Business Procedures Manual

Essential business procedural components for University System of Georgia institutions.

5.3.1 Method of Payment for Compensation

(Last Modified on January 25, 2018)

Section 7.5.1.1 of the BOR Policy Manual, states that “electronic funds transfer is the required method of payroll payments to employees”. All employees are required to be paid by electronic funds transfer by authorizing the direct deposit of funds into their financial institution account within thirty (30) days of hire or rehire and should remain enrolled in direct deposit for the remainder of their employment. Generally, the financial institution must be a domestic bank. If you have employees outside of the United States, please consult the SSC for further guidance.

Note: Employees employed prior to July 1, 2011 were required to transition to electronic funds transfer prior to October 1, 2011 unless an exemption was approved by the institution.

Employees are required to complete the “Direct Deposit Notification Form,” indicating their understanding and compliance with the direct deposit policy, as well as a Direct Deposit Authorization Form, providing their banking information, within 30 days of hire/rehire. Each employee is responsible for updating their direct deposit information if changes are needed.

Student employees that are hired under the Federal Work Study Program may elect to participate in direct deposit and are encouraged to do so. However, due to federal financial aid guidelines, federal work study students cannot be required to participate in direct deposit or pay card. If the federal work study employee elects to not participate in direct deposit, he/she will receive a paper check mailed to the address in the payroll system.

Pre-notifications (Prenotes)

Pre-notification (Prenotes) will not be utilized by the OneUSG Connect system. Employees will receive an email notification when a change in their direct deposit account information is made in the OneUSG Connect system.

Method of Payment Exemptions

Section 7.5.1.1 of the BOR Policy Manual states that an employee may be exempted from participating in direct deposit if he/she does not have an account at an automated clearing house (ACH) financial institution, and can provide evidence that he/she cannot obtain such an account. An employee desiring to request an exemption from the direct deposit requirement should complete a “Direct Deposit Personal Exemption Request Form.” The exemption request form should be maintained for one year after the employee’s employment separation.

Effective with an institution’s transition to the OneUSG Connect solution, the SSC will receive, approve and maintain direct deposit exemption requests. Employees approved for a direct deposit exemption will be paid by a pay card issued by USG’s selected pay card provider.

Prior to an institution’s transition to the OneUSG Connect solution, the institution’s Chief Business Officer (CBO), or his/her designee, has exclusive authority to grant an exemption from the direct deposit requirement. An exemption may be granted only due to an employee’s inability to acquire an account at a financial institution or other specific situations that the institution’s CBO, or his/her designee, may deem to be an extreme hardship. The exemption should be documented by the Direct Deposit Personal Exemption Request Form and maintained for future review as needed for auditing purposes. The institution may elect to transition to the OneUSG Connect approval process prior to transitioning to the OneUSG Connect solution. Once an institution transitions to the OneUSG Connect solution, this paragraph is not applicable.

Prior to an institution’s transition to the OneUSG Connect solution, the CBO, 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. Once an institution transitions to the OneUSG Connect solution, this paragraph is not applicable.

Final Checks

Institutions may issue the final payment to an employee leaving employment by paper check provided the process is properly documented and ensures the delivery of the check by the applicable pay date in accordance with federal and state rules and regulations. The check for the final working hours must be released in accordance with the published pay dates for the pay period in which the hours are worked. For OneUSG Connect institutions, paper checks will be mailed by USG’s check printing vendor.

Paper Check Process

As previously stated, employees who have been granted an exemption from participating in direct deposit, and who are employed at institutions that have not converted to the OneUSG Connect solution, will receive a paper check. Paper checks will be mailed to the address in the payroll system. 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. Employees are responsible for notifying their employer of address changes using the electronic, self-service method at their institution, or in writing if an electronic method is not available.

Currently due to federal regulations, federal work study students will receive paper checks unless they elect to participate in direct deposit to their personal bank account.


