OFFICE OF THE COMPTROLLER
DEPARTMENT OF BANKING AND FINANCE
STATE OF FLORIDA
TALLAHASSEE
32399-0350
ROBERT F. MILLIGAN
COMPTROLLER OF FLORIDA
January 2, 2003
IN REPLY REFER TO:
DBFBP 03-01
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
IRS Error on 2002 Form W-2 (Earned Income Credit Limits)
The Internal Revenue Service (IRS) has announced an error on 2002 Form
W-2, “Notice to Employee” on the back of Copy B. The earned income
limitations shown in the “Earned income credit (EIC)” notice are
incomplete and should have included the income limits for taxpayers
who file “married filing jointly”. The earned income limit for
taxpayers who file “married filing jointly” should be $1,000 more than
the amount shown for each listed scenario. The relevant text in the
second paragraph of the notice should have read as follows:
“You may be able to take the EIC for 2002 if (a) you do not
have a qualifying child and you earned less than $11,060
($12,060 if married filing jointly), (b) you have one
qualifying child and you earned less than $29,201 ($30,201
if married filing jointly), or (c) you have more than one
qualifying child and you earned less than $33,178 ($34,178
if married filing jointly). You and any qualifying children
must have valid social security numbers (SSNs).”
Employing agencies should alert all affected employees about the IRS
2002 Form W-2 error and the correct income limitations as soon as
possible. The following options are available:
•
Provide employees with a copy of Notice 797 (Rev. November 2002),
Possible Federal Tax Refund Due to the Earned Income Credit (EIC)
(You can obtain this notice by calling 1-800-829-3676, or by
computer at http://www.irs.gov/pub/irs-pdf/n797.pdf).
•
Send an agency-wide memo or e-mail informing employees of the
correct EIC limitations.
•
Inform your employees of the correct EIC earned income
limitations in another appropriate manner. For example, post a
notice informing employees of the correct EIC limitations. The
notice should be posted in a place where employee notices are
normally placed.
The attached “Notice to Employees” was prepared to assist agencies
with alerting employees of the error. Agencies may use this notice
for informing its employees of the correct EIC earned income
limitations for 2002.
If you have any questions, please feel free to contact Ernest Thompson
at (850)410-9432, Suncom 210-9432, or by email at
ethompso@mail.dbf.state.fl.us.
JB/ET:sd
Attachment
NOTICE TO EMPLOYEES
ERROR ON 2002 FORM W-2, BACK OF COPY B
EARNED INCOME CREDIT (EIC) LIMITS
The Internal Revenue Service (IRS) has announced an error
on 2002 Form W-2, “Notice to Employee” on the back of Copy
B. The earned income limitations shown in the “Earned
income credit (EIC)” notice on the back of Copy B are
incomplete and should have included the income limits for
“married filing jointly”. The earned income limit for
taxpayers who file “married filing jointly” should be
$1,000 more than the amount shown for each listed scenario.
The relevant text in the second paragraph of the notice
should have read as follows:
You may be able to take the EIC for 2002 if (a)
you do not have a qualifying child and you earned
less than $11,060 ($12,060 if married filing
jointly), (b) you have one qualifying child and
you earned less than $29,201 ($30,201 if married
filing jointly), or (c) you have more than one
qualifying child and you earned less than $33,178
($34,178 if married filing jointly). You and any
qualifying children must have valid social
security numbers (SSNs).
For additional information on Earned Income Credit, see IRS
Notice 797, (revised November 2002) Possible Federal Tax
Refund Due to the Earned Income Credit (EIC). This booklet
may be obtained by calling 1-800-829-3676, or by computer
at http://irs.gov/pub/irs-pdf/n797.pdf.
