OSPS E-News ~ Updated OAM Policies: Chapter 45 - Payroll; Chapter 50 - Tax Issues

[Announcements from OSPS to the users of the Oregon State Payroll Application]

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.

 

 

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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