Fiscal Officer's  Procedures to Ensure Compliant,  Accurate and Timely Payroll Processing

Financial Management Services

August, 2010

To outline the Fiscal Officer's responsibility when it comes to ensuring accurate payroll processing within their department (s).

1.  The Fiscal Officer is responsible for ensuring a proper segregation of duties in their area in order to prevent fraud.  This includes the following:

1. The Fiscal Officer must ensure that the Fiscal Approver is not a Payroll Processor.  Fiscal officers can run the HRMS Departmental Security IUIE report to identify  their departmental payroll processors and fiscal approvers.  It is located in the following folders: 
1. Departmental Reporting > Bloomington Business Officers Group > HRMS Reports > HRMS Departmental Security
2. Departmental Reporting > IUPUI Fiscal Officers Group > HRMS Reports > HRMS Departmental Security
3. Departmental Reporting > Payroll Reports-Departmental > HRMS Departmental Security
2. When Payroll Processors leave the department or change roles, the Fiscal Officer is responsible for requesting that the Payroll Processor's HRMS access is either modified or deleted using the HRMS Access Request form: http://www.indiana.edu/~uhrs/hrms/support/f_approve.shtml
3. The Fiscal Officer is responsible for ensuring that somebody other than the Payroll Processor approves the Payroll Processor's timesheet.

2.  The Fiscal Officer is responsible for ensuring that the Fiscal Approver is reviewing the Fiscal Approver report for inaccuracies prior to payday.   The Fiscal Officer is also able to run a payroll report in the IUIE so the Fiscal Officer themselves can review the payroll report, although it is not required.  Items that must be reviewed include:

1. Reviewing the names on the report to verify that they are employed by the department.
2. Review overtime for reasonableness.  If excessive overtime is noted, it should be addressed.
3. Verify that any terminal pay is consistent with the department's expectations. 
4. Review any additional pays for accuracy.  These can be identified by object code on the report.
5. Check the total to be paid for reasonableness.  This will vary by the size of the department's payroll.  The Fiscal Officer should work with the Fiscal Approver to set a standard for variance in the total payroll.

Larger departments are often unable to verify payroll detail by person, so they should take the following steps to ensure that their payroll is accurate:

1. Review all Associate Instructors and Adjunct Faculty at the beginning of each semester to ensure that they are still employed by the department. 
2. Periodically send lists of hourly employees to each supervisor, asking them to identify any who have terminated.

3.  The Fiscal Officer is responsible for ensuring that the TIME Approver is the appropriate person for that role.  They should also periodically review their TIME Approvers to verify that they are still active employees.  Payroll will provide a quarterly report of TIME Approvers to each department, until an IUIE report can be written.  

The Fiscal Officer is also responsible for ensuring that TIME Approvers and Payroll Process are approving their timesheets and that Payroll Processors are approving the payroll vouchers.  The Fiscal Officer should be using the IUIE TIME super approval report to identify TIME Approvers and Payroll Processors who are allowing the TIME system to super approve the department's timesheets.   It can be located using the following path:
Master Catalog / Human Resource Management System / Payroll / Timekeeping / KPME Reports / Auto Approved Timesheet Detail

The Central Payroll office will notify Fiscal Officers when a payroll processor does not approve their payroll vouchers.  It is incumbent on the Fiscal Officer to rectify these situations when they are identified.

4.  The Fiscal Officer is responsible for ensuring that the Payroll Processor are looking for enroute e-docs that affect payroll prior to the payroll closing. If any potential issues arise as the result of an enroute e-doc, the Payroll Processor must take action to avoid any resulting payroll issues.  The e-docs that potentially affect payroll are:

1. Hire e-doc:  If a new employee's hire e-doc is not final prior to the payroll closing, they will not be paid.  These employees should be added to the next off cycle payroll.
2. Termination e-doc:  If an employee's termination date is prior to the end of the pay period, the employee should be removed from the payroll so they are not overpaid.
3. Maintain pay rate e-doc:  If an employee receives a pay change during the pay period, it's important to verify that they will be paid the correct amount to avoid overpayment or underpayment. 

5.  The Fiscal Officer is responsible for ensuring their department is complying with all University payroll policies located at:  
http://policies.iu.edu/policies/categories/financial/index.shtml

6.  The Fiscal Officer is responsible for monitoring overpayments that occur and that proper action is being taken to ensure the overpayment is collected.  The Fiscal Officer is also responsible for ensuring that proper procedures are in place to prevent overpayments.  These procedures include, but are not limited to, the above 5 SOP procedures. 

Other tools include the Overpayment Policy located at: FIN-PAY-IV-280 and the Overpayment Procedures SOP located at: PSOP 2.0 Overpayment

Fiscal Officer: Person who is trained and hired for the purpose of providing fiscal, policy, and internal control management of all funds in a unit. They are responsible for ensuring that processes and related controls have been established to achieve the mission and objectives of their organization(s). 

Fiscal Approver: Person authorized to approve all HRMS financial transactions.
 

Overpayment Processing

Financial Management Services

September, 2010

To outline the procedures for departments to follow when collecting and processing payroll overpayments.

When a department becomes aware that an employee has been overpaid, they should contact the campus payroll department immediately. If it is prior to the check date and the direct deposit can be withdrawn from the bank or the paper check can be cancelled, it is possible to recover the funds and avoid the overpayment process.

It is the responsibility of the department to contact the employee and make arrangements for repayment of the overpayment. If the employee has already received the direct deposit funds into his account or cashed the actual check, there are various methods for collecting the overpayment amount following the guidelines listed below. The department must prepare a paper adjustment voucher and forward it to the payroll office to begin the process. Please state the reason for the overpayment in the explanation section on the adjustment voucher. For a partial overpayment the adjustment voucher should reflect a POSITIVE (+) entry for the CORRECT gross using the correct earn codes, hours, etc. that the employee should have received for the pay period. A full overpayment requires an email to the payroll office including payment details: name, ID, check date, check number, and net amount. It may take the central payroll office up to five business days to complete the calculation after the adjustment voucher is received.

