October 2025

Thank you to the 200 people who attended the inaugural Crash Course with CAR session last month! These 30-minute virtual training sessions are designed to help you master key financial processes in state systems. Our next topic is Payment Cancellations on Oct. 10. This session will be targeted to accounts payable staff and managers, but everyone is welcome to attend.

Most state agencies will register through Workday@OK.

• Oct. 10: Payment Cancellations
• Nov. 6: Accounts Receivable FAQ

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

OMES has released updated versions of two commonly used forms:

• Agency Clearing/Special Account Reconciliation Form 11
  • Modernized and simplified for use with both clearing and special accounts.
  • Includes locked cells and cell lookups that autopopulate specific sections, providing a streamlined reconciliation view.
• Mainframe Access Request Form 90
  • Modernized and simplified.

Please download the updated forms immediately from the OMES CAR Accounting Forms page to ensure consistency and accuracy.

Deposit reminders

Deposits of incoming funds are a two-step process:

1) The funds are deposited into a bank: Cash and checks are taken to the bank, checks are deposited via RDC machine, checks are received through a lockbox, or checks are deposited directly at the OST window at the Capitol.

2) The deposit is recorded in PeopleSoft Financials, the state accounting system.

A deposit is not complete until both steps are done.

Transactions must be recorded in PeopleSoft Financials within 24 hours of the deposit to the bank – recording includes completing and budget checking the transaction in PeopleSoft Financials. Not processing the deposit within this timeframe prevents OST from properly managing funds and results in loss of interest income as well as collateral risk for state funds.

Deposits that are budget checked by 10 a.m. on a business day will be posted to the treasurer’s activity statement that day. Deposits that are budget checked after that time will post to the treasurer’s activity statement on the following business day. Statewide procedures require that each deposit entered in PeopleSoft Financials match a single deposit at the bank. This one-to-one ratio is required to enable OST to reconcile cash received across the state from external bank accounts.

Fiscal appropriations for FY 2024 are due to lapse soon, most of them on Nov. 26, 2025. Agencies must complete all transactions in these funds before the various lapse dates. 

The following steps should be started immediately to ensure completion before the lapse date:

1. Run the Lapsed Funds Report – Appropriated Funds. The PeopleSoft navigation flow is: General Ledger > General Reports > Lapse Fund Adv Notice – Approp.
2. Process final payments for goods and services encumbered on FY 2024 funds.
3. Reconcile requisition and PO balances to zero or positive amounts.
4. Process any necessary change orders to move needed encumbrances off of funds appropriated for FY 2024.
5. Process any necessary Expenditure Corrections.
6. Finalize Voucher, Requisition and PO funding lines as appropriate.
7. Process Budget Revisions and Carryover Budgets through OMES Budget division as needed.

The Lapsed Funds Report – Appropriated Funds shows all appropriated funding lines that will lapse within the next 60 days as of the day it is run. Any negative encumbrances or pre-encumbrances on this report must be resolved urgently. If you are unable to resolve the differences, submit a Service Desk request using the CAR Misc. Questions catalog item. Be sure to specify the particular funding lines that have negative balances.

We are introducing a new field on the voucher page to support agency reporting needs.

Service Date Field

• A new Service Date field is now available within the Invoice Information tab of the Voucher Regular Entry page.
• This field is available for all agencies to use and may assist with additional reporting requirements.

On Aug. 29, the OMES Payroll team transitioned from the Lincoln Data Center to the Will Rogers Building. This includes HR/Payroll Shared Services, Payroll Support and Central Payroll. All in-person assistance, drop-offs and pickups will now occur at the Will Rogers Building. Please ensure agency couriers are aware of this change.

The team’s new address for all correspondence is: 

2401 N. Lincoln Blvd., Suite 302-3
Oklahoma City, OK 73105-4402

Staff phone numbers, fax numbers and email addresses remain the same.

In planning your work for November, Veterans Day will be observed on Tuesday, Nov. 11. The Thanksgiving holiday is recognized on Thursday, Nov. 27, and Friday, Nov. 28.

