PHAREDS – Payroll Accounting Adjustment

Overview

Payroll accounting adjustments (or payroll redistributions) are changes in the BANNER labor distributions which may occur because of a change in grant funding, or because of other decisions within the department regarding how the job is to be funded.  Payroll accounting adjustment processing by departments is limited to the current open quarter of the fiscal year and may not be retroactive past that period.  Only with approval, after the quarter is closed, may a payroll accounting adjustment be processed by SPS or the Payroll Office.  See memo of policy change from Moira Kiltie and Laura Hubbard to campus.

(OPE) Other Payroll Expense or Blended OPE Expense (account 109XX) is automatically redistributed along with the labor expense.

Process (paper or on-line)

The timing of the desired change (redistribution within the current quarter, redistribution for a prior quarter, present labor distribution change, and future labor distribution change) determines who will be making the change and the type of processing options and formats available.

On Paper Form

Departments may choose to use the PAW to calculate FTE or budgeted amounts when effective dates change frequently during an employee's period of appointment.  The PAW may be attached to the PRF or sent in separately to the Payroll Office.

Online Processing

  • Banner form PHAREDS      PHAREDS Handout
  • Banner form PHAHOUR      (during time entry)

Reference Charts

  Present Pay Future Pay Redistribution within
Active Quarter
Paper form or Online During Time Entry Period PRF, SEF, or PAA with Future
LD box checked
PAA or PHAREDS
Optional Form   PAW  
Processed By By Department By Payroll Payroll or Department
Redistribution for a Prior Quarter Grant Related All Other Funds (including work-study)
Send PAA directly to: SPS Payroll Office
Include SPS's Cost Transfer
Justification Form
 
Processed By SPS Payroll or Financial Aid

Periods To Be Adjusted

1.  Past Pay (within the current active quarter)

Departments that wish to make a payroll accounting adjustment that affects past pay should submit a completed HRIS Payroll Accounting Adjustment form to the Payroll Office or process the payroll accounting adjustment online in Banner form PHAREDS.    

2.  Past Pay (from a previous quarter)

If desired adjustments are prior to the beginning of the active quarter, departments can no longer process the adjustments via PHAREDS.  Departments will need to request prior quarter adjustments through SPS (for adjustments to grant funds) or BAO Payroll (for all other funds).  The requests will require a written justification and an authorization from the Dean, Director, or Department Head.  The signature of the P.I. will also be required on grant funds.  The department will need to complete a PAA form with justification written in the Remarks section of the form. Refer to our PHAREDS Deadlines Calendar.

3. Present Pay

Departments can override the labor distribution for the current payroll during the time entry window using the distribution block (bottom block) of the PHAHOUR form.  You can add or remove indexes and change the hours or percent of monthly pay distributed to each index.  Labor distribution should not be changed in PHAHOUR for GE appointments.

4. Future Pay

To change the default labor distribution that you see in the Employee Verification form (PWIVERI),  fill out a Payroll Request Form PRF and submit it to the Payroll Office.  (or SEF for student payroll)

If you know that the labor distribution will change during the fiscal year you might prefer to use the Payroll Accounting Web Page (PAW) which generates a report of labor distributions and effective dates that can be printed, signed and submitted to the Payroll Office.  The PAW also calculates budget amounts for each index.

If the labor distribution is must be changed for both past and future payrolls use Version I PAA form, Option C.

Labor Distribution Tips

1.   Generally, when preparing a SEF, PRF, PAA, or PAW form to establish or change an employee's labor distribution it is entered as follows:

Index, Account and Labor Distribution Percentage of gross monthly pay.

Index Fund Org Account Program Activity %
ABCDE     10102     100

2.  If you wish to include an Activity code that is not defined as part of an Index, Do NOT include the Index in the labor distribution.  This situation may occur when a department is using an Activity code to track cost sharing on grant funds.

Fund, Org, Account Program, Activity and Labor Distribution Percentage of Gross Monthly .

Index Fund Org Account Program Activity %
  20000 123456 10102 01xxx ABC 1

PAA Examples

The PAA paper form can be filled using any of the following three options:

Option A Fred's pay was distributed to three indexes (25%, 25% and 50%) in Jan, Feb and Mar 17.  The % spread was ok however, one of the indexes that Fred's pay was distributed to was incorrect.  I can ask the Payroll Office to replace the bad index with the correct one for all three past payrolls at once using Option A on the PAA form.  All payroll expenses that were charged to the bad index during the specified payrolls will be reversed and charged instead to the correct one.

Example PAA using Option A

Option B Looking at PWIEMPL or PWIFOAP I see that $1000 of Fred's Jan 17 pay (Pay No 1) was charged to Index DeptA.  I really intended for $250 of this to be charged to index DeptB.   I can ask the Payroll Office to move $250 dollars from index DeptA to index DeptB using Option B on the PAA form.

Example PAA using Option B

Option C Looking at PWIVERI and PHAHOUR I see that Fred's pay was distributed to one index (100%) in Apr 17 through Jun 17.  I really intended for her pay to be split 80% to index DeptA and 20% to index DeptB beginning Apr 99 forward.  I can ask the Payroll Office to substitute the correct labor distribution for both past and future payrolls using option C of the PAA form.

Example PAA using Option C

Option C Cost Sharing  An employee was appointed January 1st for a 10% cost sharing obligation.  It is now July and the employee has been paid 100% on department index DeptA.  We will fix the past and future labor distribution.

Example PAA for cost sharing using Option C

Option C Cost Sharing An employee was appointed January 1st for a 10% cost sharing obligation.  It is now July and the employee has been paid 50% on department index DeptA and 50% on department index B.  We will fix the past and future labor distribution.

Example PAA for cost sharing using Option C

PHAREDS Training

Departments should have someone trained in the use of BANNER's online accounting adjustment form PHAREDS.  Upon completion of training, departments can use PHAREDS instead of sending the a PAA form to the Payroll Office.  For more details see our PHAREDS Handout from our Online Payroll Redistributions class.

The signature of the P.I. is required on the source document that is used to input a payroll redistribution on PHAREDS.  The PAA form or a spreadsheet (for example) may be used as source documents for inputting, and must be retained for audit purposes.

Federal Grants

Transfers of payroll expense to or between federal grants and contracts which represent corrections of clerical or bookkeeping errors must be made promptly after the errors are discovered. Transfers must be supported by documentation which contains a full explanation of how the error occurred and a certification of the correctness of the reassigned charge. An explanation which merely states that the transfer was made "to correct error" or "to transfer to correct project" is not sufficient. The transfer must be supported by documentation which contains a full explanation and justification for the transfer and a certification of the propriety of the transfer by the principal investigator, project director, or other responsible unit official.

Transfers exceeding 90 days after the original cost posting or from grants that are in a deficit position require approval of Sponsored Projects Services . All pertinent documentation regarding the transfers of costs must be made available to an auditor at the time of the audit. Cost Transfer Explanation Form (SPS website)

Questions and Answers

Q.  What do I do if the principal investigator will not be in town to the sign the PRF for several weeks?

A.   Have the department head sign the PRF.  It would be helpful to have e-mail correspondence supporting the approval by the P.I.  You may also submit a countersigned copy to the Payroll Office upon the return of the P.I. to campus.

Q.  What do I do when the employee's pay is supported by a number of grants and more than one P.I?

A.  Have the P.I. in charge of the grant with the greatest FTE sign in the signature block at the bottom of the form; all other Principal Investigators should initial next to the relevant labor distributions on the PRF, SEF, PAA, and on the supporting documents for the PAA form if processing by PHAREDS.