Annual Payroll

Annual employees are non-classified and paid a specified salary (contract amount) over a specified time frame.  The earnings are usually not associated with hours.  The Time Sheet Required indicator must be 'N' for the current position for the employee to receive pay for the hours worked.  This includes pay status of 'A', 'B', * 'T' and * 'X' (* only applies to pay group 20).  A time sheet should be coded for all hours if the employee has taken any leave (i.e. sick, vacation, etc.).  If a time sheet is submitted, ALL hours for the pay period must be coded.  When a time sheet is submitted, the hourly rate is usually calculated from the position/rate based on 80 (paid biweekly) or 173.3 (paid monthly) hours per pay period.  Therefore, all employees that are coded other than full time are not eligible to be paid as an annual employee.  If an active override exists and a time sheet is submitted, the hourly rate is calculated based on override amount.  The hourly rate will not be displayed on the payroll register, direct deposit pay stub or the net pay stub.
 
Note:  If a termination or Military inactivation is processing for an Annual employee, all hours for the pay period must be coded for the employee to receive pay for time worked.  Applicable payoffs will be generated by the system regardless of the time submitted.  If an employee becomes inactive or a Military inactivation is being processed, please contact the SCO Service Desk at 208-334-3100 or servicedesk@sco.idaho.gov for further instructions.
 
Because the House, Senate and Judicial annual employees do not normally submit time, their process is: 
 
Submit an IPOPS personnel action to add an override amount equal to the employee's final pay. Override effective dates will be xx/xx/xxxx.
 
After the employee is paid their final pay, House, Senate or Judicial will process the term/payoff or military inactivation on the following payroll.
 
If an employee has any other personnel changes being processed, such as a PCN change, rate change or miscellaneous change with an effective date other than the pay period begin date, an active override must be present and/or all hours for the pay period must be coded for the employee to receive pay for time worked.
 
CONTRACT PERIODS FOR ANNUAL EMPLOYEES
 
Senators and Representatives (agencies 100 and 101):  Second pay day in December to first pay day in December the following year
 
Elected Officials (agencies 120, 130, 140, 150, 160, 170 and 181):  Second pay day in January to first pay day in January the following year
 
Judges (agency 110):  July to June of the following year
 
Commissioners (agencies 300, 352, and 900):  First pay day in July to last pay day in June the following year
 
Superintendents/Head of Agency (agencies 511 and 523):  First pay day in July to last pay day in June the following year
 
Professional Staff (agency 511):  Second pay day in July to first pay day in July the following year
 
Faculty (agency 511):  Second pay day in August to first pay day in August the following year
 
If an Annual employee is hired/rehired or has any change that is effective on a day other than a pay period begin date, the override amount, start date, and end date must be coded. See examples 2 and 3 below. 
Note:  This does not apply to employees at the House of Representatives and the Senate with appointment codes 'NEL' and 'NGL'.  Newly elected and returning legislators (change reasons AO, AX, CZ, or MW) will have an effective date 12-01-20xx, as that is the start date of their term. Overrides are not required.
If it is necessary to adjust an Annual employee's pay period amount because of leave without pay, do not make any changes to the Adjusted Contract Amount. See example 4 below.
If an Annual employee is to be paid over a period of time less than 12 months, Override information is required.  (i.e. 9 month contract)  See example 5 below.
Verify the number of pay periods that fall within the contract using the payroll calendar.  Most often annual (12 month) contracts will have 26 pay periods.  However, some calendar years will have 27 pay periods for biweekly payment.
 
REQUIRED FIELDS FOR ANNUAL EMPLOYEES:
 
Time Sheet Required:  
Must be ‘N’ for the current position
Rate Indicator:
Must be ‘A’
Rate/Salary
Equals the annual/contract salary
Adjusted Contract Amount:
Equals the dollar amount the employee should receive for the current contract period.  If the position changes (new-hire, rehire, update, etc), the Adjusted Contract Amount field must be coded with an amount equal to or greater than $1.00.
Override Amount:
Equals the pay period amount to replace the normal pay period amount.  An override amount will be required on a personnel change (PCN change, rate change or miscellaneous change) with an effective date other than the pay period begin date.
Override Begin Date:
Equals the pay period begin date of the payroll the Override amount is effective.
Override End Date:
Equals the pay period end date of the payroll the Override amount is effective.
 
