Contribution Fund (Vendor 0000000467, ADDR # 002, LOC #
0002). After processing payment, please send detail of the payment to Lisa
Raihl or Jean Hayes at OMES/DCAR 2300 N Lincoln Blvd., Room 122, Oklahoma City,
OK 73105-4801.
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Year 2014 rates are provided
for comparison purposes. In order to view the table, select the link: http://go.usa.gov/6txR
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Corrected W-2 forms must be
delivered to OMES by Feb. 20, 2015. 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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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.
17, 2015 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, 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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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 2013 and anticipated no
income tax liability for 2014 was entitled to an exemption from withholding for
2014. This exemption expires on Feb. 17, 2015, and must be renewed if
conditions remain the same. If you receive an exempt W-4 after Feb. 17, 2015,
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. 17, 2015, 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.
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 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, 2014, the amount they owe will increase to the
gross amount.
Once the overpayment is
identified, the agency must send a notice to the employee within 10 days of the
finding. The employee then has 30 days to respond to this notification.
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) 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) 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.
With the calendar year end
approaching, the collection of any outstanding overpayments is especially
important and must be conveyed to employees who owe any monies back to the
agency. When an overpayment is paid back in a subsequent year, IRS rules state
that the employee must pay back at the gross amount because they had use of the
funds in the prior year and as such, they are taxable to that year.
Additionally, federal and state wages and taxes cannot be reduced for prior
years when repayments are done after the end of that calendar year.
For example, John Deere was
overpaid in September 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, this is the amount the employee owes the
agency if paying back by personal check or miscellaneous deduction in the
current year. If the employee does not pay this net amount back by Dec. 31,
2014, the employee owes the agency the full $1,000.00 gross overpayment.
The applicable W-2, Corrected
W-2, or W-2C will only reflect a change in the 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 still taxable for federal and state
purposes. The W-2 form will not correct federal or state taxable wages or
income taxes. The employee may be entitled to either a deduction or credit on
their current year Form 1040. Please advise the employee to speak to
their tax accountant.
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As we approach the end of the
calendar year, be reminded that the payroll systems have 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:
- Group term life insurance
- Employee use of state vehicles
- Maintenance, car and housing allowances
- Additional non-cash benefits
Reporting of these, and other,
benefits is required by state and federal law, and it is the responsibility of
the individual agency to ensure compliance. All taxable benefits can and should
be run through the payroll system. In exception cases, where taxable
benefits cannot be run through the payroll system, any taxes associated with
the exception item 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.
The OMES is responsible for timely depositing of all payroll taxes.
Under IRS rules, an employer
can choose to pay the employee’s share of taxes on group term life, auto
fringe, and other non-cash benefits. If the employer pays these taxes without
deducting them from the individual, those taxes must be included as wages for
federal, state, social security and Medicare wages (boxes 1, 3, 5, and 16).
This increase in the employee’s wages is also subject to employee social
security and Medicare taxes. This again increases the amount of additional
taxes the employer must pay. Again, these items can and should be reported
through the payroll system.
Please refer to the W-2
instructions and Publication 15A, Employer’s Supplemental Tax Guide for
additional information if needed. Also, please refer to OMES/HCM rules to
determine whether these payments are a valid pay plan for a particular agency.
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1099 INFORMATION
The 1099 Report is available
for agencies to run in the PeopleSoft system any time. The path for this report
in PeopleSoft Financials is: Accounts Payable, Reports, Payments, Misc
Tax Information Report. 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. The final report should be processed by
agencies no later than Jan. 2, 2015, or possibly prior to Dec. 31 if the agency
will not be making any more 1099 reportable payments. All corrections must be
returned to Beth Brox at OMES by Jan. 7, 2015.
The 1099-MISC forms require an
agency phone number to be printed on the form. The program will search our
agency database and insert the phone number for the finance officer of the
agency. If any phone number changes need to be made, please notify Beth Brox by
phone at (405) 522-1099 or by e-mail at beth.brox@omes.ok.gov no later than Jan. 7,
2015.
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Any agency needing to submit an
additional file for 1099M reporting should use the format listed in the link
below. Instructions are provided in a separate link as well as 1099M reportable
object codes. Due to the sensitive nature of the data, please hand-deliver a CD
in the file format to OMES, 2300 N. Lincoln Blvd., Room 122 or you may send
your file by a password protected email. Agencies can submit a test file at any
time to have a Name and TIN Match done with the IRS. Final information is due Jan.
7, 2015.
The file instructions and
format can be found on the DCAR forms page of the OMES website:
-
1099 Detail File Format –
Outside Agencies
-
1099 Outside Agency
Cross-Reference
-
1099 Instructions – Detail
File Format
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VENDOR MAINTENANCE
The OMES Form Vend/Vendor Payee
Form and Employee/Board Member Vendor Request forms have been updated. Please
visit the Division of Central Accounting and Reporting Forms page
to download the most recent version for your agency use. For questions
regarding the revised forms or current vendor processes, please contact
Victoria Baker, Vendor File Manager at Victoria.Baker@omes.ok.gov.