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
May 19, 2003
IN REPLY REFER TO:
DFSBP 03-02
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
Year-End Bonus Payments Additional Guidance and Reminder
This is to inform you that Year-End Bonus Payments will not be submitted through the People First
system this year. As a result, agencies may submit approved bonus payments through either the COPES
Personnel System or through the PC Payment System on any of the following payrolls:
Processing Date
6/3/2003
6/9/2003
6/17/2003
6/20/2003
6/23/2003
Payroll Type
Supplemental Payroll
Biweekly Payroll
Supplemental Payroll
Monthly Payroll
Biweekly Payroll
Warrant Date
6/9/2003
6/13/2003
6/23/2003
6/30/2003
6/27/2003
Agencies may also submit approved bonus payments using the PC Payment System only on any of the
following payrolls:
Processing Date
5/30/2003
6/4/2003
6/11/2003
6/18/2003
6/25/2003
Payroll Type
Warrant Date
Awards Payroll
Awards Payroll
Awards Payroll
Awards Payroll
Awards Payroll
6/4/2003
6/9/2003
6/16/2003
6/23/2003
6/30/2003
*An Awards Payroll is a warrant only payroll and will not generate EFT payments.
Agencies are reminded of the following guidance regarding the processing of Year-End Bonus Payments:
1. For actual payroll warrants to be generated, agencies MUST submit the bonus requisition actions
on an Awards payroll. Submission on the Supplemental, Biweekly or Monthly payrolls will
result in direct deposit for employees with direct deposit authorization.
• • •
200
ACCOUNTING & AUDITING/BUREAU OF STATE PAYROLLS
EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416
Affirmative Action / Equal Opportunity Employer
• FAX (850) 410-9454
2. The allocation approved by OPB is for gross salary charge. This equals the gross salary plus
employer contributions.
3. Agencies must use Appointment Status Code “YE”.
4. Fiscal year-end bonus payments must be voucher and warrant dated in June.
Agencies are also reminded to refer to memorandum DFSBP 03-01 dated 4/14/2003 (please disregard all
references in this memorandum to the People First System) and to COPES processing guidance when
preparing and submitting bonus payments.
Special Note: Agencies may NOT use the On-Demand Payroll System to process Year-End Bonus
Payments.
Should you have any questions concerning this matter, please contact Yvette McCullough at 850-4109449, SUNCOM 210-9449, or email: ymccullo@dfs.state.fl.us or Cindy Langley at 850-410-9423,
SUNCOM 210-9423, or email: clangley@dfs.state.fl.us.
JB/JC:sd
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
May 23, 2003
IN REPLY REFER TO:
DFSBP 03-03
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
Fiscal Year-End Payroll Processing Schedule Changes
This is to inform you of the following changes to the payroll schedule for 2003:
The Supplemental Payroll scheduled to process on June 30, 2003, has been rescheduled to
process on July 2, 2003, voucher on July 3, 2003, with a warrant date of July 9, 2003. Payroll
warrants and reports will be released to agencies on July 7, 2003.
To ensure a successful fiscal year crossover there will be no cancellations or adjustment runs
processed on July 1, 2003.
While agencies will be allowed to enter and approve On-Demand Payroll transactions on July 1,
2003, these transactions will not be processed until July 2, 2003, and will warrant date on July 7,
2003.
Special Note: The On-Demand payrolls scheduled to process on June 27, 2003, and June 30, 2003, will
be charged to the 2002-03 Fiscal Year but will warrant date in the 2003-04 Fiscal Year.
Should you have any questions concerning the payroll processing changes, please contact Yvette
McCullough at 850-410-9449, SUNCOM 210-9449, or email: ymccullo@dfs.state.fl.us or Cindy Langley
at 850-410-9423, SUNCOM 210-9423, or email: clangley@dfs.state.fl.us. Should you have any
questions concerning the cancellation and adjustment runs for July 1, 2003, please contact Cynthia
Murphy at 850-410-9433, SUNCOM 210-9433, or email: cmurphy@dfs.state.fl.us or Pattsy Burgess at
850-410-9435, SUNCOM 210-9435, or email at pburgess@dfs.state.fl.us.
