Payroll Standard Operating Procedures


PSOP 1.0: Fiscal Officer Responsibility

Payroll Standard Operating Procedure 1.0: Fiscal Officer Responsibility

SUBJECT:

Fiscal Officer's  Procedures to Ensure Compliant,  Accurate and Timely Payroll Processing

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

August, 2010

DATE OF
LAST REVISION:
June, 2011
PSOP NO: 1.0
RATIONALE:

To outline the Fiscal Officer's responsiblity when it comes to ensuring accurate payroll processing within their department (s).

PSOP:

1.  The Fiscal Officer is responsible for ensuring a proper segregation of duties in their area in order to prevent fraud.  This includes the following:

  1. The Fiscal Officer must ensure that the Fiscal Approver is not a Payroll Processor.  Fiscal officers can run the HRMS Departmental Security IUIE report to identify  their departmental payroll processors and fiscal approvers.  It is located in the following folders: 
    1. Departmental Reporting > Bloomington Business Officers Group > HRMS Reports > HRMS Departmental Security
    2. Departmental Reporting > IUPUI Fiscal Officers Group > HRMS Reports > HRMS Departmental Security
    3. Departmental Reporting > Payroll Reports-Departmental > HRMS Departmental Security
  2. When Payroll Processors leave the department or change roles, the Fiscal Officer is responsible for requesting that the Payroll Processor's HRMS access is either modified or deleted using the HRMS Access Request form: http://www.indiana.edu/~uhrs/hrms/support/f_approve.shtml
  3. The Fiscal Officer is responsible for ensuring that somebody other than the Payroll Processor approves the Payroll Processor's timesheet.

2.  The Fiscal Officer is responsible for ensuring that the Fiscal Approver is reviewing the Fiscal Approver report for inaccuracies prior to payday.   The Fiscal Officer is also able to run a payroll report in the IUIE so the Fiscal Officer themselves can reveiw the payroll report, although it is not required.  Items that must be reviewed include:

  1. Reviewing the names on the report to verfiy that they are employed by the department.
  2. Review overtime for reasonableness.  If excessive overtime is noted, it should be addressed.
  3. Verify that any terminal pay is consistent with the department's expectations. 
  4. Review any additional pays for accuracy.  These can be identified by object code on the report.
  5. Check the total to be paid for reasonableness.  This will vary by the size of the department's payroll.  The Fiscal Officer should work with the Fiscal Approver to set a standard for variance in the total payroll.

Larger departments are often unable to verify payroll detail by person, so they should take the following steps to ensure that their payroll is accurate:

  1. Review all Associate Instructors and Adjunct Faculty at the beginning of each semester to ensure that they are still employed by the department. 
  2. Periodically send lists of hourly employees to each supervisor, asking them to identify any who have terminated.

3.  The Fiscal Officer is responsible for ensuring that the TIME Approver is the appropriate person for that role.  They should also periodically review their TIME Approvers to verify that they are still active employees.  Payroll will provide a quarterly report of TIME Approvers to each department, until an IUIE report can be written.  

The Fiscal Officer is also responsible for ensuring that TIME Approvers and Payroll Process are approving their timesheets and that Payroll Processors are approving the payroll vouchers.  The Fiscal Officer should be using the IUIE TIME super approval report to identify TIME Approvers and Payroll Processors who are allowing the TIME system to super approve the department's timesheets.   It can be located using the following path:
Master Catalog / Human Resource Management System / Payroll / Timekeeping / KPME Reports / Auto Approved Timesheet Detail

The Central Payroll office will notify Fiscal Officers when a payroll processor does not approve their payroll vouchers.  It is incumbent on the Fiscal Officer to rectify these situations when they are identified.

4.  The Fiscal Officer is responsible for ensuring that the Payroll Processor are looking for enroute e-docs that affect payroll prior to the payroll closing. If any potential issues arise as the result of an enroute e-doc, the Payroll Processor must take action to avoid any resulting payroll issues.  The e-docs that potentially affect payroll are:

  1. Hire e-doc:  If a new employee's hire e-doc is not final prior to the payroll closing, they will not be paid.  These employees should be added to the next off cycle payroll.
  2. Termination e-doc:  If an employee's termination date is prior to the end of the pay period, the employee should be removed from the payroll so they are not overpaid.
  3. Maintain pay rate e-doc:  If an employee recieves a pay change during the pay period, it's important to verify that they will be paid the correct amount to avoid overpayment or underpayment. 

5.  The Fiscal Officer is responsible for ensuring their department is complying with all University payroll policies located at:  
http://policies.iu.edu/policies/categories/financial/index.shtml

6.  The Fiscal Officer is responsible for monitoring overpayments that occur and that proper action is being taken to ensure the overpayment is collected.  The Fiscal Officer is also responsible for ensuring that proper procedures are in place to prevent overpayments.  These procedures include, but are not limited to, the above 5 SOP procedures. 

Other tools include the Overpayment Policy located at: FIN-PAY-IV-280 and the Overpayment Procedures SOP located at: PSOP 2.0 Overpayment

DEFINITIONS:

Fiscal Officer: Person who is trained and hired for the purpose of providing fiscal, policy, and internal control management of all funds in a unit. They are responsible for ensuring that processes and related controls have been established to achieve the mission and objectives of their organization(s). 

Fiscal Approver: Person authorized to approve all HRMS financial transactions.
 

CROSS
REFERENCE:
See the following policies:
Recording of Timekeeping in TIME: FIN-PAY- IV-270 

Role of Fiscal Officer, Account Manager, and Account Supervisor: FIN-CC-1-1

Payroll Overpayment Processing: FIN-PAY-IV-280

Overpayment Processing Procedures: Payroll PSOP 2.0
RESPONSIBLE
ORGANIZATION:
Financial Management Services

PSOP 2.0: Overpayment
SUBJECT:

Overpayment Processing

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

September, 2010

DATE OF
LAST REVISION:
 
PSOP NO: 2.0
RATIONALE:

To outline the procedures for departments to follow when collecting and processing payroll overpayments.

PSOP:

When a department becomes aware that an employee has been overpaid, they should contact the campus payroll department immediately. If it is prior to the check date and the direct deposit can be withdrawn from the bank or the paper check can be cancelled, it is possible to recover the funds and avoid the overpayment process.

It is the responsibility of the department to contact the employee and make arrangements for repayment of the overpayment. If the employee has already received the direct deposit funds into his account or cashed the actual check, there are various methods for collecting the overpayment amount following the guidelines listed below. The department must prepare a paper adjustment voucher and forward it to the payroll office to begin the process. Please state the reason for the overpayment in the explanation section on the adjustment voucher. For a partial overpayment the adjustment voucher should reflect a POSITIVE (+) entry for the CORRECT gross using the correct earn codes, hours, etc. that the employee should have received for the pay period. A full overpayment requires an email to the payroll office including payment details: name, ID, check date, check number, and net amount. It may take the central payroll office up to five business days to complete the calculation after the adjustment voucher is received.

Overpayments should be processed as quickly as possible to avoid year-end tax problems for the employee. If the overpayment occurs in December, contact the campus payroll department to see what the deadline is for receiving the payment prior to year-end W-2 processing. The campus payroll office role will be to assist the department in understanding the guidelines and calculating the overpayment amount. The departmental account will be credited when the funds have been received by the payroll office and the employee’s record has been updated in HRMS. Any exceptions to the guidelines listed below should be discussed with the campus payroll office prior to making agreements with an employee.

Guideline 1: Employee is overpaid and would like the payback deducted from future wages that will be PAID in the same (tax) calendar year.

  1. Department must enter adjustment voucher to be processed in the next on-cycle payroll. Adjustment voucher will indicate the pay period that was paid in error and the GROSS amount to be deducted from the current check (negative).

    Note: This does not apply to December wages that will be paid in the following (tax) calendar year.

  2. At the campus Payroll Director’s discretion, adjustments may be spread over multiple future pay periods provided the total gross overpayment is deducted from payrolls that will be paid in the same calendar year as the original payment. The department will need to decide how many pay periods are appropriate and enter adjustment vouchers for each pay period indicating the GROSS amount to be deducted. The adjustment vouchers must be entered prior to voucher cutoff to allow processing time.