Overpayments should be processed as quickly as possible to avoid year-end tax problems for the employee. If the overpayment occurs in December, contact the campus payroll department to see what the deadline is for receiving the payment prior to year-end W-2 processing. The campus payroll office role will be to assist the department in understanding the guidelines and calculating the overpayment amount. The departmental account will be credited when the funds have been received by the payroll office and the employee’s record has been updated in HRMS. Any exceptions to the guidelines listed below should be discussed with the campus payroll office prior to making agreements with an employee.

Guideline 1: Employee is overpaid and would like the payback deducted from future wages that will be PAID in the same (tax) calendar year.

1. Department must enter adjustment voucher to be processed in the next on-cycle payroll. Adjustment voucher will indicate the pay period that was paid in error and the GROSS amount to be deducted from the current check (negative).

   Note: This does not apply to December wages that will be paid in the following (tax) calendar year.

2. At the campus Payroll Director’s discretion, adjustments may be spread over multiple future pay periods provided the total gross overpayment is deducted from payrolls that will be paid in the same calendar year as the original payment. The department will need to decide how many pay periods are appropriate and enter adjustment vouchers for each pay period indicating the GROSS amount to be deducted. The adjustment vouchers must be entered prior to voucher cutoff to allow processing time.
   
   Example: A monthly paid employee was overpaid $2000.00 on September 30th. The 2000.00 can only be split into 2 payments and collected back from October and November wages. They do NOT have the choice to deduct from the December payment since those wages are paid in the following tax year. The department would enter an adjustment voucher to deduct $1000.00 before the October cutoff and $1000.00 before the November cutoff.

• The Internal Revenue Service does not allow for current year wage reductions to satisfy a prior year overpayment. Supporting document: See IRS Publication 15, Circular E, Employer’s Tax Guide, Instructions for 941, Prior Period Adjustments, Wage Repayments: http://www.irs.gov/pub/irs-pdf/p15.pdf

• Note: Wages for the current tax year cannot be reduced from the December check because it pays in January of the future tax year. Example: Employee overpaid on 11/30 check and would like the December wages reduced- Not possible.

Guideline 3: Employee is overpaid and is going to write a check to Indiana University to repay the overpayment. The personal check is going to be written in the same (tax) calendar year as the original payment.

1. Department should forward the paper adjustment voucher indicating the GROSS amount the employee should have received to the payroll office. If the overpayment was a partial amount, the payroll office will calculate the NET overpayment amount that should be included in the personal check and communicate this amount to the department. A full overpayment requires an email to the payroll office including payment details: name, ID, check date, check number and the net amount. The payroll office will calculate the NET overpayment amount that should be included in the personal check and communicate this amount to the department.

2. The department will verify the payment received from an employee is correct and will forward the payment to the campus payroll office. The check should not be deposited into a departmental account.

Guideline 4: Employee is overpaid and is going to write a check to Indiana University and check is going to be written in the following (tax) calendar year.

1. Regardless if the overpayment includes the full or partial payment amount, the payroll office must calculate the overpayment amount. The department should prepare an adjustment voucher indicating the GROSS amount the employee should have received and forward to the payroll office for a partial overpayment. A full overpayment requires an email to the payroll office including payment details: name, ID, check date, check number and the net amount. The payroll office will calculate the NET overpayment amount that should be included in the personal check and communicate this amount to the department.

2. Federal, state, and local income taxes, garnishments, US Savings bonds and Tax Deferred Annuities (TDA) will be included in the payback amount if the W-2 process has already been started for the calendar (tax) year. A corrected W-2 will not be issued to reduce the taxable income for federal, state, and/or local taxes. See Internal Revenue Code Section 1341 for information on “Restoration of amounts received or accrued under claim of right." You can direct employees to the following: IRS Publication 17, Your Federal Income Tax: Section: Other Income; Repayments. This is for the individual’s use in claiming a deduction or a credit in the year they repaid the income: http://www.irs.gov/pub/irs-pdf/p17.pdf

3. Social Security and Medicare taxes will not be included in the payback amount if the employee returns a completed “Request for Prior Year FICA Refund” form. This form is located on FMS Tax's list of tax forms.

   The employee will receive a corrected W-2 to reflect the reduction in Social Security and Medicare wages/tax only. The refund form is required by the IRS and provides the university authorization to recapture the employee portion of the FICA taxes from the IRS. If we are unable to recapture the employee portion of the taxes from the IRS, we will not be providing the refund of those taxes to the employee by way of excluding those taxes from the computed payback amount and the employee would be responsible for repayment of the Gross amount of the check.

4. The department will verify the payment received from an employee is correct and will forward the payment to the campus payroll office. The check should not be deposited into a departmental account.

Payroll Procedures for Payments after Death

Financial Management Services

October 1990

To outline the procedures for departments to follow concerning the death of an employee

1. Any payments that are pending after the date of death should be stopped. If there are pending direct deposit transactions, the payroll office should submit a request to have it returned if possible prior to check date.
   
   
2. The department will prepare and submit the normal termination documents to Human Resources/Payroll; eDoc and paper adjustment voucher for final payout including all terminal pay earn codes.
   
   
3. The payroll office can direct the department to the FMS website; Payroll; Special Processing Procedures; Payroll Procedures for Payments after Death.  In the document are 4 links to the required documentation that must be completed by the family of the deceased.  These documents will explain our procedures for making final payments to employees.
1. How to Claim a Final Paycheck
2. Paycheck Claim
3. Affidavit of No Administration
4. W-9 Request for Taxpayer Identification Number and Certification

1. When the adjustment voucher for the final payment from the department/campus is received in payroll, the 45-day waiting period will be calculated from the date of death provided an estate has not been opened. The termination payout should be approved following normal procedures.
   
   
2. All paperwork will be monitored and maintained in FMS by the Termination Coordinator.
   
   
3. Provided an estate has not been opened, upon receipt of the Paycheck Claim, Affidavit of No Administration, W-9 Tax form and the completion of the 45-day waiting period, the payment will be issued. In accordance with Indiana law, if an estate is opened and the “Letters of Administration” and W-9 Tax form are received, the 45-day waiting period does not apply.
   
