To: Chief Fiscal Officers, Payroll Directors, and MMARS Liaisons
From: Thomas Shack, III, Comptroller of the Commonwealth
Date: June 6, 2017
Subject: Earnings Codes Processing During Split Year Pay Period
Comptroller Memo FY#2017– 21
The purpose of this memo is to inform departments of the methodology for distributing and recording Payroll charges in HR/CMS and LCM/MMARS during the Split Year payroll period. The Split Year Percentage will be 50% to FY 2017 and 50% to FY 2018 for most payroll charges. All reimbursements will charge to FY 2017 as will the other exceptions discussed in this memo
The Office of the Comptroller (CTR), in conjunction with the Information Technology Division (ITD), developed a model to process HR/CMS payroll for LCM processing. The methodology uses HR/CMS summarized posting dates for recording most payroll charges. The Summary Date Model is not exact and requires budget offices to understand the situations in which special calculations are to be considered.
Split Year refers to the period in which one pay period spans two fiscal years. This year the Split Year pay period begins on June 25th and ends on July 8th. LCM will process HR/CMS payroll based on a 10–workday schedule (Monday – Friday). There are 5 workdays (June 26 – June 30) in the Prior Fiscal Year, FY 2017, and 5 workdays (July 3 – July 7) in the New Fiscal Year, FY 2018.
The Split Year Percentage is 50% to FY 2017 and 50% to FY 2018. This percentage can be used to describe most Split Year distributions with the exceptions discussed in this memo.
Departments should NOT encumber funds for the Split Year pay period. Payroll Holds (PHs) are not liquidated until the Accounts Payable payroll periods (pay periods ending on 7/22, 8/5, and 8/19). Please make sure that there are available (unencumbered) funds for the Split Year pay period.
Exceptions That Will Post to FY 2017
Prior Period Adjustments
All Prior Period Adjustments entered during the Split Year pay period will be for activity prior to June 25, 2017. These postings will charge to FY 2017.
Note, however, that any amount that is a Special Accumulator entered in Additional Pay based on Prior Period Adjustments will not charge 100% to FY 2017. The Additional Pay will split 50%-50% between FY 2017 and FY 2018.
Charges Entered in Timesheet for June Pay Period Dates If Combo Code Used
Combo Codes result in detail day-by-day postings for each day where time is posted.
If, for example, an employee posts time on 6/30/2017 in Timesheet, those charges will post to FY 2017 if a Combo Code is used to specify labor distribution for any day processed during the Split Year pay period (including Prior Period charges) or if a Combo Code is used for an Additional Pay Charge for any job for that employee.
When Combo Codes are used, HR/CMS does not summarize payroll charges and sends over charges day by day. Therefore, Timesheet charges for 6/30 will be sent to LCM/MMARS with a Pay Event Begin and End date of 6/30/2017. LCM/MMARS then posts those charges to FY 2017.
If no Combo Codes are used for an employee’s payroll charges, time posted on 6/30/2017 in Timesheet will be distributed by the Split Year Percentage along with the other charges for that employee.
Specific Earnings Codes
Specific earnings codes will always post to FY 2017 during the Split Year Period. HR/CMS sends the earnings codes to LCM/MMARS with a Pay Event Begin and End date of 6/30/2017.
These earnings codes fall into the following categories:
- Reimbursements – Reimbursement earning codes that normally charge to the BB subsidiary (or C98 for Contractors). Departments with Reimbursement payments that must charge Fiscal Year 2018 can do so by either paying from their Dynacash account or by processing the reimbursements in the next pay period.
- Retro Earnings Codes – Any Code with Retro in the description.
- Settlements and Judgments – All Comptroller Settlement codes. Use of these codes requires prior approval by the Comptroller Legal group.
- Sick and Vacation Buyouts Entered as Hours – All sick and vacation buyouts entered as hours. Any buyouts that must charge FY 2018 should be processed as amounts or should be processed in the next pay period.
- Furlough Processing – Furloughs taken during Split Year pay period if the earnings code used is FCT.
