Effective July 1, the Internal Revenue Service (IRS) has revised the standard mileage reimbursement rate to $0.76 per mile. Please note this is an increase from the $0.725 IRS rate during the first half of 2026. All state agencies may use the new $0.76 rate for travel incurred on and after July 1.

The Trip Optimizer law is still in place for determining the lowest cost of transportation for travel on state business. The new $0.76 rate is now used for the mileage calculation and for the OMES mileage reimbursement amount referenced in paragraphs E and F of 74 O.S. § 85.45l.

The FY 2027 interest rate applicable to late payments to vendors has been set at 3.68% per annum, or $0.0102 per $100 per day. This rate is effective July 1, 2026, through June 30, 2027.

This interest rate is provided by the State Treasurer based on the average interest rate for 30-day time deposits of state funds during the last calendar quarter of the last preceding fiscal year. (O.S. 62 § 34.71 & 34.72, O.S. 74 § 500.16A and OMES Prompt Payment Rules/Regulations).

According to O.S. 74 § 500.2(F), state agencies may directly acquire commercial airline tickets intended for employees engaged in approved out-of-state travel. The statute specifically excludes non-employees from its provisions, meaning agencies are not permitted to buy airfare for individuals who do not work for the state. Non-employees must secure their own airfare and may request reimbursement, as outlined in O.S. 74 § 500.2(A).

Non-employees are defined as “Persons who are not state employees, but who are performing substantial and necessary services to the state which have been directed or approved by the appropriate department official.” Individuals serving as state board members and commissioners are considered state employees as per the Oklahoma Personnel Act, so agencies may continue purchasing flights directly for board members and commissioners.

OMES Central Accounting and Reporting (CAR) hosts an ongoing series of 30-minute virtual training sessions for state finance personnel. June and July trainings were paused to accommodate fiscal year end. Sessions will resume in August.

Need a refresher? Select the links below to review past sessions.

• May 11: GAAP Package Overview
• April 16: Encumbrance Corrections
• March 11: Payroll Funding Corrections
• Jan. 15: Warrant Replacements
• Nov. 6: Accounts Receivable Regular Deposits

If you or a colleague will be out of the office, you can delegate workflow approvals to another individual for a defined period to ensure that critical items continue to progress without delay.

The PeopleSoft Financials Delegation user guide outlines the steps to delegate requisition approvals, purchase order approvals, travel authorizations and other workflow actions without granting unnecessary access or submitting a support ticket. You may also review any items that were routed to your delegated approver during your absence.

OMES is accepting the final budget report with prior year (FY 2026) allotment deficits as long as the PeopleSoft Financials Allotment Budget and Available Cash (ABC) report is also provided, showing available amounts.

FY 2026 will show on the budget report with no allotment available, which will create a false deficit. We are working on a solution for the report, but until then, the ABC report for any prior fiscal year deficits will be accepted. The ABC report should have the class fund, department, fiscal year and allotment available highlighted for any prior fiscal year deficits.

No deficits for FY 2027 allotments or cash will be accepted. The payroll will be released once verified that all funding is available.

An employee’s legal name and Social Security number (SSN) must be verified against the employee’s Social Security card. If the name or number on the Social Security card does not match what is entered in Workday@OK, the change should not be approved.

Name changes should be made based only on the Social Security card, not a driver license, marriage certificate or other documentation. Request that the employee provide an updated Social Security card before any change is made in the system. Employees must apply for a replacement card with the correct legal name and SSN combination through the Social Security website.

Agencies are reminded to review RPT00234 - Deductions Register for employee contribution amounts. The combined contribution amount for the SoonerSave pretax and Roth plans must equal the minimum required contribution for the period (biweekly = $11.54; monthly = $25.00). 

Payroll claims for hours worked in fiscal years 2026 and 2027 on one payroll fund transfer file will record payroll expenses to the institution’s operating funds with bud refs 26 and 27. The claim number will begin with 27, which will require that all class 78900 transactions on the PFT file be recorded with bud ref 27.

The first two digits of the claim number determine which 78900 budget is used for the net payroll vouchers, so all 78900 transactions on the PFT must be recorded with bud ref 27 to ensure the same allotment budget is used. Please ensure the FY 2027 78900 allotment budget is sufficient for the FY 2026 expenses paid in July and August 2026.

If a payroll contains only FY 2026 expenses: The claim number will be 26aaaxxxxx and the PFT bud ref will be 26.

If a payroll has FY 2026 and FY 2027 expenses: The claim number will be 27aaaxxxxx and the PFT bud refs for the operating funds (290, 430, 700) will be as applicable and the 789 bud ref must be 27.

If a payroll contains only FY 2027 expenses: The claim number will be 27aaaxxxxx and the PFT bud ref will be 27.

When OMES processes an institution’s payrolls, the warrants are listed on the AP Check Register the following day. Payroll personnel should verify with finance personnel that the payroll is listed on the report to ensure the payroll has been processed.

If an expected payroll is not listed on the register, please email payrolltransprocess@omes.ok.gov.

Agencies should now run the Miscellaneous 1099 Tax Information Report to review transactions from January-June. The report is available in PeopleSoft Financials at Accounts Payable > Reports > Payments > Misc Tax Information Report.

Agencies should review the following items:

• Name and tax ID number (TIN): These must match the information on the supplier's W-9, which designates the name and TIN the supplier uses to report their taxes to the IRS, state Tax Commission and Secretary of State.
  • If the information does not match, please request an updated W-9 from the supplier.
• 1099 flag: Y means the supplier should receive a 1099. 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 is when the payment is for legal or medical services. In most cases, state employees should have an N 1099 flag. All other nonexempt suppliers should have a Y 1099 flag.
  • If there are any questions about a supplier's 1099 status, please request an updated W-9 from the supplier and send a copy to OMES Central Purchasing to update the supplier profile.
• Address 1: This is the supplier's official address reported to the IRS and the designated address for 1099 reporting. If the supplier has an N 1099 flag, any new addresses provided will be added as a different location, but Address 1 will not change.
  • If Address 1 should be different, please submit a change request to OMES Central Purchasing and attach an updated W-9 from the supplier.
• Vouchers: Review all vouchers processed for each supplier to ensure the correct amount and accounting code are listed for the proper vendor.
  • Make any voucher corrections at the agency level.

Note: This does not apply to Higher Ed Institutions, which will process their own 1099 reporting.

In July, OMES will complete IRS TIN matching to ensure we have documented accurate names and tax ID numbers for all suppliers that have received 1099 reportable payments in the first half of tax year 2026. This will allow us to to provide more accurate information at year end.

We will notify agencies if any supplier information does not match with the IRS. Please be ready to respond promptly if/when you are notified. Please contact Alicia Reel at 405-522-1099 or Alicia.Reel@omes.ok.gov if you have any questions.

Note: This does not apply to Higher Ed Institutions, which will process their own 1099 reporting.

July 2026 webinar: The Psychology of Accountability, Communication and Team Effectiveness in Payroll

• July 17: Noon to 1:15 p.m.
• Live webinar.
• Learn more.

2026 Annual Statewide Conference

• Aug. 28: 7:45 a.m. to 5 p.m.
• Grand Casino Hotel and Resort: 777 Grand Casino Blvd., Shawnee, OK 74804
• Learn more.

Upcoming employee services webinars:

• Aug. 19
• Oct. 21

Learn more.

This recorded session focuses on the specialized procedures for handling payroll and reporting requirements for deceased employees.

Access live recording.