November biweekly payrolls for state agencies will be paid on Friday, Nov. 14, and Wednesday, Nov. 26.

November monthly payrolls will be paid on the last working day of the month, Wednesday, Nov. 26.

With these dates in mind, agency staff should plan their work accordingly:

Supplemental: Workday supplemental payrolls are set to pay on Wednesday, Nov. 12. Agencies must have the payroll processed and paperwork forwarded to OMES by Tuesday, Nov. 4.

Biweekly: Biweekly payroll is set to pay on Friday, Nov. 14. Agencies must have the payroll processed and paperwork forwarded to OMES by noon on Thursday, Nov 6.

The next biweekly pay date will be Wednesday, Nov. 26. Agencies must have the payroll processed and paperwork forwarded to OMES by noon on Wednesday, Nov. 19.

Monthly/legislative monthly: Monthly payrolls will be set to pay on Wednesday, Nov. 26. Agencies must have these payrolls processed and paperwork forwarded to OMES by noon on Wednesday, Nov. 19.

State agencies are required to have payroll documents to OMES by noon five business days prior to the pay date. All required documents must be submitted by the deadline to ensure adequate time for audit and processing. The following documents are required to be submitted by state agencies:

1. The final budget checking report showing no budget deficit.
2. The signed payroll claim document.

The paperwork should be submitted to payrolltransprocess@omes.ok.gov with read receipts turned on. On-cycle payrolls are completed based on the published schedules. Off-cycle payrolls are currently processed on Monday and Wednesday upon receipt of paperwork from all agencies in the same pay group that are processed during the same period. If any paperwork is not received by noon, the payroll for agencies in that same pay group will be held until the paperwork for ALL agencies is submitted.

Institutions of higher education have different documentation requirements. The following is required from such institutions:

1. The validated PFT Funding report showing no budget deficit.
2. The signed payroll claim document.

Institutions are required to have payroll documents to OMES by 3 p.m. five business days prior to the pay date.

Workday@OK HR partners have access to search by Social Security number (SSN) for employees to verify if they are already in the system. Searching by name or any other criteria can cause an agency to identify the wrong person. To search by SSN, go to the search bar and enter “ID:” followed by the nine-digit SSN without dashes (ID:123456789).

The 2017 Tax Cuts and Jobs Act suspends the tax-free exclusion of qualified moving expenses paid to or on behalf of an employee by an employer. The suspension period is for tax years beginning Jan. 1, 2018, through Dec. 31, 2025.

Authorized moving expenses paid directly or indirectly to or for an employee will be taxable as wages and must be processed through the payroll system. This includes payments made with the P-card and those processed through accounts payable.

If paying the employee directly (through accounts payable) or a third party for moving expenses, the agency must notify its payroll department of the amount paid. The amount must process through the payroll system as nonpaying, taxable earnings so the amount will be taxed and properly reported on the employee’s W-2. We recommend the amount be processed through payroll on the employee’s next paycheck. Delaying until the end of the year could cause a hardship for the employee by taking the taxes out during the holidays and could also cause issues with collecting employee taxes if the employee has terminated employment.

For any amounts paid directly to the employee through the Workday@OK system, taxes will be withheld from the gross amount and the employee will receive the net payment.

When a payroll warrant is reversed in Workday@OK, any payable time associated with that warrant must be paid using the on-demand process. Workday@OK does not change those hours from ‘paid’ back to ‘approved’ to be included in another payroll. Best practice is to not process another payroll before the reversal is complete; this will mitigate any wage and tax balance discrepancies. If processing a new payroll before the reversal is complete, agencies must be mindful of any wage or tax limits and process the new payroll as a paper warrant in case the original EFT amount does not come back to the state. The Central Payroll team can confirm the funds have been returned, and the paper warrant can then be distributed to the employee.

47 O.S. § 156.1, as amended, prohibits the personal use of state-owned motor vehicles but permits the use of the vehicles for commuting in very specific situations. 2007 OK AG Opinion 18 also addresses this issue.