5.3.2 Supplemental Pay, including Temporary Assignments

(Last Modified on January 25, 2018)

Supplemental pay is compensation to an employee in excess of the employee’s annual base salary and is appropriate only in limited situations. Types of supplemental pay include, but are not limited to:

  • Supplemental pay for tasks performed in a part-time capacity outside of the employee’s regular job duties and regular work schedule
  • Allowances for specific expenses such as car allowance, housing allowance, subsistence or relocation expenses
  • Employee awards in accordance with approved institutional processes
  • Overtime pay for hours worked by non-exempt employees, refer to Section 5.3.2.1 of this BPM for additional information
  • Pay for dual appointments, refer to section 5.3.3 of this BPM for additional information
  • Extra pay for part-time employment with a non-USG state agency, refer to Section 5.3.2.3 of this BPM for additional information
  • Overload pay for academic contract faculty for duties in excess of their defined workload

The HRAP manual’s section on Classification, Compensation, and Payroll Interim and Acting Assignments provides that employees may be assigned additional responsibilities of a higher level position on a temporary basis and may receive a temporary interim or acting appointments. These assignments may result in temporary salary adjustments.

Supplemental pay requests should be completed and approved by the appropriate institutional personnel.

Employees that have been determined by the institution to be non-exempt, as defined by the Fair Labor Standards Act (FLSA), and are performing duties outside of the employee’s normal job responsibilities could qualify for overtime pay. Therefore, non-exempt employees should be paid the appropriate overtime rate if the employee physically works over 40 hours in the workweek.

If an FLSA exempt employee performs task(s) during the employee’s regular work schedule that is(are) not part of the employee’s normal job responsibilities, or temporary assignment job responsibilities, the employee must utilize annual leave for the portion of time during which the additional task(s) is(are) performed.

Under no circumstances should an employee receive supplemental pay for a task while receiving regular compensation for the same time period.

Generally, supplemental compensation does not add to earnings used for retirement calculations, and retirement deductions/contributions are not taken/made. However, each retirement plan (TRS, ERS, or ORP) has its unique definitions relative to earnings that are “pensionable” (subject to retirement calculations) and the retirement plan provider has the final determination as to whether earnings are pensionable. The Supplemental Pay Procedure process in the SSC SOP (PRA-PY-001-PR-001) provides guidance relative to determining if supplemental pay is earnable compensation (subject to retirement contributions) by the various retirement plans. Please consult the SSC for assistance in making these determinations.

Employees receiving supplemental pay shall be paid said supplemental compensation via the institution’s payroll system. Supplemental compensation paid to employees who are on the institution’s payroll shall not be paid as per diem and fees or as stipends. Supplemental compensation is subject to withholding in accordance with Internal Revenue Service and appropriate state taxing agency regulations.

Supplemental pay should be expended utilizing the appropriate general ledger account(s) as defined in Chapter 2 of this BPM.

For institutions that have implemented the OneUSG Connect system, supplemental pay may be processed via various mechanisms. One of these mechanisms is the utilization of the additional pay functionality.

5.3.2.1 Overtime

The HRAP Manual’s section on Classification, Compensation, and Payroll provides policy provisions and definitions relative to overtime hours.

The standard workweek for institutions of the University System of Georgia is forty (40) hours.

The distribution of hours within the workweek is a work schedule decision made by the institution.

Overtime hours are hours physically worked that exceed the forty (40) hours within the standard workweek and are paid at the rate of one and one-half times the employee’s hourly rate for FLSA non-exempt employees.

Hours in excess of forty (40) hours that are not physically worked are additional straight time hours and are paid at the regular rate of pay. (Example: Employee has 8 holiday hours and 35 regular hours, physically worked, for a total of 43 hours for the workweek. The 3 hours above 40 would be paid at the regular rate of pay.)

Employees classified as non-exempt under FLSA may work overtime hours only if the hours are deemed necessary and approved by authorized personnel. Non-exempt employees must receive payment for overtime work in accordance with FLSA or receive compensatory time as in accordance with section 5.3.2.2 below.

