Payroll Labor Distribution
The file that interfaces payroll data from the Employee Information System (EIS) to the Statewide Accounting and Reporting System (STARS) is called the labor distribution file.
The Division of Statewide Payroll interfaces four payrolls from EIS to STARS:
The labor distribution file contains a Batch Type G and a Transaction Code (TC) 326 Record Net Pay For Payroll for every state agency. The agency code is the batch number.
The TC 326 records the personnel expenditures (gross salary and employee fringe- benefits) to the appropriated budget unit and fund. There is a TC 326 for each position control number and personnel subobject within an agency.
The TC 326 has a fund override that allows the transaction to bypass STARS financial edits. The TC 326 will process even if there is not sufficient appropriation or cash. However, an agency will have to take corrective action to resolve the deficiencies prior to posting any other expenditure.
The Division of Statewide Accounting will monitor negative balances and will send e-mail notifications to agencies at fiscal year-end.
The G batches will error the night they are interfaced into STARS. The DAFR8002 STARS EDIT ACTIVITY ERROR REPORT in Online Reporting (in the SCNTRL sys id) will display the G batch with a B13 invalid approval error. Agencies do not need to take action at this time.
The Division of Statewide Accounting will release the transactions again for processing on: 1) The night before payday for state agency payroll; and 2) Payday for the other payrolls. The Division of Statewide Accounting will run job DA809090 to release V batches.
The G batches will process unless the TC 326 encounters any table edits that cause it to error again. Each agency will be responsible for reviewing the erred transactions. The agency will need to contact the Division of Statewide accounting for corrections to the table errors. Agencies should send corrections via e-mail to servicedesk@sco.idaho.gov.
Taxable moving expenses are included on the labor distribution file with a subobject of 5359. The taxable moving expenses will error in STARS for an EQ3 -Invalid PCN/Subobject error. (This error means that a PCN is required when the subobject used is in the Personell Costs range. A PCN is not allowed when the subobject is not is the Personel Costs range.) The SCO will remove the PCN (position control number) from the transaction and release the transaction for processing. No action is required from the agency.
The TC 326 debits expenditures (4200) and credits cash in treasury (1003) general ledgers.
The labor distribution file contains the following batch types and transactions for the payroll- clearing agency 142.
Batch Type - Labor Distribution Transaction Codes
V - 32E EFT Or Cash Transfers for Payroll Vendors
V - 32F Reclass P/R Clearing to Federal Tax Liability
V - 32G Reclass P/R Clearing to FICA TAX Liability
V - 32H Reclass P/R Clearing to SUI Tax Liability
V - 32I Reclass P/R Clearing to IDAHO Tax Liability
V - 32J Reclass P/R Clearing to Oregon Tax Liability
N - 320 Record Net Pay For Payroll
N - 322 Reclassify P/R Clearing to Payroll Wire Transfer Liability
V - 324 Record Payroll Vendor Payment
G - 327 Record Cash Transfer to Payroll Trust Fund
The N and V batches will process the night they are interfaced to STARS. State Employee net-pay and payroll vendor warrants will be created that night and ready for distribution the following day. Direct deposit payments to payroll vendors will post to the STARS warrant write file with a future due date. The transactions will post from the warrant write file two days before payday.
The TC 32E issues payroll vendor payments to other state agencies such as the Department of Administration and the Department of Labor without writing warrants. The TC 32E will error the night it is interfaced to STARS with a B13 invalid approval error.
The following needs to be completed in STARS in order for DSP to include the transaction in the labor distribution file:
The TC 32E debits payroll-clearing liability (2499) and credits cash in treasury (1003) general ledgers.
The TC 32F processes the night it is interfaced to STARS. The transaction creates a Federal Tax liability. DSP will process a TC 2T1 directly in STARS when they are ready to pay the federal taxes. The TC 2T1 will clear the liability.
The TC 32F debits payroll-clearing liability (2499) and credits federal tax liability (2110) general ledgers.
This TC 32G processes the night it is interfaced to STARS. The transaction creates a FICA tax liability. DSP will process a TC 2T2 directly in STARS when they are ready to pay the FICA taxes. The TC 2T2 will clear the liability.
The TC 32G debits payroll-clearing liability (2499) and credits the federal tax liability (2111) general ledgers.
The TC 32H processes the night it is interfaced to STARS. The transaction creates a SUI tax liability. DSP will process a TC 2T3 directly in STARS when they are ready to pay the SUI taxes. The TC 2T3 will clear the liability.
The TC 32H debits payroll-clearing liability (2499) and credits the federal tax liability (2113) general ledgers.