JB/JC:sd
• • •
200
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416 • FAX (850)
Affirmative Action / Equal Opportunity Employer
410-9454
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
July 16, 2003
IN REPLY REFER TO:
DFSBP 03-05
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
Criminal Justice Incentive Program Payments
In early fall, we will be changing the Authorization File we currently use to process Criminal Justice
Incentive Program (CJIP) payments. Currently, the Authorization File is based on class codes. However,
with the implementation of broadbanding codes and the new “People First” personnel system, class codes
will no longer be a viable means of producing CJIP payrolls. Therefore, we are going to build a new
Authorization File and it will be based on Position Number and Social Security Number.
We will develop the initial Authorization File based on position numbers from the most recent regular
payroll. Please find attached a report of your CJIP employees that will be paid on July 16, 2003 with a
comparison to a June regular payroll for retirement code, position number and class code.
In order to insure that your employees continue to receive their CJIP monies, it is imperative that any
incorrect position numbers in the CJIP Authorization File or the CJIP payroll be corrected as soon as
possible. We ask that you please send an e-mail to Cindy Langley at the address below certifying that the
position numbers in the regular payroll for your employees are correct no later than August 29, 2003.
Special Note: If retirement codes do not match, this could affect the employee’s withholding tax
calculation on the CJIP payroll. Also, some class code discrepancies are provided as an audit tool (not all
agencies will have them).
We anticipate having a smooth transition to the new CJIP Authorization File and want to thank you in
advance for your support and cooperation. Should you have any questions concerning this matter, please
contact Cindy Langley at (850) 410-9423, SUNCOM 210-9423, or email: clangley@dfs.state.fl.us.
JB/CL:sd
• • •
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
200 EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416 • FAX (850) 410-9454
Affirmative Action / Equal Opportunity Employer
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
July 18, 2003
IN REPLY REFER TO:
DFSBP 03-06
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
Request for Information (State Income Tax Withholding by Agency)
The Bureau of State Payrolls (BOSP) is in the process of enhancing the state’s payroll system to
include on W-2 forms state and/or local income taxes withheld by agencies for their out-of-state
employees, including the state name and agency state identification number. This will eliminate
the need for agencies to manually add this information to W-2 forms at year-end.
In order for us to make the necessary payroll system changes, we need all agencies having
payroll deductions for state and/or local income tax withholdings to provide us with the
following information by August 15, 2003 for each state income tax deduction code utilized:
1. Agency OLO and name
2. Agency contact person for reporting state and/or local income tax (name, address,
telephone, e-mail address)
3. Payroll deduction code(s) utilized – for state and/or local income tax withholding
4. State and/or local taxing authority name and address – for reporting and remitting
5. State and/or local identification number (issued to the agency for remitting and
reporting)
Note: Please send your information directly to Ernest Thompson, BOSP.
Should you have any questions, please contact Ernest at (850) 410-9432, SUNCOM 210-9432,
or, e-mail ethompso@dfs.state.fl.us.
• • •
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
200 EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416 • FAX (850) 410-9454
Affirmative Action / Equal Opportunity Employer
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
September 5, 2003
IN REPLY REFER TO:
DFSBP 03-07
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT: Criminal Justice Incentive Program (CJIP) Payroll Modifications and Guidelines
This is to inform you that effective October 9, 2003, we will be implementing the following modifications and
guidelines regarding CJIP payrolls:
1.
All CJIP payments will be dropped whenever an employee’s CJIP position number or Tax ID Number is
not on the CJIP Authorization file.
2.
The Bureau of State Payrolls (BOSP), using the last regular payroll processed in September for CJIP
employees and the CJIP payroll processed in September, will do the initial load of position numbers into
the CJIP Authorization File.
3.
If an employee is not paid CJIP in the month of September, you will need to complete and submit a DBFBP-CJIP Form to BOSP in order to have this position number added to the file. The DBF-BP-CJIP Form
must be submitted at least “five” business days prior to the CJIP payroll processing date and must be
signed by the agency head or designee.
