Business Procedures Manual

Essential business procedural components for University System of Georgia institutions.

5.2 Taxes

(Last Modified on January 23, 2018)

Operations of the University System of Georgia’s employee compensation system(s) must conform to state and federal laws, and to policies of the Board of Regents. Topics in this section have been developed from all of the sources listed above.

The USG Shared Services Center’s (SSC) OneUSG Connect Standard Operating Procedures (SOP) provides detailed procedures, process flows, job aids and other supporting documentation for the OneUSG Connect solution. The SOP is accessible from the SSC’s website.

A Supplement to Section 5.0 provides procedures for USG institutions supported by the SSC utilizing the non-OneUSG Connect solution. These procedures distinguish duties and responsibilities between the SSC and institutions. If a specific procedure is not addressed in the Supplement, these institutions should utilize the guidance provided in this section. This supplement will not be applicable once all institutions have transferred to the OneUSG Connect solution.

(Last Modified on January 23, 2018)

Section 8 of the BOR Policy Manual provides information regarding benefits offered to employee, retirees and/or dependents. The Human Resources Administrative Practice Manual (HRAP) and the Academic and Student Affairs Handbook provide additional information relative to benefits.

5.1.1 Benefits Eligibility Dates

(Last Modified on January 23, 2018)

5.1.1.1 Benefits Effective Date

The Employee Benefits & Services section of the HRAP manual provides guidance relative to the effective date of benefits. Beginning July 1, 2017, the benefits effective date is based on hire date. Benefits will become effective on the first day of the month following hire date, unless an employee is hired on the first of the month; then benefits are effective on the date of hire (i.e. first day of the month), regardless of the enrollment date. Employees have 30 days from their hire date to enroll in benefits except for Regents’ Optional Retirement Plan (ORP) and Teachers Retirement System (TRS), which have 60 day enrollment periods.

Refer to BPM Section 5.1.6 Retirement Plan Participation for effective date of retirement plans.

5.1.1.2 Benefits Termination Date(s) and Final Benefits Payment Method(s)

A terminating employee receiving benefits will continue to receive the benefits until the last day of the month which contains their termination date. The employee is responsible for the employee’s share of the cost of the benefits for the entire month.

If an academic year contract employee transfers between USG institutions without a break in service other than the normal summer semester break, the employee’s benefits will continue at the initial institution through July and will begin on August 1st at the new institution. This will provide the employee with the same summer benefit coverage as if the employee was returning to the initial institution for the next academic year.

If an employee elects to terminate after tax benefit(s), outside of the regularly scheduled open enrollment period, the after tax benefit(s) will be effective until the last day of the month in which the employee elects to terminate the after tax benefit(s).

The payment for the final month’s benefit coverage will be withheld from the employee’s last check. If the employee’s last check is insufficient to cover the cost of the benefits, the benefits will be deducted from the employee’s vacation pay out check. If the employee’s final check and/or vacation pay out check is/are insufficient to cover the final month’s benefits, the employee should pay for the final month’s benefits prior to or on the final work day.

If an employee’s final check and/or vacation pay out check is insufficient to pay premiums due and the employee has not paid the amount due by the final day of work, the balance owed is to be recorded as an accounts receivable due from the terminating employee and should be handled in accordance with the institution’s collection process.

5.1.1.3 Qualifying Life Event and Administrative Event Documentation

Qualifying Life Events
Employees/retirees are not allowed to change benefit elections during the plan year except for those experiencing a Qualifying Life Event. The OneUSG Connect third party benefits administration vendor is responsible for monitoring and communicating eligible Qualifying Life Events. Verification documents are required for qualifying life events. Additional information concerning qualifying events may be obtained from the OneUSG Connect third party benefits administration vendor and the SSC.

Administrative (Data Driven) Events
In addition to Qualifying Life Events, administrative (data driven) events may initiate benefit changes. The OneUSG Connect third party benefits administration vendor is responsible for monitoring and communicating eligible Administrative Events. Some of these events require verification documents. Additional information concerning administrative events may be obtained from the OneUSG Connect third party benefits administration vendor and the SSC.

Dependent Eligibility Documentation
The HRAP manual’s Employee Benefits & Services Group Health Insurance for Dependents section provides guidance regarding the OneUSG Connect third party benefits administration vendor’s requirement to obtain and validate documents for dependent eligibility.

Verification Documents
Verification documents are required to confirm certain qualifying life events and administrative events. The HRAP manual’s Employee Benefits & Services Group Health Insurance for Dependents – Appendix 1 lists the documents required. Verification documents include, but are not limited to the following:

  • Certified Birth Certificate
  • Recorded Marriage License
  • Copy of Adoption Papers with Court Seals
  • Copy of Guardianship Papers with Court Seals
  • Written Approval of Disability Status.

In accordance with the HRAP manual’s section on Employee Benefits & Services - Group Health Insurance for Dependents, eligibility verification documents must be provided to the OneUSG Connect third party benefits administration vendor within 45 days of the hire date, or within 45 days of a qualified family status change affecting dependent(s) eligibility during the open enrollment period.

Document Retention
Supporting documentation for Qualifying Life Events should be retained by the OneUSG third party benefits administration vendor in accordance with the USG records retention requirements.


5.1.2 Leave Accrual

(Last Modified on January 23, 2018)

Section 8.2.7.1 of the BOR Policy Manual establishes the accrual rates for vacation/annual leave.

Section 8.2.7.2 of the BOR Policy Manual establishes the accrual rates for sick leave.

Academic year faculty members are allowed to accrue sick leave during the period of their contract. Sick leave is accrued at the rate of 8 hours per month worked.

