Business Procedures Manual

Essential business procedural components for University System of Georgia institutions.

5.1 Benefits: Employees, Retirees and/or Dependents

(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.

(Last Modified on January 26, 2018)

Under Federal and State regulations, employers are required to deduct and withhold federal, state, and local income taxes, Social Security taxes and Medicare taxes when employees are paid. The employer is also required to pay the full amount of taxes withheld, including employer share, to the appropriate agencies and file periodic tax returns.
As entities of the State of Georgia, institutions are not required to pay Georgia unemployment taxes as wages are paid. Instead, unemployment insurance premiums are paid to the State of Georgia in accordance with state regulations which is normally on an annual basis.
Institutions with employees located in tax jurisdictions outside the State of Georgia must comply with the regulations of any applicable tax jurisdictions. Note: If the applicable agency changes requirements, institutions are expected to comply with the new requirements.

5.7 Employee Compensation Accounting

(Last Modified on January 30, 2018)

Employee compensation and associated tax and benefit costs should be recorded in the general ledger based upon activity from the institution’s payroll system including limited activities originating in the accounts payable system (i.e. unemployment insurance and workers compensation expenditures). Generally, the payroll system should be the system of record for personal services expenditures.


5.8 Personal Services Related Payments (Money Movement)

(Last Modified on January 30, 2018)

Personal services expenditure processing results in multiple movements of cash to various payees collectively referred to as money movement. Dates for money movements are determined in accordance with deadlines established by the federal banking system, taxing agencies and third party vendors providing services for the USG.

Note: For OneUSG Connect Benefits and for institutions supported by SSC, if adjustments to the processing schedules are needed due to holidays or other closures, the changes will be communicated by the SSC.


5.9 Personal Services Encumbrances

(Last Modified on January 30, 2018)

In order to facilitate budget monitoring and reporting, institutions should encumber salary and fringes for benefited positions. Institutions may also elect to encumber non-benefited positions. For OneUSG Connect institutions, the pay group is utilized to determine if the personal services should be encumbered.

The encumbrance calculation and adjustment process should be run monthly prior to the preparation of the quarterly budget amendment that is submitted to the USG Budget Office. For OneUSG Connect institutions, the encumbrance calculation is processed by the SSC in accordance with the published schedule. An institution may request that the process be ran at other times if needed, including the zero encumbrance process.

For OneUSG Connect institutions, an encumbrance calculation will not be performed for employee compensation that is processed using the additional pay mechanism. To ensure computation of appropriate encumbrance amounts, employee compensation should be processed utilizing job data.


5.1.1 Benefits Eligibility Dates

(Last Modified on January 24, 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 30, 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.


5.2.1 Time and Leave Reporting

(Last Modified on January 25, 2018)

In accordance with the Time and Leave Reporting section of the USG’s HRAP manual, all employees should report time worked and leave taken. For all institutions utilizing the OneUSG Connect system, the system of record for all time and leave reporting will be the OneUSG Connect Time and Labor and Absence Management module.

Employees eligible for leave should request leave usage as soon as possible and in accordance with institution or department specified deadlines.

In the OneUSG Connect system, approved leave requests will automatically populate on the employee’s timesheet. If an employee was absent, and the absence is not reflected on the timesheet submitted for approval, the employee should ensure an absence request has been submitted to the time approver to ensure approval before final timesheet approval. The employee may add a comment regarding the absence. If it is determined that an absence was omitted after a timesheet has been submitted and approved, the absence should be recorded in the system after the fact and the system will process the absence accordingly.

In the OneUSG Connect System, employees classified as exempt under the FLSA should record exception time (absences). Exception time consists of any time during the employee’s standard work schedule that is not worked. Where applicable, Affordable Care Act (ACA) hours will be applied in accordance with the employee’s standard work schedule. (See BPM Section 5.3.6, Work Schedule and 5.2.4, ACA Coverage Reporting)

In the OneUSG Connect System, employees classified as non-exempt under the FLSA should enter all hours worked utilizing either the punch time method or the elapsed time method unless the institution designates the non-exempt employee as an exception based hourly employee.

  • The punch time method requires that employees enter beginning and ending time worked, including time for meal breaks if applicable. Time may be entered using a time clock, web punch or time entry page. The punch time method utilizes a six (6) minute rounding rule.
  • Elapsed time entry requires employees to enter the cumulative daily time for each time reporting code and is only entered using the time entry page. Elapsed time should be recorded prior to the close of business on the last scheduled work day of the pay period.

Each institution determines the employee’s method of time entry. Student workers (student assistants and Federal Work Study staffers) are required to use punch time to facilitate the determination that the student worker is not working during scheduled class time. Punch time is the default time entry method for non-exempt employees.

The timesheet for a non-exempt employee designated as an exception based hourly employee will be populated with work hours in accordance with the employee’s work schedule. The employee should make any necessary changes to ensure that the time and absences reported agree to the actual hours worked and absences taken prior to submitting the timesheet for the pay period.

Due to the payroll processing schedule for some pay periods, the employee may need to enter estimated time and absences prior to the actual end date of the pay period. Corrections due to differences in the estimated time/leave reported vs actual time/leave will need to be made after the pay period ends. Detailed instructions for making these corrections can be found in the OneUSG Connect SOP.


5.2.2 Time and Leave Approval

(Last Modified on January 23, 2018)

In accordance with the Time and Leave Reporting section of the USG HRAP manual, an employee’s primary approver, or designee, should approve the time and leave reports prior to the established deadlines in the payroll processing schedule.