   
4. The Retirement Coordinator in FMS will process the final payment on a Disbursement Voucher including all wages, refunds, etc. due. Retirement contributions will be calculated and wages will be adjusted as needed. If an estate was opened, the check will be issued “to the estate of” the deceased. If an estate is not opened, the check will be issued to the claimant signing the Paycheck Claim form.
   
   
5. Social Security and Medicare taxes will be withheld if the final payment is made in the same tax year in which the death occurred and will appear in boxes 3 and 5 of the employee’s form W-2. If the final payment is made in the year following the date of death, social security and Medicare taxes will not be withheld and will not be reported in boxes 3 and 5 of the employee’s form W-2. The FMS tax area will update Deceased (DCD) wages in HRMS.
   
   
6. The check will be disbursed according to instructions indicated on the Paycheck Claim form. At tax year-end a 1099 form will be issued to the person claiming the final paycheck.

FLSA Overtime Calculator for Biweekly Payroll

Financial Management Services

August, 2008

To compute an estimate of overtime pay for situations where multiple rates or bonus-type payments (that will inflate the overtime rate) are involved.

This calculator will help you compute an estimate of overtime pay for situations where multiple rates (weighted average) or bonus-type payments (that will inflate the overtime rate) are involved. Due to rounding, the actual amount paid may be slightly different than the calculated amount on this spreadsheet.

In the spreadsheet linked below, fill in the hours and rate information, as well as the total of any bonus-type payments the employee is receiving in the given earnings period. There are comments throughout the document that will help you know what to enter, as well as explain the calculated amounts. You can see these comments by placing your mouse over a cell that has a red triangle in the top right hand corner.

Only enter in the orange sections and only enter what is earned for a 1-week period. If you have more than one week to calculate, you will need to do it separately. After you calculate for the first week, you can use the Clear button to reset the worksheet. But first, you will need to enable the macro to run.

Link to the FLSA Excel 97-03 worksheet

Gross Up Process for Additional Pay Earnings

Financial Management Services

March 2008

To process a one-time exact NET payment amount for an employee.

The most common use involves one-time additional payments. If you “gross up” the payment, the department will be charged the additional amount to cover the employee's applicable taxes. This type of payment must be processed using the eligible earn codes on the Additional Pay Edoc.

Edoc information:

• You should use an effective date from a previous pay period. You do not want the transaction to be selected on the current payroll voucher.
• Indicate the exact NET amount you want the employee to receive.
• In the notes section, indicate that this payment will be “grossed up” to include taxes.

Adjustment Voucher information:

• Gross up transactions must be processed in the off-cycle payroll or as on-line checks. They cannot be included in the regular on-cycle payroll.
• You will not be charged the off-cycle fee if the transaction is processed in the off-cycle payroll using normal direct bank procedures. You will be charged the on-line fee if you request a paper check.
• Electronic adjustment voucher: After you enter the additional pay earn code/sequence number and tab out of the field, a GROSS UP box will be displayed. Click the box if you want the system to calculate the “grossed up” net amount. In the amount field, indicate the exact NET amount the employee should receive.

See the following policies:
Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: Payroll PSOP 1.0

Accounting Administration Policy I-1, Role of Fiscal Officer, Account Manager, and Account Supervisor: FIN-ACC-I-1

Holidays - Recording Hours Worked

Financial Management Services

August, 2009

To provide procedures for holiday processing for staff in BW1 and BWP Paygroups

Premium holidays for pay purposes: New Year’s Day (January 1^st), Memorial Day (last Monday in May), Independence Day (July 4^th), Labor Day (first Monday in September), Thanksgiving Day (third Thursday in November), Christmas Day (December 25^th)

Non-Premium holidays for pay purposes: Campus Holiday (available March 1), Martin Luther King Day (third Monday in January), Friday After Thanksgiving (third Friday in November)

If employees are away from work on the “official IU observed holiday” and it is a regular scheduled work day, hours should be recorded using the HOL earn code. You cannot use previously accrued holiday hours to cover the current holiday.

Earn Codes:

HOL    Holiday                    Away from work for current holiday (paid, subtracts from reg pay)

HAC     Holiday Accrued       Add hours to the holiday bank to be used later

HBP     Holiday Bonus         Additional pay for working on holiday – straight hourly rate

HIP      Holiday Incentive     Additional pay for working holiday - .50 x hourly rate (IUPUI Only)

Assumptions:

1. Examples in document are for full-time biweekly staff employees (You need to prorate for employees working less than full-time).

If you have holiday policy issues, please refer to the UHRS policy manual.

Biweekly Staff Employees (BW1):

Scheduled Work Day:

If an employee works 8 hours* on the holiday and it is their regular scheduled work day, they should receive the following compensation:

• Premium Holiday: 20 hours Maximum (double time and one half)
• Non-Premium Holiday: 16 hours Maximum (double time)

The following options are available for compensation:

Premium Holiday: Hours worked should be included in regular (RGN) hours and one of the following.

• Option 1: Accrue 12.00 hours of holiday to be used later: HAC 12.00 hours

Or

• Option 2: Pay 12.00 hours of HBP (holiday bonus pay)

Or

• Option 3: Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours AND Pay 4.00 hours of HBP (holiday bonus pay)

Or

• Option 4: IUPUI ONLY:  Accrue 8.00 hours of holiday to be used later; HAC 8.00 hours AND Pay 8.00 hours of HIP (holiday incentive pay).

*If hours worked are less than 8, the calculation is prorated.  If an employee works more than 8 hours, the holiday premium is limited to 8 hours. See examples below.

Non-Premium Holiday: Hours worked should be included in regular (RGN) hours and one of the following.

