CAR Newsletter - July 2023
Volume 34, Number 1 | Fiscal Year 2024 | July 10, 2023
In This Issue ...
- Payroll Deduction Register Must Accompany Payments
- HCM System Name Changes
- Payments After Date of Employee Death – Reportable to Recipients
- Payments After Date of Employee Death
- Employee Direct Deposit Verification of Bank Routing Number
- Update of Budget Reference on 340 Fund Entries
- Cash Transfer Requests
- Higher Education Federal Tax Deposit Journal Entries
Payroll Deduction Register Must Accompany Payments
Agencies are responsible for sending vendors the Payroll Deduction Register page(s) for payments processed to ensure proper credit to employees’ accounts. When contacted by vendors or the Central Payroll team to provide this information, prompt response is required, especially due to the time sensitivity of some payments. Without this information, the vendor may not timely credit an employee’s account and, if for garnishments or liens, penalties and/or interest may be added to the employee’s account in error. When mailing payments, please ensure all documentation related to the payments are included. When payment is processed as an Electronic Funds Transfer (EFT) or Interagency WIR, please be sure to send via fax, scan/email or mail the proper documentation. Vendors may have a specific method for receiving the payment information and if so, their instructions should be followed.
HCM System Name Changes
An employee’s name should only be changed in the HCM payroll system after the employee provides an updated Social Security number (SSN) card. If an employee has a legal name change because of marriage, divorce, court order or other reason, they must apply for a corrected SSN card. Once the new card is received and provided to HR, the employee’s name can be updated in the system.
Changing an employee’s name without verifying to the SSN card will cause mismatches when the information is sent at year-end for W-2 reporting. If the name and SSN do not match the Social Security Administration (SSA) records, the employee’s wages may not be credited to their Social Security account.
To help prevent mismatches, OMES verifies employee name and SSN combinations several times throughout the year through the SSA website. Agencies with mismatched results are notified and are required to provide the necessary changes to ensure year-end reporting is correct. This process helps to ensure accurate reporting and reduces the risk of information reporting penalties.
Payments After Date of Employee Death – Reportable to Recipients
The IRS requires the amount that would have been reported as federal wages on the W-2 (if not for death) to be reported on a 1099-MISC in Box 3, Other Income, to the recipient(s) of any amounts paid after the date of death. In some cases, this amount could be significant and result in a change to the recipient’s tax situation for the year. Agencies should let recipients know the amount is taxable to them, a 1099 will be issued at year-end and if needed, they should talk with their tax accountant for additional guidance or information.
Payments After Date of Employee Death
When earnings are payable after the death of an employee, the Payroll Processing for Death of an Employee manual must be followed to ensure proper processing. For payments to a spouse, dependents, guardians or beneficiaries of a deceased employee that are made through AP, the recipient(s) must be set up in the vendor file. Please submit a completed IRS Form W-9 to Vendor Maintenance for payments to be made to a spouse, dependents, guardians or beneficiaries of a deceased employee. Requests to add or update an employee Vendor ID made payable to the “Estate of ...” an employee may continue to be submitted using the OMES Employee Vendor Request Form. All forms should be submitted to Vendor Maintenance at firstname.lastname@example.org. Forms may also be faxed to 405-521-3663, Attn: Vendor File Maintenance.
Agencies must also complete OMES Form DER, Deceased Employee Reporting, when an employee dies and payments are made after the date of death. The form is on the OMES website under CAR Forms. Complete and send to OMES CAR Central Payroll at email@example.com as soon as possible after all payments have been processed.
Employee Direct Deposit Verification of Bank Routing Number
With employee self-service, direct deposit information should be entered directly by employees. If an agency has to enter an employee’s direct deposit information, please remember that bank deposit slips should NOT be used to get the bank routing/transit number for setting up direct deposit information. A voided check from the employee is the most reliable method. If the employee does not have a voided check or wants to deposit into another type of account, have the employee call the bank directly to get the routing/transit number. A bank routing/transit number should never start with the digit 5. This indicates a branch of the bank and will cause the direct deposit to fail. A direct deposit that fails will not leave OST to be paid and additional processing by the agency will be required to pay the employee.
HIGHER EDUCATION PAYROLL
PFT Reversal Files for EWC/MWC Forms
PFT Reversal files should be submitted timely after notification from Transaction Processing that funds have been successfully retrieved from an employee’s bank or when submitting a paper warrant for cancelation on the MWC form. Failure to submit a file timely will result in the warrant not being canceled and the agency not receiving the funds back in the 789 class fund until a file is received.