For all institutions utilizing the OneUSG Connect system, the system of record for all time and leave approvals is the Time and Labor and Absence Management modules. In OneUSG Connect, time should be approved on the Time Detail page, not the summary page, to facilitate the approver reviewing the actual times reported. A supervisor may delegate time approval to a time approver designee.


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.


5.4.1 Federal and State Income Tax Withholdings

(Last Modified on January 30, 2018)

Income tax withholdings are based on tax tables and guidelines established by the IRS and other federal, state or local tax agencies, and the employees withholding form(s). (See IRS Publication 15 (Circular E) (www.irs.gov) published annually and Georgia’s State Employer Tax Guides (https://dor.georgia.gov/tax-guides).
For institutions that utilize the OneUSG Connect system, the tax table information is managed and maintained in the OneUSG Connect system by the SSC.
For institutions that utilize the USG third party HR/Payroll system, the tax table information is managed and maintained by the third party provider.


5.4.2 Employee Income Tax Withholding Forms

(Last Modified on January 26, 2018)

Employees are required to complete a Federal Form W-4 Employee’s Withholding Allowance Certificate, as well as any applicable state or local withholding form(s). The state withholding is determined based upon the state in which the employee works. The majority of USG employees work within the state of Georgia and will need to complete the State of Georgia Withholding Certificate, Form G-4, as appropriate. However, if an employee works in a different state (for example, on line instructors), the institution should consult with the SSC to determine the appropriate state withholding forms to utilize.
If the employee does not provide an approved electronic or signed paper Federal Form W-4, the employer must set up withholding as if the employee were single with zero withholding allowances. Failure to provide a proper State withholding form will result in a similar default withholding in accordance with applicable state regulations.
Employees are responsible for submitting changes to their federal or state withholding form(s). Changes can be submitted electronically if the institution’s payroll system has an electronic submission process (such as OneUSG Connect’s employee self-service) or by submitting paper form(s) to the institution’s Human Resources/ Payroll Office.
The institution’s Human Resources/Payroll Office is responsible for entering payroll tax withholding information in the institution’s payroll system for any paper federal or state withholding forms received. Electronic submissions should automatically update the employee’s record in the HCM system.
Document Retention

Tax documents should be retained in accordance with the USG records retention requirements.


5.4.3 Annual Verification of Income Tax Exempt Withholding Status

(Last Modified on January 26, 2018)

Employees claiming “exempt” from Federal and/or State of Georgia withholding must renew their exempt filing status annually by February 15. The institution shall send an annual notification to any employee claiming exempt status advising that a new Federal Tax Withholding Form W-4 and/or Georgia State Withholding G-4 is required. If an institution has employees subject to state withholding other than Georgia, the institution should consult with the SSC to determine if a periodic verification is required.
If the employee has not completed a new Federal Tax Withholding Form (W-4) or Georgia State Withholding Form (G-4) by February 15 of the current year, the institution is required to withhold based on the W-4/G-4 submitted prior to the employee claiming exemption from withholding, if available. If not available, the institution is required to withhold as if the employee is single with zero withholding allowance (IRS Publication 15).
If on or after February 16 of the current year, the employee provides a new Federal Tax Withholding Form (W-4) or Georgia State Withholding Form (G-4) which claims exemption from withholding, the new form should be applied to wages paid after the receipt of the form(s). No refunds will be processed for taxes already withheld. (IRS Publication 15).


5.4.4 Social Security and Medicare Tax Withholdings

(Last Modified on January 26, 2018)

Social Security and Medicare tax withholdings are based on the employee’s classification and at the rates established by the Social Security Administration. The employee’s classification is established by the institution in accordance with Social Security Administration guidelines (www.ssa.gov) and IRS Publication 15.
Employees that participate in TRS, ERS, or ORP are subject to Social Security and Medicare taxes.
Employees that participate in the Georgia Defined Contribution Plan (GDCP) are exempt from Social Security taxes but are subject to Medicare taxes. Reference BPM 5.1.6 Retirement Plan Participation for additional information.
Student workers that are enrolled and regularly attending classes are usually exempt from Social Security and Medicare taxes. Consult the SSC for clarification regarding student exemptions.


5.4.5 Quarterly Payroll Tax Reporting

(Last Modified on January 26, 2018)

Institutions are required to file quarterly payroll tax returns with the federal government and the State of Georgia. If an institution has employees that are working in a state other than Georgia, the institution should coordinate with the SSC to determine the appropriate tax reporting requirements, if any.

Federal Quarterly IRS 941:

Institutions should refer to the IRS website, Form 941 and 941 Instructions, for quarterly reporting requirements.

State of Georgia Department of Revenue Quarterly Reporting:

Institutions should refer to the Employer’s Tax Guide located on State of Georgia Department of Revenue website for quarterly reporting requirements.

For SSC supported institutions, a third party tax services provider completes and files the required tax reports. The SSC serves as a liaison between the institutions and the third party tax services provider to coordinate, review, and approve tax returns for submission to federal and state tax agencies.

The SSC will provide a submission schedule to the institutions for each tax reporting period (quarterly and annually). Institutions are responsible for the review and balancing of tax returns. The SSC will provide assistance to institutions with troubleshooting and balancing issues as requested. Institutions must approve the filing of the tax returns by submitting an approval notice via the SSC Case Management (Ticket) system.

