FY 2023 | Informational Messages and Circulars (2024)

K.S.A. 44-314 provides the authority for employers in the State of Kansas to designate the method by which employees receive wages, including to elect to pay wagesonlyby electronic funds transfer or deposit to an automated clearinghouse member financial institution account designated by the employee. An employer may elect to pay wages in this manner provided that the employer offers an alternative payment method as a default option, such as a payroll card, for those employees who fail to designate a financial institution account for electronic funds transfer or deposit.

The Department of Administration currently has a partnership with U.S. Bank, (associated with U.S. Bank) to provide the Focus Payroll Card (aka paycard) to employees who do not choose to have their payroll directly deposited to a checking or savings account. This paycard is an FDIC insured ATM/debit-based bank account where deposits can be made.

No exceptions will be granted for payroll payments to active employees. Special awards or payments requiring payroll processing should be paid to the employee via direct deposit or paycard. Payroll payments required to be processed through the payroll system for terminated employees for whom direct deposit or paycard information cannot be confirmed may be made via paper paycheck, but only upon approval from the Director of the Office of Accounts and Reports.

The employee direct deposit form is located in Employee Self-Service under the W4, K4 & Direct Deposit Forms tile.

Additional information on the State of Kansas Paycard Program can be found on the Department of Administration, Accounts & Reports website.

The Focus Card is issued by U.S. Bank National Association pursuant to a license from Visa U.S.A. Inc. ©2022 U.S. Bank. Member FDIC.

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Printable Version of 23-P-001

The organization dues for members of the Pittsburg State University, Kansas National Education Association will change from $33.06 to $35.06 per biweekly payroll period. The new rate will become effective with the payroll period beginning August 21, 2022 ending September 3, 2022, paid September 16, 2022.

The amount listed above includes the $35.00 deduction amount (ORG030 deduction code) and the $0.06 service fee (ORF030 deduction code), for a total deduction of $35.06 per biweekly payroll period.

The Office of Accounts and Reports, Payroll Systems Team will make the necessary updates to the SHARP system. Regent’s institutions are responsible for ensuring that these changes are made in their respective systems effective with the payroll period noted above.

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Printable Version of 23-P-002& Org Dues Change Documentation

INFORMATIONAL CIRCULAR NO.: 23-P-003

DATE: September 16, 2022

SUBJECT: SHARP Employee Official Work Station (Location)

EFFECTIVE DATE: Immediately

OAR CONTACTS: doa_payroll@ks.gov

Heather DeBusk heather.debusk@ks.gov

APPROVAL: Nancy Ruoff (Original Signature on File)

SUMMARY: SHARP Employee Official Station: Payroll tax and SMART travel reimbursem*nt implications for employees working in locations other than agency office locations under a telework agreement

The State of Kansas Department of Administration Telework Policy allows employees who meet specific criteria to enter into a telework agreement with their agency to achieve administrative efficiencies and increase work/life balance for qualifying employees. The Telework Policy specifies that telework is not an employee right or benefit but is a management option utilized at the discretion of the agency.

Official Station in SHARP Position Data:

To ensure accuracy and consistency in the recording of the official work station in SHARP, the following guidelines shall be used to determine an employee’s official station – such official station shall be entered as the Location for the Position.

• Employees working one or more days per week at their agency office location should have a work location that reflects the building for that agency office.
• Employees working 100% remote, in Kansas and not working at their agency office location at least one day per week should have a work location of KSHOME.
• Employees working 100% remote in a state other than Kansas and not working at their agency office location at least one day per week should have a work location of the state where they work.

As defined in the State of Kansas Employee Travel Expense Reimbursem*nt Handbook located at Travel Handbook: Official Station – Field Employee: The official station of a field employee is the city or town designated as the employee’s official station by the administrative head of the agency (Reference: K.A.R. 1-16-2) and remains unchanged for individuals who are currently designated as field employees. For employee travel, the SMART Employee Profile in the Expenses module used for travel reimbursem*nt has an Official Station location which comes directly from the Location entered for the Position in SHARP. The guidelines for official station noted above shall also be used by Audit Services to determine consistent and appropriate travel reimbursem*nt.

Work Location for Tax Withholding Compliance:

In addition to the Official Station (Location) in Position Data, accurate reporting of the physical location of the employee when work is performed is required to determine the tax withholding obligations for the employee under Federal and State tax laws. The general rule for state and local income tax withholding is that taxes should be withheld for the jurisdiction where the employee performs their work. This could be at the agency office location or at a remote location. Tax withholding rules vary greatly from state to state. Non-compliance with state and local taxation laws can result in financial penalties to both the employer and the employee. The State of Kansas as an employer has a responsibility to abide by the tax withholding laws of all states in which work is performed by an employee.

The rules surrounding the initiation of a withholding tax obligation vary by state. In some states, the withholding tax obligation may apply as soon as the first day of work in that location. To ensure compliance with state and local tax withholding laws, agencies are required to document their employee’s remote work arrangement, including location. It is crucial that employees are set up correctly in SHARP.