When submitting the Validate PFT Funding report for a PFT Reversal file, please include a brief description of the reason for the PFT Reversal. For example, ‘PFT Reversal file for EWC Warrant 200000099’ or ‘PFT Reversal file for year-end adjustments.' This will assist us in identifying the PFT Reversal and notifying others if any EWC/MWC forms are being held waiting on a file.
Agency Verification of Payrolls Processed
When OMES processes institutions' 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. This is a good verification that the payroll has been processed. If an expected payroll is not listed on the register, please contact firstname.lastname@example.org.
1099 MISC REPORTING
1099 Tax Information Quarterly Report
The first two quarters of the 2023 tax year are now complete. It is time for all state agencies to run the Miscellaneous 1099 Tax Information Report which will include all transactions from Jan. 1, 2023, through June 30, 2023. The path for this report in PeopleSoft Financials is:
Accounts Payable > Reports > Payments > Misc Tax Information Report.
Please review the following items in this report:
- The Name and Tax ID number (TIN) must match the information on the vendor’s W-9, which designates the name and TIN that the vendor uses to report their taxes to the IRS, state Tax Commission and/or Secretary of State.
- Pay attention to the 1099 Flag: Y means the vendor should receive a 1099, and N means the vendor should not receive a 1099. A vendor does not need a 1099 if it is registered as a corporation, non-profit or government entity (the exception to this is when the payment is for legal or medical services). State employees in most cases should have an N 1099 flag. All other non-exempt vendors should have a Y 1099 flag. If there are any questions about a vendor’s 1099 status, please request an updated W-9 from the vendor and forward a copy to OMES.
- Please note that Address 1 in the vendor file is the vendor’s official address reported to the IRS and the designated address for 1099 reporting. If the vendor’s 1099 Flag is N, any new address provided will be added as a different location but Address 1 will not change. If Address 1 should be different, please request the change by submitting the request on the OMES Vendor /Payee Form.
- Review all warrants processed for each vendor to ensure that the correct amount is listed for the proper vendor. (Any warrant corrections will need to be made at the agency level.)
Please send any corrections on this report to the Office of Management and Enterprise Services (OMES) by Friday, July 28, 2023. If you have questions, contact Alicia Reel at 405-522-1099 or by email at Alicia.Reel@omes.ok.gov.
NOTE: This does not apply to Higher Ed Institutions; these institutions will do their own 1099 reporting for 2023.
Update of Budget Reference on 340 Fund Entries
With the change into the new fiscal year, agencies that submit files with 340 fund summary transactions must include the proper BudRef in the files they are submitting. For entries that are funded from FY 24 budgets, the journal entry must be updated to post with the BudRef of 24.
Cash Transfer Requests
Agencies submitting Form 10A to request a cash transfer must include the proper statutory authority. Make sure to update the citation on the form when submitting the request.
Higher Ed Federal Tax Deposit Journal Entries
As we begin a new fiscal year, Higher Education entities will need to update their template for entering journal entries for the payroll tax deposits. If the tax deposit is being created for FY 23 payroll expenses, then the BudRef in the journal entry for that federal tax deposit will need to be 23. If the payroll for which the tax deposit is being made contains FY 24 payroll expenses, then the BudRef in the journal entry will be 24.
Please reference June 2023 CAR Newsletter section “Higher Ed Deferred Payroll” for any questions regarding FY 23 and FY 24 payroll expenses.
On July 1, it became mandatory for agencies to utilize PeopleSoft for strategic sourcing functions. User guide documents and training videos have been added to Workday@OK Learning. For more information regarding the training, please reach out to Procurement.Training@omes.ok.gov.
User Guide materials can be accessed by logging in to Workday@OK and following the steps below.
- View All Apps.
- Browse Learning.
- New – Oklahoma eProcurement Solicitations and Contracts Agency Training. (Type this in the second search bar from the top.)
FY 24 Non-IT and IT P-card Authority Orders must be in place prior to purchases made on P-card in accordance with encumbrance requirements. AO setup information can be found in Appendix B of the State P-card Policy. New funding values for FY 24 should be submitted to the State P-card Office to add to BOA Works by August 3 for July transactions. For questions, please contact email@example.com.
Live online seminars presented by Fred Pryor Seminars.
For more information, please visit their website.
Form W-4 and Other Payroll Updates
Live online webinar presented by myCPE.
For more information, please visit their website.