To: Management Council Members, VPs of Finance, CHROs, and Payroll Contacts
From: Shared Services Center
Area: Payroll
Reason: Payroll Bulletin #2021-11 Unadjudicated Flex Transactions
Date: December 8, 2021
The attached DOA Payroll Bulletin regarding Unadjudicated Flex Account Claims was sent early this afternoon. According to IRS guidelines, if requested documentation is not received by the plan administrator for specific Flex Account claims, the outstanding transaction amounts must be reported to the IRS as income on the W-2 form and is subject to all applicable employment taxes.
The DOA directive is as follows:
Agencies must enter the transactions for processing the unadjudicated amounts, along with any transactions needed to account for uncollected FICA (see Terminated Employees below), with the 12/16 pay date.
The full-time payroll certification deadline for pay date December 16, 2021, is Friday, December 10, 2021, which requires the data entry adjustments to be completed tonight and tomorrow for the terminated employees. We wanted to make you aware that we will be entering these transactions according to the instructions provided in the bulletin. Please be aware, for the agencies that we process, SSC payroll will be following the method for the scenario that collection of the FICA is not possible at this time. This is the same process that has been followed in previous year-ends.
DOA sent one master file to the SSC with the employees and amounts to be entered. For the agencies that are not using SSC payroll services, we will reach out individually and provide a secured copy of the information to be entered.
We greatly appreciate your support. Please let us know of any concerns or further questions at payroll@ssc.vccs.edu or contact your assigned Payroll Specialist.
