Entering Cost Codes when Processing Funding, Other Direct Pay, and Journal Entry Actions

HRIS users who currently use or are planning to use the InDepth Departmental Accounting System (DAS) may be interested to know that the HRIS system now allows the use of DAS cost codes in all screens that require the use of an FRS account number. This includes position funding, other direct payment (ODP), and payroll journal entry forms. The DAS cost codes are considered a part of the FRS account number and will be electronically passed to Payroll, FRS, and subsequently to DAS with any encumberance and payroll activity related to such actions.

HRIS screens with account numbers now have the SbAcct, Cost Code, and Sb-SbCode fields activated. You may enter a code in none or any of these fields. DAS codes are validated if entered into these fields. Blank cost code fields are ignored.

If you have questions regarding DAS cost coding, how HRIS transactions are reflected in DAS, or otherwise using the InDepth DAS system, contact the DAS team at 962-9233 or send email to InDEPTh@unc.edu. If you need to report problems when attempting to use these new DAS fields in HRIS, contact the HRIS Help Desk by calling 962-HELP (962-4357) or for even faster service, submit a web-based Remedy ticket by pointing your browser to https://www.unc.edu/ar-bin/websub/index.pl.

Funding for Salary Actions
(Permanent Positions)

• For actions that involve a change in salary on a vacant position (e.g.: new hires, transfers, promotions, demotions), funding must be established before doing workflows for those actions.
• For actions that involve a change in salary on filled positions such as salary adjustments (remaining balances, change in hours, in-range increases, etc) and reclassifications, the funding must be in place before you attempt to complete the Assign Base Pay workflow. You can request the salary adjustment action without having funding in place.
• To establish the funding, use the Positions and Funding Container. (Refer to Funding Actions in the HRIS User Guide)

Funding for Salary Actions (Student/Temporary Positions)

• Position funding must be completed and approved at the new hourly rate before starting a Maintain Temporary Employee Information - Salary Adjustment workflow. Use the Change Position Funding Workflow to setup new hourly rate. Funding is not required to be setup prior to initiating other Student/Temporary Workflows such as the Temporary Hire Workflow due to an opportunity to setup funding within these workflows.

How HRIS Calculates the Encumbrance Amount

New Hire/Rehire/Return from Leave (Calculations - Base Pay Encumbrance)

• Permanent Employees

  > Daily rate - Base Pay/365 or 366

> Days = Fiscal Yearend (B25 end date for State Funds if online encumbrance computed after beginning of fiscal year) - Event Date.

> Encumbrance = Days * Daily Rate * Pct on Source

• Temporary and Time Limited Employees

> Subtract Event Date from Position Projected End date to calculate "number of days":. If end date > fiscal yearend, use fiscal yearend.

> Multiply "scheduled hours" by "hourly rate" to get projected weekly pay.

> Divide weekly pay by 7 to get daily rate.

> Encumbrance = daily rate * days * pct on source.

Fringe Benefits

• Encumbrance for fringe benefits will use a simple estimate since the Payroll Interface passes the exact cost every pay period. However, the estimate needs to be separate for Health, Retirement and FICA; the estimate cannot be a lump sum.
• Store calendar year-to-date FICA Gross in HRIS Payroll Information Table.
• FICA Rate will come from the Legacy Payroll System.
• All employees are subject to FICA unless they are a student or a Non-resident Alien. Non-resident alien tax information will be stored in Windstar. HRIS will store student status and Non-resident Alien status.
• Obtain employer cost for retirement from Comp Plan.
• Calculate Health encumbrance for only base pay. Calculate retirement and FICA for both Base Pay and Other Direct Pay.
• Use position FTE to determine portion of health to charge to position.
• The system will project when employee will reach the FICA maximum and encumber accordingly.
• Encumbrance = Days * Daily Rate * Percent on Source * Comp Plan Percent.

Reduction of Student/Temporary Encumbrances

A Student or Temporary employee's planned end date, FTE, and hourly rate can all effect the amount of an encumbrance against a source. Intermittent Temporaries have no planned end date for their appointments so their encumbrances will be calculated with an assumed planned end date of June 30th of the current fiscal year. Also, for sources that have a source expiration date, this date becomes relevant if it is earlier than the planned end date.

Reducing the FTE amount or shortening the planned end date, or both, will decrease the amount of the encumbrance.

You are permitted in HRIS to have an FTE amount as low as 0.025 without effecting the employee's pay as long as time sheets are submitted to Payroll with the hours that the employee actually worked.

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