34 Tex. Admin. Code § 5.41 - Payroll Requirements
(a) Definitions.
The following words and terms, when used in this section, shall have the
following meanings, unless the context clearly indicates otherwise.
(1) Appropriation year--The year that the
legal authorization for the charge was granted by the legislature. Multiple
appropriation year activity may occur within a single fiscal year.
(2) Casual or task employee--An individual
who is employed by an institution of higher education for a short time period
or a specific task.
(3) Fiscal
year--The accounting period for the state government which begins on September
1 and ends on August 31.
(4)
FLSA--The Fair Labor Standards Act of 1938.
(5) GAA--The General Appropriations
Act.
(6) HRIS--The human resource
information system maintained by the Comptroller of Public Accounts. It
captures personnel and payroll information submitted by institutions of higher
education and locally funded agencies.
(7) Institution of higher education--Has the
meaning assigned by Education Code, §
61.003, except that
the term does not include a public junior college.
(8) Payroll document--The type of document
that a state agency submits to the comptroller in the required format when
requesting payment of the compensation of state employees or certain other
types of payments as required by the comptroller.
(9) Payroll information--Information
concerning the type and amount of compensation earned by a state employee,
deductions from the compensation earned by the employee, and the source of
funding for the payment of compensation to the employee. The term includes
other types of information that the comptroller requires to be reported as
payroll information.
(10) Personnel
information--Information about a state employee's job, compensation, or
personal characteristics. The term includes other types of information that the
comptroller requires to be reported as personnel information. Personnel
information includes all information related to the individual as an employee
and must support statewide reporting, such as for veteran's preference and
Equal Employment Opportunity type information.
(11) Qualified deferred compensation plan--A
deferred compensation plan that is governed by Internal Revenue Code of 1986,
§401(k).
(12) State agency--A
department, board, commission, committee, council, agency, office, or other
entity in the executive, legislative, or judicial branch of Texas state
government, the jurisdiction of which is not limited to a geographical portion
of this state. The term includes the State Bar of Texas, the Board of Law
Examiners, and an institution of higher education.
(13) State employee--An officer or employee
of a state agency. The term includes an elected or appointed officer; a
full-time or part-time employee or officer; an hourly employee; a temporary
state employee; a casual or task employee; an individual whose employment with
a state agency is conditional on the individual being a student; a line item
exempt employee; or an employee not covered by the Position Classification Act;
an employee that works in a nonacademic position at a state institution of
higher education and any other individual to whom wages are paid by a state
agency or institution of higher education.
(14) USAS--The uniform statewide accounting
system maintained by the Comptroller of Public Accounts. It is the official
accounting system for the State of Texas.
(15) USAS format--The USAS layout that a
state agency uses to submit payroll documents to the comptroller.
(16) USPS--The uniform statewide
payroll/personnel system maintained by the Comptroller of Public Accounts. It
is used as the internal personnel and payroll system by user
agencies.
(17) Calendar month--The
period from the first day through the last day of January, February, March,
April, May, June, July, August, September, October, November or
December.
(18) Workday--Any day
except Saturday and Sunday. The term includes a state or national holiday under
GAA or Government Code, §§
662.001 -
662.010.
(19) SPRS--The standardized payroll/personnel
system maintained by the Comptroller of Public Accounts. It captures personnel
and payroll information submitted by state agencies that report their data to
SPRS.
(20) CAPPS--The centralized
accounting, payroll and personnel system maintained by the Comptroller of
Public Accounts or a version held elsewhere as authorized by the Comptroller of
Public Accounts. The payroll and personnel components are used by state
agencies that use CAPPS as their internal system and it submits personnel and
payroll information to SPRS.
(21)
Standard work schedule--A schedule with the number of workdays and hours per
month as published annually by the Comptroller of Public Accounts. It
represents the number of workdays and hours per month that a Monday through
Friday, 40 hour per week employee would work.
(22) Non-standard work schedule--A schedule
other than a standard work schedule.
