This informational circular will discuss key payroll processing concepts to
aid in fiscal year end closing. Please note that another informational
circular regarding the fiscal year 2004 payroll contribution rates will be
issued as soon as the information is available.
Benefits Contribution Rates
Supplementals and adjustments use the benefit contribution rates
effective for the pay period being adjusted. Supplementals and
adjustments that are processed for pay periods ending on or before June 7, 2003
will use fiscal year 2003 benefits contribution rates (or prior fiscal years
benefits contribution rates depending on the fiscal year of the payroll period
being adjusted). Supplementals and adjustments for pay period ending dates
greater than June 7, 2003 will use fiscal year 2004 rates. Benefit contributions
include: KPERS, TIAA-CREF, KPEDCP, workers compensation insurance, state leave
reserve assessment, flexible spending accounts administrative fee, group health
insurance (GHI), and parking administrative fee.
Tax Rates
Taxes for supplementals and adjustments will be calculated using the tax rates effective
for the paycheck issue date for the off-cycle payroll being processed. Taxes include: OASDI
(Social Security), Medicare, federal withholding tax, state withholding tax, local withholding tax,
and unemployment compensation insurance. Note for Regents: the use of the 'current' UCI rate for
calculation purposes does not replace the reporting requirements for prior period adjustments necessary
for quarterly UCI reporting.
Fiscal Year Expenditure Impact
Supplementals and adjustments (with the exception of reversals) will be
charged to expenditures in the fiscal year the off-cycle paycheck is issued
regardless of the pay period being adjusted. For example, the Run A
off-cycle (processed June 13, paid June 20) and the Run C off-cycle (processed
June 23, paid June 26) for the pay period ending June 7, 2003 will be charged to
fiscal year 2003 expenditures. The Run A off-cycle (processed June 30 paid July
3) for the pay period ending June 21, 2003 will be charged to fiscal year 2004
expenditures.
Agencies are reminded that there is no Run B off-cycle for the pay period
ending June 7, 2003 due to the SHARP v8.0 conversion.
Reversals will always reverse expenditures in the fiscal year originally
charged. Please note that the Run C off-cycle scheduled for June 23, 2003
(paid June 26) will be the last opportunity to have the reissue of an adjusted
paycheck charged to fiscal year 2003 expenditures. Please note that the Run C
off-cycle is the first off-cycle payroll to be processed in SHARP
v8.0. SHARP agencies may enter supplemental requests for
the payroll period ending June 21 into the Run C off-cycle, but are reminded
that in SHARP v8.0 all adjustment/reversal transactions to
SHARP v7.02 paychecks/advices will have to be entered by
the Division of Accounts and Reports, Payroll Services staff. DA-180 forms for
adjustments or reversals which cannot be entered by agencies should be submitted
to Payroll Services by noon on Monday, June 23, 2003 in order to allow
sufficient time for processing by Payroll Services staff. Payroll Services
cannot ensure that DA-180 forms received after the noon deadline on June 23 will
be processed in time to be included in the Run C off-cycle.
Once the Run C off-cycle for the period ending June 21, 2003 (processed July
7, paid July 10) has been processed, agencies should not request or
process paycheck reversals until STARS FY 2003 closing has been successfully
completed. STARS is scheduled to resume processing July 22, 2003.
The fiscal year expenditure impact applies to both SHARP
agencies and Regents institutions.
Budget End Date and Fiscal Year Changes
With the implementation of SHARP v8.0, the Budget End
Date and Fiscal Year on the Department Budget tables will be updated as part of
the conversion process. In that process a new row will be added to the
Department Budget tables with an effective date of 06/08/2003 (beginning date of
the first on-cycle payroll charged to FY2004). The Budget End Date will be
06/07/2004. When adding new rows for FY2004, agencies should verify that
06/07/2004 was used as the Budget End Date for FY2004.
GHI Adjustments
As of July 1, 2003, NO payroll processing for GHI adjustments
should be made for contract year 2001. Contact Judy Allman in the Division of
Personnel Services at (785) 368-6338 about any event maintenance changes that
may affect claims processing for contract year 2001.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers
will reset to 001 on July 1, 2003. The Julian date used for the off-cycle's document number
is determined by the process date of the cycle while the fiscal year is determined by the off-cycle's
check issue date. For example (assuming processing occurs before midnight), the Run C off-cycle for
the pay period ending June 7, 2003 (processed June 23, paid June 26) will have 358 as the Julian
date in the document number and expenditures will be charged to fiscal year 2003. The Run A off-cycle
for the pay period ending June 21, 2003 (processed June 30, paid July 3) will have 365 as the Julian
date in the document number and expenditures will be charged to fiscal year 2004. The Run B off-cycle
for the pay period ending June 21, 2003 (processed July 2, paid July 7) will have 002 as the Julian
date in the document number and expenditures will be charged to fiscal year 2004.
Regents' Institutions Responsibilities
Regents' institutions are responsible for ensuring that the correct benefit and tax contribution
rates are used when calculating payroll for employees of their agencies and for ensuring that the
STARS funding file and DA175/176 effect the correct fiscal year expenditures. Regents' institutions
are also responsible for ensuring that all appropriate payroll clearing fund indexes are established
in STARS for fiscal year 2004.
Reminders
To help reduce the number of adjustments to process, SHARP
agencies are reminded of the following:
Enter job data changes prior to the creation of paysheets. Paysheets
for on-cycle payrolls are created on the Tuesday night following the end of
the payroll period. Any changes to the employee's job data information
(i.e., pay grade, rate of pay, FLSA status, etc.) that are entered after the
creation of the paysheets will not be reflected in the employee's on-cycle
paycheck for the period and will require special handling.
Please note that due to the conversion to SHARP
v8.0 during the month of June, the first preliminary pay calculation for the
on-cycle pay period beginning May 25 and ending June 7, paid June 20, 2003
will occur on Monday, June 9. The final calculation and confirm for this
on-cycle will occur on Wednesday, June 11.
- Agencies should review the accuracy of the gross-to-net payroll information and employer
contributions after each preliminary pay calculation. The KPAY002 report can be used to
review the gross-to-net data. On-line agencies can review employer contributions by accessing the
employee's paycheck deduction information for the period. Employer contributions have a deduction
class of 'N'.
DB:JJM:rdb
