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January 2019 CAR Newsletter
PAYROLLEmail Scam for W-2 InformationThe Internal Revenue Service and state tax agencies have once again renewed their warning about email scams requesting employee Forms W-2 from company payroll or human resources departments. Agencies are urged to double check any executive-level or unusual requests for lists of Forms W-2 or Social Security Numbers. Cybercriminals are tricking payroll and human resource officials by disguising emails to make it appear as if it is from an organization executive. An email is sent to an employee in the payroll or human resources departments, requesting a list of all employees and their Forms W-2. The thieves then attempt to file fraudulent tax returns for tax refunds and/or post the information for sale on the Dark Net. Personnel should pay close attention to the email address of the sender and confirm requests for any sensitive data verbally, using previously known telephone numbers or in-person. As part of a Security Summit effort, the “Don’t Take the Bait” education series focuses on raising awareness of the critical need for increased computer security and caution when reviewing email inboxes – specifically email scams that identify themselves as a friend, customer or company. The series can be viewed on the IRS website. The IRS is investigating phishing emails. If an agency receives an email of this type, immediately contact Lisa Raihl at 405-521-3258 or Jean Hayes at 405-522-6300. >> Back to Top W-2, 1095C, and 1099 Pick-up InstructionsOMES will have W-2 forms, 1099 forms and 1095 CDs ready for release at 10 a.m. on Tuesday, Jan. 15, 2019, through 3 p.m. Thursday, Jan. 17, 2019. Agencies will pick up the forms from our location at 5005 N Lincoln Blvd., Suite 100, Oklahoma City, OK 73105. You may park in front of our building in the visitor parking which faces Lincoln Boulevard. As you enter the building, you must sign in at the Central Purchasing reception area. Once signed in, a team member will direct you to the room where the forms will be distributed. >> Back to Top Forms W-2 & W-2C TerminologyThe following are terms frequently used for different types of W-2s based on when the form is completed. Original W-2: Form W-2 that was originally issued to an employee by Jan. 31. Reissued W-2: Original Form W-2 reissued to an employee when an original form is lost, misplaced, not received, etc. Write ‘REISSUED STATEMENT” and the Reissued Date (MM/DD/YYYY) on the employee’s new copies. A reissued W-2 can be produced at any time because the data is not being changed. Corrected W-2: Used to correct the original W-2 when an error has been discovered before OMES submits the file to the Social Security Administration. “CORRECTED” must be written on the employee’s new copies along with a Corrected Date (MM/DD/YYYY). NOTE: Corrected W-2 forms must be delivered to OMES by Jan. 25, 2019. Please send the original W-2, a copy of the corrected form and a memo explaining why the correction is needed. Do not send copies of checks or other items. W-2C: Used to adjust the original W-2 (or corrected W-2) information when an error has been discovered after OMES has submitted the file to the SSA. NOTE: W-2Cs must be submitted to OMES as soon as completed and will be filed with the SSA. Please send a copy of the original W-2, Copy A of the W-2C and a memo explaining why the correction is needed. Do not send copies of checks or other items. The employee should receive a copy and the agency should keep Copy D for their records. >> Back to Top Form W-2 CorrectionsCorrected W-2 forms must be delivered to OMES by Jan. 25, 2019, in order for the corrections to be in the submission file. The IRS has accelerated the requirements for reporting W-2 information. The due date for submission of Form W-2 information to the Social Security Administration is Jan. 31, 2019. Please send the original W-2, a copy of the corrected form, and a memo explaining why the correction is needed. If the correction is due to a statutory canceled warrant that is not to be replaced, include a letter asking that the warrant not be replaced. Note: When a warrant has been canceled by statute there is no reason for a W-2 correction. If it was a valid payroll payment, the employee is still entitled to a replacement warrant; therefore, the W-2 reporting is proper. Any correction needed after this date must be sent to OMES as a W-2C for us to notify the SSA. This will ensure reporting is as accurate and complete as possible. >> Back to Top Employee Tax RefundsEmployee payroll tax withholdings are not authorized to be refunded to an employee once withheld from their payroll. Refunds will not be given for those employees who did not submit a W-4 in time for payroll processing. All agencies should have a deadline for employees to submit W-4 changes. Per IRS regulations, the effective date of the new W-4 will be the beginning of the next pay cycle for the employee. When the effective date entered is before the beginning of the next pay cycle, the system will recalculate