December 2025

FY 2024 appropriation budgets lapsed in late November and FY 2024 revolving fund budgets will lapse on Dec. 31. After Dec. 31, agencies will no longer be able to process any transactions to bud ref 24 – this includes zero-dollar transactions such as journal vouchers and payroll funding corrections.  

If your agency has any pending transactions or corrections using bud ref 24, these should be prioritized in the next few weeks before the budget lapses. 

The OMES CAR Transaction Processing department is pleased to announce the launch of our additional service request platform within the state's work management system, ServiceNow.

About this transition: The Transaction Processing team now provides ServiceNow catalog items for your agency’s use. This enhancement replaces three department email addresses – OMESTPAccountsPayable@omes.ok.gov, OMESTPVouchers@omes.ok.gov and OMESTPTravel@omes.ok.gov – improving our ability to efficiently track and manage all requests submitted to our office. The platform also provides metrics to support continuous improvement of our service quality.

Emails sent to the decommissioned addresses will receive an automated reply directing users to the ServiceNow portal.

Using ServiceNow to engage the CAR team 

For employees of most state agencies:

• Log in to ServiceNow using your employee ID number; no registration is needed. Navigate to the catalog and select Finance & Purchasing.
• The available catalog items are:
  • Accounts Payable/PeopleSoft Questions.
  • Batch Slip Submission & Workflow Approval Notice.
  • Submit a Form to Transaction Processing.
  • Submit a Rush Voucher Request.
  • Travel Information. 

For affiliate agencies and higher education entities:

• If you already have a ServiceNow account, use your existing account to log in and view the new catalog items.
• If you do not have a ServiceNow account, create an account in the ServiceNow government portal. Follow these step-by-step instructions on that process.
• When you are logged in, navigate to Service Categories and select Central Accounting & Reporting. 
• The catalog items available are:
  • Accounts Payable/PeopleSoft Questions.
  • Submit a Form to Transaction Processing.
  • Travel Information.

For all users, each catalog item has different required fields. Some require an attachment (for example, Submit a Form to Transaction Processing), while others are open fields (including many fields under Accounts Payable/PeopleSoft Questions). 

The CAR teams appreciate your understanding and look forward to continuing our partnership with you!

ServiceNow website

ServiceNow for Higher Education

Agencies on the Billing Inter Unit (BIU) system were affected by this system change in PeopleSoft Financials. Changes to the total voucher amount and supplier ID are no longer allowed. This ensures that payments made by your agency are correctly applied to the issued invoice.

If an invoice amount is inaccurate, you will receive a credit invoice. You must process the original and credit invoices simultaneously to apply the credit and reduce the payment amount. Ensure that both the invoice and the credit are paid to the same location and address, and that they are within the same pay group, to pair correctly in the pay cycle. The payment must result in a net positive voucher amount, and the credit and invoice must be of the same invoice type. 

To avoid any issues with the Total Amount field being cleared, please update your AP processing steps to pull in the PO lines before you delete the original voucher line. In the event you delete the voucher line first, contact Transaction Processing using the ServiceNow Catalog to have the amount updated on the voucher.

OMES has created a Late Interest Payment Calculator for agency use. The calculator uses the invoice amount, the date the invoice was received, and the date the invoice was paid to calculate the interest payment to suppliers for late payments based on the annual rates published by OMES.

The 2026-Valid EFT Date Calendar is ready for your agency to use to prepare for submission of EFT transactions. Please use the calendar to ensure EFT items process with the effective dates intended. The letter “H” identifies holidays on the calendar. The state’s 2026 holidays correspond with the federal institution/bank holidays except for these five:

• Juneteenth – 6/19/2026
• Independence Day – 7/3/2026
• Columbus Day – 10/12/2026
• Additional Thanksgiving holiday observed – 11/27/2026
• Additional Christmas holiday observed – 12/24/2026

If your agency sends EFT items effective for these dates, the Treasurer’s Office will change the date to the next valid EFT date.

Please contact Banking and Treasury Services Manager Nancy Rooker at Nancy.Rooker@treasurer.ok.gov or 405-521-3121 if you have questions concerning the calendar.

In response to agency feedback, state agency personnel access to the PeopleSoft HCM system has been extended from Jan. 2, 2026, until March 31, 2026. We have gathered information on data requests and are looking to pull additional information into Workday@OK. If anything is needed after agency access has been removed, please submit a ServiceNow ticket, as OMES personnel will be able to assist.