Payroll instructions and forms for remote workers can be found on the Department of Administration, Office of Accounts & Reports website, Payroll Procedures/Job Aids, Telework folder.

Link: https://admin.ks.gov/offices/accounts-reports/state-agencies/payroll/payroll-procedures-job-aids

Regent institutions are responsible for completing any necessary updates to properly calculate and report state and local tax withholding for employees working both in Kansas, and in a location other than Kansas.

Questions:

For questions or assistance with SHARP Position Management and Job Data, contact Michelle Huntsman michelle.huntsman@ks.gov

For questions or assistance with SHARP Tax Distribution and Tax Data, contact Carmen Pearson Carmen.Pearson@ks.gov

For questions or assistance with SMART travel reimbursem*nts, contact ARPreaudit@ks.gov

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Printable of Version of 23-P-003

INFORMATIONAL CIRCULAR NO. 23-P-004

DATE: October 27, 2022

SUBJECT:New Benefit Plan and Deduction Codes for Commuter Benefit

EFFECTIVE DATE: Payroll Period Begin date December 11, 2022

OAR CONTACT: doa_payroll@ks.gov

APPROVAL: Sunni Zentner (original signature on file)

SUMMARY: New Benefit Plan and Deduction Codes for Commuter Benefit

New benefit plans/deduction codes will be added to SHARP for Commuter Benefits. The new Commuter Benefit payroll deductions will be processed in SHARP effective for the payroll beginning December 11, 2022, ending December 24, 2022, paid January 6, 2023. The new Commuter Benefit plans/deduction codes effective December 11, 2022 are:

CMMASS and CMPARK will be included on the State Employee Health Plan BERF file provided to SHARP and to each Regent payroll system. The first and second BERF files of the month will include the CMMASS and CMPARK deductions.Please note that CMMASS and CMPARK payroll deductions will be offered on a before-tax basis.In addition, the maximum payroll deduction is $300.00 per month.

The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regent institutions are responsible for ensuring that these changes are reflected in their individual systems. In addition, Regent institutions should submit test payroll files for the new benefit plans/deduction codes to the SHARP Payroll Systems Team by November 05, 2022.

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Printable Version of 23-P-004

The Social Security wage base for OASDI will be $160,200 for calendar year 2023. This is a $13,200 increase from the wage base for calendar year 2022 of $147,000. The OASDI tax rate for calendar year 2023 will be 6.2% for both employees and employers. The maximum OASDI employee contribution for calendar year 2023 will be $9,932.40. There continues to be no limit on wages subject to the Medicare tax in calendar year 2023. Medicare tax rates for both employees and employers remain at 1.45%.

An additional Medicare tax of 0.9% applies to employees with wages of more than $200,000 and $250,000 for married couples filing jointly. This additional tax will only be withheld from employees’ wages. Employers will not pay the extra tax.

For federal employees at Kansas State University who were hired prior to January 1, 1984, the employee contribution rate for reduced FICA remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994). Federal employees hired after January 1, 1984 will have a maximum contribution of $9,932.40 for OASDI and no maximum for Medicare. The employer and employee rates continue to be the same, with wages paid in excess of $200,000 and $250,000 for married couples filing jointly, subject to the additional 0.9% Medicare tax that will only be withheld from employees’ wages.

For Kansas Police and Fireman’s program participants who are subject to the mandated Medicare coverage, the contribution rate remains at 1.45% on all wages subject to the tax (there has been no maximum contribution since January 1, 1994) with the additional 0.9% tax that will only be withheld from employees’ wages in excess of $200,000 and $250,000 for married couples filing jointly.

The Office of Accounts and Reports, Payroll Systems Team is responsible for making the necessary updates to the SHARP payroll system. Regents’ institutions are responsible for ensuring these changes are reflected in their individual systems.

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Printable Version of 23-P-005

Due to the Veterans Day holiday, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.

SHARP

Monday, November 7, 2022

Pay Period 10/16-10/29/2022

• Run A off-cycle will be processed.
• SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run A off-cycle.
• All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
• Payable time must be approved by 7:00 PM.
• Paychecks for the Run A off-cycle will be dated November 10, 2022.

Tuesday, November 8, 2022

Pay Period 10/16-10/29/2022

• Run B off-cycle will be processed.
• SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run B off-cycle.
• All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
• Payable time must be approved by 7:00 PM.
• Paychecks for the Run B off-cycle will be dated November 14, 2022.

Thursday, November 10, 2022

Pay Period 10/16-10/29/2022

PAYDAY

Friday, November 11, 2022

Veterans Day Holiday

Monday, November 14, 2022

Pay Period 10/16-10/29/2022

• Run C off-cycle will be processed.
• SHARP agencies have until 7:00 PM to enter supplemental and/or adjustment run controls for the Run C off-cycle.
• All employees’ reported time must be entered (and approved, if applicable) by 6:30 PM.
• Payable time must be approved by 7:00 PM.
• Paychecks for the Run C off-cycle will be dated November 17, 2022.
• Time and Labor interface agencies can submit time and labor files for the period ending November 12, 2022 by 6:00 PM.