    Example: A monthly paid employee was overpaid $2000.00 on September 30th. The 2000.00 can only be split into 2 payments and collected back from October and November wages. They do NOT have the choice to deduct from the December payment since those wages are paid in the following tax year. The department would enter an adjustment voucher to deduct $1000.00 before the October cutoff and $1000.00 before the November cutoff.
Guideline 2: Employee is overpaid and would like the payback deducted from future wages that will be PAID in a future (tax) calendar year.
  • The Internal Revenue Service does not allow for current year wage reductions to satisfy a prior year overpayment. Supporting document: See IRS Publication 15, Circular E, Employer’s Tax Guide, Instructions for 941, Prior Period Adjustments, Wage Repayments: http://www.irs.gov/pub/irs-pdf/p15.pdf

  • Note: Wages for the current tax year cannot be reduced from the December check because it pays in January of the future tax year. Example: Employee overpaid on 11/30 check and would like the December wages reduced- Not possible.

Guidline 3: Employee is overpaid and is going to write a check to Indiana University to repay the overpayment. The personal check is going to be written in the same (tax) calendar year as the original payment.

  1. Department should forward the paper adjustment voucher indicating the GROSS amount the employee should have received to the payroll office. If the overpayment was a partial amount, the payroll office will calculate the NET overpayment amount that should be included in the personal check and communicate this amount to the department. A full overpayment requires an email to the payroll office including payment details: name, ID, check date, check number and the net amount. The payroll office will calculate the NET overpayment amount that should be included in the personal check and communicate this amount to the department.

  2. The department will verify the payment received from an employee is correct and will forward the payment to the campus payroll office. The check should not be deposited into a departmental account.

Guideline 4: Employee is overpaid and is going to write a check to Indiana University and check is going to be written in the following (tax) calendar year.

  1. Regardless if the overpayment includes the full or partial payment amount, the payroll office must calculate the overpayment amount. The department should prepare an adjustment voucher indicating the GROSS amount the employee should have received and forward to the payroll office for a partial overpayment. A full overpayment requires an email to the payroll office including payment details: name, ID, check date, check number and the net amount. The payroll office will calculate the NET overpayment amount that should be included in the personal check and communicate this amount to the department.

  2. Federal, state, and local income taxes, garnishments, US Savings bonds and Tax Deferred Annuities (TDA) will be included in the payback amount if the W-2 process has already been started for the calendar (tax) year. A corrected W-2 will not be issued to reduce the taxable income for federal, state, and/or local taxes. See Internal Revenue Code Section 1341 for information on “Restoration of amounts received or accrued under claim of right." You can direct employees to the following: IRS Publication 17, Your Federal Income Tax: Section: Other Income; Repayments. This is for the individual’s use in claiming a deduction or a credit in the year they repaid the income: http://www.irs.gov/pub/irs-pdf/p17.pdf

  3. Social Security and Medicare taxes will not be included in the payback amount if the employee returns a completed “Request for Prior Year FICA Refund” form. This form is located on FMS Tax's list of tax forms.

    The employee will receive a corrected W-2 to reflect the reduction in Social Security and Medicare wages/tax only. The refund form is required by the IRS and provides the university authorization to recapture the employee portion of the FICA taxes from the IRS. If we are unable to recapture the employee portion of the taxes from the IRS, we will not be providing the refund of those taxes to the employee by way of excluding those taxes from the computed payback amount and the employee would be responsible for repayment of the Gross amount of the check.

  4. The department will verify the payment received from an employee is correct and will forward the payment to the campus payroll office. The check should not be deposited into a departmental account.

Individual campuses may have additional campus specific procedures. For clarification, please check with your campus payroll office.
CROSS
REFERENCE:
See the following policies:
Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: Payroll PSOP 1.0

Role of Fiscal Officer, Account Manager, and Account Supervisor:FIN-ACC-1-1

Payroll Overpayment Processing: FIN-PAY-IV-280

PSOP 3.0: Payroll Procedures for Payments after Death
SUBJECT:

Payroll Procedures for Payments after Death

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

October 1990

DATE OF
LAST REVISION:
March, 2011
PSOP NO: 3.0
RATIONALE:

To outline the procedures for departments to follow concerning the death of an employee

PSOP: When you receive notice concerning the death of an employee, the following procedures should be used to process their final payment. No further payments should be processed in HRMS payable to the employee. Final payments are processed by FMS using a Disbursement Voucher (DV) in the FIS and made payable to the estate after the appropriate approval process.
    1. Any payments that are pending after the date of death should be stopped. If there are pending direct deposit transactions, the payroll office should submit a request to have it returned if possible prior to check date.

    2. The department will prepare and submit the normal termination documents to Human Resources/Payroll; eDoc and paper adjustment voucher for final payout including all terminal pay earn codes.

    3. The payroll office can direct the department to the FMS website; Payroll; Special Processing Procedures; Payroll Procedures for Payments after Death.  In the document are 4 links to the required documentation that must be completed by the family of the deceased.  These documents will explain our procedures for making final payments to employees.
      1. How to Claim a Final Paycheck
      2. Paycheck Claim
      3. Affidavit of No Administration
      4. W-9 Request for Taxpayer Identification Number and Certification

  1. When the adjustment voucher for the final payment from the department/campus is received in payroll, the 45-day waiting period will be calculated from the date of death provided an estate has not been opened. The termination payout should be approved following normal procedures.

  2. All paperwork will be monitored and maintained in FMS by the Termination Coordinator.

  3. Provided an estate has not been opened, upon receipt of the Paycheck Claim, Affidavit of No Administration, W-9 Tax form and the completion of the 45-day waiting period, the payment will be issued. In accordance with Indiana law, if an estate is opened and the “Letters of Administration” and W-9 Tax form are received, the 45-day waiting period does not apply.

  4. The Retirement Coordinator in FMS will process the final payment on a Disbursement Voucher including all wages, refunds, etc. due. Retirement contributions will be calculated and wages will be adjusted as needed. If an estate was opened, the check will be issued “to the estate of” the deceased. If an estate is not opened, the check will be issued to the claimant signing the Paycheck Claim form.

  5. Social Security and Medicare taxes will be withheld if the final payment is made in the same tax year in which the death occurred and will appear in boxes 3 and 5 of the employee’s form W-2. If the final payment is made in the year following the date of death, social security and Medicare taxes will not be withheld and will not be reported in boxes 3 and 5 of the employee’s form W-2. The FMS tax area will update Deceased (DCD) wages in HRMS.

  6. The check will be disbursed according to instructions indicated on the Paycheck Claim form. At tax year-end a 1099 form will be issued to the person claiming the final paycheck.
CROSS
REFERENCE:
See the following policy,
Payroll Administration Policy IV-150, Disposition of Final Pay for Deceased Employees: FIN-PAY-IV-150
RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 4.0: FLSA Overtime Calculations for Biweekly Payroll
SUBJECT:

FLSA Overtime Calculator for Biweekly Payroll

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

August, 2008

DATE OF
LAST REVISION:
June, 2011
PSOP NO: 4.0
RATIONALE:

To compute an estimate of overtime pay for situations where multiple rates or bonus-type payments (that will inflate the overtime rate) are involved.

PSOP:

This calculator will help you compute an estimate of overtime pay for situations where multiple rates (weighted average) or bonus-type payments (that will inflate the overtime rate) are involved. Due to rounding, the actual amount paid may be slightly different than the calculated amount on this spreadsheet.

In the spreadsheet linked below, fill in the hours and rate information, as well as the total of any bonus-type payments the employee is receiving in the given earnings period. There are comments throughout the document that will help you know what to enter, as well as explain the calculated amounts. You can see these comments by placing your mouse over a cell that has a red triangle in the top right hand corner.

Only enter in the orange sections and only enter what is earned for a 1-week period. If you have more than one week to calculate, you will need to do it separately. After you calculate for the first week, you can use the Clear button to reset the worksheet. But first, you will need to enable the macro to run.

