PAYROLL
In planning your work for November, it is important to remember that Veterans Day is Monday, Nov. 11. Thanksgiving is recognized on Thursday, Nov. 28, and Friday, Nov. 29 is also a state holiday. November biweekly payroll for state agencies (B or C biweekly schedules) will be paid on Friday, Nov. 8 and Friday, Nov. 22. November monthly payrolls will be paid on the last working day of the month, Wednesday, Nov. 27.
With these dates in mind, agency staff should plan their work accordingly for the deadlines:
SUPPLEMENTAL: PeopleSoft supplemental payrolls are set to pay on Tuesday, Nov. 12. Agencies should have these payrolls processed and paperwork forwarded to OMES by Monday, Nov. 4.
BIWEEKLY: B and C biweekly payrolls are set to pay on Friday, Nov. 8. Agencies should have these payrolls processed and paperwork forwarded to OMES by Friday, Nov. 1.
The next biweekly pay date for B and C biweekly schedule agencies will be Friday, Nov. 22. Agencies should have these payrolls processed and paperwork forwarded to OMES by Friday, Nov. 15.
MONTHLY: Monthly payrolls will be set to pay on Wednesday, Nov. 27. Agencies should have these payrolls processed and paperwork forwarded to OMES by Wednesday, Nov. 20.
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Agencies must complete OMES Form DER, Deceased Employee Reporting, when an employee dies and payments are made after the date of death. The form is on the OMES website under CAR Forms. Complete all forms and send to OMES CAR payroll, (attention Alicia Reel) as soon as possible after all payments have been processed.
Procedures for processing payroll after the death of an employee are available in the HCM how-to document titled "Payroll Processing for Death of an Employee."
NOTE: Remember to update the date of death on the HR Personal Data Record, update Job Data for a termination with the reason code ‘SO4’ (deceased), and terminate the employee’s direct deposit. Banks will return direct deposits for deceased customers. A return of an item will cause a delay to the individual receiving the payment.
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When an employee reimburses a payroll overpayment, please complete and submit the OMES Form 94P as soon as the reimbursement is made. Timely submission helps ensure corrections are reflected in the quarter in which they occurred for proper reporting and also helps in the full recovery of OPERS retirement amounts. If the retirement system is not aware of an overpayment and the pending overpayment refund request, payouts to former employees may be incorrect, resulting in a loss to the agency. In addition, retirement calculations may be incorrect if the overpayment is not reported timely.
Please do not provide copies of personal checks. The form allows the agency to enter the amount reimbursed. Additional backup data is not required.
The form requires the State EmplID be entered. This has been changed for the privacy and security of the employee. Please do not submit with the Social Security number or any other number.
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The 2017 Tax Cuts and Jobs Act suspends the tax-free exclusion of qualified moving expenses paid to or on behalf of an employee by an employer. The suspension period is for tax years beginning Jan. 1, 2018, through Dec. 31, 2025.
Authorized moving expenses paid directly or indirectly to or for an employee will be taxable as wages and must be processed through the payroll system. This includes payments made with the P-card and those processed through accounts payable.
If paying the employee directly (through accounts payable) or a third party for moving expenses, the agency must notify its payroll department of the amount paid. The amount must process through the payroll system as nonpaying, taxable earnings so that the amount will be taxed and properly reported on the employee’s W-2. We recommend the amount be processed through payroll on the employee’s next paycheck. Delaying until the end of the year could cause a hardship for the employee by taking the taxes out during the holidays. Delaying could also cause issues with collecting the employee taxes if the employee has terminated employment.
For any amounts paid directly to the employee through the HCM system, taxes will be withheld from the gross amount and the employee will receive the net payment.
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When a payroll warrant is reversed, payable time entered in Time and Labor is set back to ‘Estimated’ status in the HCM System. For a replacement check to be issued before the reversal is complete, it requires entering time upon which to be paid. Completion of the reversal after the replacement check results in duplication of the time worked in the system and potentially a duplicate payment to the employee if not reviewed and corrected. Employee wage and tax balances may not be correct if not taken into consideration when the replacement check was processed. Therefore, agencies should not issue a replacement until the reversal is complete.
If an agency absolutely cannot wait for the reversal to complete before issuing a replacement, the agency is responsible for removing the payable time created by the reversal. The agency must also review employee wage balances when processing a replacement check to ensure that all wage and tax balances will be correct after the reversal is completed.
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Title 47 O.S. § 156.1 as amended, while forbidding the personal use of state-owned motor vehicles, permits the use of the vehicles for the commuting of certain designated employees.