4.
If an employee changes positions and you determine that the employee’s correct position number is eligible
for CJIP payments, you will then need to complete and submit the DBF-BP-CJIP Form to BOSP in order to
have the new position number added to the file and the old one deleted. Note: There will be a one-month
overlap in the two position numbers.
5.
If the correct CJIP eligible position is not on the CJIP Master File, your agency/university must submit a
CJIP change order, using the PC Payment System, for either the CJIP payroll scheduled to process on
September 11, 2003 or October 9, 2003 to correct the employee’s CJIP master record maintained by BOSP.
These changes are needed in order to prevent ineligible employees from receiving CJIP payments. We apologize in
advance for any inconveniences that may result from our modifications and appreciate your support in this matter.
If you have any questions about this memorandum, please feel free to contact Cindy Langley at (850) 410-9423,
SUNCOM 210-9423, or email at clangley@dfs.state.fl.
JB/CL:sd
• • •
200
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416
Affirmative Action / Equal Opportunity Employer
• FAX (850) 410-9454
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
September 29, 2003
IN REPLY REFER TO:
DFSBP 03-08
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
Payroll Deduction Code for Purchase of Computers
The Department of Management Services has determined that it is no longer in the State’s best
interests to have a payroll deduction code (Code 0673) for the purchase of computer equipment
from the Union First On Line (UFOL) Corporation. Therefore, effective immediately, agencies
are not permitted to enter any new accounts utilizing this deduction code. In addition, we will
keep this deduction code active until November 11, 2005. This will allow all current
participating state employees to finish paying for their computer purchases from this corporation.
Please address any questions to Steve Isted at (850) 410-9450, SUNCOM 210-9450, or, e-mail
sisted@dfs.state.fl.us.
cc: Steven Lustig, UFOL Corporation
Robert Wallerius, UFOL Corporation
Tom Clemons, Department of Management Services
• • •
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
200 EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416 • FAX (850) 410-9454
Affirmative Action / Equal Opportunity Employer
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
December 3, 2003
IN REPLY REFER TO:
DFSBP 03-09
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
Expiration of Excluded Employment Form (DFS-BP-5)
Reduction or Exemption from Withholding Reminder
Certain types of income are either exempt from federal withholding or eligible for reduced
withholding under the Internal Revenue Code or income tax treaties. The Internal Revenue
Service requires that most exemptions from withholding are valid for one year and must be
renewed each year.
Agency payroll report PW4RYX06 (RDS Form ID Q**X) lists your employees having a Form
DFS-BP-05 (Reduction or Exemption From Withholding) that will expire on December 31, 2003.
The report lists only those employees who have been paid since July 1, 2003. This report is
available through the Report Distribution System (RDS). If you need assistance in viewing or
printing your report, please contact your agency’s RDS administrator.
Eligible employees may claim the exemption for year 2004 by completing a new DFS-BP-05
form. This form is available on the web at www.dbf.state.fl.us/links/BP-05.xls. In order to
continue uninterrupted exemption from withholding, agencies must enter a new DFS-BP-05 form
into the W-4 subsystem no later than 5:00 P.M. on December 29, 2003. We caution against
entering records for year 2004 prior to the last two weeks in December. This is because these
pending records will prevent you from entering W-4 changes for these employees until the
system is updated on January 2, 2004.
Agencies and universities are responsible for monitoring the residency status of employees and
the time limitations under income tax treaties. When an employee is no longer eligible for the
reduction or exemption from withholding, the W-4 system should be updated as soon as possible.
Refer to Volume V, Section 3 of the Payroll Preparation Manual for Form W-4 and Form DFSBP-5 procedures.
• • •
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
200 EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416 • FAX (850) 410-9454
Affirmative Action / Equal Opportunity Employer
Agencies Addressed
December 3, 2003
Page 2
Agencies and universities should also review the records of employees who are exempt from
Social Security and Medicare to ensure they still meet the eligibility requirements under the
Internal Revenue Code. These employees should be coded with a non-contributory retirement
code.