The TC 32I processes the night it is interfaced to STARS. The transaction creates an Idaho tax liability. DSP will process a TC 2T4 directly in STARS when they are ready to pay the Idaho taxes. The TC 2T4 will clear the liability.
The TC 32I debits payroll-clearing liability (2499) and credits the federal tax liability (2114) general ledgers.
The TC 32J processes the night it is interfaced to STARS. The transaction creates an Oregon tax liability. DSP will process a TC 2T5 directly in STARS when they are ready to pay the Oregon taxes. The TC 2T5 will clear the liability.
The TC 32J debits payroll-clearing liability (2499) and credits the federal tax liability (2115) general ledgers.
The TC 320 processes the night it is interfaced to STARS. The TC 320 issues the net-pay warrants to employees who are not on direct deposit. There is an N batch type for each state agency. The N batch number is the agency code and is printed on the warrant. Warrants are sorted by this number and returned to the agency on Tuesday before payday for distribution on payday.
The TC 320 debits payroll-clearing liability (2499) and credits cash in treasury (1003) general ledgers.
The TC 322 processes the night it is interfaced to STARS. The transaction creates a direct deposit wire liability.
An electronic file of all direct deposit detail information is created by DSP and sent to the direct deposit bank the week before payday. DSP will enter a TC 323 directly in STARS the night before payday. The TC 323 will clear the direct deposit liability.
The TC 322 debits payroll-clearing liability (2499) and credits payroll wire transfer liability (2460) general ledgers.
The TC 324 processes the night it is interfaced to STARS. The TC 324 writes a warrant or a direct deposit (EFT) to a payroll vendor. Warrants are printed that night and ready for distribution before payday. DSP flags direct deposit payments to vendors. The TC 324 to these vendors will have a future due date and will post to the STARS Warrant Write file. The transactions will post from the warrant write file two days before payday.
Vendor payments as they apply to payroll are payments to pay non-employees for various types of payroll deductions and withholdings. The SCO treats all employee costs and employee withholdings that are due to third parties as payroll vendor payments.
The TC 324 debits the payroll-clearing liability (2499) and credits cash in treasury (1003) general ledgers.
The TC 327 will error the night it is interfaced to STARS for B13 invalid approval level.
The TC 327 transfers cash into the payroll-clearing agency and payroll trust fund in order to write payroll-related warrants. There will be a TC 327 for each agency included in the payroll and it will be for the same amount as the agency's TC 326.
The TC 327 debits cash in treasury (1003) and credits payroll-clearing liability (2499) general ledgers.
The following Transaction Codes are entered by DSP directly into STARS to clear the liability accounts created by the transactions in the labor distribution file.
All of the following transactions codes would be in a Batch Type K:
2T1 Record Cash Disb – Federal Tax Payable - ACH
2T2 Record Cash Disb – FICA Taxes Payable ACH
2T3 Record Cash Disb – SUI Tax Payable - Warrant
2T4 Record Cash Disb – Idaho Tax Payable - Warrant
2T5 Record Cash Disb – Oregon Tax Payable - Warrant
323 Wire Transfer Direct Deposit Net Pay
The TC 2T1 clears the liability created by the TC 32F in the labor distribution file. DSP enters the transaction directly in STARS to create a payment for the federal taxes.
The TC 2T1 debits federal taxes payable (2110) and credits cash in treasury (1003) general ledgers.
The TC 2T2 clears the liability created by the TC 32G in the labor distribution file. DSP enters the transaction directly in STARS to create a payment for the FICA taxes.
The TC 2T2 debits FICA taxes payable (2111) and credits cash in treasury (1003) general ledgers.
The TC 2T3 clears the liability created by the TC 32H in the labor distribution file. DSP enters the transaction directly in STARS to create a payment for the SUI (unemployment) taxes.
The TC 2T3 debits SUI taxes payable (2113) and credits cash in treasury (1003) general ledgers.
The TC 2T4 clears the liability created by the TC 32I in the labor distribution file. DSP enters the transaction directly in STARS to create a payment for the Idaho taxes.
The TC 2T4 debits Idaho taxes payable (2114) and credits cash in treasury (1003) general ledgers.
The TC 2T5 clears the liability created by the TC 32J in the labor distribution file. DSP enters the transaction directly in STARS to create a payment for the Oregon taxes.
The TC 2T5 debits Oregon taxes payable (2115) and credits cash in treasury (1003) general ledgers.
The TC 323 records the wire transfer for the direct deposit. DSP enters the transaction directly in STARS and notifies the State Treasurer's Office to wire the cash funds to the current direct deposit bank.
The TC 323 debits the payroll wire transfer liability (2460) and debits the cash in treasury (1003) general ledgers.
The state of Idaho is currently using Vendor Number 820117415 07 as the direct deposit bank.