Employees that are classified as exempt under FLSA shall not be paid for overtime hours for the performance of their job duties.

For employees with multiple jobs, the overtime pay is based upon the regular rate of pay. FLSA regulations define how the regular rate of pay is calculated when an employee receives varying pay rates, including supplemental pay.

The OneUSG Connect system utilizes a blended rate to calculate the overtime pay for employees with varying rates of pay. For employees receiving supplemental pay processed in the OneUSG Connect system utilizing the additional pay process, the supplemental pay rates should be determined and used to ensure the calculated supplemental pay amount complies with FLSA regulations regarding multiple rates of pay. The institution should contact the SSC to obtain further guidance regarding overtime rates for employees with varying rates of pay and supplemental pay items.

5.3.2.2 Compensatory Time (Comp Time)

Institutions may elect to provide compensatory (comp) time, in lieu of overtime pay, for approved overtime hours for employees that are classified as non-exempt under the FLSA. The HRAP manual stipulates that comp time is provided at the rate of one and one-half hours of compensatory time for each work hour in excess of the standard forty (40) hours within the standard work week. Comp time is accrued at the end of the pay period and has a maximum accumulation of 240 hours. Employees shall utilize accrued comp time prior to utilizing other leave. Comp time accruals prior to June may not be carried forward to the subsequent fiscal year. Therefore, all comp time accrued prior to June must be paid out no later than the final bi-weekly pay period in June of each fiscal year.

The institution’s official time recording system is the system of record for comp time. Comp time shall not be accrued and maintained outside of the time recording system. For institutions that have implemented the OneUSG Connect system, the Time and Labor module is the system of record.

Employees exempt under the FLSA are not eligible to accrue comp time.

The employee must be paid for accumulated comp time if:

  • The employee terminates employment with the institution, including retirement or transfer to another USG institution.
  • The employee’s FLSA status changes from non-exempt to exempt.
  • The employee transfers between cost centers (departments) at the institution.
  • The employee’s comp time exceeds 240 hours.
  • The employee has a comp time balance as of May 31.

When comp time is paid to the employee, it should be paid at the employee’s current regular hourly rate since the one and one-half calculation has already been applied with the time calculation.

5.3.2.3 Extra Compensation: Non USG Georgia State Agency

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, where department is a separate department of the State of Georgia.
  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 master’s 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 qualify for overtime pay. Please consult the SSC regarding clarification of overtime pay requirements. Non-exempt employees should be paid at least the overtime rate or more.

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 federal and state 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 January 25, 2018)

As stated in the Dual Appointment Section of the HRAP manual, the employment of staff, faculty, and students by two or more institutions within the 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.

An employee should be paid only for employment services by one institution within the 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

A Dual Appointment Agreement, which 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, is required. The Dual Appointment Agreement must 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 these accounts 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 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. (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-Dual Appointment 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 Dual Appointment salary expense is account 539100-Dual Appointment Faculty salaries. This is the exception to the typical situation in the previous examples where Dual Appointment 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

5.3.3.1 Borrowed Employees

To maximize resource utilization of USG employees, an institution (Requesting Institution) may request to borrow an employee of another institution (Home Institution) for a specified time-period to perform a specified job/position. A borrowed employee is a USG employee who is performing 100% of their time commitment at an institution other than their Home Institution and for which the Requesting Institution assumes 100% of the full costs for the employee.

A borrowed employee is excluded from the dual appointment definition since the employee is not performing duties at both institutions simultaneously. Therefore, a Dual Appointment Agreement is not completed for borrowed employees. Instead, borrowed employees should be covered by a memorandum of understanding (MOU) between the institutions.