SSC will coordinate the consolidated approval for the institutions and provide to the third party tax services provider for processing. The third party tax services provider will generate and file all returns on behalf of the USG by the due date in accordance with their service level agreement with the USG and with the guidelines set forth by Federal and State taxing agencies.


5.4.6 Georgia State Department of Labor Reporting

(Last Modified on January 26, 2018)

Institutions are required to report quarterly to the Georgia State Department of Labor (DOL) (www.dol.state.ga.us) a listing of employees and salary for the quarter. The listing includes all employees except student employees (student assistants and Federal Work Study Program employees).
Although the quarterly listings are captured on (DOL) forms normally intended for collecting unemployment taxes, the USG does not pay state unemployment taxes based on these quarterly payroll listings. Instead, the USG pays premiums on a “reimbursable basis” based upon claims history. The Department of Administrative Services (DOAS) (www.doas.ga.gov) bills each institution annually.
For SSC supported institutions, a third party tax services provider completes and files the required reports on behalf of the USG following the terms of their service level agreement with the USG and in accordance with DOL guidelines.


5.4.7 Annual Payroll Tax Reporting

(Last Modified on January 26, 2018)

Federal IRS W-2 and W-3 Reporting:

A Federal Form W-2 Wage and Tax Statement must be completed and furnished to employees by the deadlines established by Social Security Administration. Generally this should be the last working day of January of each year. To meet the “furnish” requirement, the form must be properly addressed and mailed on or before the due date.

An electronic submission of the summary data and the detailed employee information must be provided to the Social Security Administration by the established deadlines. Generally this coincides with the date the W-2s are due to the employees. The summary data is comparable to the Form W-3 (Transmittal of Wage and Tax Statements).
Institutions are responsible for entering any taxable benefits (vehicle allowance, housing, tuition reimbursement, etc.), into the payroll system. This is usually accomplished through the final payroll for the year or an adjustment file and must be completed prior to the preparation of the W-2 forms.

Georgia Department of Revenue Annual Reporting:

Georgia Department of Revenue Form G-1003, must be filed annually with the State of Georgia. The Georgia Department of Revenue’s Employer’s Tax Guide provides information and deadlines for this reporting requirement. Usually the return for employee compensation are due by the last business day of February.
W-2 Process Flow

For SSC supported institutions, the SSC will work as a liaison between the institutions and the third party tax services provider to coordinate, review, and approve W-2 forms for submission to employees and the Federal and State Tax Agencies. The SSC will provide assistance to institutions with troubleshooting and balancing issues as requested. Institutions must approve the filing of W-2s by the scheduled deadline by submitting an approval notice via the SSC Case Management (Ticket) system. Once the institution approves the W-2s, the SSC will then forward the year-end W-2 data to the third party tax services provider for processing.

The third party tax services provider will generate and furnish (either by mail or electronically) all W-2’s and annual returns to the employees, appropriate tax agencies and the SSC by the due date in accordance with their service level agreement with the USG. The third party tax services provider will not distribute any data directly to an institution.

For institutions utilizing the third Party HR/Payroll system, the year-end W-2 information will be available to employees via the third Party HR/Payroll system Employee Portal.

For institutions utilizing the OneUSG Connect system, the year-end W-2 information will be available to employees via the OneUSG Connect Employee Self Service.

Employees have the opportunity to opt-in to receive an electronic copy. If employees do not opt to receive an electronic copy, their W-2 will be furnished via regular mail.

Document Retention

Tax documents should be retained in accordance with the USG records retention requirements.


(Last Modified on January 30, 2018)

Internal Revenue Service (IRS) and Department of Labor (DOL) regulations make it imperative that the USG provides guidelines for determining whether certain personal service arrangements create an employer/employee or an independent contractor relationship.

Under the IRS regulations 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.

Under the DOL regulations, the FLSA’s minimum wage and overtime provisions do not apply to contractors with Economic independence who are in business for themselves. On the other hand, applying the FLSA’s definition, workers who are economically dependent on the business of the employer, regardless of skill level, are considered to be employees and are covered by the minimum wage and overtime provisions of FLSA. For more detailed information follow the link to the HRAP and the Department of Labor’s Fact Sheet #13. <https://www.dol.gov/whd/regs/compliance/whdfs13.pdf >

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

(Last Modified on January 30, 2018)

In determining whether the person providing service to an Institution is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered. Historically, the IRS has used a 20-factor test, which more recently was reconfigured into three primary factors discussed below under Common Law Rules:

Common Law Rules

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (These include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Institutions must weigh all factors when determining whether a worker is an employee or independent contractor. There is no set number of factors that “makes” the worker an employee or an independent contractor, and no one factor stands alone in making this determination. The keys are to look at the entire relationship, consider the degree or extent of the right to direct and control, and finally, to document each of the factors used in coming up with the determination.

Behavioral control

Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of:

  1. Instructions the business gives the worker. An employee is generally subject to the business’ instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work:

    1. When and where to do the work
    2. What tools or equipment to use
    3. What workers to hire or to assist with the work
    4. Where to purchase supplies and services
    5. What work must be performed by a specified individual
    6. What order or sequence to follow

  2. The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker’s performance or instead has given up that right.
  3. Training the business gives the worker. An employee may be trained to perform services in a particular manner. Independent contractors ordinarily use their own methods.