the taxes already withheld for a closed period, which is not authorized by the IRS. >> Back to Top Reporting Requirements for Repayments of Prior Year Wage AmountsRepayments from employees made in the current year (2019) that are for overpayments of wages in a prior year (2018 or earlier) must be repaid at the gross overpayment amount in accordance with Internal Revenue Service regulations. A Corrected W-2 or a W-2C, as applicable, must be completed and sent to OMES. Only Social Security and Medicare wages and taxes are corrected on the Corrected Form W-2 or W-2C. DO NOT correct federal or state taxable wages or income taxes. The employee received and had use of the funds during the year of overpayment and as such, the amounts are taxable for federal and state purposes. The employee may be able to take into account such repayments on their current year (2019) income tax return. Please advise them to speak to their tax accountant. Additional instructions for Form W-2 and Form W2-C are available on the IRS website. For assistance, contact Lisa Raihl at 405-521-3258, [email protected] or Jean Hayes at 405- 522-6300, [email protected]. >> Back to Top Annual Withholding Tax Exemption Certification for Military SpouseAgencies are reminded to review and ensure employees have a valid OTC Form OW-9-MSE, Annual Withholding Tax Exemption Certification for Military Spouses, on file for 2019. The form must be completed annually to continue the exemption for 2019. If a new exemption form has not been submitted for 2019, the employee’s withholding status must go back to the last valid Form W-4 on file. When an employee submits the Form OW-9-MSE, they must also submit a completed Form OK-W-4. If you receive an exempt Form OK-W-4 with Form OW-9-MSE after processing a payroll, do not process a tax refund to the employee or submit one to OMES for processing. The new exemption form will take effect on the next pay cycle; it is not retroactive to the beginning of the year. As a reminder, a nonresident spouse of a nonresident service member may be exempt from Oklahoma income tax on income from services performed in Oklahoma. OTC Form OW-9-MSE must be completed and returned to the employer with the required documentation, along with Form OK-W-4. The instructions contain a list of requirements the employer must meet before the withholding exemption will be allowed. The forms must be completed each year the exemption is to be claimed. This exemption will require an update to the employees' 'State Tax Data' in PeopleSoft. The Special Tax Status will be changed to: "Maintain Taxable Gross; SWT zero unless specified in 'Additional Withholding' below." This does not affect the Federal Tax Data. Federal withholding will still be calculated based on the IRS Form W-4 in effect. Although exempt from state income tax withholding, the income is still reportable on the W-2 as Oklahoma wages. Employees with questions should contact their tax accountants. The Oklahoma Tax Commission has additional information and a section of Frequently Asked Questions on its website. The form may be found by clicking here. >> Back to Top 1099 INFORMATIONForm 1099-MISC CorrectionsCorrected 1099-MISC forms must be delivered to OMES by Jan. 25, 2019, in order for the corrections to be in the submission file. The IRS has accelerated the requirements for reporting 1099-MISC information. The due date for submission of Form 1099-Misc information to the IRS is Jan. 31, 2019. Please send the original form, a copy of the corrected form, and a memo explaining why the correction is needed. Any corrections needed after this date must still be sent to OMES for us to notify the IRS. >> Back to Top Form 1095-C CorrectionsCorrections for Form 1095-C must be submitted to OMES/HCM Division by Feb. 22, 2019. Please send the original form, a copy of the corrected form, and a memo explaining why the correction is needed. Please send corrections to the attention of Kristin Elsenbeck, Human Resources Manager, 405-521-6030. Any corrections needed after this date must still be sent to OMES for us to notify the IRS. >> Back to Top 1099 M Corrections1099 M forms will be ready to pick up after 10 a.m. Tuesday, Jan. 15, 2019, along with the W-2s and other year-end tax forms. ALL FORMS will be available at 5005 N Lincoln Blvd, Ste 100, Oklahoma City, OK 73105. Review the 1099's you receive and advise OMES of any changes which you determine necessary. A few blank 1099M forms will be included for you to make any necessary corrections and you may make more copies of the blank form if necessary. If you have several corrections please contact the office and we will be able to create new 1099s with your corrections and forward them to you. Return as many changes as possible to OMES prior to Jan. 25, 2019. Please note the following procedures pursuant to such changes in the 1099 documents:
In all instances, make sure that your documentation includes enough information for us to understand your changes, the reasons for them and a contact person in case we have questions. FYI:
Questions or comments should be directed to: Beth Brox (405) 522-1099, [email protected] or Alicia Reel (405) 522-9479, [email protected]. >> Back to Top ACCOUNTINGReview of Outstanding WarrantsAgencies should be reviewing the Month End Outstanding Warrant Report no less than monthly to look for warrants that have not been cashed prior to their scheduled stat cancel date. Consideration should be given to whether the voucher should be reissued or cancelled. For payments that need to be reissued, OMES Form 20R should be completed and submitted with appropriate documentation and signatures. Lost or destroyed payments should be replaced before the scheduled stat cancel date if possible. Warrants that need to be cancelled must be submitted to OMES Transaction Processing using OMES Form MWC and all required documents and signatures must be included. Warrants must be cancelled prior to the date they will cancel by statute. >> Back to Top Stat Cancelled WarrantsAgencies should be reviewing the 36 Month Stat Cancel Report and the Payroll 36 Month Stat Cancel Report no less than monthly to ensure that duplicate payments are not processed to vendors. Payments to vendors for stat cancel warrants must be issued using OMES Form 20R. Form 20R must be submitted to OMES Transaction Processing with appropriate documentation and signatures. Warrants are available for reissue up to 36 months from the date they stat cancelled. Agencies should notify OMES Transaction Processing regarding warrants listed on the stat cancel reports that should not be reissued. Those warrants will be updated in the system with a “do not reissue” notation. Funds from stat cancelled warrants cannot be returned to the agency. Questions about stat cancelled warrants should be directed to OMES Transaction Processing. >> Back to Top Payroll Funding CorrectionsPayroll funding corrections must reference the original payroll entry being corrected. If payroll funding corrections have already been made against the original payroll entry, the original entry should be referenced in the journal lines section and all corrections must be referenced in Section C of the form. Submissions will be validated against data in the State Accounting System. Questions related to Payroll Funding Corrections should be sent to [email protected] >> Back to Top General Ledger Journal Entry RequestsAll journal entry requests must include the appropriate information when it is submitted to Central Accounting and Reporting. The most common requests include the following categories:
Questions regarding the required documentation and submissions of journal entry requests should be sent to [email protected] >> Back to Top FINANCIAL REPORTING UNITComprehensive Annual Financial Report PublishedAs of Dec. 22, 2018, the State of Oklahoma’s Comprehensive Annual Financial Report (CAFR) for fiscal year 2018 was completed. The Financial Reporting Unit would like to thank all state agencies for their effort and cooperation in providing timely financial information. The CAFR is available on the OMES website. >> Back to Top MISCELLANEOUSClearing and ASA Reconciliations – RemindersTimely and complete submission of the Form 11 or 11a reconciliations is very important. The due date is the 20th of the month following the month being reconciled. Incomplete or imbalanced forms will be returned for corrections. Journal entries for vouchers from the clearing account will be posted when the completed form 11 or 11a is submitted. Following are a few reminders to keep in mind when completing the forms.
>> Back to Top Taxpayer Offset Program NotificationsThe Federal Taxpayer Offset Program (TOP) may create offsets against one agency’s federal draws or payments due to another agency’s debt. Obtaining data about the offset often proves to be difficult and may take considerable time. Appropriate action by both the offset and debtor agencies may help shorten the time it takes to resolve the offset. Agencies will receive several notices before a debt to the federal government is sent to the TOP group. The agency will have approximately 60 days to make payment for the debt and will have an additional 60 days to appeal the debt. These notices are typically sent to the same address as the normal request for payment. If the request for payment is sent to a third party payer, the notice of delinquent debt will also go to that third party payer, therefore, agencies need to ensure that individuals or divisions receiving these notices are sending copies to the central office. When an agency’s federal draw or payment is offset, a notice is sent to the address on file for the draw or payment being processed. A copy of the notice should be forwarded to OMES Central Accounting and Reporting to assist in resolving the offset. Even though Higher Education has moved to their own Federal Identification Number, their debt is still affecting other state agencies and in some cases, their federal draws and payments are being offset as well. >> Back to Top |
Volume 29, Number 7 Fiscal Year-2019 January 9, 2019 In This Issue ...
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