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CAR Newsletter - February 2022

Volume 32 |Number 7 | Fiscal Year 2022 | Feb. 10, 2022

In This Issue ...


BrightPath Update

  • BrightPath Agency Pulse Assessment No. 2 closed on Jan. 21. Results will be communicated to the workforce in the coming weeks.
  • Cycle 2 of End-to-End Testing is in progress. Currently, state representatives are identifying and resolving system defects.
  • Parallel Payroll Testing will begin soon. Participants will review and compare payroll results from Workday to previous payroll cycles. Representatives from state agencies will participate in this important testing phase.

Please begin sharing information with your agency colleagues about the change impacts from the Workday implementation. This is in preparation for a series of webinars beginning this month to communicate function-specific change impacts that will result from the Workday implementation later this year.

What are change impacts? Change impacts are the changes to existing processes resulting from the Workday implementation. Many change impacts are a result of new features available in Workday. Upon adopting Workday for the State of Oklahoma, many existing HR and payroll processes will change or be streamlined. For example, employees will have increased autonomy over their personal data in Workday with Employee Self-service. This signifies a change impact because, currently, employees rely on HR personnel to update much of their personal information. In the future, employees can complete tasks like updating direct deposit information or requesting time off in Workday.

How can I learn more about change impacts? Meetings will be held in February and March. Each session will be specific to a functional area affected by Workday (e.g., benefits, payroll, absence), and employees will learn exactly what changes to expect to their role when Workday goes live. Subject matter experts will also be available to answer questions. A video on the change impacts affecting State of Oklahoma employees will be released in the coming weeks and shared by agency change agents. The BrightPath website will be updated with the latest change impact information.

How can I prepare for the change impacts resulting from the Workday adoption?

  • Attend the upcoming change impact meetings and encourage your agency colleagues to do the same.
  • Attend statewide training on how to complete new tasks and processes in Workday (available this spring).

Additional resources

BrightPath website: Remember to leverage the BrightPath website for up-to-date information on the Workday implementation. Employees are encouraged to explore the website, especially the Resources page, which includes Workday educational material and FAQs. If employees have questions, they can always reach out to their agency change agent or email If you need additional accommodations to view any of the items in this document, please email


The implementation of the BrightPath project is quickly approaching. To adequately prepare, the CORE team has been focusing resources on BrightPath project tasks as well as the normal production support. In some cases, this is causing a delay in responding to requests. 

When submitting requests, make sure the OMES Service Desk is copied in your email so all requests are recorded. Please include as much information as possible for a quicker resolution. We prioritize requests to ensure timely payroll processing. If you have a request for a mass update, please submit those as early as possible so we can schedule work accordingly. We appreciate your patience as we move forward together.


Travel Training and Resources

CAR and OEDP have created created a new training and reference website for state travel and reimbursement. This website is both desktop and mobile device friendly and is organized in a way that it can be quickly referenced from the field to answer travel questions. We recommend completing the entire course and then bookmarking it for questions and reference later.

If you travel or ever plan to travel for any state business, this site is helpful in explaining travel policy, requirements and limitations. It features a few short quizzes, examples of a travel claim with completed Form 19, and detailed explanations of how to calculate per diem and mileage. There is also a section for finance officers that details the different account codes used for different types of travel and the internal forms used for finance. Be sure to check this out before your next trip on state business.

Information on Federal Treasury Offset Program

The Treasury Offset Program reviews payments to be made by the federal government for either grant draws or vendor payments to see if the payee has an outstanding debt to the federal government. All agencies of the state share the same federal employer ID number (FEI); when one agency owes the federal government, any agency’s draws or payments from the federal government can be affected. These offsets for debt may reduce payments to a different agency than the one that owes the debt.

