Payroll Forum

Payroll ForumPayroll Compliance GroupSummer 2015

1PAYROLL COMPLIANCE GROUP (PCG)Debra Cormier State Payroll Compliance AdministratorDebra.Cormier@state.de.us302-672-5543Statewide Payroll Regulatory CompliancePayroll PoliciesMicheale Lessard Payroll Compliance OfficerMicheale.Lessard@state.de.us302-672-5517Payroll PlannerInternal Control PlansPayroll Administration Training DeliveryKatrina Zapata Payroll Compliance AnalystKatrina.Zapata@state.de.us302-672-5506Wage Overpayments / RepaymentsWilmington City Wage Tax

2AgendaWage & Benefits Paying Policies Panel DiscussionWelcome & Panelist IntroductionsInsurance Coverage Office - Workers Compensation & Personal Injury Protection InsuranceSBO - Social Security DisabilitySBO - Short-Term Disability PoliciesPension Office - Retirement Calculation ImpactsPHRST ProcessesPCG Payroll Repayment Policies

3Insurance Coverage Office

Workers Compensation Considerations4Insurance Coverage Office (ICO)Debra Lawhead Insurance Coverage Administratordlawhead@state.de.us302-739-3651All lines of insurance for the State of Delaware except life, health and disabilityMarcia Lundy Insurance Coverage Supervisormarcia.lundy@state.de.us302-739-3651All lines of insurance for the State of Delaware except life, health and disabilityProceduresA workers compensation injury must be reported to the Third-Party Administrator (TPA) within 24 hours. The First Report of Injury Form is submitted by the Injured Workers employing Human Resource (HR) Department via the TPA website. http://pmacompanies.com/generic_reportaclaim.htmlOnce the claim is submitted, the TPA Claims Processing Office immediately sends a confirmation of receipt that includes the Claim Number assigned to the claim. Include your email address in the block SEND EMAIL COPY TO ORIGINATOR to obtain a copy of what was submitted electronically.

6A hard copy of the First Report of Injury Form is sent to the HR Department. If the First Report of Injury notes that an employee is missing time from work, the TPA sends a Wage and Salary Verification Letter and Form to the HR Department Contact. The HR Representative for the employing organization must complete the Wage & Salary Verification Form and return it to the TPA. (Example of this form is attached)Send copies of any and all disability notes to the TPA with the Form.

Within 14 days of receiving the initial Physicians Report of Workers Compensation Injury, the employer shall provide to the health care provider/physician who issued the aforementioned report and the TPA a report of the modified duty jobs which may be available to the employee. This report must be signed and returned by the health care provider within 14 days of the next date of service but not later than 21 days from receipt of such form.The Injured Worker will be charged sick or annual leave until the TPA determines if the claim is a compensable.

2321 Minimum duration of incapacity.Permanent injury relating to hearing or vision loss, surgical, medical and hospital services, medicines and supplies, and funeral benefits shall be paid from the first day of injury. Beginning with the fourth day of incapacity, all compensation otherwise provided by law shall be paid. If the incapacity extends to 7 days or more, including the day of injury, the employee shall receive all compensation otherwise provided by law from the first day of injury.The HR Department receives the first check and agreements to compensation unless the Injured Worker is represented by an attorney. The HR Department also receives the receipt for compensation paid once an employee returns to work. (Examples attached)The TPA provides an indemnity register via email every two weeks to the Human Resources contact of the employing Organization. (Example attached)The HR Department will recoup the lost wage payments from the employee through payroll deductions. (Example attached)

