June 4, 1992
COMPTROLLER'S MEMORANDUM NO. 20 (1991-92)
SUBJECT: EMPLOYMENT CHANGES DUE TO REORGANIZATION
The 1992 Legislature passed and the
Governor has signed a number of laws which move various operating
units and programs between agencies. The reorganization will
require the movement of employees in several agencies. Some employees
will be moving from an agency which has a monthly pay cycle to
an agency which has a biweekly pay cycle and conversely, other
employees will be changing from a biweekly to a monthly pay cycle.
This memorandum is to apprise agencies
of various payroll items which should be taken into consideration
when employees move from one agency to another. The following
items apply to all employees being moved, even though the pay
cycle is not changing:
- Employees moving from one agency
to another should have their insurance premium deductions coordinated
between the two agencies.
- Some insurance coverage and payroll
deductions may be unique to an agency. Coverage available by
payroll deduction at one agency may not be available at another
agency. Employees are to be advised of payroll deductions and
insurance coverages which may not be transferred to the receiving
- Vehicle fringe benefits should be posted
to employees' records by the sending agency when appropriate to ensure the employer
tax contribution is charged to the appropriate agency account.
- Organization code changes made through
the W-4 system should be entered by the receiving agency to ensure
that turnaround W-4's will be generated. The procedures for obtaining
a turnaround W-4 for organization code changes are contained in
the Payroll Preparation Manual, Volume V, Section 5, Page 10.
Employees changing pay cycles require
additional attention. Some of the files used in payroll processing
are impacted by the pay cycle. The pay cycle and the deduction
amounts must be changed in the Division of State Employees' Insurance (DSEI) State Insurance and Pretax Benefits Authorization
File, the Bureau of Deferred Compensation's
Authorization File and the Bureau of State Payrolls' Court Ordered Support system. The following items apply to employees changing pay cycles:
- Agencies must meet the submission deadlines
published by DSEI in its payroll schedule for State Insurance,
Pretax Reimbursements and Pretax Supplemental Insurance Programs.
Deleting the insurance code on a payroll record is not sufficient
to stop deductions for the Pretax Reimbursement or Supplemental
Insurance programs. Sending and receiving
agencies must also coordinate the payroll deductions or reductions.
- Deferred Compensation Salary Reductions
are prescheduled amounts based upon payroll warrant date. Employees
should be advised that they are to work with their provider agent
to make the appropriate salary reduction and pay cycle changes.
To be effective for payrolls processed in the month of July,
the "Joinder Agreement" must be filed with the investment provider no later than June 8.
- The Bureau of State Payrolls is to be
notified of pay cycle changes for employees with court ordered
support obligations. Notification must be received no later than
July 1. The deadline applies to either pay cycle change. A telephone
call to Kelly Hand at (904) 488-7762, Suncom 278-7762, is acceptable
- Many employees recently have filed W-4
forms requesting additional income tax be deducted each pay period.
Employees who are changing pay cycles will need to file revised
W-4 forms to have the correct additional income tax calculated.
Income tax for employees going from a monthly agency to a biweekly
agency will be over-withheld and income tax will be under-withheld
if going from biweekly to monthly, if appropriate W-4 changes
are not made. We recommend that organization code changes be
implemented soon to enable the turnaround W-4 to be available
at the receiving agency. Particular attention should be given
to the payroll schedule to ensure that the final biweekly payment
is processed before a W-4 containing additional income tax is
updated with a monthly rate.
Agencies with employees who will be
moving to another agency and who have Internal Revenue Service
tax levy deductions are requested to call Janet Joiner at (904)
488-7762, Suncom 278-7762 prior to June 30 to coordinate the movement
of the deduction.
Questions regarding the information
contained in this memorandum are to be directed to Bill Schmitt
or Patti Calhoun, telephone number 488-7762, Suncom 278-7762.