|To:||Chief Fiscal Officers, Payroll Directors and MMARS Liaisons|
|From:||Martin J. Benison, Comptroller|
|Date:||June 30, 2010|
|Re:||Earnings Codes Processing During Split Year Pay Period|
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)
Reimbursements, Retro and Settlement Codes
*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:
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.
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:
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:
For departments that use LCM for distribution, it is important to understand the impacts of processing DEPTE that will capture the Posting Date.
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.
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