Link to the FLSA Excel 97-03 worksheet

CROSS
REFERENCE:
See the following policies,
Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: Payroll PSOP 1.0

Accounting Administration Policy I-1, Role of Fiscal Officer, Account Manager, and Account Supervisor: FIN-ACC-1-1

Policy VI-121, Establishing and Generating Revenue Producing Activity (RPA): Policy VI-121
RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 5.0: Gross Up Process for Additional Pay Earnings
SUBJECT:

Gross Up Process for Additional Pay Earnings

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

March, 2008

DATE OF
LAST REVISION:
June, 2011
PSOP NO: 5.0
RATIONALE:

To process a one-time exact NET payment amount for an employee.

PSOP:

The most common use involves award (AWD) payments or cell phone equipment reimbursement allowances * (ALW). If you “gross up” the payment, the department will be charged the additional amount to cover the applicable taxes. This type of payment must be processed using the eligible earn codes on the Additional Pay Edoc.

Edoc information:

  • You should use an effective date from a previous pay period. You do not want the transaction to be selected on the current payroll voucher.
  • Indicate the exact NET amount you want the employee to receive.
  • In the notes section, indicate that this payment will be “grossed up” to include taxes.

Adjustment Voucher information:

  • Gross up transactions must be processed in the off-cycle payroll or as on-line checks. They cannot be included in the regular on-cycle payroll.
  • You will not be charged the off-cycle fee if the transaction is processed in the off-cycle payroll using normal direct bank procedures. You will be charged the on-line fee if you are requesting a paper check.
  • Paper adjustment voucher: complete adjustment voucher and indicate GROSS UP in the comments section. In the amount field, indicate the exact NET amount the employee should receive.
  • Electronic adjustment voucher: after you enter the additional pay earn code/sequence number and tab out of the field, a GROSS UP box will display. Click the box if you want the system to calculate the “grossed up” net amount. In the amount field, indicate the exact NET amount the employee should receive.

*Special Note: The gross-up process should not be used for reimbursement of recurring cell phone allowance. Those payments are established using an Additional Pay Edoc for allowance which are processed and paid in the regular on-cycle payroll. The department may increase the allowance amount to include estimated applicable taxes at their discretion. Further details concerning this policy can be found on the payroll web site: PSOP 9: Mobile Devices.
 

 
CROSS
REFERENCE:

See the following policies,
Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: Payroll PSOP 1.0

Accounting Administration Policy I-1, Role of Fiscal Officer, Account Manager, and Account Supervisor: FIN-ACC-I-1

Accounting Administration Policy I-480, Mobile Devices and Internet Access: FIN-ACC-1-480

RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 6.0: Holidays - Recording Hours Worked
SUBJECT:

Holidays - Recording Hours Worked

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

August, 2009

DATE OF
LAST REVISION:
May, 2010
PSOP NO: 6.0
RATIONALE:

To provide procedures for holiday processing for staff in BW1 and BWP Paygroups

PSOP:

Assumptions:

  1. Examples in document are for full-time 100% biweekly employees (You need to prorate for employees working less than full-time).
  2. If you have holiday policy issues, please refer to the UHRS policy manual.

Premium holidays for pay purposes: New Year’s Day (January 1st), Memorial Day (last Monday in May), Independence Day (July 4th), Labor Day (first Monday in September), Thanksgiving Day (third Thursday in November), Christmas Day (December 25th)

Non-Premium holidays for pay purposes: Campus Holiday (available March 1), Martin Luther King Day (third Monday in January), Friday After Thanksgiving (third Friday in November)

If employees are away from work on the “official IU observed holiday” and it is a regular scheduled work day, they should record the hours in TIME using the HOL earn code.

NOTE: You cannot use previously accrued holiday hours to cover the current holiday.

Biweekly Staff Employees (BW1):

Scheduled Work Day:
If an employee works 8 hours* on the holiday and it is their regular scheduled work day, they should receive the following compensation:

  • Premium Holiday: 20 hours (double time and one half)
  • Non-Premium Holiday: 16 hours (double time)

The following options are available for compensation:

Premium Holiday: Hours worked should be included in regular (RGN) hours and one of the following.

  • Option 1: Accrue 12.00 hours of holiday to be used later: HAC 12.00 hours
    or
  • Option 2: Pay 12.00 hours of HBP (holiday bonus pay)
    or
  • Option 3: Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours AND Pay 4.00 hours of HBP (holiday bonus pay)

Non-Premium Holiday: Hours worked should be included in regular (RGN) hours and one of the following.

  • Option 1: Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours
    or
  • Option 2: Pay 8.00 hours of HBP (holiday bonus pay)

*If hours worked are less than 8, the calculation is prorated.  If an employee works more than 8 hours, the holiday premium is limited to 8 hours. See examples below.

Example 1: Employee’s regular schedule is M-F, 8-5.  Premium holiday occurs on Monday and employee must come to work for 4 hours and used HOL for the other 4 hours. Record one of the following options for Monday:

  • RGN 4.00 hrs, HOL 4.00 hrs, HAC 6.00 hrs
  • RGN 4.00 hrs, HOL 4.00 hrs, HBP 6.00 hrs
  • RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs, HBP 2.00 hrs
**The extra compensation for hours worked on this premium holiday = 4 hrs x 1.5 = 6 hrs

Example 2: Same schedule as above except holiday is non-premium.  Record one of the following options for Monday:
  • RGN 4.00 hrs, HOL 4.00 hrs, HAC 4.00 hrs
  • RGN 4.00 hrs, HOL 4.00 hrs, HBP 4.00 hrs
**The extra compensation for hours worked on this non-premium holiday = 4 hrs x 1 = 4 hrs

Example 3: Employee’s regular schedule is M-T, 7-6 (10 hrs days). Premium holiday occurs on Monday and employee must come to work for 10 hours. Record one of the following options for Monday:
RGN 10.00 hrs, HAC 12.00 hrs
RGN 10.00 hrs, HBP 12.00 hrs
RGN 10.00 hrs, HAC 8.00 hrs, HBP 4.00 hrs

**The extra compensation for hours worked on any premium holiday is limited to 12.00 hours regardless of the number of hours worked.  8 hrs x 1.5 = 12 hrs

Scheduled Day Off:
An employee whose regular day off is both the observed and the legal holiday, will receive (8) hours off with pay at a mutually agreeable date. Holiday should be accrued with the HAC code.

If an employee works any hours on a holiday (premium or non/premium) which occurs on their regular scheduled day off and they are in pay status their full 40 hours of regularly scheduled time that week, they receive the following compensation:

  • 8 hrs holiday accrued (HAC), and OVT for any hours worked on the holiday**.
** If the employee had time off during the week on earn codes that do not count towards the overtime calculation, these extra hours may show up as NEP/NEC in TIME. You will need to wait until after the hours are loaded to the voucher and change them to OVT.

Special Note: Employees working alternate schedules that are required to work on the actual US holiday would follow these procedures on the US holiday instead of the IU observed holiday.

Biweekly Professional Staff Employees (BWP):

When they work on a holiday, they receive equivalent time off.

Professional Staff employees who are eligible for overtime (PAO and PAU) receive time off at a later point equal to the actual time worked on the holiday, up to 8 hours. If the employee works a partial holiday, the portion not worked is considered time off and is charged to Holiday hours.

Hours worked should be included in regular (RBP) hours.

AND

  • Accrue 8.00 hours of holiday to be used later: HAC 8.00 hours
The calculation is: Hours worked X 1 = HAC
 
CROSS
REFERENCE:

See the following policies,
Payroll PSOP 1.0, Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: PSOP1_Fiscal_officer


Payroll Administration Policy IV-70, Supplemental Payments for Services Provided Outside the Normal Scope of Employment: FIN-PAY-IV-70
RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 7.0: Paycard Information
SUBJECT:

Paycard Policy Information

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

March, 2010

DATE OF
LAST REVISION:
January, 2011
PSOP NO: 7.0
RATIONALE:

To provide an alternate method of payment for those individuals who do not/cannot have direct deposit of their paychecks. 

PSOP: IU automatically issue paycards to employees who have not signed up for direct deposit. This affects both current employees who have not enrolled in direct deposit and new hires going forward. All faculty and staff who have not enrolled in direct deposit no longer receive a paper paycheck mailed to their homes. Instead, they have the choice of enrolling in direct deposit or receiving a Visa paycard. Once direct deposit info is received, IU will no longer deposit payroll payments on a paycard.