Note:  Both the Rate/Salary and Adjusted Contract Amount fields will be the same if the employee begins working at the beginning of the contract period.  If the employee is hired in the middle of the contract period the amounts would be different.  If there is a rate change during the contract period both fields must be updated.
 
PAYROLL PROCESS FOR ANNUAL/CONTRACT SALARY
The payroll process will calculate the pay period amount by dividing the annual salary (Rate/Salary field) by the number of pay periods to be paid.  (This process rounds to the nearest hundredth place.)  The Adjusted Contract Amount field is the total dollar amount an annual employee will be paid during their contract period. The employee will not be paid more than the amount in the Adjusted Contract Amount field.  Each time the employee is paid, the amount is accumulated into a Year-to-Date Contract Salary Paid field.  (This information can be seen on the ICS inquiry screen.)  When the Year-to-Date Contract Salary Paid equals the Adjusted Contract Amount, the Year-to-Date Contract Salary Paid accumulation is set to zero and the Time Sheet Required field is changed to ‘Y'.  An override or pay for time worked or leave will not be processed for an annual employee if the Time Sheet Required indicator is 'Y'.
 
The payroll process does two comparisons on Annual/Contract Salary employees with a Time Sheet Required indicator of 'N' each payroll for the next payroll.
 
FX- System Generated Change
 
The FX is system generated when an employee's YTD Contract Salary Paid is within one pay period amount, plus or minus $1.00, of the Adjusted Contract Amount.  The FX change reason will generate an override amount equal to the remaining contract amount with an override begin and end date of the next pay period.  The effective date of the FX is the Pay Period End Date of the payroll just processed.
 

The FX is also system generated when an annual salary employee's YTD Contract Salary Paid is equal to the Adjusted Contract Amount.  The FX change reason will update the employee's Time Sheet Required indicator from 'N' to 'Y' and zero out their YTD Contract Salary Paid amount. The effective date of the FX is the Pay Period End Date of the payroll just processed.

 
 
EXAMPLES OF SYSTEM GENERATED OVERRIDES
Last payment over annual/contract salary:
An employee in pay group 01 with an annual/contract salary of $45,000.00 (Rate/Salary Field) will be paid $1,730.77 every pay period until the 26th pay period.  If $1,730.77 was paid on the 26th pay period the employee would receive $.02 over their annual/contract salary.  Therefore, after the 25th pay period the system will generate an FX override pay period amount of $1,730.75 (45,000.00 (Adjusted Contract Amount) - 43,269.25 (25 x 1,730.77) = 1,730.75) for the 26th pay period.
Last payment under annual/contract salary:
An employee in pay group 01 with an annual/contract salary of $46,000.00 (Rate/Salary Field) will be paid $1,769.23 every pay period until the 26th pay period.  If $1,769.23 was paid on the 26th pay period the employee would receive $.02 under their annual/contract salary.  Therefore, after the 25th pay period the system will generate an FX override pay period amount of $1,769.25 (46,000.00 (Adjusted Contract Amount) - 44,230.75 (25 x 1,769.23) = 1,769.25) for the 26th pay period.
The second comparison the system does is to check whether the YTD Contract Salary Paid is equal to the Adjusted Contract Amount. The system will generate an FX change reason to change the employee's Time Sheet Required switch from a 'N' to 'Y' and then zero out their YTD Contract Salary Paid accumulation. The effective date of the FX change reason will be the Pay Period End Date of the current payroll.
Note:  When a 'FX' is system generated, the following message will be added to the employee's mainframe record 'SYSTEM GENERATED CHANGE'.
 
REPORTS - Biweekly Payroll Reports  AU444370 Contract/Salary Overrides and YTD Contract Salary Remaining Balance AU444948 are helpful tools in reviewing annual employee's payroll information.

Worksheet for Overrides and Adjusted Contract Salary Judicial Employees 

Override and Adjusted Contract Salary for Judicial Employees 

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Worksheet for Overrides and Adjusted Contract Salary Elected Officials
This worksheets must be opened in Acrobat Reader once downloaded in the web browser.
 
Worksheet for Overrides and Adjusted Contract Salary Legislators
This worksheets below be opened in Acrobat Reader once downloaded in the web browser.
 