For OneUSG Connect institutions, the OneUSG Connect system is the system of record for leave accruals and usage. Leave eligible employees will accrue (earn) leave for the month if they are active on the 15th of the month. The accrued leave will be awarded on the 1st day of the following month. Accrued leave hours may not be used retroactively for absences that occurred prior to the award date. If an employee begins work with the USG after the 15th of the month, the employee will not accrue (earn) leave for the initial partial month of employment.

For OneUSG Connect institutions, the leave accrual for regular employees who are employed at least half time but less than full-time is prorated based upon the standard hours on the employee’s “Job record” in the OneUSG Connect system. The proration is based on the number of standard hours divided by 40, then multiplied by the accrual rate as established in Sections 8.2.7.1 and 8.2.7.2 of the BOR Policy Manual.

Example: An employee with 7 years of service whose standard hours are 30 would receive a monthly vacation/annual leave accrual of 9 hours and a sick leave of accrual of 6 hours. (30 standard hours/40 * 12 hours [full accrual rate for years of service] = 9; 30 standard hours/40 * 8 = 6)

5.1.2.1 Leave Accrual for Summer Faculty

The Time Away from Work section of the HRAP manual states that an academic year-contract faculty member teaching during the summer months, may be eligible to accrue sick leave. The sick leave accrual is to be prorated based on the amount of time worked during the summer. This section of the HRAP manual also provides examples of the proration calculation. If a faculty member is employed during the summer to perform non-teaching duties, a determination of the amount of the work commitment should be made to facilitate the appropriate sick leave accrual.

5.1.2.2 Leave Usage

BOR leave policies are addressed in Section 8.2.7 of the BOR Policy Manual.

For OneUSG Connect institutions, the OneUSG Connect system is the system of record for leave usage. Leave usage must be recorded in the OneUSG Connect system as an absence request for a specific type of leave. An absence request may be a regular request or an extended request.

Regular absence requests are made for vacation/annual leave, comp time usage, sick leave for less than 6 consecutive days, sick-bereavement leave, blood donation leave, education support leave, intermittent FMLA, floating holidays, jury duty leave and voting leave.

Extended absences requests are made for sick leave greater than 5 consecutive days (medical non FMLA), FMLA, bone marrow leave, educational or professional development leave, military leave, organ donation leave, personal (unpaid) leave or workers compensation leave.

Employees should reference Section 8.2.7 of the BOR Policy Manual and the Time Away from Work section of HRAP manual for available leave options and eligibility.

For OneUSG Connect institutions, each institution should have a designated leave administrator to review extended leave of absence requests and coordinate the leave details with the employee and the employee’s supervisor(s).

Access to the OneUSG Connect system, for employees approved for extended leave of absences, should be reviewed to ensure proper access during the extended leave of absence. (See BPM Section 5.6.1 Data Access and Segregation of Duties)

For OneUSG Connect institutions, if the absence request, regular or extended, is approved and the employee’s leave balance for the requested leave type is insufficient to cover the request, the employee will not receive compensation for the hours not covered by the employee’s available leave balance. The OneUSG Connect system will use cascading leave rules, which allow leave requests to access multiple leave balances prior to the leave becoming uncompensated. Cascading leave rules determine the order in which the available leave balances are utilized when an employee requests an absence from a leave category with no available balance. For example, if an employee requests sick leave and does not have sick leave available, the system will check the employee’s other available leave balances in a pre-determined order and apply the absence accordingly. If an employee is not eligible for the next leave type identified by the cascade effect, the system will automatically move to the next available leave type in the order specified.

The OneUSG Connect cascading order for regular leave absences are:

Sick Leave, Sick – Bereavement, and FMLA Intermittent Absence Request:
1. Sick
2. Comp time
3. Deferred Holiday
4. Annual Leave
5. Unscheduled Holiday

Annual Leave Absence Request:
1. Comp time
2. Deferred Holiday
3. Annual Leave
4. Unscheduled Holiday

The cascade order for extended leave absences is:

Sick (Medical/Non FMLA) or FMLA and Workers Comp:
1. Sick
2. Comp time
3. Deferred Holiday
4. Annual Leave
5. Unscheduled Holiday

Note: For extended leaves, the leave administrator may approve different cascade order if necessary.


5.1.3 Vacation Payout

(Last Modified on January 23, 2018)

Section 8.2.7.1, Vacation/Annual Leave, of the BOR Policy Manual establishes the eligibility of employees to accrue (earn) vacation/annual leave as well as the requirements for the payment of the accrued vacation leave to an employee.

The following 3 events trigger the payment of the accrued vacation leave to an employee:

  1. Faculty member changes from a fiscal year contract to an academic year contract.
  2. Employee terminates employment with the institution.
  3. Employee transfers with no break in service to another USG institution and elects to receive payment for vacation leave in excess of 20 days (160 hours).

An institution shall never pay an employee for vacation leave in excess of 360 hours.

The payment of the accrued vacation leave (vacation payout – VPO) should be disbursed separately from, and after the payment of the final work-hours payment, with limited exceptions. The final work-hours payment is the regularly scheduled payment that includes the employee’s last work day.

Allowable exceptions include employees that work in a state where state regulations require the VPO payment to be made earlier than the final work-hours check and an employee transferring between USG institutions where the transferring employee requests payment for the accrued amount in excess of 160 hours. The State of Georgia does not require the payment of accrued vacation leave with the final work-hours payment. Please consult with the SSC for assistance in determining if earlier payment is necessary relative to other state regulations.

The institution’s Chief Human Resources Officer (CHRO) shall have the authority to approve additional exceptions to allow VPO payouts on the final work-hours check or by an off-cycle check.