There are several notifications that if addressed properly can relieve some of the issues related to TOP:

  • Notice of debt – Sent to the delinquent debtor by the federal agency that is owed. Goes to the last known address of the agency prior to the debt being turned over to TOP. This is the first opportunity to pay or negotiate with the federal agency notifying the debtor.
  • U.S. Department of the Treasury Notice of Debt – Sent to the address of the debtor when a collection item is turned over to TOP. The agency has an opportunity to make the payment to the Department of Treasury prior to offsets.
  • SAM Notification of Debt Subject to Offset – Sent to agencies with DUNS numbers registered with the state’s FEI when debt has either been put into or cleared from the TOP system. This debt may not be related to the agency receiving the notice.
  • TOP Offset Notice – Indicates an offset has happened and shows the amount of the original payment to be made and the offset amount. Generally sent to the agency hit with the offset and has important information that will help OMES determine which agency caused the offset.

If an agency receives either a Notice of Debt or an Offset Notice from the Department of Treasury, please forward copies of the notices to OMES CAR. OMES receives reports from TOP which may match with these notices and assist us in resolving offset issues.

Even though Higher Education agencies have switched to their own FEI for payroll and other reporting, we are seeing that in some cases their debt is still tied to the state’s FEI and causing offsets to other agencies for their debt.

When an offset is caused by debt of any state agency, including Higher Education entities, the debtor agency must immediately reimburse the agency shorted on their federal payment. Since the debtor agency did not take the necessary action when the notice of debt was sent, they cannot delay in reimbursing the shorted agency. If the debtor agency can resolve the debt as invalid, any reimbursement from the federal government will be made to the agency on record as the debtor agency. Again, these offsets can be avoided if the initial notice of debt is handled properly.

All agency finance officers must ensure that correspondence related to the TOP program is reviewed and forwarded to the appropriate division of the agency as well as forwarded to OMES CAR. This correspondence may come from the U.S. Department of the Treasury or the federal agency that is owed the delinquent debt.


Annual Comprehensive Financial Report Published

The State of Oklahoma’s Annual Comprehensive Financial Report for fiscal year 2021 has been completed and issued. The Financial Reporting unit would like to thank all state agencies for their effort and cooperation in providing timely financial information. The ACFR is available online on the OMES website.


Notification of Change Procedures

You must handle Notifications of Change in a timely manner.

A Notification of Change is a non-dollar entry that the receiving deposit financial institution transmits to the ACH operator for distribution back to the originator through the originating deposit financial institution. When the RDFI receives a prenotification or a live dollar entry that contains incorrect information, it creates this notice, which:

  • Identifies the entry that has been received at the RDFI.
  • Pinpoints the specific information on that entry that is incorrect.
  • Provides the correct information in a precise format so the originator can make the change.

Responsibilities of agencies

Agencies are required to handle the NOCs in a timely manner. The information reported in an NOC should be corrected within six banking days of receipt of the NOC information or prior to initiating another entry to the receiver’s account, whichever is later. However, agencies should not wait if the change can be made earlier.

Agencies should implement any necessary system/process edits ASAP to ensure that any subsequent transactions to the recipients in question cannot be initiated until the information reported in the NOC has been updated.

Fines and penalties for rules violations

If the agency does not correct the incorrect data upon receipt of the NOC, prior to initiating another entry, they may be subject to fines and/or penalties imposed by NACHA for the violation.

The fine for an infraction of these rules is determined on an evaluation by NACHA and can range from $5,000 to $500,000 per month. Any fines or penalties assessed by NACHA and JPM for rules violations are chargeable to the violating agency.

Repeat offenders may be subject to further consequences as repeated offences could jeopardize the state’s ability to participate in the NACHA network.


IRS Form W-4 and OK W-4 Exemption Renewal

Agencies are reminded to review and ensure employees have valid forms on file for 2022. The exemptions expire Feb. 15, and employees must submit new forms to continue exemptions for 2022. If you receive an exempt W-4 after Feb. 15, do not process a tax refund to the employee or submit one to OMES for processing. 