Financial control

Facts that show whether the business has a right to control the business aspects of the worker’s job include:

  1. The extent to which the worker has unreimbursed business expenses. Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services they perform for their business.
  2. The extent of the worker’s investment. An employee usually has no investment in the work other than his or her own time. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. However, a significant investment is not necessary for independent contractor status.
  3. The extent to which the worker makes services available to the relevant market. An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.
  4. How the business pays the worker. An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.
  5. The extent to which the worker can realize a profit or loss. Since an employer usually provides employees a workplace, tools, materials, equipment, and supplies needed for the work, and generally pays the costs of doing business, employees do not have an opportunity to make a profit or loss. An independent contractor can make a profit or loss.

Type of relationship

Facts that show the parties’ type of relationship include:

  1. Written contracts describing the relationship the parties intended to create. This is probably the least important of the criteria, since what really matters is the nature of the underlying work relationship, not what the parties choose to call it. However, in close cases, the written contract can make a difference.
  2. Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. The power to grant benefits carries with it the power to take them away, which is a power generally exercised by employers over employees. A true independent contractor will finance his or her own benefits out of the overall profits of the enterprise.
  3. The permanency of the relationship. If the company engages a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.
  4. The extent to which services performed by the worker are a key aspect of the regular business of the company. If a worker provides services that are a key aspect of the company’s regular business activity, it is more likely that the company will have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it will present the attorney’s work as its own and would have the right to control or direct that work. This would indicate an employer-employee relationship.

5.5.2 Continuing Education

(Last Modified on January 30, 2018)

The majority of cases where this “determination of status’ is necessary involves 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 relative to continuing education classes.

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 January 30, 2018)

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 USG units and in each instance an agreement between the presidents of the institutions must be consummated. Reference 5.3.3 Dual Appointment/Shared Employees for additional information.

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


5.5.4 Independent Contractors

(Last Modified on January 30, 2018)

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. Statement of understanding that FLSA minimum wage and overtime provisions do not apply to independent contractors
  5. Starting and completion dates of the program.
  6. Responsible for their own professional development.
  7. Will not require that office space be provided.
  8. Will not be performing “extra work” for the institution.
  9. Generally, compensation based upon completion of contract and not on an hourly basis.
  10. Subject to contract remedies under contract law.

Institutions should on an annual basis review IRS and DOL criteria to ensure awareness and compliance with regulations regarding Independent Contractors.

HRAP Reference:

IRS Reference: https://www.irs.gov
DOL Reference: https://www.dol.gov/whd/regs/compliance/whdfs13.htm


(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.

5.1.9 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.


5.2.3 Delegation of Tasks/Approvals

(Last Modified on January 30, 2018)

Delegation to perform actions is appropriate in the following scenarios:

  • A manager needs to delegate transactions to another employee while on leave, and/or
  • An administrator needs to delegate transactions to another employee to ensure timely processing of transactions.

The delegation of the task/approval does not transfer the responsibility for the action. The delegation can be a one-time delegation or an ongoing delegation.

The delegation of authority should only be afforded to an employee whose job duties include the performance of such transactions or to an employee that holds a superior position to the responsible employee in the institution’s organizational structure. Generally, duties of FLSA exempt employees should not be delegated to FLSA non-exempt employees. A delegation shall not be made that will create a segregation of duties issue without the implementation of mitigating controls. (See Section 5.6.1, Data Access and Segregation of Duties for additional information regarding segregation of duties.)

The OneUSG Connect system has a delegation feature that allows users to authorize other users to perform tasks and/or approvals on their behalf. The electronic record of the delegation is the official documentation for approval of the delegation.


5.2.4 Affordable Care Act (ACA) Coverage Reporting

(Last Modified on January 25, 2018)

Under the Affordable Care Act (ACA), applicable large employers – those with 50 or more full-time employees, including full-time equivalent employees – are generally required to:

  • Offer benefit coverage to full-time employees and their dependents
  • Offer benefit coverage that meets the law’s affordability or minimum standard values
  • Report appropriate benefit coverage-related information to the IRS and applicable employees

The USG (composite institutions) is considered a large employer. Additionally, for purposes of ACA, a full-time employee is an employee who works an average of 30 hours per week during the 12-month measurement period.

Monitoring and reporting of hours worked is necessary to determine full-time status and ensure compliance with ACA, including the offering of benefits when required. The USG must also maintain a monthly summary for reporting compliance by employee of all hours worked. The USG utilizes a third party vendor to accumulate these hours for eligibility determination and to provide the required information to both the IRS and applicable employees.

Failure to comply with these reporting requirements will result in substantial fines and penalties.

5.2.4.1 Monthly ACA Reporting

The hours worked by employees not offered health coverage shall be reported. For FLSA non-exempt employees, the actual hours worked should be reported. For FLSA exempt employees, the reported hours may be actual hours worked or calculated hours for specific tasks. The conversion chart outlined in the HRAP manual’s section on Employee Categories should be used to determine calculated hours.

The USG has contracted with a third party ACA reporting provider. The SSC is responsible for collecting the employee hours worked from each USG institution and transmitting the monthly files to the ACA reporting provider. The ACA reporting provider will then summarize the information and report to each institution. The institution must review the monthly information provided to determine if previously ineligible employees must be offered health coverage.

