Accounts and Reports

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

Note:  Another informational circular regarding the fiscal year 2014 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 8, 2013 will use fiscal year 2013 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 8, 2013 will use fiscal year 2014 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 24, 2013, paid June 27, 2013) for the pay period ending June 8, 2013 will be the last opportunity to have a paycheck adjustment charged to fiscal year 2013 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 16, 2013 and should be completed by Monday morning, June 17, 2013.  In that process, a new row will be added to the Department Budget tables with an effective date of June 9, 2013 (beginning date of the first on-cycle payroll charged to FY2014).  The Budget End Date will be June 8, 2014.

Agencies should send Combination Code files or any Department Budget Table files for FY14 changes into Payroll Services by Friday, June 14, 2013.  These files will be loaded into SHARP beginning Monday, June 17, 2013. Agencies should not enter any rows with an effective date greater than or equal to June 9, 2013 until after the FY2014 insert has been completed. When adding new rows for FY2014, agencies should verify that June 8, 2014 was used as the Budget End Date for FY2014.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Friday, June 21 after the 'B' off-cycle process has been completed for the June 8, 2013 pay period end date.  A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 21.  Agencies are encouraged to complete all FY13 payroll adjustments on or before the 'B' off-cycle which processes on Wednesday night, June 19, 2013, to take advantage of this early run of the KPAYGL5C.    Otherwise, any adjustments processed in the 'C' off-cycle on Monday, June 24, 2013 will not be included on the KPAYGL5C file until it is run again on Wednesday night, June 26, 2013.

GHI Adjustments

As of July 1, 2013, NO GHI adjustments can be processed for any pay period prior to the December 24, 2011 pay period end date, which was the beginning of contract year 2012.  Contact Brenda Vaughn (785) 296-3147 bvaughn@kdheks.gov or Lea Weishaar (785) 296-0611LWeishaar@kdheks.gov at Kansas Dept of Health & Environment, Division of Health Care Finance, State Employee Health Plan about any event maintenance changes that may affect claims processing for contract year 2011 or prior.

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. 

Reminders

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.  Some changes to the employee's job data information (i.e. change in FLSA status) 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'.

SG:NTR:ewb

Page last modified on:  May 31, 2013