Worksheet for Overrides and Adjusted Contract Salary all other Annual Employees

Override and ACS for Annual Employees (excluding Judicial, Elected Officials, and Legislators)

This worksheets must be opened in Acrobat Reader once downloaded in the web browser.

 
EXAMPLES OF ANNUAL/CONTRACT SALARIED EMPLOYEES
1. Annual/Contract employee hired in the middle of a contract period (pay period begin date)
 
Pay group:       
01
Effective/Hire Date:
5/16/2010 (a pay period begin date) during the contract period
Contract Period:
January 1 2010 through December 31 2010
Time Sheet required:
'N'
Rate/Salary:
$42,000.00
First Pay Date:
6/11/2010
 
The Adjusted Contract Amount would be figured as follows:
 
Divide the Rate/Salary by the number of pay periods in the contract period ($42,000 divided by 26 = $1,615.38).  $1,615.38 is the pay period amount the employee will be paid. 
 
Multiply the pay period amount by the number of pay periods left in the contract period to be paid ($1,615.38 x 15 = $24,230.70).  $24,230.70 is the Adjusted Contract Amount.
 
The Rate/Salary field is coded as $42,000.00 and the Adjusted Contract Amount field is $24,230.70.  No overrides are necessary. If time is coded, regardless of how many hours are coded, the pay period amount will not be exceeded.
 
2. Annual/Contract employee hired in the middle of the contract period (not a pay period begin date)
 
Pay group:       
01
Effective/Hire Date:
5/23/2010 (not a pay period begin date) during the contract period
Contract Period:
January 1 2010 through December 31 2010
Time Sheet required:
'N'
Rate/Salary:
$42,000.00
First Pay Date:
6/11/2010
 
Since the hire is not effective on a pay period begin date, the employee must have an override and/or a time sheet must be submitted to be paid.
 
Both an Override Amount and an Adjusted Contract Amount need to be figured as follows:
 
Divide the Rate/Salary by 2080 ($42,000 divided by 2080 = $20.19).  $20.19 is the hourly rate.
 
Multiply the hourly rate by the number of hours worked in the partial pay period ($20.19 x 40 = $807.60).  $807.60 is the Override pay period amount the employee needs to be paid on 6/11/99. 
 
Divide the Rate/Salary by the number of pay periods in the year ($42,000 divided by 26 = $1,615.38).  $1,615.38 is the pay period amount the employee will be paid.
 
Multiply the pay period amount by the number of pay periods left to be paid in the contract period (do not include pay period in which override is done) ($1,615.38 x 15 = $24,230.70).  $24,230.70 is the amount to pay the employee for the remainder of the year, not including the override amount.
 
Add the amount above ($24,230.70) to the Override Amount ($24,230.70 + $807.60 = $25,038.30).  $25,038.30 is the Adjusted Contract Amount (dollar amount the employee should be paid for the remaining contract period).
 
The Rate/Salary field is coded as $42,000.00, the Adjusted Contract Amount field is $25,038.30, the Override Amount field is $807.60, the Override Start Date field is 5/16/2010 (pay period begin date), the Override End Date field is 5/29/2010 (pay period end date).  If time is coded, regardless of how many hours are coded, the Override pay period amount will not be exceeded.
 
3. Annual/Contract employee has a pay rate change in the middle of the contract period and the middle of the pay period.
 
Note:  Whenever possible, rate changes should be effective on a pay period begin date.
 
Pay group:       
01
Effective/Hire Date:
5/23/2010 (not a pay period begin date) during the contract period
Contract Period:
January 1 2010 through December 31 2010
Time Sheet required:
'N'
Rate/Salary:
$42,000.00 and changing to $43,500.00
First Pay Date:
6/11/2010
 
Since the pay rate change is not effective on a pay period begin date, the employee must have an override and/or a time sheet must be submitted to be paid.
 
Both an Override Amount and an Adjusted Contract Amount need to be figured as follows:
 
Divide the old Rate/Salary by 2080 ($42,000.00 divided by 2080 = $20.19).  $20.19 is the old hourly rate.
 
Multiply the old hourly rate by the number of hours worked at the old rate ($20.19 x 40 = $807.60).  $807.60 is the dollar amount to be paid, for the pay period, at the old rate.
 
Divide the New Rate/Salary by 2080 ($43,500 divided by 2080 = $20.91).  $20.91 is the new hourly rate.
 