Injured Worker Lost Wage Benefits Calculation: 2302 Wages; definition and computation; valuation of board and lodging.(a)"Average weekly wage" means the weekly wage earned by the employee at the time of the employee's injury at the job in which the employee was injured, including overtime pay, gratuities and regularly paid bonuses (other than an employer's gratuity or holiday bonuses) but excluding all fringe or other in-kind employment benefits. The term "average weekly wage" shall include the reasonable value of board, rent, housing or lodging received from the employer, which shall be fixed and determined from the facts in each particular case.(b)The average weekly wage shall be determined by computing the total wages paid to the employee during the 26 weeks immediately preceding the date of injury and dividing by 26, provided that:(1)If the employee worked less than 26 weeks, but at least 13 weeks, in the employment in which the employee was injured, the average weekly wage shall be based upon the total wage earned by the employee in the employment in which the employee was injured, divided by the total (2)If an employee sustains a compensable injury before completing that employee's first 13 weeks, the average weekly wage shall be calculated as follows:a.If the contract was based on hours worked, by determining the number of hours for each week contracted for by the employee multiplied by the employee's hourly rate;b.If the contract was based on a weekly wage, by determining the weekly salary contracted for by the employee; orc.If the contract was based on a monthly salary, by multiplying the monthly salary by 12 and dividing that figure by 52; andd.If the hourly rate of earnings of the employee cannot be ascertained, or if the pay has not been designated for the work required, the average weekly wage, for the purpose of calculating compensation, shall be taken to be the average weekly wage for similar services performed by other employees in like employment for the past 26 weeks.(3)In any event, the weekly compensation allowed shall not exceed the maximum or be less than the minimum provided by law. To determine the maximum and minimum allowable weekly compensation, reference the Department of Labors website: http://dia.delawareworks.com/workers-comp/documents/Workers%20Compensation%20Rate%20Chart.pdfOnce a weekly compensation rate is established by the TPA, this rate stays the same for the life of the claim. An attorney or an employee can request for benefits to be paid under both the PIP and Workers Compensation claims when an automobile is involved. The most common request is for the Workers Compensation claim to pay all the medical bills and 66 2/3 of the wages while PIP pays the difference between both wage benefits.

Title 29 5933 Leaves. (Salary Supplement)Whenever an officer or employee of the State, including those exempt from the classified service, qualifies for workers' compensation disability benefits, such officer or employee, for a period not to exceed 3 months from the date such compensation begins, shall not be charged sick leave and shall receive from the State the difference, if any, between the total of: (1) The amount of such compensation, (2) any disability benefits received under the Federal Social Security Act, and (3) any other employer supported disability program, and the amount of wages to which the officer or employee is entitled on the date such compensation begins If while performing a hazardous duty assignment the employee shall be entitled to 12 months. (See the memo for application)

Insurance Coverage Office

Personal Injury Protection (PIP) InsuranceConsiderations14ProceduresThe State of Delaware carries a self-insured automobile insurance policy that provides Personal Injury Protection (PIP) CoverageAll vehicles registered in Delaware are required to carry this coverage. It is a form of no-fault automobile insurance which provides payments of medical bills and lost wages incurred within two years from the date of the accident.

15ProceduresThe States PIP limits are $25,000 per person/$300,000 per accident.An Auto Accident must be reported to the ICO within 24 hours. The reports are submitted to the ICO from Fleet Services or the employing Organization electronically via the ICO website, by fax, or email.Use the link below to access the Auto Accident Report form located on the ICO website. http://inscov.delaware.gov/forms/documents/auto_accident_LCE.pdf

16If the Auto Accident Report form notes that an employee is injured, the ICO establishes a claim, generates a claim number, and assigns the claim to an ICO Officer. mails a PIP Application form with statute information to the employee. sends a copy of this letter and form to the employing Organizations Human Resources (HR) Department contact.

If the Auto Accident Report form notes that an employee is injured and is missing time from work, the ICO establishes a claim, generates a claim number, and assigns the claim to an ICO Officer. mails a PIP Application form with statute information to the employee. sends a copy of this letter and form to the employing Organizations HR Department contact. emails a Wage and Salary Verification Letter and Form to the HR Department Contact.

The HR representative for the employing Organization must complete the Wage & Salary Verification Form and return it to the ICO with a copy of the employees PHRST pay advice closest to the date of the motor vehicle accident. Copies of any and all disability notes must be sent to the ICO. Before any medical or lost wage payments are made under the PIP Claim, the completed PIP Application Form must be received by the ICO. The employee is charged sick or annual leave until the ICO receives the completed PIP Application form and PIP lost wage benefits are issued. Once the average weekly rate is established by the ICO, this rate stays the same for the life of the claim.