• Option 1: Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours (includes IUPUI)

Or

• Option 2: Pay 8.00 hours of HBP (holiday bonus pay)

Example 1: Employee’s regular schedule is M-F, 8-5.  Premium holiday occurs on Monday and employee must come to work for 4 hours and used HOL for the other 4 hours. Record one of the following options for Monday:

• RGN 4.00 hrs, HOL 4.00 hrs, HAC 6.00 hrs
• RGN 4.00 hrs, HOL 4.00 hrs, HBP 6.00 hrs
• RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs, HBP 2.00 hrs
• IUPUI Only: RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs, HIP 4.00 hrs

**The extra compensation for hours worked on this premium holiday = 4 hrs x 1.5 = 6 hrs

Example 2: Same schedule as above except holiday is non-premium.  Record one of the following options for Monday:

• RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs (includes IUPUI)
• RGN 4.00 hrs, HOL 4.00 hrs, HBP 4.00 hrs

**The extra compensation for hours worked on this non-premium holiday = 4 hrs x 1 = 4 hrs

Example 3: Employee’s regular schedule is M-T, 7-6 (10 hrs days).  Premium holiday occurs on Monday and employee must come to work for 10 hours.  Record one of the following options for Monday:

• RGN 10.00 hrs, HAC 12.00 hrs
• RGN 10.00 hrs, HBP 12.00 hrs
• RGN 10.00 hrs, HAC 8.00 hrs, HBP 4.00 hrs
• IUPUI Only; RGN 10.00 hrs, HAC 8.00 hrs, HIP 8.00 hrs

**The extra compensation for hours worked on any premium holiday is limited to 12.00 hours regardless of the number of hours worked.  8 hrs x 1.5 = 12 hrs

Scheduled Day Off:

An employee whose regular day off is both the observed and the legal holiday, will receive (8) hours off with pay at a mutually agreeable date.  Holiday should be accrued with the HAC code.

If an employee works any hours on a holiday (premium or non/premium) which occurs on their regular scheduled day off, they receive the following compensation for the day:

• 8 hrs holiday accrued (HAC), and OVT for any hours worked on the holiday**.

** If the employee had time off during the week on earn codes that do not count towards the overtime calculation, these extra hours may show up as NEP/NEC in TIME.  You will need to wait until after the hours are loaded to the voucher and change them to OVT.

Special Note: Employees working alternate schedules that are required to work on the actual US holiday would follow these procedures on the US holiday instead of the IU observed holiday.

Biweekly Professional Staff Employees (BWP):

When Professional Staff work on a holiday, they receive equivalent time off. Professional Staff employees who are eligible for overtime (BWP) receive time off at a later point equal to the actual time worked on the holiday, up to 8 hours. If the employee works a partial holiday, the portion not worked is considered time off and is charged to HOL hours.

Hours worked should be included in regular (RBP) hours.

AND

• Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours

The calculation is: Hours worked X 1 = HAC

See the following policies,
Payroll PSOP 1.0, Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: PSOP1_Fiscal_officer

Paycard Policy Information

Financial Management Services

March, 2010

To provide an alternate method of payment for those individuals who do not/cannot have direct deposit of their paychecks. 

Payroll Administration Policy IV - 40, Distribution of Payroll Checks: FIN-PAY-IV-40

Payroll Administration Policy IV - 20, Direct Bank Depositing of Employee Wages: FIN-PAY-IV-20

Paycheck Reissue Process

Financial Management Services

March, 2010

For employees who have not enrolled in direct deposit, the payroll department will issue a paper check for the employee's first paycheck. This procedure describes the process for replacing a check that is lost or stolen.

1. For lost paychecks, the payroll department will initiate a check stop payment and reissuance at the request of the employee’s departmental or regional payroll office.
2. Please advise the employee that once the reissue is initiated, the stop payment on the original check becomes effective immediately. If they find the original check, they will be unable to cash it. They must wait for the reissued check.
3. The department or regional payroll office should use the online Cash Control Stop Payment and Reissue workflow to initiate the reissue.
4. Once initiated, Cash Control will stop payment on the original paycheck effective immediately. They will request a reissue. Central payroll will reissue the check and it will be printed by the next day at the latest. The employee can elect to have the new check mailed to their home or pick it up at their campus payroll office. Depending on timing, the new check may take 2-3 business days to reissue.
5. If the employee elects to pick up the check at their campus payroll office, please indicate that on Cash Control’s Stop/Reissue form. BL and IUPUI can print their reissues and make them available immediately.In the interest of fairness, Bloomington will FedEx checks to the other campuses for the time being if the employee elects to pick up their check. If this becomes too expensive, we will begin putting them in Campus Mail.

Several key points to communicate to the employee about the stop payment and reissue process:

1. If a check is stopped and reissued and the original check is subsequently found, the employee will be unable to cash the original check. They must wait for the reissued check.
2. The stop payment and reissue process can take 2-3 business days, therefore they will not have a new check immediately. 
3. The employee can have the reissued check mailed to their home or pick it up in their campus payroll office.

Implementing IU's Policy on Mobile Plan and Device Allowance

Financial Management Services

March 2006

To outline the procedures for departments in the issuance of additional pay for an employee who uses a personal mobile plan and/or device for departmental business.

1. Employees whose mobile plans and devices fall under the provisions of the Mobile Plan and Device Allowance policy may be reimbursed through the Additional Pay Edocs (either Create Additional Pay or Maintain Additional Pay).
2. The Additional Pay Edocs are found in One.IU HRMS tile under the HRMS eDocs section. Instructions for the Additional Pay eDocs can be found on the UHRS website. Other assistance with these Additional Pay Edocs may be obtained from your campus Human Resources office.
3. The initiator of the Create Additional Pay Edoc begins by choosing the appropriate earn code and reason combination. For payments under the Mobile Plan and Device Allowance policy, Digital and Voice Allowance (DVA) should be chosen. DCA will auto-populate as the reason code for mobile plans and devices. After selecting an effective date, the initiator must enter the Earnings End Date and the Total Amount of the additional pay for the period covered by the Edoc. Departments are responsible for determining this amount themselves, within the policy guidelines for the allowances.
4. The Edoc, once completed, will route for approval through the appropriate channels. Once it has all approvals and has been saved to the HRMS system, this pay will appear on the employee's payroll voucher as a non-changeable field. In order for the reimbursement to be included in an employee's pay, all human resources Edoc and payroll deadlines must be met.

