Contract payroll year end adjustments

Distribution of the 2007 W-2 Statements is planned mid-January 2008.  For the contractual payroll system, pay adjustments related to check cancellations and wage recoveries, including the pay issued for the pay period ending November 13, 2007 must be delivered to the Central Payroll Bureau by the EOB Friday November 30, 2007 for adjustments to be reflected in the original W-2 statements.  

Agencies that have payroll adjustments that miss the November 30th deadline or that have adjustments resulting from the November 27, 2007 or December 11, 2007 pay period ending, must inform the affected employees that their initial W-2 statements will be incorrect.  Those employees should be instructed to wait for receipt of a corrected W-2 statement (form W-2C), which will be processed and mailed at the end of February, before filing their Federal or State income tax returns.    Failure to alert these employees could result in employees having to file amended tax returns.

REGARDING LATE ADJUSTMENTS:

The Central Payroll Bureau cannot recover for agencies, the taxes related to adjustments, net recoveries, and check cancellations that miss the November 30^th deadline.  For check cancellations, agencies must collect from the employee, the total amount of federal and state taxes taken.  For late wage recoveries, agencies should collect the total (gross) wage amounts from their employees rather than the after tax amounts.

REGARDING LATE REQUESTS FOR TAX REFUNDS:

Requests for refunds of taxes withheld due to employee or agency errors cannot be processed after November 30th.  Employees can recover the tax overpayments when filing their 2007 tax returns.

THROUGHOUT THE YEAR: 

Any wage adjustment requests including check cancellations that occur throughout the year must not be held. These adjustment requests need to be delivered to the Central Payroll Bureau as soon as they are identified.  This ensures that the State remains in compliance with tax reporting mandates.

Thank you for your on-going support.  Please refer any questions to Helen Kane, manager of Accounting & Reporting, or Rosina Romain, assistant manager, at (410)260-7964.