A full list of the earnings codes that will post to FY 2017 appears below.
|Earnings Code||Description||MMARS Object Code|
|B01||Travel And Other Expense / Out of State||B01|
|B02||Travel Expense / In State||B02|
|B03||Overtime Meals Expense||B03|
|B04||Tuition / Non-Graduate||B04|
|B05||Conference and Training||B05|
|B06||Membership Dues and Licensing Fee||B06|
|B10||Exigent Job Related Expenses||B10|
|B11||GIC USE ONLY – Healthcare Reimbursement||B11|
|B12||CTR USE ONLY – Non Tax Adjustment||B11|
|B1B||Travel Lodging Expense||B01|
|B92||Taxable Employee Reimbursement||B92|
|BAE||Auto Expense Reimbursement||B02|
|BAG||MIL Basic Housing||B07|
|BAR||MIL Basic Subsistence||B07|
|BB1||Travel Airfare Expenses||B01|
|BB4||Tuition / Graduate||B04|
|BHR||Housing – Cash – Retirement||B07|
|BMI||Car Mileage Reimbursement||B02|
|BMO||Training MOSES Reimbursement||B02|
|BNA||Training NAGE Reimbursement||B02|
|BPD||Per Diem No Retirement||B07|
|BQT||Reimbursement – Qualified Transportation||B11|
|BSE||Training SEIU Reimbursement||B02|
|BT7||Tangible Asset Allowances||B07|
|BX6||Membership Reimbursement – Unit 6||B05|
|C98||Travel Expense – Contract Service||C98|
|CBB||Comp Time Buy Back – Hours||A13|
|D01||Deficiency Regular||A01, A11, A20|
|D02||Deficiency Travel Reimbursement||B02 or other BB Object Code or C98|
|D03||Deficiency Other Pay – Retirement||A01, A06, A07, A11, AA1|
|D04||Deficiency Vacation in Lieu||A13|
|D05||Deficiency Sick Buy Back||A12|
|DPL||Deceased Employee – Lump Sum – No Retirement||A21 or CC Object Code for Contractor|
|DPR||Deceased Employee – Lump Sum – Retirement||A21 or CC Object Code for Contractor|
|FCT||Furlough||A01 or CC Object Code for Contractor|
|INT||Interest Due – Settlement / Judgment||A11, C11|
|PCI||Personal Leave Cash In||A13|
|QPA||Qualified Parking Allowance||B02|
|QTA||Qualified Transport Allowance||B02|
|RIP||Retro IPP Pay||D24|
|ROH||Retro Holiday Pay||A08|
|ROP||Retro Other Pay||A14|
|ROR||Retro Regular Pay||A01 or CC Object Code for Contractor|
|ROS||Retro Shift Pay||A07|
|ROT||Retro Overtime Pay||A08|
|ROV||Retro Standby – No Retirement||A06|
|ROW||Retro Holiday Pay – Retirement||A10|
|ROX||Retro Other Pay – Retirement||A01 or CC Object Code for Contractor|
|ROY||Retro Shift Pay – Retirement||A07|
|ROZ||Retro Overtime Pay – Retirement||A08|
|S/J||Settlement / Judgment||A11|
|SBB||Sick Leave Buy Back – Hours||A12|
|SGL||Serviceman's Group Life Insurance||R13|
|SJA||Settlement / Judgment – No Withholding||C11|
|SJB||Settlement / Judgment – Retirement – Contractors||C11|
|SJC||Settlement / Judgment – Contractors||C11|
|SJP||Settlement / Judgment – Retirement||A11|
|SJR||Settlement / Judgment – No Withholding||A11|
|SJT||Settlement / Judgment – Taxed Annual||A11|
|TX1||CTR USE ONLY – MEDICARE Refund||T11|
|VIL||Vacation In Lieu – Hours||A13|
Exceptions That Will Post to FY 2018
Specific earnings codes will always post to FY 2018 during the Split Year Period. HR/CMS sends the earnings codes to LCM/MMARS with a Pay Event Begin and End date of 7/1/2017.