For institutions utilizing the OneUSG Connect system, the Time and Labor and Absence Management module is the system of record for all time reporting (Reference BPM Section 5.2.1, Time and Leave Reporting). FLSA exempt employees’ work schedules are utilized as the work hours unless the institution determines that calculated hours and/or actual hours will be utilized. (Reference BPM Section 5.3.6 Work Schedules)


5.2.5 Georgia Department of Labor (DOL) Separation Notice

(Last Modified on January 23, 2018)

Each institution must complete a State of Georgia DOL Separation Notice for each employee upon termination of employment regardless of the reason for separation. This is not applicable to student employees.

For a Single Employee Termination, form DOL-800 must be utilized as the separation notice. The institution should provide the Separation Notice to the employee at the time employment ceases. If the employee is no longer available at the time employment ceases, the notice should be mailed to the employee’s last known address within three (3) days of the date separation occurred or became known to the employer.

If 25 or more employees separate on the same day for the same reason, a Multiple Employee Termination situation exists and form DOL-402 should be used for separation notice reporting. The institution must provide this form directly to the GA DOL within 24 hours of the date of separation.

The OneUSG Connect system has a report that can be utilized to produce the DOL-800.


5.2.6 Jury or Court Duty

(Last Modified on January 23, 2018)

As provided in the Time Away From Work, Voting Leave and Other Miscellaneous Leave, section in the USG’s HRAP Manual, regular employees shall be granted leave with pay for serving on a jury or as a witness. If the courts provide payment to the employee for serving, the amount is generally considered to be reimbursement of expenses for serving and the employee is not required to remit the funds to the employer.


5.2.7 System of Record

(Last Modified on January 23, 2018)

The system of record is the authoritative data source for information.

The OneUSG Connect benefits administration third party vendor’s system is the system of record for:

  • Benefit enrollments for benefits administered by the system
  • Beneficiaries
  • Retiree demographic information
  • COBRA participants demographic information
  • Employee/retiree survivors demographic information
  • System-wide reporting of benefits data

The OneUSG Connect system is the system of record for:

  • Employment information
  • Employee payroll and salary information
  • Employee demographic information
  • Time reporting
  • Absence reporting
  • IPEDS reporting of personal services data
  • System-wide reporting of employee data
  • Personal services expenditures
  • Job code data
  • Manage faculty events data
  • Enrollments for retirement plans, savings plans, and benefits not administered by the OneUSG Connect benefits administration vendor

5.2.8 Termination Date

(Last Modified on January 23, 2018)

An employee’s termination date is the day following the last day worked or for which leave was paid.


5.2.9 Inter Institution Employee Transfers

(Last Modified on January 23, 2018)

When an employee transfers between two USG institutions, the transfer information must be entered in a specific manner to ensure that the employee’s benefits are not adversely affected. For institutions supported by the SSC, the SSC will coordinate the exchange of information and will perform the data entry in the system to minimize any negative impact for the employee. The institutions involved should utilize the SSC transfer form to verify accuracy of information entered by the SSC.


5.2.10 OneUSG Position Management

(Last Modified on January 23, 2018)

The OneUSG Connect system utilizes partial position management which allows unpaid persons of interest (ex. volunteers, contractors, etc.) to be entered in the OneUSG Connect system for proper reporting and monitoring without being entered into a position.

Multiple employees can be assigned to a position, if the position is created as a multi-incumbent position. This is normally reserved for non-benefited positions (ex. student assistant positions). Usually, benefited employees and/or employees with an FTE of 1.0 are assigned a unique position.

Each position in OneUSG Connect should have a unique funding source. The funding source is the financials/accounting system general ledger (GL) chart-field combination to which the personal services expenses are recorded.


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.


5.4.8 Tuition Assistance Program (TAP) Payroll Tax Impact

(Last Modified on January 26, 2018)

Participation in the USG Tuition Assistance Program (TAP), BOR Policy 8.2.19 and/or 8.2.19.2, may result in taxable benefits for employees. The HRAP Manual’s section on Employee Continuing Education provides information for TAP program and references additional documentation relative to the USG TAP program, including a reference to http://www.usg.edu/hr/benefits/tuition_assistance_program_tap

IRS Publications 15-B and 970 provide guidance relative to the tax impact of benefits received under the USG TAP program. (https://www.irs.gov/pub/irs-pdf/p15b.pdf) (https://www.irs.gov/pub/irs-pdf/p970.pdf)

Educational assistance benefits in excess of the IRS defined annual exclusion limits are taxable to the employee and should be reported on the employee’s Form W-2. Exclusion limits are specified in IRC Section 127. Note: The exclusion limit is $5,250 for tax years beginning after December 31, 2001.

The SSC will coordinate with the institutions to gather the value of the educational benefits and distribute the information to the appropriate institutions for documentation of any amounts that will be excluded from taxable earnings and the reporting of benefits that will be taxable.

To ensure regulatory compliance with IRS regulations, each institution’s TAP Coordinator is required to maintain a record of TAP program benefits by semester by USG TAP participating employee enrolled in classes at the institution. TAP program benefits should be based on net amounts after applying Pell grants. Participation and value will be determined after the semester’s schedule change period has ended. The TAP Coordinator should submit the information to the SSC by the published deadlines. Each semester the home institution’s TAP Coordinator should advise the participating employees in writing of the possible tax implications including the recommendation to consult their tax professional for additional guidance.

