Comptroller Fiscal Year Memo Letter Head

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


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 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

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 CodeDescriptionMMARS Object Code
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 –   Healthcare ReimbursementB11
B12CTR USE ONLY – Non Tax AdjustmentB11
B1BTravel Lodging ExpenseB01
BAEAuto Expense ReimbursementB02
BAGMIL Basic HousingB07
BARMIL Basic SubsistenceB07
BB1Travel Airfare ExpensesB01
BB4Tuition / GraduateB04
BH7Housing AllowanceB07
BHRHousing –  Cash –  RetirementB07
BMICar Mileage ReimbursementB02
BMVMoving ReimbursementB02
BPDPer Diem No RetirementB07
BPKParking ReimbursementB02
BQTReimbursement –  Qualified TransportationB11
BT7Tangible Asset AllowancesB07
BTLToll ReimbursementB02
BX6Membership Reimbursement –   Unit 6B05
C98Travel Expense –  Contract ServiceC98
CBAComp Time Buy Back – AmountsA08
CBBComp Time Buy Back – HoursA08
D01Deficiency RegularA01, A11, A20
D02Deficiency Travel ReimbursementB02 or other BB Object Code
D03Deficiency Other Pay –  RetirementA01, A06, A07, A11, AA1
D04Deficiency Vacation in LieuA13
D05Deficiency Sick Buy BackA12
D06Deficiency OvertimeA08
DPLDeceased Employee –   Lump Sum –  No RetirementA21 or CC Object Code for Contractor
DPRDeceased Employee –   Lump Sum –  RetirementA21 or CC Object Code for Contractor
FCTFurloughA21 or CC Object Code for Contractor
INTInterest Due – Settlement / JudgmentA11, C11
PCIPersonal Leave Cash InA13
QPAQualified Parking AllowanceB02
QTAQualified Transport AllowanceB02
RIPRetro IPP PayD24
ROHRetro Holiday PayA08
ROPRetro Other PayA14
RORRetro Regular PayA01 or CC Object Code for Contractor
ROSRetro Shift PayA07
ROTRetro Overtime PayA08
ROVRetro Standby –  No RetirementA06
ROWRetro Holiday Pay –  RetirementA10
ROXRetro Other Pay –  RetirementA01 or CC Object Code for Contractor
ROYRetro Shift Pay –  RetirementA07
ROZRetro Overtime Pay –  RetirementA08
S/JSettlement / JudgmentA11
SBASick Leave Buy Back – AmountsA12
SBBSick Leave Buy Back – HoursA12
SGLServiceman's Group Life InsuranceR13
SJASettlement / Judgment – No WithholdingC11
SJBSettlement / Judgment – Retirement –  ContractorsC11
SJCSettlement / Judgment –  ContractorsC11
SJPSettlement / Judgment –  RetirementA11
SJRSettlement / Judgment – No WithholdingA11
SJTSettlement / Judgment – Taxed AnnualA11
TX1CTR USE ONLY –  MEDICARE RefundT11
VILVacation In Lieu – HoursA13
VLAVacation In Lieu – AmountsA13

  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 Distribution
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.

Questions
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.

 

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