For new employees, the paycard will be issued prior to the second payroll payment. The first payroll payment will be a paper check that the employee picks up in their campus payroll office. When the employee picks up their paycheck, they will be asked to sign up for direct deposit. If they are unable to sign up at the time of picking up their paycheck, they will be issued a Visa paycard and future payrolls will be loaded on the the paycard. The paycard can be used at any ATM to withdraw cash or at any vendor who accepts PIN based transactions. Employees can also withdraw all their funds at any US bank that accepts Visa. Those employees who do have bank accounts can transfer funds from the debit card directly to their bank account online.
CROSS
REFERENCE:
See the following policies,
Payroll PSOP 1.0: Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: PSOP1_Fiscal_officer

Payroll Administration Policy IV - 40, Distribution of Payroll Checks: FIN-PAY-IV-40

Payroll Administration Policy IV - 20, Direct Bank Depositing of Employee Wages: FIN-PAY-IV-20

RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 8.0: Paycheck Reissue Process
SUBJECT:

Paycheck Reissue Process

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

March, 2010

DATE OF
LAST REVISION:
June, 2010
PSOP NO: 8.0
RATIONALE:

For employees who have not enrolled in direct deposit, the payroll department will issue a paper check for the employee's first paycheck. This procedure describes the process for replacing a check that is lost or stolen.

PSOP: Reissue Process
  1. For lost paychecks, the payroll department will initiate a check stop payment and reissuance at the request of the employee’s departmental or regional payroll office.
  2. Please advise the employee that once the reissue is initiated, the stop payment on the original check becomes effective immediately. If they find the original check, they will be unable to cash it. They must wait for the reissued check.
  3. The department or regional payroll office should use the online Cash Control Stop Payment and Reissue workflow to initiate the reissue.
  4. Once initiated, Cash Control will stop payment on the original paycheck effective immediately. They will request a reissue. Central payroll will reissue the check and it will be printed by the next day at the latest. The employee can elect to have the new check mailed to their home or pick it up at their campus payroll office. Depending on timing, the new check may take 2-3 business days to reissue.
  5. If the employee elects to pick up the check at their campus payroll office, please indicate that on Cash Control’s Stop/Reissue form. BL and IUPUI can print their reissues and make them available immediately.In the interest of fairness, Bloomington will FedEx checks to the other campuses for the time being if the employee elects to pick up their check. If this becomes too expensive, we will begin putting them in Campus Mail.

Several key points to communicate to the employee about the stop payment and reissue process:

  1. If a check is stopped and reissued and the original check is subsequently found, the employee will be unable to cash the original check. They must wait for the reissued check.
  2. The stop payment and reissue process can take 2-3 business days, therefore they will not have a new check immediately. 
  3. The employee can have the reissued check mailed to their home or pick it up in their campus payroll office.
CROSS
REFERENCE:
See the following policies,
Fiscal Officer's Procedures to Ensure Compliant, Accurate and Timely Payroll Processing: Payroll PSOP 1.0

Payroll Administration Policy IV - 30, Stop Payment and Reissue of University Payroll Checks: FIN-PAY-IV-30
RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 9.0: Implementing IU's Policy on Mobile Devices and Internet Access

Payroll Standard Operating Procedure 9.0: Implementing IU's Policy on Mobile Devices and Internet Access

SUBJECT:

Implementing IU's Policy on Mobile Devices and Internet Access

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

March, 2006

DATE OF
LAST REVISION:
June, 2011
PSOP NO: 9.0
RATIONALE:

To outline the procedures for departments in the issuance of additional pay for an employee who uses mobile devices and/or internet access for departmental business.

PSOP: Procedures

A. Initiation of reimbursement:
  1. Employees whose Mobile Devices and Internet Access fall under the provisions of the Mobile Devices and Internet Access policy are to be reimbursed through the Additional Pay Edocs (either Create Additional Pay or Maintain Additional Pay).
  2. The Additional Pay Edocs are found in One.IU HRMS tile under the HRMS eDocs section. Instructions for the Additional Pay eDocs can be found on the UHRS website. Other assistance with these Additional Pay Edocs may be obtained from your campus Human Resources office.
  3. The initiator of the Create Additional Pay Edoc begins by choosing the appropriate earn code and reason combination. For payments under the Mobile Devices and Internet Access policy, Allowance (ALW) should be chosen and then select a reason code. Select DCA as the reason code for mobile devices and access. Select INT as the reason code for internet access. After selecting an effective date (see Note* below), the initiator must enter the Earnings End Date and the Total Amount of the additional pay for the period covered by the Edoc. Departments are responsible for determining this amount themselves, within the policy guidelines for the allowances.
  4. The Edoc, once completed, will route for approval through the appropriate channels. Once it has all approvals and has been saved to the HRMS system, this pay will appear on the employee's payroll voucher as a non-changeable field. In order for the reimbursement to be included in an employee's pay, all human resources Edoc and payroll deadlines must be met.

*NOTE: If the effective date of the Edoc is retroactive to the current pay period, the departmental payroll office must prepare adjustment voucher(s) as needed to ensure that the employee's retroactive additional pay is processed and paid. Any retroactive pay will not appear on the current payroll voucher unless an adjustment voucher is processed for the current pay period.

B. Reimbursement payments:

  1. In general, the policy allows payment to an employee for cell phones and other electronic access plans and access devices. The payment may be in the range of $15 - $150 per month, and may be set up to cover a specific period of time (such as several months, one year, etc.). The policy also allows for payment to an employee for internet access. The payment may be in the range of $30 - $100 per month and may also be set up to cover a specific period of time. Since additional pay is taxed at the employee's usual rate, the total amount paid may include an additional amount to compensate the employee for the taxes taken out of the pay, as long as the gross amount does not exceed the policy's range limit. The department has the choice whether to reimburse its employees for the taxes on this additional pay, and will have to determine what this amount will be and communicate that to the employee.
  2. Here are some examples that may help departments determine an appropriate reimbursement amount:

a) Allow the employee to provide his or her tax bracket to use in the calculation:

i. One of your employees gets a 12 month cell phone plan that costs $50 per month. That employee states that he/she is in the 25% federal tax bracket. To yield a net reimbursement of $50 per month, the department would first calculate the grossed up amount [$50 divided by (1.00 - .25)], giving a gross monthly reimbursement of $66.67. Next that would be multiplied by the number of months that the plan covers (in this case, 12) to get the total gross reimbursement of $800.04. That is the amount that will be entered on the Additional Pay Edoc.

ii. Remember that the total additional pay will be divided according to the period (dates) on the Edoc and how frequently the employee is paid. If the Edoc period is for a full year, a monthly-paid employee would receive 12 equal reimbursements, and a biweekly-paid employee will receive approximately 26 equal reimbursements, to total the gross reimbursement.

iii. NOTE: The department can decide what taxes it will reimburse the employee for. In addition to federal tax reimbursement, It could also reimburse for state, local (county) and/or FICA taxes. The calculation to increase the pay would be the same; just all the percentages for the other taxes would need to be added together before subtracting from 1.00, and then dividing the actual cost by that fraction. The Indiana State tax rate is 3.4%. The employee FICA rate is 7.65%. The county/local tax rate will vary depending on the employee. So, in the above example, if the person was in a county with a 1% tax rate, and the department chose to reimburse all employees for all their tax withholdings, the calculation would be $50 divided by (1.00 - .25 - .034 - .0765 - .01), giving the increased reimbursement of $79.43.

b)  The department decides to add the same percent to all employees' reimbursement:

i. The department does not have to ask the employee what tax bracket he/she is in; it may decide upon a specific percent by which to increase the payment for all employees being reimbursed under this policy. For example, a department may decide to use 30% as the figure to increase of the total amount any employee being reimbursed under this policy, regardless of the actual tax bracket of specific employees. The formula for the increased payment would be the same as in the previous example: the amount divided by (1.00 minus the percent).

c)  Please note: Whatever process the department chooses to use, it needs to be consistent in using that method for all employees for which reimbursement is made under the Mobile Devices and Internet Access policy (see link below).