REGENTS

Friday, November 4, 2022

Pay Period 10/16-10/29/2022

• Run A off-cycle payroll files must be received by the Department of Administration by 4:00 PM.

Sunday, November 6, 2022

Pay Period 10/16-10/29/2022

• On-cycle payroll files will be processed.

Monday, November 7, 2022

Pay Period 10/16-10/29/2022

• Run A off-cycle payroll files will be processed.
• Paychecks for the Run A off-cycle will be dated November 10, 2022.

Tuesday, November 8, 2022

Pay Period 10/16-10/29/2022

• Run B off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
• Run B off-cycle payroll files will also be processed on this date.
• Paychecks for the Run B off-cycle will be dated November 14, 2022.

Thursday, November 10, 2022

Pay Period 10/16-10/29/2022

• Run C off-cycle payroll files must be received by the Department of Administration by 4:00 PM.

Friday, November 11, 2022

Veterans Day Holiday

Monday, November 14, 2022

• Run C off-cycle payroll files will be processed.
• Paychecks for the Run C off-cycle will be dated November 17, 2022.

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Printable Version of 23-P-006

Calendar Attachment

Due to the Thanksgiving holiday, some changes have been made to the regular payroll processing schedule. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.

SHARP

Tuesday, November 15, 2022

Pay Period 10/30-11/12/2022

• Paysheets for the on-cycle payroll will be created
• All job actions (i.e., FLSA Status change) must be entered by 7:00 PM in order to be reflected on the paysheets for this period.
• All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
• Payable time must be approved by 7:00 PM, in order for a paycheck record to be created.
• Terminations and Retirements must be entered by 7:00 PM and reported time must be submitted (and approved if applicable) by 6:30 PM in order for leave payouts to be calculated correctly.
• The first on-cycle preliminary pay calculation will run.

Wednesday, November 16, 2022

Pay Period 10/30-11/12/2022

• Second on-cycle preliminary pay calculation

Thursday, November 17, 2022

Pay Period 10/30-11/12/2022

• Third on-cycle preliminary pay calculation

Friday, November 18, 2022

Pay Period 10/30-11/12/2022

• All employees’ payable time must be approved, by 7:00 PM in order for a paycheck record to be created.
• All deduction and tax data changes must be entered by 7:00 PM in order to be reflected in the final paycheck created for the employee
• Final pay confirmation for the on-cycle payroll
• Paychecks for the on-cycle will be dated November 23, 2022.

Monday, November 21, 2022

Pay Period 10/30-11/12/2022

• Run A off-cycle
• SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run A off-cycle.
• All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
• Payable time must be approved by 7:00 PM.
• Paychecks for the Run A off-cycle will be dated November 23, 2022.
• Payroll Journal transactions for the SHARP on-cycle payroll for the period ending November 12, 2022 will be posted to SMART during Monday night's SMART batch processing cycle. (This process would normally occur Wednesday, November 23, 2022.)

Tuesday, November 22, 2022

Pay Period 10/30-11/12/2022

• Run B off-cycle
• SHARP agencies have until 7:00 PM on this date to enter supplemental and/or adjustment run controls for the Run B off-cycle.
• All employees’ reported time must be entered (and approved if applicable) by 6:30 PM.
• Payable time must be approved by 7:00 PM.
• Paychecks for the Run B off-cycle will be dated November 29, 2022.

Wednesday, November 23, 2022

Pay Period 10/30-11/12/2022

PAYDAY

Thursday, November 24, 2022

Thanksgiving Holiday

Friday, November 25, 2022

Thanksgiving Holiday

REGENTS

Wednesday, November 16, 2022

Pay Period 10/30-11/12/2022

• On-cycle files must be received by the Department of Administration by 4:00 PM

Friday, November 18, 2022

Pay Period 10/30-11/12/2022

• Run A off-cycle payroll files must be received by the Department of Administration by 4:00 PM.

Sunday, November 20, 2022

Pay Period 10/30-11/12/2022

• On-cycle payroll files will be processed

Monday, November 21, 2022

Pay Period 10/30-11/12/2022

• Run A off-cycle payroll files will be processed.
• Run B off-cycle payroll files must be received by the Department of Administration by 4:00 PM.

Tuesday, November 22, 2022

Pay Period 10/30-11/12/2022

• Run B off-cycle payroll files will be processed.
• Paychecks for the Run B off-cycle will be dated November 29, 2022.

