August 2025

A payroll funding correction (PFC) must be signed by the agency approving officer on file with CAR as this entry adjusts the agency's expense records. When an agency submits a PFC, it is a request to adjust an expense entry in PeopleSoft, similar to an AP Journal Voucher. This is an entry that must budget check in PeopleSoft. When preparing a PFC, please review your ABC report to ensure the entry will pass the budget check process before sending the form to CAR. To pass the budget check, the PFC’s Destination Division, Class Fund and Bud Ref must have sufficient cash and allotment left for the entry amount.

CAR updated the PFC form last year to modernize and expand the options available (adding Sub-Account, Operating Unit, and other ChartFields). Please ensure you are using the updated version each time your agency submits these corrections. To update your signatories, submit an updated Signature Card form; if you have questions about who your agency approving officer is, email OMES CAR Transaction Processing.

To access PeopleSoft Financials, you must submit a PeopleSoft Financials Access Request through ServiceNow – no paper or PDF forms are required.

For most state agencies: In the ServiceNow Catalog, navigate to Information Services>Access & Accounts>PeopleSoft Financials Access Request. (You may need to first select the Show More Items button to view all items in Access & Accounts.) 

In the form:

• You can request additional access to an existing account, request a new account, and remove some or all access from users.
• There is an option to request mirror access from another user, for which you must provide their exact PeopleSoft User ID. Selecting the small, black question mark icon opens a description box for all listed roles available to request.
• If needed, there is also a field for Additional Notes. Obtaining DSR (decentralized security representative) approval before submitting a service request and including it in your request can result in quicker processing times. If DSR approval has not been obtained, the specialist working on your ticket will contact your DSR.

For higher ed entities:

• Follow these step-by-step instructions to create an account in the ServiceNow government portal. 
• Select Services, then navigate to Information Services>Access & Accounts>PeopleSoft Financials Access Request.

In the form:

• You can request additional access to an existing account, request a new account, and remove some or all access from users.
• There is an option to request mirror access from another user, for which you must provide their exact PeopleSoft User ID. Selecting the small, black question mark icon opens a description box for all listed roles available to request.
• If needed, there is also a field for Additional Notes. Obtaining DSR (decentralized security representative) approval before submitting a service request and including it in your request can result in quicker processing times. If DSR approval has not been obtained, the specialist working on your ticket will contact your DSR.

If you have not yet submitted your GAAP Conversion Packages, due Thursday, Aug. 8, please take care of that as soon as possible.

If they have not been turned in or you anticipate any delays, contact your OMES financial reporting analyst.

GAAP Packages due now:

• Aug. 8:
  • A – Cash and Investments
  • B – Deposits and Investments
  • G – Inventory
  • H – Capital Assets L – Leases
  • O – Long-term Obligations
  • P – Compensated Absences* S – ASA/ Clearing

Upcoming GAAP Package deadlines:

• Aug. 10:
  • K – Insurance Claims Liability
  • Y – Infrastructure Assets
• Sept. 8:
  • C – Accounts Receivable and Deferred Revenue
  • D – Federal Grants/Entitlement Receivables and Deferred Revenue
  • E – Taxes Receivable
  • F – Due From
  • I – Accounts Payable and Encumbrances M – Lessor
  • R – Interagency Payments X – Miscellaneous
  • Z – Schedule of Expenditures and Federal Awards*
• Oct. 5:
  • N – Litigation
  • Q – Medicaid

*At the time of this request, packages P and Z are being modified to comply with new accounting standards and internal control improvements. When they are completed, the Financial Reporting Unit will contact you with additional information and due dates for those packages.

The updated Statewide Accounting Manual is now available on the OMES CAR webpage. Since the last release, significant revisions have been made to the purchasing section, along with various updates throughout the manual.

This newsletter serves as the official communication for updates made between full manual revisions, which follow a more extensive review process. It is essential to read the CAR Newsletter each month to stay informed of any changes.

If a procedure is published in the newsletter but not yet reflected in the manual, the newsletter serves as the official record and should be followed accordingly.

