To: Chief Fiscal Officers, Payroll Directors, and MMARS Liaisons
From: Martin J. Benison, Comptroller
Date: June 17, 2014
Subject: Earnings Codes Processing During Split Year Pay Period
Comptroller Memo FY#2014–27
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 10% to FY 2014 and 90% to FY 2015 for most payroll charges. All reimbursements will charge to FY 2014 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 29th and ends on July 12th. LCM will process HR/CMS payroll based on a 10 workday schedule (Monday – Friday). There is 1 workday (June 30) in the Prior Fiscal Year, FY 2014, and 9 workdays (July 1 – July 4, July 7 – July 11) in the New Fiscal Year, FY 2015.
The Split Year Percentage is 10% to FY 2014 and 90% to FY 2015. 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 7/26, 8/9, and 8/23). Please make sure that there are available (unencumbered) funds for the Split Year pay period.
Exceptions That Will Post to FY2014
Prior Period Adjustments
All Prior Period Adjustments entered during the Split Year pay period will be for activity prior to June 29, 2014. These postings will charge to FY 2014.
Note, however, that any Implied Exceptions based on Prior Period Adjustments will not charge 100% to FY 2014. The Implied Exceptions will split 10%-90% between FY 2014 and FY 2015 as do other Additional Pay payments.
Charges Entered in Timesheet for 6/30 If Combo Code Used
If an employee posts time on 6/30/2014 in Timesheet, those charges will post to FY 2014 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.
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 6/30/2014. LCM/MMARS then posts those charges to FY 2014.
If no Combo Codes are used for an employee’s payroll charges, time posted on 6/30/2014 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 2014 during the Split Year Period. HR/CMS sends the earnings codes to LCM/MMARS with a Pay Event Begin and End date of 6/30/2014.
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 2015 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 – All sick and vacation buyouts. Any buyouts that must charge FY 2015 should be processed in the next pay period.
A full list of the earnings codes that will post to FY 2014 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|
|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|
|BPD||Per Diem No Retirement||B07|
|BQT||Reimbursement – Qualified Transportation||B11|
|BT7||Tangible Asset Allowances||B07|
|BX6||Membership Reimbursement – Unit 6||B05|
|C98||Travel Expense – Contract Service||C98|
|CBA||Comp Time Buy Back – Amounts||A08|
|CBB||Comp Time Buy Back – Hours||A08|
|D01||Deficiency Regular||A01, A11, A20|
|D02||Deficiency Travel Reimbursement||B02 or other BB Object Code|
|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||A21 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|
|SBA||Sick Leave Buy Back – Amounts||A12|
|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|
|VLA||Vacation In Lieu – Amounts||A13|
Impact of HR/CMS Job Actions
Job Actions in HR/CMS do not affect the specific earnings codes that post 100% to FY 2014. Job Actions in HR/CMS, however, can affect the 10%-90% 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 10%-90% 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 10%-90%. 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 7/1/2014 with no Additional Pay will charge to FY 2014.
- 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 10%-90%.
- Actions on 6/30 – Any HR action that results in a new LCM time slice with an effective date of 6/30/2014 may result in 6/30 being assigned to FY 2015 and an overall 100% proration to FY 2015.
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 (7/13/2014 through 7/26/2014).
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 6/28/2014. 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 7/13/2014 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 7/26/2014 with Accounts Payable earnings codes.
- During the pay period ending 7/26/2014, 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 6/30/2014, the distribution in effect on 6/30/2014 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 6/29/2014 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