1. CORE Oklahoma The Office of State Finance CORE HCM Forum April 10, 2012 __________________________________________________ 1

2. CORE Oklahoma Agenda Higher Ed in PeopleSoft, FY2013 State Minimum Wage, CORE Website Changes Alan Binegar Inactivating Direct Deposit, W-4 Changes, BEA/RBA Paygroup Changes, Comp Time Age Report, Workers Comp Reports Carol Barton DCAR Update Lisa Raihl __________________________________________________ 2

3. CORE Oklahoma Alan Binegar HRMS Administrator The Office of State Finance – ISD CORE __________________________________________________ 3

4. CORE Oklahoma Higher Education in PS Currently 5 Higher Ed agencies are paying their employees through PeopleSoft. By year end, all Higher Ed agencies will pay through PeopleSoft. Those paid by Higher Ed agencies are not considered employees of the State, and their records indicate Person of Interest (POI). If your agency hires someone who has been paid through Higher Ed, they will need to be added through the Add Employment Instance process rather than the OPM Bridge & Rehire process. Remember to update Birthdate, Gender, Ethnic Identity, and I-9 / eVerify as these items are not tracked in PS for Higher Ed. __________________________________________________ 4

5. CORE Oklahoma FY2013 State Minimum Wage Effective 7/1/2012 the State Employee minimum wage will be $19,090.00 annually or $9.18 hourly. Temporaries, Board & Commission Members, Seasonal & Project employees in Tourism or Historical Society are not covered by the State Employee minimum wage. CORE will send out spreadsheet listing affected employees on June 20 th, then automatically update the employee records on July 2 nd. __________________________________________________ 5

6. CORE Oklahoma CORE Website Changes __________________________________________________ 6

7. CORE Oklahoma HCM Website Changes Now Located at: http://www.ok.gov/cio/Customer_Portal/Business_Application_ Services_Essentials/Human_Capital_Management/ Find Login Link, Training Manuals, HCM Query Toolkit and Module News, including HCM Forum presentations. You may also want to add the CIO Homepage in your Favorites: http://www.ok.gov/cio/ __________________________________________________ 7

8. CORE Oklahoma Carol Barton HCM Coordinator & Production Support Lead The Office of State Finance – ISD CORE __________________________________________________ 8

9. CORE Oklahoma Payroll News Inactivating Direct Deposit –We are in the final testing stages of inactivating all Direct Deposit records after no activity for 120 days. However we still recommend that you go ahead and inactivate your employees direct deposit if they are leaving state government after all payments have been made by your agency W-4 Changes –Once payroll for the period has been started and a payroll has been processed, do not make changes to the W-4 until the next payroll. BEA/RBA Paygroup Changes –Do Not make Paygroup changes in the middle of a payroll cycle. If you do, the employee be double paid on their BEA/RBA earnings. __________________________________________________ 9

10. CORE Oklahoma Payroll News Comp Time Age Report Run and reconcile your Workers Comp Reports on a monthly bases. When you run the process you will get four (4) reports: 1 – OCPY110 - This report gives you the totals that are reported to CompSource. 2 – OCPY110B – This is the funding portion of the report and should have the same totals as OCPY110. 3 – OCPY110S – This report balances our Workers Comp Report to Financials 6-digit Object of expenditures Report. 4 – OCPY110C – This is the error report. It will list anyone that we do not show a workers comp code on. These employees will not be included in the totals of the Workers Comp Report and will have to be added manually and kept track of for year end reporting. You will need to add a row on the job and put in the Workers Comp code on the MDC Job Data tab. Workers Comp Reports –The Comp Time Age report has been added to Employee Self Service, the employee can see the that have been run by period. __________________________________________________ 10

11. CORE Oklahoma Lisa Raihl Accounting & Reporting Analyst The Office of State Finance – Division of Central Accounting and Reporting (DCAR) __________________________________________________ 11

12. CORE Oklahoma DCAR Newsletters The DCAR newsletters are published on the OSF Website under the Comptroller hyperlink. In addition, notification is sent out from the OSF Help Desk when a newsletter is published. Users signed up for the PeopleSoft HCM (CORE) notification group will receive notification when a newsletter is available. To sign up for the groups you wish to join, please follow the link: http://www.ok.gov/triton/modules/oknotify/index.php?id=65 12 __________________________________________________

13. CORE Oklahoma Voluntary Buyout Reimbursement Reminders There is currently $3 million in the VOBO fund available. HB 2177 extended the use of Voluntary Buyout Reimbursement Revolving Fund for eligible voluntary buyout expenditures paid not later than June 30, 2012. Once payment has been made to employees, please submit the claim document within 30 days so that the agency can get a timely reimbursement. The procedures and forms are located on the OSF website. __________________________________________________ 13