CROSS
REFERENCE:

The financial policy titled Mobile Devices and Internet Access should be reviewed to determine relevant implementation conditions and restrictions before following these procedures to reimburse employees for mobile device plans and equipment and internet access plans:

See Accounting Administration Policy I-1, Payroll Policy I-480, Mobile Devices and Internet Access: FIN-ACC-1-480

RESPONSIBLE
ORGANIZATION:
Financial Management Services

PSOP 10.0: Monthly Payroll Vouchers - Attendance Adjustments for NO PAY Hours
SUBJECT:

Monthly Payroll Vouchers – Attendance Adjustments for NO PAY Hours

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

April, 2012

DATE OF
LAST REVISION:
06/04/2014
PSOP NO: 10.0
RATIONALE:

Monthly staff employees (S10/S12) use the ePTO system to record time off hours at the end of each month. The ePTO system does not interface with the HRMS system or payroll vouchers to reduce pay. Therefore, when an employee records a NO PAY earn code in the ePTO system, the departmental payroll processor will need to make the adjustment on the payroll voucher.

PSOP: Valid NO PAY earn codes in ePTO and mapping to Payroll Voucher:

ABE Absent Voucher Code = ABE Enter Positive Hours
AFL Absent FMLA Voucher Code = ABE Enter Positive Hours
AMC Absent FMLA–Military Caregiver Voucher Code = ABE Enter Positive Hours
AWB Absent w/attendance accruals Voucher Code = ABE Enter Positive Hours
INA Absent Injury Voucher Code = ABE Enter Positive Hours
SNS Suspension Voucher Code = SNE Enter Positive Hours
IJM *Injury–Offset by Worker’s Comp Voucher Code = IJM Enter Negative Dollar Amount

Attendance Adjustments/Absent Hours:
  • On the voucher, enter the appropriate earn code and the number of hours for any adjustment needed for attendance reasons (no hours to cover the absence). The system will use the hourly rate on the job (base salary/2080), multiply the rate by the number of hours, and SUBTRACT this amount from the monthly pay amount. If you enter a large amount of NO PAY hours, this could result in a negative calculation for the month. If so, you will need to calculate the number of hours you can process and the remaining hours will need to be deducted using an adjustment voucher in the following month.

  • If you know an employee has NO PAY hours in the current month before the monthly payroll is processed, enter the appropriate earn code and hours on the monthly voucher to avoid an overpayment.

  • If the NO PAY codes exceeded the balance in a prior month, you need to enter an adjustment voucher using the prior month dates, the appropriate NO PAY earn code, and hours. This is a positive adjustment since you want to SUBTRACT pay. If you enter a large amount of NO PAY hours, this could result in a negative calculation in the payroll. If so, you will need to calculate the number of hours you can process and the remaining hours will need to be deducted using an adjustment voucher in the following month.After the November 30 payment is confirmed, you must handle these situations as overpayments.**

  • *The IND code should only be used at the direction of the Worker’s Comp area. They will provide specific instructions concerning the amount to deduct on the payroll voucher.
**Wage Adjustments in the same tax year:
You may process adjustments for monthly employees up to and including the November 30 payroll closing. The December payroll is paid in January which is a new tax year. According to IRS regulations, IU is not allowed to reduce wages paid in a previous tax year. Any December adjustments and any unprocessed adjustments from previous year wages must be processed as an overpayment following the established procedures on the FMS website: PSOP 2.0: Overpayment Processing Procedures.
CROSS
REFERENCE:

PSOP 2 - Overpayment Processing Procedures

See Financial Related Policies:
http://policies.iu.edu/policies/categories/financial/index.shtml

RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 11.0: Overtime Policy - Special Exceptions
SUBJECT:

Overtime Policy – Special Exceptions

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

April, 2012

DATE OF
LAST REVISION:
 
PSOP NO: 11.0
RATIONALE:

Compensation for overtime work for Support, Service, and PAO/PAU Staff

PSOP:

Support, Service, and PAO/PAU Staff receive overtime compensation for hours worked in excess of 40 hours in a week plus the paid-time off categories listed below.  The overtime compensation shall be at a time and one half rate either in the form of pay or compensatory time off.  Time worked in excess of the daily schedule will count as overtime only when the total time worked for the week exceeds 40 hours.

In addition to time actually worked, hours applied to the following categories of paid time off are also included in determining overtime eligibility.

  1. Adverse Weather
  2. Adverse Working Conditions
  3. Emergency Rest Time
  4. Holiday
  5. Injury with pay
  6. Union Business
All other categories of paid time off, such as vacation, PTO, sick time, Income Protection, and compensatory time off, do not count as part of the 40 hours in a week to determine if overtime pay is applicable.

In weeks in which an employee uses paid time off (vacation, sick, PTO, etc.), there may be hours worked that do not qualify to be paid as overtime.  These hours worked will be compensated at a straight time rate either in the form of pay or compensatory time off at the department’s choice.  Two payroll codes have been developed for these hours:

  • NEP    Non-overtime eligible pay
  • NEC    Non-overtime eligible comp time (no pay)
Stagehand Union:
Employees covered by the Stagehand union receive time and one-half premium for the following situations:
  • Load-out – minimum 3 hours
  • Hours worked over 8 in a day
  • Hours worked between 12 to 8
  • Hours worked on Sunday

The following codes should be used on the payroll voucher for hours that meet the special criteria.  Stagehand union employees are not using the TIME system, so you need to enter the exact amount of hours on the voucher.

  • SHP   (Stagehand premium 1.5) for payment
  • CPP   (NoPay-Call Back Premium Comp) to add hours to comp bank
Call Back Procedure:
If an employee is called back to work, they are guaranteed at least 2 hours of overtime pay (3 hours on IUPUI campus).  The following codes should be used to override the regular overtime policy.
  • CAL (call back) for payment
  • CPP (nopay-call back premium comp) to add hours to comp bank
*If you are using TIME, enter the actual in/out times and the system will calculate the appropriate CAL or CPP hours. If you enter hours directly on the payroll voucher, you will have to calculate the appropriate hours to enter.
CROSS
REFERENCE:
See Financial Related Policies
http://www.indiana.edu/~policies/financial.html
RESPONSIBLE
ORGANIZATION:
Financial Management Services
PSOP 12.0: Termination Processing Procedures for Staff Employees

Payroll Standard Operating Procedure 12.0: Termination Processing Procedures for Staff Employees

SUBJECT: Termination Processing Procedures for Staff Employees
SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

April, 2012

DATE OF
LAST REVISION:
April, 2014
PSOP NO: 12.0
RATIONALE:

How to process leave plans and benefits at time of termination or retirement of IU employees

PSOP:

Monthly (S10, S12) and biweekly (BW1, BWP) appointed staff enrolled in leave plans are entitled to receive payout of benefit accrual hours at time of termination/retirement subject to policy restrictions.