For an employee who does not work overtime, the lost wage benefits are calculated as follows:

Net WagesPlus Deductionsx 26Gross Wage/Week 52Net Wage/Week 5Net Wage/DayFor an employee who consistently works overtime (OT), in addition to calculating the base wages, the ICO has to calculate the OT wages as follows:

OT Wages (26 weeks prior to date of loss)26Gross OT Wages/Week x 80%Net OT Wages/Week 5Net OT Wages/DayThe ICO provides a copy of the Wage Calculation Worksheet and a copy of the Payment Voucher to the HR contact of the employing Organization. An attorney or an employee can request for benefits to be paid under both the PIP and Workers Compensation claims. The most common request is for the Workers Compensation claim to pay all the medical bills and 66 2/3 of the wages while PIP pays the difference between both wage benefits. The Human Resources Department recoups the PIP payments from the employee through payroll deductions.

Statewide Benefits Office (SBO)Short-Term Disability The Payer of Last ResortLeslie Ramsey23Disability Insurance Program (DIP)The State of Delawares Disability Insurance Program (DIP) is comprised of a Short-Term Disability (STD) program and a Long-Term Disability (LTD) Program.The Hartford is the current administrator and insurer of the DIP. By definition, disability insurance pays a portion of an employees wages if they are unable to work because of a disabling illness or injury that happens on or off of the job.

Who is Enrolled in the DIP?Employees covered by the Delaware State Employees Pension Plan pursuant to 29 Del. Chapter 55, excluding temporary and seasonal employees.Enrollment is automatic for employees hired on or after January 1, 2006 into a position covered by the Delaware State Employees Pension Plan, when the employing organization completes data entry into PHRST or other payroll system. No election or choice by the employee! Who is Enrolled in the DIP?Employees hired prior to January 1, 2006:One-time irrevocable open enrollment period held for pension vested employees in 2005.One-time election period held in 2006 for existing pension vested employees.Majority of State employees are enrolled in the Disability Insurance Program!

Disability Insurance Program (DIP)DIP is legislated under Title 29, Chapter 52 A of the Delaware Code. Pertinent statutes include:

29 Del.C. 5251 (c ): Creditable compensation shall mean the base rate of compensation that the employee received on the last day of employment before the employee developed a disability as determined by the Committee.

The Committee is the State Employee Benefits Committee (SEBC).

Creditable compensation is also referred to as pre-disability salary or earnings.

27Disability Insurance Program (DIP)29 Del.C. 5253 (a): Participating employees shall be eligible to utilize earned sick leave for absences due to accident, illness, or injury for periods before disability benefits commence under this chapter, such that the participating employee receives 100% of creditable compensation for such periods, not to exceed the employees sick leave balance.The period before disability begins is called the elimination period, which is 30 calendar days starting with the employees date of disability.

Disability Insurance Program (DIP)29 Del.C. 5253(b)(1): The elimination period must commence and conclude within normal working periods for employees who work less than 12 months per calendar year. 29 Del.C. 5253(b)(7): Once an employee exhausts their elimination period, the employee will be deemed to have applied for benefits under this section and shall not be eligible to utilize paid leave in lieu of applying for Short-Term disability. Disability Insurance Program (DIP)29 Del.C. 5253(b)(6): Employees enrolled in and receiving short-term disability (STD) compensation shall receive a maximum of 100% of base pay. If the employee is otherwise eligible for holiday pay or a paid leave other than identified in paragraph (b)(4) of this section, the employee will be granted 100% pay on the day in question without a residual. All leave supplements will be calculated on a per pay basis.

Note: Leave identified in paragraph (b)(4) is annual, sick, compensatory or donated leave.