As with dual appointment employees, borrowed employees should only be paid for employment services and related travel by one institution within the USG to help ensure compliance with federal and state laws. 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, accounting, and budgeting of borrowed employee earnings and expenses, institutions should utilize the earnings codes, related account codes, and the accounting scenarios outlined in Section 5.3.3 Dual Appointment of this BPM.


5.3.4 Summer Faculty Compensation

(Last Modified on January 25, 2018)

A faculty member employed on an academic year contract may receive payment for working during the summer in addition to the payment received for the academic year contract. Such payment for working during the summer (months not included in the academic year contract) may not exceed 33 1/3 % of the academic year contract amount for the previous academic year.

For institutions that have implemented the OneUSG Connect solution, summer faculty compensation should be recorded on job data using the “SUM” pay group.

See BPM 5.3.5 Pay Calendars for the pay dates relative to summer employment.

5.3.4.1 Summer Faculty Salary Expense

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


5.3.5 Pay Calendar

(Last Modified on January 30, 2018)

Employees are paid at the pay rate effective on the day the hours are worked/earned and generally receive 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.

All institutions utilizing the OneUSG Connect system must utilize the same pay calendars including pay date. The pay calendars will be established by the USG’s Office of Fiscal Affairs and Planning in coordination with the USG’s Office of Human Resources and published annually by the Shared Services Center (SSC).

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

For SSC supported institutions, there will not be a special pay date at the end of the academic term/session for exempt employees. The final pay date for the term will be the SSC published monthly pay date. 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.

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 DatePublished by SSC
The biweekly pay calendar is to be based upon the initial pay period of the biweekly payroll calendar beginning on Sunday, June 18, 2017.


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 DatePublished by SSC

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

5.3.6 Work Schedule

(Last Modified on January 25, 2018)

Work schedules define the regularly scheduled number of work hours for each day within a pay week and facilitates compliance with the Fair Labor Standards Act (FLSA) and the Affordable Care Act (ACA) as well as the validation of work, leave and holiday hours.

Institutions utilizing the OneUSG Connect system shall assign employees to a work schedule. The work schedule will be automatically assigned based on the employee’s standard work hours which relate to the employee’s full time equivalent (FTE) work commitment as well as the employee’s work group. The work schedule may be updated to agree to the employee’s true work schedule if it differs from the automatically assigned schedule. All employees, including regular, temporary, and student employees, will have a work schedule automatically assigned based upon the employee’s standard work hours. However, hourly paid employees will be paid based upon the actual work hours entered in the OneUSG Connect system.

Non-benefitted exempt employees may utilize the employee work schedule and/or reported hours for ACA hours tracking purposes. The conversion chart outlined in the Employee Categories Policy in the HRAP manual may be applied to any applicable employees, such as Part-Time Faculty and Graduate Research Assistants, to develop their work schedule. ACA hours tracking for non-exempt hourly employees will be based on actual reported hours only and is not impacted by the work schedule.


5.3.7 Relocation Expenses

(Last Modified on January 25, 2018)

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. These procedures should reflect at a minimum:

  • The maximum amount of relocation expenses that can be offered to a prospective employee considering the institution’s budget constraints;
  • 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;
  • Method of payment; and,
  • Recordkeeping.

If the written policy allows for direct payment to vendors, all State of Georgia purchasing regulations apply.

For example, moving company expenses exceeding $5,000 must be competitively bid.
Conversely, if an employee is to receive the reimbursement for moving company expenses exceeding $5,000, the employee is 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.

Examples of relocation expenses 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 TIGA Audit reporting and should be reported in account 565xxx, Relocation Expense, for GAAP reporting.


5.3.8 Off-Cycle Payroll Processing

(Last Modified on January 25, 2018)

If a payroll disbursement is necessary at a time other than the regularly scheduled pay date, an off-cycle disbursement or on-demand/emergency disbursement may be requested. Off-cycle disbursements and on-demand/emergency disbursements are an exception to regular payroll processing and should never be substituted for the timely processing of employee pay.

