September 2025

Agencies are reminded to update the authorized signer(s) for their existing Repetitive Wires & Non-Repetitive Wires Authorization forms when there are changes in administration and personnel. Affected agencies may send the updated authorization forms to the OST wire desk.

In addition, agencies should check for and request the deletion of obsolete repetitive wire authorizations. Contact the OST wire desk with any questions. 

The Financial Reporting Unit (FRU) would like to update all concerned parties on some GAAP package matters.

• Package A: Generally, the amount reported on Line 8 on Package A should agree with the reconciled amount on your Form 11 for June (Section D, Line 3). The instructions for Package A will be updated going forward for increased clarity on this matter. If you believe the amount reflected on the Form 11 for June for your agency does not accurately reflect the June 30 balance of your agency’s clearing account, please give a brief explanation on Line 11 of Package A along with adequate supporting documentation.
• Package P: Thank you for your patience on Package P. This has been delayed while FRU works to implement new and required accounting standards related to compensated absences. Our anticipation is that the calculations related to these amounts will be done by FRU staff and that the updated Package P will be primarily used to provide supporting information. Deadlines related to this will be adjusted accordingly.
• Package Z: Package Z will roll out soon. It will include schedules asking agencies to 1) provide reconciling information between federal expenditure amounts and total expenditure amounts on a line-item basis, and 2) reconcile ending federal cash amounts per ALN to cash balance accounts. Package Z instructions will be updated accordingly, and FRU staff will provide instruction and clarification as needed.

Once again, thank you for your patience on these matters. We appreciate and support your commitment to accurate financial reporting.

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.

OMES has experienced an increase in state agencies submitting payroll documentation after the deadline. As a reminder, state agency payroll documentation is due no later than noon five business days before the pay date. All required documents must be submitted by the deadline to ensure adequate time for audit and processing.

The timely submission of payroll documentation is critical for processing in Workday@OK. Payroll is completed and released by pay groups, not individual agencies. All agencies within a specific pay group must submit their documentation before the payroll of all agencies in that pay group can be completed and released. For example, agencies that process monthly payroll are all grouped into the monthly pay group (except for project agencies). All monthly pay group agencies must be finished with their payroll and have their documentation submitted for this pay group to be completed. If even one agency in the pay group is not finished on time, payroll cannot be completed for any of the agencies.

If an agency is late in submitting its payroll documents, a notice will immediately be sent to agency leadership, and it could also result in a hold on the late agency’s payroll. If placed on hold, the payroll will not be completed on the designated processing day. To process the payroll, the payroll results must be recalculated for the hold to be removed. Recalculating the payroll may cause the agency additional work, since the recalculation will pull in employee changes related to the period being processed. This will require new reports and reconciliations, which will result in agency payroll processors having to put more time into that payroll.

The noon deadline is required because processes can take upward of three to four hours, depending on how many payrolls are being released for the day. At noon, the final payroll documentation is reviewed for payrolls being completed that day. After this review, the payroll begins to be processed. Once payrolls have been completed in Workday@OK, the data flows to other systems; because of these systems' processing deadlines, this payroll information cannot be late. Payment information is processed in a file that is sent to the state treasurer, and files are processed to PeopleSoft Financials to support the posting of payment and project information, HR accounting lines and allocations. Submitting payroll documents on time is key to meeting other deadlines for all these downstream processes.

OMES will be decommissioning the PeopleSoft HCM system over the next year. To complete the project, the following steps will be taken:

• Sept. 2, 2025 – Institutions of higher education will have 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 will have access removed.

OMES personnel will have access to the system due to the statute of limitations remaining in effect. Once agency access has been removed, please submit a service ticket if you need assistance with anything. Within Workday, Prism holds employee information in a manner similar to the Legacy Data Warehouse in PS HCM. In the Workday@OK search bar, input “Prism” to see available reports.