*NOTE: If the effective date of the Edoc is retroactive to the current pay period, the departmental payroll office must prepare adjustment voucher(s) as needed to ensure that the employee's retroactive additional pay is processed and paid. Any retroactive pay will not appear on the current payroll voucher unless an adjustment voucher is processed for the current pay period.

B. Reimbursement payments:

In general, the Mobile Plan and Device Allowance policy allows payment to an employee for cell phones and other data access plans. To initiate such an allowance, the unit's Fiscal Officer and the relevant employee must fill out and sign the Mobile Use Attestation Form. The Fiscal Officer will maintain each Mobile Use Attestation Form and documentation of any changes to the allowance amount.

The payment must be $50, $100, or $150 per month (and should be commensurate with the unit's business needs, the position requirements, and the employee's cost for his/her mobile plan, devices, and accessories), and may be set up to cover a specific period of time (such as several months, one year, etc.). Because this allowance is non-taxable, do not gross it up.

The financial policy titled Mobile Plan and Device Allowance should be reviewed to determine relevant implementation conditions and restrictions before following these procedures to reimburse employees for use of personal mobile plans and/or devices for departmental business:

See Accounting Administration Policy I-1, Payroll Policy I-480, Mobile Plan and Device Allowance: FIN-ACC-1-480

Monthly Payroll Vouchers – Attendance Adjustments for NO PAY Hours

Financial Management Services

April, 2012

Monthly staff employees (S10/S12) use the ePTO system to record time off hours at the end of each month. The ePTO system does not interface with the HRMS system or payroll vouchers to reduce pay. Therefore, when an employee records a NO PAY earn code in the ePTO system, the departmental payroll processor will need to make the adjustment on the payroll voucher.

• On the voucher, enter the appropriate earn code and the number of hours for any adjustment needed for attendance reasons (no hours to cover the absence). The system will use the hourly rate on the job (base salary/2080), multiply the rate by the number of hours, and SUBTRACT this amount from the monthly pay amount. If you enter a large amount of NO PAY hours, this could result in a negative calculation for the month. If so, you will need to calculate the number of hours you can process and the remaining hours will need to be deducted using an adjustment voucher in the following month.
  
  
• If you know an employee has NO PAY hours in the current month before the monthly payroll is processed, enter the appropriate earn code and hours on the monthly voucher to avoid an overpayment.
  
  
• If the NO PAY codes exceeded the balance in a prior month, you need to enter an adjustment voucher using the prior month dates, the appropriate NO PAY earn code, and hours. This is a positive adjustment since you want to SUBTRACT pay. If you enter a large amount of NO PAY hours, this could result in a negative calculation in the payroll. If so, you will need to calculate the number of hours you can process and the remaining hours will need to be deducted using an adjustment voucher in the following month.After the November 30 payment is confirmed, you must handle these situations as overpayments.**
  
  
• *The IND code should only be used at the direction of the Worker’s Comp area. They will provide specific instructions concerning the amount to deduct on the payroll voucher.

PSOP 2 - Overpayment Processing Procedures

See Financial Related Policies:
http://policies.iu.edu/policies/categories/financial/index.shtml

Overtime Policy – Special Exceptions

Financial Management Services

April, 2012

Financial Management Services

April, 2012

How to process leave plans and benefits at time of termination or retirement of IU employees

Monthly (S10, S12) and biweekly (BW1, BWP) appointed staff enrolled in leave plans are entitled to receive payout of benefit accrual hours at time of termination/retirement subject to policy restrictions.

• Biweekly staff (BW1) must have at least 6 months of service to receive termination payout for Vacation hours.  Refer to UHRS for service date assistance.
• All terminal payout for accruals should be processed with the last regular payroll cycle.
• If terminal payout is not included in last regular payment, per policy, it should be processed in the next available off-cycle. We do not charge the off-cycle fee to process terminal pay.
• If a staff employee transfers to an Academic position, they receive payout for any accrued benefit hours. You should include the terminal payment with the last staff payment if possible. Contact your FMS Payroll Processor for assistance.

• Refer to policy and/or contact UHRS if you need assistance determining the last day of work, retiree status, and termination action reason codes.  The Termination effective date is the first day not working. See Separation Pay Policy
• Special note: Monthly staff whose last day working is the last day of the month, their eDoc term date is the first day of the next month i.e. LDW 5/31, Term eDoc 6/1 = Process term pay in May payroll cycle. Biweekly staff whose last day working is Friday, their eDoc term date is Saturday.
• When termination eDoc is final approved and saved, the employee will be removed from the payroll voucher.  The system will create a Final Check (FC Batch) paysheet .  The central payroll office will use the FC payline to process the final payment including terminal pay.

• Include all regular pay and time off codes for the last pay period for BW1/BWP staff. Include all regular pay for S10/S12 for the last period. Time off codes for monthly staff are recorded in ePTO only. Be sure to indicate correct job record number.
• Include active additional pays. Be sure to indicate correct sequence number and prorate if appropriate.
• Indicate the exact funding account split(s) for each earn code.

• Review timesheet to determine hours worked and any time off hours used during the last pay period of employment.
• The Approver and Payroll Processor can approve the timesheet to Final. These hours and approvals will be there for record keeping, but they will be overridden by the final adjustment voucher entry.
• Review Leave balances to determine payout based on years of service and policy.  You should be running the IUIE Hours Balance report after each biweekly payroll closing to monitor accrual balances.
• Calculate prorated vacation accrual for last pay period to include in termination payout.
• Vacation/PTO Accrual Chart is published on FMS website in Payroll section.
• Determine accrual rate based on service years.
• Divide accrual rate by 80 = hourly accrual rate (also on chart).
• Multiply hourly accrual rate times hours in pay status in final pay period.
• Prepare PAV for final pay period, additional pay, and all terminal payout.
• Separate work/benefit hours by FLSA pay period end date (week 1/week 2).
• RGN hours must equal total hours in pay status for the week even if the employee used time off codes
• Example: Employee’s last day of work was on Friday so they were in pay status 40 hours in the last week of work. They took 2 days off during the week due to sickness. RGN hours = 40.00, SCK = 16.00 (the 16 SCK hours will subtract from the 40 RGN hours and the employee will receive 16 hrs SCK, 24 hrs RGN).
• Indicate time off hours by earn code (SCK, VAC, etc.) in appropriate week(s).
• Include any additional pay earn codes (ALW, FYS, Temp Pay) in appropriate week(s) by sequence number. Prorate FYS payment for partial weeks.
• Combine Accrued Vacation hours balance + calculated vacation accrual for last pay period to determine termination vacation payout per policy restrictions. See Vacation/PTO Accrual Chart.
• Include Vacation payout hours in final pay period end date using the terminal earn code (Max=872).
• BW1: TVC – Terminal Vacation-Biweekly
• Include Holiday hours in final pay period end date using the terminal earn code.
• BW1: THL –Terminal Holiday-Biweekly
• Include Compensation hours in final pay period end date using the comp payout code.
• BW1: CMP – Comp Hours Payout
• If the employee qualifies for retirement, calculate and include any Sick hours using the terminal earn code.
• BW1: TSK – Terminal Sick - Biweekly

