As 2007 calendar year-end approaches, the Division of Accounts and Reports is making preparations for the issuance of calendar year 2007 Wage and Tax Statements (Forms W-2) and Non-Resident Alien Compensation Statements (1042-S). Any 2007 paycheck adjustments processed after the established cut-off dates will update the employee’s calendar year 2008 balances; a corrected W-2 (Form W-2C) for 2007 will not be issued for the employee involved. FINAL 2007 PAYCHECK PAYCHECK REVERSALS PAYCHECK ADJUSTMENTS AND SUPPLEMENTALS Payroll Services staff will make every effort to process all DA-180 forms submitted by 5:00 p.m. on December 14, 2007 for inclusion in the December 26, 2007 off-cycle. However, if a large volume of DA-180 forms is received on the December 14, 2007 cut-off date, Payroll Services cannot guarantee that all forms will be processed as calendar year 2007 business. Agencies can assist in the processing effort by submitting any DA-180 forms and the completed attachment as soon as you become aware a centrally entered adjustment is needed. Adjustment requests entered after December 26, 2007 which are adjusting paychecks issued prior to January 1, 2008 will not result in a W-2C; the adjustment will update the employee’s 2008 payroll balances regardless of the reason the paycheck is being adjusted. Likewise, any supplemental requests that are entered either by agencies or centrally by Payroll Services after December 26, 2007 will update the employee’s 2008 payroll balances. REGENTS’ INSTITUTIONS: ON-CYCLE FILES REGENTS’ INSTITUTIONS: OFF-CYCLE FILES 2007 Adjustments and Supplementals 2008 Adjustments and Supplementals With the exception of OASDI and/or Medicare tax refunds or arrearages for tax years prior to 2008, Regents institutions may continue to submit adjustments and supplementals throughout the month of January 2008 regardless of the original pay period ending date of the paycheck being adjusted. The activity will be processed on the regular Monday and every other Wednesday off-cycle schedule and will update 2008 payroll balances. Arrearages or refunds for OASDI and or Medicare taxes for prior calendar years and limited to those adjustments resulting from a change in Social Security status must be submitted on separate payroll interface files. These files should contain a ‘P’ indicating prior year business and the pay adjust check date field should contain the original check issue date of the paycheck being adjusted. Prior year OASDI and/or Medicare arrearages/refunds are the only situations in which a prior year indicator of ‘P’ should be used; payroll interface files for any other type of adjustments, which contain a prior year indicator of ‘P’, will be rejected and will not be processed. Any prior year OASDI and/or Medicare refunds/arrearages identified after the December 21, 2007 deadline for the December 26, 2007 Run B’s off-cycle payroll will not be processed until the January 22, 2008 off-cycle payroll. Since the files will be held, please do not begin submitting those files for processing until the week of January 14, 2008. The deadline for submitting payroll interface files for the January 22, 2008 off-cycle is 5:00 p.m. on Friday, January 18, 2008. GENERAL REMINDERS SHARP employees are encouraged to use the Employee Self Service functionality to file their 2008 W-4s. Employees should continue to submit Form W-5 for the Earned Income Credit to their agency Payroll/Personnel Office. Employees should submit the new W-4s and W-5s by December 14, 2007 to allow adequate time for processing. Agency personnel have until 6:00 p.m. on December 21, 2007 to enter all paper W-4s and W-5s into the system. Agency personnel are reminded that they also need to check the radio buttons ‘New W-4 Received’ and/or ‘New W-5 Received’ on the employee’s ‘Federal Tax Data’ panel in SHARP for the effective-dated row they enter. Agency Workflow Administrators also need to check the radio button ‘New W-4 Received’ on the electronic W-4s submitted by the employee for calendar year 2008. The KPAY320 will be processed the evening of December 21, 2007. This process searches for all employees for whom a W-4/W-5 email notification has been sent. If a new W-4 and/or W-5 has not been received, a January 1, 2008 effective-dated row will be placed in the Employee Tax Data record. The January 1, 2008 effective-dated row will update the employee’s marital status to ‘single’ with zero exemptions and/or stop any advance EIC payments for paychecks with a 2008 pay date. For any 2008 W-4s (for employees claiming exemption from withholding) and/or W-5s received between December 21, 2007 and January 1, 2008, agency personnel will need to enter the data with a January 2, 2008 effective date. Agency Workflow Administrators will also need to change the effective date to January 2, 2008 for any electronic W-4s received in this time period. Note: These processes relating to W-4 exemption status will update both the Federal Tax Data and the Kansas State Tax Data records. Beginning January 1, 2008 with the new Form K-4, Employee Withholding Allowance Certificate, it will be possible to have State of Kansas number of allowances, marital status, additional withholding, and exemption claim options that differ from Federal options. The tax data should be entered with an effective date on or after January 2, 2008. See Information Circular 08-P-011 for information pertaining to the use of Form K-4. The 2008 Forms W-4 and W-5 will be posted to the Accounts and Reports website as soon as they are available from the IRS. The KPAY320 will also enter a new-effective dated row in the SHARP federal tax data records on December 21, 2007 for employees with a special tax withholding status of ‘Non-Resident Alien’ to reflect that no 8233 form has yet been submitted for calendar year 2008. The new tax data row will be dated January 1, 2008. Payroll Services will update the 8233 indicator on the tax data records once a form 8233 for calendar year 2008 has been submitted. A listing will not be provided for the 'Non-Resident Alien' updates, since reports are generated periodically throughout the calendar year to identify employees who have had non-resident alien earnings reported but who do not have a current 8233 form on file in Payroll Services. Deduction Information -Health Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month. -Dependent Care Flexible Spending Accounts: semi-monthly, deducted on the first and second pay dates of the month. -Optional Group Life Insurance: monthly, deducted on the second pay date of the month. -Health Savings Accounts: semi-monthly, deducted on the first and second pay dates of the month. Arrearages/Advances Any arrearage collections made by personal reimbursement that are collected after December 19, 2007, and prior to December 26, 2007, must be sent to the Division of Accounts and Reports, Payroll Section for processing in order to impact the 2007 W-2. Agencies are reminded that advance (‘ADV’) earnings are being paid to employees in situations where the employee’s earnings are not sufficient to cover certain deductions. ‘ADV’ earnings are taxable wages at the time the earnings are paid; taxable wages are then reduced when the advance is collected (‘ADVNCE’ deduction). Any ‘ADV’ earnings paid to an employee in calendar year 2007 will increase the employees’ W-2 taxable wages if the earnings are not collected by the end of the calendar year. Agencies should collect any outstanding advances for payroll periods ending before December 15, 2007 by personal reimbursement as soon as possible. The W-2 programs will be executed anytime between December 28, 2007 and January 4, 2008. W-2 forms will be mailed on or before January 31, 2008. Notification of the W-2 mailings will be provided to all subscribers of the SHARP Infolist. December Calendar If, in order to ensure the timely issuance of payroll, it becomes necessary to change any of the processing dates identified above, notification of the change will be provided to all subscribers of the SHARP Infolist. SHARP users interested in subscribing to the Infolist, but who have not yet done so, can subscribe at http://da.ks.gov/sharp/infolist.htm. Attachment
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