OneUSG Connect off-cycle disbursements and on-demand/emergency disbursements shall be processed by the SSC. (Note that in the OneUSG Connect system, on-demand/emergency disbursements are online disbursement.) OneUSG Connect off-cycle disbursements shall meet the criteria below and will be processed in accordance with the established OneUSG Connect off-cycle pay calendar. Within OneUSG Connect, on-demand/emergency disbursements are a subset of off-cycle disbursements that require a pay date earlier than the established off-cycle pay dates.

OneUSG Connect off-cycle disbursements should meet at least one of the following criteria:

  • Paycheck reversal due to employee overpayment
  • Administrative error
  • The employee has received less than 50% of their wages
  • The employee is owed 10 hours or more
  • The employee submitted his/her hours on time, but the time approver did not approve the hours on time
  • The employee has been involuntarily terminated

OneUSG Connect off-cycle disbursements should not be processed for the following reasons:

  • Retroactive pay
  • The employee is owed less than 10 hours
  • Employee fails to enter and submit his/her time report on schedule
  • Supplemental pay, if the employee was paid for their regular wages
  • Vacation pay out, unless authorized by the institution’s Chief Human Resources Officer (CHRO)

OneUSG Connect on-demand/emergency disbursements should be very limited emergency situations. The employee or his/her direct supervisor must request an on-demand/emergency disbursement and verify that a financial hardship will occur if payment is not received prior to the next scheduled off-cycle and/or on-cycle check date. The institution’s CHRO must approve the on-demand/emergency request. If an on-demand/emergency disbursement is requested for the same employee more than one (1) time in a calendar year, the request must be approved by the institution’s administrative level above the CHRO.

Please consult the OneUSG Connect SOP for detailed off-cycle disbursements procedures and forms.

The OneUSG Connect off-cycle pay calendar will be established annually and published by SSC. The off-cycle pay calendar defines the off-cycle pay processing dates for the year.


5.3.9 Overpayment of Wages

(Last Modified on January 25, 2018)

When an employee has been overpaid by the USG, it is considered a receivable to the institution and requires that the employee return the amount of overpayment as quickly as possible. Overpaid wages should be repaid in the same calendar year and fiscal year in which the overpayment occurred, if at all possible. Due to the potential impact upon taxes and taxable gross, the amount of the wage repayment required will depend on when the wages were paid and when the employee repays the institution. The method of repayment will depend upon the employee’s status (active versus terminated).

For institutions supported by SSC, SSC will coordinate with the institution to calculate the total overpayment amount including the tax, garnishment, benefits/deductions and retirement impacts based upon the expected repayment date. If the repayment is not made as scheduled, the overpayment may have to be recalculated. In compliance with federal tax regulations, the wages will not be adjusted in the payroll system until the funds have been received. However, the expense should be reduced and the receivable should be established once the overpayment is identified. This accounting entry will not originate in the payroll system and will be a reconciling item between the financials system and the payroll system. Once the repayment is received, the institution will coordinate with SSC to determine the appropriate adjustment method in payroll and/or financial systems.

Note: Employee receivables are subject to Section 10.1.2: Employee Receivables of this BPM.


Active Employee Overpayment

The amount of the overpayment should be reviewed with the employee to determine if an immediate repayment will occur or if a repayment schedule will be considered.

For institutions that have implemented the OneUSG Connect system, there are multiple options for handling the overpayments unique to the employee’s situation. The OneUSG Connect SOP PY-026 Wage Repayment Process provides the appropriate steps for processing the repayment.

Terminated Employee Overpayment

The amount of the overpayment should be reviewed with the terminated employee to determine if an immediate repayment will occur or if a repayment schedule will be considered.

  • If the overpayment is discovered prior to the issuance of the employee’s final payment (regular or vacation pay out), the full amount of the overpayment should be deducted from the employee’s final paycheck. If the final paycheck is not sufficient to cover the overpayment, the employee should remit the overpayment in full immediately.
  • If the overpayment is discovered after the issuance of the employee’s final payment, the employee should remit the overpayment immediately.