• Review timesheet to determine hours worked and any time off hours used during the last pay period of employment.
• The Approver and Payroll Processor can approve the timesheet to Final. These hours and approvals will be there for record keeping, but they will be overridden by the final adjustment voucher entry.
• Review Leave balances to determine payout based on years of service and policy.  You should be running the IUIE Hours Balance report after each biweekly payroll closing to monitor accrual balances.
• Calculate prorated PTO accrual for last pay period to include in termination payout.
• Vacation/PTO Accrual Chart is published on FMS website in Payroll section.
• Determine accrual rate based on service years.
• Divide accrual rate by 80 = hourly accrual rate (also on chart)
• Multiply hourly accrual rate times hours in pay status in final pay period.
• Prepare PAV for final pay period, additional pay, and all terminal payout. See Separation Pay Policy
• Separate work/benefit hours by FLSA pay period end date (week 1/week 2).
• RBP hours must equal total hours in pay status for the week even if the employee used time off codes.
• Example: Employee’s last day of work was on Friday so they were in pay status 40 hours in the last week of work. They took 2 days off during the week. RBP hours = 40.00, PTO = 16.00 (the 16 PTO hours will subtract from the 40 RBP hours and the employee will receive 16 hrs PTO, 24 hrs RBP).
• Indicate time off hours by earn code (SCK, PTO, etc.) in appropriate week(s).
• Include any additional pay earn codes (ALW, Temp Pay) in appropriate week(s) by sequence number.
• Add Accrued PTO hours balance + calculated PTO accrual for last pay period to determine termination PTO payout per policy restrictions. See Vacation/PTO Accrual Chart
• Include PTO payout hours in final pay period end date using the terminal earn code.
• BWP: TMP – Terminal PTO
• Include Holiday hours in final pay week using the terminal earn code.
• BWP: TMO – Terminal Holiday
• Include Compensation hours in final pay week using the comp payout code.
• BWP: CMP – Comp Hours Payout
• Include any remaining Honorary Vacation hours in final pay period end date using the terminal earn code.
• BWP: TMH – Terminal Honorary Vacation
• If the employee qualifies for retirement, calculate and include any Sick hours using the terminal earn code.**
• BWP: TMS – Terminal Sick

• Prior to submitting the Termination eDoc, the ePTO Administrator should work with the employee to make sure that the employee has recorded all final time-off information in ePTO.
• The employee will have access to do this until their termination date.
• The supervisor or ePTO Administrator can also add this data to the calendar for the employee.
• When submitting the Termination/Transfer eDoc, insert a note with the following information:
• Regular Pay amount for final month of work (prorated based on days in active status).
• Statement verifying the ePTO calendar is up to date. This signifies that either the employee, or the ePTO Administrator has recorded all time off on the calendar. If the ePTO calendar is changed after the eDoc is routed, please contact UHRS to correct.
• Special note: employee’s whose last day working is the last day of the month, their eDoc term date is the first day of the next month = termination paperwork should be processed in the on-cycle closing of the month in which they last worked. i.e. LDW 5/31, Term eDoc 6/1 = May payroll cycle.
• When the Termination eDoc is final approved, the ePTO Administrator will be responsible for accessing the employee’s calendar to complete the terminal paper adjustment voucher (PAV). When the ePTO Administrator logs into the employee’s calendar, the system will:
• Display a bubble by the employee’s name which indicates that employee is terminated. The employee will show in the hierarchy for one month from the termination effective date, or until the position is filled. After one month, if the position is not filled, only the bubble will display. The employee’s calendar is still available through the “Find Employee” search box for ePTO Administrators. Once the position is filled, only a central office user will be able to access the calendar.
• Prorate the monthly accruals for the month of the effective date of termination
• Inactivate all entries in the system for the employee after the effective date of the termination.
• Prepare the PAV for the final pay period, additional pay and all terminal payout:
• Monthly REG pay prorated by work days in the month (this would include all hours in active status in the month they terminated. The REG amount would include any accruals used and/or holidays in the month they terminated.).***
• Additional Pay earn codes and/or amounts (ALW, Temp Pay) by sequence number prorated by work days in the month. ***
• Any termination payout due in accordance with policy. See Separation Pay Policy
• TMP – Terminal PTO hours
• TMO – Terminal Holiday hours
• TMS – Terminal Sick hours (IU Retirees Only**)
• TMH – Terminal Honorary Vacation
• TMV – Terminal Vacation  (PB Plan only)
• TMB – Terminal Bonus  (PB Plan only)
• In the ePTO System the ePTO Administrator will then be responsible for:
• Providing the Honorary, Sick, and Holiday balances from the Time Off Detail tab in ePTO as of the last day of the month of termination
• Submitting and approving the final monthly calendar

How to figure prorated accruals in last working pay period for BW1/BWP Staff:
Accrual rate divided by 80 times hours in pay status = prorated accrual
Example: 4.31/80 x 56 = 3.017 (3.02)

How to figure Sick Payout for eligible Retiree’s (must be enrolled in PERF or 11.25% retirement plan):
If Sick accruals = 152 - 311 hrs 
(Accrual Amt – 152) x 25% = Balance To Be Paid
Example: 300 – 152 = 149 x 25% = 37.25 hrs 

If Sick accruals = 312 and above
((Accrual Amt – 312) x 50%) + 40 = Balance To Be Paid
Example: 900 – 312 = 588 x 50% = 294 + 40 = 334 hrs

See Separation Pay Policy

See Financial Related Policies
http://policies.iu.edu/policies/categories/financial/index.shtml

1. 15-day paid leave
   1. An eligible staff employee is entitled to a paid leave of absence for military service. The employee receives pay for all scheduled workdays during the service period.
      