The VPO check should be scheduled for the subsequent pay day for the employee after the final work-hours payment. The delay of the payment for accrued leave allows time for validation of the employee’s leave usage for the final pay period and the awarding of the leave for the final month of employment. If the subsequent pay day is not after the 1st of the next month, an adjustment for the final accrual may be necessary.

If an employee has not exceeded the maximum contribution limits for the various supplemental retirement savings plans that are available to him/her, it is acceptable for a contribution to be made from the VPO check. The employee should check with their tax adviser regarding supplemental retirement savings plan contribution limits.

If an employee is funded by a grant or contract, the grant or contract must be reviewed to determine if a VPO payout is an allowable expense. If not, the VPO should be made from an alternative funding source.


5.1.4 Withholding Schedule for Academic Year Employees

(Last Modified on January 23, 2018)

Academic year employees (10 month employees) are considered full-time employees, and they receive benefits for the summer, based upon the assumption that their employment will be renewed for the next academic year. For academic year employees paid over a 10 month period, payroll deductions for fringe benefits must aggregate 12 months of deductions within a 10 month salary delivery period. Normally, a contract/academic year employment begins in August and ends in May, with benefits continuing during June and July if the employment is renewed for the next academic year.

If an academic year employee terminates employment with the USG at the end of the academic year (May), benefit deductions for the months of June and July should be refunded to the employee. Health and dental benefits would then be available under COBRA. If an academic year employee is transferring to another USG institution, the employee’s benefits will continue at the initial institution through July and will begin on August 1 with the new institution. Only when their employment is scheduled for renewal for the next academic year is the employee allowed to continue benefits during the months of June and July.

The utilization of a common benefit deduction schedule by all institutions is desirable so that all academic year employees are treated equally. This deduction schedule should also allow for ease of calculations in the case of faculty members who teach one semester and do not return for the second semester, and allow for an annual increase in costs that normally occurs at the beginning of the calendar year. All institutions that have implemented the OneUSG Connect system will utilize the same deduction schedule.

The following deduction schedule is utilized by the systems supported by SSC. This schedule provides for 12 months of benefit deductions in a 10 month period ending at the end of the academic year in May. The deduction schedule properly calculates the correct deductions based on actual time worked by a faculty member that does not return for the second semester. It provides for a new benefit calculation period beginning January 1st to accommodate any rate changes.

The deduction amount for the months of August through December will be:
(1/12) multiplied by (5/5) multiplied by the annual deduction amount.

The deduction amount for the months of January through May will be:
(1/12) multiplied by (7/5) multiplied by the annual deduction amount.




5.1.5 COBRA

(Last Modified on January 23, 2018)

Under the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA), employees or dependents enrolled in a health or dental plan who experience a qualifying event, which subsequently results in loss of coverage, will become COBRA qualified beneficiaries. The employees or dependents have the option of continuing coverage under the University System of Georgia Board of Regents plan(s).

The USG has contracted with a third party benefits administration vendor to administer COBRA.

Qualifying Event and Continuation of Coverage

The following events qualify an eligible employee for continued coverage for up to eighteen (18) months:

  • Separation from employment for reasons other than gross misconduct or
  • Reduction of work hours to a benefits ineligible status.

Note: If a COBRA eligible employee is disabled (as provided by Title II or XVI of the Social Security Act) within sixty (60) days of either of the above qualifying events, the employee may continue coverage for an additional eleven (11) months if they are continuously disabled.

The following events qualify an employee’s spouse and dependent(s) for continued coverage for up to thirty-six (36) months:

  • Death of employee,
  • Divorce or legal separation, or
  • Loss of a child’s dependent status by the child reaching age 26.

Notification Requirements

Terms, conditions, and costs for coverage must be communicated to the eligible parties via notification letters.

Employee Responsibilities

In the event of a divorce, legal separation, or loss of a child’s dependent status, the employee or dependent(s) must notify the OneUSG Connect Benefits Call Center or update their status in the OneUSG Connect Benefits website within sixty (60) days of the event. Failure to provide timely notice of the occurrence of a qualifying event will result in the loss of the right to elect to continue medical coverage under COBRA.

Supervisor / Departmental Responsibilities

In the event of an employee’s death, separation from employment or reduction of hours to a benefits ineligible position, the department shall immediately advise their institution’s Office of Human Resources of the change in status.

Institution Office of Human Resources Responsibilities

Upon receiving notice of a qualifying event, the employer must enter the appropriate status in their payroll system in a timely manner in order for the third party benefits administration vendor to be notified.

OneUSG Benefits Administration Vendor

Upon receiving the qualifying event or change in status from an employee or the institution’s Office of Human Resources, the OneUSG benefits administration vendor will provide all required COBRA notifications to the employee, employee’s spouse and/or dependent(s).

Premium Payments

Once COBRA has been elected, the OneUSG benefits administration vendor bills and receives premiums from the COBRA participants and monitors payments to determine if coverage should be terminated due to non-payment. Payment must be made within forty-five (45) days of the election and premiums must be made on a monthly basis. A person who elects coverage under COBRA is responsible for paying the full premium amount plus an additional two percent (2%) COBRA administration fee.

The option of direct debit shall be offered to all USG employees or dependents eligible to become COBRA qualified beneficiaries and who elect continuing coverage under USG’s health and/or dental insurance coverage.

Coverage Duration

As noted above, an election of COBRA must be made within sixty (60) days of the employee’s termination or the qualifying event. COBRA coverage begins on the day that coverage would have otherwise been lost because of a qualifying event.

COBRA coverage will end:

  • On the last day of the maximum coverage period,
  • If premiums are 30 days delinquent,
  • If coverage is obtained with another employer group health plan,
  • If the covered person becomes entitled to Medicare,
  • Or if other COBRA regulations apply.

