ctcLink Accounting Manual | 40.90 Payroll Accounting

While each college maintains a separate bank account for locally written checks (accounts payable), ctcLink HCM uses one bank account to produce payroll checks for all the colleges in the system. This account is managed and maintained at the State Board for Community and Technical Colleges (SBCTC).  Using a single bank account and making a single draw from the State Treasurer is required by the State since our system is a single agency (6990) in the state accounting and banking systems.

40.90.10.1 Payroll Process Overview

The process, depicted graphically below, has these basic steps:

1. Colleges complete payroll process through ‘Confirm.’
2. Central Payroll runs the M-036 process.
3. Central Payroll runs the CR-7010/CR-7020 report to determine the total state funded payroll and net pay from all funds.
4. Central Payroll requests total state funds from the State Treasurer.
5. Central Payroll deposits total state funds per college into the college bank account.
6. Central Payroll withdraws total net pay for all funds from the college bank account.
7. Colleges create payroll journals clearing net pay liabilities. Since cash was withdrawn from the college bank, deposited into Central Payroll bank and since Central Payroll now has a Net Pay Liability for college employee’s pay the colleges must record an entry: Dr Net Pay Liability/Cr Cash in Bank. Not shown below:
8. Central Payroll issues a paycheck or ACH/Direct Deposit for college system employees.
9. Colleges must also record the VPA (Dr Cash in Bank/Cr VPA Revenue by state fund in Fund 790-285-98499). DO NOT DRAW FUNDS FROM THE TREASURER FOR PAYROLL.

Once payroll has been scheduled and processed, and overnight job is scheduled to post ctcLink HCM data to FIN General Ledger on payroll cutoff plus one day.

Payroll processing

ctcLink payroll accounting begins with combination codes.

A chartfield combination code (i.e. Combo Code) is a shorthand value which represents a specific chartstring.

Example: Combo Code 000169611 represents:

1. Operating Unit – 7170 (Spokane District)
2. Account – 5000100 (Community College Classified)
3. Fund – 001 (State General Fund)
4. Appropriation Index - 101 (State General Fund)
5. Class – 083 (General Support Services)
6. Department – 35932 (Purchasing)
7. State Purpose – N (not IT related)

Some Combo Codes have additional chartfields (see below for a list of available chartfields).

40.90.20.1 Creating Combination Codes

To create new combination codes permissions are required in HCM to the Combination Code Table: “NavBar > Menu > Set Up HCM > Common Definitions > ChartField Configuration > Combination Code Table > Add a New Value”.

Combination Code Table

Combination Code Table Fields

 

40.90.20.2 Combination Codes Available Chartfields

The following fields are available in the configuration table:

40.90.20.3 Combination Code Accounting

Each employee must be assigned a valid chartstring to ensure payroll expenses are charged correctly.

When payroll information is processed and journalized into HCM the combo code numbers are replaced in accounting chartstring represented by the combo code.  However, job codes and amounts can be matched when comparing FIN and HCM payroll journals. This is especially helpful when reconciling grant-related payroll.

Be aware HCM does not have edit checks in place so an invalid chartstring will be loaded to the FIN journals.  Colleges will be required to correct the GL journals prior to posting.

This will result in differences between the HCM journals and FIN journals.

For information on working with Combo Codes see the following QRGs:

• Creating a Combo Code
• Uploading a Combo Code Spreadsheet
• 2 Deleting a Combo Code

The Combo Code determines the chartstring to which payroll expenses for each employee is charged but deduction code table configurations determine the accounts.

40.90.30.1 Payroll Expense Accounts

Employee salary expenses accounts are determined by employee type to allow to required reporting to the State:

Entire employee salary for the pay period is charged to one of these expense accounts with an offset to the Net Pay Liability account (2011015).  Each employee (EE) deduction results in the reduction of the Net Pay Liability and an increase in the specific deduction liability. Employer contributions also have distinct expense and liability accounts that increase college payroll expenses but do not impact employee pay or net pay.

40.90.30.2 General Deduction Codes

The Combo Code determines the chartstring to which payroll expenses for each employee are charged.

However, the Deduction Code tables determine the liability accounts.  Each employee deduction code reduces the amount of the net pay liability.  In addition, employer deduction codes add to the total payroll expenses and liabilities. See CLAM 40.90.40.2

To find the liability account each deduction is charged to:

NavBar > Menu > Set Up HCM > Product Related > Payroll for North America > Deductions > Deduction Table and select Plan Type and/or a Deduction Code.

Different deduction codes and liability accounts have been established for both the employee (EE) and employer (ER) portion to allow for easier reconciliation and error identification.

IMAGE deduction-table-40-90-30-2

Deduction Table

Employee Portion

Employer Portion

 

40.90.30.3 Deductions Tax Treatment

The Deduction Code tables also determine the tax treatment of each benefit:

Employee Portion

Employer Portion

 

40.90.30.4 Company Payroll Liabilities

Each college has specific configurations set up here:

NavBar > Menu > Set Up HCM > Foundation Tables > Organization > Company > Tab: Default Settings > Link: General Ledger Accounts

Payroll liabilities setup

Payroll liabilities GL accounts

With the ‘Distribute Expense’ box checked; the system distributes the cost of benefits according to the percentage of total earnings the employee earned in each department. If this box is not checked, all expenses are distributed to the employee's home department.

40.90.30.5 Payroll Liability Account Complete List

Abbreviation legend

• EE = Employee
• ER = Employer
• PP = Prepay (Faculty Only)

State accounting rules require different expense accounts for each benefit expense type. Since this functionality was not part of the original Peoplesoft design, custom tables were created to map some earnings, deductions and tax expense accounts.

40.90.40.1 GL Earnings Expense Account Mapping

The salary and wages expense accounts are established in the combination code used for each employee.

NavBar > Menu > Set Up HCM > CTC Custom > CTC GL Account Mapping.

Some colleges have elected to use different expense accounts for special pay like overtime or cellphone stipends which are configured in the GL Earning Account Mapping of the CTC GL Account Mapping page.

GL earnings account mapping

40.90.40.2 GL Deduction Expense Account Mapping

The employer share of each deduction (discussed above), sometimes referred to as the employer contribution, is assigned the required expense account and used during journal generation to create the correct accounting entries.

IMAGE gl-deduction-account-mapping-40-90-40-2

GL deduction account mapping

40.90.40.3 GL Tax Expense Account Mapping

The employer share of tax deductions (discussed above), sometimes referred to as the employer contribution, is assigned the required expense account and used during journal generation to create the correct accounting entries.

IMAGE gl-tax-expense-account-mapping-40-90-40-3

GL tax expense account mapping

40.90.40.4 Payroll Vendor Configuration

The vendor ID, amount/percentage, date, and frequency of deductions are established on the General Deduction Table.

NavBar > Menu > Set Up HCM > Product Related > Payroll for North America > Deductions > General Deduction Table.

General deduction table

40.90.50 Processing Payroll Vouchers

40.90.50.1 Payroll Dates

Payroll cut off dates on the 15th with a pay date of the 25th (or nearest business day) and last day of the month with a pay date of the 10th of the following month (or nearest business day).

For most payrolls, college payroll staff must complete payroll confirm 5 business days prior to the paydate and checks should be printed 4 days prior to paydate. Occasionally due to holidays the number of days may be adjusted.

40.90.50.2 HCM and FIN Payroll Data

A HCM detail journal will be generated overnight after payroll is confirmed by each college with the expense/liability entries based on the combo codes and payroll configuration. The process creates the table HR Acctng Ln in HCM. The HCM table pushes summary accounting detail to FIN creating a table called the HR Acctng Ln.

The difference between the HCM HR Acctng Line and the FIN HR Acctng Line tables is the level of detail. HCM contains all the distribution details including employee names, EmplIDs, earning and deductions and so forth. The FIN table has only summary accounting data without employee information.

With appropriate access to HCM Query Viewer the following queries provide detail information for each pay period:

1. CTC _HR_ACCTNG_LINE_PAY_PERIOD. This table lists each earning type, each deduction, employee IDs, names and accounting chartstrings.
2. CTC_HR_ACCTG_LINE_EE_DIST provides employee IDs, names and expenses and liabilities by chartstring.

(PAY Journal). These journals must be posted “as is” before the month closes.

40.90.50.3 Posting ‘PAY’ Journals

All journals created in HCM and posted in the Finance general ledger have the prefix ‘PAY’.  Payroll journals do not run through budget or combo edit checks and therefore may not post due to errors.

Therefore, prior to posting PAY journals, invalid chartstrings may need to be corrected.  Only the posting errors should be corrected since the payroll expense MUST equal the funds Central Payroll requested on the college’s behalf from the State Treasurer and drawn from the college bank account!

If the expense/liability journal is modified, then the same changes must be made to each voucher upload (Net Pay and Payroll Liabilities). This increases the likelihood of errors that will need to be fixed with journals entries. This also creates a variance between the source record (HCM Acctng Ln table) and the posted journal in FIN.

If other errors are identified that do not prevent the journal from being posted, colleges should create a second general journal to make the corrections to the payroll.

40.90.50.4 Relieving Net Pay

Since the PAY journals create liability credits, and the System Payroll has either issued checks or created a direct deposit for the employee’s pay, net pay liabilities must be relieved.

This is accomplished by:

1. Running the ‘CTC_HR_ACCTG_NET_PAY_DIST’ query in HCM.
2. Uploading the results using the process described in the QRG 9.2  Create Voucher Using a Voucher Upload Process.
3. Marking all vouchers for Net Pay as ‘Manually Paid’

The voucher can be reviewed here: NavBar > Menu > Accounts Payable > Vouchers > Add/Update > Voucher Search

After completing upload/import of the Net Pay voucher the screens have these values/characteristics:

Summary Tab

• The Voucher Source = Excel Upload (Payables)
• Origin = PYR
• Supplier Name = WA ST Board for Comm and Tech Colleges

Relieving net pay invoice summary

Invoice Information Tab

• Tax Exempt = Checked. If this box is not checked, the voucher will record an expense to Use Tax!
• Supplier ID = V000009035
• Location = 000
• Address = 6

Relieving net pay invoice info, part 1

Lower portion of this tab contains all accounting distribution lines included in the Net Pay voucher (in this example the voucher contained 85 lines of summary payroll accounting lines:

Relieving net pay invoice info, part 2

Payments Tab

• Payment Options section should contain college bank information.
• Method = MAN (this must be manual since the central payroll process has already drawn the funds from the college bank account).

Relieving net pay invoice payment

Voucher Attributes Tab

• Voucher Processing is set to ‘Revalue Voucher’.
• Workflow Approval/Approval rules is set to ‘Pre-Approved’ since approval occurred in payroll.

Relieving net pay invoice voucher

Error Summary Tab

• Errors (if any) are listed here:

Relieving net pay invoice error

Summary Tab – Payment Inquiry Link

• Selecting ‘Go’ for the Payment Inquiry will display the Vouchers For a Payment screen

Relieving net pay invoice inquiry

40.90.50.5 Relieving Payroll Liabilities

When payroll processing is complete, HCM pushes payroll liabilities to the Voucher Build Staging Tables. To generate vouchers in FIN, it is necessary to run the process as described in QRG 9.2 Process Payroll Vouchers.

This provides the step-by-step process for:

1. Voucher Build Request. The Voucher Build process then builds voucher records from the staged data and writes them to the PeopleSoft Payables voucher tables. The process only accepts data for new vouchers. Vouchers that already exist in the PeopleSoft Payables voucher tables must be updated online using the Voucher component or the Voucher Maintenance component.
2. Voucher Budget Check, Approval and Review.
3. Voucher Payment Options. Colleges MUST be aware of which vouchers should be checked as manually paid (i.e. paid outside of ctcLink).  The vouchers marked with an asterisk (*) below are typically paid outside of ctcLink and should be marked manually paid.

Colleges MUST also be aware of which payments occur outside the system.  See guidance in this section of the QRG for step-by-step processing.

To review the list of payroll vouchers to be paid run the query in HCM: CTC_AP_EXTRACT_SUMMARY.  Typical results should look like this:

AP Extract Summary

* The vouchers marked with an asterisk (*) are typically paid outside of ctcLink and should be marked manually paid.

40.90.50.6 Payroll Liabilities Payment Dates

Original vouchers should be posted without changes to allow for easier reconciliation between HCM and FIN. If changes are required two options are available:

• Create a new voucher to modify the payment amount.
• Create a Journal Voucher to modify the distribution lines.

Colleges should utilize Selective Payment Update to:

• Add comments to the payment remittance
• Change payment dates
• Split payments

See Reconciliation of Payroll Liability Accounts presentation for additional guidance.

40.90.50.7 Annuity and Retirement Plans 6% Maximum Process

As of July 1, 2011 the Legislature limited (RCW 28B.10.423(2)) community and technical college contribution from state funds to annuity and retirement income plans (e.g. SBRP(TIAA), 403b or 457b plans) to no more than 6% of salary.

When payroll is processed in HCM, the full amount of non-DRS retirement contributions will be computed (based on age or on employment agreement) and charged to the fund(s) the employee’s salary is distributed. Current state law requires any amount more than 6% of salary charged to a state fund must be moved to a local fund (149 Tuition or other local fund) after payroll processes.

The current State Board Retirement Plan (SBRP – often referred to a TIAA-CREF) has college contribution rates of 5, 7.5 or 10% based on employee age.  The rule also applies to any other annuity or retirement plans like a 403b or 457b. If a college charges employee benefit contributions for these employees to state funds (001, 08A, 24J, 057, etc.) any college matching amount exceeding 6% must be paid out of local funds (Fund 149, 148, 145, etc.).

Three queries are built for this process:

1.  QHC_PY_GROSS_TIAA_BENE_OVER_6

This query pulls detailed information on employees that have non-DRS retirement contributions greater than 6% of gross pay in a state fund when payroll processed. If an employee has multiple retirement plans, or if salary expenses are charged to multiple chartstrings, some values may be duplicated.  However, the values ‘Over Amount Move to CF 149’ are not duplicated and are accurate.

2.  QHC_PY_STATE_TIAA_JRNL_OVER_6

This query displays the journal lines and amounts needing to be moved out of state fund chart strings into local fund chart strings by Employee ID and by pay end date.

NOTE:  This query should be run in Scheduled mode.

3. QHC_PY_STATE_TIAA_JRNL_6_TMPLT

For each pay period, the college should run this query which generates a file with all the debits and credits necessary to move the excess retirement contributions from state funds to local Fund 149 in a format used in the journal upload process.

The query will return the following results for each chartstring (the columns/rows have been transposed to fit the page).

NOTE:  This query should be run in Scheduled mode.

Colleges should run these queries after each pay period’s activity posts to the General Ledger. Always run and upload each pay period separately.

The Excel spreadsheet generated from the ‘QHC_PY_STATE_TIAA_JRNL_6_TMPLT’ should be uploaded as an external journal the process described in the ctcLink Reference Center.

Uploading this journal will impact the amounts in the State Reimbursement(VPA) amount since expenditures are being moved from state funds to local funds.

To keep this process simple, all excess retirements are moved from state funds to Fund 149 since expenditures allowed in state funds are also permitted in Fund 149. However, it may be necessary to move some expenditures/internal cash from Fund 149 to other funds (e.g. capital funds from Fund 057 or 060 to other local funds).

The community and technical college system is required to report staff months to the state since OFM and legislative staff use the values to estimate number of total full-time equivalent employees (FTE) in our system in state and operating funds.

40.90.60.1 Staff Months Overview

A standard staff month (SMO) is equal to 174 hours (the average available work hours in a month). A staff month calculation is the percentage of time an employee works relative to the standard staff month. However, the calculations for certain types of employees is different and are described below.

Staff months are calculated in HCM using a custom process (E-192/E-193) as part of payroll processing. Staff months are calculated for each account code and earnings type combination. Staff months are not calculated for volunteer hours or when earnings do not add to total gross pay.

40.90.60.2 Staff Months in the General Ledger

Staff months calculated by HCM are recorded in the ledger as a Statistical value SMO.  Statistical field SMO should be excluded when running queries or reviewing journals for monetary values.

40.90.60.3 Excluding Staff Months in Expenditure Queries

Staff months calculated by HCM are recorded in the ledger as a Statistical value SMO.  Statistical field SMO should be excluded when running queries or reviewing journals for monetary values.

40.90.70.1 Payroll Corrections

Payroll corrections are processed in the general ledger and include the entire chartstring for salary and benefit costs including the staff months (SMO) associated with the correction of the employee(s) payroll record.  The HCM-Payroll records for the employee or group of employees will not change once payroll has been processed.

Colleges are strongly encouraged to maintain good documentation for tracking purposes and for reconciliation between payroll records in HCM and FIN.

Payroll corrections use account codes 5000xxx (salaries) and 5010xxx (benefits) for the expense portion with internal cash to balance the transactions. The SMO should be entered on the appropriate 5000xxx line in the “STAT” field.

40.90.70.2 Combo Code Error Corrections

As noted in CLAM 40.90.20.3 invalid combo codes will process in HCM payroll but will error out in FIN based upon the combination edit rules (See CLAM 10.40).

When an invalid combo code is used all accounting entries (benefit expenses and liabilities) for the employee are recorded in Fund 790, Class 301, (department based on college configuration) and the employee’s salary expense account is changed to 5010170 - Payroll Suspense. Colleges should go through the following process each pay period to ensure all combo codes are valid and to correct all errors:

1 . Identify the Employees.

Each pay period run a query like this one:

Using the current pay period end date and including Fund 790.  This will identify the employee(s) with invalid Combo Codes and provide the accounting lines that must be corrected.

2.  Identify the Invalid Combo Code.

Running this query for each Empl ID will provide the Combo Code used that caused the error:

3. Correct the Combo Code causing the error.

If the combo code is inactive but is a valid chartstring, it is possible to activate the code. If the charstring is not valid, either a different code will need to be assigned to the employee or a new combo code created and then assigned. Follow the steps identified in CLAM Section 40.90.10 using the Find an Existing Value to look up the Combo Code:

4.  Correct the Accounting Entries.

The query ‘QHC_PY_DEPT_PAYDETAIL’ in HCM will provide all the expenditure accounting detail necessary to create the journal entry.

Since the Net Pay Liability will be relieved using the Voucher Upload Process and other payroll liabilities will be relieved using the Voucher Build Process it is critical the journal only moves the expenses from the Fund 790 chartstring to the correct chartstring.  If the correct chartstring uses a state fund (001, 24J, etc) the VPA process will pick up those expenses and the college will receive reimbursement from the State Treasurer.

40.90.70.3 Payroll Transfers

Intra-agency transfers are used to reclassify expenditures within the district between funds, appropriation indexes, etc. In Legacy, these transactions were commonly referred to as “T-transfers”.

The practice of transferring large monetary amounts between accounts (“T-Transfers”), primarily to cover employee compensation costs, has created transparency, accountability, and funding questions from oversite agencies.

In addition, because salary expenditure amounts are used to allocate salary increase funding, concerns about colleges “gaming” the allocation system by charging more to state funds than the college actually spends by year-end close due to transfers.

Each ‘T’ transfer will have to identify an account code to differentiate how the transferred funds are being used (classified, exempt, faculty, other (for tech colleges) and student employees).  Differentiating between account codes slightly increases the workload for community and technical colleges but it meets the needs of state legislators.

Colleges MUST enter the number of staff months as an additional data point. Colleges are expected to consistently use the Fund, Appropriation Index, Class and State Purpose.  Since Department (Org Index) and specific grant information is not sent to AFRS, colleges may use a single Department for salary and benefit transfers if they choose to do so.

Intra-agency transfers use account codes 5081010 through 5081080.  DO NOT include any SMO data on intra-agency salary transfers (5081010).  When SMO data is attached to the 5081010 account, it creates AFRS reporting errors resulting in the deletion of the data.

Do not report staff months for Fund 790 or 840 as these are prohibited by state accounting rules.

Include SMO data on only the salaries and wages expenditure line of the journal. Do not include SMO for any other accounts.

When transferring salary expenditures within ctcLink the following fields are always required or have special requirements. See legend (1-6) below.

(1)  Accounts

When transferring salary expenditures only the following five (5) accounts may be used (colleges are always welcome to reverse the original account and record the correct account):

Salary Expenditure Types & Transfer Accounts

(2)  Fund

DO NOT record staff months for either Fund 790 or 840.  The entries will be rejected, and the college will be asked to correct the entries.

(3)  Department

Colleges may use a single department for all transfers since Department is not included in our transmittal to AFRS.

(4)  Class Code

Colleges may group transfers by Class Code (Program Index).  i.e.  011, 012, 014, 016, 018 may be transferred by any class 01x, any 061, 062 etc. may be transferred by any 06x. College data is transferred to AFRS using 010, 040, 050, etc. therefore the specific Class/PI is not significant in AFRS (for colleges it is important due to IPEDS reporting).

(5) Projects

PC Bus Unit/Project/Activity/Analysis Type are always required for project costs.

(6)  Staff Months

Every transfer of salary expenditures requires staff months as well.  Enter SMO in the ‘Stat’ field and the totally number of staff months in the ‘Stat Amt’ field.

DO NOT enter staff month in lines with asset, liability, revenue or equity accounts!

DO enter staff months in journals only with salaries and wages accounts (5000010 through 5000190 and 5081012 through 5081019)!

40.90.70.4 Calculating Staff Months for Transfers

Staff month calculations in HCM vary depending on the employee type (e.g. faculty, administrative), employee payment type (e.g. salaried, hourly, contract).  For the purposes of transfers, colleges should simply prorate the staff months based on the proration of the salary transfers.  If an employee was charged 100% to a single fund and 50% of the salary costs are being transferred to another fund, 50% of the staff months should be transferred as well.

40.90.80.1 Shared Leave Laws and Rules

State law allows a state employee to come to the aid of another state employee who is likely to take leave without pay or terminate his or her employment because the employee suffers from, or has a relative or household member suffering from, an illness, injury, impairment, or physical or mental condition which is of an extraordinary severe nature; is a victim of domestic violence, sexual assault or stalking; needs the time for parental leave; or they employee is sick or temporarily disabled because of pregnancy disability.

Certain current or former members of uniformed services may also be eligible for donated shared leave.

Donating employees must maintain at least 40 hours of annual leave and 176 hours of sick leave after donation.

Donating employees who only receive sick leave, must maintain at least 22 days of sick leave after donation.

40.90.80.1.a Shared Leave Use

Colleges/state agencies must track shared leave used over the state career of the recipient employee (donee). Employees may receive no more than 522 days of shared leave for their entire state employment (tracking normally an HR function).

Employees who have received shared leave must use all compensatory time, recognition leave, and personal holiday leave they have accrued before using shared leave.

Exception: Employees may retain 40 hours of vacation leave as well as 40 hours of sick leave in reserve while using shared leave.

40.90.80.1.b College Participation

Colleges should develop policies and procedures to establish the college’s participation in the shared leave program. For example, some colleges only allowed shared leave within the college.

40.90.80.2 Shared Leave Calculations

40.90.80.2.a Donor Calculations

When a college employee donates shared leave, the college must calculate the full value of the hours donated, including benefits (total salary rate). Some colleges include the leave accrual benefit rate in the total salary rate.

Calculate the dollar value of donated leave using the donor’s total current total salary rate times the hours donated.

In transferring leave from the donor to the donee, it is the donor’s dollar value of the leave that transfers and purchases shared leave for the donee at the donee’s total salary rate.

40.90.80.2.b Recipient (Donee) Calculations

When a college employee receives shared leave, the college must calculate the full hourly cost including benefits (total salary rate) of the donee. Some colleges include the leave accrual benefit rate in the total salary rate.

In transferring leave from the donor to the donee, it is the donor’s dollar value of the leave that transfers and purchases shared leave for the donee at the donee’s total salary rate.

Calculate the dollar value of donated leave using the donor’s total current total salary rate times the hours donated.

For the donee, divide the dollar value received by the donee’s total current salary rate to determine the leave hours to record.

40.90.80.2.c Total Salary Rate Calculations

For an example and template for calculating and tracking leave used see the Shared Leave Workbook (add link).

Calculate Total Salary Benefit Rate

Determine most recent full monthly salary rate (all accounts 5000010 - 5000120 and 5000180 - 5000190 for donating employee).

Determine most recent monthly benefit costs (all accounts beginning 501 for donating employee):

¹ Use of full-month benefits is necessary since health benefits are paid only once each month.

Complex alternative-text: Calculate Total Salary Benefit Rate

¹ Use of full-month benefits is necessary since health benefits are paid only once each month.

Leave Benefit Rate (Optional, based on College CBA)

Not all agencies and colleges include leave benefits in the benefit rate calculation; however:

• Determine the number of holidays, sick leave, and vacation leave days an employee could potentially earn while on shared leave and convert to hours.
• Divide the hours determined above by the annual hours worked. The state of Washington defines an FTE as 2088 hours. College collective bargaining agreements may use different hours to define an FTE.

 

Complex alternative text: Calculate Leave Benefit Rate (Optional, based on College CBA)

* Assuming 2088 hours. Adjust for CBA hours.

**X Assuming 8 hours per day. Adjust for CBA hours/day.

Total Benefit Rate (including leave)

40.90.80.2.d Total Salary Rate

To determine the total salary rate for both donor and done, multiply the hourly rate times the benefit factor (choose regular benefit factor or full benefit, depending on college policy).

The total salary rate can also be calculated by dividing the total monthly cost (salary and benefits) by the standard monthly hours.

In this example, multiplying $52.71 times 1.30 results in a full salary rate of $68.69.  The same result can be achieved by dividing full monthly costs ($11,951.73) by the standard hours worked in a month (174).

Calculate Total Salary Rate

Complex alternative text:  Calculate Total Salary Rate

40.90.80.2.e Value of Donated Leave

In transferring leave from the donor to the donee, it is the donor’s dollar value of the leave that transfers and purchases shared leave at the donee’s salary rate.

Calculate the dollar value of donated leave using the donor’s total current salary rate times the hours donated.

Calculating Value of Leave Donated by Employee (Donor)

40.90.80.2.f Donee Leave Purchased

When transferring leave from the donor to the donee, it is the donor’s dollar value of the leave that is transferred and purchases shared leave for the donee at the donee’s salary/benefit rate.

Calculating Hours of Donated Leave for Receiving Employee (Donee)

 

 

40.90.90.1  Within College as Used

The donee’s pay period salary is recorded as usual in HCM, debiting expenses and crediting liabilities. When payment is made, the liabilities are debited and cash is credited.

To reflect the use of shared, the following entry should be made for total payroll costs (salary and benefits) in the donee’s full chartstring(s):

• Debit 1000199 Internal Cash
• Credit 5010130 Shared Leave Received

In the donor’s chartstring the following entries should be made:

Debit 5010100          Shared Leave Donated – SL

5010110 or               Shared Leave Donated – PH

5010120 or               Shared Leave Donated – AL

Credit 1000199                           Internal Cash

40.90.90.2 Within College as Received

40.90.90.2.a Recording Receipt of Shared Leave Funds

In the donor’s chartstring the following entries should be made for the full value of the donation:

Debit 5010100          Shared Leave Donated – SL

5010110 or               Shared Leave Donated – PH

5010120 or               Shared Leave Donated – AL

Credit 1000199                           Internal Cash

In 790-285-98439 the following entry (equal to the above entry) should be recorded:

Debit 1000199          Internal Cash

Credit 5081020         Intra Agency Transfer Benefits

40.90.90.2.b Recording Use of Shared Leave Funds

The donee’s pay period salary is recorded as usual in HCM, debiting expenses and crediting liabilities. When payment is made, the liabilities are debited, and cash is credited.

To reflect the use of shared, the following entry should be made for total payroll costs (salary and benefits) in the donee’s full chartstring(s):

Debit 1000199 Internal Cash

Credit 5010130 Shared Leave Received

And in 790-285-98439 the following entry (equal to the above entry) should be recorded:

Credit 5081020 Intra Agency Transfer Benefits

Debit 1000199          Internal Cash

40.90.90.2.c Returning Unused Shared Leave Funds within College

When not all shared leave is needed, the balance should be returned to the donor. To return the following entries should be recorded:

To reflect the use of shared leave, the following entry should be made for total payroll costs (salary and benefits) in the donee’s full chartstring(s):

Since the original receipt of shared leave funds were recorded in 790-285-98439 and dispersed to the donee’s chartsring, the following entry should be recorded to return the funds:

Credit 5081020 Intra Agency Transfer Benefits

Debit 1000199 Internal Cash

40.90.90.3 Shared Leave Between Colleges/Agencies

40.90.90.3.a Recording Payment of Shared Leave Funds

If a college employee donates shared leave to another college or agency, the following entries should be recorded in the donor’s chartstring(s) for the full value of the donation:

Debit 5010100          Shared Leave Donated – SL

5010110 or               Shared Leave Donated – PH

5010120 or               Shared Leave Donated – AL

Credit 1000070                           Cash in Bank

40.90.90.3.b Recording Shared Leave As Received

The receiving college should record the following entry in 790-285-98439:

Debit 1000070          Cash in Bank

Credit 5010130         Shared Leave Received

40.90.90.3.c Recording Use of Shared Leave Funds

The donee’s pay period salary is recorded as usual in HCM, debiting expenses and crediting liabilities. When payment is made, the liabilities are debited, and cash is credited.

To reflect the use of shared leave, the following entry should be made for total payroll costs (salary and benefits) in the donee’s full chartstring(s):

Debit 1000199 Internal Cash

Credit 5010130 Shared Leave Received

And in 790-285-98439 the following entry (equal to the above entry) should be recorded:

Debit 5010130 Shared Leave Received

Credit 1000199         Internal Cash

40.90.90.3.d Returning Unused Shared Leave Funds

When not all shared leave is needed, the balance should be returned to the donor. To return the following entries should be recorded:

To reflect the use of shared leave, the following entry should be made for total payroll costs (salary and benefits) in the donee’s full chartstring(s):

Since the original receipt of shared leave funds were recorded in 790-285-98439 and dispersed to the donee’s chartsring, the following entry should be recorded to return the funds:

Debit 5010130  Shared Leave Received

Credit 1000070         Cash in Bank