Wednesday, November 23, 2022

Pay Period 10/30-11/12/2022

• Run C off-cycle payroll files must be received by the Department of Administration by 4:00 PM.
• PAYDAY

Thursday, November 24, 2022

Thanksgiving Holiday

Friday, November 25, 2022

Thanksgiving Holiday

Beginning Monday, November 28, 2022 batch jobs will return to the normal payroll processing schedule. Attached is a partial calendar for the month of November 2022, which highlights key payroll processing activity for the month.

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Printable Version of 23-P-007

Calendar Attachment

Attached are the SHARP bi-weekly on-cycle and off-cycle schedules for calendar year 2023. The attached schedules provide important information regarding the critical payroll processing deadlines for each bi-weekly payroll period. Agency personnel responsible for payroll processing will need to ensure that all appropriate information is entered or submitted by the cutoff dates indicated on the schedules to ensure timely issuance of pay for their employees.

SHARP off-cycle payrolls will be processed each Monday and every other Wednesday night and will include all activity entered into SHARP since the last off-cycle payroll. If a holiday occurs on a Monday or Wednesday, the off-cycle payroll will normally be rescheduled to occur on the following business day. Payroll payments resulting from the first off-cycle for the payroll period (Run ‘A’) will normally be issued with the same paycheck/direct deposit date as the on-cycle pay date for the payroll period. Payroll payments resulting from the remaining off-cycles (Runs ‘B’ and ‘C’) will normally be dated three working days from the date the off-cycle is processed. Agencies have until 7:00 p.m. on Mondays and every other Wednesday to enter adjustments and/or supplemental data into SHARP for processing in that night’s off-cycle payroll. Agencies have until 6:30 p.m. to submit/approve reported time so it is picked up by the Time Administration process. After Time Administration runs, the payable time must be approved by 7:00 p.m. so that the status is ready for payroll processing. Agencies are reminded that they must approve the timesheet (reported time) and payable time (after time administration runs) before requesting a paycheck adjustment in SHARP.

Off-cycle payrolls for Regents’ institutions are also normally scheduled for each Monday and every other Wednesday night. Regents’ institutions have until 4:00 p.m. on Fridays and every other Tuesday to submit off-cycle payroll interface files. The Office of Accounts and Reports must approve all interface files for processing by 5:00 p.m. on the following Monday or every other Wednesday for the files to be processed in that night’s off-cycle payroll. Regents’ off-cycle payrolls will be issued with the same check/advice date as the SHARP off-cycle processed the same night.

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2023 On-Cycle

2023 Off-Cycle

December Calendar

Attached is a revised calendar for the month of December 2022 that highlights key payroll processing activity.

This calendar does not provide the same level of detail as that provided in this informational circular. The attached calendar is intended

for use as a supplementary reference tool to this informational circular.

Printable Version of 23-P-009

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Pursuant to the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the
annual Deferred Compensation and Tax-Sheltered Annuity (TSA) limits will change effective
January 1, 2023 as follows:

457(b) Deferred Compensation:
The Deferred Compensation (Benefit Plan 457DEF) annual contribution limit increases to
$22,500 (up from $20,500 in 2022) or 100% of includible compensation.

The Deferred Compensation special catch-up (Benefit Plan 457DER) limit increases to $45,000
(up from $41,000 in 2022). The special catch-up limit is twice the general deferral limit and is
only available to employees who are within three years of normal retirement age.

The Deferred Compensation catch-up provision for participants who are 50 years of age or older
(Benefit Plan 457DEC) annual contribution limit increases to $7,500 for 2023 making the total
$30,000. The provision for 2022 was $6,500 making the total for 2022 $27,000.

Please note that the two different catch-up provisions cannot be used concurrently.

Tax Sheltered Annuities (TSA):
The limit on annual contributions to a TSA for 2023 is the lesser of $66,000 or 100% of
compensation, increased from $61,000 for 2022.

The annual compensation limit used for calculating mandatory employee and employer
contributions increased from $305,000 (for 2022) to $330,000 (for 2023). The $330,000
applies to the mandatory retirement plans for the School for the Blind, School for the Deaf, and
Kansas Board of Regents (for employees whose participation began after 1995). For School for
the Blind and School for the Deaf employees, the maximum contribution that can be made to the
plan is $33,000 ($330,000 maximum annual compensation multiplied by 10%, 5% employer
contribution and 5% employee contribution). For Board of Regents employees (participants
after 1995), the maximum contribution that can be made to the plan is $46,200 ($330,000
maximum annual compensation multiplied by 14%, 8.5% employer contribution and 5.5%
employee contribution).

For employees participating in the Kansas Board of Regents’ mandatory plan prior to 1996,
participants are grandfathered and use the annual compensation limit under Internal Revenue
Code Section 401(a) (17). The 401(a) (17) limit is increased from $450,000 (for 2022) to
$490,000 (for 2023). However, participants should note their maximum annual
compensation limit will be $471,428.57, since the $471,428.57 annual compensation multiplied
by the 14% contribution rate (8.5% for the employer and 5.5% for the employee), results in
$66,000, which is the limit on annual contributions.

