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 2005 payroll contribution rates will be issued as soon
as the information becomes 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 5, 2004 will use fiscal year 2004 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 5, 2004 will use fiscal year 2005
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 B off-cycle (processed
June 16, paid June 21) and the Run C off-cycle (processed June 21, paid June
24) for
the pay period ending June 5, 2004 will be charged to fiscal year 2004 expenditures.
The Run A off-cycle (processed June 28 paid July 2) for the pay period ending
June 19, 2004 will be charged to fiscal year 2005 expenditures.
Reversals will always reverse expenditures in the fiscal year originally
charged. Please note that the Run C off-cycle scheduled for June 21, 2004 (paid June 24)
will be the last opportunity to have the reissue of an adjusted paycheck charged
to fiscal year 2004 expenditures.
Once the Run C off-cycle for the period ending June 19, 2004 (processed July 6,
paid July 9) has been processed, agencies should not request or process paycheck
reversals until STARS FY 2004 closing has been successfully completed. STARS is
scheduled to resume processing July 21, 2004.
The fiscal year expenditure impact applies to both SHARP agencies
and Regents institutions.
Budget End Date and Fiscal Year Changes
The Budget End Date and Fiscal Year on the Department Budget tables will be updated
centrally at the beginning of the fiscal year. This process is scheduled to run
the morning of June 14, 2004 and should be completed by 8:30 a.m. In that process,
a new row will be added to the Department Budget tables with an effective date
of 06/06/2004 (beginning date of the first on-cycle payroll charged to FY2005).
The Budget End Date will be 06/05/2005. Agencies should not enter any rows with
an effective date greater than or equal to June 6, 2004 until after the FY2005
insert has been completed. When adding new rows for FY2005, agencies should verify
that 06/05/2005 was used as the Budget End Date for FY2005.
GHI Adjustments
As of July 1, 2004, NO payroll processing for GHI adjustments should be made
for contract year 2002. 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 2002.
Julian Date Reset
The Julian date used for the SHARP off-cycle document numbers
will reset to 001 on July 1, 2004. 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 5, 2004 (processed June 21, paid June 24) will have 357 as the Julian
date in the document number and expenditures will be charged to fiscal year 2004. The Run A off-cycle
for the pay period ending June 19, 2004 (processed June 28, paid July 2) will have 364 as the Julian
date in the document number and expenditures will be charged to fiscal year 2005. The Run B off-cycle
for the pay period ending June 19, 2004 (processed June 30, paid July 6) will have 366 as the Julian
date in the document number and expenditures will be charged to fiscal year 2005. The Run C off-cycle
for the pay period ending June 19, 2004 (processed July 6, paid July 9) will have 006 as the Julian
date in the document number and expenditures will be charged to fiscal year 2005.
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 2005.
Reminders
To help reduce the number of adjustments to process, SHARP agencies
are reminded of the following:
