Business Procedures Manual

Essential business procedural components for University System of Georgia institutions.

5.3.1 Method of Payment for Compensation and Expense Reimbursement

(Last Modified on September 9, 2011)

New and Rehired Employees

Electronic funds transfer is the required method of payroll payments to employees. All newly hired or rehired employees on or after July 1, 2011 are required to enroll in direct deposit within thirty (30) days of hire or rehire and remain enrolled in direct deposit for the remainder of their employment. Institutions with procedures to issue the final payment to an employee leaving employment by paper check may continue that process. In addition, there may be unique situations where the institution may need to make payments via paper check (i.e., first payment for a new employee, off-cycle payments, etc.) or when the institution has determined that paper checks are the most cost-effective and efficient method of paying an employee or a group of employees. Newly hired or rehired employees will be required to sign the “Direct Deposit Notification Form,” indicating their understanding and compliance with the direct deposit policy. Any such employee who does not complete the appropriate direct deposit information within (30) days of hire or rehire, and who is not granted an exemption as provided for herein, may be subject to dismissal.

Current Employees

All employees employed prior to July 1, 2011 receiving their pay by direct deposit or pay card will continue those processes. No action is required on their part. All employees employed prior to July 1, 2011 who are receiving their pay by paper check will be required to enroll in direct deposit by completing a “Direct Deposit Authorization Form,” unless granted an exemption as provided for herein. The deadline for current employees to enroll in direct deposit or apply for an exemption is October 1, 2011. Once enrolled in direct deposit, employees are required to remain enrolled in direct deposit for the remainder of their employment.

Exemption Process

An employee may be exempted from participating in direct deposit if he/she does not have an account at an eligible financial institution, and further provides evidence that he/she cannot obtain an account at an eligible financial institution.

The institution’s Chief Business Officer (or his/her designee) has exclusive authority to grant any exemption from the direct deposit requirement. An exemption may be granted only for the reason stated above (i.e., unable to acquire an account at a financial institution) or other specific situations that the institution’s Chief Business Officer (or his/her designee) may deem to be an extreme hardship. An employee desiring to request an exemption from the direct deposit requirement will do so by completing a “Direct Deposit Personal Exemption Request Form.” The exemption should be documented and maintained for future review as needed for auditing purposes.

In addition, the Chief Business Officer (or his/her designee) may exempt an employee, or category of employees, from participating in direct deposit if the institution determines it is more cost effective and efficient to issue paper checks. Documentation of this determination should be maintained for future review as needed for auditing purposes.

Pay Card Process

Employees that are granted an exemption from direct deposit will be paid in the form of a pay card, if that option is available at the institution.

Paper Check Process

Employees that are granted an exemption from participating in direct deposit, and are employed at institutions where the pay card option is not available, will receive a paper check. Any employee receiving pay by paper check will be responsible for notifying their payroll provider of address changes using the electronic, self-service method at their institution, or in writing if an electronic method is not available. If a paper paycheck is printed at the institution, the institution may select a method of distribution other than mailing if the alternate method is deemed to be more efficient and cost effective.


5.3.2 Extra Compensation

(Last Modified on December 22, 2010)

Extra compensation may be paid to employees for tasks performed after normal business hours for duties not included in the employee’s normal job responsibilities, provided the following three criteria are met:

  1. The tasks must be outside of the employee’s regular department.

  2. The Departmental Agreement Form, must be completed and signed by the appropriate department heads.   Departmental Agreement Form

  3. The employee must meet at least one of the criteria listed below (Criteria from the Official Code of Georgia Annotated Section 45-10-25):

    • Chaplain
    • Fireman
    • Dentist
    • Certified Oral or Manual Interpreter for Deaf Persons
    • Registered Nurse
    • Licensed Practical Nurse
    • Psychologist
    • Teacher or Instructor of an evening or night course or program
    • Professional holding a doctoral or masters degree from an accredited college or university
    • Part-time employee

Also, an employee meeting all three criteria listed above may be paid extra compensation for a task for another department during normal job hours if the task is not part of the employee’s normal job responsibilities, and the employee takes annual leave for the portion of time that is being used for the task receiving extra compensation.

Employees that have been determined by the institution to be non-exempt, as defined by the Fair Labor Standards Act (FLSA), and are performing extra duties could qualify for overtime pay. Non-exempt employees should be paid at least the overtime rate or more.

Examples of situations justifying the payment of extra compensation are:

  • An employee teaching a continuing education course after hours or while taking annual leave, when teaching the course is not part of the employee’s normal job responsibilities.

    Note: This is allowable under the Official Code of Georgia Annotated Section 45-10-25, No. 15.

  • A part-time public safety officer working extra hours to referee a ball game.

    Note: Georgia Code 45-10-25 does not apply to part time employees.

  • A staff member with a masters degree doing web design for another department.

    Note: This is allowable if the required Departmental Agreement Form is completed and signed by the appropriate department heads.

In addition, the Official Code of Georgia Annotated Section 45-10-25, No. 10, allows for an exemption for an emergency situation that must be made to protect the health, safety, or welfare of any citizens or property of Georgia.

Under no circumstances should an employee receive extra compensation for a task while receiving normal compensation for the same time period. Extra compensation does not add to earnings used for retirement calculations, and no retirement deductions are taken from extra compensation pay.

Employees receiving extra compensation shall be paid said extra compensation through the institutional payroll. Such compensation shall be subject to existing Internal Revenue Service regulations as to taxability and/or withholding taxes. No compensation, as defined above and paid to employees who are on the institutional payroll, shall be paid as per diem and fees or as stipends.


5.3.3 Dual Appointment

(Last Modified on September 9, 2016)

As stated in the Dual Appointment Section of the University System of Georgia Human Resources Administrative Policy Library (HRAP), the employment of staff, faculty, and students by two or more institutions within the University System of Georgia (USG) during the same period of time is a recognized method of keeping costs to a minimum and maximizing resource utilization across the USG. Note: Previously Dual Appointment was commonly referred to as Joint Employment.

The HRAP contains definitions that are applicable to dual appointment.

An employee should be paid only for employment services by one institution within the University System of Georgia (USG) to help ensure compliance with Federal and State laws. In addition, all institutions in the USG are considered related entities and a common paymaster should be applied as defined in O.C.G.A. 34-8-27. Likewise, an employee should be paid travel expenses by only one institution within the USG. Therefore, the employee’s home institution will pay the employee for all employment services, and related travel expenses, provided to any USG institution.

For the payment of dual appointment earnings, institutions should utilize the following designated dual appointment earnings codes and related account codes:

     
DFR Faculty, retirement eligible Account 516200
DF Faculty, non-retirement eligible Account 516250
DSR Staff, retirement eligible Account 526200
DSN Staff, non-retirement eligible Account 526250
DOT Nonexempt Staff Overtime, non-pensionable Account 522805

The Dual Appointment Agreement facilitates the flow of information to involved parties and the review and approval of dual appointment details between the employee’s home institution and the Requesting institution. The Dual Appointment Agreement is required to be completed prior to the work initiating.

Each institution receiving employment services of the employee and incurring travel expenses for the employee should budget its share of the employee’s time (EFT) and dollars.

Account 539100 is the dual appointment/shared employee faculty salary account and Account 539200 is the dual appointment/shared employee staff salary account. These accounts should be utilized to record the expense at the Requesting Institution and the contra expense at the Home Institution. The net of the balances in this account across the institutions should be zero. These accounts should not be reported on the Transparency in Government Act (TIGA) annual report (formerly known as Continuous Audit report).

Account 558539 is the dual appointment/shared employee fringe account that should be utilized to record the expense at the Requesting Institution and the contra expense at the Home Institution. The net of the balances in this account across the institutions should be zero.

If travel expenses are related to the dual appointment services, account 641539 is the dual appointment/ shared employee travel account that should be utilized to record the expense at the Requesting Institution and the contra expense at the Home Institution. The net of the balances in this account across the institutions should be zero. This account should not be reported on the Transparency in Government Act (TIGA) annual report (formerly known as Continuous Audit report).

Dual Appointment Accounting

Scenario 1: Ongoing Dual appointment [Shared Employee] (Total of time limited to 100%) - No Travel
Institution A employs Mr. Smith at a salary of $60,000 per annum. An agreement is reached between Institution A and Institution B to have Mr. Smith teach one course for a semester at Institution B, with the remaining course load being taught at Institution A, his Home Institution. One course is determined to be 1/3 of Mr. Smith’s full time commitment. Therefore, 1/3 of Mr. Smith’s salary is to be reimbursed by institution B, the Requesting Institution.