  • Biweekly staff (BW1) must have at least 6 months of service to receive termination payout for Vacation hours.  Refer to UHRS for service date assistance.
  • All terminal payout for accruals should be processed with the last regular payroll cycle.
  • If terminal payout is not included in last regular payment, per policy, it should be processed in the next available off-cycle. We do not charge the off-cycle fee to process terminal pay.
  • If a staff employee transfers to an Academic position, they receive payout for any accrued benefit hours. You should include the terminal payment with the last staff payment if possible. Contact your FMS Payroll Processor for assistance.
The department determines the last day of work and initiates the termination eDoc:
  • Refer to policy and/or contact UHRS if you need assistance determining the last day of work, retiree status, and termination action reason codes.  The Termination effective date is the first day not working. See Separation Pay Policy
    • Special note: Monthly staff whose last day working is the last day of the month, their eDoc term date is the first day of the next month i.e. LDW 5/31, Term eDoc 6/1 = Process term pay in May payroll cycle. Biweekly staff whose last day working is Friday, their eDoc term date is Saturday.
  • When termination eDoc is final approved and saved, the employee will be removed from the payroll voucher.  The system will create a Final Check (FC Batch) paysheet .  The central payroll office will use the FC payline to process the final payment including terminal pay.
The department prepares the Paper Adjustment Voucher (PAV) (Alternate Excel PAV) for termination payout:
  • Include all regular pay and time off codes for the last pay period for BW1/BWP staff. Include all regular pay for S10/S12 for the last period. Time off codes for monthly staff are recorded in ePTO only. Be sure to indicate correct job record number.
  • Include active additional pays. Be sure to indicate correct sequence number and prorate if appropriate.
  • Indicate the exact funding account split(s) for each earn code.
Biweekly (BW1) Staff:
  • Review timesheet to determine hours worked and any time off hours used during the last pay period of employment.
    • The Approver and Payroll Processor can approve the timesheet to Final. These hours and approvals will be there for record keeping, but they will be overridden by the final adjustment voucher entry.
  • Review Leave balances to determine payout based on years of service and policy.  You should be running the IUIE Hours Balance report after each biweekly payroll closing to monitor accrual balances.
  • Calculate prorated vacation accrual for last pay period to include in termination payout.
    • Vacation/PTO Accrual Chart is published on FMS website in Payroll section.
    • Determine accrual rate based on service years.
    • Divide accrual rate by 80 = hourly accrual rate (also on chart).
    • Multiply hourly accrual rate times hours in pay status in final pay period.
  • Prepare PAV for final pay period, additional pay, and all terminal payout.
    • Separate work/benefit hours by FLSA pay period end date (week 1/week 2).
    • RGN hours must equal total hours in pay status for the week even if the employee used time off codes
      • Example: Employee’s last day of work was on Friday so they were in pay status 40 hours in the last week of work. They took 2 days off during the week due to sickness. RGN hours = 40.00, SCK = 16.00 (the 16 SCK hours will subtract from the 40 RGN hours and the employee will receive 16 hrs SCK, 24 hrs RGN).
    • Indicate time off hours by earn code (SCK, VAC, etc.) in appropriate week(s).
    • Include any additional pay earn codes (ALW, FYS, Temp Pay) in appropriate week(s) by sequence number. Prorate FYS payment for partial weeks.
    • Combine Accrued Vacation hours balance + calculated vacation accrual for last pay period to determine termination vacation payout per policy restrictions. See Vacation/PTO Accrual Chart.
    • Include Vacation payout hours in final pay period end date using the terminal earn code (Max=872).
      • BW1: TVC – Terminal Vacation-Biweekly
    • Include Holiday hours in final pay period end date using the terminal earn code.
      • BW1: THL –Terminal Holiday-Biweekly
    • Include Compensation hours in final pay period end date using the comp payout code.
      • BW1: CMP – Comp Hours Payout
    • If the employee qualifies for retirement, calculate and include any Sick hours using the terminal earn code.
      • BW1: TSK – Terminal Sick - Biweekly
Biweekly Professional (BWP) Staff:
  • Review timesheet to determine hours worked and any time off hours used during the last pay period of employment.
    • The Approver and Payroll Processor can approve the timesheet to Final. These hours and approvals will be there for record keeping, but they will be overridden by the final adjustment voucher entry.
  • Review Leave balances to determine payout based on years of service and policy.  You should be running the IUIE Hours Balance report after each biweekly payroll closing to monitor accrual balances.
  • Calculate prorated PTO accrual for last pay period to include in termination payout.
    • Vacation/PTO Accrual Chart is published on FMS website in Payroll section.
    • Determine accrual rate based on service years.
    • Divide accrual rate by 80 = hourly accrual rate (also on chart)
    • Multiply hourly accrual rate times hours in pay status in final pay period.
  • Prepare PAV for final pay period, additional pay, and all terminal payout. See Separation Pay Policy
    • Separate work/benefit hours by FLSA pay period end date (week 1/week 2).
    • RBP hours must equal total hours in pay status for the week even if the employee used time off codes.
      • Example: Employee’s last day of work was on Friday so they were in pay status 40 hours in the last week of work. They took 2 days off during the week. RBP hours = 40.00, PTO = 16.00 (the 16 PTO hours will subtract from the 40 RBP hours and the employee will receive 16 hrs PTO, 24 hrs RBP).
    • Indicate time off hours by earn code (SCK, PTO, etc.) in appropriate week(s).
    • Include any additional pay earn codes (ALW, Temp Pay) in appropriate week(s) by sequence number.
    • Add Accrued PTO hours balance + calculated PTO accrual for last pay period to determine termination PTO payout per policy restrictions. See Vacation/PTO Accrual Chart
    • Include PTO payout hours in final pay period end date using the terminal earn code.
      • BWP: TMP – Terminal PTO
    • Include Holiday hours in final pay week using the terminal earn code.
      • BWP: TMO – Terminal Holiday
    • Include Compensation hours in final pay week using the comp payout code.
      • BWP: CMP – Comp Hours Payout
    • Include any remaining Honorary Vacation hours in final pay period end date using the terminal earn code.
      • BWP: TMH – Terminal Honorary Vacation
    • If the employee qualifies for retirement, calculate and include any Sick hours using the terminal earn code.**
      • BWP: TMS – Terminal Sick
Monthly (S10, S12) Staff:
  • Prior to submitting the Termination eDoc, the ePTO Administrator should work with the employee to make sure that the employee has recorded all final time-off information in ePTO.
    • The employee will have access to do this until their termination date.
    • The supervisor or ePTO Administrator can also add this data to the calendar for the employee.
  • When submitting the Termination/Transfer eDoc, insert a note with the following information:
    • Regular Pay amount for final month of work (prorated based on days in active status).
    • Statement verifying the ePTO calendar is up to date. This signifies that either the employee, or the ePTO Administrator has recorded all time off on the calendar. If the ePTO calendar is changed after the eDoc is routed, please contact UHRS to correct.
    • Special note: employee’s whose last day working is the last day of the month, their eDoc term date is the first day of the next month = termination paperwork should be processed in the on-cycle closing of the month in which they last worked. i.e. LDW 5/31, Term eDoc 6/1 = May payroll cycle.
  • When the Termination eDoc is final approved, the ePTO Administrator will be responsible for accessing the employee’s calendar to complete the terminal paper adjustment voucher (PAV). When the ePTO Administrator logs into the employee’s calendar, the system will:
    • Display a bubble by the employee’s name which indicates that employee is terminated. The employee will show in the hierarchy for one month from the termination effective date, or until the position is filled. After one month, if the position is not filled, only the bubble will display. The employee’s calendar is still available through the “Find Employee” search box for ePTO Administrators. Once the position is filled, only a central office user will be able to access the calendar.
    • Prorate the monthly accruals for the month of the effective date of termination
    • Inactivate all entries in the system for the employee after the effective date of the termination.
  • Prepare the PAV for the final pay period, additional pay and all terminal payout:
    • Monthly REG pay prorated by work days in the month (this would include all hours in active status in the month they terminated. The REG amount would include any accruals used and/or holidays in the month they terminated.).***
    • Additional Pay earn codes and/or amounts (ALW, Temp Pay) by sequence number prorated by work days in the month. ***
    • Any termination payout due in accordance with policy. See Separation Pay Policy
      • TMP – Terminal PTO hours
      • TMO – Terminal Holiday hours
      • TMS – Terminal Sick hours (IU Retirees Only**)
      • TMH – Terminal Honorary Vacation
      • TMV – Terminal Vacation  (PB Plan only)
      • TMB – Terminal Bonus  (PB Plan only)
  • In the ePTO System the ePTO Administrator will then be responsible for:
    • Providing the Honorary, Sick, and Holiday balances from the Time Off Detail tab in ePTO as of the last day of the month of termination
    • Submitting and approving the final monthly calendar

How to figure prorated accruals in last working pay period for BW1/BWP Staff:
Accrual rate divided by 80 times hours in pay status = prorated accrual
Example: 4.31/80 x 56 = 3.017 (3.02)

How to figure Sick Payout for eligible Retiree’s (must be enrolled in PERF or 11.25% retirement plan):
If Sick accruals = 152 - 311 hrs 
(Accrual Amt – 152) x 25% = Balance To Be Paid
Example: 300 – 152 = 149 x 25% = 37.25 hrs 

If Sick accruals = 312 and above
((Accrual Amt – 312) x 50%) + 40 = Balance To Be Paid
Example: 900 – 312 = 588 x 50% = 294 + 40 = 334 hrs