The limit on elective deferrals (Voluntary Tax-Sheltered Annuities) increases to $22,500 (up
from $20,500 in 2022). The age 50 or older catch-up provision increases to $7,500 in 2023 (up from $6,500 in 2022). Therefore, an employee age 50 or over is eligible to increase his/her elective deferral and limit on an annual contribution by $7,500. Additionally, there is a 15-year rule which may allow employees with 15 or more years of service to increase the elective deferral limit by an additional $3,000. Employees may use both the age 50 catch-up provision and 15-year rule concurrently. IRS regulations issued in 2003 state that when employees are eligible for both the 15-year rule and the age 50 catch-up provision, the limit on elective deferrals ($22,500 for 2023) is applied first, then the 15-year rule, and finally the age 50 catch-up provision.

Please note that the total of nonelective deferrals (the mandatory retirement plans) and elective
deferral (VTSA) cannot exceed the limit on annual contributions plus the age 50 or older catch-up provision amount (if applicable).

Regents’ institutions are reminded that they are responsible for applying the maximum
VTSA formulas for their employees. Please note that this circular only provides a summary of
the law in this area. Due to the complexity of the legislation and the unique circ*mstances of
each employee, Regents’ institutions are strongly encouraged to contact the 403(b) carriers to aid
in determining limits in those cases which are outside the norm (the employee is near the limit on
annual contributions, the employee is near the elective deferral limit, the employee wants to use
the age 50 catch-up provision, or the employee wants to use the 15-year rule).

Finally, the EGTRRA Act of 2001 repealed the coordination requirements for employees who participate in both a 457(b) Deferred Compensation Plans and 403(b) Tax Sheltered Annuity plans. Employees eligible for both plans continue to be able to defer the full amount to both plans.

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Printable Version of 23-P-010

The attached schedule contains updated employer contribution rates (in red text) for group health insurance for the period of January 1, 2023 through June 30, 2023.

The amounts are updated from circular 22-P-015 that was released on June 22, 2022.

These amounts will be updated again, on June 30, 2023, to reflect the amounts released on the original informational circular.

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Attachment

Printable Version of 23-P-011

The Internal Revenue Service (IRS) has issued new tables for the percentage method of withholding for 2023, per Publication 15-T, including an Employer’s Worksheet to be used for computing federal tax withholding for wages paid on or after January 1, 2023.

To use the attached IRS worksheet and tables, income must be annualized. To annualize income, multiply federal taxable income for the current bi-weekly pay period by twenty-six pay periods.

For 2019 or earlier W-4:

One withholding allowance has remained at $4,300.

For employees whose Form W-4 is from 2020 or later, Step 2 on the Form W-4 determines which set of attached tables are used to compute federal tax withholding. The first set of tax tables is used for employees with a 2019 or earlier Form W-4 or whose 2020 or later Form W-4 does not have the box in Step 2(c) checked. The second set of tax tables is used for employees whose 2020 or later Form W-4 does have the box in Step 2(c) checked.

IRS regulations continue to require employees claiming exempt status from federal tax withholding (for income earned in the United States) to file a new W-4 form annually. Employees are eligible for the exempt status if the following criteria are met: 1) the employee had no income tax liability in the previous year, and 2) the employee anticipates no income tax liability in the upcoming year.

SHARP employees are encouraged to use the Employee Self Service functionality beginning January 1, 2023 to file their 2023 W-4. The 2023 W-4 can be found on the IRS website at https://www.irs.gov.

The Office of Accounts and Reports, Payroll Systems Team, will make the necessary changes in the computation of withholding taxes for SHARP agencies. Regent institutions are responsible for implementing the new withholding tax rates in their respective payroll systems.

Regents

Regents should also note that the annual amount to add to Nonresident Alien employee’s wages for calculating income tax withholding for 2023 has increased to $9,550 if the NRA employee has not submitted a Form W-4 for 2020 or later or $13,850 if the NRA employee has submitted a Form W-4 for 2020 or later or was first paid wages in 2020 or later. In addition, Regents should check IRS Publication 1494 for any changes to the amounts used when computing tax levies for garnishments. Regents should be aware that the withholding on supplemental wages rate remains at 22% for 2023.

IRS regulations require non-resident alien employees who claim an exempt status from federal withholding tax up to their treaty limit (for income earned in the United States) to file a new 8233 annually. Employees who claimed a non-resident alien exempt status in calendar year 2022 must file a new 8233 form for calendar year 2023 if they wish to continue their non-resident alien status. As a reminder, Regent institutions are responsible for the accuracy of the eligibility of their non-resident alien employees and for monitoring maximum presence.

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Attachment:2023IRS Publication 15-T

Reference Worksheet 1A

The final version of the KTXPR55 W-2 listing has been generated. The KTXPR55 report contains all information printed on the 2022 W-2 Wage and Tax Statement for each employee of your agency. Agencies will find the report in their agency MVS mailbox with a date of January 6, 2023. This report should be downloaded and retained by your agency. The report will be removed from the MVS mailbox and will no longer be available after February 4, 2023.