The W-4 will take effect on the next pay cycle; it is not retroactive to the beginning of the year. The PeopleSoft HCM query GO_PY_TAX_EXEMPT_STATUS – Fed or State Tax Exemption can be run by agencies to see who is currently claiming an exemption from income tax withholding. The IRS has posted the 2022 W-4 form on their website, and the OK-W-4 form is available on the OTC website.

Reporting Requirements for Repayments of Prior Year Wage Amounts

Repayments from employees made in the current year (2022) that are for overpayments of wages in a prior year (2021 or earlier) must be repaid at the gross overpayment amount in accordance with the IRS. A W-2C form must be completed and sent to OMES. Only Social Security and Medicare wages and taxes are corrected on the W-2C.

Do not correct federal or state taxable wages or income taxes. The employee received and had use of the funds during the year of overpayment, and the amounts are taxable for federal and state purposes. The employee may be able to consider such repayments on their current year (2022) income tax return. Please advise the employee to speak to a tax accountant.

Additional instructions for Form W-2C are available on the IRS website. For assistance, contact Jean Hayes at 405-522-6300 or

Reduction of Annual Leave Hours for Overpayments

When an employee chooses to reimburse an overpayment of salary or wages using annual leave, the amount of annual leave reduced should equal the gross amount of the overpayment.

If an employee reimburses an overpayment using terminal leave, an OMES Form 94P must be submitted to correct the retirement amounts reported on the check that included the overpayment. Terminal leave is not included in retirement wage calculations; therefore, a payroll correction is required. For assistance, contact Jean Hayes at 405-522-6300 or

Outstanding Wages Beneficiary Designation Option

40 O.S. § 165.3a allows employers to provide employees the option of designating a beneficiary for wages and benefits payable upon an employee’s death. Although this is not required, agencies may want to consider adopting such a policy. Providing the option to employees relieves stress and anxiety on the family members and provides agencies with clear guidance on who is to receive final wage payments.

This statute does not include any longevity payment that may be due as of the date of death of an employee. 74 O.S. § 840-2.18, subsection H.2 authorizes any longevity payment to be paid to the decedent’s surviving spouse, or to the decedent’s estate if there is no surviving spouse.

For more information or sample forms and instructions, email

Employee Zip Code Entries in PeopleSoft

When entering an employee’s ZIP code in the PeopleSoft HCM system, please do not type the dash (-) that goes between the first five and last four digits. The system automatically populates the dash when printing the earning statement and W-2, along with any other items that include the employee’s address. If you type  a dash, the system converts this to a space and then drops off the last of the final four digits, resulting in an incorrect ZIP code when documents are printed.

OMES Form PWC – Payroll Warrant Cancellation

The OMES Form PWC should only be used when an employee is not entitled, in part or whole, to the funds. All PWC forms OMES receives initiate the process to retrieve the funds, if direct deposit, and cancel the warrant in the payroll system. It is imperative that agencies identify payroll errors and process the form immediately upon discovery.

Paper warrant cancellations

Email Form PWC to Attach a PDF scan of the original warrant (marked void). However, OMES will process the cancellation without the scanned copy if the email certifies the agency has the warrant and can provide it when circumstances allow. If physically sending the paper warrant and form, the original warrant must be marked void and attached to the completed Form PWC and sent to OMES CAR. These requests cannot be processed by fax.

Direct deposit cancellations

Email Form PWC to The document must be password-protected, and the password should be included in a separate email or sent via another secure method. To ensure direct deposit funds are returned, the PWC request must be received by noon three business days prior to the effective pay date. Any request for cancellation of direct deposits after that cutoff will be subject to recall or reversal procedures that are subject to denial by the employee’s bank. An employee must be notified in writing of a reversing entry and its reason no later than the effective date of the reversing entry. Please notify the employee no later than the day the OMES Form PWC is submitted for processing.

Your agency can modify this statement and use it to inform your employee of the pending reversal: A payroll item will be posted in error to your bank account on MM/DD/YY. A reversal has been issued and will post to your account to pull these funds back to the state. Please keep the full amount of this deposit in your account. If the state cannot retrieve the full amount of the deposit, action will be taken in accordance with applicable procedures to retrieve the funds from you.