Journal Entries
Trans # Institution Description Account Debit Credit
1 Home Institution Record the monthly personal services expenses at Institution A as normal, utilizing REG earnings code. (Note: For ease of presentation, the example does not include employee pay deductions.)      
    Faculty Salary Expense 511100 6,000.00
    FICA Employer Expense 551100 372.00
    FICA Medicare Employer Expense 551200 87.00
    TRS Expense 552100 540.00
    Health Ins. Expense 553118 150.00
    Basic Life Ins. Expense 553201 25.00
    Various Employer Payroll Liability Accounts 23xxxx   1,174.00
    Payroll Cash Account 1185xx   6,000.00
2 Home Institution Record the amount due from the Requesting Institution as an AR. In this example, assume that 1/3 of the costs will be recovered from the Requesting Institution.      
    AR-Other 127101 2,391.33  
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100   2,000.00
    Dual Appointment/Borrowed Services Fringe Expense 558539   391.33
3 Requesting Institution Record the payment to the Home Institution in response to a billing in accordance with the Dual Appointment Agreement      
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100 2,000.00  
    Dual Appointment/Borrowed Services Fringe Expense 558539 391.33  
    Operating Cash Account 118100   2,391.33
4 Home Institution Record the receipt of the payment from the Requesting Institution      
    Operating Cash Account 118100 2,391.33  
    AR-Other 127101   2,391.33
Summary of JEs Impact
Accounts Home Institution Requesting Institution Net Across Institutions
Total Cash Accounts -4,782.67 -2,391.33 -7,174.00
AR-Other 0.00 0.00 0.00
Total Salary Expense 6,000.00 0.00 6,000.00
Total Fringe Expense 1,174.00 0.00 1,174.00
Total Dual Appointment/Borrowed Services Faculty Salary Expense -2,000.00 2,000.00 0.00
Total Dual Appointment/Borrowed Services Fringe Expense -391.33 391.33 0.00

Scenario 2: Ongoing Dual appointment [Shared Employee] (Total of time limited to 100%) - With Travel
Institution A employs Mr. Smith at a salary of $60,000 per annum. An agreement is reached between Institution A and Institution B to have Mr. Smith teach one course for a semester at Institution B, with the remaining course load being taught at Institution A, his Home Institution. One course is determined to be 1/3 of Mr. Smith’s full time commitment. Therefore, 1/3 of Mr. Smith’s salary is to be reimbursed by institution B, the Requesting Institution.

Travel expenses are included in the Joint Staffing Agreement. Institution A pays Mr. Smith’s travel and invoices Institution B for reimbursement.

Journal Entries
Trans # Institution Description Account Debit Credit
1 Home Institution Record the monthly personal services expenses at Institution A as normal, utilizing REG earnings code. (Note: For ease of presentation, the example does not include employee pay deductions.)      
    Faculty Salary Expense 511100 6,000.00  
    FICA Employer Expense 551100 372.00  
    FICA Medicare Employer Expense 551200 87.00  
    TRS Expense 552100 540.00  
    Health Ins. Expense 553118 150.00  
    Basic Life Ins. Expense 553201 25.00  
    Various Employer Payroll Liability Accounts 23xxxx   1,174.00
    Payroll Cash Account 1185xx   6,000.00
2 Home Institution Record the travel expenses paid to employee as normal.      
    Travel – Employee Mileage 641510 100.00  
    Operating Cash Account 118100   100.00
3 Home Institution Record the amount due from the Requesting Institution as an AR. In this example, assume that 1/3 of the personal services costs and all of the travel costs will be recovered from the Requesting Institution.      
    AR-Other 127101 2,491.33  
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100   2,000.00
    Dual Appointment/Borrowed Services Fringe Expense 558539   391.33
    Dual Appointment/Borrowed Services Travel Expense 641539   100.00
4 Requesting Institution Record the payment to the Home Institution in response to a billing in accordance with the Dual appointment Agreement Form      
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100 2,000.00  
    Dual Appointment/Borrowed Services Fringe Expense 558539 391.33  
    Dual Appointment/Borrowed Services Travel Expense 641539 100.00  
    Operating Cash Account 118100   2,491.33
5 Home Institution Record the receipt of the payment from the Requesting Institution      
    Operating Cash Account 118100   2,491.33
    AR-Other 127101   2,491.33
Summary of JEs Impact
Accounts Home Institution Requesting Institution Net Across Institutions
Total Cash Accounts -4,782.67 -2,491.33 -7,274.00
AR-Other 0.00 0.00 0.00
Total Salary Expense 6,000.00 0.00 6,000.00
Total Fringe Expense 1,174.00 0.00 1,174.00
Total Dual Appointment/Borrowed Services Salary Expense -2,000.00 2,000.00 0.00
Total Dual Appointment/Borrowed Services Fringe Expense -391.33 391.33 0.00
Total Employee Travel Expense 100.0 0.00 100.00
Total Dual Appointment/Borrowed Services Travel Expense –100.00 100.00 0.00

Scenario 3: Occasional Dual Appointment (Total of time greater than 100%) - Earnings from Institution B are Retirement Eligible - No Travel
Institution A employs Mr. Smith at a salary of $60,000 per annum. An agreement is reached between Institution A and Institution B to have Mr. Smith teach an additional course for a semester at Institution B, while continuing to teach his full course load at Institution A. Therefore, Institution B will reimburse Institution A, the Home Institution, for Mr. Smith’s salaries over and above his original budgeted salary. In this example, a contract addendum has been completed and Mr. Smith’s pay is considered Supplemental, Retirement Eligible.

Journal Entries
Trans # Institution Description Account Debit Credit
1 Home Institution Record the monthly personal services expenses at Institution A as normal, utilizing REG earnings code and DFR earnings code. (Note: For ease of presentation, the example does not include employee pay deductions.)      
    Faculty Salary Expense 511100 6,000.00  
    Faculty Supplemental Pay Retirement Eligible 516200 3,000.00  
    FICA Employer Expense 551100 558.00  
    FICA Medicare Employer Expense 551200 130.50  
    TRS Expense 552100 810.00  
    Health Ins. Expense 553118 150.00  
    Basic Life Ins. Expense 553201 25.00  
    Various Employer Payroll Liability Accounts 23xxxx   1,673.50
    Payroll Cash Account 1185xx   9,000.00
2 Home Institution Record the amount due from the Requesting Institution as an AR. In this example, $3,000 salary plus applicable FICA, Medicare, and TRS, will be recovered from the Requesting Institution.      
    AR-Other 127101 3,499.50  
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100   3,000.00
    Dual Appointment/Borrowed Services Fringe Expense 558539   499.50
3 Requesting Institution Record the payment to the Home Institution in response to a billing in accordance with the Dual Appointment/Borrowed Services Agreement Form      
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100 3,000.00  
    Dual Appointment/Borrowed Services Fringe Expense 558539   499.50
    Operating Cash Account 118100   3,499.50
4 Home Institution Record the receipt of the payment from the Requesting Institution      
    Operating Cash Account 118100 3,499.50  
    AR-Other 127101   3,499.50
Summary of JEs Impact
Accounts Home Institution Requesting Institution Net Across Institutions
Total Cash Accounts -7,174.00 -3,499.50 -10,673.50
AR-Other 0.00 0.00 0.00
Total Salary Expense 9,000.00 0.00 9,000.00
Total Fringe Expense 1,163.50 0.00 1,163.50
Total Dual Appointment/Borrowed Services Salary Expense -3,000.00 3,000.00 0.00
Total Dual Appointment/Borrowed Services Fringe Expense -499.50 499.50 0.00

Scenario 4: Occasional Dual Appointment (Total of time greater than 100%) - Earnings from Institution B are Retirement Eligible - With Travel
Institution A employs Mr. Smith at a salary of $60,000 per annum. An agreement is reached between Institution A and Institution B to have Mr. Smith teach an additional course for a semester for $3,000 at Institution B, while continuing to teach his full course load at Institution A. Therefore, Institution B will reimburse Institution A, the Home Institution, for Mr. Smith’s salaries over and above his full time salary. In this example, a contract addendum has been completed and Mr. Smith’s pay is considered Supplemental, Retirement Eligible.

Travel expenses are included in the Dual Appointment Agreement. Institution A pays Mr. Smith’s travel and invoices Institution B for reimbursement.

Journal Entries
Trans # Institution Description Account Debit Credit
1 Home Institution Record the monthly personal services expenses at Institution A as normal, utilizing REG earnings code and DFR earnings code. (Note: For ease of presentation, the example does not include employee pay deductions.)      
    Faculty Salary Expense 511100 6,000.00  
    Faculty Supplemental Pay Retirement Eligible 516200 3,000.00  
    FICA Employer Expense 551100 558.00  
    FICA Medicare Employer Expense 551200 130.50  
    TRS Expense 552100 810.00  
    Health Ins. Expense 553118 150.00  
    Basic Life Ins. Expense 553201 25.00  
    Various Employer Payroll Liability Accounts 23xxxx   1,673.50
    Payroll Cash Account 1185xx   9,000.00
2 Home Institution Record the travel expenses paid to employee as normal.      
    Travel – Employee Mileage 641510 100.00  
    Operating Cash Account 118100   100.00
3 Home Institution Record the amount due from the Requesting Institution as an AR. In this example, $3,000 plus applicable FICA, Medicare and TRS, and the travel costs will be recovered from the Requesting Institution.      
    AR-Other 127101 3,599.50  
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100   3,000.00
    Dual Appointment/Borrowed Services Fringe Expense 558539   499.50
    Dual Appointment/Borrowed Services Travel Expense 641539   100.00
4 Requesting Institution Record the payment to the Home Institution in response to a billing in accordance with the Dual Appointment Agreement Form      
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100 3,000.00  
    Dual Appointment/Borrowed Services Fringe Expense 558539 499.50  
    Dual Appointment/Borrowed Services Travel Expense 641539 100.00  
    Operating Cash Account 118100   3,599.50
5 Home Institution Record the receipt of the payment from the Requesting Institution      
    Operating Cash Account 118100 3,599.50  
    AR-Other 127101   3,599.50
Summary of JEs Impact
Accounts Home Institution Requesting Institution Net Across Institutions
Total Cash Accounts -7,174.00 -3,599.50 -10,773.50
AR-Other 0.00 0.00 0.00
Total Salary Expense 9,000.00 0.00 9,000.00
Total Fringe Expense 1,673.50 0.00 1,673.50
Total Dual Appointment/Borrowed Services Salary Expense -3,000.00 3,000.00 0.00
Total Dual Appointment/Borrowed Services Fringe Expense -499.50 499.50 0.00
Total Employee Travel Expense 100.00 0.00 100.00
Total Dual Appointment/Borrowed Services Travel Expense -100.00 100.00 0.00

Scenario 5: Occasional Dual Appointment (Total of time greater than 100%) - Earnings from Institution B are not Retirement Eligible - No Travel
Institution A employs Mr. Smith at a salary of $60,000 per annum. An agreement is reached between Institution A and Institution B to have Mr. Smith teach a course for a semester at Institution B, while continuing to perform his regular duties as a professional staff member at Institution A. Therefore, Institution B will reimburse Institution A, the Home Institution, for Mr. Smith’s salaries over and above his original budgeted salary. In this example, Mr. Smith’s pay is considered Supplemental, Non-Retirement Eligible.

Note that because Institution A classifies Mr. Smith as a Staff employee, Institution A uses account 539200-Joint Employment Staff salaries. Since Mr. Smith is performing in the capacity of a faculty member at Institution B, the correct account for Institution B to record the joint employment salary expense is account 539100-Joint Employment Faculty salaries. This is the exception to the typical situation in the previous examples where Joint Staffing salary accounts (539xxx) net to zero across institutions.

Journal Entries
Trans # Institution Description Account Debit Credit
1 Home Institution Record the monthly personal services expenses at Institution A as normal, utilizing REG earnings code and DSN earnings code. (Note: For ease of presentation, the example does not include employee pay deductions.)      
    Professional Staff Salary Expense 521100 6,000.00  
    Staff Supplemental Pay Non-Retirement Eligible 526250 3,000.00  
    FICA Employer Expense 551100 558.00  
    FICA Medicare Employer Expense 551200 130.50  
    TRS Expense 552100 540.00  
    Health Ins. Expense 553118 150.00  
    Basic Life Ins. Expense 553201 25.00  
    Various Employer Payroll Liability Accounts 23xxxx   1,403.50
    Payroll Cash Account 1185xx   9,000.00
2 Home Institution Record the amount due from the Requesting Institution as an AR. In this example, $3,000 salary plus applicable FICA and Medicare will be recovered from the Requesting Institution.      
    AR-Other 127101 3,229.50  
    Dual Appointment/Borrowed Services Staff Salary Expense 539200   3,000.00
    Dual Appointment/Borrowed Services Fringe Expense 558539   229.50
3 Requesting Institution Record the payment to the Home Institution in response to a billing in accordance with the Dual Appointment Agreement Form      
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100 3,000.00  
    Dual Appointment/Borrowed Services Fringe Expense 558539 229.50  
    Operating Cash Account 118100   3,229.50
4 Home Institution Record the receipt of the payment from the Requesting Institution      
    Operating Cash Account 118100 3,229.50  
    AR-Other 127101   3,229.50
Summary of JEs Impact
Accounts Home Institution Requesting Institution Net Across Institutions
Total Cash Accounts -7,174.00 -3,229.50 -10,403.50
AR-Other 0.00 0.00 0.00
Total Salary Expense 9,000.00 0.00 9,000.00
Total Fringe Expense 1,403.50 0.00 1,403.50
Total Dual Appointment/Borrowed Services Faculty Salary Expense   3,000.00 3,000.00
Total Dual Appointment/Borrowed Services Staff Salary Expense -3,000.00   -3,000.00
Total Dual Appointment/Borrowed Services Fringe Expense -229.50 229.50 0.00

Scenario 6: Occasional Dual Appointment (Total of time greater than 100%) - Earnings from Institution B are not Retirement Eligible - With Travel
Institution A employs Mr. Smith at a salary of $60,000 per annum. An agreement is reached between Institution A and Institution B to have Mr. Smith teach a course for a semester at Institution B, while continuing to perform his regular duties as a professional staff member at Institution A. Therefore, Institution B will reimburse Institution A, the Home Institution, for Mr. Smith’s salaries over and above his original budgeted salary. In this example, Mr. Smith’s pay is considered Supplemental, Non-Retirement Eligible.

Travel expenses are included in the Dual Appointment Agreement. Institution A pays Mr. Smith’s travel and invoices Institution B for reimbursement.

Note that because Institution A classifies Mr. Smith as a Staff employee, Institution A uses account 539200-Joint Employment Staff salaries. Since Mr. Smith is performing in the capacity of a faculty member at Institution B, the correct account for Institution B to record the joint employment salary expense is account 539100-Joint Employment Faculty salaries. This is the exception to the typical situation in the previous examples where Joint Staffing salary accounts (539xxx) net to zero across institutions.

Journal Entries
Trans # Institution Description Account Debit Credit
1 Home Institution Record the monthly personal services expenses at Institution A as normal, utilizing REG earnings code and DSN earnings code. (Note: For ease of presentation, the example does not include employee pay deductions.)      
    Professional Staff Salary Expense 521100 6,000.00  
    Staff Supplemental Pay Non-Retirement Eligible 526250 3,000.00  
    FICA Employer Expense 551100 558.00  
    FICA Medicare Employer Expense 551200 130.50  
    TRS Expense 552100 540.00  
    Health Ins. Expense 553118 150.00  
    Basic Life Ins. Expense 553201 25.00  
    Various Employer Payroll Liability Accounts 23xxxx   1,403.50
    Payroll Cash Account 1185xx   9,000.00
2 Home Institution Record the travel expenses paid to employee as normal.      
    Travel – Employee Mileage 641510 100.00  
    Operating Cash Account 118100   100.00
3 Home Institution Record the amount due from the Requesting Institution as an AR. In this example, $3,000 plus applicable FICA and Medicare, and the travel costs will be recovered from the Requesting Institution.      
    AR-Other 127101 3,329.50  
    Dual Appointment/Borrowed Services Staff Salary Expense 539200   3,000.00
    Dual Appointment/Borrowed Services Fringe Expense 558539   229.50
    Dual Appointment/Borrowed Services Travel Expense 641539   100.00
4 Requesting Institution Record the payment to the Home Institution in response to a billing in accordance with the Dual Appointment Agreement Form      
    Dual Appointment/Borrowed Services Faculty Salary Expense 539100 3,000.00  
    Dual Appointment/Borrowed Services Fringe Expense 558539 229.50  
    Dual Appointment/Borrowed Services Travel Expense 641539 100.00  
    Operating Cash Account 118100   3,329.50
5 Home Institution Record the receipt of the payment from the Requesting Institution      
    Operating Cash Account 118100 3,329.50  
    AR-Other 127101   3,329.50
Summary of JEs Impact
Accounts Home Institution Requesting Institution Net Across Institutions
Total Cash Accounts -7,174.00 -3,329.50 -10,503.50
AR-Other 0.00 0.00 0.00
Total Salary Expense 9,000.00 0.00 9,000.00
Total Fringe Expense 1,403.50 0.00 1,403.50
Total Dual Appointment/Borrowed Services Faculty Salary Expense   3,000.00 3,000.00
Total Dual Appointment/Borrowed Services Staff Salary Expense -3,000.00 0.00 -3,000.00
Total Dual Appointment/Borrowed Services Fringe Expense -229.50 229.50 0.00
Total Employee Travel Expense 100.00 0.00 100.00
Total Dual Appointment/Borrowed Services Travel Expense -100.00 100.00 0.00

Scenario 7: Occasional Dual Appointment – non-exempt employee (Total of time greater than 100%) - Earnings from Institution B are not Retirement Eligible - With Travel
Institution A employs Mr. Smith at a rate of $15 per hour in a non-exempt position. An agreement is reached between Institution A and Institution B to have Mr. Smith perform duties at Institution B, while continuing to perform his regular duties at Institution A. Therefore, Institution B will reimburse Institution A, the Home Institution, for Mr. Smith’s wages earned at Institution B. In this example, Mr. Smith’s pay is considered Overtime, Non-Retirement Eligible.

Travel expenses are included in the Dual Appointment Agreement. Institution A pays Mr. Smith’s travel and invoices Institution B for reimbursement.

Journal Entries
Trans # Institution Description Account Debit Credit
1 Home Institution Record the personal services expenses at Institution A as normal, utilizing DOT earnings code for hours for Institution B. (Note: For ease of presentation, the example does not include employee pay deductions.)      
    Staff Salary Expense 522100 1,200.00  
    Staff Overtime Pay Non-Retirement Eligible 522805 450.00  
    FICA Employer Expense 551100 102.30  
    FICA Medicare Employer Expense 551200 23.93  
    TRS Expense 552100 108.00  
    Health Ins. Expense 553118 150.00  
    Basic Life Ins. Expense 553201 25.00  
    Various Employer Payroll Liability Accounts 23xxxx   409.23
    Payroll Cash Account 1185xx   1,650.00
2 Home Institution Record the travel expenses paid to employee as normal.      
    Travel – Employee Mileage 641510 100.00  
    Operating Cash Account 118100   100.00
3 Home Institution Record the amount due from the Requesting Institution as an AR. In this example, $450 plus applicable FICA and Medicare, and the travel costs will be recovered from the Requesting Institution.      
    AR-Other 127101 584.43  
    Dual Appointment/Borrowed Services Staff Salary Expense 539200   450.00
    Dual Appointment/Borrowed Services Fringe Expense 558539   34.43
    Dual Appointment/Borrowed Services Travel Expense 641539   100.00
4 Requesting Institution Record the payment to the Home Institution in response to a billing in accordance with the Dual Appointment Agreement Form      
    Dual Appointment/Borrowed Services Staff Salary Expense 539200 450.00  
    Dual Appointment/Borrowed Services Fringe Expense 558539 34.43  
    Dual Appointment/Borrowed Services Travel Expense 641539 100.00  
    Operating Cash Account 118100   584.43
5 Home Institution Record the receipt of the payment from the Requesting Institution      
    Operating Cash Account 118100 584.43  
    AR-Other 127101   584.43
Summary of JEs Impact
Accounts Home Institution Requesting Institution Net Across Institutions
Total Cash Accounts -1,574.80 -584.43 -2,159.23
AR-Other 0.00 0.00 0.00
Total Salary Expense 1,650.00 0.00 1,650.00
Total Fringe Expense 409.23 0.00 409.23
Total Dual Appointment/Borrowed Services Staff Salary Expense -450.00 450.00 0.00
Total Dual Appointment/Borrowed Services Fringe Expense -34.43 34.43 0.00
Total Employee Travel Expense 100.00 0.00 100.00
Total Dual Appointment/Borrowed Services Travel Expense -100.00 100.00 0.00

5.3.4 Limitation of Summer Faculty Pay

(Last Modified on October 12, 2010)

A faculty member teaching on a 10 month contract may receive payment for teaching summer session courses in addition to the payment received for the 10 month contract. Such payment for teaching summer session courses may not exceed 33 1/3 % of the 10 month contract amount for the previous academic year.


5.3.5 Salary Expense Charges for Summer Session Payroll Expenses

(Last Modified on October 12, 2010)

To provide management information about the cost of operations of summer sessions, pay for teaching summer session courses will be charged to Account Code 513000 titled “Salaries-Summer Faculty”. The cost of fringe benefits will be charged to the normal account codes for fringe benefits, same as normal salary fringe benefits.


5.3.6 Overtime and Compensatory Time

(Last Modified on November 8, 2010)

The standard workweek in the University System is forty (40) hours. Institutions are expected to abide by the provisions of the Fair Labor Standards Act. The distribution of hours throughout the week is a scheduling decision left to the individual institutions.

Overtime work shall be authorized for employees who are not exempt from the provisions of the Fair Labor Standards Act only when the work is deemed necessary by the president or a designated representative. Payment for overtime work will be made in accordance with the Fair Labor Standards Act.

Compensatory time may be granted in lieu of payment for approved overtime work at the rate of one and one-half hours of compensatory time for each hour of overtime work. Approved compensatory time is subject to a maximum accumulation of sixty (60) hours and must be expended by the end of the succeeding calendar quarter.


5.3.7 Relocation Expenses

(Last Modified on October 12, 2010)

An institution is permitted to pay relocation expenses of a specific amount that is set out in the original written offer of employment. “Original written offer” is emphasized because any post-offer negotiated amounts will be considered a violation of the Gratuities clause of the Constitution of the State of Georgia.

Each institution that intends to pay relocation expenses should adopt written procedures, approved by the institution President, governing the practice. These procedures should reflect at a minimum:

  • Budget constraints at the institution, with the maximum amount of relocation expenses that can be offered to a prospective employee;
  • Specific positions or levels of positions that are eligible for payment of relocation expenses;
  • Tax implications under IRS regulations;
    • Note: See IRS Publication 521 for moving/relocation taxation rules.
  • Permitted expenses;
  • Prohibited expenses;
    • For example, institutions should not end up owning someone’s home in another location.
  • Method of payment; and,
  • Recordkeeping.

If the method of payment in the written policy is directly to vendors on behalf of the employee, all State of Georgia purchasing regulations apply. For example, moving company expenses exceeding $5,000 must be competitively bid.

Using the same example of moving company expenses exceeding $5,000 related to employee reimbursement as the method of payment, employees are required to obtain three (3) quotes and to submit the quotes to the institution as evidence that the company providing the lowest quote was selected.

Relocation expenses, if part of an institution’s approved procedures, that are generally not subject to tax withholding are:

  • Moving household goods and personal effects, and
  • Traveling, including lodging but not meals, from the employee’s former home to the new home by the shortest and most direct route.

These reimbursements are fringe benefits excludable from the employee’s income as qualified moving expense reimbursements. The institution should report these reimbursements in box 12 on the employee’s Form W-2.

In general, all other relocation expenses reimbursed to an employee or paid on behalf of an employee are subject to tax withholding and reported as taxable wages in box 1 of Form W-2. For complete rules regarding Relocation expense tax implications, see IRS Publication 521.

Relocation expenses are not subject to Continuous Audit reporting and should be reported in account 565xxx, Relocation Expense, for GAAP reporting.


(Last Modified on September 9, 2011)

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