When a state employee is allowed to commute in accordance with the statute or the attorney general opinion, the agency must notify the governor, the president pro tempore of the Senate and the speaker of the House of Representatives. In addition, when an employee is using a vehicle from OMES CAM Fleet Management, the agency must complete OMES CAM Form 022, Authorization to Commute in State Vehicle.

The IRS considers commuting to be a noncash taxable benefit to the employee, even when the use of the vehicle is for the benefit of the employer. There are very few exceptions to the taxability of commuting. Exceptions are for certain vehicles that are not likely to be used for personal use because of their design. These vehicles are listed in IRS Publication 15-B.

• The method of calculating the taxable fringe benefit is dependent on the employee’s status.
• Commuting Rule: Most state employees may use the Commuting Rule. Under this rule, the value of a vehicle provided to an employee for commuting is computed by multiplying each one-way commute by $1.50. If more than one employee commutes in the vehicle, this value applies to each employee. This amount must be included in the employee’s wages or reimbursed by the employee.
• Cents-Per-Mile Rule: The Cents-Per-Mile rule may also be used by most state employees.
• Automobile Lease Value Rule: Elected officials or employees whose compensation is at least as great as a federal government employee at Executive Level V (for 2025; $183,100) are not allowed to compute taxable income under the Commuting Rule. These officials and employees must use the Automobile Lease Value Rule to compute taxable income.
• All valuation methods are described in detail in IRS Publication 15-B.

The employee may choose to have the value included as taxable income or pay the employer for personal use rather than having it treated as wages. When treating the value as wages, the imputed income is subject to FICA and income tax withholding. The taxable amount, if not paid by the employee, must be processed through payroll so that taxes are calculated, and amounts are reported on the employees’ W-2.

The taxable amount will need to be processed through Workday@OK as a One-Time Payment, a pay input or entered on the timesheet, depending on the agency’s processing policy. The amount will be included as taxable income and will be taxed on the paycheck.

We recommend including the vehicle usage in the employee’s payroll each pay period to prevent a large sum being included in the employee’s last pay of the calendar year, resulting in a higher-than-normal amount of taxes withheld. Additionally, up-to-date reporting of vehicle usage will benefit the agency should the employee terminate during the year.

For more information, email the Central Payroll team.

If, for any reason, an agency receives a payroll warrant issued in error, the warrant should be returned as soon as possible to HCM Central Payroll for cancellation. Payroll warrants must be accompanied by an OMES Form PWC.

Warrants issued by the state treasurer which, for any cause, remain outstanding or unpaid for a period of 90 days shall be revoked and canceled under the provisions of 62 O.S. § 34.80. For warrants canceled by statute, the cash is transferred to the canceled warrant fund. Agencies will not be refunded the value of the statutorily canceled warrants.

Agencies should be reviewing the PS Financials Payroll 36-Month Statutory Cancellation Report on a regular basis.

If there is a payroll warrant listed and the employee is entitled to the funds, please complete OMES Form 20R and email it to OMES CAR Transaction Processing. This will allow a replacement warrant to be issued to provide the employee their due pay.

Agencies should be reviewing the PS Financials Payroll 36-Month Statutory Cancellation Report on a regular basis.

If there is a payroll warrant listed and the employee is not entitled to the funds, the issuing agency must notify OMES (62 O.S. § 34.80). The notification should include the warrant number and warrant date, and it must be signed by an agency approving authority. Please email notification to OMES CAR Transaction Processing, stating that the warrant should not be reissued. In addition, the amounts must be removed from the employee’s earning record. Contact Jean Hayes at 405-522-6300 or payrollreporting@omes.ok.gov.

Please verify that the correct agency address is being used in Workday@OK. The agency address can be found on the employee’s earnings statement. If the address is not correct for the agency, this should be updated. Please call the OMES Service Desk at 405-521-2444 to have the agency’s address updated in PeopleSoft Financials, which will flow over to Workday@OK.

OMES will be decommissioning the PeopleSoft HCM system over the next year. To complete the project, several steps that might affect agencies will be taken:

• Sept. 2, 2025 – Institutions of higher education have had their access removed, as announced in the August newsletter.
• Oct. 1, 2025 – All recurring and scheduled processes will be terminated.
• Jan. 2, 2026 – State agency personnel access will be removed.