The KTXPR55 W-2 listing is sorted by 1) 3-digit agency, 2) alphabetically by last name/first name, and 3) social security number (SSN). The report is totaled by 3-digit agency. The ’Total Number of Employees’ count from the Grand Totals page represents the total number of 2022 W-2s that were generated for your agency. The Department of Administration will bill each agency for the applicable costs associated with processing the 2022 W2s as a part of the Central Mail billing.

In the instance where an employee worked for more than one agency, one W-2 form has been prepared that includes earnings and deductions for all agencies. The W-2 information for these employees will be included on the KTXPR55 W-2 listing for the agency appearing on the employee's most current job record.

The standard W-2 was used for 2022. The standard W-2 is one page, contains four copies (a copy to be used with the employee’s federal return, two copies that can be used for the employee’s state and local returns, and a copy for the employee records).

For employees consenting to receive their W-2 electronically, the form is now available on Employee Self Service (ESS). For employees receiving a printed W-2, the form will be printed and mailed by the end of January 2023.

Any employees who have retired or separated from state service continue to have access to consent to receive their W-2 forms electronically, via Employee Self- Service, for 18 months following separation. However, each retired or separated employee must sign back into Employee Self -Service and consent to receive their W-2 electronically. If this consent is not resubmitted, a paper W-2 will be generated and mailed to the former employee.

Agencies are reminded that the mailing address on the Contact Information page will be the primary address used for mailing the paper W-2 to employees who have not consented to receive an electronic W-2. If the employee has no mailing address, the employee's home address will be used for mailing the W-2. The return address for all mailed W-2 forms will be the Department of Administration, Office of Printing & Mailing.

All paper 2022 W-2s that are returned to the Office of Printing & Mailing by the U.S. Postal Service, will be destroyed after April 15, 2023.

In cases where the 2022 W-2 Wage and Tax Statement information does not agree with your agency records, please notify the Payroll Processing Team, DOA_Payroll@ks.gov, with an explanation of the issue.

For all cases where the social security number is incorrect, please send a copy of the employee's social security card to DOA_Payroll@ks.gov with the explanation. State agencies are not authorized to make changes on W-2 forms. The Social Security Administration and the Kansas Department of Revenue must be notified of corrections made by the Department of Administration.

For employees in need of W-2 reprints for years 2018 through 2022, agencies are expected to recommend that employees consent to view these W-2s electronically using the ‘W-2: Consent, Reissue, Forms’ tile found in Employee Self-Service. The employee may view and print the duplicate by selecting ‘View W-2/W-2c Forms’. For those employees who do not consent to receive their W-2 form electronically, a paper W-2 duplicate can be requested by selecting the ‘W-2 Reissue Request’ option also found in Employee Self -Service.

Agencies are reminded that employees who have separated or retired from State service have access to consent, view or print, and request duplicate paper W-2s for 18 months following their date of separation. These employees should be directed to utilize Employee Self-Service to consent, view or print, or request a duplicate W-2. For requesting paper W-2 reissues, after logging into the system and selecting ‘W-2 Reissue Request’, the employee will be asked to review the Tax Address and make any needed corrections. Please note that the Tax Address is where the reissued paper W-2 will be mailed, so it is imperative that the address is correct. The employee will also need to specify for which tax year the reissued W-2 is needed. Duplicate W-2s for 2022 will be available starting on Thursday, February 2, 2023.

Employees who cannot access Employee Self-Service should contact their Agency HR Office for duplicate paper W-2s. Agency shall refer to the job aid Agency Requested W2 Reprints for providing these duplicate reissued W-2 statements for employees of your agency.

Attachment A has been included with this circular to assist agencies in answering questions regarding the W-2 forms. The attachment defines what items must be added (+) or subtracted (-) to arrive at the amounts shown on the W-2 form. In addition, agencies may also consider utilizing the SHARP KPAY318, “Year to Date Balances” report to assist in answering W-2 related questions. The report is available through SHARP using the path: Home / Payroll for North America / Periodic Payroll Events USA / Balance Reviews / Year to Date Balances. Employee ID and year are required to run this report.

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Attachment

The organization dues for members of the Kansas State Troopers Association will increase from $19.94 to $27.44 per bi-weekly pay period. The new rate will become effective with the payroll period beginning December 11, 2022 and ending December 24, 2022, paid January 06, 2023.

The amounts listed above include the deduction amount (ORG281 deduction code) and the $0.06 service fee (ORF281 deduction code) added together. The new rate for deduction code ORG281 will increase from $19.94 to $27.44 and the fee (ORF281) will remain at $0.06 (for a total deduction of $27.50 per biweekly payroll period).

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after January 06, 2023.

