The updated Statewide Accounting Manual is now available on the OMES CAR webpage. Revisions have been made to reflect new legislation effective this fiscal year.

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.

A PeopleSoft bug is affecting the matching status on purchase orders when users attempt to change the supplier location on the PO. When the location change is made, the matching status of the PO is also changed, and users cannot save any changes due to the change in matching status. When the supplier location on the PO has been inactivated, users are unable to voucher against the PO, and the only workaround is to close the PO and open a new PO with an active supplier location.

While Oracle is aware of the issue and working on a solution, the solution may not be immediately available. As a result, OMES has removed location matching on all POs. If an agency is notified of a location inactivation for an active PO, the PO will continue to use the inactive location. When the agency vouchers against this PO, they will update the supplier location on the voucher to an active location and proceed with payment.

We understand that this means agencies will need to manually update the location on every voucher that is paid; however, we believe this to be a simpler alternative to closing the PO and opening a new one. If this process is too cumbersome, we recommend agencies close the original and open a new PO with an active location.

Once the fix for this issue is placed in PeopleSoft, OMES will turn on location matching again.

For any additional questions regarding this issue and workaround, please submit a ServiceNow ticket.

As a reminder to agencies, please do not cancel PeopleSoft jobs on the Process Monitor. When an agency user cancels a payroll voucher build process that has been running for an extended period of time, the vouchers are lost and cannot be recovered.

If a job is running for an extended amount of time, please submit a ServiceNow ticket requesting Enterprise Financials to notify OMES of the long-running job. We can then investigate and provide guidance on how to resolve the issue.

The Government Services Administration (GSA) has posted revisions to its schedule, which we use for travel, effective Oct. 1, 2026. The federal Standard CONUS per diem rate for lodging increased and the meals/incidentals rate (our per diem) did not change. Some of the non-standard areas with higher rates may have changed from covered to non-covered and vice versa. Furthermore, the Oklahoma City/Oklahoma County lodging rate increased and the meals/incidentals rates did not change.

The rate change is effective for travel occurring on and after Oct. 1, 2026, which is the start of the 2027 federal fiscal year. Visit the GSA website to access or download the rates.

If you or a colleague will be out of the office, you can delegate workflow approvals to another individual for a defined period of time to ensure 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 Central Accounting and Reporting (CAR) hosts an ongoing series of 30-minute virtual training sessions for state finance personnel. Select the links below to register for the upcoming sessions.

• Nov. 4 at noon: PeopleSoft Tips and Tricks
  • Agency registration 
  • Higher ed registration

• Dec. 8 at noon: 1099 Forms Overview
  • Agency registration
  • Higher ed registration

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

• Lapsing Funds
• Internal Controls and Segregation of Duties
• Encumbrance Corrections
• GAAP Package Overview
• Payroll Funding Corrections
• Warrant Replacements
• Accounts Receivable Regular Deposits

The 2026 legislative session resulted in several bills affecting state procurement and contract administration.

Key areas of impact include:

• Additional reporting requirements in annual budget requests.
  • Beginning with fiscal year 2028 submissions, agencies must now submit information for all contractor and consulting engagements as part of their budget requests. Reporting data should include both current contracts and any projected or pending contracts included in the agency's FY 2028 budget request (HB 3413).
• New contract classification requirements.
  • OMES is developing functionality within PeopleSoft Financials for agencies to identify contracts as either professional services or staff augmentation (HB 3414).
• Contract document transparency.
  • Starting Nov. 1, attachments for all state contracts will automatically be pulled from PeopleSoft and published to a new transparency portal (HB 3415).
• New contract management expectations.
  • Agencies must submit an updated Authorized Signatures and Primary Contact Form (CP001) by Friday, Oct. 30. The revised form requires agencies to designate a contract manager responsible for coordinating contract management and oversight.
• Updated Oklahoma Purchasing Manual.
  • The Oklahoma Purchasing Manual has been revised to incorporate new legislative requirements and provide updated guidance for agency leadership and certified procurement officers (CPOs).

OMES Central Purchasing will continue communicating changes with CPOs to ensure teams are prepared before these bills take effect Nov. 1. For additional information, please review the full announcement linked below.

Beginning Oct. 8, the Supplier Registration phone line will support suppliers only. The registration team will continue assisting agencies through ServiceNow, reserving the phone line specifically for supplier requests.

For registration support:

• State agencies and higher education partners: Submit a Central Purchasing Registration ServiceNow request or email the OMES Service Desk.

