4 FAH-3 H-550
VOUCHERING AND PAYMENT OF SALARIES AND ALLOWANCES
(CT:FMP-99; 08-30-2018)
(Office of Origin: CGFS/FPRA/FP)
4 FAH-3 H-551 GENERAL
(CT:FMP-32;
08-15-2005)
Descriptions of the basis of vouchering, personnel to be
vouchered, method of vouchering, and the time and method of payment of salaries
and benefits and the allowances which are paid by the payroll systems are found
in 4 FAH-3
H-550.
4 FAH-3 H-551.1 Scope and Applicability
(CT:FMP-99;
08-30-2018)
a. This
subchapter describes the vouchering and the payment of salaries and allowances.
b. Provisions
of this subchapter are applicable to both the Consolidated American Payroll
Processing System (CAPPS) and the locally employed
staff (LE staff) payroll system.
4 FAH-3 H-551.2 Authorities
(CT:FMP-32;
08-15-2005)
a. Regulations
relating to the preparation of payroll vouchers are issued by the Office of
Personnel Management (OPM), the Office of Management and Budget (OMB), the
Government Accountability Office (GAO), and the Department of Treasury.
b. The Treasury
Financial Manual (TFM), Vol. 1, Chapter 3-2000 and SR-99-5, Human Resources and
Payroll Systems Requirements (1999), issued by the Joint Financial Management
Improvement Program (JFMIP), provide requirements for vouchering and payment of
salaries and allowances to employees.
4 FAH-3 H-552 METHOD OF
VOUCHERING
4 FAH-3 H-552.1 Basis for Vouchering
(CT:FMP-71;
04-23-2013)
a. Individual
pay record data derived from official sources includes:
(1) Form SF-50, Notification of Personnel Action,
data from the personnel system;
(2) Authority to pay telegram request from employees
current payroll office; or
(3) Form JF-62, Personal Services Contracting Action.
Master files together with employee pay history
and Time and Attendance (T&A) reports are the basis for rates and hours of
pay.
b. Form SF-1190,
Foreign Allowances Application, Grant and Report, authorizes or cancels payment
of such post-specific allowances as post differential, danger pay, post
allowance, temporary quarters subsistence allowance, living quarters allowance,
and separate maintenance allowance.
c. Documents
supporting deductions and allotments from gross pay include:
(1) Employees Withholding Allowance Certificate (and
State versions thereof);
(2) Form TSP-1, Thrift Savings Plan Election;
(3) Form SF-1199-A, Direct Deposit Sign-Up;
(4) Form DS-1992, Allotment of Pay;
(5) Form SF-2809, Health Benefits Election;
(6) Form SF-2817, Life Insurance Election;
(7) Form TSP-20, Thrift Savings Plan Loan
Application;
(8) Form SF-1187, Request for Payroll Deductions for
Labor Organization Dues; and
(9) Form OPM-1654, Combined Federal Campaign Pledge
Card.
d. Notification
should be made by CGFS/F/RR, the legal office, or other applicable authority of
authorization to garnish or withhold for debt to the United States Government.
4 FAH-3 H-552.2 Regular Payroll
(CT:FMP-32;
08-15-2005)
A regular biweekly payroll voucher is prepared to include
all employees being paid. An Earnings and Leave statement showing pay,
allowances, deductions, allotments, and net pay for a pay period and cumulative
totals for the calendar year to date, along with leave balances at the end of
the pay period, is available to employees each pay period.
4 FAH-3 H-552.3 Supplemental Payrolls
(CT:FMP-99;
08-30-2018)
Under the CAPPS system, when a payroll payment cannot be
included on a regular payroll, a supplemental payroll voucher may be prepared.
All payroll data from the supplemental voucher must be entered into the payroll
system. The LE staff payroll system
cannot generate supplemental checks. If an additional payment is required, the
amount due will be included in the payroll for the next pay period.
4 FAH-3 H-552.4 Pay Periods
(CT:FMP-99;
08-30-2018)
The pay period for all employees must cover two administrative workweeks. Pay
periods are numbered beginning with the first full pay period in a calendar
year and ending with the last pay period which began in the same calendar year.