Prism holds employee information within Workday@OK in a manner similar to the Legacy Data Warehouse in PeopleSoft HCM. Available reports can be found by inputting "Prism" In the Workday@OK search bar. Updates will be provided when additional information is added to the program.

Agencies are encouraged to promote electronic-only access to year-end forms. The following information is provided to distribute to employees:

To avoid waiting for your 2025 W-2 to arrive by mail, you can opt to go paperless only. When you choose to go paperless only, you will receive an electronic copy of the document that can be downloaded and printed earlier than if you elect both paper and electronic. Once you select to receive an electronic-only copy, you do not need to make the selection again in the future. A W-2 user guide has been created to assist you in opting out of receiving the document by mail. Those who have elected to receive both electronic and paper copies for their year-end document will have them mailed by the required deadline and an electronic version will also be available by the deadline. W-2s are due to employees by Feb. 2, 2026.

In planning your work for December, it is important to remember the state holidays for Christmas this year are Wednesday and Thursday, Dec. 24 and 25. Additionally, the New Year’s holiday is observed on Thursday, Jan. 1, 2026. The December biweekly payrolls for state agencies will be paid on Friday, Dec. 12, and Friday Dec. 26. December monthly payrolls will be paid on the last working day of the month, Wednesday, Dec. 31. With these dates in mind, staff should plan their work accordingly: 

Biweekly: Biweekly payrolls are set to pay on Friday, Dec. 12. Agencies must have the payroll processed and paperwork forwarded to OMES by noon Friday, Dec. 5.

The next biweekly payroll will be Friday, Dec. 26. Agencies must have these payrolls processed and paperwork forwarded to OMES by noon Wednesday, Dec. 17.

Monthly/legislative monthly: Monthly payrolls will be set to pay on Wednesday, Dec. 31. Agencies must have these payrolls processed and paperwork forwarded to OMES by noon Monday, Dec. 22.

Agencies should review all employee corrections for the year to ensure they have been processed by HCM Central Payroll as requested. This includes cancellation of payroll warrants, overpayment refund requests, Social Security number changes and any other request that affects W-2 reporting. For any requests identified as not yet processed, please contact Jean Hayes or Alicia Reel at payrollreporting@omes.ok.gov for a status update.

Agencies should review all outstanding employee overpayments and collect required amounts from employees. After collection, please submit OMES Form 94P as applicable. Agencies will be entitled to receive refunds for all forms submitted by Friday, Dec. 12, 2025. After this date, refunds cannot be returned to the agencies; however, agencies are still required to submit the form after this date for employee wage corrections. Corrections due to overpayments will be posted to the employee’s 2025 W-2 for requests submitted through Friday, Jan. 2, 2026. Any corrections submitted after Jan. 2 will require a corrected W-2 or W-2C as applicable.

When an employee reimburses a payroll overpayment, please complete and submit the OMES Form 94P as soon 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.

Any taxable fringe benefits not yet recorded and reported this year must be included in the December payroll. The HCM system has been structured to accommodate the reporting of non-cash, taxable fringe benefits. Of specific concern to state employees, the following benefits should be reviewed to determine if W-2 wage adjustments are necessary:

• Employee use of state vehicles.
• Maintenance, car and housing allowances.
• Additional non-cash benefits.

Reporting these benefits is required by state and federal law, and it is the responsibility of the individual agency to ensure compliance. If the item is not run through the payroll system in the current year, the employer may deduct the taxes associated with the wage item on a following paycheck in the next year as a miscellaneous deduction. The state is responsible for depositing the taxes. Any taxes associated with items not run through the payroll system must be sent to HCM Central Payroll in a timely manner so the tax deposits can be made and the items posted to the employee’s earnings record.

Please refer to the W-2 instructions and Publication 15A, Employer’s Supplemental Tax Guide, for additional information. Also, refer to OMES Human Capital Management rules to determine whether these payments are a valid pay plan for a particular agency.

Please verify the correct agency address is being used in Workday@OK. The agency address can be found on the Employee’s Earnings Statement. Submit a ServiceNow ticket to have the agency's address updated in PeopleSoft Financials

Employee overpayments collected in the next calendar year are to be repaid at the gross overpayment amount in accordance with Internal Revenue Service regulations. If an employee owes the agency, notify the employee that if the amount is not paid in full by Dec. 31, 2025, the amount due will increase to the gross amount.

