June 4, 1992

COMPTROLLER'S MEMORANDUM NO. 20 (1991-92)

SUBJECT: EMPLOYMENT CHANGES DUE TO REORGANIZATION

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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:

1. Employees moving from one agency to another should have their insurance premium deductions coordinated between the two agencies.

2. 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 agency.

3. 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.

4. 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:

1. 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.

2. 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.

3. 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 notification.

4. 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.