Note: This calc is different with those who had vested rights in PERF and are now in 12% retirement plan. See Separation Pay Policy

How to figure Staff Monthly pay amounts:
For REG pay:   Monthly rate / number of work hours in the term month = hourly rate for month
Example:  $4335 / 168 (Jun 2012) = $25.804 hourly rate
Hourly rate X work hours = prorated monthly amount
CROSS
REFERENCE:

See Separation Pay Policy

See Financial Related Policies
http://policies.iu.edu/policies/categories/financial/index.shtml

RESPONSIBLE
ORGANIZATION:
Financial Management Services

PSOP 13.0: Military Time Off, Leaves, and FMLA Processing Procedures
SUBJECT: Military Time Off, Leaves, and FMLA Processing Procedures
SOURCE: Financial Management Services
ORIGINAL DATE
OF ISSUE:
November, 2012
DATE OF
LAST REVISION:
None
PSOP NO: 13.0
RATIONALE: To provide procedures for processing military time off, leaves, and FMLA processing procedures
PSOP: Biweekly staff (BW1, BWP) report attendance on the payroll voucher and must have specific codes to cover any absence. Monthly staff (S10,S12) report time off in ePTO and the earn codes do not drive pay. We have created the earn codes below to cover the different Military Situations. The same codes are available for monthly exempt employees in the ePTO system. I have only selected partial sections of the policy needed for reporting. Additional UHRS Military Leave information: http://www.indiana.edu/~uhrs/pubs/books/Military_Leave.pdf

Situation 1, Paid Leave:
  1. 15-day paid leave
    1. An eligible staff employee is entitled to a paid leave of absence for military service. The employee receives pay for all scheduled workdays during the service period.
      1. This paid leave will start on the first date shown on the military order and will continue until 15 consecutive workdays have elapsed—or until the employee returns to work—whichever occurs first.
      2. Paid leave will not exceed 15 paid days in any military year (October 1 through September 30).
    2. An employee is entitled to this 15-day paid leave for active duty, training duties, or reserve call-ups for which the employee has military orders.
  2. Weekend training
    1. Normally, the paid military leave of absence does not apply to training drills regularly scheduled on the weekend. To receive pay for weekend drills, an employee must meet all three criteria listed below. Any such paid time will be deducted from the 15-day paid leave annual allotment in paragraph 1.a.ii above.
      1. The employee's regular work schedule must include Saturdays or Sundays.
      2. The employee must be scheduled to work the weekend of the training.
      3. The employee must be ordered for military training.

      MIL Military Duty 15 Day paid leave per military orders. Limited to 15 paid days yr. (10/1 thru 9/30). Hours reduce from reg pay and attendance accruals are earned.

      Hours

      Subtracts from reg pay BW1,
      BWP

Situation 2, After Paid Leave Exceeded:

    1. Service in excess of 15 days
      1. If an employee incurs absences for more than 15 days service, he or she may do the following:
        1. Charge the absence to accrued time off (PTO, vacation, compensatory time, or holidays) until these categories of time off are exhausted. When the employee has used all of these categories of accrued time off, he or she is to go on a leave of absence or separate.
        2. Go on a leave of absence or separate.
      2. Using accrued time off will not count against the maximum amount of PTO or vacation allowed in a year.

      VML Vacation Military Vacation hours used during approved military leave when MIL hours are exceeded. Hours reduce Vacation Accrued balance and accruals are earned. Hours do not count towards annual max usage.

      Hours

      Subtracts from reg pay

      BW1

      PML PTO - Military Duty PTO hours used during military training, etc. that exceeds 15 day annual military leave. Hours subtract from reg, reduce PTO bank, earn attendance accruals, but do not count towards annual max usage.

      Hours

      Subtracts from reg pay

      BWP


      **No special codes needed for Absent, Sick, Comp or Holiday hours taken, use normal ABS, SCK, CPT or HTK earn codes.
    2. Extended active military duty
      1. A military leave of absence without pay shall be granted for an employee in a position other than one that is temporary. The regulations define temporary positions as those that exist for a brief, non-recurrent period with no reasonable expectation that the employment would have continued for a significant period.
      2. To be eligible, an employee must meet one of the following criteria:
        1. The employee is inducted through Selective Service.
        2. The employee enlists voluntarily.
        3. The employee is called through membership in the uniformed services.
      3. The limit on the cumulative time away from work at the university for military service and still retain the USERRA rights is five years.
      4. The military leave of absence covers the dates that the employee is actively performing service. The five-year limit may also extend to a later date when the employee is able to obtain a release from active duty. Time between completing the uniformed service and reporting back to work or requesting to return does not count against the five year limit. The law provides for other exceptions which are to be discussed with the campus Human Resources Office if a case arises.

**After the employee uses the 15 MIL days (120 hours if 100% FTE),they can use any Vacation, Sick, Comp or Holiday hours using the codes above. The employee has the option to exhaust their benefit hours or request to Leave of Absence. The department must initiate an eDoc to put the employee on Military Leave of Absence. The earn code associated with Military Leave will display on the job and payroll voucher and the employee will NOT receive payment. This code is NOT available to anyone for entry on the voucher or adjustment voucher.

LML NO PAY - Leave - Military Absent hours during Military leave. Hours subtract from regular hours. Attendance accruals will not be earned for these hours. Requires approved Military Leave documentation. Earn code results from leave eDoc.

Hours

NO PAY, subtracts from reg pay
Reemployment Provisions: http://www.indiana.edu/~uhrs/policies/uwide/reemployment_provisions.html

A Staff employee who separates employment from the University or takes a military leave of absence and who later returns to a staff position has certain provisions restored, if eligible, upon reappointment.

The table below is a summary only. See the appropriate section in this policy to determine whether an employee is eligible

Reemployment Provisions At-a-Glance:
Type of provision restored After a RIF After a voluntary separation After a medical-related separation After a military separation or
military leave of absence
*
Unused sick time Yes No Yes Yes
Unused vacation time Yes No Yes Yes
University seniority Yes No Yes Yes
Occupational unit seniority Yes No Yes Yes
University Service Credit Yes Yes Yes Yes
Retirement Plan Benefits No No No Yes
Vacation or PTO Accrual No No No Yes

* Veterans are fully restored to the status that he or she would have enjoyed as an employee.

Staff and Hourly employees other than those in temporary positions (defined in the regulations as positions that exist for a brief, non-recurrent period with no reasonable expectation that the employment would have continued for a significant period) who take a leave of absence or separate to enter military service are entitled to the reemployment provisions of USERRA. When an employee completes military duty and meets the conditions below, the veteran is to be restored to the status that he or she would have enjoyed with reasonable certainty as an employee as if the leave or separation had not occurred. This includes, if applicable:
  1. Working conditions established by one’s length of university service.
  2. The position that the person would have been in had the leave or separation not occurred. This may be at the same, higher or lower classification level and includes the completion of any evaluation period that would have expired during this time.
  3. Restoration of unused income protection time and vacation time or PTO, as applicable.
  4. The university seniority date that existed at the time of separation, if a separation occurred.
  5. The occupational unit seniority date provided the employee is returned to the same occupational unit.
  6. University service credit plus the time away from work during the military leave of absence or separation, if a separation occurred.
  7. The salary or pay rate that the employee would have been at but for the absence for military service.
  8. IU-funded contributions that would have been allocated to the employee’s retirement plan but for the absence for military service.
  9. The time in the military service will count towards fulfilling the length of employment and hours of work requirements to be eligible for a leave under the FMLA policy.
  10. Accrual of vacation/PTO for the period in military service up to a limit of one year’s accrual per period of military service. This amount will be awarded only if the individual returns to work. The rules on the maximum usage of vacation or PTO in a year will continue to apply.