5.1.6 Retirement Plan Participation

(Last Modified on January 23, 2018)

University System of Georgia employees, based upon eligibility, may participate in one of the following retirement plans:

     Teachers Retirement System of Georgia (TRS)
     Employees’ Retirement System of Georgia (ERS)
     Regents’ Optional Retirement Plan (ORP)
     Georgia Defined Contribution Plan (GDCP)

Section 8.2.8 provides of the BOR Policy Manual states that “it is the policy of the Board of Regents to provide for the retirement of all eligible employees, either through the Teachers Retirement System of Georgia (TRSGA) or the Regents Retirement Plan (ORP)”. Employees who transfer to the USG from another State Agency have the option of remaining with ERS.

The USG’s HRAP Retirement Plan Participation section provides additional guidance on employee’s eligibility for TRS, ORP, ERS and GDCP.

The Georgia Defined Contribution Plan was created to provide a retirement plan for temporary, seasonal and part-time employees. However, employees that are classified as student employees in accordance with IRS student exclusion criteria, and employees who are active in or retired from TRS, ERS, LRS (Legislative Retirement System) or JRS (Georgia Judicial Retirement System) are excluded from participation. http://www.ers.ga.gov/plans/gdcp/gdcpmain.html Employees participating in GDCP are exempt from contributing to Social Security. However, they are required to contribute to Medicare.

ORP retirees who return to work in a position that is covered under a Section 218 agreement are excluded from participation in GDCP and are covered for Social Security and Medicare due to the Social Security Retired Annuitant rule.

Certain eligible employees who are at least age 60 at the time they become employed in a TRS eligible position may decline membership in TRS within the initial 90 days of employment. TRS members may elect to discontinue contributions to TRS after obtaining 40 years of service, as 40 years is the maximum number of years for which retirement earnings may be calculated.

All employees, except for those identified by the exclusions noted above, should be enrolled in a retirement plan from the first day of employment. However, new employees that are eligible to participate in the ORP have sixty (60) days from the first day of employment to select their ORP provider per the ORP plan documents. ORP eligible employees may elect to participate in TRS (as opposed to ORP) prior to the end of the 60 day window. The ORP plan documents also state that the employee electing to participate in ORP will begin their enrollment the first day of the payroll period following the day of election. Therefore, employees electing to participate in ORP, based upon their election date, may not be a retirement plan participant beginning on the first day of employment.

Employees that have the option to participate in ORP, and do not make the election prior to the 61st day of employment, will be enrolled in TRS retroactive to their employment date. The retroactive employee and employer contributions should be submitted to TRS in the next monthly reporting cycle. The recommendation is that the full amount be deducted from the first payroll processed after the 61st day of employment.

If contributions to a retirement plan are missed, the correction and submission of the missed contributions should be made in accordance with the specific plan’s rules and regulations as well as tax rules and regulations. The OneUSG Connect SOP provide detailed documentation on handling of missed contributions which institutional HR practitioners should utilize for these corrections and submissions.

Each retirement plan (TRS, ERS, ORP or GDCP) has its unique definitions relative to “pensionable earnings” which are subject to retirement calculations. The retirement plan provider has the final determination as to whether earnings are pensionable. The OneUSG Connect SOP provide more detailed information regarding whether compensation is pensionable.

5.1.6.1 Teachers Retirement System (TRS) Reporting

The Teachers Retirement System (TRS) establishes reporting requirements for institutions with participating employees.

The USG SSC coordinates the submission of the monthly participant data file(s) and contributions for the institutions it supports. The “Common Remitter” processes are utilized for these submissions and are documented in the OneUSG Connect SOP. The specific data fields included in the file are specified by TRS, as is the method for transferring the funds to TRS.

Institutions are required to submit sick leave certifications after a retiree’s last day of work.

5.1.6.2 Employees’ Retirement System (ERS) Reporting

The Employees’ Retirement System (ERS) establishes reporting requirements for institutions with participating employees.

The SSC coordinates the submission of the monthly participant data file(s) and contributions for the institutions it supports. The “Common Remitter” processes are utilized for these submissions and are documented in the OneUSG Connect SOP. The specific data fields included in the file are specified by ERS, as is the method for transferring the funds to ERS.

ERS retirees earn service time for forfeited sick and annual leave. The last employer is responsible for the certification and payment for the cost of service for all accumulated forfeited leave. The cost of the forfeited leave service is calculated utilizing the following:

  • member’s salary at retirement,
  • employer contribution rate at retirement, and
  • months of service earned for the forfeited leave

Institutions are required to submit a preliminary certification of the member’s forfeited leave at retirement. After the retiree’s retirement date, the institution is required to submit a final leave certification and the payment of the member’s final cost of forfeited leave service. The SSC reports forfeited leave monthly as part of the “Common Remitter” process for the institutions it supports.

5.1.6.3 Optional Retirement Plan (ORP) Reporting

The USG administrators the plan and utilizes third party vendors to manage the assets of the Optional Retirement Plan (ORP). The USG coordinates with these vendors to determine the reporting requirements.

The SSC coordinates the submission of the monthly participant data file(s) and contributions for the institutions it supports. The “Common Remitter” processes are utilized for these submissions and are documented in the SSC SOP. The specific data fields included in the file are specified by the ORP vendors, as is the method for transferring the funds to the vendor.

5.1.6.4 Georgia Defined Contribution Plan (GDCP) Reporting

The Georgia Defined Contribution Plan (GDCP) is administered by the Employees’ Retirement System of Georgia (ERS). Employees’ Retirement System (ERS) establishes reporting requirements for institutions with participating employees.

The SSC coordinates the submission of the monthly participant data file(s) and contributions for the institutions it supports. The “Common Remitter” processes are utilized for these submissions and are documented in the SSC SOP. The specific data fields included in the file are specified by ERS, as is the method for transferring the funds to the vendor.