Multiply the new hourly rate by the number of hours worked at the new rate ($20.91 x 40 = $836.40).  $836.40 is the dollar amount to be paid, for the pay period, at the new rate.
 
Add the dollar amounts to be paid for new and old rates ($836.40 + $807.60 = $1,644.00).  $1,644.00 is the Override Amount.
 
Divide the new Rate/Salary by the number of pay periods in the year ($43,500 divided by 26 = $1,673.08).  $1,673.08 is the new pay period amount.
 
Multiply the new pay period amount by the number of pay periods left in the contract period (do not include the pay period in which the override is paid) ($1,673.08 x 15 = $25,096.20).  $25,096.20 is the annual amount to be paid at the new rate, not including the override.
 
Divide the old Rate/Salary by the number of pay periods in the year ($42,000 divided by 26 = $1,615.38).  $1,615.38 is the old pay period amount.
 
Multiply the old pay period amount by the number of pay periods paid at the old rate ($1,615.38 x 11 = $17,769.18).  $17,769.18 is the annual/contract amount that was paid at the old rate not including the override.  (This amount should be equal to the amount in the YTD Contract Salary Paid found on the ICS screen or report AU444948
 
Note:  If amount is correct nothing needs to be done. If amount is incorrect, contact the SCO Service Desk at 208-334-3100 or servicedesk@sco.idaho.gov and determine why amounts do not match before proceeding. 
Add together the annual/contract amount to be paid at the new and old rates and the override amount ($17,769.18 + $25,096.20 + $1,644.00 = $44,509.38).  $44,509.38 is the new Adjusted Contract Amount (amount the employee should be paid for the contract period).
 
The Rate/Salary field is coded with the new amount of $43,500.00, the Adjusted Contract Amount field is $44,509.38, the Override Amount field is $1,644.00, the Override Start Date field is 5/16/2010 (pay period begin date), and the Override End Date field is 5/29/2010 (pay period end date). If time is coded, regardless of how many hours are coded, the Override pay period amount will not be exceeded.
 
4. Annual/Contract employee has 8 hours of Leave Without Pay during the pay period (LWO, LWF, FML, etc.).
 
Pay group:       
01
Effective Date:
Begin date of current pay period
Contract Period:
January 1 2010 through December 31 2010
Time Sheet required:
'N'
Rate/Salary:
$42,000.00
Adjusted Contract Amount:
$42,000.00
 
A time sheet is submitted totaling 80.0 hours, including 8.0 hours leave without pay (LWO, LWF, LWS, etc.). The employee will be paid 72.0 hours and the Year-to-Date Contract Salary Paid will reflect the entire 80.0 hours. Do not make any changes to the Adjusted Contract Amount.
 
5. Annual/Contract employee on a 9 month contract that needs to be paid over 9 months. The Override information must be coded for the whole contract period.
 
Pay group:       
01
Effective Date:
08/8/2010
Contract Period:
August 2010 through May 2011
Time Sheet required:
'N'
Rate/Salary:
$35,000.00
Adjusted Contract Amount:
$35,000.00
 
Divide the Rate/Salary amount by the number of pay periods in the in the contract.  ($35,000.00 divided by 19 = $1,842.11)  $1,842.11 is the Override Amount.
 
The Override Start Date would be the pay period begin date when the 9 month contract begins (8/8/2010).
 
The Override End Date would be the pay period end date when the contract ends (4/30/2011).
 
6. Annual/Contract employee changing positions in the middle of a contract period at the beginning of a pay period. (The change in PCN begins a new contract with zero Year-to-Date Contract Salary Paid and will need an Adjusted Contract Amount.)
 
Pay group:       
01
Effective Date:
5/16/2010 (a pay period begin date) during the contract period
Contract Period:
January 1 2010 through December 31 2010
Time Sheet required:
'N'
Rate/Salary:
$42,000.00 and changing to $43,500.00
First Pay Date:
 
6/11/2010
 
The Adjusted Contract Amount on the position change would be figured as follows:
 
Divide the Rate/Salary by the number of pay periods in the contract period ($43,500 divided by 26 = $1,673.08).  $1,673.08 is the pay period amount the employee will be paid. 
 
Multiply the pay period amount by the number of pay periods in the new contract to be paid ($1,673.08 x 15 = $25,096.20).  $25,096.20 is the Adjusted Contract Amount.
 