The personal use of an employer-provided vehicle to commute constitutes a noncash taxable benefit to the employee even when the use of the vehicle is for the benefit of the employer. Excepted are qualified nonpersonal-use vehicles (any vehicle not likely to be used more than minimally for personal use because of its design). Please refer to IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits, for a list of vehicles generally included as qualified nonpersonal-use vehicles.
The employee can choose to have the value included as taxable income or pay the employer for personal use rather than having it treated as wages. When treating the value as wages, the imputed income is subject to FICA and income tax withholding. The valuation method is dependent on the employee status. Control employees (elected officials or employees whose compensation is at least as great as a federal government employee at Executive Level V - $156,000 for 2019) cannot use the commuting valuation rule ($1.50 rule). All other employees may have the value computed using the Automobile Lease Valuation Rule, the Vehicle Cents-Per-Mile Rule or the Commuting Rule ($1.50 rule) subject to the requirements of each rule.
All valuation methods are included in IRS Publication 15-B, Employer’s Tax Guide to Fringe Benefits. The most common method is the Commuting Rule ($1.50 rule) for valuing employee use of an employer-provided vehicle. The employer must require the employee to use the vehicle for a business purpose; it cannot be voluntary on the employee's part. Personal use for commuting can be valued at $1.50 each way between home and work. If more than one employee commutes in the vehicle, each rider has imputed taxable income. The taxable amount, if not paid by the employee, must be processed through payroll so that taxes are calculated and withheld and the amounts are reported on the W-2.
Process the taxable amount through the HCM system using the TRC Code of CAR, which will show as earnings code CAR. The amount will be included as taxable income and will be taxed on the paycheck.
We highly recommend the vehicle usage be included in the employee’s payroll each pay period (for the previous pay period, as needed). This will preclude a large sum being included in the employee’s last pay of the calendar year which would result in a higher than normal amount of taxes withheld. Additionally, up-to-date reporting of vehicle usage will benefit the agency should the employee terminate during the year.
For more questions, please contact Lisa Raihl at 405-521-3258, [email protected] or Jean Hayes at 405-522-6300, [email protected].
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If for any reason an agency receives a payroll warrant issued in error, the warrant should be returned as soon as possible to OMES for cancellation. Payroll warrants must be accompanied by an OMES Form PWC.
Warrants issued by the state treasurer which, for any cause, remain outstanding or unpaid for a period of 90 days shall be revoked and canceled under the provisions of 62 O.S. § 34.80. For warrants canceled by statute, the cash is transferred to the canceled warrant fund. Agencies will not be refunded the value of the canceled warrants.
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Agencies should be reviewing the PS Financials Payroll 36-Month Statutory Cancellation Report on a regular basis.
If there is a payroll warrant listed and the employee is entitled to the funds, please complete OMES Form 20R and send to OMES CAR Transaction Processing. This will allow a replacement warrant to be issued to provide the employees their due pay.
If there is a payroll warrant listed and the employee is not entitled to the funds, the issuing agency must notify OMES. (62 O.S. § 34.80) Notification should include the warrant number, warrant date, and must be signed by an agency approving authority. Please send notification to OMES CAR Transaction Processing stating that the warrant should not be reissued. In addition, the amounts must be removed from the employee’s earning record. Please contact Lisa Raihl at 405-521-3258, [email protected] or Jean Hayes at 405-522-6300, [email protected].
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As a reminder, in the HCM system, the W-2 process loads the employee’s mailing address for IRS Form W-2 reporting. If there is no value in the mailing address field, then the employee’s home address will be used on the W-2. If there is a value in the mailing address field that is not to be used on the Form W-2, it must be updated or inactivated.
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The 1095-C form process in the HCM system has been set to load the employee’s mailing address just as the W-2 process does. If there is no value in the mailing address field, then the employee’s home address will be used on the W-2. If there is a value in the mailing address field that is not to be used on the Form W-2, it must be updated or inactivated.
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Please verify the correct agency address is being used on the HCM system. The agency address can be found on the Employee’s Earnings Statement. If the address is not correct for the agency, this must be updated before year-end processing of tax forms. Please contact the OMES Service Desk at 405-521-2444 to have the agency’s address updated in the HCM system.
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The HCM system employee W-2 and 1095-C forms are processed and printed in mail drop order. Please ensure this field is properly used for employees. The forms will print in the same order as checks and advices sort, which is based on each agency’s needs.
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State agency W-2 forms will be printed from the PeopleSoft HCM System. The format for the W-2 forms will be the same as that used last year. Envelopes that fit the 2018 PeopleSoft W-2 forms should fit the 2019 W-2 forms.