If you have any questions concerning the input of these forms, please contact Pattsy Burgess at
(850) 410-9435, SUNCOM 210-9435, or e-mail pburgess@dfs.state.fl.us. If you have questions
concerning the taxation nonresident aliens, please contact Elda Quijano at (850) 410-9448,
SUNCOM 210-9448, or e-mail equijano@dfs.state.fl.us.
MN/PB:sd
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
December 4, 2003
IN REPLY REFER TO:
DFSBP 03-10
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
Earned Income Credit Advance Payment Certificate Expiration
This is to inform you that Earned Income Credit Advance Payment Certificates (Form W-5) for 2003 will
expire on December 31, 2003. This includes any W-5 forms for 2003 that are added between now and the
end of this calendar year. Additional guidance follows:
•
Agency payroll report PW4RYX05 (RDS Form ID Q**W) lists your employees who have a
Form W-5 that will expire on December 31, 2003. This report is available through the Report
Distribution System (RDS). If you need assistance in viewing or printing your report, please
contact your agency’s RDS administrator.
•
Eligible employees who want to receive advance payments of the earned income credit during
2004 must complete a 2004 Form W-5. In order to continue uninterrupted participation, the 2004
W-5 Form must be entered in the W-4 system no later than 5:00 P.M. on December 29, 2003.
We caution against entering W-5 forms for 2004 prior to the last two weeks in December. This is
because these records will remain pending and will therefore prevent you from entering W-4
changes for these employees until the system is updated on January 2, 2004. Refer to Volume V,
Section 3 of the Payroll Preparation Manual for Form W-5 procedures.
•
IRS Form W-5 for 2004 is available from the Internal Revenue Service (IRS). You will be able
to obtain Form W-5 by calling the IRS toll-free number 800-829-3676 or by accessing the IRS
website (www.irs.gov). You are encouraged to maintain a supply of W-5 Forms for your
employees.
Please contact Pattsy Burgess at (850) 410-9435, SUNCOM 210-9435, or e-mail at
pburgess@dfs.state.fl.us if you should have any questions regarding this memorandum.
MN/PB:sd
• • •
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
200 EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416 • FAX (850) 410-9454
Affirmative Action / Equal Opportunity Employer
DEPARTMENT OF FINANCIAL SERVICES
TOM GALLAGHER
CHIEF FINANCIAL OFFICER
December 8, 2003
IN REPLY REFER TO:
DFSBP 03-11
TO:
Agencies Addressed
FROM:
John Bennett, Chief
Bureau of State Payrolls
SUBJECT:
CALENDAR YEAR END INFORMATION
The following payroll related information is provided to assist agencies in complying with the calendar
year end reporting and processing schedule. Information concerning upcoming payroll changes and
activities is included. Here are the topics we cover:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Vehicle Fringe Benefit Reporting
Moving Expenses
Forms W-2 & 1042-S Distribution
Duplicate Forms W-2, W-2c and 1042-S
Cancellations and Adjustments
Refund of Current Year Salary Overpayment
FICA Tax Changes
On-Demand Payroll and Revolving Fund Reimbursements
Taxable Tuition Waivers and Taxable Education Assistance
Nonresident Alien Non-Cash Scholarships
State Income Taxes Deducted in 2003
Employee’s Withholding Allowance Certificate – Form W-4
Expiration of Advance EIC Payments – Form W-5
Qualified Transportation Fringe Benefit Limits
Pension Plan Contribution Limits - 2004
1. Vehicle Fringe Benefit Reporting
The deadline for reporting vehicle fringe benefits for November 1, 2002 through October 31, 2003 is
December 29, 2003. Vehicle fringe benefits must be reported utilizing the non-cash adjustments on-line
system. Agencies collecting FICA taxes through the payroll process in December should exercise care to
ensure that the values are entered and approved prior to the processing of their agency’s last payroll of the
year. Any on-line adjustments entered after the last payroll for 2003 has processed, or adjustments by
agencies that elect to pay FICA taxes from their FLAIR accounts, must be entered and approved in the
• • •
JOHN BENNETT • BUREAU CHIEF • BUREAU OF STATE PAYROLLS
200 EAST GAINES STREET • TALLAHASSEE, FLORIDA 32399-0356 • (850) 410-9416 • FAX (850) 410-9454
Affirmative Action / Equal Opportunity Employer
on-line system by 5:00 p.m. on December 29, 2003 in order to be considered as 2003 business. This is
the date of the last cancellation and adjustment run of the year. Any reported benefits entered into the online system after that date will result in the affected employee receiving a corrected Form W-2 (W-2c) for
calendar year 2003.