In accordance with 74 O.S. § 840-2.19, the agency must send a notice to the employee within 10 days of identifying an overpayment. The employee then has 30 days to respond to this notification. Employees have several options for repaying overpaid payroll amounts:

• Reduction of annual leave (for the gross overpaid).
• Reduction of current gross salary (for the gross overpaid) in a lump sum or installments over a term not to exceed the term in which the overpayment(s) occurred.
• Lump-sum cash repayment.
• Miscellaneous payroll deduction (for the net overpaid in the current year, gross for a subsequent year) in a lump sum or installments over a term not to exceed the term in which the overpayment(s) occurred.
• Any combination of the above options.

With the calendar year-end here, collecting outstanding overpaymenst is especially important and must be conveyed to employees who owe monies back to the agency. When an overpayment is reimbursed in a subsequent year, IRS rules state the employee must reimburse at the gross amount because the funds were available for use in the prior year and, as such, they are taxable to that year. Additionally, federal and state wages and taxes cannot be reduced for prior years when repayments are made after the end of that calendar year.

For example, John Doe was overpaid in August by $1,000 in regular wages. This was discovered in September, and the agency calculated what the correct payroll should have been. The net check difference is $743.50, the amount the employee owes the agency if making the reimbursement by personal check or miscellaneous deduction in the current year. If the employee does not reimburse the net amount by Dec. 31, 2025, the employee owes the agency the full $1,000 gross overpayment.

If the employee reimburses the entire gross amount after year-end, the applicable W-2, corrected W-2 or W-2C will only reflect a change in the Social Security and Medicare wages and taxes. Since the employee received and had use of the funds during the year of overpayment, the amount is still taxable for federal and state purposes. The W-2 form will not correct federal or state taxable wages or income taxes. The employee may be entitled to either a deduction or credit on their current year Form 1040 and should be advised to speak to their tax accountant.

Workday uses the first address it finds for an employee based on the following order:

Please communicate to employees the need for an updated address in the system as this will be used on the file to the IRS.

Electronic W-2s will be ready by Jan. 16, 2026. Those who have elected to receive both electronic and paper copies for their year-end documents will have them mailed by the required deadline. Electronic versions will also be available by the deadlines. W-2s are due to employees by Feb. 2, 2026.

Dec. 12, 2025 – last day that a refund of taxes due to overpayments can be returned to agencies (refer to above article).

Dec. 29, 2025 – last day OMES will process payrolls for calendar year 2025. Payrolls must be received by noon on this date. Any payrolls received after this deadline will not process to pay in 2025. 

Jan. 2, 2026 – payroll warrant cancellations, OMES Form 94Ps and earning adjustments for calendar year 2025 must be received by OMES no later than 5 p.m. Any 2025 payroll information received after this date will require a corrected W-2 from the agency. 

Jan. 16, 2026 – W-2 forms will be available to employees electronically (refer to above article).

Jan. 23, 2026 – last date to submit corrected W-2 forms for file submission (refer to above article).

Feb. 2, 2026 – printed W-2 forms will be mailed to employees (refer to above article).

Feb. 2, 2026 – deadline for delivering forms to employees.

Feb. 17, 2026 – Form W-4 with exemption expires (refer to above article).

Corrected W-2 forms must be delivered to HCM Central Payroll by Jan. 23, 2026, for the corrections to be in the submission file. The due date for submission of Form W-2 information to the IRS is Feb. 2, 2026.

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, please also send a letter asking that the warrant not be replaced. Note: Because a warrant has been canceled by statute is not a reason for such 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.

Exempt from withholding: An employee who certified to his or her employer on the 2025 Form W-4 that the employee had no income tax liability for 2024 and anticipated no income tax liability for 2025 was entitled to an exemption from withholding for 2025. This exemption expires on Feb. 17, 2026, and must be renewed if conditions remain the same. To claim exempt status, the employee must complete a new federal tax withholding election in Workday@OK. Only Step 1 (marital status), the  ‘Exempt’ box (checked), and Step 5 (legal notice) should be completed. If the entry is made after Feb. 17, 2026, the W-4 will take effect on the next pay cycle; per IRS regulations it is not retroactive to the beginning of the year.

Lock-in letter: The IRS has been issuing Letter 2800C, WHC Lock-in Letter to Employer (lock-in letter) with the permitted filing status and withholding instructions based on the new W-4 which no longer uses withholding allowances. Follow all instructions in the letter, entering the information into Workday@OK and selecting the Lock-in Letter field. Provide the employee with their copy and begin withholding based on the date specified in the notice. If an employee has a lock-in letter in effect and submits a new W-4, you must ensure the new W-4 does not result in less being withheld than required by the IRS. If so, you cannot enter the W-4 and you must let the employee know it will not be entered in the system.