5.1.7 Retiree Benefits

(Last Modified on January 23, 2018)

Section 8.2.8 of the BOR Policy Manual provides policies defining USG retirement eligibility and retiree benefits (health, dental, and supplemental life insurance plans) eligibility.

5.1.7.1 Method of Payment for Retiree Benefits

Section 7.5.1.1 of the BOR Policy Manual provides that electronic withdrawal of funds (auto debit) is the required method of payment by retirees to the USG for benefit premiums. Payments should be electronically withdrawn from an account at a depository institution that is designated by the retiree. The withdrawal should be initiated by the USG, an institution within the USG, or by a third party contracted by the USG to bill and collect retiree benefit premiums. The withdrawal will occur on a specified date each month. The usage of electronic payments avoids the need for submission and processing of a paper check for retiree benefit premiums. The retiree’s authorization to process the auto debit must be obtained utilizing an Auto Debit Authorization Form (or a similarly named form or process).

If a retiree is unable to obtain a bank account that allows for auto debit, the retiree may request an exemption from the auto debit requirement by contacting SSC. If SSC determines that an alternative method of payment is appropriate, final approval must be obtained from the USG System Office.

5.1.7.2 Discontinuing Benefits for Retired Employees

Retiree coverage under the basic and dependent life, health, and dental benefits plans can be discontinued under one of three scenarios: at the request of the retiree, due to nonpayment of premiums, or at the death of the retiree.

  1. If a retiree requests to discontinue his/her coverage, the institution should ensure premiums have been paid through the agreed-upon date. Otherwise, the account should be paid in full prior to ending the relationship with the retiree. In some instances, dependents of the retiree who were also covered may be eligible to continue coverage under COBRA. In those situations, COBRA paperwork will be generated and forwarded to the dependents.

  2. A retiree whose coverage is discontinued due to nonpayment of premiums should be notified at least twice of the impending cancellation. The first notification may be either oral or written. The second notification must be in writing. If the retiree is not responsive, the coverage should be canceled and the account referred to collections.

  3. Upon the death of a retiree, life insurance benefits must be paid. In the event of an employee’s death, Section 8.2.9.3 of the BOR Policy Manual, provides that a deceased employees’ dependents shall remain eligible to continue participating in the group health insurance program. The USG shall continue to pay the employer portion of the cost of the group health insurance for the surviving dependents. If the deceased retiree participated in the dependent life insurance program while in active service, his/her dependents shall remain eligible to continue participating in this program as well. The surviving dependents will be responsible for the entire cost of the dependent life insurance. In no event shall the spouse of the deceased employee be allowed to continue participation in these benefit programs after remarriage. Dependent children may remain in these benefit programs until they reach the legal age of majority, or until they become eligible for another group benefits plan, whichever comes first.

5.1.7.3 Retiree Billing

The USG has contracted with a third party vendor to provide retiree benefits billing and collections. The third party vendor remits the collected funds to the institutions monthly.

The third party vendor notifies the retiree and the USG of premiums that are 30 days past due and for which benefits termination is imminent. The third party vendor will terminate the retiree’s coverage due to non-payment if a retiree/dependent is delinquent 30 days, unless notice to not terminate is received from the SSC. The SSC will coordinate with the institutions regarding coverage that will not be terminated.

When a retiree and/or dependent become 65 years of age, the USG health insurance coverage ends and the retiree will no longer pay health insurance premiums to the USG via the contracted third party retiree billing provider. At that time, in order to continue participating in USG health benefits, the retiree must enroll in a plan on the Retiree Health Exchange. If the retiree elects to participate, the retiree will pay premiums to the third party insurance plan provider. The retiree may still pay premiums to the third party retiree billing provider for other benefits such as dental insurance or life insurance.

For retirees who enroll in a plan through the Retiree Health Exchange, the USG will fund a health reimbursement account (HRA), in an annually specified amount approved by the BOR that will be available for reimbursement to the retiree for premiums and/or other eligible medical costs.


5.1.8 Leave of Absence (LOA) Benefits Billing

(Last Modified on January 23, 2018)

If an employee is approved for an unpaid leave of absence (LOA), the employee shall be placed in the appropriate leave status, and the employee is responsible for paying the employee share of premiums for any eligible benefits during the LOA. Dependent upon the type of leave, the employee may also be responsible for the employer cost of eligible benefits.

The employee should be billed for these benefits during the LOA. If payment is not made, the employee’s benefits should be terminated.

The third party benefits administration vendor will bill employees for continuing benefits while the employee is on LOA. The benefits administrator’s billing will begin on the first of the month following the effective date of the LOA. During the initial month of leave, the institution will process the payroll deductions for premiums. If the employee’s wages are insufficient to cover the premiums during this initial month, the institution will deduct the premiums from the employee’s check upon return to work. For institutions that have a payroll system that utilizes arrears, the deduction should go into arrears.

The third party vendor’s billing will end on the first of the month following the effective date of the end of the LOA. Payroll deductions will not occur during the month the employee’s LOA ends (unless the employee returns on the 1st). The employee should pay the third party vendor for the premiums for the month when the employee returns to work.

For employees on an academic year contract, during the months of January through May the premiums include an accrual to cover premiums for June and July. If an employee, subject to the summer premium accrual (7/5th), is on LOA during this period, the employee should be billed at the rate that includes the summer accrual amount. Any previously paid summer premium accruals will remain on the employee’s record and will be utilized to cover the premiums for the summer. Therefore, the employee would not be billed during June and July. If the employee terminates while on leave, any accrued summer premiums will be refunded to the employee by the institution.