Instructions for completing on-line non-cash adjustments are found in Volume V, Section 7, of the
Payroll Preparation Manual. Questions regarding this issue should be directed to Pattsy Burgess,
850/410-9435, SUNCOM 210-9435 or e-mail at pburgess@dfs.state.fl.us.
Elected officials and employees whose calendar year 2003 compensation is greater than $125,400 are not
eligible to use the commuting valuation method. Instead, they must use the Annual Lease Value Table.
Please note the four-year recalculation requirement when using the Annual Lease Value Table. Please
refer to Volume VI, Section 3, of the Payroll Preparation Manual for instructions.
2. Moving Expenses
Comptroller’s Memorandum No. 1 (1998-99) and Payroll Preparation Manual, Volume VI, Section 3,
contain information regarding the Federal tax and reporting requirements applicable to payments or
reimbursements for employee moving expenses.
3. Forms W-2 & 1042-S Distribution
Original Forms W-2 and Information Statements for calendar year 2003 will be distributed to all agencies
by January 16, 2004. The design of the Form W-2 has not changed from last year. The dimension of the
form and the address placement are the same as last year’s Form W-2. The envelopes for mailing W-2
Forms to employees can be purchased using state commodity #310-420-723-0160.
The alpha list of original W-2’s will ONLY be available to the agencies in RDS. The RDS Form ID is
U**6 (**represents your agency ID). RDS administrators should establish this report for all necessary
personnel before January 8, 2004. Information about the Report Distribution System is located in
Volume VIII, Section 2, of the Payroll Preparation Manual.
Original Forms 1042-S for nonresident aliens will be distributed to all agencies no later than March 5,
2004. The design of the Form 1042-S has not changed from last year.
4. Duplicate Forms W-2, W-2c and 1042-S
The last day in 2003 that 2000, 2001, or 2002 duplicate Forms W-2, W-2c and 1042-S will be available
via the on-line request system will be December 29, 2003. Duplicate 2001, 2002, and 2003 Forms W-2
and W-2c should be available via the on-line request system by January 20, 2004 or shortly thereafter.
Duplicate 2001, 2002, and 2003 1042-S Forms should be available via the on-line request system in
March 2004.
5. Cancellations and Adjustments
All cancellations and adjustments, including salary refunds, made to year 2003 earnings must be added
and approved in the on-line system by 5:00 p.m. on December 29, 2003 in order to be considered as 2003
business for W-2 production and withholding tax restoration. There will be at least a 4-month delay in
restoration of withholding tax for any adjustments processed after December 29, 2003.
No adjustments will be processed from December 30, 2003 through January 2, 2004. Any cancellations
and adjustments made to year 2003 earnings that are approved after December 29, 2003, will result in the
issuance of a W-2c Form. Cancellations and adjustments entered and approved January 5-7, 2004, will
2
result in the message “Employee: Please Hold for W-2c" being printed on the employee’s original W-2
Form. Any employee receiving a W-2 Form with this message should refrain from filing a tax return
until the W-2c Form is received. Adjustments processed after January 7, 2004, will generate a W-2c
Form. However, original 2003 W-2 Forms will not display a message.
