CORE Oklahoma

The Office of State Finance

CORE

HCM Forum

July 20, 2011

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CORE Oklahoma

April Story

HR Director

Oklahoma State & Education Employees

Group Insurance Board

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EEO & Affirmative Action

• Employee Population on July 1st

• Ethnicity – One must be marked Primary• Corrections after July 1st to Agency Data• DHS or Bi-Weekly Agencies• Current Email/Contact Information• Excel Workbook from Brenda Thornton

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CORE Oklahoma

Alan Binegar

HRMS Administrator

The Office of State Finance – ISD CORE

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CORE Oklahoma

New State Agency Minimum Wage

• $8.908654 per hour or $18,530.00 annually

• Don’t forget to include the fractional amount!

• Does not apply to Temporary Employees

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CORE Oklahoma

Rejected Job Actions

• Requires your URGENT attention so errors can be resolved.

• Rejections can be found by:– Clicking the OPM-14 Link on the Work Location page– Navigating to Workforce Administration > Job Information >

OPM-14 Summary (0206B)– Running the query GO_HR_REJECTED_TRANSACTIONS

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CORE Oklahoma

Action Reason Code Changes

• OPM is revising some of the Action Reason codes

• A new training class will be offered in conjunction with the quarterly HCM training.

• Contact your Nominating Official to enroll.– Monday, August 22nd, 9:00 – 1:00– Wednesday, August 31st, 8:00 – 12:00 or 1:00 – 4:00 – Wednesday, September 14th, 8:00 – 12:00 or 1:00 – 4:00

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CORE Oklahoma

Employees Not Paid Since…

• Run the query: GO_PY_NOT_PAID_SINCE_PROMPT

• Review results to determine if terminations should be entered, or if additional follow up is needed with employees.

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CORE Oklahoma

Employees Not Paid Since 2009

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Agency Count   Agency Count

039 2   516 1

040 2   548 11

199 2   566 1

219 18   585 2

220 2   610 2

270 35   620 5

290 2   650 3

306 1   677 33

340 1   678 2

353 10   740 1

369 3   755 3

390 1   830 15

410 1   880 4

452 4      

CORE Oklahoma

Carol Barton

HCM Coordinator &

Production Support Lead

The Office of State Finance – ISD CORE

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CORE Oklahoma

Dual Employment Overtime

• For those employees that are working in more than one State Agency. The Agencies must coordinate with each other to ensure the employees are being paid properly for all hours worked over 40 hours in a weekly period.

• To arrive at the overtime rate for dual employed personnel you must use the blended rate to calculate the correct overtime rate.

• The BLENDED rate is arrived at by taking what the employee earned at Agency A (hours worked x rate of pay 40.00 X $20.00=$800.00) plus Agency B (hours worked 20 X $10.50 = $210.00) add these two rate together $1010.00 divide by total hours of 60 = $16.83 per hour.

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CORE Oklahoma

SoonerSave Contributions

• Employee deferrals and employer contributions must be remitted to OPERS in a timely manner to ensure participant amounts are posted and transferred to the selected investment options within ten (10) business days of the payday, end of payroll period, or process date, whichever is later.

• OSF processes payments to SoonerSave on confirmed payrolls on a weekly basis. This payment schedule far exceeds the requirements set forth in the plan and IRS rules. On many occasions contributions are posted to employee accounts on or before the actual pay date. Occasionally, and due to the payroll processing schedule of agencies, payments may post after the actual pay date.

• Please remind employees that payments not showing on a quarterly statement may be due to the later processing of payroll and will show on the next quarterly statement. Employees are also encouraged to use the SoonerSave website (http://www.opers.ok.gov/soonersave) or they can go directly to the SoonerSave website: http://www.soonersave.com.

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CORE Oklahoma

Part Time Employees Annual Rate

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CORE Oklahoma

Part Time Employees Annual Rate

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CORE Oklahoma

Part Time Employees Annual Rate

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CORE Oklahoma

Part Time Employees Annual Rate

• Part Time employees that are being paid by percentage instead of an hourly rate for the time they work. If on the Job Record, Job Information Screen, you have your employee set up for less than 40 hours and the FTE is less than 1.00 and the employee did not work their full schedule you must:

– Put in an override hourly rate for the pay period on the Timesheet. (Main Menu > Manager Self Service > Time Management > Timesheet) Failure to put in an override hourly rate will result in the employee being docked at the full time rate.

– Do Not dock pay on Off Cycle payrolls where no earnings are being paid to an employee.

