| To: | Agency Payroll/Personnel Contacts |
| Subject: | Coding Additional Shift Pay with a Lump Sum Retroactive Amount |
| Sent Date: | 06/22/2007 |
The memo dated 05/31/2006 titled ‘SB 1363 program modifications…’ included information regarding a change in ‘Shift Differential Pay’ from flat 5% to up to 25%. At that time, a new earnings code ‘SFO’ was created so the agency may pay an additional lump sum amount to an employee for extra shift pay during a pay period.
It was also stated in that memo that agencies are to continue to use the earnings ‘SFT’ to pay shift differential for a prior pay period shift hours. This is true when an employee is being compensated for additional hours that were not sent through payroll for processing.
Example: Employee did not code 8 hours of ‘ACT – Actual Hours Worked’ in a previous pay period and the employee is eligible for shift pay: Hours would be entered on the next pay period as 8 hours ‘PPP – Prior Pay Period Hours’ and 8 hours of ‘SFT- Shift Pay’.
However, if an employee (eligible for shift pay) did not receive an increase in time for payroll processing, a ‘RPR – Retro Pay Regular’ lump sum pay would be submitted for the difference between the gross paid at the old rate and the gross that should have been paid at the new rate. In this instance, the employee should also receive an additional amount of shift pay. The agency would also submit ‘SFO – Shift Pay Other’ lump sum amount for the difference still owed in shift pay.
Example: An employee had a CC merit increase process a pay period late. The employee was paid 80 hours at $15.00 and should have been paid at $15.50 per hour. $15.00 - $15.50 = $.50 x 80 hours = $40.00. In addition this employee should receive a shift pay of 5%, $40.00 x .05 = $2.00. This employee should then have a RPR amount of $40.00 for back pay on the merit increase and a SFO amount of $2.00 for shift pay.
As a reminder, the following information should be included in the Retro Pay (RPR) Comments:
1. Statement of Purpose - Explain in detail why the RPR is necessary.
2. Verify the original payroll information via the payroll register and/or the EIS “IER” online inquiry screen. Include the following in the Comments: the hours and rate paid for each pay date; the new rate; the difference between the previous rate of pay and new rate of pay times the hours paid; and the amount owed for that pay period.
3. If there is more than one pay period, add the amounts together and show the total amount owed to the employee.
Example: Completion of Underfill with Retro Date of 5/21/06 with new rate of pay of $19.17 was processed on 7/11/06.
Retro pay is required for three pay periods. On pay date 6/30/06, an STC of $633.00 was included in the pay period gross amount.
Pay date 6/16/06: Paid 80.6 hours at $17.67. The rate should be
$19. 17. Difference is $1.50 x 80.6 = $120.90
Pay date 6/30/06: Paid 80.8 hours at $17.67. The rate should be $19.17. Difference is $1.50 x 80.8 = $121.20
Pay date 7/14/06: Paid 80.0 hours at $17.67. The rate should be $19.17. Difference is $1.50 x 80.0 = $120.00
Total amount to be paid: $120.90 + $121.20 + $120.00 = $362.10
As always, if you have any questions regarding this e-mail, please contact the DSP Helpdesk at 334-2394 or e-mail at DSPhelp@sco.idaho.gov.
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