(23) Locally funded agencies--State agencies
whose funds are held in banks outside of the state treasury
department.
(b) Required
submission of payroll documents.
(1) A state
agency must submit a payroll document to the comptroller if the agency is
requesting reimbursement for the agency's payment of compensation to its
employees. The payroll document must be in proper USAS format.
(2) A state agency may electronically submit
a payroll detail to the comptroller according to the comptroller's
requirements.
(c)
Deadline for receipt of payroll documents.
(1) Generally. Except as provided in
paragraph (2) of this subsection, a payroll document must be received by the
comptroller, according to the comptroller's requirements, not later than the
seventh workday before payday. This applies regardless of how often a state
agency pays its employees.
(2)
Exceptions.
(A) If a state agency wants to
pick up its warrants before payday under a bailment contract the agency has
executed with the comptroller, then the agency's payroll document must be
received not later than the seventh workday before the day on which the agency
wants to pick up the warrants.
(B)
A payroll document that is submitted by a state agency that uses USPS or uses
CAPPS or reports to SPRS must be received by the comptroller, according to the
comptroller's requirements, not later than the fourth workday before payday to
ensure direct deposit of net pay.
(d) Supplemental payroll documents.
(1) When allowed. A state agency may submit a
supplemental payroll document to the comptroller if a change occurs between the
agency's submission of its regular payroll document and the end of the
month.
(2) Adjustments in
compensation. When a change results in a state agency owing money to a state
employee, the agency should adjust the employee's compensation for the
following month instead of submitting a supplemental payroll if the delay would
not cause hardship to the employee.
(e) Non-regular payments. A state agency may
make a payment to a state employee for other than the employee's regular
compensation on a regular payroll document. The agency must select the proper
comptroller object code for the payment.
(f) Cancellations of payments of
compensation.
(1) Cancellations of warrants.
When a state agency needs to cancel a payroll warrant, the agency must follow
the comptroller's warrant cancellation procedures.
(2) Cancellation of electronic funds
transfers. When a state agency needs to cancel a payment of compensation via
the comptroller's electronic funds transfer system, the agency must follow the
procedures specified by the comptroller.
(3) Issuance of new warrants. When a state
agency needs to issue a new payroll warrant after canceling the original
payroll warrant, the agency must follow the comptroller's procedures for
supplemental payrolls.
(g) Payroll conversions. In early September
of each year, state agencies that are subject to the Position Classification
Act must furnish payroll conversion information to the comptroller and the
state auditor according to their guidelines. Although the comptroller sends the
guidelines to each state agency once each year, the guidelines are always
available from the comptroller upon request.
(h) Reporting of personnel information to
HRIS.
(1) Applicability. This subsection
applies to a state agency only if it does not use USPS, CAPPS or report to
SPRS.
(2) Reporting requirements.
(A) A state agency shall report personnel
information to HRIS if:
(i) a state employee
is added to or removed from the agency's payroll;
(ii) the agency changes a state employee's
compensation rate;
(iii) the agency
changes a state employee's classification or job title;
(iv) the legal name of a state employee of
the agency changes;
(v) the social
security number of a state employee of the agency changes;
(vi) a state employee of the agency goes on
leave without pay or faculty development leave;
(vii) the home address of a state employee of
the agency changes;
(viii)
deduction information concerning a state employee of the agency changes, if
HRIS requires reporting of that information; or
(ix) other job or descriptive information
concerning a state employee of the agency changes, if HRIS requires reporting
of that information.
(B)
A state agency shall ensure that HRIS receives its report not later than the
seventh day of the month after the month in which the change or event occurs
that triggers the requirement for the agency to file the report.
(C) A report to HRIS under this paragraph
must be made in the manner, frequency, and form required by the
comptroller.
(i) Reporting of payroll information to HRIS.
(1) Applicability. This subsection applies
to:
(A) an institution of higher education
that does not use USPS, CAPPS or report to SPRS;
(B) the State Bar of Texas; and
(C) the Board of Law Examiners.
(2) Reporting requirements.