Situation 3, Military Family Leave:

    1. Leaves for Military Families
      1. An employee who is a family member of a person on active duty in the United States Armed Forces is eligible for military family leave under the Indiana Military Family Leave Act, www.in.gov/legislative/ic/code/title22/ar2/ch13.html.
      2. The Act provides for unpaid leave for a total of 10 workdays per calendar year during one or more of the following periods:
        1. Within the 30-day period before a family member begins active duty,
        2. During the period that a family member is on active duty, or
        3. During the 30-day period following a family member's return from active duty.
        4. The time can be taken in full in one period or split amongst the periods.
        5. An employee is eligible for such leave for each family member on active duty.
      3. To qualify as a family member, the employee must have one of the following relationships to the person on active duty:
        1. Spouse
        2. Parent (biological, adoptive, foster, step, or court-appointed guardian or custodian)
        3. Grandparent (biological, adoptive, foster, or step)
        4. Child (biological, adopted, foster, or step)
        5. Sibling (biological, adoptive, foster, or step)
      4. Time off for employees who are other family members is discretionary and subject to supervisory approval.
      5. Indiana University extends this benefit to a same sex domestic partner as qualified by the University’s Affidavit of Domestic Partnership.
      6. A leave request that meets the family member and active duty criteria above must be granted unless the employee:
        1. Has not been employed for at least 12 months and worked at least 1,500 hours in the 12 months immediately preceding the day that the military family leave begins, or
        2. The employee has used all 10 workdays for that family member for the calendar year.
      7. The Military Family Leave Act does not provide additional time off with pay. A Staff employee must use accrued Vacation or PTO to cover the leave before taking any of the time off without pay or using any other accrued time off.
        1. Vacation or PTO time used during a military family leave will not count towards annual limits on the use of such time.
        2. Time off without pay during a military family leave is an excused absence with benefit accrual and will not count in any attendance-related policies.
        3. If the employee does not have sufficient accrued vacation or PTO to cover the leave, any other accrued time off or absence without pay is to be used at the employee's choice.

VMF

Vacation Military Family

Vacation hours used during approved Military Family leave. Hours reduce Vacation Accrued balance and accruals are earned. Hours do not count towards annual max usage. Limited to 10 work days per occurrence per calendar year.

Hours

Subtracts from reg pay

BW1

PMF

PTO - IN Military Family Leave

PTO hours used during approved IN Military Family leave. Hours subtract from reg, reduce PTO bank, earn attendance accruals, but do not count towards annual max usage.

Hours

Subtracts from reg pay

BWP

CPH

Comp Hours Tkn-IN Family Military Leave

Comp hours used from bank to cover absences during approved IN Family Military leave. Hours subtract from reg pay, reduce Comp Hrs bank and attendance accruals are earned.

Hours

Subtracts from reg pay

BW1,
BWP

AML

NO PAY-Absent w/o Pay-IN Military Fam Lv

Absent hours that will subtract from Regular hours during approved IN Military Family Leave. Counts towards the 10 workday limit. Attendance accruals will be earned for these hours.

Hours

NO PAY, subtracts from reg pay

BW1,
BWP

SFM

Sick Nonexempt-IN Military Family

Sick hours used during approved IN Military leave. Hours subtract from reg, reduce Sick bank and earn accruals.

Hours

Subtracts from reg pay

BW1,
BWP

HOM

Holiday - IN Military Family Leave

To cover absence during official IU holiday during approved IN Military Leave. Hours subtract from regular hours and attendance accruals are earned.

Hours

Subtracts from reg pay

BW1,
BWP

HFM

Holiday Hours Taken-IN Military Family

Hours used from holiday bank to cover absences during approved IN Military leave. Hours subtract from reg pay, reduce Holiday hrs bank and attendance accruals are earned.

Hours

Subtracts from reg pay

BW1,
BWP

Situation 4, FMLA Military Caregiver Leave: http://www.indiana.edu/~uhrs/policies/uwide/fmla.html

    1. Military caregiver leave
      1. Military Caregiver Leave is FMLA leave to care for a covered service member who has suffered serious injury or illness in the line of covered active duty. The term covered active duty means duty during deployment to a foreign country.
      2. A covered service member means a current member of the Armed Forces, National Guard or Reserves who is undergoing medical treatment, recuperation, therapy, is in outpatient status, or is otherwise on the temporary disabled list for a serious injury or illness or is a veteran undergoing treatment, recuperation, or therapy for a serious injury or illness and who was a member of the Armed Forces, National Guard, or Reserves, at any time during a period of 5 years preceding the date on which the veteran undergoes that medical treatment, recuperation, or therapy.
      3. For purposes of this section, the term ‘serious injury or illness’ means:
        1. In the case of a member of the Armed Forces, National Guard, or Reserves, an injury or illness that was incurred in line of duty on active duty in the Armed Forces (or existed before the beginning of active duty and was aggravated by service in line of duty on active duty in the Armed Forces) and that may render the member medically unfit to perform the duties of the member’s office, grade, rank, or rating; and
        2. In the case of a veteran who was a member of the Armed Forces, National Guard, or Reserves at any time during a period described in paragraph P.2. above, a qualifying (as defined by the Secretary of Labor) injury or illness that was incurred in line of duty on active duty in the Armed Forces (or existed before the beginning of active duty and was aggravated by service in line of duty on active duty in the Armed Forces) and that manifested itself before or after the member became a veteran.
      4. An employee who has a qualified family relationship with a covered service member may take up to 26 weeks of leave during a single 12-month period. A qualified family relationship is a spouse, domestic partner, parent, child or next of kin. Contact the campus human resources office to determine if a qualified family relationship exists.
        1. The leave entitlement described in this paragraph applies on a per-covered service member, per-injury basis, such that an eligible employee may be entitled to take more than one leave if the leave is to care for a different covered service member or to care for the same covered service member with a subsequent serious illness or injury.
        2. An employee may have an FMLA leave for up to 12 weeks for one of the qualifying reasons covered in paragraph D. above in the same 12-month period in which an FMLA leave is taken to care for a covered service member.
        3. No more than 26 weeks total of FMLA leave may be taken within any single 12-month period.

VMC

Vacation-FMLA-Military Caregiver

Vacation hours used during approved FMLA Military Caregiver leave. Hours reduce Vacation Accrued balance and accruals are earned. Hours do not count towards annual max usage.

Hours

Subtracts from reg pay

BW1

PFC

PTO - FMLA - Military Caregiver

PTO hours used during approved FMLA Military Caregiver leave. Hours subtract from reg, reduce PTO bank, earn attendance accruals, but do not count towards annual max usage.

Hours

Subtracts from reg pay

BWP

CPM

Comp Hours
Tkn-FMLA-Military Caregiver

Comp hours used from bank to cover absences during approved FMLA Military Caregiver leave. Hours subtract from reg pay, reduce Comp Hrs bank and attendance accruals are earned.

Hours

Subtracts from reg pay

BW1,
BWP

HFC

Holiday Hours Taken - FMLA Military Caregvr

Hours used from holiday bank to cover absences during approved FMLA Military Caregiver leave. Hours subtract from reg pay, reduce Holiday hrs bank and attendance accruals are earned.

Hours

Subtracts from reg pay

BW1,
BWP

HOC

Holiday FMLA - Military Caregiver

To cover holiday absence during approved FMLA Military Caregiver leave. Hours subtract from regular hours and attendance accruals are earned.

Hours

Subtracts from reg pay

BW1,
BWP

SFC

Sick Nonexempt - FMLA - Military Caregiver

Sick hours used during approved FMLA Military Caregiver leave. Hours subtract from reg, reduce Sick bank and earn accruals.

Hours

Subtracts from reg pay

BW1,
BWP

HNC

Honorary Vacation - FMLA Military Caregiver

Hours used from honorary vac bank to cover approved FMLA Military Caregiver leave. Hours subtract from reg, reduce honorary vac bank and attendance accruals are earned.

Hours

Subtracts from reg pay

BWP

AMC

NO PAY-Absent-FMLA-Military Caregiver

Absent hours that will subtract from Regular hours during approved FMLA Military Caregiver period. To be used after employee exceeds leave balances. Counts towards 26 week limit. Attendance accruals will not be earned for these hours.

Hours

NO PAY, subtracts from reg pay

BW1,
BWP

CROSS
REFERENCE:
See Policy Leaves for Military Duty and Leaves for Military Families: http://www.indiana.edu/~uhrs/policies/uwide/military.html
RESPONSIBLE
ORGANIZATION:
Financial Management Services