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ACCOUNTING
This guidance applies to
deposits not related to invoice payments in Accounts Receivable.
Access to view deposits,
transfers and corrections through the General Ledger navigation is being
discontinued. The General Ledger journal entry view of deposits was not
retrofit in the upgrade. This navigation was for deposits, transfers and
corrections as they were utilized prior to the AR Deposit implementation in
January, 2010.
There are four ways to see
current direct journal deposit transactions in the system.
- Completed individual
deposit entries, in their original form, should be viewed in Accounts
Receivable using the navigation: Accounts
Receivable>Payments>Direct Journal Payments>Modify Accounting Entries.
-
Once the deposit has
been journal generated, the related summarized General Ledger Journal Entry
could be viewed in General Ledger>Journals>Journal Entries>Create and
Update Journal Entries. These entries typically start with DJ.
-
Using Ledger Inquiry
you can drill down to the summarized and the detailed deposit. This
navigation is General Ledger>Review Financial Information>Ledger.
- Using Journal Inquiry
you can inquire on the summarized entry or drill down to the detailed
deposit. This navigation is General Ledger>Review Financial
Information>Journals.
To view deposit related
transactions prior to the AR implementation (January 2010), you will use the
basic General Ledger journal entry view found under General
Ledger>Journals>Journal Entry>Create/Update Journal Entries.
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The Internal Revenue Service
has announced an increase in the mileage reimbursement rate, effective Jan.
1, 2015, to $0.575 per mile. This is an increase from the $0.56 rate for
2014. (See Internal Revenue Notice 2014-79, released 12-9-14) The
new rate is for travel incurred on and after Jan. 1, 2015, not your 2014
travel reimbursement claims submitted after Jan. 1.
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The following codes are revised
along with their descriptions. For code 521110 we are removing the
language to include contract leased/rented motor vehicle under this code.
Under code 521130 we have removed reference to “Public”
Transportation from the title and added “Local” Transportation. We also removed
from the title the reference to “Non-Mileage” since it is not necessary.
In the description we added “rental car” to the list and removed the reference
for using code 521110 for rental car subject to the mileage rate. All
in-state rental car costs will be placed under this code, whether based on the
Trip Optimizer or exempt rental cars subject to not exceeding the mileage rate
(per 74 O.S. § 500.5).
These changes are effective
immediately.
521110
IN-STATE MILEAGE – MOTOR VEHICLE
Reimbursement of mileage
expense incurred with use of privately-owned automobile for in-state travel.
NOTE: For automobile mileage
to/from in-state airport or other terminal in connection with out-of-state
travel, use OEC 521210.
521130
IN-STATE LOCAL TRANSPORTATION CHARGES
Reimbursement for local transportation
expenses (e.g., railroad, airplane, bus, taxicab, limousine, rental car, etc.)
incurred for travel to points within the state of Oklahoma. May also include
local (vicinity) transportation charges incurred for in-state travel, except as
noted below.
NOTE: For local transportation
expenses (e.g., taxicab, limousine, rental car, local transit system, etc.)
incurred in going to and coming from an in-state airport or other terminal in
connection with out-of-state travel, use OEC 521240.
These changes will be reflected
in the next scheduled update of the OMES Statewide Accounting Manual.
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The table that can be found in
this link:http://go.usa.gov/6z3w
represents the actual dates of action associated with the P-Card
payments. For example, it lists the date the p-card download from the
Servicing Bank to the state system will occur each month, the date agencies can
begin preparing their p-card vouchers and the submission deadline for the
vouchers to be received at OMES each month.
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The “attachment” feature
available in the Oracle 9.2 upgrade will be used to link rejection notices to
the voucher records. This will allow users to view vouchers and see the
corresponding rejection notices. For agencies under the Voucher Imaging
Program we will be sending an email notification to the agency when there is a
voucher rejection. There will be a hyperlink to access the voucher so you can
see the rejection reason. The rejection will be an attachment to the
voucher (listed on the top right corner of the Invoice Information tab of the
voucher).
To make sure the notifications
go to the proper person(s), each employee needs to update their PeopleSoft
System Profile. Instructions to update the System Profile are as follows:
-
Go to Main Menu
→ My System Profile (located at the
bottom of the Main Menu).
- Under the section
labeled Workflow Attributes, make sure the “Email User” and “Worklist
User” boxes are checked.
- Under the section
labeled Email, verify if the email address listed is correct. If there
is no email address, check the box for “Primary Email Account” and enter your
email address.
- Click ‘Save’ at the
bottom of the screen.
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