|STATE OF CONNECTICUT|
|WILLIAM E. CURRY JR.
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
|EDWARD J. FORAND
MEMORANDUM NO. 91-48a
December 9, 1991
TO THE HEADS OF ALL STATE AGENCIES
|Attention:||Chief Administrative and Fiscal Officers, Business Managers, and Payroll and Personnel Officers|
|Subject:||Change in Method of Payment for Reportable Employee Allowances/Payments|
Memorandum No. 91-48, dated November 1,1991, advised agencies of the change in method of payment for reportable employee allowances/payments from ACCOUNTS PAYABLE to PAYROLL SERVICES. Memorandum No. 91-48a, effective December 27, 1991, details the payment and payroll procedures for employee allowances.
All of the allowances/payments discussed in this memorandum are considered wages with the exception of moving expenses. As required by Code Section 162 of the Internal Revenue Code, Federal Employment Taxes, State and Federal Income taxes must be withheld. Additionally, with the exception of moving expenses, all allowances/payments processed on the payroll are recognized as salary for retirement purposes for all retirement systems except for the Teachers' Retirement System (TRS). Accordingly, they are subject to retirement contributions appropriate for the individuals' retirement system and plan membership.
As with all wages paid from Federal and Private grants and funds other than the General Fund, these payments will be subject to fringe benefit cost reimbursement.
Since subject payments will be processed on payroll, charges will reduce the unencumbered balance of the appropriation. Therefore, no commitments should be made.
I. PAYMENT PROCEDURES
Reportable employee allowance/payments, as listed below, must be paid through PAYROLL SERVICES for the pay period beginning December 13, 1991 (check date January 10, 1992). Please note: The check date was incorrect in Memorandum No. 91-48. It is the responsibility of each State agency to develop internal procedures between the Business Office and the Payroll Office to transmit the applicable information in a timely manner.
|Grant Payments *||R1; Amount; D/OE Code 1N|
|Moving Expenses*||R3; Amount; D/OE Code 1P|
|Attendance Awards *||R1; Amount; D/OE Code 1R|
|Child Care *||R1; Amount; D/OE Code 1S|
|Reportable Tuition*||R1; Amount; D/OE Code 1T|
|* Refer to Section I-C below.|
|EXAMPLE:||Assume a member of the P-5 bargaining unit travels for three (3) days. In example (1) she traveled to a high-cost area; in example (2) she traveled to an area not considered high-cost. In example (3) the employee attended a one-day conference and traveled from 8:00 a.m. to 6:00 p.m. out of state and was entitled to a lunch allowance in a location that is not high-cost.|
|Daily Rate||(3) Entitlement to|
|(1) High-Cost||(2) All||Lunch Allowance|
|1.||Meal Rate||$ 30.00||$ 30.00||$ 8.00|
|3.||Taxes on Meals (5.5% rate)||1.65||1.65||.44|
|4.||Undocumented Lump Sum||5.00||5.00||---(after 2 days)|
|5.||Premium City Supplement||6.00||---||---|
|6.||Hotel Gratuities (3 or more||1.00||1.00||---|
|7.||State Per Diem Rate||$ 48.15||$ 42.15||$ 9.64|
|Federal Per Diem Rate||$ 34.00*||$ 26.00*||$13.00*||(1/2 of $26.00)|
|Amount to be paid on payroll||$ 14.15/day||$ 16.15/day||$ -0-|
|Days of Travel||x 3||x 3||--------|
|Total Amount to be paid|
|through payroll||$ 42.45||$ 48.45||$ - 0 -|
* Amount to be paid through Accounts Payable . In addition, reimbursement for taxis, other ground transportation, parking charges, tolls, and telephone/telegraph charges should also be paid through Accounts Payable.
- - Two CO-17XP, Employee Vouchers must be completed. An original CO-17XP for the items that are non-reportable and one CO-17XP for the items that are reportable. Photocopies of an original CO-17XP are unacceptable.
- - On the CO-17XP with the reportable amount the employee number, the
- payroll unit level 2 code and D/OE Code must appear in the remarks section.
- - Submit both CO-17XP forms, duplicate copies and two copies of the supporting documentation with CO-19, Expenditure Batch Header, to the Comptroller's Business Office for approval and payment. The CO-19 should only reflect the dollar amount of the items that are non-reportable. The reportable amount will be processed through the payroll system and appear in the employee's paycheck.
- - CO-17XP, Employee Voucher, with two copies of all documentation attached showing the reportable amounts in the reportable section of the CO-17XP. The employee number, payroll unit level 2 code, and D/OE Code must appear in the remarks section of the form.
Employee Suggestion Awards are reportable as wages. The Department of Administrative Services will be issuing new instructions on the processing of these awards. The new procedures will be issued by January 1, 1992. If your agency has not received the instructions by that time, please contact the State Suggestion Program at 566-5669.
II. NEW CHARACTER AND MAJOR OBJECT CODING
|01 230||Allowance and reportable payments to employees - State Retirement System:|
|Allowances and reportable payments to employees based on collective bargaining agreements for members of the State Retirement System.|
|01 240||Allowances and reportable payments to employees - Alternate Retirement Plan with NO Social Security:|
|Allowances and reportable payments to employees based on collective bargaining agreements for members of the Alternate Retirement Plan with no Social Security coverage.|
|01 250||Allowances and reportable payments to employees - Alternate Retirement Plan with Social Security:|
|Allowances and reportable payments to employees based on collective bargaining agreements for members of the Alternate Retirement Plan with Social Security coverage.|
|01 260||Allowances and reportable payments to employees - Teachers Retirement with NO Social Security:|
|Allowances and reportable payments to employees based on collective bargaining agreements for members of the Teachers Retirement System with no Social Security coverage.|
|01 270||Allowances and reportable payments to employees - Teachers Retirement with Social Security:|
|Allowances and reportable payments to employees based on collective bargaining agreements for members of the Teachers Retirement system with Social Security coverage.|
|05 360||Employee Moving Expense:|
|Payments made to employees for moving expenses. Payments are to be made on payroll only. Third party payments are unacceptable. Should not be charged to Personal Services - 001.|
|Example:||Processing a shoe allowance for an employee in the State Retirement System would be: D/OE code 1E, Character Object Coding 01 230.|
III. CENTRAL ACCOUNTS PAYABLE PROCEDURES
IV. ALLOWANCES PAID BY COLLECTIVE BARGAINING AGREEMENT THAT WILL BE AFFECTED
|Clothing and Cleaning||NP-1||19.8|
|Daily Auto Usage Fee||P-2||39.2|
|Premium City Supplement||P-5||25.10(b)|
|Lump Sum Undocumented Out of State||P-5||25.10(a)|
|Community Colleges||21.6 (c)|
WILLIAM E. CURRY JR.
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