OMES CAR is excited to launch training sessions specially developed for state finance professionals. Next month, we are kicking off the Crash Course with CAR series of 30-minute virtual training sessions to master key financial processes in state systems. We will focus on one specific financial topic at a time, covering step-by-step procedures, common pitfalls, and tips for staying in compliance with statute and best practices. This session is designed for finance and operations staff across all agencies – whether you’re new to the role or need a refresher. Let’s build better financial practices together!

Sept. 12: Top 10 Reports for State Accounting
Oct. 10: Payment Cancellations
Nov. 6: Accounts Receivable FAQ

Most state agencies will register through Workday@OK.

Higher education partners: Email your name and contact information to  lisa.escott@omes.ok.gov to register. 

Agency CFOs are now required to use ServiceNow to submit requests for updating key personnel contact details. This process ensures your team receives timely and relevant communications from OMES and stays informed about important statewide initiatives. All agency CFOs must complete their annual update by Aug. 31. Additionally, updates should be submitted whenever there is a change in key agency personnel, not just during the annual update period.

For most state agencies:

• In the ServiceNow Catalog, navigate to Central Accounting & Reporting> Agency Leadership Contact Update and complete the online form.

For affiliate agencies and higher ed entities:

1. Follow these step-by-step instructions to create an account in the ServiceNow government portal. 
2. Once logged in, select Services>Central Accounting & Reporting>Agency Leadership Contact Update and complete the online form.

We look forward to continuing our partnership with you!

Please thoroughly review any medical support orders received for employees and respond accordingly. Child Support Services (CSS) is required to send a National Medical Support Notice (NMSN) and an Income Withholding Order within two business days after the date CSS is notified of an employee who is an obligor in a child support case. Additionally, you may receive an NMSN for an employee who is the custodian of a child if the child support order requires that person to provide health insurance for that child.

Employers and insurers must comply with the NMSN. An NMSN consists of four documents, and the total amount withheld for child support, health insurance premiums, and cash medical support cannot exceed the Consumer Credit Protection Act withholding limits. The Oklahoma Department of Human Services Child Support Services Employer Resources handbook provides guidance for employers when an NMSN is received. Once an agency receives the NMSN, please follow the instructions and process the notice promptly. Any delays in processing the notice could result in a follow-up from CSS and potentially put the agency at risk of sanctions for failing to comply with the notice.

Agencies with employees working outside of Oklahoma, please be aware that other states may have implemented a Paid Family Medical Leave plan or other state plans as required by their laws. The amounts may be an employee withholding, an employer withholding, or a combination of both. If amounts are being included on the payroll results, please do not adjust or refund the withholdings. We are required to withhold, remit and report in accordance with state laws. Agencies need to understand the withholding and reporting requirements for each state employees are working in.

NOTE: The IRS has determined any employee amount due that is not withheld from an employee but is paid by the employer is considered taxable income to the employee and must be included on the W-2. As an employer, the State of Oklahoma will not be paying, on behalf of an employee, their share of required state tax or other withholdings. All employee amounts must be withheld from their payroll.

When an employee reimburses a payroll overpayment, please complete and submit the OMES Form 94P as soon as possible after the reimbursement is made. Timely submission helps ensure corrections are reflected in the quarter in which they occurred for proper reporting and helps ensure 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 or the payslip. The form allows the agency to enter the amount reimbursed. Additional backup data is not required.  

For the privacy and security of the employee, the form requires the state employee ID (EmplID) be entered; do not submit with the Social Security number or any other number.

All compensation to employees and former employees, no matter what form, constitutes wages unless specifically excluded by the Internal Revenue Code. This includes stipends, allowances, employee lawsuits and settlements, gifts, prizes, awards and fringe benefits, to name a few. Before compensation is given, agencies must determine the correct method of payment (payroll vs. accounts payable) and reporting required (W-2, 1099 or none). In an audit, the IRS will focus on the reason for the payment. 

NOTE: The IRS has determined that Oklahoma public school teachers receiving payments from a state agency are to be treated as state employees. As such, any payments to teachers need to be evaluated to determine if they should be considered wages. If so, the amounts must be paid through the payroll system, not accounts payable, and be reported on Form W-2 by the paying agency. 

NOTE: Attorney’s fees paid on a settlement are reportable to the plaintiff if the settlement is reportable. For attorney fees paid through accounts payable, the amount must be reported to payrollreporting@omes.ok.gov. The attorney will automatically receive a 1099-MISC form reporting the amount in Box 10 if the correct account code is used on the voucher payment. The plaintiff reporting requires a manual entry and must be reported to OMES. 