(Last Modified on October 12, 2010)

Institutions of the University System of Georgia must conform to applicable state and federal regulations concerning timely remission of various employee deductions and employer matching funds. This section provides a brief overview of these requirements.

Note: If the applicable agency changes the requirements before this manual can be amended, the institutions are expected to comply with the new requirements.

5.2.1 Submission of Georgia Withholding Amounts

(Last Modified on December 22, 2010)

To determine the schedule for withholding tax deposits, the Georgia Department of Revenue (DOR) requires an analysis of the previous amounts withheld in a lookback period of July 1st through June 30th.

  1. If the taxes withheld during the lookback period are greater than $50,000, then the employer is defined as a “Semi-Weekly Payer” and the taxes must be remitted via electronic funds transfer (EFT) on the next following Wednesday or Friday. Refer to the DOR website for exact details/schedule.

    Form G-7 is a quarterly return that provides a recap of monthly amounts remitted along with a method adjusting monthly totals if required. Form G-7/ Schedule B must be filed on or before the last day of the month following the end of the quarter.   Georgia Form G7 Quarterly Return

  2. If the taxes withheld during the lookback period are less than $50,000 in total but greater than $200 per month, then the employer is defined as a “Monthly Payer” and the taxes must be remitted on or before the 15th day of the following month with Form GA-V. Form G-7 must be filed on or before the last day of the month following the end of the quarter.

    Form GA-V is a payment coupon used for remitting the taxes. It is used when taxes are not submitted via EFT.   Georgia Form GA-V

Note 1: A registration process must be completed with the DOR before beginning electronic funds transfers. Contact the Georgia Department of Revenue, Income Tax Division, for further information and the Registration Authorization Form.

Note 2: Additional schedules are provided for smaller payroll totals, but are not likely to apply to any USG institutions. Therefore, they are not provided here.

Note 3: One additional rule requires the taxes be deposited the next banking day after payday if the amount withheld equals or exceeds $100,000.

Note 4: It is mandatory for institutions that are currently required to submit tax payments via electronic funds transfer to file their returns electronically. The Department of Revenue has instituted its new e-File and e-Pay systems to facilitate this.

Additional information may be obtained at: https://gaefile.dor.ga.gov/AUT/welcome.aspx


5.2.2 Submission of Federal Withholding Taxes and OASDI and FICA/Medicare Taxes

(Last Modified on November 8, 2010)

The federal government requires submission of taxes withheld along with employer matching amounts either monthly or within three (3) banking days, depending upon the amount of taxes deposited during a 12-month “lookback” period.

Generally, if you reported more than $50,000.00 in taxes in the previous period of July 1st through June 30th, then you are required to deposit the taxes within 3 banking days of the payroll. There is also a “$100,000.00 next-day deposit rule” that requires a next day deposit when a tax liability of $100,000.00 or more is accumulated during a deposit period.

Consult “Circular E, Employer’s Tax Guide” published by the Department of the Treasury, Internal Revenue Service, for additional information.

Deposits Using Electronic Deposits

Institutions must make electronic deposits of all depository taxes using the Electronic Federal Tax Payment System (EFTPS) if:

  1. The total deposits of such taxes in the calendar year two years previous were more than $200,000; or,
  2. The institution was required to use EFTPS last calendar year.

For further information or to enroll in EFTPS, visit the EFTPS Web Site at www.eftps.gov.

Deposits Using Federal Tax Deposit Coupons

Those institutions not required to deposit via electronic deposits should utilize Form 8109, Federal Tax Deposit Coupon, to make the deposits at an authorized financial institution. The IRS will supply preprinted 8109 forms containing the institutions’ name, address, and Employer Identification Number. Entry boxes are provided for indicating the type of tax and the tax period for which the deposit is made. Follow the instructions in the Federal Tax Deposit Coupon book, make the check payable to the financial institution taking the tax deposit, and deliver the coupon with payment check to the financial institution on or before the deposit due date and before the financial institution’s daily cutoff deadline.

Note: Form 8109 can be found at: http://www.irs.gov/pub/irs-pdf/f8109b.pdf. IRS 8109 form (copy)


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.


5.4.1 Georgia State Department of Labor

(Last Modified on July 5, 2012)

Reporting to the Georgia State Department of Labor consists of a quarterly listing of employees with salary for the quarter. The listing is produced by the institution’s payroll system. This listing includes all employees except for student employees, excluding student assistants and College Work Study Program employees.

Although the quarterly listings are recapped on Department of Labor forms that were intended for collecting unemployment taxes, the University System of Georgia does not pay state unemployment tax. Instead of being taxed on payroll totals, the University System of Georgia is on a “reimbursable basis”. This means that we pay for claims incurred.

On the Department of Labor “Employer’s Quarterly Tax and Wage Report”, simply report 0.00 for the tax due*. The Department of Administrative Services (DOAS) bills each institution annually, usually in August or September. The institutions remit payments directly to the Department of Labor when paying the invoices. This report is due on the last working day of the month following the end of the calendar quarter.


5.4.2 IRS 941

(Last Modified on October 12, 2010)

The federal Employer’s Quarterly Federal Tax Return (IRS941) is submitted quarterly. The reporting form captures the number of employees in a certain pay period, total wages/tips/compensation, total income tax withheld, and calculates the amount of Social Security tax and Medicare tax. It also provides a reconciliation between total taxes due and the tax deposits made for each of the three months being reported. The reporting form is due on the last working day of the month following the end of the calendar quarter.


5.4.3 IRS W-2 & W-3

(Last Modified on October 12, 2010)

Federal Form W-2 must be completed and furnished to employees by the last working day of January. The W-2 information for employees must be submitted electronically to the Social Security Administration. This electronic submission also includes the summary data previously included on paper form W-3 (Transmittal of Wage and Tax Statements). The deadline for electronic submission is the last working day of March.