These earnings codes fall into the following categories:
- Sick and Vacation Buyouts Entered as Amounts - All sick and vacation buyouts entered as amounts. Any buyouts that must charge FY 2017 should be processed as hours or should be processed with an Accounts Payable Earnings Code in the next pay period.
As a result, the Early Retirement Incentive Program (ERIP) buy back payments scheduled for the Split Year pay period should post to FY 2018.
- Furlough Processing – Furloughs taken during Split Year pay period if the earnings code used is FUR.
A full list of the earnings codes that will post to FY 2018 appears below.
MMARS Object Code
Comp Time Buy Back - Amounts
Sick Leave Buy Back - Amounts
Sick Vacation Payout
Vacation in Lieu – Amounts
Impact of HR/CMS Job Actions
Job Actions in HR/CMS do not affect the specific earnings codes that post 100% to FY 2017. Job Actions in HR/CMS, however, can affect the 50%-50% Split Year Percentage for other earnings.
- Midweek Rate Increases (or Step Progressions) – Only REG hours on or after the Effective Date will be calculated at the increased rate. The Split Year Percentage by dollars will be weighted based on the start of the increase. Additional Pay earnings based on REG hours will follow the related REG hours. Note: Additional Pay earnings NOT based on other earnings (like ADS) will split based on the 50%-50% Split Year Percentage.
- New Hires – The Split Year Percentage will be based on the effective date of the Hire action. The total dollars may not split 50%-50%. Hires effective 6/30 or later may charge all dollars to the new Fiscal Year. Hires on or before June 29 will have some percentage charged to the Prior Fiscal Year.
- Rehires – The Effective Date of the Rehire action can affect the Split Year Percentage as with New Hires.
- Terminations – Terminations before 7/1/2017 with no Additional Pay will charge to FY 2017.
- Mid Pay Period Transfer – Postings in Timesheet will reflect a percentage consistent with the Effective Date of the Transfer action. However, all Additional Pay earnings will charge to the new Chart of Account Distribution.
- Home Unit/ Object Code – Changes to the Home Unit or Object Code may reduce the number of workdays used to calculate the Split Year Percentage to the number of workdays on or after the Effective Date of the change. The split may not be 50%-50%.
- Actions on 6/30 – Any HR action that results in a new LCM time slice with an effective date of 6/30/2017 may result in 6/30 being assigned to FY 2018 and an overall 100% proration to FY 2018.
Processing Terminations or Terminations with Pay
Terminations (TER) and Terminations with Pay (TWP) Job actions should not be entered in HR/CMS until the next pay period (7/9/2017 through 7/22/2017).
Follow these guidelines to ensure Split Year proration and finalization of the termination:
- Post daily attendance in Timesheet for the Split Year pay period.
- If appropriate, end date Additional Pay earnings with an effective date of 6/24/2017. This action ensures that the Additional Pay is not paid in the following pay period.
- Change the employee's schedule in HR Assign Work Schedule to a Zero Predefined Schedule effective 7/09/2017 to ensure that no hours are entered in future periods.
- View general deductions to determine if the deduction should be taken, ended, or adjusted.
- Additional Pay earnings can be posted in pay period ending 7/22/2017 with Accounts Payable earnings codes.
- During the pay period ending 7/22/2017, use the TWP action if there are additional payments. Otherwise, use the TER Job action. The correct Effective Date should be entered.
LCM uses the distribution in effect for an employee (DEPTE) on the Pay Event Begin date to distribute labor charges. Therefore, for those Earnings Codes posting on 6/30/2017, the distribution in effect on 6/30/2017 will be used even if it is a prior period adjustment during the Split Year pay period.
Changes to an employee’s distribution (DEPTE) with an Effective Date after 6/25/2017 should be used with caution. A change to the DEPTE may change the Pay Event Begin date for summarized payroll charges to the Effective Date of the DEPTE. Therefore, only the new DEPTE may be used to distribute the payroll charges.
If you have any questions about HR/CMS, please contact CommonHelp at 866-888-2808. If you have any questions about LCM/MMARS, please contact the Comptroller’s Help Desk at 617-973-2468.
cc: General Counsels