For institutions that have implemented the OneUSG Connect Solution, if a repayment schedule is necessary, the OneUSG Connect SOP PY-026 Wage Repayment Business Process should be followed.


5.3.10 Retroactive Payments of Wages

(Last Modified on January 25, 2018)

Retroactive wage payments may be necessary for various reasons:

  • The time for a previous pay period may not have been entered timely which resulted in an underpayment to the employee.
  • A change in job data was not entered prior to the payroll being processed.
  • An additional pay item was not entered prior to the payroll being processed.

Retroactive payments generally result in an employee being underpaid. However, an overpayment may also occur as a result of late paperwork. Consult BPM Section 5.3.9 for additional guidance for overpayments.

Retroactive payments for prior fiscal or calendar years should be reviewed in relation to budget and tax implications. For prior budget periods, please consult with your institutional budget office. For identification of potential tax issues, please consult with your institutional payroll tax expert and/or the SSC.

OneUSG Connect institutions should utilize the time and labor module to enter time not previously entered for non-exempt employees. This will automate the calculation and payment of the missed wages.

OneUSG Connect institutions should utilize the OneUSG Connect system retroactive pay process (retro pay) to automate the calculation and payment of wages for job data changes that are effective in previously paid pay periods. The retro pay process will identify retro pay needs based upon updates and additions to job data. A review of the GL distribution should occur prior to the finalization of the retro pay to ensure that any previous funding overrides that are necessary for the retro pay are properly entered.

OneUSG Connect institutions should utilize a direct entry to the pay-line for processing retroactive payments for items above an employee’s base pay that are to be paid using the additional pay method of payment.


5.3.11 TIGA Payroll Reporting (Department of Audits and Accounts)

(Last Modified on January 25, 2018)

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 each fiscal year. Although the reports are submitted annually, the USG requires each of its units to produce reports quarterly, and to reconcile each of these reports to the cumulative balances maintained for the respective account codes in the institution’s general ledger in its financials system. Documentation supporting the reconciliations of the quarterly reports and the annual report to the general ledger should be maintained by the institution for auditor’s review.

The actual annual reports to the Department of Audits and Accounts are submitted electronically as data files. The due date for these reports and the file requirements will be included with instructions provided by the Department of Audits and Accounts each year.
The Department of Audits and Accounts may perform testing procedures on these reports and information reported may be verified back to the general ledger.


5.3.12 Earnings Codes

(Last Modified on January 25, 2018)

The OneUSG Connect system utilizes standard earnings codes. The SSC maintains the standard earnings codes. If an institution needs a new earnings code, the institution should submit a request to the SSC. The SSC will coordinate the review and approval of the new earnings code or the inactivation of an existing earnings code. Consult the OneUSG Connect SOP for the established earnings codes.


5.3.13 Deduction Codes

(Last Modified on January 25, 2018)

The OneUSG Connect system utilizes standard deduction codes. The SSC maintains the standard deduction codes. If an institution needs a new deduction code, the institution should submit a request to the SSC. The SSC will coordinate the review and approval of the new deduction code or the inactivation of an existing deduction code. Consult the USG OneUSG Connect SOP for the established deduction codes.


5.3.14 Garnishments

(Last Modified on January 25, 2018)

Section 8.2.14 of the BOR Policy Manual addresses garnishment of pay of employees. The garnishment process is used when an employee’s paycheck is subject to deductions for child support, unpaid taxes, or repayment of a debt. Garnishment deductions are considered involuntary and neither the employer nor the employee can control them. The law requires the employer to deduct from the employee’s payroll the amount specified by the garnishment order and remit it to a court or government agency until the employee’s debt is satisfied or a release order is received. Failure to deduct and remit payments subjects the employer to penalty equal to the amount to be deducted in addition to possible fines and interest.