30Short-Term Disability (STD)Educational OrganizationsEmployees who develop a disability during their normal working period, including the winter or spring breaks, are eligible to file an STD claim and receive benefits through the end of the current school year assuming the employee is able to satisfy the calendar day elimination period before the last day of the school year. Should the disability continue through the employees non-working period and into the subsequent school year, the non-working time period counts toward satisfaction of the 182 calendar day STD benefit period.

Short-Term Disability (STD)Educational OrganizationsEmployees who are unable to satisfy the calendar day elimination period before the end of the current school year will resume completion of the elimination period as of the first day of their normal working period in the subsequent school year, as long as the employee remained disabled through the non-working period.

Disabilities that begin during a non-working period for less than twelve month educational employees may not be claimed until the employees normal working period resumes. The actual date of the employees disability will remain unchanged however the elimination period begins the first working day of the employees normal working period in the new school year.

Short-Term Disability (STD)Educational OrganizationsThe normal working period for less than twelve month educational employees will include the winter and spring breaks and non-contractual days during the STD elimination period. The normal working period for less than twelve month educational employees is defined as the first scheduled day of work during the current school year through the last scheduled day of work during the current school year. The non-working period for less than twelve month educational employees is defined as the period between the last scheduled day of the employees normal working period in the current school year through the first scheduled day of the employees normal working period at the start of the subsequent school year.Short-Term Disability (STD)Employees deemed to be totally disabled as defined in the STD program are to be paid a rate of up to 75% of the employees creditable compensation.If the employee is deemed to be residually or partially disabled, the plan provides a residual or partial disability benefit to the employee based on a formula calculated by The Hartford. Residual or residually disabled means the employee is performing some, but not all of the essential duties of their occupation, and as a result is earning 20% but no more than 80% of the employees creditable compensation.

Short-Term Disability (STD)If the employee is receiving Other Income Benefits, The Hartford may award a minimum benefit to the employee of $25.00 or 10% of the gross STD benefit before the deduction of Other Income Benefits, which ever is greater. 29 Del.C. 5253 (b)(3):Creditable compensation during periods an employee receives short-term disability benefits shall include general salary increases awarded or reductions in salary instituted during the period of short-term disability.

Short-Term Disability (STD)When the employees STD claim is approved, The Hartford will email an Explanation of Benefits (EOB) statement to the email address provided by the agency/district. The EOB provides the employing organization with the following information:STD Amount to pay the employee;Payment (Approval) time periods; and Offsets (Other Income Benefits) amounts, if applicable The STD benefit is paid by the State of Delaware on a bi-weekly basis via a payroll check through PHRST.Only use the Net Benefit amount on the EOB to pay STD wages to your employees. The Net Benefit reflects the total disability, residual disability or minimum disability amount payable for the approved STD period. Other Income Benefits Other Income Benefit means the amount of any benefit for loss of income, provided to the employee or to the employees family, during the same period the employee is awarded STD benefits.This includes any benefits for which the employee or the employees family is eligible or that are paid to the employee, the employees family or to a third party on the employees behalf from programs such as:Other Income Benefits United States Social Security Act, the Civil Service Retirement System, the Railroad Retirement Act, the Jones Act, the Canada Pension Plan, the Quebec Pension Plan or similar act. The Veterans Administration or any other foreign or domestic government agency for the same disability;Any temporary or permanent disability benefits under a Workers Compensation law, occupational disease law, or similar law;Compulsory no-Fault (State or personal) automobile insurance;The portion of a settlement or judgment minus associated costs of a lawsuit that represents or compensates for the employees loss of earnings for the same disability.

Other Income Benefits Please refer to the STD benefits booklet posted on our website at www.ben.omb.delaware.gov/disability to view the complete list of Other Income Benefits. Other Income Benefits Social Security Disability (SSD)29 Del.C. 5253 ( c )(4): Any employee who applies for long-term benefits pursuant to this chapter must apply to the Social Security Administration for disability benefits. Long-term disability benefits provided under this chapter shall be reduced by any disability benefit received from the Social Security Administration.The LTD program includes a full family offset. This means that the employees LTD benefit will be reduced or is offset by awards issued to family members by the Social Security Administration.Individuals awarded LTD benefits by The Hartford must also exhaust all appeal levels with the Social Security Administration for disability benefits; a process that can take more than a year to exhaust.

