2017 Biweekly Payroll Accrual

2017 Biweekly Payroll Accrual

BIWEEKLY PAYROLL ACCRUALS

 The biweekly payroll accrual is recorded in the General Ledger and appears on the Statement of Activity (SOA).  In June, the salary shortcodes are debited and the entry is reversed on the July  SOA.  The SOA entries contain the following field values: 

Type of Expense GL Account Value SOA Description
Salary 584300 Accrued Bi-weekly Payroll
Benefits 598100 Accrued Bi-weekly Frin

 

The biweekly payroll accrual amount represents the number of workdays in June that are paid in July - in other words, the salary and benefit amounts that were earned in one fiscal year but paid in the next fiscal year.

The biweekly payroll accrual is estimated using the salary payments made in the last biweekly payroll of the fiscal year.  The benefit amounts are estimated using a percentage of the salary payments.

For 2017, there will be 10 June workdays that will be paid in July.  All of the workdays will be paid on the 7/07/17 biweekly paydate (pay period June 18-July 1).  The biweekly payroll accrual amount will be 100% of the last biweekly payroll in June.

Biweekly payroll accrual amounts are not charged to federal and non-federal sponsored projects due to sponsor regulations; instead, the accrual amounts are charged to fund 30000.

An example: 

  • John Doe is paid $1,000 gross pay during the last biweekly payroll of the fiscal year.
  • Salary Accrual = $1,000 * 100% = $1000.  Recorded using GL account 584300 with SOA description “Accrued Bi-Weekly Payroll”.
  • Benefit Accrual = $1000 * 16.85% = $168.50.  Recorded using GL account 598100 with SOA description “Accrued Bi-Weekly Payroll Frin”.

Questions about biweekly payroll accruals can be directed to the Payroll Manager or Payroll Sr. Supervisor in the University Payroll Office Pay/Timekeeping Section.