Once the funds have been returned to the state, OMES will process a cancellation in the payroll system, which returns the funds to the agency. If the funds cannot be recovered from the bank, the agency is responsible for recovering the funds from the employee. Please refer to 74 O.S. § 840-2.19 D for proper procedures for recovering overpayments, if needed. The agency should submit OMES Form 94P for processing if the employee reimburses the funds through a miscellaneous payroll deduction or cash.

PWC forms received for direct deposit items more than five business days past the effective date will not be processed pursuant to NACHA rules. If agencies encounter erroneous entries more than five business days past the effective date, please contact OMES or OST for consultation on options for recovering the funds.

Compensation to Current and Former Employees, Including Settlements

All compensation to employees and former employees, no matter what form, constitutes wages unless specifically excluded by the Internal Revenue Code. This includes stipends, allowances, employee lawsuits and settlements, gifts, prizes, awards, fringe benefits, etc. Before compensation is given to employees or former employees, agencies must determine the correct method of payment (payroll vs. accounts payable) and reporting required (W-2, 1099 or none). In an audit, the IRS will focus on the reason for the payment.

The IRS has determined that Oklahoma public school teachers receiving payments from a state agency are to be treated as employees of the state. As such, any payments to teachers need to be evaluated to determine if the payments should be considered wages. If so, the amounts must be paid through the payroll system, not accounts payable, to be reported on Form W-2 by the paying agency.

Attorney’s fees paid on a settlement are reportable to the plaintiff if the settlement is a reportable settlement. For attorney fees paid through accounts payable, the amount must be reported to The attorney will automatically receive a 1099-MISC reporting the amount in Box 10 on a 1099 MISC if the correct account code is used on the voucher payment. The plaintiff reporting requires a manual entry and must be reported to OMES.

If a payment settles a lawsuit, the auditor will focus on the basis of the lawsuit. Agency payroll, finance, human resources and legal departments should obtain the knowledge needed to accurately process compensation to employees or former employees. Agencies are responsible for complying with IRS requirements for withholding and reporting.

If the plaintiff is a current or former employee and the settlement or judgment payment is income that constitutes wages, the payment is reportable as compensation and included on the W-2 and all applicable taxes and deductions must be withheld. For any payment that is income but doesn’t constitute wages, the payment will be subject to reporting on Form 1099-MISC to the plaintiff in Box 3, Other Income.

If an agency has a settlement agreement that requires the payment be processed through accounts payable instead of the payroll system to expedite processing and the payment is reportable as compensation, then applicable federal, state and FICA taxes must be remitted to OMES on the same day the settlement to the individual is processed. If taxes are not withheld on the payment, the agency must gross up the amount and pay both the employee and employer share of taxes. The employee’s record will be updated for year-end reporting. If additional guidance is needed, email

Credit Union Code Change

Friends Federal Credit Union has merged with Oklahoma Educators Credit Union. The payroll deduction code for Friends Federal Credit Union, AU05, is being deactivated and all employees will be moved to deduction code AU08 for Oklahoma Educators Credit Union. If you have questions, please contact Annie Daniel at


PeopleSoft HCM Blackout Period

Just a reminder that there is a 9 p.m. to midnight blackout period for PeopleSoft HCM every night. During this time, users should not be logged into the system. Additionally, please do not submit any batch jobs that could run past 9 p.m. close to the blackout time.

Affordable Care Act 1095-C Form Reminders

By now, agencies should have printed the forms from the file received from OMES. Employers are required to provide Form 1095-C to ACA full-time employees. Employees with an ACA eligibility status other than Eligible are not required to be reported and will not have a form. The last agency on record at the end of 2021 will have received the 1095-C form for the employee with information for the entire year related to the employee’s status.