40Other Income Benefits Social Security Disability (SSD)Often, the Social Security Administration awards disability benefits retroactively back to the employees date of disability. Should this occur, the current or former employing organization is responsible for recouping overpaid STD wages from the current or former employee.As the LTD program is insured, overpaid LTD wages will be recouped by The Hartford.LTD beneficiaries are required to provide The Hartford with a copy of their award or estimated letter from the Social Security Administration. SSD awards on the STD Initial Account Balance Report will reflect the Recalculation Codes on the following slide.Other Income Benefits Social Security Disability (SSD)Recalculation Reasons ExplanationOIB-SS-PSSD AwardOIB-SS-PSSD EstimateOIB-SS-PSSR AwardOIB-SS-PSSR EstimateOIB-SS-DSSD AwardOIB-SS-DSSD EstimateOIB-SS-DSSR AwardOIB-SS-DSSR Estimate

Social Security Disability AwardEstimated Social Security Disability AwardSocial Security Retirement AwardEstimated Social Security RetirementDependent Social Security Disability AwardEstimated Dependent Social Security AwardDependent Social Security Retirement AwardEstimated Dependent Social Security Retirement Award42Other Income Benefits Workers Compensation (WC) & State Personal Injury Protection (PIP) Employees enrolled in the DIP who expect to be out of work for at least 30 calendars days (elimination period) are required to file an STD claim, even if the employee applied for and/or is receiving Workers Compensation (WC) or Personal Injury Protection (PIP) benefits.WC & State PIP claim information is provided to The Hartford in two ways:First, within 24 hours of when the employee advises The Hartford of the nature of their injury and whether it was work related, The Hartford contacts the Insurance Coverage Office (ICO) for indemnity award information. Other Income Benefits Workers Compensation (WC) & State Personal Injury Protection (PIP) The information provided by the ICO does not include Salary Supplement information. Unless instructed by the employing organization, The Hartford will adjudicate the employees STD claim on the assumption that the employee is entitled to the 3 month salary supplement.Secondly, the ICO provides SBO with a monthly report listing all employees who were awarded WC and PIP benefits during the prior month. SBO processes the report (i.e., eliminating employees not enrolled in the DIP and those who Return to Work (RTW) within the elimination period) and sends a revised report to The Hartford to upload into their claim systems. Other Income Benefits Employee Personal Injury Protection (PIP) The Hartford obtains the employees PIP award information directly from their personal auto carrier (i.e., Nationwide, Allstate, State Farm, etc.).

45Other Income Benefits Retroactive Awards29 Del.C. 5943(h): No action for reimbursement of wages, benefits or both, improperly paid to a state employee shall be brought after the expiration of 3 years from the date the wages, benefits or both were improperly paid.

STD benefits are considered properly paid until the employee or former employee receives Other Income Benefits. The start of the 3-year period referenced in 29 Del.C. 5943(h) begins when the employing organization receives the emailed STD Initial Account Balance Report from The Hartford. The recoupment process should begin immediately. Other Income Benefits Agency/District NotificationsOther Income Benefits awarded prospectively or retroactively offset STD wages paid to an employee and the offset amount must be recouped and refunded to the DIP Funding line by the current or former employing organization. An STD Initial Account Balance Report was created by The Hartford in 2007 to provide the employing organizations with notice of individual Other Income Benefit awards and/or additional STD benefits due on current and former STD claimants.

47Other Income Benefits Agency/District NotificationsDetailed instructions on how to interpret data on the STD Initial Account Balance Report is posted under Procedure DIP-003 on the Statewide Benefits Office secure benefits representative website at https://reps.omb.delaware.gov/: User name: repsPassword: BEN@hrm*122

48Other Income Benefits Agency/District NotificationsWithin 2 weeks of receiving an emailed STD Initial Account Balance Report, please provide Martha (Marti) Evans of the Statewide Benefits Office with the following information: Claimants nameDo you agree with overpayment amount stated on the STD Initial Account Balance Report? If no, please explain. Was correct STD overpayment amount recouped and refunded to the DIP funding line? If no, please explain. Is your Organization working with the Division of Accounting to recoup the claimants overpaid STD wages?

