Comptroller Fiscal Year Memo Letter Head


M E M O R A N D U M

To:Chief Fiscal Officers, MMARS Liaisons, and Payroll Directors
From:Martin J. Benison, Comptroller
Date:June 9, 2011
Re:Earnings Codes Processing During Split Year Pay PeriodComptroller Memo
FY#2011-23

Executive Summary

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 (SYP) is 90% for FY2011 and 10% for FY2012, respectively. All reimbursements and leave-related earnings codes will charge to FY2011. Included is information about how payroll will distribute for employees terminating employment during Split-Year. This memo provides Payroll Directors detailed guidelines on how FY2011 and FY2012 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.

SplitYear

Split Year refers to the period in which one pay period spans two fiscal years. This year the Split Year pay period begins June 19 th and ends July 2 nd. LCM will process HR/CMS payroll based on a 10-work day schedule (Monday - Friday). There are 9 workdays in the Prior Fiscal Year, FY11 (June 20 to 24 - June 27 to June 30) and 1 workday in the New Fiscal Year, FY12 (July 1).

Departments should NOT encumber funds for the Split Year payroll. Payroll Holds (PHs) are not liquidated until the start of Accounts Payable payroll periods (pay end dates 7/16, 7/30 and 8/13). Please make sure that there are available (unencumbered) funds for the Split Year Payroll.

The Split Year Percentage (SYP) is 90% for FY 2011 and 10% for FY 2012, 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 (90/10)

All hours in Timesheet and Payable Time will be split regardless of day posted.

  • Additional Pay Postings.

Exceptions that will cause payroll NOT to split based on SYP (90/10)

Prior Period Adjustments
All Prior Period Adjustments entered during the Split Year will be for activity prior to June 19, 2011. These postings will charge to FY 2011. Note, however, any Implied Exceptions based on Prior Period Adjustments will not all charge to FY 2011; the related Implied Exceptions will split 90/10.

Furlough Processing
Furloughs taken during Split Year pay period using earnings code FCT will post to FY11. 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 FY11, 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 6/30/11 and charge to FY 2011. Any Code with "Retro" in the description will have a Posting Date of 6/30/11 and charge to FY 2011. All Comptroller Settlement codes will have a Posting Date of 6/30/11 and charge to FY 2011.

 

ERNCD

DESCRIPTION

OBJ

B01Travel And Other Expense/Out of StateB01
B02Travel Expense/ In StateB02
B03Overtime Meals ExpenseB03
B04Tuition/Non-GraduateB04
B05Conference and TrainingB05
B06Membership Dues and Licensing FeeB06
B08Clothing AllowancesB08
B10Exigent Job Related ExpensesB10
B11GIC USE ONLY: HC ReimburseB11
B12CTR USE Only - NON tax AdjustmentB11
B1BTravel Lodging ExpenseB01
BAEAuto Expense ReimbursementB02
BAFTravel Airfare ExpensesB05
BAGMIL Basic HousingB07
BARMIL Basic Subsistence - B07B07
BB1Travel Airfare ExpensesB01
BB4Tuition/GraduateB04
BH7Housing AllowanceB07
BHRHousing: Cash RETB07
BMICar Mileage ReimbursementB02
BMOTraining-MOSES ReimbursementB05
BMVMoving ReimbursementB02
BNATraining -NAGE ReimbursementB05
BPDPer Diem No RetirementB07
BPKParking ReimbursementB02
BQTReimburse. Qualified Trans.B11
BSETraining -- SEIU ReimbursementB05
BT7Tangible Asset AllowancesB02
BTLToll ReimbursementB02
BX6Membership Reimburse Unit 6B05
C98Travel Expense-Contract ServiceC98
CBAComp Time Buy Back - AmountsA08
CBBComp Time Buy Back - HoursA08
D01Deficiency RegularA01, A11, A20
D02Deficiency Travel Reimbursement (B02)B01, B02, B10
D03Deficiency Other Pay(Retirement)A01, A07, A11, AA1
D04Deficiency Vacation in LieuA13
D05Deficiency Sick Buy BackA12
D06Deficiency OvertimeA08
DPLDeceased Employ Lump Sum No RETA21, all C
DPRDeceased Employ Lump Sum with RETA21, all C
FCTFurlough-Wk Pay Reduction Amt Earn CompA01, all C
INTInterest Due- CTR use onlyA11, C11
PCIPersonal Leave Cash InA13
QPAQualified Parking AllowanceB02
QTAQualified Transport. Allow.B02
RIPRetro IPP PayD24
ROHRetro Holiday PayA08
ROPRetro Other PayA14
RORRetro Regular PayA01, all C
ROSRetro Shift PayA07
ROTRetro Overtime PayA08
ROVROV - Retro Standby No RETA06
ROWRetro Holiday Pay RETA10
ROXRetro Other Pay RETA01, all C
ROYRetro Shift Pay RETA07
ROZRetro Overtime Pay RETA08
S/JSettlement/JudgmentA11
SAVSavings Bond Refund (CTR and TRE use )T11
SGLServiceman's Group Life InsR13
SJBSettlement/Judgment RETC11
SJCSettlement/Judgment Contract EmployeeC11
SJPSettlement and Judgment RETA11
TX1CTR USE ONLY: MEDICARE RefundT11

*Requires CTR Legal Approval

Departments with Reimbursement payments that must charge Fiscal Year 2012 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 6/30/11 and charge to FY 2011.

ERNCD

DESCRIPTION

OBJ

SBA

Sick Leave Buy Back - Amts

A12

SBB

Sick Leave Buy Back - Hrs

A12

VIL

Vacation In Lieu - Hours

A13

VLA

Vacation In Lieu - Amounts

A13

Note: These codes will charge to FY2011 regardless of whether entered in Weekly Elapsed Time or Additional Pay. Any Leave Buyouts that need to charge FY2012 should be done in the following Accounts Payable Payroll pay period.

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 calculate automatically and will be split in accordance to the base earnings.

Example:

REG that is split 90% and 10% will have their applicable Education Incentive (or any other base-pay incentive/differentials) split 90% and 10%.

REG that is split 50% and 50% (because the Employee is hired 6/30 and paid 1 day in June and 1 day 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 90/10, whereas the base earnings charge all to FY2011.

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 90/10.
  • New Hires calculations will take account of the effective date of the hire when determining All distributions. The total dollars may not split 90/10. 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).
  • Terminations prior to 7/1 with no Additional Pay will charge to FY11.
  • 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 90/10.
  • Any HR action that results in a new LCM time slice with an effective date of 6/30/11 will result in 6/30 being assigned to F12 and an overall 90/10 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 (7/3/11 through 7/16/11). 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 6/18/11; 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 7/03/11 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 7/16/11 with Accounts Payable earnings codes.
  • In PPE 7/16/11, if there are additional payments, use the 'TWP' action; otherwise use 'TER'. The correct Effective Date should be entered.

 

LCM Distribution

For departments that use LCM for distribution, it is important to understand the impacts of processing DEPTE that will capture the Posting Date.

Example:

  • To create a DEPTE for a B01 (Travel) payment during Split Year: B01 will have a Posting Date of 6/30/11; the DEPTE must have a timeline effective as of 6/30/11.
  • To create a DEPTE for a SBB (Sick Buy Back) payment during Split Year: SBB will have a Posting Date of 6/30/11; the DEPTE must have a timeline effective as of 6/30/11.

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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