Handle payroll funding errors and overpayments with these PET best practices
From time to time, a paycheck is processed with incorrect or expired funding. Fortunately, you can use a Payroll Expense Transfer (PET) to update the funding source for a given paycheck after payroll processes.
When using PETs, there are a few best practices to keep in mind to ensure correct accounting, a smooth fiscal year-end and collaboration between departments.
Check the payroll calendar to find the date that the payroll registers are ready.
Payroll Register Accounting Detail
The monthly payroll registers are generally available before the pay period pay date. Use the HCM WorkCenter Resources Payroll Register Accounting Detail query to download paycheck data to Excel.
|Payroll Register Acct Detail
|This query returns paycheck information and an earnings breakdown with accounting details by PPE.
- Filter for suspense SpeedTypes and identify any other funding changes. Removing payroll from suspense clears unnecessary, unfunded liability and smooths effort reporting.
- This report can also help identify over- and under-payments or other incorrect pay. Report pay pulls by the deadline and enter adjustments in the off-cycle to correct the pay in the same pay period.
- Aim to report payroll corrections and process and post PETs in the same month as the original payroll.
HRGL Request — Payroll Expense Transfer (PET)
If funding alone must be updated for a paycheck after payroll processes, use the HRGL Request to process a Payroll Expense Transfer (PET). Consistent reallocations in a PET make for easy calculations and funding verification.
Here are a few tips to make the most of the PET the process:
- Wait until the payroll registers are ready to create a PET for the current payroll. Attempting to create a PET before post-processing completes will cause the PET to use account code 444444 and a new PET will be required to correct it.
- An entire month’s paycheck reflects an entire month’s effort. Consider the effort on a single position, or as the sum of each position when an employee has more than one position on a paycheck.
- All earn codes that reflect a position’s monthly salary should reflect the same 100% funding distribution — including earnings, leave, and dock codes — consistent with the effort.
- Additional positions may reflect different effort than the primary position, and funding should be applied consistent with each position.
- Additional pay may have separate funding and may post taxes and deductions differently than regular pay.
- There may be more than one distribution at 100%.
- Was there a mid-month funding change? The PET page will separate each funding end-date in each pay period into a distribution at 100%.
- Was there more than one position? The PET will separate each position into distributions at 100%.
- Was there additional pay or recurring pay? The PET will separate each additional pay into a distribution at 100%.
- Use the funding template to easily distribute new funding.
- Use the check boxes next to the lines of the check under the new distribution table to copy to the template for easy updates to an existing distribution.
- Apply the updated funding distribution to the entire paycheck, or one or more sections with a distribution of 100%.
- Does the new funding distribution also apply to the next payroll?
- Check the box “Apply to Future” on the first page in the Earnings tab.
- The effective date of the next pay period displays. This feature creates a new funding row in the department budget table (DBT) with this effective date upon clicking save/submit.
- Check the box “Apply to Future” on the first page in the Earnings tab.
- Take advantage of the ability to provide comments and attachments that will create a clean audit trail and less confusion in the future.
- When creating a PET, work with other units to coordinate funding updates to avoid multiple PETs on the same paycheck by different units.
- Use the AD HOC approval feature to send the PET to funding collaborators for approval.
Grant Project Funding
PETs can use grant funding with projects in pre-spending, open and ended statuses, but not in reporting or closed statuses.
- Grants with projects in reporting or closed statuses must be reopened if the funding will be used in a PET.
- Reach out to your campus controller’s office or office of grants and contracts or sponsored programs for assistance with these scenarios.
Are you reconciling overpayment returns to a net sum zero?
- On the PET search page, use the employee ID and earnings period dates.
- The original check in the original pay period will display.
- The checks that processed the returned overpay will display with the pay period of the return.
- Align the overpayment and the returned funds to the same SpeedTypes for a net sum zero.
Manual Check Adjustments
Sometimes job data is incorrect when a paycheck is created. To correct the pay, job data must be updated retroactively. A manual adjusted check is processed for the previous incorrect earnings period with the new retroactive job data in the current pay period.
If a PET is required for manual check adjustments, search by using the employee ID and earnings period.
- The original paycheck in the former pay period will display.
- The manual adjustment in the current pay period will display using the current, corrected job data.
- Note that an account code may change if there was a job code change (i.e., from an earnings job code to a stipend job code).
Reach out for Campus Controller Assistance
Your campus controller’s office can assist with some PET activities.
- Controller’s offices can assist with grant projects that are in reporting or closed status and may need to be reopened temporarily to process a PET.
- Controller access can adjust account codes appropriately. Ensure a valid reason exists to change an account code. The account codes will process according to the rules in HCM, so be sure job data is correct and manual checks processed before changing account codes.
- Does your PET have restricted earn codes or taxes and deductions that require a funding change such as Earnings Not Paid (ENP)? Your campus controller’s office can also help with these.
Other PET Considerations
As collaboration across campuses increases, so does cross-campus funding. If a PET is required for a paycheck with cross campus funding, review the job aid. Use ad hoc approvers to keep cross campus funders appraised of funding changes. Reach out to your campus controller’s office or the System HRGL team for questions or concerns.
Effort posting to grants will update after a PET. Employees must re-certify ePERS effort if a PET changed a grant distribution after an employee’s ePERS certification.
All current fiscal year paycheck earnings should be posted correctly before fiscal year end on June 30. The last chance for PETs to post in the current fiscal year is with the fiscal year end second close deadline.
Review payroll after each processing period and use the tools to correct paychecks and funding, including the payroll expense transfer. Processing PETs monthly keeps payroll funding accurate and makes year-end close a breeze.
Need extra help?
Additionally, you can find HCM queries here:
- Log into the employee portal.
- Open the CU Resources dropdown menu and click Business Tools.
- Select the HCM tile and choose HCM Community Users from the drop-down menu.
- Click the HCM WorkCenter tile.
- Select the Resources tab and click the query you desire.