The SSC should compile the information from the providing institutions and report to the home institutions the educational assistance benefits received by the home institution’s employees. The home institution shall enter the taxable wages in the payroll system as soon as possible in order to spread any calculated tax withholding over multiple pay periods. The taxable wage must be entered prior to the end of the calendar year. The home institutions should include documentation of the education benefits, including the amounts determined to be non-taxable, in the employee’s personnel records.

If an employee terminates employment prior to the addition of the taxable educational benefits to the employee’s wages, the calculation of the tax liability should be calculated and applied to the employee’s final check. If the tax liability is not deducted from the employee’s pay, the tax liability should be treated as an accounts receivable, subject to the institution’s collection processes.


5.4.9 Common Paymaster

(Last Modified on January 26, 2018)

Under federal and Georgia state law, the term common paymaster only applies when two or more related entities concurrently employ the same individual and the employee is only paid by one of the entities. Since the institutions within the USG are related entities, the USG has applied the common paymaster concept for employees that are concurrently employed by multiple institutions. Therefore, only one institution is allowed to pay the employee at one point in time. Consult the Dual Appointment Section of the HRAP manual for additional guidance.

Employees that transfer between USG entities are considered employees of the two separate entities; therefore, they would not be considered “concurrently” employed and the common paymaster rules would not apply. The balances for FICA, OASDI, and state unemployment are separate for each entity.

Entities within the USG that have implemented the OneUSG Connect system utilize a common ID to maintain employee balances for select limits, such as Section 403(b), Section 457, etc. This approach assists institutions and employees in monitoring year-to-date maximum contributions.


5.6 Employee Compensation System(s) Security

(Last Modified on January 30, 2018)


5.6.1 Data Access and Segregation of Duties

(Last Modified on January 30, 2018)

Each institution is responsible for the security of their employee compensation system(s) and for the establishment of access to the system.

To enhance security of the employee compensation system data and to reduce operational risks associated with personal service expenditures, each institution, as well as the SSC, should:

  • provide employees access to the employee compensation system at the appropriate level to perform their job duties and/or maintain their personal employee information,
  • segregate transaction initiation (i.e. hiring an employee, time entry), transaction processing (i.e. job record updates, processing payroll) and transaction recording (i.e. posting payroll transactions in the general ledger), and
  • implement compensating controls if adequate segregation of duties is not feasible.

The OneUSG Connect system utilizes security roles and permission lists to aid in the proper access to data and segregation of duties. Employees should be assigned the OneUSG Connect security role(s) necessary for the completion of their job duties. Institution or System Office employees outside of the human resources and/or payroll offices should only be assigned OneUSG Connect access required to accomplish their job duties. For example, an academic affairs office employee responsible for reporting faculty credentials should have read access only.

The SSC should separate the following services if provided for institutions:

  1. HR Data Entry/Benefits Data Entry
  2. Payroll Processing, and
  3. Money Movement (between USO, Institutions and Vendors) and Accounting Services (GL JE creation, reconciliations, etc.)

The system access of employees that are on an extended leave of absence should be reviewed to determine appropriate access to the system, if any, during the extended leave. If an employee with practitioner or managerial access is on extended leave, a similar determination should be made as to appropriate access during the extended leave. The length of the absence and the reason for the absence should be considered in making the determination.


5.6.2 Employee Compensation System(s) Security Administration

(Last Modified on January 30, 2018)

The primary and backup Security Administrators (SA), who are appointed by the CBO of each institution, are responsible for ensuring that the appropriate level of security is awarded to the practitioners at their respective institutions. The SA should identify access required for the operators ensuring compliance with the federal and state regulations, as applicable, and USG policies and procedures. For SSC supported institutions, security access should be validated locally for all requested access before submitting the request to the SSC.


5.7.1 OneUSG Connect Combo Codes: General Ledger Chart Fields

(Last Modified on January 30, 2018)

For OneUSG Connect institutions, combo codes are a name for the full general ledger chart string that is utilized for an expenditure (similar to payroll distribution codes and speed types). The combo code alleviates the need to enter the full chart string. A combo code should only be used to represent one specific full chart string. If any chart field component of the full chart string changes, a new combo code should be established in Financials. Multiple combo codes cannot reference the same full chart string.

Scenario 1: ALLOWED IN OneUSG Connect

COMBO CODE DEPT PROJECT FUND PROGRAM CLASS
XYZ 0102100 10000 11100 11000
ABC 0102100 10500 11100 11000

Scenario 2: NOT ALLOWED IN OneUSG Connect

COMBO CODE DEPT PROJECT FUND PROGRAM CLASS
XYZ 0102100 10000 11100 11000
ABC 0102100 10000 11100 11000
Issue: multiple combo codes referencing the same full chart string.

Scenario 3: NOT RECOMMENDED IN OneUSG Connect

COMBO CODE Effective Date DEPT PROJECT FUND PROGRAM CLASS
XYZ 07/01/2016 0102100 100 20000 11100 11000
XYZ 10/01/2016 0102100 101 20000 11100 11000
Issue: Same combo code referencing different full chart strings.

An institution cannot elect to use multiple combo codes for one full chart string (Scenario 2 above).

If an institution does not follow the recommended best practice and uses the same combo code for different full chart-field configurations (Scenario 3 above), the institution must implement alternate procedures for correction of prior expenditures and the correction of encumbrances. (Consult the OneUSG Connect SOP for more detailed guidance.) Other processes (currently unidentified) may also be negatively impacted by breaking the one to one relationship between combo codes and chart-field combinations.