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CORE Oklahoma

Biweekly Payroll Conversion Procedure

• Pursuant to HB 1111, in the 1st session of the 52nd Legislature, 2009, the Office of State Finance in coordination with the Office of Personnel Management has established procedures for converting to a biweekly payroll schedule.

• As part of the pre-conversion process, interested agencies must first present a financial plan to the Director of State Finance and certify that sufficient funds are available within the agency’s existing budget to make the conversion.

• Interested agencies should contact the OSF Service Desk requesting information on the correct procedures for the conversion. The Service Desk can be contacted at: (405) 521-2444 (local) or HelpDesk@osf.ok.gov.

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CORE Oklahoma

Lisa Raihl

Accounting & Reporting Analyst

The Office of State Finance – Division of Central Accounting and Reporting

(DCAR)

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CORE Oklahoma

IRS Form W-4Employee's Withholding Allowance Certificate

Rules Employers Must FollowIRS PublicationsForm W-4 Data EntryExemption from WithholdingInvalid W-4 FormsLock-in letters Nonresident alien employee’s Form W-4Oklahoma Income Tax WithholdingOther Information

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CORE Oklahoma

Rules Employers Must Follow• Provide new employees with a Form W-4 to fill out. • If an employer does not receive a completed Form W-4,

withholding must be at the highest rate.– As if single and claiming no withholding allowances.

• If later a Form W-4 is completed, it can be put into effect as soon as possible. – The deadline for putting it into effect is the start of the first payroll

period ending 30 or more days after submission.

• If an employee is having too much tax withheld , they can submit a new Form W-4. – Employers cannot repay any of the tax previously withheld.

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CORE Oklahoma

IRS Publications

Publication 15, (Circular E) Employer’s Tax GuidePublication 505, Tax Withholding and Estimated TaxPublication 519, US Tax Guide for AliensPublication 919, How Do I Adjust My Tax Withholding?Notice 1392 – Supp. Form W-4 Inst. For Nonresident Aliens

IRS Withholding Calculator: www.irs.gov and click on “Estimate Your Withholding” under “Online Services.”

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CORE Oklahoma

Form W-4 Data Entry Line 1: Name

Line 2: Address - Home address (can submit mailing address on agency information form not on W-4)

Line 3: Filing Status – must specify a status

Line 4: Name different than social security card? If so, enter into the payroll system the name on the SS card. Only change after receiving a new SS card from the employee.

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CORE Oklahoma

Form W-4 Data Entry

Line 5: # of Allowances Claimed – enter # of allowances being claimed (unless claiming exempt)

Line 6: Additional amount to withhold each paycheck – enter additional withholding amount (unless claiming exempt)

Line 7: Exemption from withholding – Enter only if claiming exempt from withholding

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CORE Oklahoma

Exemption from Withholding• Only exempt from federal income tax withholding – not

social security & medicare tax. • Only claim exempt if:• For prior year (2010) had a right to a refund of all federal

income tax withheld because no tax liability and for the current year (2011) expect a refund of all federal income tax withheld because expect no tax liability.

• Employee must submit a new Form W-4 to claim exempt.

• Lines 5 and 6 should not have any entries. • Line 7 should have “Exempt” entered.

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CORE Oklahoma

Exemption from Withholding• Exemption is good for only 1 year, employee must

submit a new Form W-4 by February 15 each year to continue exemption. – If a new form is not submitted, withhold at single and

zero allowances or withhold based on the last valid W-4

– Form is used going forward – do not adjust prior withholdings

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CORE Oklahoma

Invalid W-4 Forms• Incomplete or unsigned• Unauthorized changes or additions to the form • An employee indicates in any way it is false (verbally or

written)• The employer may treat a Form W-4 as invalid if the

employee wrote “exempt” on line 7 and also entered a number on line 5 or an amount on line 6.

• Do not use - ask for a new valid form, if not received then:– withhold at single and zero allowances, or withhold based on last

valid W-4• An employee who submits a false Form W-4 may be subject

to a $500 penalty.

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CORE Oklahoma

Lock-in letters • If the IRS determines that an employee cannot claim more

than a specified number of withholding allowances or claim exempt from withholding, they will issue a notice of the maximum number of withholding allowances permitted.

• A period of time is provided for the employee to dispute the determination before the lock-in letter takes effect and until the IRS advises differently.

• Those employers who do not follow the IRS lock-in letter instructions will be liable for paying the additional amount of tax that should have been withheld. 

• Lock-in letters are in effect until the agency is notified otherwise by the IRS.

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Dear STATE OF OKLAHOMA

WHY ARE WE WRITING TO YOU?

