September 2026 Payroll News

Once again, bad actors are attempting to defraud employees by submitting requests to change banking information. This issue is ongoing, so please remain vigilant and cautious when receiving requests to update payroll information.

To help prevent fraudulent changes, all requests to update payroll information should be verified. Employees should make payment election changes directly through Workday@OK, as outlined below.

For any exceptions, follow these best practices:

• Personnel who handle employee direct deposit changes should verify each request by personally contacting the employee using a known phone number or Microsoft Teams. Verify information such as the employee ID number and employment start date.
• Do not contact the employee by replying to the email requesting the change. Make direct contact using a trusted method to ensure you are communicating with the employee and not someone impersonating them.
• Agencies are encouraged to establish a time delay for changes to direct deposit information to help reduce the risk of wage theft.
• If you receive a suspicious phone call or email, call the OMES Service Desk at 405-521-2444 or contact your organization’s appropriate IT or security support team.

Employee direct deposit verification of bank routing number

With employee self-service in Workday@OK, employees should enter their direct deposit information directly, in accordance with OAC 260:25-25-16.

If an agency makes an exception and enters an employee’s direct deposit information on the employee’s behalf, the employee must complete the HCM-73 Automatic Deposit Transmittal form and provide it to the agency along with an official document from the financial institution.

Bank deposit slips should not be used to obtain the bank routing/transit number for setting up direct deposit. A voided check from the employee is the most reliable method.

If an employee does not have a voided check or wants to deposit funds into another type of account, they should contact their financial institution directly to obtain the correct routing/transit number.

Important note: A bank routing/transit number should never begin with the digit 5, as this indicates a branch number and will cause the direct deposit to fail. If a direct deposit fails, the funds will not leave OST, and the agency will need to take additional steps to ensure the employee is paid.

The OMES payroll support team is still actively converting state agencies to the biweekly payroll schedule. More than 75% of state employees are currently paid on a biweekly schedule. Agencies that wish to convert from monthly to biweekly payroll should 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 review all aspects of the agency’s conversion. State agencies can submit a Payroll Support request with any questions or when they are ready to convert to biweekly.

Biweekly payroll offers agencies benefits such as improved recruitment and competitiveness with private industry, no minimum leave balance requirements, fewer payroll errors or overpayments, consistent timesheet submissions, no blackout periods, ease of overtime calculations paid on the current paycheck, more flexible work schedules with fewer updates, and no salary rounding if also going to hourly pay.

Employees benefit from consistent biweekly paydays every other Friday, easier budgeting, no switching to/from supplemental payroll due to low leave balances, and fewer retro transactions, capturing accurate pay 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 request, and a team member will assist you.

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

• For audits refunding 2026 HSA withholdings, processing the refund in the same calendar year will prevent the agency from having to complete a W-2C. If refunds are processed in calendar year 2027, agencies will be responsible for completing W-2Cs for those employees.
• For audits refunding prior-year HSA withholdings (2025 or earlier), agencies are responsible for completing W-2Cs for those employees after the refund has been processed. You should send employees their copies of the W-2C, while Copy A needs to be sent to OMES HCM Central Payroll. Please contact Jean Hayes at 405-522-6300, jean.hayes@omes.ok.gov or payrollreporting@omes.ok.gov with any questions.