Note: A PIN and password are required before the data can be submitted electronically. The PIN and password may be obtained from www.ssa.gov/employer by selecting Business Services Online and then selecting Register. The PIN remains active for the following year, but the password must be updated before the next year to keep the PIN active. After submission of data, this same web site provides the ability to check the processing and acceptance of the data submitted.


5.4.4 Georgia Department of Revenue Annual Reporting

(Last Modified on October 12, 2010)

Instructions for annual reporting will be provided to each institution by the Georgia Department of Revenue. Annual reporting is accomplished on magnetic media, currently using a diskette. The institution’s payroll system is used to format the file before it is copied to diskette. The data file includes all of the data previously contained on transmittal form G-1003, such as total wages, tax withheld total, and reporting form type (W-2). The diskette is mailed to the Georgia Department of Revenue.

Note: No paper reporting is required in addition to the diskette.


5.4.5 Teachers Retirement System (TRS)

(Last Modified on February 9, 2015)

See Section 5.1.6, Teachers Retirement System Reporting and Deduction Remittance, for reporting requirements for the Teachers Retirement System.


5.4.6 Employee Retirement System (ERS) and Georgia Defined Contributions (GA DefCon)

(Last Modified on February 9, 2015)

See Section 5.1.6, Employees Retirement Reporting and Deduction Remittance and Georgia Defined Contributions Reporting and Deduction Remittance, for reporting requirements for the Employees Retirement System and the Georgia Defined Contributions.


5.4.7 Department of Audits and Accounts – Continuous Audit/Payroll

(Last Modified on July 5, 2012)

The Department of Audits and Accounts is charged by state law to compile annual listings of:

  1. Salary Amounts and Travel Amounts for State Employees; and
  2. Amounts paid for “Per Diem and Fees” to corporations or to individuals that are not State Employees.

These reports are submitted on an annual basis after the close of the fiscal year. Although the reports are submitted annually, the University System of Georgia requires each of its units to produce printed reports quarterly, and to reconcile each of these reports to the cumulative balances maintained for the respective account codes in the General Ledger of the financial system. For the quarterly reconciliations and for the annual report, the printed reports should be retained at the institution along with supporting documentation detailing the reconciliation to the balances contained in the General Ledger.

The actual annual reports to the Department of Audits and Accounts are submitted as data files transmitted electronically. The due date for these reports and the file requirements are contained in the instructions provided by the Department of Audits and Accounts each year. An example of the letter containing this information is shown below:

Letter from Dept. of Audits and Accounts

The file requirements for these reports are contained in the Enclosure that accompanies this letter.

During the Audit or Review conducted by the Department of Audits and Accounts at each institution, these reports will be verified back to totals from the General Ledger.


(Last Modified on October 12, 2010)

IRS regulations make it imperative that the University System of Georgia provides guidelines for determining whether certain personal service arrangements create an employer/employee or an independent contractor relationship. This has significance in that the institution is responsible for the payment and/or withholding of federal and state unemployment taxes, FICA, and income taxes for those individuals where an employee/employer relationship exists. Independent contractors are responsible for their own liabilities.

5.5.1 Factors in Determining Whether a Person is considered an Employee or Independent Contractor un

(Last Modified on October 12, 2010)

FACTOR EMPLOYEE INDEPENDENT CONTRACTOR
Instructions Compliance with time, place, and manner Controls the time, place, and manner
Training Employer provides Contractor provides
Integration Service as a part of Business Not a part of Business
Service Rendered Personally Service rendered personally May be delegated or contracted
Hiring, Supervising, and Paying Assistants Employer provides Contractor provides
Continuing Relationship Ongoing, repetitive Sporadic, uncertain of future benefit
Hours of Work Employer sets Contractor sets
Full-Time Required Restricted to primary employer Services offered to others
Premises Employer provides Contractor provides
Order of Sequence Employer sets sequence of work Contractor controls when work is performed
Oral/Written Reports Employer requires on a periodic basis Not required to submit oral or written reports except as part of contract
Payment by the Hour, Week, Month, or Completion Periodic payments Payment upon commission basis
Business/Travel Expense Employer provides Payment on job basis – included as part of contract
Furnishing Tools/Materials Employer provides Contractor provides
Significant Investment Very little of own capital Provides own capital
Profit/Loss Not realized Realizes own profit/loss
Working for More than One Firm at a Time Limited primarily to employer Offers services to others
Offering Services to General Public Limited primarily to employer Offers services to general public
Right to Discharge May be terminated Remedies under contract law
Right to Terminate Employer has very limited liability in termination Remedies under contract law

5.5.2 Continuing Education

(Last Modified on October 12, 2010)

The majority of cases where this “determination of status’ is involved would be in those situations involving continuing education classes. In general, the following table will dictate whether or not a person is to be classified as an employee or an independent contractor.

DURATION OF COURSE STATUS
Short Course (less than two weeks, i.e., conference/workshop) Independent contractor unless otherwise dictated by the twenty factors listed in Section 5.5.1
Non-Credit Course (two weeks or more, but less than a semester) USG Employee
Credit Course (semester) USG Employee

5.5.3 Additional Compensation for University System of Georgia Employees

(Last Modified on February 9, 2015)

BoR Policy Manual Section 8.3.12.4 “Research, Saturday Classes and Off-Campus Continuing Education” covers the conditions that must be met before additional compensation can be paid a University System employee. Institution employees who are paid for continuing education services must be paid via normal institutional payroll processes.