W-2c Forms resulting from adjustments processed January 5-7, 2004, will be mailed directly to affected
employees at their home address. However, agencies will be contacted if the mailing information on file
is insufficient. W-2c Forms initiated after January 7, 2004, may be mailed directly to the affected
employees by the Bureau of State Payrolls or distributed to the employing State agencies.
6. Refund of Current Year Salary Overpayment
In order to be considered in the production of the original 2003 W-2 form, refunds must be added and
approved in the on-line system by 5:00 p.m. on December 29, 2003.
Agencies must enter the refund information into the system by December 31, 2003, in order for the
system to calculate the correct withholding tax for the net refund. Employees must repay the net refund
by December 31, 2003. In addition, the records must be approved by 5:00 p.m. on January 6, 2004. All
records entered into the system on or before December 31, 2003, and not approved by January 6, 2004,
will be deleted. Records entered after December 31st with year 2003 warrant dates will not have
withholding tax or W-2 Gross adjusted. Information concerning the processing of salary overpayment
refunds can be found in Volume V, Section 6, of the Payroll Preparation Manual.
7. FICA Tax Changes
The Social Security wage base will increase from $87,000 to $87,900 in year 2004. The Social Security
tax rate will remain at 6.2% for both employee and employer contributions. The Medicare tax rate of
1.45% for both employee and employer will also remain the same.
8. On-Demand Payroll and Revolving Fund Reimbursements
All Revolving Fund payments for wages made to employees in calendar year 2003 must be calculated and
reimbursed in year 2003 utilizing the On-Demand Payroll System. All transactions in the On-Demand
system must be approved by 5:00 p.m. on December 29, 2003, to be considered as 2003 business. OnDemand transactions not approved by this time will be purged from the On-Demand system.
If a revolving fund transaction is not reimbursed in the same calendar year as the payment to the
employee, an incorrect W-2 Form will be created necessitating the issuance of a W-2c Form. In addition,
the unapproved On-Demand revolving fund reimbursement transaction will be deleted after 5:00 p.m. on
December 29, 2003. Note that revolving fund payments can only be reimbursed through the On-Demand
Payroll System for the exact amount calculated by the On-Demand Payroll System in the calendar year
the Revolving Fund was paid to the employee. For additional information on Revolving Fund
regulations, please refer to Chapter 69I-31.226, Florida Administrative Code, titled “Wage Payments
from Revolving Funds". Also refer to Volume IV, Section 11 of the Payroll Processing Manual for
additional information on the On-Demand Payroll System.
9. Taxable Tuition Waivers and Taxable Education Assistance
Taxable tuition waivers and education assistance must be reported in the current calendar year utilizing
the non-cash adjustments on-line system. Agencies collecting FICA taxes through the payroll process in
December 2003 should exercise care to ensure that the values are entered and approved prior to
processing the last payroll of the year. Agencies electing to pay FICA taxes from their FLAIR account, or
on-line adjustments entered after the last payroll for 2003 has processed, must enter and approve the
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transaction by December 29, 2003 (the last daily cancellation and adjustment run of the year).
Instructions for completing on-line non-cash adjustments are located in Volume V, Section 7, of the
Payroll Preparation Manual. Information concerning the reporting of taxable tuition waivers is located in
Volume VI, Section 3, of the Payroll Preparation Manual.
10. Nonresident Alien Non-Cash Scholarships
For nonresident aliens, the Internal Revenue Service requires that all U.S. sources of non-qualified
scholarships, fellowships, grants, and financial aid be reported on IRS Form 1042-S. The IRS may assess
interest and penalties on items not timely reported. Agencies should report non-cash scholarships, using
the on-line non-cash adjustment system, by December 29, 2003 for calendar year 2003. Before entering
the adjustment, you must ensure that the scholarship recipient has a W-4 form. Instructions for entering
these types of payments into the system are located in Volume V, Section 7, of the Payroll Preparation
Manual. In addition, the non-cash adjustment system will collect the withholding taxes from the FLAIR
account code entered with the transaction.