(A) A state agency shall report payroll
information to HRIS.
(B) A state
agency's report of payroll information must be complete not later than the
seventh day of the month following the month covered by the report. A report is
complete only if:
(i) it encompasses all the
pay periods that end in the month covered by the report; and
(ii) HRIS receives it by the
deadline.
(C) A report
to HRIS under this paragraph must be made in the manner, frequency, and form
required by the comptroller.
(j) Reporting errors. If the comptroller
detects an error in a state agency's report of personnel or payroll
information, then the comptroller shall provide a description of the error to
the agency. The agency shall then correct the error according to the
comptroller's requirements. The agency must correct the error not later than
the seventh day of the month following the month in which the agency receives a
description of the error.
(k)
Additional mail codes. A state agency may establish an additional mail code for
a state employee only by submitting the proper application to the comptroller's
Fiscal Management division.
(l)
Reporting of personnel information to USPS, CAPPS or SPRS.
(1) Applicability. This subsection applies to
a state agency only if it does not report to HRIS.
(2) Reporting requirements.
(A) A state agency shall be considered to
have reported personnel information to USPS, CAPPS or SPRS if:
(i) a state employee is added to or removed
from the agency's payroll;
(ii) the
agency changes a state employee's compensation rate;
(iii) the agency changes a state employee's
classification or job title;
(iv)
the legal name of a state employee of the agency changes;
(v) the social security number of a state
employee of the agency changes;
(vi) a state employee of the agency goes on
leave without pay or faculty development leave;
(vii) the home address of a state employee of
the agency changes;
(viii)
deduction information concerning a state employee of the agency changes;
or
(ix) other job or descriptive
information concerning a state employee of the agency changes.
(B) A state agency must ensure
that the information is provided in the manner, frequency, and form required by
the comptroller.
(m) Reporting of payroll information to USPS,
CAPPS or SPRS.
(1) Applicability. This
subsection applies to a state agency that does not report to HRIS.
(2) Reporting requirements.
(A) A state agency shall be considered to
have reported payroll information to USPS, CAPPS or SPRS if the agency
successfully completes the processing of payroll information.
(B) A state agency's report of payroll
information must include any payments of regular salary, twice monthly salary,
overtime pay, longevity, benefit replacement pay, lump sum payment of unused
vacation and sick leave, emoluments and special pays such as bilingual or fire
brigade pay. A report is complete only if:
(i) it encompasses all the pay periods that
end in the month covered by the report; and
(ii) the comptroller receives it by the
deadline.
(C) Payroll
information under this paragraph must be processed in the manner, frequency,
and form required by the comptroller.
(D) Reporting errors. If the comptroller
detects an error in a state agency's report of personnel or payroll
information, then the comptroller shall provide a description of the error to
the agency. The agency shall then correct the error according to the
comptroller's requirements.
(n) Standard payroll calculation.
(1) Exemption. This subsection does not apply
to an institution of higher education.
(2) Required use of USPS.
(A) Except as provided in subparagraph (B) of
this paragraph, a state agency must use USPS to:
(i) calculate and otherwise generate the
agency's payments of compensation to its state employees; and
(ii) maintain the agency's personnel and
payroll information.
(B)
A state agency is not subject to subparagraph (A) of this paragraph if the
comptroller has allowed the agency to report to SPRS or to use the payroll and
personnel components of CAPPS.
(3) Conforming to payroll calculation. A
state agency must conform its payroll calculation with the payroll calculation
set forth in comptroller policies and procedures.
(o) Deceased state employees.
(1) Required payees. A state agency must pay
the compensation earned by a deceased state employee to the employee's estate
unless Estates Code, §453.004, or another law authorizes or requires a
different payment method.
(2)
Additional mail codes. When a state agency pays the estate of a deceased state
employee, the agency must establish an additional mail code under the payee
identification number of the employee.
(p) Overtime payments.
(1) Generally. A state employee covered by
the overtime provisions of the FLSA must be credited or paid for overtime hours
worked according to the GAA, the FLSA, and the regulations adopted by the
United States Department of Labor under the FLSA. Those regulations and the
FLSA prevail over the GAA to the extent of conflict, if any.