OMES personnel will continue to have access to the system due to the statute of limitations remaining in effect. If anything is needed after agency access has been removed, submit a ServiceNow ticket. Within Workday@OK, Prism holds employee information in a manner similar to the Legacy Data Warehouse in PeopleSoft HCM. In the Workday@OK search bar, input “Prism” to see available reports.

In planning your work for November, it is important to remember Veterans Day will be observed on Tuesday, Nov. 11. The Thanksgiving holiday is recognized on Thursday, Nov. 27, and Friday, Nov. 28. With these dates in mind, please adjust your payroll processing schedules as needed. All payroll documents must be received five business days prior to the actual pay date to ensure adequate time for audit and processing.

The first three quarters of the 2025 tax year are now complete. It is time for agencies to run the Miscellaneous 1099 Tax Information Report, which will include all transactions from Jan. 1, 2025, through Sept. 30, 2025. This report can be found in PeopleSoft Financials at Accounts Payable > Reports > Payments > Misc Tax Information Report. Please review the following items in this report:

• The name and taxpayer identification number (TIN) must match the information on the W-9 provided by the supplier. If the information does not match, please request an updated W-9 from the vendor/supplier.
• Pay attention to the 1099 Flag: Y means the supplier should receive a 1099, while N means the supplier should not receive a 1099. A supplier does not need a 1099 if it is registered as a corporation, nonprofit or government entity (the exception to this is when a payment is for legal or medical services). In most cases, state employees should have an N 1099 flag. If there are any questions about a supplier's 1099 status, please request an updated W-9 from the supplier.
• Address 1 in the supplier file is the supplier’s official address reported to the IRS and the designated address for 1099 reporting. If the supplier’s 1099 Flag is N, any new addresses provided will be added as a different location. Address 1 will not change.
• Review all vouchers processed for each supplier to ensure that the correct amount and account code were processed for the payments to the supplier. Note that all voucher corrections must be made at the agency level.

Agencies can run this report at any time during the reporting year. At a minimum, agencies should review this report quarterly.

Any changes to the Supplier Profile (address changes, name changes, 1099 Flag corrections, etc.) must be submitted to Central Purchasing – Support using ServiceNow catalog items available on the OMES Central Purchasing Agency Registration Resources page. An updated W-9 must be included with Supplier Profile changes. If you have any questions, 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.

In the age of social media, agencies may be using social media influencers as part of their overall marketing strategy. This type of service creates an independent contractor relationship, and as such, any payments made by cash or noncash methods are considered payments for services. Influencers often receive free gifts or services, such as trips, accommodations, food or swag, in exchange for social media posts promoting an agency. Gifts or services related to this type of relationship are considered taxable income when the cumulative value to an individual influencer is $600 or more during a calendar year.

The agency will need to obtain the influencer’s taxpayer identification number using the IRS Form W-9, Request for Taxpayer Identification Number and Certification, for the income to be reported on Form 1099-NEC. For any noncash income to be reported for 2025, the 1099 Detail File Format spreadsheet must be completed and submitted no later than Jan. 7, 2026. If you have any questions, 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.

All 1099 forms will be emailed to agencies as an Adobe PDF between Jan. 14-16, 2026.

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.

• Updated date – Oct. 16 – AGA Lunch and Then Learn: in-person only, Dept. of Labor, first floor, 409 N.E. 28th St., Oklahoma City, OK 73105
• Nov. 14 – AGA Professional Development Training Day: ODOT Training Center, 5307 N.E. 122nd St., Oklahoma City, OK 73131
• Visit the AGA OKC Chapter website for more information.

From Payroll Specialist to Leader: Transforming Your Role and Impact Webinar
Friday, Oct. 24
Noon-1 p.m.
Presentation information can be accessed on the website.

Secrets of a Successful Year-End workshop
Friday, Nov. 7
8 a.m.-noon
Presentation information can be accessed on the website.