Other Income Benefits Agency/District NotificationsSubsequent information/data on all claimant recoupments should be reported directly to Marti Evans at martha.evans@state.de.us. STD Initial Account Balance Reports cannot be duplicated by The Hartford but can be requested directly from Marti Evans. Each agency/district HR Office is responsible for providing the Statewide Benefits Office with the current names & email addresses of appropriate internal contacts to receive emails, telephone calls and/or faxes from The Hartford.

Other Income Benefits Agency/District NotificationsProvide changes to contact information to Mary Thuresson of the Statewide Benefits Office. Mary maintains the Organization distribution list for this program and provides The Hartford with updates, as applicable. Mary can be reached at (302) 739-8331 or by email at mary.thuresson@state.de.us. Do not provide contact information directly to The Hartford.

Other Income Benefits Agency/District NotificationsAs the DIP is a wage paying benefit, internal communication between the HR and Payroll offices is a must! Reminder: It is important to always use secure measures when communicating protected health information (PHI) to help maintain the privacy and security of sensitive data.The Statewide Benefits Office has updated the DIP distribution list to include Organization Payroll Representatives.

Be On The Lookout: Statewide Benefits Office (SBO) CommunicationsSBO Emails: Alerts, Memos and Organizational Specific MemosStatewide Benefits Office Secure Benefits Representative Website:CommunicationsDIP informationProcedureshttps://reps.omb.delaware.gov/User name: repsPassword: BEN@hrm*122

Statewide Benefits Office Inquiries on the Disability Insurance Program should be directed to the Statewide Benefits Office Customer Service Unit at (302) 739-8331 or by email at benefits@state.de.us.

www.ben.omb.delaware.gov/disability Pension Retirement Calculation ImpactsTrena Giddings55Pension Retirement CalculationPension retirement calculation is based on:

36 periods of 12 consecutive months plus lag pay

Creditable Years of Service

What is STD Reconciliation?The Short Term Disability (STD) Reconciliation is the process where the total amount an employee was paid while on STD is compared to what they should have been paid.

57What is the Purpose of STD Reconciliation?To ensure the employee was paid correctlyTo ensure that the pension calculation is not over-inflated or under-inflatedIf the employee isnt paid properly, the creditable compensation to calculate the pension is incorrectTo determine if the DIP fund was charged correctlyOffice of Pensions manages the DIP fundTo ensure there are no periods without payEmployees are provided pension credit based on their serviceIf an employees service includes periods without pay, the service requires adjustment

When is STD Reconciliation Required?When employee was on STD for more than a pay periodWhen the STD period is picked up in the creditable compensation scheduleIf the employee was approved for STD retroactivelyWhen the STD period displays high, low or zero payWhat information is needed to successfully complete STD Reconciliation?The STD Benefit Effective DateThe STD Benefit Termination DateThe Regular Daily Rate for the employeeAll applicable Explanation of Benefits (EOB) and/or STD Worksheets Daily Activity ReportsAny PIP or Workers Compensation information (if applicable)Some Organizations also supply an STD Worksheet

60What is an Explanation Of Benefit (EOB)?An EOB is a Hartford report that can be provided to the employing Organization indicating the Benefit Amount to be issued.Information provided on the EOB can include contract days worked for less than 12-month employees, Workers Compensation, PIP payments & Social Security Disability payments.Note: EOBs may have nothing helpful on them or may not be provided, but this does not mean STD cannot be reconciled.

What is a daily activity report?The Daily Activity Report provides benefits duration periods for both STD and Workers Compensation/PIP, and SSDI payments. It also provides the amounts for the third party payments.