(2) Method for making overtime payments. A
state agency may pay overtime on any payroll document submitted to the
comptroller, including a supplemental payroll document.
(q) Payments of compensation for working
partial months.
(1) State employees paid once
each month.
(A) This paragraph applies only
to a state employee who is paid once each month.
(B) A state agency must calculate the amount
of compensation a state employee is entitled to receive for working less than a
full month by:
(i) calculating the employee's
hourly rate of pay according to the comptroller's requirements; and
(ii) multiplying the employee's hourly rate
of pay by the number of hours worked to determine the correct amount of
compensation.
(C)
Subparagraph (B) of this paragraph also applies to the compensation paid to a
state employee who is on leave without pay for less than an entire calendar
month.
(2) State
employees paid twice each month.
(A) This
paragraph applies only to a state employee who is paid twice each
month.
(B) This subparagraph
applies to a state employee who does not work all the available hours in the
first half of a month but works all the available hours in the second half of
the month.
(i) The total compensation that
must be paid to a state employee for an entire month is equal to the product
of:
(I) the hours worked in the month by the
employee; and
(II) the employee's
hourly rate for the month calculated according to the comptroller's
requirements.
(ii) The
amount of compensation that must be paid to a state employee for services
provided during the first half of a month is equal to the product of:
(I) the hours worked in that half of the
month by the employee; and
(II) the
employee's hourly rate for the month calculated according to the comptroller's
requirements.
(iii) The
amount of compensation that must be paid to a state employee for services
provided during the second half of a month equals the difference between:
(I) the total compensation that must be paid
to the employee for the entire month as determined under clause (i) of this
subparagraph; and
(II) the
compensation that must be paid to the employee for services provided during the
first half of the month as determined under clause (ii) of this
subparagraph.
(C) This subparagraph applies to a state
employee who works all the available hours in the first half of a month but
does not work all the available hours in the second half of that month.
(i) The total compensation that must be paid
to a state employee for an entire month is equal to the product of:
(I) the hours worked in the month by the
employee; and
(II) the employee's
hourly rate for the month calculated according to the comptroller's
requirements.
(ii) The
amount of compensation that must be paid to a state employee for services
provided during the first half of a month equals 50% of the employee's
compensation for the month.
(iii)
The amount of compensation that must be paid to a state employee for services
provided during the second half of a month equals the difference between:
(I) the total compensation that must be paid
to the employee for the entire month as determined under clause (i) of this
subparagraph; and
(II) the
compensation that must be paid to the employee for services provided during the
first half of the month as determined under clause (ii) of this
subparagraph.
(r) Payroll deductions.
(1) Special definitions. The following words
and terms, when used in this subsection, shall have the following meanings
unless the context clearly indicates otherwise.
(A) Certified state employee organization--A
state employee organization that the comptroller has certified according to
§
5.46 of this title (relating to
Deductions for Paying Membership Fees to Employee Organizations).
(B) State agency--
(i) a board, commission, department, office,
or other agency that is in the executive branch of state government and that
was created by the constitution or a statute of the state, including an
institution of higher education as defined by Education Code, §
61.003;
(ii) the legislature or a legislative agency;
or
(iii) the supreme court, the
court of criminal appeals, a court of appeals, the State Bar of Texas, or
another state judicial agency.
(2) Statutory limitation. Government Code,
§
659.002, prohibits a
state agency from making a deduction from the compensation paid to an employee
whose compensation is paid in full or in part from state funds unless the
deduction is authorized by law.