      1. This paid leave will start on the first date shown on the military order and will continue until 15 consecutive workdays have elapsed—or until the employee returns to work—whichever occurs first.
      2. Paid leave will not exceed 15 paid days in any military year (October 1 through September 30).
   2. An employee is entitled to this 15-day paid leave for active duty, training duties, or reserve call-ups for which the employee has military orders.
2. Weekend training
   
   1. Normally, the paid military leave of absence does not apply to training drills regularly scheduled on the weekend. To receive pay for weekend drills, an employee must meet all three criteria listed below. Any such paid time will be deducted from the 15-day paid leave annual allotment in paragraph 1.a.ii above.
      
      1. The employee's regular work schedule must include Saturdays or Sundays.
      2. The employee must be scheduled to work the weekend of the training.
      3. The employee must be ordered for military training.
      
      

      MIL

      Military Duty

      15 Day paid leave per military orders. Limited to 15 paid days yr. (10/1 thru 9/30). Hours reduce from reg pay and attendance accruals are earned.

      Hours

      Subtracts from reg pay

      BW1, BWP

Situation 2, After Paid Leave Exceeded:

1. Service in excess of 15 days
   1. If an employee incurs absences for more than 15 days service, he or she may do the following:
      
      1. Charge the absence to accrued time off (PTO, vacation, compensatory time, or holidays) until these categories of time off are exhausted. When the employee has used all of these categories of accrued time off, he or she is to go on a leave of absence or separate.
      2. Go on a leave of absence or separate.
   2. Using accrued time off will not count against the maximum amount of PTO or vacation allowed in a year.
   
   

   VML	Vacation Military	Vacation hours used during approved military leave when MIL hours are exceeded. Hours reduce Vacation Accrued balance and accruals are earned. Hours do not count towards annual max usage.	Hours	Subtracts from reg pay	BW1
   PML	PTO - Military Duty	PTO hours used during military training, etc. that exceeds 15 day annual military leave. Hours subtract from reg, reduce PTO bank, earn attendance accruals, but do not count towards annual max usage.	Hours	Subtracts from reg pay	BWP

   
   **No special codes needed for Absent, Sick, Comp or Holiday hours taken, use normal ABS, SCK, CPT or HTK earn codes.
2. Extended active military duty
1. A military leave of absence without pay shall be granted for an employee in a position other than one that is temporary. The regulations define temporary positions as those that exist for a brief, non-recurrent period with no reasonable expectation that the employment would have continued for a significant period.
2. To be eligible, an employee must meet one of the following criteria:
1. The employee is inducted through Selective Service.
2. The employee enlists voluntarily.
3. The employee is called through membership in the uniformed services.
3. The limit on the cumulative time away from work at the university for military service and still retain the USERRA rights is five years.
4. The military leave of absence covers the dates that the employee is actively performing service. The five-year limit may also extend to a later date when the employee is able to obtain a release from active duty. Time between completing the uniformed service and reporting back to work or requesting to return does not count against the five year limit. The law provides for other exceptions which are to be discussed with the campus Human Resources Office if a case arises.

1. Working conditions established by one’s length of university service.
2. The position that the person would have been in had the leave or separation not occurred. This may be at the same, higher or lower classification level and includes the completion of any evaluation period that would have expired during this time.
3. Restoration of unused income protection time and vacation time or PTO, as applicable.
4. The university seniority date that existed at the time of separation, if a separation occurred.
5. The occupational unit seniority date provided the employee is returned to the same occupational unit.
6. University service credit plus the time away from work during the military leave of absence or separation, if a separation occurred.
7. The salary or pay rate that the employee would have been at but for the absence for military service.
8. IU-funded contributions that would have been allocated to the employee’s retirement plan but for the absence for military service.
9. The time in the military service will count towards fulfilling the length of employment and hours of work requirements to be eligible for a leave under the FMLA policy.
10. Accrual of vacation/PTO for the period in military service up to a limit of one year’s accrual per period of military service. This amount will be awarded only if the individual returns to work. The rules on the maximum usage of vacation or PTO in a year will continue to apply.

Situation 3, Military Family Leave:

1. Leaves for Military Families
1. An employee who is a family member of a person on active duty in the United States Armed Forces is eligible for military family leave under the Indiana Military Family Leave Act, www.in.gov/legislative/ic/code/title22/ar2/ch13.html.
2. The Act provides for unpaid leave for a total of 10 workdays per calendar year during one or more of the following periods:
1. Within the 30-day period before a family member begins active duty,
2. During the period that a family member is on active duty, or
3. During the 30-day period following a family member's return from active duty.
4. The time can be taken in full in one period or split amongst the periods.
5. An employee is eligible for such leave for each family member on active duty.
3. To qualify as a family member, the employee must have one of the following relationships to the person on active duty:
1. Spouse
2. Parent (biological, adoptive, foster, step, or court-appointed guardian or custodian)
3. Grandparent (biological, adoptive, foster, or step)
4. Child (biological, adopted, foster, or step)
5. Sibling (biological, adoptive, foster, or step)
4. Time off for employees who are other family members is discretionary and subject to supervisory approval.
5. Indiana University extends this benefit to a same sex domestic partner as qualified by the University’s Affidavit of Domestic Partnership.
6. A leave request that meets the family member and active duty criteria above must be granted unless the employee:
1. Has not been employed for at least 12 months and worked at least 1,500 hours in the 12 months immediately preceding the day that the military family leave begins, or
2. The employee has used all 10 workdays for that family member for the calendar year.
7. The Military Family Leave Act does not provide additional time off with pay. A Staff employee must use accrued Vacation or PTO to cover the leave before taking any of the time off without pay or using any other accrued time off.
1. Vacation or PTO time used during a military family leave will not count towards annual limits on the use of such time.
2. Time off without pay during a military family leave is an excused absence with benefit accrual and will not count in any attendance-related policies.
3. If the employee does not have sufficient accrued vacation or PTO to cover the leave, any other accrued time off or absence without pay is to be used at the employee's choice.