62How do I calculate the daily rate?The Daily Rate is calculated using the Annual Salary during Short Term Disability divided by the # of days in the contract.Located under Job Data in PHRST

12-Month EmployeeAnnual Salary $20,665.30 divided by 260 equals $79.48 Daily Rate

Less than 12-Month EmployeeAnnual Salary $18,478.80 divided by 174 equals $106.20 Daily Rate

Supplementing STD PaymentsEmployees may use available annual leave, sick leave, compensatory time or donated leave to bring the STD benefit payment up to a maximum of 100% of pre-disability base salary. The maximum an employee can supplement is 25% of their daily salary per day.The supplement should be reflected as hours used on the paycheck. In order to receive the full 25% Supplement the employee uses 18.75 hours or 1.875 hours per day (20 hours or 2 hours per day for an 8-hour employee).

STD RECONCILIATION WORKSHEET

STD RECONCILIATION WORKSHEETSTD Period: The period during which the employee was receiving payment for STD.PIP Period: The period during which the employee was receiving payment from a third-party insurance company.WC period: The period during which the employee was receiving payment through Workers Compensation.Daily Rate: The regular daily rate as calculated for the period the employee was on Short Term Disability.Supplement: If the employee supplemented STD payments with Sick/Annual Leave Hazard Duty: Employees in a Hazard Duty classified position shall have their Daily Rate Calculated with the Hazard Duty pay included. STD RECONCILIATION (contd)

PHRSTSystem ConsiderationsBecky Rokosz70Job DataUpdating Job Data with the correct Action/ReasonLeave of Absence Temporary unpaid absencePaid Leave of Absence Temporary paid absenceReturn from Leave Puts employee back to a Payroll Status of ActiveSelect the appropriate reasonRefer to the handout of PHRST procedure Leave of Absence HRU-JOB-12 also available on the PHRST website

Short-Term Disability PaymentsSTD payments are:Subject to all taxes except Unemployment TaxPensionableCannot be deferred through Deferred Compensation (457(b)) or Tax-Sheltered Annuity (TSA 403(b))Subject to all deductions including garnishmentsFunded by OMB; including the associated OECs

Short-Term Disability PaySetting Up Additional Pay for Short-Term Disability with an Earnings AmountPHRST Website - End User Procedure, Additional Pay PRU-ADD-01 Create Additional Pay by entering the Earnings Code STD The STD Combo Code in Additional Pay automatically populates the correct funding (000682264); charges to OMBEnter Effective Date, Addl Seq Nbr, Earnings, End Date, and check OK to Pay

The Combo Code can be viewed on the Additional Pay page under Job Information>Job Data Override.73Short-Term Disability Pay, cont.Setting Up Additional Pay for Short-Term Disability with No Earnings AmountCreate Additional Pay by entering the Earnings Code STD Enter Effective Date, Addl Seq Nbr, and check OK to PayThe STD Earnings Code will generate on Payline and the amount can be entered on Payline each Pay PeriodIf you use this method for STD payments that may not be the same each pay period, the correct Combo Code will automatically populate. 74Short-Term Disability Pay, cont.Job Pay indicator must be checked on for Additional Pay to flow to PaylineIf the Job Pay indicator is offEnter STD on Payline or STDA in Time and LaborSend a Data Correction Request (DCR) to update the STD Combo Code to 000682264When adding a row on Payline, do not copy the STD row because it will copy the OMB STD fundingOr, if you copy the STD row, you must enter the correct Combo Code for that Earnings

If you accidently copy the STD row on Payline someone from PHRST will contact you75PIP and Workers Compensation AdjustmentsUse the AWC Earnings Code to make PIP or Workers Compensation Adjustments on PaylineUse the WCAA TRC to make PIP or Workers Compensation Adjustments in Time and LaborTo decrease Gross Pay enter the AWC Earnings Code or WCAA TRC as a negative amountTo increase Gross Pay (as a correction to a previous AWC/WCAA reduction) enter the AWC Earnings Code or WCAA TRC as a positive amount

