Year-End Processing of the Biweekly Pay Period from June 19 to July 2

The biweekly payroll from June 19 to July 2 spans two fiscal years. The FY2015-16 portion from June 19 to June 30 will be estimated and posted as anaccrual using a financial journal entry in accounting period 12 of FY2015-16 prior to prelim close, and will not be reflected on the Distribution of Payroll Expense (DPE) in FY2015-16. The actual costs for the entire biweekly June 19 to July 2 period will be calculated and posted in the General Ledger and the DPE in period 1 of FY2016-17. The accrual portion from June 19 to June 30 that was estimated and posted in period 12 of FY2015-16 using a financial journal entry will auto-reverse in period 1 in FY2016-17 in order to properly prorate the expenses between fiscal years.

Two General Ledger transactions will be created for the biweekly accrual estimate for each unique chartstring:

  1. Gross earnings (using Account 50432)
  2. Total benefits (using Account 50518)

The accruals are calculated for each earnings distribution where the earnings end date matches the pay period end date for the pay period ending June 18, 2016; expense transfers are not included. The accrual amount is calculated as the gross salary or benefit amount multiplied by the accrual proration factor. Out of the 10 days of biweekly pay, 9 are in FY2015-16 therefore the accrual proration factor is 9 out of 10, or 90%. As an example, for $100 of payroll, the estimate for gross earnings would be calculated and posted to the General Ledger as follows:

Estimated accrual:

6/19-6/30
(9 out of 10 days)

7/1-7/2
(1 out of 10 days)

Total Payroll: 6/19-7/2
(All 10 days)

$90

$10

$100

Posting of estimate and actuals:

Period 12, FY2015-16
(estimated and posted via financial journal, no DPE)

Period 1, FY2016-17
(actuals are posted to ledger and DPE for total payroll; reversal of estimate offsets actuals)

Total

$90 estimate 6/19-6/30

$100 actual 6/19-7/2 per DPE
+($90) estimate 6/19-6/30 reversal
= $10 remainder 7/1–7/2

$100

For non-sponsored funds, the financial journal entry accrual and associated reversal will post to the Fund, Dept ID, Function, Project, and Flexfield, as estimated.

For sponsored funds, the financial journal entry accrual and associated reversal will post to the Fund, Dept ID, Function, and Flexfield, as estimated. To facilitate proper timing of billing to the sponsor, the estimate will not be posted to the sponsored Project; rather it will be posted to the following generic Projects based on the sponsored fund:

Fund

Project

Project Description

4000

2012442

EMF Clearing Fed Grant

4001

2012443

EMF Clearing Fed Contract

4100

2012444

EMF Clearing State Contract

4200

2012445

EMF Clearing County Contr & Gr

4300

2012446

EMF Clearing Private Grant

4301

2012447

EMF Clearing Private Contract

4400

2012448

EMF Clearing Clinical Trials

If you have any questions regarding the year-end biweekly accrual, please contact Payroll Director Shylah Conway-Hamilton at [email protected].