|To:||Chief Fiscal Officers, Payroll Directors and MMARS Liaisons|
|From:||Martin J. Benison, Comptroller|
|Date:||July 6, 2010|
|Re:||Earnings Codes Processing During Accounts Payable Pay Period|
The purpose of this memo is to inform Departments of the methodology for distributing and recording HR/CMS Payroll charges in LCM and MMARS during the Accounts Payable pay period. To accommodate multi-year payroll processing, certain earnings codes will only charge to FY2010. This memo provides Payroll Directors detailed guidelines on how to charge FY2010 and FY2011. Please note that the instructions in this memo are issued consistent with State Finance Law requirements which require Departments to account for expenditures in the fiscal year in which the obligation is incurred.
The Accounts Payable Period begins with the first pay period after Split Year and includes pay periods ending 7/17, 7/31 and 8/14. During Accounts Payable, all Prior FY payments must have a related FY2010 Payroll Hold (PH) encumbrance for funding. Departments may not pre-pay for FY11 obligations using FY10 codes and conversely may not pay for obligations incurred in FY10 with FY11 funds without legislative authorization or prior year deficiency authorization. Uses of payroll codes are subject to audit; therefore, Payroll Directors should ensure that the appropriate codes are selected with special care to the fiscal year of the obligation.
HR/CMS Posting For Accounts Payable
There are only 2 ways to charge FY2010 in HR/CMS:
- Use an Earnings Code designated as 'Accounts Payable' (see list), regardless if used in Time Sheets or Additional Pay
- In Time Sheets use Prior Period Adjustments, posting to a date prior to June 20 (any implied exceptions will post to the same date)
Any specific FY logic set-up for Split Year processing will be removed. During Split Year the following codes had specific FY logic: Reimbursement codes, Retro codes, Settlement codes, Sick and Vacation Buy Out.
The following Accounts Payable Codes will only be available during Accounts Payable pay periods and will always have a Posting Date of 6/30/10 and charge to FY2010:
A/P Regular Pay No Retirement
A/P Regular Pay Retirement
A/P Overtime And/Or Comp. Time
A/P - Holiday No Retirement
Accounts Payable S/J (No Withholdings)
Accounts Payable S/J (no RET)
Accounts Payable SJP Subject RET
A/P Sick Leave Buy Back
A/P Vacation In Lieu
A/P Intergovernmental Detail
A/P Private Detail Pay
A/P Pay to Deceased Employees subject to Retirement
A/P Pay to Deceased Employees
A/P Employee Non Taxable
A/P Employee Taxable
Accounts Payable SJP RET(C11)
Accounts Payable S/J C11(no RET)
Accounts Payable S/J No Withholding
A/P Contractor Non-Taxable
Requires CTR Legal Approval
HR/CMS Reimbursement Code Processing
The normal "B" Reimbursement Codes will charge to the Current pay period when used in Additional Pay or to the pay period posted in Time Sheets.
New For This Year
If your intent is to post to FY10, use the AP codes provided in the grid or use a date in Timesheet prior to June 19, 2010. Postings in Timesheets between 6/20 and 6/30 will post to FY11.
Departments that do not use Time Sheets for Employee Reimbursements and need to charge to FY2010 should use the following AP specific reimbursement codes: ABN, ABT or CAN during Accounts Payable.
Use the following Earnings/Object code crosswalk to encumber and liquidate the encumbrance PHs accordingly:
AP Earnings Code
Used for these Earnings Code
Accounts Payable Employee reimbursements non-taxable
OUT OF STATE TRAVEL - OTHER
OUT OF STATE TRAVEL - HOTEL/LODGING
OUT OF STATE TRAVEL - AIRFARE
Auto Expense Reimbursement
CAR MILEAGE REIMBURSEMENT
JOB RELATED TUITION
JOB RELATED TUITION, GRADUATE EDUCATION
CONFERENCE, TRAINING AND REGISTRATION
MEMBERSHIP DUES AND LICENSING FEES
Training-AFSME Car Lad Reimbur
Train NAGE CarLadder Reimburse
Trning SEIU CarLadder Reimburs
Membership Reimburse Unit 6
EXIGENT JOB-RELATED EXPENSES
Accounts Payable Employee reimbursements taxable
Per diem no ret
Housing: Cash RET
TANGIBLE ASSET AND ALLOWANCES
Accounts Payable Contractor reimbursements
REIMBURSEMENT FOR TRAVEL AND OTHER EXPENSES FOR SPECIAL EMPLOYEES/CONTRACTED SERVICES
LCM Set-up for prior Fiscal Year distribution
For departments that use LCM for distribution, it is important to understand the Posting Dates that HR/CMS passes to set up the corresponding distribution timeline. Posting Dates before 6/20 in Time Sheets will charge to FY2010.
All Accounts Payable Codes will have a Posting Date of 6/30/10. Any LCM distributions must have a corresponding timeline effective as of 6/30/10 and charge to FY10.
Prior Period Adjustment postings will carry the same Posting Date as the pay period posted in Time Sheets.
· REG and OVERTIME (and related implied exceptions) reported on 6/15/10 will charge to FY10.
Any LCM distribution must have a time line effective as of 6/15/2010.
REG and OVERTIME (and related implied exceptions) reported on 6/29/10 will charge to FY11 because this pay period ended in FY11. Any LCM distribution must have a timeline effective as of 6/30/10.
Payroll Hold Transactions
Payroll Holds are needed for all Prior Fiscal Year Charges during Accounts Payable. PHs need to be setup at the Object Code/Appropriation Level.
Each accounting line of a PH transaction must contain the following required fields in each of the following Fund or Detail Accounting fields:
- · Fund
- · Sub Fund
- · Department
- · Unit (* for Expense Budgets Only)
- · Appropriation
- · Object
- · Program (*for Grants Only)
Use one accounting line for each distinct combination of Fund, Sub Fund, Department, Appropriation and Object.
Departments that do not use Departmental Expense budgets should leave the Unit blank. Those Departments that use Expense Budgets must enter a value for Unit. Departments should choose the Unit that rolls up to the Division with the Expense Budget against which the PH will encumber funds.
Departments must choose one and only one Unit to assign to a combination of Fund / Sub Fund / Department / Appropriation / Object.
When the PH is liquidated, the Unit on the actual Payroll document will be used in posting.
Similarly, Departments that do not use Grant budgets should leave the Program blank. Those Departments that use Grant Budgets must enter a value for Program.
Departments must choose one and only one Program to assign to a combination of Fund / Sub Fund / Department / Appropriation / Object.
When the PH is liquidated, the Program on the actual Payroll document will be used in posting.
There are 3 Payroll Hold Job Aids in the Comptroller's Web Portal:
- Create A Payroll Hold
- Modify A Payroll Hold
- Correct Duplicate Lines
If you have any questions regarding these instructions, please contact the MMARS Helpline at 617-973-2468.
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