Salary & Wage Corrections/Transfers

Contact: University Accountant

Salary and Wage Corrections / Transfers

This document describes the types of salary and wage corrections/transfers that should be processed through the payroll system (Payroll Office) vs. a spreadsheet journal entry (General Ledger).

For corrections to Research accounts email fsresearch@byu.edu for review and approval of the correction type needed. If the request is a payroll system correction, as described below, the Research Accounting Office will forward the request to the Payroll Office for further processing. If the request is a support transfer entry, also described below, the Research Accounting Office will process a spreadsheet journal entry to record the transfer.

Payroll System Corrections

Salary and wage errors resulting from the use of an incorrect account or class should be corrected through the payroll system by contacting the Payroll Office.

Requests for payroll corrections should be submitted to Pam Wilson in the Payroll Office by email (payroll1@byu.edu). Insure information provided to the Payroll Office is timely, correct, and complete.

Example:
Student paid on the correct operating unit, but the wrong account – paid as 5600, should have been 5670.

Spreadsheet Journal Entry Support Transfers

• When salary and wage expense is in the proper chartblock (operating unit, account and class), but the operating unit lacks the necessary funding (has a negative balance) or is sharing the cost of a certain project/activity - support funding can be provided by another operating unit through a spreadsheet journal entry.
• An employee is hired on the incorrect operating unit or class transfers should be made using the spreadsheet journal entry.

Salary and wage costs may be transferred using 5xx9 account codes if both entities desire to move salary and wages between them but do not want to affect the base (non-5xx9) salary and wage account codes. When using 5xx9 account codes to transfer salaries and wages, the accounting system will not prepare a corresponding payroll benefit journal entry at month-end. Where payroll benefits costs are also intended to be transferred, entities should prepare a journal entry to transfer associated payroll benefits costs using the 5999 account code. Alternatively, salaries and wages may also be transferred between units using the base (non-5xx9) salary and wage account codes as long as the same account code is used on both sides of the journal entry. If a base (non-5xx9) account code is used to transfer wages, the related payroll benefit charges will automatically be adjusted as part of the month-end close process.

Examples:
A student was hired and paid on the wrong operating unit or class

	Chartfields	Debit	Credit
Correct Oper Unit/Cls	xxxxxxxx-5699-xxxxxx	100.00
Incorrect Oper Unit	xxxxxxxx-5699-xxxxxx		100.00

Undergraduate-student research wages are charged to his faculty research advisor's operating unit, but at the end of the semester this results in a negative balance. The department chair has decided to supplement the funds originally allocated to the faculty members operating unit to cover the deficit.
The dean has agreed to support the wage expense related to a special activity to be conducted by a member of a department under his direction.

Use of xx09 for faculty, admin and staff wages:

	Chartfields	Debit	Credit
Dean’s Oper Unit	xxxxxxxx-5x09-xxxxxx	100.00
Dept’s Oper Unit	xxxxxxxx-5x09-xxxxxx		100.00

Use of xx99 for student hourly and contract wages:

	Chartfields	Debit	Credit
Dean’s Oper Unit	xxxxxxxx-5x99-xxxxxx	100.00
Dept’s Oper Unit	xxxxxxxx-5x99-xxxxxx		100.00

Note: The use of the xx09 or xx99 account codes only reallocates salary and wage resources and does not adjust or transfer any related payroll benefit charges.

Cost accounting

A spreadsheet journal entry should be used to transfer payroll expense to a specific project from a centralized operating unit and payroll account.

Examples:
Student wage employee (hourly) from OIT performs labor which is part of a capital improvement project:

	Chartfields	Debit	Credit
CIP	C6xxxxxx-1665-00000	100.00
Payroll Oper Unit	15xxxxxx-5x99-00000		100.00

Faculty, admin, or staff employee performs labor to create inventory for resale:

	Chartfields	Debit	Credit
Inventory-WIP	15xxxxxx-1350-00000	100.00
Payroll Oper Unit	15xxxxxx-5x09-00000		100.00

Note: The use of the xx09 or xx99 account codes only reallocates salary and wage resources and does not adjust or transfer any related payroll benefit charges.