Year 2025 rates are provided for comparison purposes.

The Social Security Administration is mailing educational correspondence to employers that submit Form W-2s which contain employee names and Social Security numbers that do not match SSA’s records. This letter is to provide employers with resources to help ensure accurate year-end reporting. Employers may also receive letters if there are any name/SSN errors on W-2 reporting. The letters come directly to OMES. Each agency will be notified of any name/SSN errors reported that apply to the agency.

Along with the SSA letters discussed in the article above, IRS information reporting penalties may apply for failure to file and failure to furnish correct information returns. A penalty for failure to file correct information returns can be up to $340 per form, indexed annually. A penalty for failure to furnish a correct information return could also apply to the same error if an employer furnished an incorrect form to an employee and failed to file a corrected Form W-2. If both penalties are assessed, the amount could be as much as $680 per Form W-2.

In addition, the penalty applies to the ACA reporting Form 1095-C. For one employee with an incorrect Name/SSN combination who receives both a W-2 and a 1095-C, the total penalty could be as much as $1,320. IRS enforcement of accuracy-related penalties is evolving, and penalty assessment may be increasing.

OMES verifies employee name and SSN combinations several times throughout the year through the SSA website. Agencies with mismatched results are notified and are required to correct the wrong information timely to ensure year-end reporting is correct. This process helps to ensure accurate reporting and reduces the risk of information reporting penalties.

When entering a new employee’s name and Social Security number or updating a current employee’s name, please verify the name and SSN being entered is exactly as it appears on the employee’s Social Security card. This is critical in reporting not only the W-2 wages at year-end but the Affordable Care Act required health offer/coverage information as well. If the name and SSN do not match the Social Security Administration records, the employee’s wages may not be credited to their Social Security account. Additionally, if the name and SSN do not match, the employee may not be reported correctly for ACA purposes which could result in an IRS letter to the employee for possible lack of health coverage or an IRS letter to the agency for not offering coverage.

Since September 2007, when the Social Security Administration updated the Social Security card, the cardholder’s name will always be printed on two lines with the last name printed directly below the first and middle names. If you receive a prior version from an employee and are unsure, please ask the employee to verify the first, middle and last names.

Additionally, compound names do not need to be hyphenated. If an employee provides a name with an apparent compound or multiple last names, ask the employee which name is the beginning of the last name and which (if any) is the middle name.

Please ensure the employee completes the business process in Workday@OK in a timely manner. Not having the information entered will cause issues with year-end reporting. In addition, other required processes and reporting (such as E-Verify, new hire report and retirement files) are delayed when this information is not timely entered and in a complete status.

You may enter the name that the employee currently uses as their Preferred Name if desired so that their paycheck will continue to reflect the same name as in the past, but the employee record and W-2 information should match the Social Security card for the Legal Name.

In planning your work for December, it is important to remember that the state holidays for Christmas this year are Wednesday and Thursday, Dec. 24 and 25. Additionally, the New Year’s Holiday is on Thursday, Jan. 1, 2026. With these dates in mind, please adjust your payroll processing schedules as needed. All payroll documents must be received by 3 p.m. five business days before the actual pay date to ensure adequate time for audit and processing.

Transparency (OpenBooks) files are due no later than the fifth business day of the following month. Files must be sent promptly in order 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.

All 1099 forms will be distributed as Adobe PDF files through email between Jan. 14-16, 2026. Agencies should retain the PDF files provided in January for any supplier requests and for at least a minimum of three years for record retention.

Please email your agency's contact information to payrollreporting@omes.ok.gov with the following details for a primary and alternate contact:

• Agency number
• Agency name
• 1099 contact name
• 1099 contact phone number
• 1099 contact email address

Note: This does not apply to Higher Ed Institutions; these institutions will process their own 1099 reporting.

Agencies are required to print and mail all 1099 forms. The forms can be printed on standard 8 ½ x 11 paper, trifolded and fit in a Standard No. 10 windowed envelope. Sample printed forms can be provided if requested. For sample forms, contact Alicia Reel at 405-522-1099 or alicia.reel@omes.ok.gov.

Note: This does not apply to Higher Ed Institutions; these institutions will process their own 1099 reporting.

The year-end 1099 Report is available for each agency to run in PeopleSoft Financials at any time. The path for this report is: Accounts Payable, Reports, Payments, Misc Tax Information Report. 