GA Law (Code Section 45-10-25) “Exceptions to prohibitions on transactions with State agencies” is specific as to the types of services that can be utilized between University System units and in each instance an agreement between the presidents of the institutions must be consummated.

Note: Please review Section 5.3, Employee Pay for additional information.


5.5.4 Independent Contractors

(Last Modified on October 12, 2010)

Independent contractors are all other individuals who are not University System employees. A contract must be in force that covers substantially the following:

  1. Statement that individual is responsible for all federal and state unemployment taxes, FICA, and income taxes.

  2. Responsible for their liability insurance.

  3. Statement that they do not consider themselves to be an employee of the institution, the University System, or State of Georgia.

  4. Starting and completion dates of the program.

  5. Responsible for their own professional development.

  6. Will not require that office space be provided.

  7. Will not be performing “extra work” for the institution.

  8. Generally, compensation based upon completion of contract and not on an hourly basis.

  9. Subject to contract remedies under contract law.


(Last Modified on July 6, 2016)

A Supplement to Section 5.0 Payroll is available to detail established procedures specifically for USG institutions supported by the Shared Services Center (SSC). These procedures distinguish duties and responsibilities between the Shared Services Center and institutions. If a specific procedure is not addressed in the Supplement, please refer to USG BPM Section 5.0 for applicable governing procedures.

5.3.8 Pay Calendar

(Last Modified on March 27, 2017)

Employees are paid at the pay rate effective on the day the hours are worked/earned and generally receives the pay after the hours are worked/earned. Merit increases are effective as of the date communicated by the USO Budget Office in the Salary Administration Guide during the budget preparation process. The pay change is effective for the time worked not when the pay is received.

For example: If an employee receives a pay increase effective as of July 1 and the employee is paid on a biweekly schedule for the pay period from June 19 – July 2, the employee would receive pay at the old pay rate for the time worked on June 19 to June 30 and would receive pay at the new rate for the time worked on July 1 to July 2.

Applicable to institutions utilizing a payroll system supported by the SSC.

Exempt employees employed for an academic term/session will not have a special pay date for the end of the academic term/session. The pay date for the month in which an academic term ends will be the last business day of the month. If an academic term ends prior to or on the 4th of a month, the institution may elect to schedule the pay date as the end of the previous month. However, this may require a year-end adjustment if this crosses fiscal year end or the institution may have a financial statement misstatement.

Applicable to institutions utilizing the OneUSG HCM system.

All institutions utilizing the OneUSG HCM system shall use the same pay calendars. The pay calendars will be established by the University System of Georgia’s Office of Fiscal Affairs and Planning in coordination with the University System of Georgia’s Office of Human Resources.

Employees will be assigned to either a biweekly pay calendar (non-exempt) or a monthly pay calendar (exempt) based upon their FLSA exemption status.

Family Medical Leave Act (FMLA) requirements will be based upon a weekly calendar, Sunday through Saturday.

Each workday will begin at 12:00 am. If an employee’s shift crosses 12:00 am, the time will be reported for the day on which the shift begins.

The biweekly payroll calendar will consist of:

First Day of Pay PeriodSunday
Last Day of Pay Period2nd Saturday following the pay period’s beginning Sunday
Pay DateFriday following the 2nd Saturday in the pay period (if Friday is a non-business day as defined in Regulation CC of the Federal Reserve, pay date would move back to the previous business day)

The monthly payroll calendar will consist of:

First Day of Pay Period1st day of the month
Last Day of Pay PeriodLast day of the month
Pay DateLast business day of the month (as defined in Regulation CC of the Federal Reserve)

Exempt employees employed for the fall and/or spring academic term will receive their pay equally over the 5 month-end pay dates for the term. If the payroll processing deadline is unable to be met due to the timing of the beginning of a term/session, the employee’s initial payment will be the following scheduled monthly pay date.

Examples:

Example Semester Semester Dates Pay Dates
A Fall Semester Begins August 14 and ends December 18. August 31
September 30
October 31
November 30
December 31
B Spring Semester Begins January 5 and ends May 15. January 31
February 28/29
March 31
April 30
May 31
C Summer Session A Begins May 28 and ends June 30.

The payroll processing schedule requires that all job information for the May monthly payroll be entered by May 22.
June 30
D Summer Session B Begins July 2 and ends August 3.

Institution may elect to pay at previous month end since within 4 calendar days of beginning of month.
July 31
E Summer Session B Begins July 1 and ends July 31. July 31
F Summer Full Session Begins May 28 and ends July 31.

The payroll processing schedule requires that all job information for the May monthly payroll be entered by May 22.
June 30
July 31
G Maymester Begins May 11 and ends June 2.

Institution may elect to pay at previous month end since within 4 calendar days of beginning of month.
May 31

5.1.9 Supplemental Retirement Savings Plans

(Last Modified on January 23, 2018)

Employees may enroll in USG’s Supplemental Retirement Savings Plans and make changes to their contribution amounts with their institution’s HR office. Academic year contract employees should contact their institution’s HR office regarding the applicability of contributions for payroll payments received outside of the regular academic year contract (summer pay).


5.1.10 Benefits’ Tax Implications

(Last Modified on January 23, 2018)

The USG offers various benefits to its employees. Some of these benefits are subject to federal and state tax regulations and limitations. Changes in benefits during a calendar year may impact the limitations.

For Health Savings Accounts (HSA), federal tax regulations limit the amount of contributions in a calendar year. A change in health coverage during the calendar year must be considered in determining the maximum amount that can be contributed to the HSA. If errors occur in funding HSA accounts, federal tax regulations guide if, and how, corrections are made. The institution should contact the SSC for guidance in making the corrections. IRS Publication 969 provides additional information relative to HSA’s.

Employees should consult their tax advisor for information relative to their specific tax situation.


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