SALARY ADVANCE Pacific Area Finance Training February 2008

2 Salary Advance When To Issue Salary Advance? 1.Employee receives salary check that is substantially less than the amount due; AIC 554.  Claim must be at least for a full day of pay; full day of pay may consist of a schedule workday of 2, 4, 6, or 8 hours. 2.Employee does not receive salary check; AIC New employee (including casual) does not receive check due to late Form 50 action; AIC 554.

3 Salary Advance: Missing Hours How Much to Give Employee? 1.Determine employee’s hourly rate. 2.Annual Salary Rate Divided by  For Part-Time Flexible or Transitional Employee, Annual Rate is Divided by No. of Hours X Hourly Rate X Multiplication Factor 0.65 = Salary Advance.  To be computed on work (or leave) hours only – no premium or overtime to be advanced.  Advance may need to be reduced if employee has outstanding debts with USPS, IRS, or other garnishments (review prior payroll journal to determine). DO NOT issue a salary advance to a terminated employee!

4 What Forms? What AIC? Send Where? Salary Advance Issued: Missing Hours  Use current version of PS Form 2240 – Complete entire form (Ensure Retail Unit Number is Correct).  AIC 554  Send 2240 To: Scanning and Imaging Center PO Box 9000 Sioux Falls SD  Retain signed copy.  Salary advance automatically deducted when adjustment is made. Process MUST be followed to ensure collection of salary advance!

5 PS Form 2240

6 Salary Advance Issued – Employee Does Not Receive Check: Payroll Journal Shows Check Issued 1.Complete PS Form 1608, Emergency Salary Authorization, for net amount of paycheck. 2.AIC 754:  Enter all employee data into POS.  POS will automatically record suspense item in the employees unresolved items.  IRT Units enter all employee data on PS Form Retain signed form locally (DO NOT FORWARD TO SIC). 4.SALARY ADVANCE COLLECTION MUST BE MADE LOCALLY. FORMS: Available on USPS Blue Page under Forms: What Forms? What AIC? Send Where? (Cont.)

7 PS Form 1608

8 No Salary Advance Issued Salary Advance Was NOT Issued: Use AdjustPay (TACS). NO AIC Entry. Automatic Transmission.  Pay Adjustment on next paycheck.

9 Adjustment for Posting to Wrong AIC Entered incorrectly to AIC 754 rather than AIC 554:  Clear using AIC 354 and Increase AIC 554. Entered incorrectly to AIC 554 rather than AIC 754:  Increase AIC 647 and offset with AIC 554.  Enter to AIC 247 and increase AIC 754. (Note: POS sites must use proper AIC paths)

10 Emergency Salary Chart

11 NO Salary Advances for:  Net-to-Bank is validated in the payroll register.  Claim is less than a full day of pay.  Terminated employees (Especially Casuals).  Equipment Maintenance Allowance (EMA).  Employee Business Expense (EBE).  Back Pay Awards/Grievance Settlements.

12 Process: Non-Receipt of Salary Check  Postmaster, manager, or supervisor completes a PS Form 1608, Emergency Salary Authorization (August 2006) for net amount of paycheck.  Employee presents a completed PS Form 1608 to the retail unit.  Employee signs and dates the form when the no fee money order is received from the retail unit.

13 Process: Non-Receipt of Salary Check (Cont.) Retail Unit performs these tasks:  Issues employee no-fee postal Money Order (MO) for the amount authorized on PS Form  Enter MO serial number on the form.  Enter amount issued in AIC 754, Authorized Emergency Salary Issued.

14 Retail Unit performs these tasks:  Enter employee’s name, SSN, pay period year, and amount in POS/IRT.  Ensure 1608 has all blocks completed. DO NOT forward PS Form 1608 to Scanning & Imaging Center.  Maintain a master control or POS Unresolved Employee Items Report with employee’s name, date, and amount issued. Process: Non-Receipt of Salary Check (Cont.)

15 Collection Procedures – Non-Receipt of Check  Postmaster/Supervisor issues stop payment/ check replacement via accounting website.  Postmaster/Supervisor – responsible to collect.  Retail Unit follows up to ensure collection.  Employee reimburses the amount issued to the retail unit upon receipt of the payroll check.

16 Collection Procedures – Non-Receipt of Check (Cont.) Retail Unit performs these tasks: 1.Enter the reimbursed amount in AIC 354, Authorized Emergency Salary Cleared on PS Form 1412, Daily Financial Report.  POS Units MUST retrieve employee reference number from the “Unresolved Employee Items” to clear.  IRT Units MUST enter employee data to the PS Form 25, to ensure item is cleared. 2.Issue a system-generated PS Form 3544 or a manual PS Form 3544, USPS Receipt for Money or Services, to the employee.

17 Repayment It is the responsibility of the postmaster, unit supervisor, manager, or installation head/designee to monitor and pursue collection of employee’s advance.  Employees cannot grieve or request a hearing for repayment of salary or travel advances for the amount the employee has certified that he/she has received as stated on PS Form 1608, Emergency Salary Authorization and Receipt, and PS Form 1011, Travel Advance Request and Itinerary Schedule (Postal Bulletin 21933)

18 Related References Field Accounting Procedures, Section Handbook F-1 Section html#wvCmr114cpim