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The organization dues for members of the Laborers’ International Union of North America (LiUNA) will increase from $18.06 to $18.98 per bi-weekly pay period. The new rate will become effective with the payroll period beginning February 05, 2023 and ending February 18, 2022, paid March 03, 2023.

The amounts listed above include the deduction amount (ORG133 deduction code) and the $0.06 service fee (ORF133 deduction code) added together. The new rate for deduction code ORG133 will increase from $18.00 to $18.92 and the fee (ORF133) will remain at $0.06 (for a total deduction of $18.98 per biweekly payroll period).

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after March 03, 2023.

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The Internal Revenue Service (IRS) announced the standard mileage rate has increased to 65.5 cents per mile, beginning January 1, 2023. Using the Cents Per-Mile methodology, fringe benefit income is calculated by multiplying the 65.5 cents per mile rate by the number of personal (commuting) miles driven by the employee in the state-owned or leased vehicle.

To be eligible to use the Cents-Per-Mile method, at least 50% of the vehicle’s total annual mileage must be used for the employer’s trade or business, or the vehicle is primarily used by the employee and the total mileage driven exceeds 10,000 miles per year. If a vehicle is first made available to an employee for personal (commuting) use in calendar year 2023, and the agency wishes to use the Cents-Per-Mile method, the fair market value of the vehicle cannot exceed $60,800 for automobiles (including trucks and vans). (See IRS Notice 2023-03 and Publication 15-B (2023), Employer’s Tax Guide to Fringe Benefits)

Agencies and employees are reminded the only state approved personal use of a state-owned or leased vehicle is to commute between the employee’s workstation and home. Even those situations should be limited.

Please note this Informational Circular does not impact the State’s privately-owned vehicle mileage reimbursem*nt rate.

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

Note:A separate informational circular regarding the fiscal year 2024 payroll contribution rates will be issued as soon as the information becomes available.

Off-Cycle C Payroll for Pay Period End 6/10/2023 has been cancelled. The final opportunity to run payroll adjustments for fiscal year 2023 will be Off-Cycle B, which will run on 6/21/2023, with a paycheck date of 6/26/2023.

Regent Off-Cycle B Cutoff

Cutoff for Off-Cycle B for pay period end 6/10/2023 will be 9:00 A.M., 6/21/2023. We will be unable to accept any files received after this date and time, for Off-Cycle B processing for pay period end 6/10/2023.

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 (BUD006) is scheduled to run during the nightly batch cycle on June 18, 2023. In that process, a new row will be added to the Department Budget tables with an effective date of June 11, 2023 (beginning date of the first on-cycle payroll charged to FY2024). The Budget End Date will be June 8, 2024.

Agencies should not enter any rows in the Department Budget table with an effective date greater than or equal to June 11, 2023, until agency notification has been received that the BUD006 process ran successfully.

A special run of the KPAYGL5C (paycheck accounting transactions file) will be processed on Thursday June 22, 2023, after the ‘B’ off-cycle process has been completed for the June 10, 2023, pay period end date. A SHARP Infolist message will be sent out to agencies after the KPAYGL5C has finished processing on June 22, 2023.

Payroll Adjustments

Agencies need to complete all FY2023 payroll adjustments on or before the ‘B’ off-cycle which processes on Wednesday night, June 21, 2023. The ‘B’ off-cycle is the last payroll cycle for FY2023.This includes clean-up of all Rejected by Payroll (RP) rows listed on the Reject by Payroll (Payable Time) Time and Labor Workcenter Query.Any adjustments processed after Wednesday June 21, 2023, will be included with FY2024 transactions and processed with the ‘A’ off-cycle on Monday July 3, 2023, for the June 24, 2023, pay period end date.

Benefits Contribution Rates

Supplementals and adjustments use the benefit contribution rates effective for the pay period being adjusted. Supplementals and adjustments for pay period ending dates greater than June 10, 2023, will use fiscal year 2024 rates.

Fiscal Year Expenditure Impact

Supplementals, adjustments and reversals will be charged to expenditures in the fiscal year of the off-cycle paycheck date regardless of the pay period being adjusted. The ‘B’ off-cycle (scheduled for June 21, 2023, paycheck date June 26, 2023) for the pay period ending June 10, 2023, will be the last opportunity to have a paycheck adjustment charged to FY2023.

The fiscal year expenditure impact applies to both SHARP agencies and Regents institutions.

Regents Institutions Responsibilities

Regents institutions are responsible for ensuring the correct benefit and tax contribution rates are used when calculating payroll for employees of their agencies and for ensuring the SMART INF06 interface files impact the correct fiscal year.

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The Board of Directors for the Kansas Association of Public Employees (KAPE) has advised that changes to the regular biweekly dues for members of KAPE will be effective with the payroll period beginning April 30, 2023, and ending May 13, 2023, paid May 26, 2023, as follows:

The amounts listed above include the deduction amount (ORG018 deduction code) and the $0.06 service fee (ORF018 deduction code) added together. The new rate for deduction code ORG018 will increase from $10.17 to $13.02, and the fee (ORF018) will remain at $0.06 (for a total deduction of $13.08 per biweekly payroll period).