The format for the 1099 MISC forms is the same as last year. The forms will have three sections, with the top and middle sections of the page containing the two copies of the form and the bottom section of the page containing mailing addresses. Instructions will print on the back of the form. Standard No. 9 or No. 10 envelopes with left windows should work.
Sample printed forms of the PeopleSoft W-2 and 1099 MISC can be provided if requested. Please contact Jean Hayes at 405-522-6300 or [email protected], or Alicia Reel at 405- 522-9479 or [email protected]
NOTE: This is not applicable for the Institutions of Higher Education due to the fact that they will be responsible for their own year-end reporting.
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HIGHER EDUCATION ENTITIES
In planning your work for November, it is important to remember that Veterans Day is Monday, Nov. 11. Thanksgiving is recognized on Thursday, Nov. 28, and Friday, Nov. 29, is also a state holiday. With these dates in mind, please adjust your payroll processing schedules as needed. All payroll documents must be received five business days prior to the actual pay date to ensure adequate time for audit and processing.
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1099 INFORMATION
Each agency should review their 1099 reportable transactions for the first three quarters of the calendar year 2019. Agencies should run and print the 1099 Transaction Report in the PeopleSoft system. The report path is:
Accounts Payable --> Reports --> Payments --> Misc. Tax Information Report
Specify your agency number and select the date range as 01/01/2019 through 09/30/2019.
As you review this report please note that the IRS Name, TIN, 1099 address and 1099 Flag are our primary concerns. All vendors that need to receive a 1099 should have a ‘Y’ in the 1099 Flag column. If it shows an ‘N’ and the vendor needs a 1099, please indicate the change with your corrections. If a 1099 Flag is 'N' there is no need to submit a change of address since the vendor will not receive a 1099, otherwise please verify the address where the 1099 should be sent. The amounts are listed on the report, so as you reconcile you can make sure that all payments are accounted for.
Return the report and all available W-9s to document your changes (even if it is only an address change) to OMES on or before Friday, Oct. 25, 2019. Your timely review and response to this report will allow us time to update the vendor file in order to have the best information possible for the final report which will need to be reviewed the first week of January 2020.
The preferred way of submitting any corrections to OMES is to print the report and write the corrections on the report using a color of ink other than black, then send comments and corrections by mail or interagency mail. If there are just a few corrections, they may be sent via email to [email protected] or by fax to 405-522-3663. Any other questions or comments regarding this matter should be directed to Beth Brox at 405-522-1099.
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FINANCIAL REPORTING
All pension trusts, colleges and universities, and other component units (with a fiscal year of June 30) should be working with their auditors to complete financial statements. The deadline for submitting these, and any necessary financial reporting packages, to the OMES Financial Reporting Unit is Oct. 31. Failure to complete these statements in a timely manner jeopardizes the state’s ability to complete the audit of the CAFR in time to meet disclosure requirements set forth by bond issuers and the GFOA. A potential risk of missing the deadline includes a downgraded bond rating for the state. All component units are expected to ensure their auditors are aware of the deadline and complete their final reports in time for you to provide it to OMES no later than Oct. 31.
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P-CARD/TRAVEL
There has been a change in the statewide P-card and Travel Office operations within OMES. The state P-card function will be moved back under OMES Central Purchasing with Linda Powell, state purchase card administrator, moving back to Central Purchasing. However, the State Travel Office functions will remain in OMES CAR Transaction Processing where it has been for several years, but with new contacts. Please contact [email protected] for all travel-related issues, including help with the online booking tool.
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ACCOUNTS PAYABLE
All Warrant Replacement Forms (20R) should be emailed to [email protected]. Other forms such as the Electronic Warrant Cancellation and Miscellaneous Warrant Cancellation should also be emailed to [email protected] when a hard copy of the form is not required with supporting documentation. The previous group email for this purpose will be deactivated.
For all travel questions including help with the online booking tool, travel vouchers or questions regarding lodging, transportation, per diem and other travel-related issues, please contact [email protected].
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Most agencies are now scanning vouchers. If you are not participating in the imaging program for processing vouchers, you should consider it for the following reasons:
- No need to retain copies at the agency.
- No need to fold and bundle vouchers for submission to OMES.
- No submission of vouchers to OMES, only emailing the batch slip when ready to process.
- Timely notice of voucher rejection via email to agency.
Please contact [email protected] with questions about this program.
There is certain hardware and software you will need in order to create the file for submission to OMES, such as a scanner or printer with scanning capabilities and a Kofax license. Please contact your agency’s OMES IT Strategist for the technical information concerning scanning.
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