Please see the IRS 1095-C Reporting FAQs for more information and detailed instructions on correcting or creating a 1095-C form. Corrections for Form 1095-C must be submitted to OMES HCM by Feb. 25. Please send the original form, a copy of the corrected form and a memo explaining why the correction is needed. If a form was not created for an employee and should have been, the agency must manually create one, provide the employee a copy and submit a copy for inclusion on the IRS file.

For correcting a 1095-C after providing the original to the employee and before the file is submitted to the IRS, correct the form as needed and write, type or print CORRECTED somewhere on the new 1095-C furnished to the employee.

ONLY enter an X in the CORRECTED box after the file has been submitted to the IRS (this won’t be done until after the Feb. 25 correction deadline).

In addition to the form corrections, please ensure the data entered on the ACA Employee Eligibility (0674) page in the HCM system is correct. The data entered on this page is critical to correct reporting of an employee’s offer and periods of coverage.

For additional information or questions related to ACA reporting and to submit corrected or newly created forms, contact LaCree Austin at and Deanna Ferron at, or send by interagency mail to Will Rogers Building – OMES HCM, Attention: LaCree Austin/Deanna Ferron. Any corrections needed after the deadline should still be sent to OMES for us to notify the IRS.


1099 Corrections

All 1099 corrections for 2021 or for previous years need to be submitted to OMES for reporting to the IRS. This includes payments reported on 1099NEC, 1099MISC, 1099INT, 1099DIV, 1099B and 1099G. If you have any 1099s returned by the vendor that require changes, please issue a Corrected 1099 to the vendor using the blank forms provided with the original 1099s, or you may contact OMES to print them for you.

Send copies of the incorrect 1099, the correct 1099 and any documentation to support the change to OMES. If you have any questions, contact Alicia Reel at 405-522-1099 or or Beth Brox at 405-401-5792 or


PFT Processing for Cancellations and Adjustments

As a reminder, when an MWC or EWC is submitted to cancel a payroll warrant, a corresponding PFT reversal file must be submitted to remove the funds from the 789 class-funding and place the amount back in the originating class-funding. The amount in the PFT Reversal file should be the gross-to-net amount and employer share of taxes and benefits that processed on the original warrant.

The PFT reversal process is also used to process amounts in or out of the 789 fund based on business needs. This includes:

  • Processing taxes which were not processed through the normal 500Misc/PFT process but must be submitted through the ACES system.
  • Corrections necessary for overpayment refunds.
  • Correction of items improperly reported or omitted from the original PFT submitted.

Additional information on processing PFT Reversal files.


Lynne Bajema retiring next month

After 26 years of service to OMES CAR and OMES Employees Group Insurance Division (formerly Oklahoma State and Education Employees Group Insurance Board), State Comptroller and OMES CAR Director Lynne Bajema is retiring. Many accounting and finance employees statewide have worked with Lynne over the years. We are sad to see her go but wish her a very happy retirement.

If you would like to say goodbye to Lynne, there will be a retirement event on March 24 from 2-4 p.m. at the State Capitol in Multi-Purpose Room 100, with virtual options. For more information, email Stephanie Brown at


NASC Conference in OKC

The annual conference of the National Association of State Comptrollers will be held in Oklahoma City at the Skirvin Plaza March 16-18. The program is very relevant for state finance officers. Visit their website for more information.

New Travel Training

Form I-9 and E-Verify Webinars

Multiple webinar choices and dates:

  • Form I-9: Overview of the Form I-9 requirements, including step-by-step instructions on how to complete each section, acceptable documents, retention and storage.
  • E-Verify overview: Overview of the E-Verify program including how the program works, key features, how to enroll, employer responsibilities, program highlights and a demonstration of the program.
  • E-Verify in 30: Quick overview of the E-Verify program including what it is, how to enroll and key features.
  • E-Verify for existing users: Detailed overview of the E-Verify program specifically for existing users. Topics include Form I-9, user roles, creating a case, case alerts, how to handle a TNC and common user mistakes.

For more information, visit the USCIS website.

Last Modified on Feb 11, 2022
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