Situation 4, FMLA Military Caregiver Leave: http://policies.iu.edu/policies/categories/human-resources/time-off/military.shtml

1. Military caregiver leave
1. Military Caregiver Leave is FMLA leave to care for a covered service member who has suffered serious injury or illness in the line of covered active duty. The term covered active duty means duty during deployment to a foreign country.
2. A covered service member means a current member of the Armed Forces, National Guard or Reserves who is undergoing medical treatment, recuperation, therapy, is in outpatient status, or is otherwise on the temporary disabled list for a serious injury or illness or is a veteran undergoing treatment, recuperation, or therapy for a serious injury or illness and who was a member of the Armed Forces, National Guard, or Reserves, at any time during a period of 5 years preceding the date on which the veteran undergoes that medical treatment, recuperation, or therapy.
3. For purposes of this section, the term ‘serious injury or illness’ means:
1. In the case of a member of the Armed Forces, National Guard, or Reserves, an injury or illness that was incurred in line of duty on active duty in the Armed Forces (or existed before the beginning of active duty and was aggravated by service in line of duty on active duty in the Armed Forces) and that may render the member medically unfit to perform the duties of the member’s office, grade, rank, or rating; and
2. In the case of a veteran who was a member of the Armed Forces, National Guard, or Reserves at any time during a period described in paragraph P.2. above, a qualifying (as defined by the Secretary of Labor) injury or illness that was incurred in line of duty on active duty in the Armed Forces (or existed before the beginning of active duty and was aggravated by service in line of duty on active duty in the Armed Forces) and that manifested itself before or after the member became a veteran.
4. An employee who has a qualified family relationship with a covered service member may take up to 26 weeks of leave during a single 12-month period. A qualified family relationship is a spouse, domestic partner, parent, child or next of kin. Contact the campus human resources office to determine if a qualified family relationship exists.
1. The leave entitlement described in this paragraph applies on a per-covered service member, per-injury basis, such that an eligible employee may be entitled to take more than one leave if the leave is to care for a different covered service member or to care for the same covered service member with a subsequent serious illness or injury.
2. An employee may have an FMLA leave for up to 12 weeks for one of the qualifying reasons covered in paragraph D. above in the same 12-month period in which an FMLA leave is taken to care for a covered service member.
3. No more than 26 weeks total of FMLA leave may be taken within any single 12-month period.

SUBJECT:

Recording Injury Hours in the ePTO and on the Monthly Voucher

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

November 2015

DATE OF
LAST REVISION:

November 2015

PSOP NO:

14.0

RATIONALE:

To clarify appropriate usage of injury time earn codes on the monthly payroll voucher

PSOP:

In the “Add Dates” section, on the “basic” tab, employees can choose PTO, Sick, Holiday. Click on the “advanced” tab to see these other codes. You must request access to the expanded Injury codes using the ePTO Support Form: http://hr.iu.edu/hrms/ePTO/ePTOsupport.html

ePTO Recording Hours: The codes available to record for Injury are:

• INJ (first 40 hours paid) – VOUCHER: no change to monthly payroll voucher
• IJM (Injury – No Pay-PAE w/benefits), record hours that Worker’s Comp will compensate directly.VOUCHER: enter IJM on the voucher and a NEGATIVE amount that should NOT be paid. This amount will be subtracted from the monthly salary so they are not overpaid.
• IJP (PTO used for Injury)– doesn’t count towards yearly usage max. VOUCHER: no change to the monthly voucher.
• IJS (Sick used for Injury)– to keep track of hours used during Injury. VOUCHER: no change to the monthly voucher.
• IJH (Holiday used for Injury)– to record holiday hours used during Injury. VOUCHER: no change to the monthly voucher.
• INH (Honorary Vac used for Injury – PB Plan Only) – to record honorary hours used during Injury. VOUCHER: no change to the monthly voucher.
• INA (Absent used for Injury)– to record unpaid absent hours during Injury. VOUCHER: enter ABE and the appropriate number of hours.

CROSS
REFERENCE:

See UHRS policy PA/SS 8.1 Injury on-the-job,

http://policies.iu.edu/policies/categories/human-resources/health-safety/injury-on-the-job.shtml

RESPONSIBLE
ORGANIZATION:

Financial Management Services

SUBJECT:

Off-Cycle Processing Fees

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

October 5, 2016

DATE OF
LAST REVISION:

PSOP NO:

15.0

RATIONALE:

Financial Management Services (FMS) Payroll is authorized to collect processing fees from departments on certain transactions that result in additional work outside of the normal on-cycle payroll process. This procedure sets the fees associated with the processing of off-cycle payments and online checks.

PSOP:

Off-Cycle Payment Fee: $55 per transaction

Online Check Fee: $85 per transaction

Fee Waivers: FMS Payroll does not charge processing fees for off-cycle payments or online checks that are necessary due to: (i) FMS Payroll mistakes or oversights; (ii) grossing up off-cycle direct deposits; and (iii) special payments needed for regulatory or tax compliance. Further, pursuant to policy FIN-PAY-IV-250, we do not charge processing fees for the following payments:

1. Stop payments and immediate reissue of checks that have been lost, stolen, or mutilated;
2. Direct deposit returns; and
3. Involuntary termination of employment (such as a RIF or involuntary separation).

If you wish to have the processing fee for transactions other than these waived, you must document the reason for the request and submit it to FMS Payroll Director for review and approval

CROSS
REFERENCE:

See the following policy: 

Payroll Administration Policy IV - 250, Off-Cycle Payroll Payments: FIN-Pay_IV-250

RESPONSIBLE
ORGANIZATION:

Financial Management Services