Summary

What is changing?

Why is it changing?

How does this affect you?

Meal Rate Increase

Taxable Reimbursements

Travel Advances

Payment Schedule

Example

Important Considerations
  for Employees

Reimbursement Changes Brochure

Important Considerations for Employees

Because of these changes, there are some things that employees should review:

• Review your W4

You may do this online at the Employee / Manager Self Service site (http://www.state.sd.us/ess) or with a paper W4 form submitted to your personnel office.  Employee who have a significant amount of taxable reimbursements may be in the practice of having additional withholding taken out of their pay checks to avoid having to pay in unexpectedly at the end of the year.  Since FIT will now be withheld at the time of payment, the additional withholding my no longer be needed.

Remember that you may change your W4 as many times as you wish through the self service website.

• Consider your Direct Deposit Method

Because these payments will now be made from payroll, your reimbursements will now arrive in the same method as your pay check does UNLESS you have specified a different direct deposit already.  (If you have your reimbursements already being direct deposited or placed onto the state's Payroll Card, they will continue to go to the same place.)

Direct deposit is required for payroll, and reimbursements will now be paid through the payroll system.  In fact, direct deposit for reimbursements has been mandatory for new employees for some time, now.

Direct Deposit Payment Methods
Current Method	New Method
-          Payroll direct deposited into account X -          Reimbursements direct deposited into account X	Nothing will change.
-          Payroll direct deposited into account X -          Reimbursements direct deposited into account Y	Nothing will change.
-          Payroll direct deposited into account X -          Reimbursements received on a paper check	The reimbursements will be direct deposited into the same account as payroll.

Take as an example somebody who today has their reimbursements issued on a paper check, and their payroll is set up to have $250 going into one account, and the rest (net amount) of their paycheck going into another account.

Their reimbursements will automatically be deposited in the same account that the net amount of their paycheck goes into.

If, however, they already have direct deposit set up for their reimbursements, those deposits will continue to be made into the same account they are today.

 

If you absolutely require a separate account for your reimbursements, and you do not have or wish to open another bank account, look into the state's Payroll Card option.  This card can also be used for reimbursement payments, and can be used to pay for expenses while traveling as well.

http://www.state.sd.us/bfm/paycard/