14. CORE Oklahoma Outstanding Wages Beneficiary Designation Option Title 40, O. S., Section 165.3a allows employers to provide employees the option of designating a beneficiary for wages and benefits payable upon an employee’s death. Agencies may want to consider adopting a policy which allows employees to designate a beneficiary. Providing the option to employees would relieve stress and anxiety after the death of the employee on the family members, etc. Also, agencies would have clear guidance on who is to receive final wage payments and avoid any potential difficulties in determining who gets the payment(s). This statute does not include any longevity payment that may be due as of the date of death of an employee. Title 74, O.S., Section 840-2.18 subsection H.2 authorizes any longevity payment to be paid to the decedent’s surviving spouse, or if there is no surviving spouse, to the decedent’s estate. __________________________________________________ 14

15. CORE Oklahoma Tax Treatment of Employer-Provided Cell Phones IRS Notice 2011-72 provides updated guidance regarding employer-provided cell phones. When a cell phone is provided to an employee primarily for noncompensatory business reasons, the cell phone usage is broken in to two categories - business usage and personal usage. The IRS will treat the employee’s business use of the cell phone (use for reasons related to the employer’s trade or business) as a working condition fringe benefit, the value of which is excludable from the employee’s income. In addition, the IRS will treat the value of any personal use of a cell phone that is provided by the employer primarily for noncompensatory business purposes as excludable from the employee’s income as a de minimis fringe benefit. The application of the working condition and de minimis fringe benefit exclusions under this notice apply solely to employer-provided cell phones. The notice does not address treatment of reimbursements to employees for the business use of personal cell phones. 15 __________________________________________________

16. CORE Oklahoma Tax Treatment of Employee Cell Phone Reimbursements When an employer, for substantial noncompensatory business reasons, requires employees to maintain and use their personal cell phones for business purposes and reimburses employees for the business use, the reimbursements must be reasonable to not result in additional income or wages. The employees’ cell phone coverage must be reasonably related to the employer’s business needs and the reimbursements must be reasonably calculated so as to not exceed the actual expenses incurred to maintain the cell phone. In addition, the reimbursement must not be a substitute for a portion of employees’ regular wages. Noncompensatory business reasons for requiring employees to maintain personal cell phones include the need to contact the employee at all times for work related emergencies, the requirement that the employee be available to speak to clients at all times when the employee is out of the office or outside the normal work schedule. OSF Transaction Processing is developing a personal cell phone reimbursement policy and procedures document to be used by agencies when requesting reimbursement for employee cell phone expenses. More information will follow when the procedures are finalized. __________________________________________________ 16

17. CORE Oklahoma State Contribution Fund Ready for Interagency Payments The State Contribution Fund, Vendor ID # 0000000467, has been setup to process using the “wire” payment method. This vendor should only be used for tax payments due to OSF for backup withholding on vendors and other withholding taxes due that were not processed through the payroll system (for example 1042-S withholding, GTL taxes). Agencies that have vendors requiring backup withholding on miscellaneous claims need to process and submit payment to OSF at the same time payment is made to the vendor. Agencies that have taxes due on items not processed through the payroll system need to process and submit payment to OSF immediately for timely deposits to the IRS. When payment has been processed, please immediately forward the paperwork detailing the transaction, vendor name, ID, gross payment amount, and other information as needed, to Lisa Raihl or Jean Hayes so that the payment can be matched and the taxes can be timely paid. NOTE: Please do not use Vendor # 0000000090; we will not get the money, the taxes will be late, and the agency will be responsible for any late penalties or interest. __________________________________________________ 17

18. CORE Oklahoma Payroll Warrant Cancellation Requests To initiate the cancellation procedures for a payroll warrant, complete the OSF Form PWC (revised 09/09). For direct deposits, FAX it to OSF at (405) 521-3902. The fax number for OSF is also located on the top of the form in the Area for Oklahoma Payroll. Forms that are faxed to the wrong offices (Treasurer’s Office or to JPMorgan Chase ACH Services) may not get processed properly and cancelled from the employee’s payroll record. The paper form must be mailed to OSF Transaction Processing. Please follow all instructions when utilizing this form. For paper warrants, attach the voided warrant to the form and send to OSF Transaction Processing, room 122 at the Capitol. __________________________________________________ 18

19. CORE Oklahoma Employee Direct Deposit Verification Agencies are reminded that employee 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 be rejected by the Oklahoma State Treasurer (OST). Errors in processing bank routing/transit numbers can cause significant delays in the employee’s receipt of his or her paycheck. OST will reject any bank routing numbers beginning with a “5” and the agency will have to process the OSF Form PWC to have the payroll cancelled and reprocess another payroll with the correct banking information. Many banks do not reject direct deposits with other types of errors until after the pay day, for example; closed accounts, invalid accounts, or routing number errors. This means the deposit may not be returned to the State for several days after the pay date. A replacement warrant cannot be reissued until the money is returned to the State. __________________________________________________ 19

20. CORE Oklahoma DCAR Newsletters http://www.ok.gov/OSF/Comptroller/DCAR_Newsletters.html Questions? __________________________________________________ 20

21. Next HCM Forum Thursday, June 14 th, 2012 –In the OSF ISD Building at 30 th & Lincoln Blvd Suggestions for Topics? –Please submit a Help Desk Case and the Team will address topic in the next HCM Forum CORE Oklahoma 21

22. CORE Oklahoma Thank You! __________________________________________________ 22