(3)
List of authorized deductions. The deductions authorized by law are:
(A) court-ordered deductions under Bankruptcy
Code, Chapter 13;
(B) deductions
required by levies imposed by the Internal Revenue Service;
(C) deductions required by payroll deduction
agreements between the Internal Revenue Service and state employees if the
agreements are legally binding on employing state agencies;
(D) federal income tax withholding;
(E) deductions required by the Federal
Insurance Contributions Act, which includes social security and Medicare
withholding;
(F) income tax
deductions required by states other than Texas or by local governments outside
Texas in which state employees live and work;
(G) contributions to the Employees Retirement
System of Texas, the Teacher Retirement System of Texas, the optional
retirement program, the Judicial Retirement System of Texas Plan One, or the
Judicial Retirement System of Texas Plan Two;
(H) fees charged to state employees by their
employing state agencies for complying with court-ordered child support
deductions from the employees' compensation;
(I) court-ordered child support
deductions;
(J) extra federal
income tax withholding;
(K)
deferrals to and repayments of loans from the qualified deferred compensation
plan;
(L) deductions required by a
valid assignment, transfer, or pledge of compensation as security for an
indebtedness under Education Code, §
51.934;
(M) health benefits plan deductions,
cafeteria plan deductions, and other deductions authorized by Insurance Code,
Chapter 1551, Texas Employees Group Insurance Benefits Act;
(N) health benefits plan deductions,
cafeteria plan deductions, and other deductions authorized by Insurance Code,
Chapter 1551, Texas State College and University Employees Uniform Insurance
Benefits Act;
(O) deductions for
goods and services provided to employees by the institutional division of the
Department of Criminal Justice;
(P)
deductions for services provided to state employees of agencies as authorized
in statute or the GAA;
(Q)
deferrals to the deferred compensation plans governed by Internal Revenue Code
of 1986, §457;
(R)
contributions by employees of the Texas Higher Education Coordinating Board,
the Texas Education Agency, the Department of Assistive and Rehabilitative
Services, the Department of State Health Services, the Texas Juvenile Justice
Department, and the governing boards of state-supported institutions of higher
education to any investment authorized under Internal Revenue Code of 1986,
§403(b);
(S) deductions to pay
membership fees to certified state employee organizations;
(T) service purchase installment deductions
for contributing members of the Employees Retirement System of Texas, the
Judicial Retirement System of Texas Plan I, or the Judicial Retirement System
of Texas Plan II;
(U) deductions
from the compensation paid to certain faculty members who take English
proficiency courses under Education Code, §
51.917;
(V) deductions for contributions to eligible
charitable organizations;
(W)
deductions for payments to credit unions;
(X) deductions required by federal law for
the repayment of guaranteed student loans;
(Y) deductions for savings bond
purchases;
(Z) deductions for
supplemental optional benefit programs approved by the Employees Retirement
System of Texas under Government Code, §
659.102;
(AA) deductions to make payments under a
prepaid tuition contract; and
(BB)
deductions for contributions to a qualified football coaches plan.
(s) Garnishments.
(1) Delivery of garnishment notices. A notice
to garnish the compensation of a state employee must be delivered directly to
the employing state agency.
(2)
Garnishment notices for terminated employees. If a state agency receives a
garnishment notice for a person no longer employed by the agency, then the
agency must:
(A) return the notice to the
entity that issued the notice;
(B)
inform the entity that the person is no longer employed; and
(C) identify to the entity the retirement
system that the entity should contact to seek information about the person's
retirement contribution balance.
(3) Compliance with garnishment notices. Upon
receipt of a valid garnishment notice, the receiving state agency must:
(A) inform the affected state employee about
the notice and the procedures the agency will follow to comply with the
notice;
(B) establish a mail code
on the comptroller's Texas payee information system for the recipient of the
garnishment proceeds unless a payee number has already been designated for all
state agencies to use; and
(C) show
the garnishment as a miscellaneous deduction on the affected state employee's
payroll record.
(4)
Effective date of garnishment notices. A garnishment notice takes effect with
the first payroll document submitted to the comptroller after the notice is
received. Therefore, if a state agency receives a garnishment notice after the
agency has submitted a payroll document to the comptroller, the notice does not
apply to that document.
(t) Refunds of deductions. A state agency may
refund amounts previously deducted in error only by using credit amounts in the
appropriate deduction column on a payroll document.
Notes
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