The USG has a contract with a third party vendor to provide garnishment administrative services for institutions supported by the SSC.

Responsibilities of Institution
Upon receipt of a garnishment order, the institution should verify the identified employee noted on the order. For SSC supported institutions, once validated, the order shall be provided to the third party garnishments vendor.

Responsibilities of the SSC
The SSC does not assist creditors in collecting personal debts from employees except as legally required by garnishment proceedings. The SSC maintains a log of all garnishment orders received from the institution and coordinates with the institution and the third party vendor regarding garnishment processing.

The SSC approves the answers for non-electronic disbursements and then submits the answers and disbursements to the appropriate garnishing agency.

Responsibilities of Third Party Garnishment Services Vendor
Upon receipt, the third party garnishments services vendor interprets and processes the garnishment order, notifies the SSC that a garnishment order has been received, and produces and distributes responses and acknowledgments. In calculating the garnishment order, the third party garnishment services vendor prioritizes the garnishment by federal regulations and state rules, calculates disposable income by state/federal rules, and loads the order so appropriate deductions can be made.

When garnishment disbursements are made, the third party garnishment services vendor generates the required information. Tax levy payments, student loan payments, and child support payments are disbursed by the third party garnishment services vendor to the appropriate garnishing agency. All other disbursements are provided to the SSC for distribution to the garnishing agency with the applicable answers. Questions concerning non-receipt of payment, address change requests, or misplaced checks should be directed to the third party garnishment services vendor customer support group.

Document Retention
Supporting documentation for garnishments should be retained by the SSC in accordance with the USG records retention requirements.


5.3.15 Pay Groups

(Last Modified on January 30, 2018)

Pay groups are utilized by the OneUSG Connect system to group employees for payroll processing. The pay group is generally utilized to determine the account code in which payroll expenditures are recorded.

OneUSG Connect utilizes standardized pay groups that are composed of three digits. The first two digits indicate the company code and the third digit represents a unique group that share characteristics including:

  • pay frequency
  • pay period
  • check date
  • FLSA classification and rules
  • benefits eligibility
  • academic year employee benefit accruals for summer (7/5th)

If a non-benefited employee becomes benefits eligible, even if only partially, the employee shall be moved to a benefits eligible pay group. However, part-time faculty who become partially benefited will not move to the full-time faculty pay group without the institution’s Academic Affairs Office approving a change in faculty status.

The SSC SOP provides a pay group decision tree and pay group descriptions and definitions to provide guidance in determining the appropriate pay group. (PRA-PY-020-PR-001 Pay group Decision Tree and PRA-PY-020-PR-002 Pay Group Descriptions and Definitions).


5.3.16 Compensation of Presidents

(Last Modified on January 25, 2018)

The salaries, taxable income and associated fringe benefits for USG presidents and the Chancellor, as approved annually by the BOR, shall be paid exclusively by the USG institution from state appropriations and/or other appropriate sources held by the institution as outlined in the annual compensation letter

State appropriations shall be used to pay salary, housing allowance, subsistence allowance, auto allowance, relocation expenses and, where applicable, salary supplement, supplemental fringe benefits, deferred compensation, and any other items as approved by the Board.

State appropriations will also pay for fringe benefits for presidents that are available to all USG employees. Individuals receiving an auto allowance under a non-accountable plan for taxation purposes are not eligible for mileage reimbursements associated with travel within the home county where the institution is headquartered and are otherwise subject to the provision of the USG’s travel regulations as outlined in Section 4 of the BPM.

The annual merit salary increase paid from state funds shall be based upon the approved salary, exclusive of any allowance, supplement, or deferred compensation.

Non-state funds may pay for expenses and allowances such as civic memberships (if outlined in contract), business-related entertainment, and other expenses associated with the operations of the office of the president but not resulting in taxable income to the president.

Institutions are required to provide a letter to USG confirming the payroll and compensation records are accurate and consistent with the approved compensation package for the President.


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