Our records indicate that your employee, named above, may not be entitled to claim exempt status or more than a specified number of withholding allowances on Form W-4, Employee's Withholding Allowance Certificate. In most instances, we reviewed Forms W-2, Wage and Tax Statement.

WHAT ACTIONS DO YOU NEED TO TAKE?

Begin withholding income tax from wages paid to your employee based on the following withholding rate (marital status) and withholding allowances:

EFFECTIVE: first pay period after Sep. 05, 2011 Withholding Rate (Marital Status); single Withholding Allowances: 0000

Do not honor any new Form W-4 from your employee that results in les s income tax withholding than at the withholding rate (marital status) and withholdil1g allowances shown above. However, YOU must h o no r any Form W-4 which results in MORE income tax withheld than at the withholding rate and allowances shown above.

DO NOT ADJUST WITHHOLDING PRIOR TO THE FIRST PAY PERIOD AFTER Sep. 05, 2011

This time period will provide your employee with an opportunity to dispute our determination before you adjust the withholding.

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If tile employee is working for you as of the date of this letter, you must provide tile employee the enclosed "Employee's Copy" WITHIN 10 BUSINESS DAYS OF RECEIPT. You may follow any reasonable business practice to furnish the Employee's Copy to the employee.

Determine whether the employee is employed as of the date of this letter based on all the facts and circumstances, including whether you have treated the employment relationship as terminated for other purposes.

In all cases, if the employee named above is not currently performing services for YOU, you must still withhold based on this letter and give the attached Employee's Copy of this letter to the employee If:

-You will be paying wages subject to income tax withholding on or after the first pay period ending Sep. 05, 20111 OR

-You reasonably expect the employee to resume services for you within twelve (12) months from the date of this letter ,OR

-The employee is on a bona fide leave of absence that doe s not exceed twelve (12) months; OR

–The employee has a right to re employment by law or under contract.

WHAT MUST YOU DO IF THE EMPLOYEE NO LONGER WORKS FOR YOU?

You are required to notify us if employment has been terminated as of the date of this letter. Please complete the attached "No Longer Works Here Information Sheet" or provide the same information on company letterhead. Submit the information to the address shown below. If you prefer , YOU may fax the information to the Withholding Compliance Unit at 978-474-1326.

CORE Oklahoma

Nonresident alien employee’s Form W-4When completing Forms W-4, nonresident aliens are

required to:• Not claim exemption from income tax withholding, • Request withholding as if they are single, regardless of

their actual marital status, • Claim only one allowance (if the nonresident alien is a

resident of Canada, Mexico, S. Korea, or student or business apprentice for India, he or she may claim more than one allowance), and

• Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4.

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Oklahoma Income Tax Withholding

• Oklahoma Income Tax Withholding Tables• The number of withholding allowances claimed on the

Federal W-4 must be used for either method. (Percentage Formula Method or Wage Bracket Tables Method)

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CORE Oklahoma

Other Information

• Employees must specify a filing status and a number of withholding allowances on Form W-4; cannot specify only a dollar amount of withholding

• Don’t advise an employee on how many allowances the employee can or should claim. Instead, provide the employee with the IRS website and Publication 919, How Do I Adjust My Tax Withholding, to allow the employee to determine the appropriate number of allowances to claim.

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Other Information

• After receiving a Form W-4, suggest the employee verify the amount of tax withheld is correct for the payroll in which the new form is in effect.

• Employers must retain Form W-4 for at least four years after the date the last return was filed using the information on the Form W-4. – Example: Jane turned in a new Form W-4 in June 2011 and will be

effective for the July 2011 payroll. The previous W-4 must be retained until four years after the 2011 W-2 is filed. The W-2s are filed by March 31 of the following year. 2011 W-2 file is submitted on 03/31/2012. The previous Form W-4 must be retained until 03/31/2016.

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IRS FAQ

• What should I do if an employee submits a valid Form W-4 that appears to be claiming an incorrect withholding amount?Withhold federal income tax based on the allowances claimed on the Form W-4.  But, you should advise the employee that the IRS may review withholding to ensure it is adequate, and that the IRS may direct you, as the employer, to withhold income tax for the employee at a certain rate if the review indicates the employee’s withholding is inadequate. Once this occurs the employee will not be allowed to decrease their withholding unless approved by the IRS.

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CORE Oklahoma

DCAR Newsletter

http://www.ok.gov/OSF/Comptroller/DCAR_Newsletters.html

Questions?

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Next HCM Forum

• Wednesday, September14th, 2011

• Suggestions for Topics?– Please submit a Help Desk Case and the Team will

address topic in the next HCM Forum

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CORE Oklahoma

Thank You!

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