Payroll

Policy

FIACCT 11-10_00 Payroll – Pay Advance Payroll Deduction

Effective: September 15, 1989
Revised: July 1, 2007
Reviewed: September 1, 2009

Purpose

This policy provides a method for state employees to repay their pay advance through a payroll deduction each payday.


Policy

An employee who received a pay advance signed an Acknowledgement by Employee of Payroll Advance.

A. The Acknowledgement by Employee of Payroll Advance agreement between the employee and the State of Utah, requires that the employee repays the state, if the employee meets one of the following conditions:
1. The employee is on leave without pay for more than 30 days.
2. The employee’s employment with the State of Utah is terminated.
3. The employee retires from employment with the State of Utah.

B. Effective September 15, 1989, the employee may elect to repay the Pay Advance through a payroll deduction each payday. Do this by completing and submitting a Request for Pay Advance Payroll Deduction, Form FI 23, to the Division of Finance, Payroll Section. The minimum deduction amount is five dollars ($5.00) per payday.

C. Any unpaid balance outstanding when an employee terminates, retires or goes on leave without pay for more than 30 days, becomes due and payable. The unpaid balance will be withheld from the employee’s final payroll warrant. If the payroll warrant is insufficient to cover the remaining balance, the former employee will be required to pay the balance. The employee’s department is responsible to collect any remaining unpaid balances. Any uncollected balances will be charged against the former employee’s department budget.


Background

Prior to the May 10, 1985 payday, there was a one week delay between the end of the pay period and payday. At that time payroll clerks were estimating time worked for the second week of the pay period to submit preliminary payrolls on time to the Division of Finance, Payroll Section. This created adjustments and additional work for both the payroll clerks and the Division of Finance, Payroll Section. Due to the volume involved in processing payroll, the State of Utah decided to use a two week delay in payment of wages. The State offered another pay advance in July 1997 for employees who worked for Job Services.

In order to assist the employees, the State advanced (loaned) an amount equal to one week’s regular pay to each employee who desired it. The agreement between the State and the employee for the interest free loan stated that the employee could repay the entire amount at any time but must repay the entire amount upon termination, retirement, or leave without pay status longer than a period of thirty days. The following contract is an example of the original agreement.


Example


Procedures

Responsibility

Action

Establishing Pay Advance Payroll Deduction

Employee

Complete a Request for Pay Advance Payroll Deduction, Form FI 23, which is available through the Division of Finance Web site at https://finance.utah.gov.

NOTE: Minimum deduction for the Pay Advance is five dollars ($5.00) per payday.

Department Payroll/
Personnel Staff

Forward the completed form to the Division of Finance, Payroll Section.

NOTE: The Request for Pay Advance Payroll Deduction, Form FI 23, needs to be in the Division of Finance, Payroll Section no later than the Friday prior to the scheduled payday in which the deduction should begin.

Division of Finance

Process the payroll deduction information.

Changing Pay Advance Payroll Deduction

Employee

Obtain a Request for Pay Advance Payroll Deduction, Form FI 23, which is available through the Division of Finance Web site at https://finance.utah.gov.

Write CHANGE in large letters on the top portion of the form; then complete the Request for Pay Advance Payroll Deduction, Form FI 23, and give it to your agency department payroll/personnel staff.

NOTE: Minimum deduction for the Pay Advance is five dollars ($5.00) per payday.

Department Payroll/Personnel Staff

Forward the completed Form to the Division of Finance, Payroll Section.

NOTE: The Request for Pay Advance Payroll Deduction, Form FI 23, needs to be in the Division of Finance, Payroll Section no later than the Friday prior to the scheduled payday in which the deduction should begin.

Division of Finance

Process the payroll deduction change.

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