Payroll Standard Operating Procedure 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