[CAFR-Contacts-News] Updated OAM Policies: Chapter 45 - Payroll; Chapter 50 - Tax Issues

[ROSS Kathryn * SCD SARS]

Hello CAFR Accountants,

 

The following policies and procedures have been updated and posted to
the Oregon Accounting Manual (OAM) at:
http://www.oregon.gov/DAS/SCD/SARS/oam_toc.shtml.  

 

We would like to thank those agencies who participated in the comment
period.  Your suggestions for clarification are always appreciated.  The
effective date for these policy modifications is July 1, 2009.

 

1.       OAM 45.50.00.PO/PR - Collection of Overpayment.  The revised
policy/procedure:

 

*       More clearly describes overpaid status and the relationship to
forecasted payroll (Run 1) and adjusted payroll (Run 2) and  what
happens when an employee has no accrued leave to replace time not
worked.

 

*       Defines payroll overpayments as accounts receivable - agencies
should refer to existing guidance in Chapter 35 of the OAM - and
provides a more detailed explanation of the repayment limitations
contained in most collective bargaining agreements.  

 

*       Provides detailed procedures for the management of payroll
overpayments, including notification to the employee, coordination of
repayment rules, reimbursement of the Joint Payroll Account, and setting
up of ongoing deductions from the employee's pay. Three sample demand
letters are provided.  

 

2.       OAM 50.10.00.PO/PR - Educational Assistance Payments.  The
revised policy/procedure:

 

*       Clarifies the differences between educational expense
reimbursements under Internal Revenue Code (IRC) Section 132 and an
employer educational assistance program as defined by IRC Section 127.  

 

*       Provides guidance on the review and approval of
education-related payments, how to classify them as taxable or
non-taxable to the recipient employee, and the requirement that
education-related payments must be paid or recorded through the Oregon
Statewide Payroll Application (OSPA).

 

3.       OAM 50.20.00.PO/PR - Moving Expenses. The revised
policy/procedure:

 

*       Updates IRS authority references and provides a more detailed
definition of taxable and non-taxable moving expenses.  

 

*       Eliminates the use of the employee's social security number in
processing claims

 

*       Provides guidance on the review and approval of moving expenses,
including the requirement that moving expense claims conform to State HR
policy and applicable prevailing collective bargaining agreements. 

 

*       Moves discussion of the distance test rule from the procedure to
the policy.

 

*       Clarifies that if a mileage reimbursement rate is used that is
higher than the IRS-approved "moving" mileage rate, the excess is
taxable income to the employee.

 

*       Provides guidance on paying and recording moving expense
reimbursements through the Oregon Statewide Payroll Application (OSPA).


 

*       Requires employees given a cash advance to timely submit their
moving expense receipts for approval and return any excess cash to their
agencies.

 

Thanks,
Kathy

 

Kathryn Ross

Statewide Accounting & Reporting Manager

Oregon State Controller's Division

155 Cottage Street NE, U-50

Salem, OR 97301

Phone:  (503) 373-7277, ext 253

Fax:  (503) 378-3514

http://oregon.gov/DAS/SCD/SARS <http://oregon.gov/DAS/SCD/SARS> 

 

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