11. State Income Taxes Deducted in 2003
Agencies electing to provide state income tax withholding for its employees must assume the remitting
and reporting responsibilities. Each agency must register with the appropriate taxing authority of the state
or local government; obtain an agency tax identification number and the required information and forms
for meeting its remitting and reporting responsibilities. BOSP must be notified when new registrations
are obtained, providing the name of the state or local government taxing authority, the agency tax
identification number, deduction code utilized, and the agency contact name and telephone number.
Prior to year 2003, agencies were required to add each employee’s state and local government income tax
deductions to Form W-2 before distribution to employees. Beginning with year 2003 the Chief Financial
Officer’s payroll system will add these deduction amounts to W-2 forms.
Agency reports will be available in the Report Distribution System (RDS) in January 2004 listing
employees having state and local government income tax deductions in year 2003. The RDS Form ID is
U**K (** represents your Agency ID). RDS administrators should establish this report for all necessary
personnel before year-end (December 31, 2003). Information about RDS is located in Volume VIII,
Section 2 of the Payroll Preparation Manual. Information about State Income Taxation is located in
Volume VI, Section 4. Questions should be directed to Ernest Thompson, 850/410-9432, SUNCOM 2109432, e-mail ethompso@dfs.state.fl.us.
12. Employee’s Withholding Allowance Certificate – Form W-4
Agencies should remind employees to file a new Form W-4 with their agency personnel office if the
address, marital status, allowances or exempt status has changed since the last W-4 was filed.
A W-4 claiming exempt status for 2003 expires February 15, 2004. Employees claiming exempt status
must file a new W-4 each year. If a new W-4 is not filed, the Internal Revenue Service requires the
employer to withhold tax as if the employee is single with zero allowances. In order to continue
uninterrupted exempt status for 2004, a new W-4 must be entered into the payroll system by 5:00 p.m.
February 9, 2004.
13. Expiration of Advance EIC Payments – Form W-5
Earned Income Credit Advance Payment Certificate for 2003 expires on December 31, 2003. This
includes any 2003 W-5 Forms added between now and year-end. Eligible employees who want to receive
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advance payments during 2004 must complete a 2004 Form W-5. In order to continue uninterrupted
participation, the 2004 W-5 must be entered into the W-4 system by 5:00 p.m. on December 29, 2003.
14. Qualified Transportation Fringe Benefit Limits
For taxable years beginning in 2004, the monthly limitation under Section 132(f), regarding the aggregate
fringe benefit exclusion amount for transportation in a commuter highway vehicle and any transit pass, is
$100. The monthly limitation regarding the fringe benefit exclusion for qualified parking is $195. Refer
to IRS Rev. Proc. 2003-85.
15. Pension Plan Contribution Limits – 2004
The annual additions limitation for defined contribution plans under IRC Section 415(c) is increased from
$40,000 to $41,000.
The annual compensation limit under Section 401(a)(17) is increased from $200,000 to $205,000.
The annual compensation limitation under Section 401(a)(17) for eligible participants in certain
governmental plans that, under the plan as in effect on July 1, 1993, allowed cost-of-living adjustments to
the compensation limitation under the plan under Section 401(a)(17) to be taken into account, is increased
from $300,000 to $305,000.
The limitation on the exclusion for elective deferrals under Section 402(g) (e.g., 403(b) plans) is increased
from $12,000 to $13,000.
The limitation under Section 457 concerning elective deferrals to deferred compensation plans of state
and local governments and tax-exempt organizations has increased from $12,000 to $13,000.
The limitation under 414(v) for catch-up contributions to 403(b) and 457 plans for individuals age 50 and
over is increased from $2,000 to $3,000.
For additional information, refer to IRS Notice 2003-73.
If there are any questions concerning this Calendar Year End information memorandum, please do not
hesitate to contact our office at (850) 410-9416 or SUNCOM 210-9416.
JB/ET:sd
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