4 FAH-3 H-552.5 Payroll Vouchers
(CT:FMP-32;
08-15-2005)
The Department of Treasury prescribes the following standard
forms for the purpose of making payments (1 TFM 3-2020):
(1) Form SF-1166, Voucher and Schedule of Payments;
(2) Form SF-1166-OCR, Voucher and Schedule of
Payments (OCR Readable); and
(3) Form SF-1166-EDP, for Treasurys Electronic
Certification System.
4 FAH-3 H-553 CERTIFICATION
4 FAH-3 H-553.1 Authority
(CT:FMP-32;
08-15-2005)
The responsibilities and accountability of a certifying
officer are provided in 31 U.S.C. 3528. Department guidance on certification
is provided in 4
FAH-3 H-430, Voucher Certification and Payment.
4 FAH-3 H-553.2 Responsibilities
(CT:FMP-32;
08-15-2005)
a. Prior to
certification of the payroll voucher, verification must be performed to provide
for accuracy and to reduce the possibility of unauthorized, fraudulent, and
other irregular acts. In addition, the certifying officer will make such
examination of the facts underlying the payroll voucher as is necessary to
ensure the correctness and validity of the payment. The Payroll servicing
office must have procedures in place for ensuring the validity of the voucher.
b. The payroll
voucher must be certified by a duly authorized certifying officer who does not
compute the individual amounts payable, maintain the payroll records, or
distribute the paychecks. No employee may certify his or her individual
disbursements, but may certify a voucher for the Department payroll that
includes his or her pay. The certified voucher schedule is transmitted to the
Treasury or the U.S. disbursing officer (USDO) for payment.
4 FAH-3 H-554 PAYROLL
PAYMENT
4 FAH-3 H-554.1 Time of Payment
(CT:FMP-99;
08-30-2018)
Payments to employees of the Department and other agencies
serviced by the Department payroll office must be
made no later than the second Thursday after the close of the pay period.
4 FAH-3 H-554.2 Payday for Locally Employed
Staff Payroll System
(CT:FMP-99;
08-30-2018)
Payroll payments are made on the second Thursday after the
close of the pay period unless local practices compel the designation of some
other day for LE staff. Only requests
that can be accommodated by the normal processing schedule may be considered.
In such instances, the Assistant Secretary for Global Financial Services may
determine some other payday.
4 FAH-3 H-554.3 Source of Funds Consolidated
American Payroll Processing System (CAPPS)
(TL:FMP-4;
06-15-1995)
Payment is vouchered from the Department of State clearing
account Undistributed Intragovernmental Payments, 19F3885.3, with simultaneous
collection from pertinent appropriations of serviced agencies by the issuance
of Form SF-1081, Voucher and Schedule of Withdrawals and Credits, as of the pay
date. Form SF-1081 along with a detailed advice of charge is furnished
biweekly to the agency which controls the charged appropriation. Both the
charge and credit sides of the Form SF-1081, along with the Voucher and
Schedule of Payments Form SF-1166, are reflected on the CAPPS monthly Form SF-224,
Statement of Transactions, to the U.S. Treasury. As the use of the clearing
account is to serve as an operating medium, the account should maintain a zero
balance.
4 FAH-3 H-554.4 Source of Funds Locally Employed
Staff Payroll
System
(CT:FMP-99;
08-30-2018)
Payroll costs are charged to pertinent agencies
appropriations and reported to the U.S. Treasury on the monthly Form SF-1221,
Statement of Transactions.
4 FAH-3 H-555 METHOD OF
PAYMENT - U.S. CITIZENS
4 FAH-3 H-555.1 Salaries
(CT:FMP-99;
08-30-2018)
a. Net pay of
employees by CAPPS is transmitted by means of electronic funds transfer (EFT)
using the Treasury Financial Communications System, where feasible. Direct
Deposit Sign-Up Form SF-1199-A or a computer generated facsimile must be
completed and signed by the employee. When payments are not possible by means
of EFT, salaries must be paid in U.S. Treasury dollar checks. Payment in
currency is not permitted.
b. All
employees hired after July 26, 1996 are subject to mandatory EFT requirements
consistent with the Debt Collection Improvement Act of 1996 (31 U.S.C. 3332).