76On-Demand Check Requests

On-Demand checks for Short Term Disability payments should not be requested if the Explanation of Benefits (EOB) is received prior to Pay Confirm If the system is in view-only mode, send in a DCR to add the payment to the on-cycle checkIf the employee gets a full pay for the cycle using other earnings before the EOB is received, make the necessary adjustments on the next pay period

PCG Payroll Wage Overpayment and RepaymentPoliciesMicheale Lessard78Tools & ResourcesWebsite: www.accounting.delaware.govPolicies and Procedures for calculating and submitting Wage Overpayments to PCG.PCG-OVRPAY Wage Overpayment PolicyPCG-REPAY Payroll Repayment PolicyFormsCurrent/Prior Year Payroll Repayment WorksheetCurrent/Prior Year Notification of Wage Overpayment TemplatePayroll Repayment Form

PayBreeze IIDownload is found on the PHRST WebsitePaycheck Calculation Software that helps you calculate:Gross-to-Net CalculationsGross-Up CalculationsCorrected PaycheckPaycheck Scenarios

Tools & Resources

Wage OverpaymentsOrganization Payroll Officers work with the DOA Payroll Compliance Group (PCG) to timely and accurately resolve overpayment situations. The Payroll Repayment Procedure, PCG-REPAY, offers step-by-step instructions on the process for repayment calculations, employee notifications, repayment agreements, and record corrections.Wage OverpaymentsSubmit worksheet to PCG for approval. We will work with you if you need help with the calculations.Once approved, Current or Prior Year Notification of Wage Overpayment Letter is given to the employee to sign and set up repayment options. (10 Days to reply.)Repayment PoliciesTo avoid additional tax implications, overpayments must be recovered in-full in the same calendar year in which the overpayment occurred.Repayment PoliciesOverpayments are recovered through the PHRST Payroll system in one of two ways.Wage Reduction (-WGR) If overpayment is recovered in the same year that it occurred. Employees receiving regular paychecks will have earnings on subsequent paychecks in the current calendar year reduced by the amount of the overpayment. This is entered as a negative earning.After-Tax General Deduction (PAYDUE) For prior-year overpayments, employees will have an after-tax general deduction taken to recover the overpayment. Repayment PoliciesOverpayments occurring over multiple pay periods may be recovered over multiple pay periods to reduce financial hardship.No repayment shall take longer than the period of the overpayment (i.e., overpayments occurring over 3 pay periods must be repaid in no more than 3 pay periods).Alternative payment options may be available in cases of financial hardship.Accepting personal checks or money orders should be the exception to the rule.Repayment PoliciesWhat if an employee is unresponsive?If an employee ignores all attempts to discuss an overpayment or refuses to sign a repayment agreement, the State is entitled to collect the amount of the overpayment from the employees current earnings. Organization Payroll Officers are advised to make at least three attempts to contact an employee about a wage overpayment before initiating collection through the Payroll system. It is imperative that all attempts at communicating with the employee are documented. If an employee does not sign a Notification of Wage Overpayment or Repayment Agreement form within 10 business days of notification, follow the applicable instructions in the PCG procedures for the collection of either current year or prior year overpayments.Repayment PoliciesWage overpayments for terminating employees, deceased employees, and employees transferring to another Organization should be turned over to the PCG for collection of the remaining balance owed.Wage & Benefits Paying PoliciesPanel Discussion

88Questions?Comments?

89AnnouncementDisability Insurance Program (DIP) STD Wage Paying & Recoupment Seminars

Dates/Times: September 15, 2015 from 9:00 am 4:30 pmOctober 26, 2015 from 9:00 am 4:30 pmNovember 9, 2015 from 9:00 am 4:30 pm

Location: Delaware Technical & Community College (DTCC), Terry Campus

Please note: Human Resources & Payroll representatives should attend jointly and on the same seminar date, as guidance will be provided for all individuals involved in the management of employee short-term disability records.

Be on the lookout! Online Registration is planned to launch the week of August 17th.

STD Payroll Repayment WorkshopsPayroll Repayment WorkshopsNext Forum: November 2015 (Tentative)Year End Checklist

On the Horizon.

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