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that employees are enrolled in the correct dues’ organization. Regent’s institutions are responsible for ensuring this change is reflected in their individual systems and is effective for paychecks issued on or after May 26, 2023.

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The amount listed above includes the deduction amount, $9.00 (ORG083 deduction code) and the $0.06 service fee (ORF083 deduction code), for a total deduction of $9.06 per biweekly payroll period.

The Office of Accounts and Reports, Payroll Systems Team is responsible for making this rate change in the SHARP system. Agencies are responsible for ensuring that the employees are enrolled in the correct dues’ organization. Regent’s institutions are responsible for ensuring these changes are reflected in their individual payroll systems and is effective for paychecks issued on or after July 08, 2023.

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The attached schedules contain employer’s contribution rates for KPERS, unemployment insurance, state leave assessment, group health insurance, and worker’s compensation insurance for fiscal year 2024. The fiscal year 2024 rates will become effective with the on-cycle payroll period beginning June 11, 2023, paid July 7, 2023. The withholding rates for OASDI, Medicare, Federal income taxes, and Kansas income taxes remain unchanged for the remainder of calendar year 2023.

For fiscal year 2024, the employer’s contribution to KPERS Death and Disability Insurance will be 1.00% (except for retirement codes J1, J2, J3 which are 0.4%).

Since SHARP uses pay period end dates to determine if the KPERS Death and Disability Insurance contribution is taken, no contribution will be taken for paycheck adjustments with payroll period end dates that contain an original check date within a moratorium period. Previous moratoriums for KPERS Death and Disability Insurance contributions were in place for payroll periods with an original check date between:

April 01, 2010-June 30, 2010

April 01, 2011-June 30, 2011

April 01, 2012-June 30, 2012

April 01, 2013-June 30, 2013

March 25, 2016-September 30, 2017

July 01, 2020-June 30, 2021

For Regent institutions, previous moratoriums do not extend to members of Board of Regents retirement plans who elect to continue the Death and Disability Insurance coverage while on leave without pay under the provisions of K.S.A. 74-4927a(8), which specifically requires the “employee” to remit the required contribution while on leave without pay.

The Office of Accounts and Reports, Payroll Systems Team will update the SHARP system to reflect the changes in employer’s contribution rates. Regents’ institutions are responsible for ensuring the changes in rates are made in their individual systems. Regents’ institutions are also responsible for ensuring that the SMART INF06 impacts the correct fiscal year and account codes.

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Attachment A

Attachment B

Attachment C

Due to the upcoming transition of SHARP to Amazon Web Services (AWS), some changes have been made to the regular payroll processing schedule for Pay Period 7/9/2023-7/22/2023. Agencies are asked to note the payroll processing schedule due dates that are listed in this informational circular.

SHARP Agencies

Pay Period 07/09/2023-07/22/2023

Monday, July 24, 2023

• Off-Cycle C payroll files will be processed for Pay period 06/25/2023 – 07/08/2023
• Paysheets for the on-cycle payroll will be created
• All job actions (i.e., FLSA Status change) must be entered by 7:00 PM
• All employee reported time must be entered (and approved, if applicable) by 6:30 PM (Leave payouts are calculated off of these approved hours.)
• Payable time must be approved by 7:00 PM
• Terminations and Retirements must be entered by 7:00
• The first on-cycle preliminary pay calculation will run

Tuesday, July 25, 2023

• Second on-cycle preliminary pay calculation will run

Wednesday, July 26, 2023

• Payroll confirmation will run

Thursday, July 27, 2023

• Agencies create any necessary adjustments

Friday July 28through Monday, July 31, 2023

SHARP SYSTEM WILL BE UNAVAILABLE TO AGENCIES

Monday, July 31, 2023

• Off-Cycle A payroll files will be processed

Normal payroll processing batch jobs will resume. SHARP will remain unavailable to agencies unless otherwise announced. Attached is a partial calendar for the month of July 2023, which highlights key payroll processing activity for the month.

Friday, August 4, 2023

PAYDAY

REGENT Agencies

Pay Period 07/09/2023 – 07/22/2023

Tuesday, July 25, 2023

• REGENTS ON-CYCLE files must be received by the Department of Administration by 4:00 PM

Wednesday, July 26, 2023

• OFF-CYCLE A files must be received by the Department of Administration by 4:00 PM

Thursday, July 27, 2023

• On-Cycle payroll files will be processed

Friday, July 28, 2023, through Monday, July 31, 2023

SHARP SYSTEM WILL BE UNAVAILABLE TO AGENCIES

Monday, July 31, 2023

• Run A off-cycle payroll files will be processed.

Normal payroll processing batch jobs will resume. Attached is a partial calendar for the month of July 2023, which highlights key payroll processing activity for the month.

Friday, August 4, 2023

PAYDAY

Attachment

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