• Payees: Email OKSuppliers@omes.ok.gov.

This change helps the Supplier Registration team maintain a dedicated communication channel for suppliers while ensuring accurate tracking and timely service to agencies. Thank you for your partnership as we continue improving the registration experience for everyone we serve.

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 lead to misidentification, i.e., finding someone who is not the intended person. To search by SSN, go to the search bar and enter “ID:” and then the nine-digit SSN without dashes (e.g., ID:123456789).

In planning your work for November, Veterans Day will be observed on Wednesday, Nov. 11. The Thanksgiving holiday is recognized on Thursday, Nov. 26, and Friday, Nov. 27.

November biweekly payroll for state agencies will be paid on Friday, Nov. 13, and Wednesday, Nov. 25.

November monthly payrolls will be paid on the last working day of the month, Monday, Nov. 30.

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

SUPPLEMENTAL: Supplemental payroll is set to pay on Thursday, Nov. 12. Agencies must have the payroll processed and paperwork forwarded to OMES by Wednesday, Nov. 4.

BIWEEKLY: Biweekly payroll is set to pay on Friday, Nov. 13. Agencies must have the payroll processed and paperwork forwarded to OMES by noon on Thursday, Nov. 5.

The next biweekly pay date will be Wednesday, Nov. 25. Agencies must have the payroll processed and paperwork forwarded to OMES by noon on Wednesday, Nov. 18.

MONTHLY/LEGISLATIVE MONTHLY: Monthly payrolls will be set to pay on Monday, Nov. 30. Agencies must have these payrolls processed and paperwork forwarded to OMES by noon on Thursday, Nov. 19.

The 2017 Tax Cuts and Jobs Act suspended the tax-free exclusion of qualified moving expenses paid to or on behalf of an employee by an employer. The suspension period was for tax years beginning Jan. 1, 2018, through Dec. 31, 2025. The One Big Beautiful Bill made permanent the taxability of moving expense payments.

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. Delaying could also cause issues with collecting the employee taxes if the employee has terminated employment.

For any amounts paid directly to the employee through the Workday 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, you must pay any associated payable time using the on-demand process by selecting Create Replacement Payment. Workday@OK does not change those hours from paid status back to approved status to be included in a retro or the next main payroll. However, to mitigate any wage and tax balance discrepancies, best practice is to not process another payroll before the reversal is complete.

If processing a new payroll before the reversal is complete, the on-demand option to select will be Create Additional Payment. Agencies will need to 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.

For assistance processing the on-demand payment, please submit a Payroll Support request.

O.S. 47 § 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 Fleet Management, the agency must complete OMES CAM FM 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: A cents-per-mile method may also be used by most state employees.
• Lease Value Rule: Elected officials or employees whose compensation is at least as great as a federal government employee at Executive Level V (for 2026: $184,900) are not allowed to compute taxable income under the Commuting Rule. These officials and employees must use the 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 the vehicle usage be included 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 being withheld. Additionally, up-to-date reporting of vehicle usage will benefit the agency should the employee terminate during the year.

For more information, please email HCM Central Payroll.

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 O.S. 62 § 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 submit a service request 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 (O.S. 62 § 34.80). Notification should include the warrant number, warrant date and must be signed by an agency approving authority. Please submit a service request 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. Please email HCM Central Payroll.

In planning your work for November, it is important to remember Veterans Day will be observed on Wednesday, Nov. 11. The Thanksgiving holiday is recognized on Thursday, Nov. 26, and Friday, Nov. 27. 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.

Agencies should now run the Miscellaneous 1099 Tax Information Report to review transactions from January-September. 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 address 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.

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 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 their social media posts promoting the agency. Gifts or services related to this type of relationship are considered taxable income when the cumulative value to an individual influencer is $2,000 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 2026, the 1099 Detail File Format spreadsheet must be completed and submitted no later than Wednesday, Jan. 6, 2027.

If you have any questions, please contact Alicia Reel at 405-522-1099 or alicia.reel@omes.ok.gov.

NOTE: This does not apply to higher ed institutions, which will process their own 1099 reporting.

All 1099 forms will be distributed to agencies as an Adobe PDF file through email on Jan. 13-15, 2027.

Action requested: Please submit the following information to payrollreporting@omes.ok.gov to ensure your agency receives your 1099 forms:

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

NOTE: This does not apply to higher ed institutions, which will process their own 1099 reporting.

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