5.7.2 OneUSG Connect Funding (General Ledger Distribution)

(Last Modified on January 30, 2018)

OneUSG Connect utilizes two types of departments: HR Departments and Financials Departments. The HR department defines the institution’s organizational structure. The Financials department is a cost center. There is not a one to one relationship between the HR department and the Financials department but in many cases they are one in the same.

The institution’s HR department is maintained in the OneUSG Connect system. The HR department may not directly correspond to the institution’s Financials department.

The institution’s Financials department is maintained in the institution’s financials system and is utilized by OneUSG Connect as a component of the combo code for usage in the GL distribution processes. (Reference Section 5.7.1 for more information for combo codes.) Financials departments (cost centers) are not loaded to the OneUSG Connect system as HR departments.

The OneUSG Connect Department Budget Table (DBT) is the primary location for designating the funding source for personal services expenditures. The funding source is the financials system general ledger chart-field combination to which the personal services expenditures are recorded. DBT is defined by the institution’s HR department. A combo code is designated on the DBT for each HR department, and for positions within an HR department. The combo code references the Financials department.


5.7.3 General Ledger Corrections for OneUSG Connect System Transactions

(Last Modified on January 30, 2018)

Since the OneUSG Connect system is the system of record for personal services, corrections needed for OneUSG Connect personal services transactions should originate in the OneUSG Connect system. There are two methods to make these corrections in the OneUSG Connect system: Direct Retroactive Distribution (Direct Retro) and Budget Retroactive Distribution (Budget Retro).

5.7.3.1 OneUSG Connect Direct Retroactive Distributions (Direct Retro)

Direct Retros are used to redistribute funding (credit previously expended chart string and debit correct chart string) without making changes to the specified funding on the department budget table. This would be for one time corrections and would not be available for any future or retroactive payments from the department. Reference the OneUSG Connect SOP PRA-CA-114-PR-003 for examples and more detailed information.

5.7.3.2 OneUSG Connect Budget Retroactive Distribution (Budget Retro)

Budget Retros are utilized in OneUSG Connect when the original funding, as established on the department budget table, has been determined to be incorrect. Budget Retros will automatically make corrections for all previously distributed (transactions recorded in the general ledger) transactions based upon the effective date of the funding change through the next effective date of a change to the department budget table. The change will be available for any future retroactive payments that may occur which helps to ensure the distribution issue does not continue. Budget Retros are only utilized for changes within an OneUSG Connect HR department. If the change is between OneUSG Connect HR departments a direct retro must be utilized. Reference the OneUSG Connect SOP PRA-CA-114-PR-002 for examples and more detailed information.


(Last Modified on January 30, 2018)

Select tables within the OneUSG Connect system will be configured with audit capabilities to identify changes as well as to identify who made the changes.

Position Funding

The department budget table (which established position funding) will be configured to maintain changes as well as who made the changes. Institutions should periodically review the person(s) responsible for making changes to the position funding table to ensure they are authorized personnel.

GL Actuals

The pay earnings distribution, the pay deductions distribution, and the pay tax distribution tables will be configured to maintain changes as well as who made the changes. Institutions should periodically review the person(s) making changes to the GL Actuals table to ensure they are authorized personnel.


5.7.5 OneUSG Connect Suspense Account

(Last Modified on January 30, 2018)

The OneUSG Connect system utilizes a suspense account for payroll related transactions for which the system cannot identify a general ledger distribution account. The institution should review the suspense account after each payroll and make the necessary correction for any expenditures that posted to the suspense account.


5.7.6 Benefits and Payroll Liabilities Reconciliation

(Last Modified on January 30, 2018)

A benefits and payroll liabilities reconciliation should occur at a minimum on a monthly basis. The benefits reconciliation process should include the following:

  1. Benefits Reconciliation (premium paid to provider reconciled to payroll deduction/expense)
  2. Institution General Ledger Activity to Payroll System Activity
  3. Listing of cumulative reconciling items by person for each payroll liability account

The OneUSG Connect benefits administration vendor will provide an interface file for the premiums paid to the providers by employee. Each institution should use this file to reconcile to the amounts processed by payroll.

Reconciling items will occur for deductions/expenses taken in accordance with the accelerated deduction schedule for applicable employees, as discussed in BPM Section 5.1.4, Withholding Schedules for Academic Year Contract Employees. By the end of July, these reconciling items, which are commonly referred to as 7/5th items should be eliminated.

The USG Benefits Reconciliation Module is the preferred/recommended method for institutions to perform the benefits reconciliations.


5.8.1 Payments of Payroll Liabilities

(Last Modified on January 30, 2018)

Each institution is responsible for paying the payroll related liabilities (employer and employee), including net pay. For each payroll processed, the institution shall ensure there are sufficient funds in the institution’s designated bank account(s) to cover the total payroll liabilities.

For OneUSG Connect institutions, the SSC shall initiate an electronic funds transfer for the institutions’ liabilities for net pay, taxes, garnishments, and Flex Spending Accounts (FSA) two business days prior to the pay date.

OneUSG Connect on-demand/emergency disbursements require an additional electronic funds transfer. Once the on-demand/emergency disbursement is confirmed, the SSC shall notify the institution of the funding amount. The funding date will be the date of the on-demand/emergency disbursement.


5.8.2 Employee Net Pay

(Last Modified on January 30, 2018)

Each institution is required to disburse net pay in accordance with their payroll system configuration.