If a payment settles a lawsuit, the auditor will focus on the basis of the lawsuit. Agency payroll, finance, human resources and legal departments should obtain the knowledge needed to accurately process compensation to employees or former employees. Agencies are responsible for complying with IRS requirements for withholding and reporting. 

If the plaintiff is a current or former employee and the settlement or judgment payment is income that constitutes wages, the payment is reportable as compensation and included on the Form W-2 and all applicable taxes and deductions must be withheld. For any payment that is income but doesn’t constitute wages, the payment will be subject to reporting on Form 1099-MISC to the plaintiff in Box 3, Other Income.  

If an agency has a settlement agreement that requires the payment be processed through accounts payable instead of the payroll system to expedite processing and the payment is reportable as compensation, then applicable federal, state and FICA taxes must be remitted to OMES on the same day the settlement to the individual is processed. If taxes are not withheld on the payment, the agency must gross up the amount and pay both the employee and employer share of taxes. The employee’s record will be updated for year-end reporting. If additional guidance is needed, please email payrollreporting@omes.ok.gov. 

On Sept. 2, all access to the state’s PeopleSoft HCM system will be removed for higher ed employees. With the Alpha List Load transition to PS Financials and the statute of limitations passed for the years institutions were on the state’s system, access is no longer needed. As a reminder, the institution's record is the system of record since not all information was provided on the file loads to process the payrolls.

Payroll claim and funding documents should continue to be emailed directly to payrolltransprocess@omes.ok.gov for prompt processing – do not submit through a service ticket as this will delay payroll processing and could impact payments to employees. While the payroll team has transitioned to ServiceNow for certain tasks, payroll processing has not. We apologize for any confusion this may have caused.

A service ticket may be submitted for assistance, such as transparency file loads, agency address updates or other miscellaneous questions.

Transparency (OpenBooks) files are due no later than the fifth business day of the following month. Files must be sent promptly to comply with monthly FTE reporting as well as statutory requirements for posting the data to the website. The following are specific field data reminders:

• Hours – must be the employee’s accurate hours. The hours reported here will also be used for FTE reporting, along with the pay frequency entered in the file.
• Warrant Number – must contain the required leading 2. This is the actual warrant number processed through the state’s financial system and paid through the treasurer’s office.
• Pay Date – must be the actual warrant issue date processed through the state’s financial system and paid through the treasurer’s office.

2025 Annual Statewide Conference
Thursday, Aug. 28, from 7:45 a.m.-5 p.m.

Embassy Suites Hotel and Conference Center
2501 Conference Drive
Norman, OK 73069

Conference information is on their website.

FLSA: Overview for Employers and Payroll Professionals

Webinar – Friday, Sept. 19, from noon-1 p.m.

For more information, please visit their website.

Live online seminars presented by Fred Pryor Seminars.

For more information, please visit their website.

Live or on-demand webinars presented by myCPE.

For more information, please visit their website.

Multiple webinar choices and dates:

• Form I-9 Overview: An overview of the Form I-9 requirements, including step-by-step instructions on how to complete each section, acceptable documents, retention and storage.
• Form I-9 Document Training: Overview of acceptable documents when filling out the Form I-9, what can be accepted, how to enter the information.
• E-Verify overview: An overview of the E-Verify program including how the program works, key features, how to enroll, employer responsibilities, program highlights and a demonstration of the program.
• E-Verify in 30: A quick overview of the E-Verify program including what it is, how to enroll and key features.
• E-Verify for existing users: A detailed overview of the E-Verify program specifically for existing users. Topics include Form I-9, user roles, creating a case, case alerts, how to handle a TNC and common user mistakes.

For more information on the webinars, please visit the E-verify website.

• Aug. 15 – AGA Lunch and Then Learn in person, ODOT Commission Room
• Sept. 26 – AGA Lunch and Then Learn in person, ODOT
• Oct. 24 – AGA Lunch and Then Learn in person, ODOT 
• Nov. 14 – AGA Professional Development Training Day at ODOT Training Center, 5307 NE 122nd St, Oklahoma City, OK 73131

Visit the AGA OKC Chapter website for more information.