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. All reimbursements and leave related earnings codes will charge to FY2010. Included is information about how payroll will distribute for employees terminating employment during Split-Year. This memo provides payroll directors detailed guidelines on how FY2010 and FY2011 payroll accounts will be charged.
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 payroll charges. The Summary Date Model is not exact and will require budget offices to understand the situations in which special calculations are to be considered.
The general model for payroll distribution assumes no HR/CMS Job Actions or LCM mid period time slices which could impact the percentages.
Split Year refers to the period in which one pay period spans two fiscal years. This year the Split Year pay period begins June 20th and ends July 3rd. LCM will process HR/CMS payroll based on a 10-work day schedule (Monday - Friday). There are 8 workdays in the Prior Fiscal Year, FY10, (June 21 to 25 - June 28 to June 30) and 2 workdays in the New Fiscal Year, FY11, (July 1 to 2).
For funding purposes, departments are reminded that Payroll Holds (PHs) are not liquidated until the start of Accounts Payable payroll periods (end dates 7/17, 7/31 and 8/14). For Split Year payroll processing, any funds encumbered in PHs will decrease any available FY10 funds.
The Split-Year Percentage (SYP) is 80%/20% for FY 2010 and FY 2011, respectively. This percentage can be used to describe most departments' Split Year distributions with the exceptions discussed in this memo.
Earnings that Will be Split Based on SYP (80/20)
All hours in Timesheet and Payable Time will be split regardless of day posted.
Exceptions That will Cause Payroll NOT to Split Based on SYP (80/20)
Prior Period Adjustments
All Prior Period Adjustments entered during the Split Year will be for activity prior to June 20, 2010. These postings will charge to FY 2010. Note, however, any Implied Exceptions based on Prior Period Adjustments will not all charge to FY 2010; the related Implied Exceptions will split 80/20.
Furloughs taken during Split Year pay period using earnings code FCT will post to FY10. If a department uses earnings code FUR, the value of earnings will split over both years. If departments currently using FUR wish to make sure the full savings are realized in FY10, then earnings code FCT must be used in the Split Year pay period.
Reimbursements, Retro and Settlement Codes
Reimbursement earning codes that normally charge to the BB subsidiary (or C98 for Contractors) will have a Posting Date of 6/30/10 and charge to FY 2010. Any Code with "Retro" in the description will have a Posting Date of 6/30/10 and charge to FY 2010. All Comptroller Settlement codes will have a Posting Date of 6/30/10 and charge to FY 2010.
Travel And Other Expense/Out of State
Travel Expense/ In State
Overtime Meals Expense
Conference and Training
Membership Dues and Licensing Fee
Exigent Job Related Expenses
Travel Lodging Expense
Auto Expense Reimbursement
Travel Airfare Expenses
MIL Basic Housing
MIL Basic Subsistence - B07
Travel Airfare Expenses
Housing: Cash RET
Car Mileage Reimbursement
Train NAGE CarLadder Reimburse
Per Diem No Ret
Reimburse. Qualified Trans
Trning SEIU CarLadder Reimburs
Tangible Asset Allowances
Membership Reimburse Unit 6
Travel Expense-Contract Service
Comp Time Buy Back - Amounts
Comp Time Buy Back - Hours
Deficiency Travel Reimb (B02)
Deficiency Other Pay(Rtrmnt)
Deficiency Vacation in Lieu
Deficiency Sick Buy Back
Deceased Employ LumpSum No RET
DeceasedEmployLumpSum with RET
Furlough-Wk PayRed Amt ErnComp
Qualified Transport. Allow
Retro Holiday Pay
Retro Other Pay
A01, All C
Retro Regular Pay
A01-A05, All C
Retro Shift Pay
Retro Overtime Pay
ROV - Retro Standby No RET
Retro Holiday Pay RET
Retro Other Pay RET
A01, All C
Retro Shift Pay RET
Retro Overtime Pay RET
Savings Bond Refund
Serviceman's group Life Ins
Settlement/Judgment (no Wthld)
Settlement/Judgment Contract Empl.
Settlement and Judgment RET
Settlement/Judgment (no Wthld)
*Requires CTR Legal Approval
Departments with Reimbursement payments that must charge Fiscal Year 2011 can do so by either paying from their Dynacash or processing in the next pay period.