Make sure the dates include 01/01/2025-12/31/2025. This report reflects the 1099 data from PeopleSoft vouchers. Be advised that any supplier with a 1099 Flag of “N” on the report will NOT receive a 1099 unless they are paid using a medical or legal account code.

The final report must be processed by agencies no later than Jan. 3, 2026, but preferably by Dec. 31, 2025. 

For changes to a Supplier Profile, agencies must submit an updated W9 from the supplier to OMES Central Purchasing using the Central Purchasing ServiceNow 1099 Update. Please submit corrections to OMES by Wednesday Jan. 07, 2026.

NOTE: This does not apply to higher education institutions; these institutions will process their own 1099 reporting.

Any agency needing to submit an additional file for 1099 MISC or 1099 NEC reporting should use the 1099 Detail File Format listed on the CAR Accounting Forms webpage. Instructions for this file format and an Account Code Cross Reference list can be found on the same webpage. Due to the sensitive nature of the data, please submit your password-protected file by email to Alicia.Reel@omes.ok.gov. It is recommended that these agencies submit a test file by Dec. 17, 2025, to have a Name and TIN Match done with the IRS. Final information is due Wednesday, Jan. 07, 2026.

Beginning with tax year 2020, the IRS reintroduced Form 1099-NEC to report non-employee compensation (formerly Box 7 on 1099MISC). This form will only contain non-employee compensation reported in Box 1 and reporting to the IRS will be due by Jan. 31, 2026. Any corrections must be returned by Jan. 26, 2026, so they can be entered in the file due to the IRS by Jan. 31, 2026. Any corrections needed after this date should still be sent to OMES for correction and notification to the IRS. This will ensure our reporting is as accurate and complete as possible. The IRS has revised Form 1099-MISC for reporting all other types of income.

Please note the following procedures pursuant to such changes to 1099 documents:

• For missing addresses, address changes, name or FEI/SSN changes to the 1099 document only, please send a copy of an updated W-9 to alicia.reel@omes.ok.gov.
• If a change to the permanent supplier file is needed, please submit an updated W-9 to Central Purchasing using the Central Purchasing ServiceNow 1099 Update.
• For all amount changes to the 1099 document, please submit your change to alicia.reel@omes.ok.gov. Please send the appropriate documentation that explains the nature of the transaction changes. 
• Any changes that need to be made after Jan. 26, 2026, still need to be sent to OMES as soon as possible and we will forward the information to the IRS.

NOTE: This does not apply to higher education institutions; these institutions will process their own 1099 reporting.

The Tax Cuts and Jobs Act of 2017 added Internal Revenue Code (I.R.C.) Section 6050X, which imposes a reporting requirement on certain government entities involved in settlements where I.R.C. Section 162(f) applies. Section 162(f)(1) disallows any deduction for amounts paid or incurred by a taxpayer, to or at the direction of a governmental entity, for violation of a law or the investigation or inquiry by such entity into the potential violation of a law. However, Section 162(f)(2) provides exceptions for amounts related to restitution, remediation and costs incurred by a taxpayer to come into compliance with a law.

Beginning with tax year 2022, the IRS required governmental entities to file IRS Form 1098-F for amounts required to be paid pursuant to a suit, court order or agreement with respect to any violation of law or the investigation or inquiry into the potential violation of a law, if the aggregate amount involved in all suits, orders or agreements in relation to the violation of the law equals or exceeds $50,000 (threshold may change in future years).

• Reporting is required for a suit, order or agreement that becomes binding on or after Jan. 1, 2025.
• The amount required to be paid includes costs to provide services or to provide property.
• A separate Form 1098-F must be filed with respect to each payer that is a party to the suit, order or agreement.
• Form 1098-F is not required for any person who doesn’t have a payment obligation or obligation for costs to provide services or to provide property.
• Forms are due to payers by Jan. 31, 2026.

Instructions for IRS Form 1098-F can be found here. 

A reporting document has been created for state agencies to provide OMES with the required information to create the 1098-F forms. Please complete and submit the reporting document just as soon as possible but no later than Jan. 16, 2026, to payrollreporting@omes.ok.gov.

NOTE: Institutions of higher education will not submit any information to OMES for 1098-F reporting. Please consult your tax accountant if you feel reporting may be required.

Agencies that have collected backup withholding on miscellaneous claims must submit payment to be received by OMES before Dec. 31, 2025. Please make interagency wires payable to the State Contribution Fund (Vendor 0000000467, ADDR # 002, LOC # 0002). After processing the payment, please notify OMES Central Payroll at payrollreporting@omes.ok.gov.

There are no trainings being offered at this time.