OSPS E-News ~ Clearing Net Pay Negatives At Year End

[Announcements from OSPS to the users of the Oregon State Payroll Application]

Clearing Net Pay Negatives At Year End

 

Net pay negatives occur when you change the basis of a prior payroll
calculation.  The change lowers agency payroll costs and from your
perspective resolves a payroll error.  But, it does not recover funds
previously paid from the Joint Payroll Account.  A net pay negative
means somebody owes the money to the Joint Payroll Account.  It might be
the agency, might be the employee or it might even be a creditor for
whom you arranged a garnishment withholding and then changed the P070
between Run 1 and Run 2.  

 

Your exception reports disclose all cases of net pay negatives - before
the final payroll run.  That is your best chance to correct them.  We
don't report net pay negatives to you until they have remained through
the following Run 1, which is an indicator that the employee is either
gone or on leave without pay.  

 

We ask that net pay negatives be cleared in a reasonable amount of time
- especially at year end.   If you are certain that an existing net pay
negative will be cleared in full from December Run 1 paid January 1, we
are OK with that.  If you are not certain, you need to clear them no
later than November Run 2.  

 

Clear them and repay the Joint Payroll Account by November Run 2 if the
employee is:  

 

P      Separated

P      Deceased

P      On military leave without pay

P      On an unpaid SAIF claim

P      On leave-without-pay - even if FMLA or OFLA

P      If the negative relates to self-pay insurance 

 

And don't forget - a net pay negative might mean that an employee's W-2
will be understated.  In the process of clearing the negative, you will
have to correct that, as well.  The W-2 must accurately depict the
amount of pay received by the employee.  

 

Resources to help you: 

 

PowerPoint from 2009 year end:
http://www.oregon.gov/DAS/SCD/OSPS/docs/pubs/yearend/2009/collectoverpay
ye.ppt

 

Handout from 2008 gross pay corrections presentation:
http://www.oregon.gov/DAS/SCD/OSPS/docs/pubs/yearend/LWOPNotRepaid.pdf

 

 

Questions?  Please ask them before 2009 is closed - December 9, 2009.  

 

Oregon Statewide Payroll Services Staff
DAS State Controller's Division
Phone:  (503)378-6777     Fax:  (503)378-3518
OSPS Help Desk:  mailto:OSPS.Help at das.state.or.us

Visit Our Online Resource Center: http://oregon.gov/DAS/SCD/OSPS


 

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