SBA, SBB, VIL and VLA Earnings Codes
All Leave-related codes will have a Posting Date of 6/30/10 and charge to FY 2010. The following codes will charge FY2010:
Sick Leave Buy Back - Amts
Sick Leave Buy Back - Hrs
Vacation In Lieu - Hours
Vacation In Lieu - Amounts
Note: These codes will charge to FY2010 regardless of whether entered in Weekly Elapsed Time or Additional Pay. Any Leave Buyouts that need to charge FY2011 should be done in the following Accounts Payable Payroll pay period.
The below earn code used for the July, 2010 payment under the Health Care Reimbursement program will have a posting date of 7/1/2010 and will charge to FY2011.
Sick Vacation Payout
Earnings Codes that are Based on Other Earnings
Some Departments pay various implied exceptions in addition to their base pay. These earnings are set up in Additional Pay to automatically calculate and will be split in accordance to the base earnings.
REG that is split 80% and 20% will have their applicable Education Incentive (or any other base-pay incentive/differentials) split 80% and 20%.
REG that is split 50% and 50% (because the Employee is hired 6/29 and paid 2 days in June and 2 days in July) will have their applicable Shift Differential (or any other base-pay incentive/differentials) split 50% and 50%.
However, as noted above, any Implied Exceptions based on Prior Period Adjustments will split 80/20, whereas the base earnings charge all to FY2010.
HR/CMS Job Actions That Can be Made During Split-Year
Job Actions in HR/CMS will not impact the specific Fiscal Year logic applied to Reimbursements and Leave Buyouts but can impact the other Split Year distribution percentages mentioned in the preceding sections. The following scenarios will cause split distribution percentages to be based on the Effective Date of the HR/CMS Action:
- Midweek Rate Increases (or step progressions) will calculate REG dollars for original rate and for new rate. Only REG hours on or after the Effective Date will be calculated at the increased rate. The Split 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 SYP of 80/20.
- New Hires will take into account the effective date of the hire when determining All distributions. The total dollars may not split 80/20. The split percentage will be based on the effective date of the HIRE action. Hires effective 6/30 or later will charge all dollars in the new Fiscal Year. Hires on or before June 29 will have some percentage charged to the Prior Fiscal Year.
- Rehires will reflect a percentage consistent with the rehire Effective Date (similar to New Hire).
- For Terminations prior to 7/1 with no Additional Pay, all TIMESHEET will charge to FY10.
- Mid pay period transfer postings in TIMESHEET will reflect a percentage consistent with the midweek action Effective Date; however, all additional pay earnings will charge to the new Chart of Account Distribution.
- Home Unit/ Object Code or Data change may change the pay Period Begin Date to that of the change Effective Date; the split may not be 80/20.
- Any HR action that results in a new LCM time slice with an effective date of 6/30/10 will result in 6/30 being assigned to F11 and an overall 80/20 proration.
How to Process a Termination or Termination with Pay in Split-Year
'Terminations' and 'Terminations with Pay' Job actions should not be entered in HR/CMS until the next pay period (7/4/10 through7/17/10). The following steps can be followed to ensure Split Year proration and finalizing the termination:
- Post daily attendance in TIMESHEET for Split Year.
- If appropriate, end date additional pay earnings with an effective date of 6/20/10; this action ensures 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 7/04/10 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 7/17/10 with Accounts Payable earnings codes.
- In PPE 7/17/10, if there are additional payments, use the 'TWP' action; otherwise use 'TER'. The correct Effective Date should be entered.
For departments that use LCM for distribution, it is important to understand the impacts of processing DEPTE that will capture the Posting Date.
- To create a DEPTE for a B01 (Travel) payment during Split Year: B01 will have a Posting Date of 6/30/10; the DEPTE must have a timeline effective as of 6/30/10.
- To create a DEPTE for a SBB (Sick Buy Back) payment during Split Year: SBB will have a Posting Date of 6/30/10; the DEPTE must have a timeline effective as of 6/30/10.
DEPTE documents with an Effective Date in the middle of the Split Pay Period should be avoided. The processing of HRCMS Summary Data to a mid period DEPTE changes the FY proration and detailed distribution. In some instances, postings will not split the FY charges and may only use the most recent DEPTE.
If you have any questions regarding HR/CMS, please contact CommonHelp at 866-888-2808. If you have any questions regarding LCM/MMARS, please contact the MMARS Helpline at 617-973-2468.