Retroactive Payroll Adjustment
REG 10.05.8
Authority: Vice
Chancellor for Finance and Business
History: First Issued: January 1, 2002. Last Revised: March 3, 2004. Additional
History Information.
Contact Info: Assistant Director, Systems and Compliance (919) 515-8018
Office of Contracts
and Grants.
1. Introduction
Retroactive Payroll Adjustments are special journal vouchers used to adjust
all payroll charges (salaries and benefits) made in previous periods. These
are entered in the HR system and include both monthly and biweekly payroll
charges. Retroactive Payroll Adjustments are reflected on the Labor Distribution
Report in the month in which they are processed with the corresponding payroll
ID of the pay period being adjusted.
2. Guidelines
2.1. Retroactive Payroll Adjustments should be used in the following situations:
2.1.1. Corrections of errors in previous payroll periods.
2.1.2. Changes to effort in Section A ("Sponsored Programs") or
Section D ("All Other Activities") on an effort report.
2.1.3. Changes in previous payroll charges resulting from a retroactive personnel
action.
Retroactive Payroll Adjustments should not be used when a change in an employee's
funding source is anticipated to be of a recurring nature over an extended
period of time. The appropriate personnel action should be submitted so that
when each payroll is processed, the correct projects are charged automatically.
2.2. Retroactive Payroll Adjustments are subject to both Fed
eral and State
regulations regarding timeliness and supporting documentation. These regulations
are as follows:
2.2.1. Whenever a Retroactive Payroll Adjustment is prepared, any appropriate
personnel actions must be revised to reflect the retroactive redistribution
of funds. The personnel action must be approved through all levels before
a retroactive payroll adjustment can be entered into the system.
2.2.2. Retroactive Payroll Adjustments affecting contract or grant projects
(subledger 5) must be prepared on a timely basis, but no later than
120 days after the end of the applicable Academic period for a monthly
employee or 120 days after the expenditure for a biweekly charge. Retroactive
Payroll Adjustments submitted after these deadlines must be accompanied
by a memo justifying the late adjustment of charges. The memo should
be addressed to the Director of the Office of Contracts and Grants and
must be signed by the Dean (or Director for non-college units). The
memo must indicate (1) why the adjustment is necessary, (2) the impact
of the adjustment on the employee's effort certification, and (3) why
the adjustment was not prepared within the 120-day period allowed. The
letter should also include the system generated approval request number
for retroactive payroll adjustments processed in the HR system or the
completed CG385 Manual Payroll Reallocation form for payroll charges
that are more than 12 months old (which would no longer be available
to be processed in the HR system).