For OneUSG Connect institutions, the SSC shall submit the net pay related files to the University System Office’s bank two business days prior to pay date. The bank shall process the ACH file for direct deposit which includes the information for pay cards. The bank shall print the paper checks for the pay check file received and mail the checks via US mail by the pay date. The bank will create the positive pay file and upload into the applicable banking software.

The SSC will initiate a same day ACH for on-demand/emergency disbursements, or if necessary will print a paper check and deliver via US mail on the disbursement date.


5.8.3 Payroll Taxes

(Last Modified on January 30, 2018)

Each institution is required to disburse taxes in accordance with federal, state, and local regulations.

For OneUSG Connect institutions, the third party tax services vendor shall initiate an electronic funds transfer from the University System Office for funding federal, state and local taxes one business day prior to pay date. The third party tax services vendor shall submit funds, related files and/or reports to the appropriate tax agencies in accordance with the tax agencies’ filing requirements on, or prior to, the established deadlines and in accordance with the tax services vendor’s service level agreement with USG.


5.8.4 Garnishments

(Last Modified on January 30, 2018)

Each institution is required to remit garnishments in accordance with federal, state, and local regulations as well as in accordance with the garnishment order received.

For OneUSG Connect institutions, the third party garnishment services vendor shall initiate an electronic funds transfer from the University System Office for funding garnishments one business day prior to pay date. The third party garnishment services vendor shall submit funds, related files and/or reports to the appropriate garnishing agencies in accordance with the garnishing agencies’ filing requirements on, or prior to, the established deadlines.


5.8.5 Voluntary Retirement Plans: Tax Sheltered Annuities (TSA) excluding Peach State Reserves

(Last Modified on January 30, 2018)

For SSC supported institutions, the USG utilizes a third party retirement plan services vendor for remittance of funds and files for voluntary retirement plans excluding Peach State Reserves plans. The SSC shall pull the funds from the institutions one business day prior to pay date and submit funding to the third party retirement plan services vendor on pay date. The third party retirement services vendor shall submit funds, related files and/or reports to the appropriate providers in accordance with federal and state regulation as well as the providers’ filing requirements on, or prior to, the established deadlines.


5.8.6 Voluntary Retirement Plans: Peach State Reserves (457 and 401(k))

(Last Modified on January 30, 2018)

Each institution is responsible for the remittance of funds and files for Peach State Reserves voluntary retirement plans. The institution shall submit funds, related files and/or reports to the Peach State Reserves in accordance with federal and state regulation as well as Peach State Reserves’ filing requirements on, or prior to, the established deadlines.


5.8.7 Mandatory Retirement Plans: TRS, ERS and ORP

(Last Modified on January 30, 2018)

Each institution is responsible for the remittance of funds and files for mandatory retirement plans.

For SSC supported institutions, the SSC acts as the common remitter for the USG mandatory retirement plans including TRS, ERS, and ORP. The institutions are responsible for validating retirement plan remittance information in accordance with the published SSC deadlines. The SSC shall submit files and/or reports to the appropriate agency in accordance with the established filing requirements on, or prior to, the established deadlines. The SSC shall pull the funds for all mandatory retirement plans from the institutions for retirement plan remittances.

For ORP, the SSC shall pull the funds one business day prior to pay date and submit funds to the ORP vendor on pay date.

For TRS and ERS, the SSC shall pull the funds from the institutions monthly by the established SSC deadlines, generally the second business day of the following month. TRS and ERS will pull funding from USO each month prior to the 10th of the following month.


5.8.8 OneUSG Connect Benefits Administration Benefits

(Last Modified on January 30, 2018)

For the premiums for benefits administered by the OneUSG Connect benefits administration vendor, the benefits administrator shall provide each institution an invoice on or before the 5th business day of the subsequent month and shall draw funds from each institution 3 business days before the 15th of the subsequent month.

The OneUSG Benefits Administration vendor shall submit payments to the carriers on the 15th of the subsequent month.


5.8.9 Institution Specific Voluntary Benefits and/or Payroll Deductions

(Last Modified on January 30, 2018)

Each institution is responsible for submitting funding, files and/or reports for institution specific voluntary benefits to the benefit providers based upon the provider’s specific requirements.


5.8.10 Flex Spending Accounts (FSA)

(Last Modified on January 30, 2018)

For non OneUSG Connect institutions, each institution shall submit FSA deductions to the University System Office (USO) by the 5th of the following month. Adjustments to the FSA deduction amounts, as deducted through payroll, shall not be made unless there is a substantial error. Institutions shall allow corrections to flow through the subsequent payroll and FSA deduction submission to the USO.

For OneUSG Connect institutions, the USO initiates an electronic funds transfer from the institution for each payroll.


5.8.11 Health Savings Accounts (HSA)

(Last Modified on January 30, 2018)

The USG utilizes a third party vendor for the administration of the USG Health Savings Accounts (HSA). The HSA vendor pulls the funds for the HSA deductions from each institution monthly for the HSA deductions.


5.8.12 Health Reimbursement Accounts (HRA): Medicare Eligible Retirees

(Last Modified on January 30, 2018)

The USO pulls funds from the institutions monthly for retiree HRA contributions, based upon the institutions retirees’ enrollment in an exchange Medicare supplemental plan.

If a retiree is enrolled in a plan at any point in a calendar year, the institution is responsible for funding the full amount of the HRA contribution.


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