The One Big Beautiful Bill Act, enacted on July 4, 2025, includes a provision for no taxes on the premium portion of overtime pay. Eligible individuals who receive qualified overtime compensation that is required by the Fair Labor Standards Act (FLSA) may be able to claim a deduction on their personal tax return. Payroll taxes must still be withheld from all overtime compensation, with both the wages and taxes reported on the employee's W-2 form. The IRS has released a fact sheet explaining this provision and others. The OMES Central Payroll and Payroll Support teams are waiting for IRS guidance on how to report qualified overtime compensation on the W-2 form. Once this guidance has been provided and any necessary updates have been implemented in the Workday@OK system, state agencies will be notified, at which point the information can be communicated to employees. Employees with specific tax-filing inquiries should consult their tax advisors.

NOTE: Institutions of higher education should regularly monitor IRS guidance to ensure all new and existing reporting requirements are met.

The OMES Payroll Support team is still actively converting agencies to the biweekly payroll schedule. More than 70% of state employees are now paid on a biweekly schedule. Agencies that wish to convert from monthly to biweekly payroll will need to first consider the estimated cost of leave to be paid during the conversion gap period and provide a financial plan to the state comptroller for review. Once approved, the agency will meet with the Payroll Support team to go over all aspects of the agency’s conversion.

Agencies that have switched to biweekly payroll have enjoyed advantages:

• Better recruitment and competitiveness with private industry.
• No minimum leave balance policy.
• Fewer payroll errors or overpayments.
• Consistent timesheet submissions.
• No need for employee blackout periods.
• Ease of overtime calculations and payment on the current paycheck.
• Reduced schedule updates as a result of having additional work schedules available.
• No need for salary rounding if also going to hourly pay.

By having payday every other Friday, employees enjoy advantages:

• Greater consistency.
• Easier budgeting of personal expenses.
• No need to switch to/from supplemental payroll due to low leave balances.
• Fewer retroactive transactions, as all owed pay is captured during the period worked.

When processing benefit corrections for payouts or refunds of benefit allowances and insurance premiums, agencies must ensure that employee and employer taxable wages do not drop below zero. A negative taxable wage is incorrect and may result in tax refund errors. If this occurs, the agency will be notified and held accountable for both the employee and employer tax contributions required to correct the situation. After completing all benefit entries, review the payroll thoroughly. If you have any questions, please submit a Payroll Support ticket, and a team member will assist you.

Agencies that have received HSA refund audits from the OMES HCM Employee Benefits Department should process employee refunds as soon as possible, and no later than the last paycheck of this calendar year.

• For audits refunding 2025 HSA withholdings, processing the refund in the same calendar year will prevent the agency from having to complete a W-2C. If such refunds are processed in calendar year 2026, agencies will be responsible for completing W-2Cs for those employees.
• For audits refunding prior-year HSA withholdings (2024 or earlier), agencies are responsible for completing W-2Cs for those employees after the refund has been processed. Employees should receive their copies of the W-2C, and Copy A will need to be sent to OMES HCM Central Payroll. Please contact Jean Hayes with any questions:
  • 405-522-6300
  • jean.hayes@omes.ok.gov or payrollreporting@omes.ok.gov

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 go paperless only. When you choose 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 it 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.

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

Most state agencies can find the request form by navigating to Information Services > Access & Accounts > PeopleSoft Financials Access Request in the ServiceNow catalog.

For higher education entities, follow these step-by-step instructions to create an account in the ServiceNow government portal, then navigate to Information Services > Access & Accounts > PeopleSoft Financials Access Request.

For a faster response, you can get prior approval from your decentralized security representative (DSR) and include it in your request.

As a reminder, higher education employees had their access to the state’s PeopleSoft HCM system removed on Sept. 2. This access is no longer needed, as the Alpha List Load has transitioned to PeopleSoft Financials, and the statute of limitations pertaining to the years these institutions were on the state’s system has passed. The institution's record is the system of record, since not all information was provided on the file loads to process the payrolls.

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 help you 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 just want 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

Employees of 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. 

FLSA: Overview for Employers and Payroll Professionals

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

For more information, please visit their website.

• 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: ODOT Training Center, 5307 N.E. 122nd St., Oklahoma City, OK 73131

Visit the AGA OKC Chapter website for more information