The Rate/Salary field is coded as $43,500.00 and the Adjusted Contract Amount field is $25,096.20.  No override is necessary. If time is coded, regardless of how many hours are coded, the pay period amount will not be exceeded.
 
7. Annual/Contract employee changing positions in the middle of the pay period and in the middle of a contract period. (The change in PCN begins a new contract with zero Year-to-Date Contract Salary Paid and will need an Adjusted Contract Amount.)
 
Pay group:       
01
Effective Date:
5/13/2010 (not a pay period begin date) during the contract period
Contract Period:
January 1 2010 through December 31 2010
Time Sheet required:
'Y' in old PCN and 'N' in new PCN
Rate/Salary:
$42,000.00 and changing to $43,500.00
First Pay Date:
 
6/11/2010
 
Since the position change is not effective on a pay period begin date, the employee must have an override and/or a time sheet must be submitted to be paid. This example uses Other Earnings and an override however, time sheets can be submitted for both positions and an override entered for the new will work the same.
 
An Other Earnings, Override Amount, and Adjusted Contract Amount need to be figured as follows:
 
Divide the old Rate/Salary by 2080 ($42,000.00 divided by 2080 = $20.19).  $20.19 is the old hourly rate.
 
Multiply the old hourly rate by the number of hours worked at the old rate ($20.19 x 40 = $807.60).  $807.60 is the dollar amount to be paid, for the pay period, at the old rate.
 
Submit an Other Earnings in IPOPS with LPR earnings code to process $807.60 at the old rate for the old PCN. (LPR will not update the YTD Salary Paid.)
 
Divide the New Rate/Salary by 2080 ($43,500 divided by 2080 = $20.91).  $20.91 is the new hourly rate.
 
Multiply the new hourly rate by the number of hours worked at the new rate ($20.91 x 40 = $836.40).  $836.40 is the Override Amount to be paid, for the pay period, at the new rate.
 
Divide the new Rate/Salary by the number of pay periods in the year ($43,500 divided by 26 = $1,673.08).  $1,673.08 is the new pay period amount.
 
Multiply the new pay period amount by the number of pay periods left in the contract period (do not include the pay period in which the override is paid) ($1,673.08 x 15 = $25,096.20).  $25,096.20 is the annual amount to be paid at the new rate, not including the override.
 
Add together the annual/contract amount to be paid at the new rate and the override amount ($25,096.20 + $836.40 = $25,932.60).  $25,932.60 is the new Adjusted Contract Amount (amount the employee should be paid for the contract period in the new PCN).
 
The Rate/Salary field is coded with the new amount of $43,500.00, the Adjusted Contract Amount field is $25,932.60, the Override Amount field is $836.40, the Override Start Date field is 5/16/2010 (pay period begin date), and the Override End Date field is 5/29/2010 (pay period end date).
 
8. Annual/Contract employee who is terminating or transferring to another agency. 
 
If employee is to receive pay for hours worked, a time sheet must be coded and submitted, regardless if an Override Amount is present.  If an override is present, the override amount will be paid regardless of hours coded.  If the end date on the override is greater than the termination/transfer date, the override end date will automatically be adjusted to the termination/transfer date.
 
Since employees of the Senate, House, or Judicial do not submit time sheets, the agency can process an override (if the effective date of the termination is not a pay period end date) to pay the employee their final pay and then submit the termination for the next payroll (as long as there are no balances to be paid off). Since these employees do not submit time sheets, no pay will be processed if a termination is entered on their last payroll.
 
Annual employees of universities submit their MVA time and termination as usual. Since they are Time Sheet Required 'Y' and their termination does not generate any payoffs, they are no edits to restrict their last payroll processing.
 
9. Annual/Contract employee who is Militarily deployed. 
 
If employee is to receive pay for hours worked, a time sheet must be coded in the same payroll as the Military Inactivation, regardless if an Override Amount is present. Please contact the SCO Service Desk at 208-334-3100 or servicedesk@sco.idaho.gov for further instructions if it is necessary to pay this employee in future pay periods.
 
10. Annual/Contract employee who is Inactivated, other than Military Inactivation. 
 
Contact the SCO Service Desk at 208-334-3100 or servicedesk@sco.idaho.gov for further instructions.