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<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">To State Agency Payroll Professionals:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">November is the last month in tax year 2012. Employee net pay negatives / overpayments are one of the items to monitor closely and to process before November run 2.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Your electronic reports for November run 1 include the E260-200 Net Pay Negative Report, which lists employees who have net pay negatives from prior pay periods that did not clear in November
run 1. Review this report and make any needed entries for November run 2. Here are some things to consider:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">If the employee will not repay all or part of an overpayment in the same year that the overpayment occurred, the amount still owed is taxable to the employee for that year. This is because
the employee received and had use of those funds during the year (constructive receipt).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">The timing and circumstances of the repayment dictate how to handle the overpayment at year-end.<o:p></o:p></span></p>
<p class="MsoNormalIndent" style="margin-left:0in">If the employee has a net pay negative from a prior pay period and you are certain that December run 1 wages will cover it, allow OSPA to make the normal deduction. We will not do a corrected W-2 for either
2012 or 2013.<o:p></o:p></p>
<p class="MsoNormalIndent" style="margin-left:0in">If the employee has a net pay negative in OSPA after November run 2 and will not have enough wages to cover it in December, reverse the entries that created the remaining negative. Work with your agency’s accounting
staff to set-up an account receivable for that amount. The employee’s W-2 will include the amount the employee has not repaid. Request a corrected W-2 (W-2c) for the year of the overpayment when the employee has repaid the remaining amount.<o:p></o:p></p>
<p class="MsoNormalIndent" style="margin-left:0in">If your agency has already reimbursed the joint payroll account for a 2012 overpayment that the employee will not repay by December 31, 2012, the employee’s 2012 W-2 will not be correct. When you receive the
W-2’s for this year, pull the employee’s W-2 and request a corrected W-2 for the amount of the overpayment still owed at year end.<o:p></o:p></p>
<p class="MsoNormalIndent" style="margin-left:0in">If a repayment plan crosses tax year, request a corrected W-2 for the year of the overpayment when the employee has repaid it. PSS will request a refund of social security and Medicare taxes on behalf of the
agency. <o:p></o:p></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">For additional information, see the Statewide Payroll Reference Manual, Income Tax Payroll Process
<a href="http://www.oregon.gov/DAS/EGS/FBS/OSPS/docs/pubs/handbook/handbookincometaxes.pdf">
http://www.oregon.gov/DAS/EGS/FBS/OSPS/docs/pubs/handbook/handbookincometaxes.pdf</a> and Year End Payroll Process
<a href="http://www.oregon.gov/DAS/EGS/FBS/OSPS/docs/pubs/process/ProcessYearend.pdf">
http://www.oregon.gov/DAS/EGS/FBS/OSPS/docs/pubs/process/ProcessYearend.pdf</a> <o:p>
</o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Arial","sans-serif"">Questions? Contact the OSPS Help Desk,
<a href="mailto:OSPS.Help@das.state.or.us">OSPS.Help@das.state.or.us</a> or 503-378-6777, opt zero<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Katherine Bremser</span></b><b><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><br>
</span></b><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Training Coordinator</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><br>
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Oregon Statewide Payroll Services</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><br>
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Financial Business Systems</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><br>
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Enterprise Goods and Services</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif""><br>
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Department of Administrative Services</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif""> <br>
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">503-373-0738</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif""> <br>
</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Online Resource Center:
</span><a href="http://oregon.gov/DAS/EGS/FBS/OSPS/"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:blue">http://oregon.gov/DAS/EGS/FBS/OSPS/</span></a><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">
<br>
Data Classification: Level 1 - Published</span><span style="font-size:12.0pt;font-family:"Times New Roman","serif""><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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