Kansas Department of Administration, Office of General Services
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Accounts and Reports


Supersedes 10-p-024

DATE:  May 12 , 2011

Fiscal Year End Payroll Processing for FY 2011

EFFECTIVE DATE:   Immediately

Joyce Dickerson

(785) 296-3979

(Joyce.Dickerson@da.ks.gov )


Summary of Fiscal Year End Payroll Processing

This informational circular will discuss key payroll processing concepts to aid in fiscal year end closing.

Note: Another informational circular regarding the fiscal year 2012 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 11, 2011 will use fiscal year 2011 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 11, 2011 will use fiscal year 2012 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, adjustments and reversals will be charged to expenditures in the fiscal year the off-cycle paycheck is issued regardless of the pay period being adjusted.
Please note, the Run C off-cycle (scheduled for June 27, 2011, paid June 30, 2011) for the pay period ending June 11, 2011 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2011 expenditures.

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 during the batch cycle the night of June 19, 2011 and should be completed by Monday morning, June 20, 2011. In that process, a new row will be added to the Department Budget tables with an effective date of June 12, 2011 (beginning date of the first on-cycle payroll charged to FY2012). The Budget End Date will be June 11, 2012. Agencies should not enter any rows with an effective date greater than or equal to June 12, 2011 until after the FY2012 insert has been completed. When adding new rows for FY2012, agencies should verify that June 11, 2012 was used as the Budget End Date for FY2012.

GHI Adjustments
As of July 1, 2011, NO payroll processing for GHI adjustments should be made for contract year 2009. Contact Brenda Vaughn (785) 296-3226 Brenda.Vaughn@khpa.ks.gov at Kansas Health Policy Authority about any event maintenance changes that may affect claims processing for contract year 2009.

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 SMART INF06 interface files affect the correct fiscal year expenditures.

To help reduce the number of adjustments to process, SHARP agencies are reminded of the following:

  1. Enter job data changes prior to the creation of paysheets. Paysheets for on-cycle payrolls are generally 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.
  2. Agencies should review the accuracy of the gross-to-net payroll information and employer contributions after each preliminary pay calculation. The PAY002 report can be used to review the gross-to-net data. Agencies can review employer contributions by accessing the employee’s paycheck deduction information for the period. Employer contributions have a deduction class of ‘Nontaxable’.