The law mandates (with some exceptions) EFT for all Federal payments.
Recipients must designate one or more financial institutions or authorized
payment agents to which such payments must be
made. Recipients must provide agencies with the necessary information to make
these EFT payments at the time the employee is hired. This applies to all
employees of the Department of State as well as to employees of all agencies
serviced by the Department of State.
c. Overseas,
for non-American employees, including foreign service nationals, personal
service contractors, individuals hired through personal service agreements, and
all benefit recipients, the Department of State will implement use of EFT to
disburse all payments whenever it is consistent with host country law and
regulations, and practical when considering host country banking infrastructure
capabilities. The servicing CGFS center in conjunction with post management
will determine on a country specific basis whether the capability exists to
implement EFT payments for non-Americans. In some cases, where host country
law prohibits mandatory EFT, non-American employees may be given the option to
use EFT. This determination will also be made jointly with post management.
4 FAH-3 H-555.2 Allowances
(CT:FMP-32;
08-15-2005)
In addition to the benefits that may only be paid via the
payroll system, living quarters and temporary quarters subsistence allowance
may also be paid through the payroll system. Information about living quarters
allowance and temporary quarters subsistence allowance may be found in the
Department of State Standardized Regulations (DSSR), Chapters 130 and 120,
respectively.
4 FAH-3 H-555.3 Advances
(CT:FMP-71;
04-23-2013)
a. Advances,
other than advance of pay, are not paid through the payroll system. However,
repayment of an advance may be collected through the payroll system via a
recurring deduction. When an advance of living quarters allowance is made, it
is recorded from the signed request and approval form into the payroll system
and its conversion from advance to earned expense is recognized biweekly.
b. If the
servicing payroll office is unable to collect the total amount of the advance
from a Department of State employee, the collection responsibility is passed to
Accounts Receivable (CGFS/F/RR).
4 FAH-3 H-556 METHOD OF
PAYMENTLOCALLY EMPLOYED STAFF
4 FAH-3 H-556.1 Salaries and Allowances
(CT:FMP-99;
08-30-2018)
Salaries and allowances of locally
employed (LE) staff and personal services contractors and AMCITs are
paid in the currency of the country where employed, except as otherwise
authorized per 4 FAH-3
H-556.2.
4 FAH-3 H-556.2 Exceptions
4 FAH-3 H-556.2-1 Immigration and/or Approved Visits to
the United States
(CT:FMP-99;
08-30-2018)
The principal officer at a post is authorized to approve
U.S. dollar payments by Treasury check to an LE employee
when the employee is immigrating to or visiting the United States and the
employee will be in the United States on the pay day. The check is forwarded
to the employee in the United States.
4 FAH-3 H-556.2-2 Prevailing Local Compensation Practice
(CT:FMP-99;
08-30-2018)
a. If the
prevailing local compensation practice allows payment in other than the local
currency, the post may request permission for salary payment in such currency.
Such requests may be made, provided the principal officer determines that:
(1) Such payment is permitted by local law;
(2) Payment will not encourage prohibited or illegal
currency conversion by employees; and
(3) Payment does not conflict with U.S. goals.
b. If so
determined, a request to pay in other than local currency should be made to the
bureaus executive director, explaining:
(1) Pertinent host country exchange controls;
(2) Pertinent local laws;
(3) Rates of exchange;
(4) Details of determination of prevailing practice;
and
(5) Department of Defense (DOD) payment practices, if
any, in such country.
c. The request
must be reviewed by HR, CGFS, and the
regional bureau. CGFS must determine if
processing such payments is administratively feasible. The regional bureaus
executive director is responsible for coordinating the review. If payment in
other than local currency is approved, each subsequent salary change survey
should review continuing conditions and need. The post must promptly inform the bureau executive
director whenever conditions justifying such exception cease to exist.
4 FAH-3
H-556.2-3 Other
Exceptions
(TL:FMP-4;
06-15-1995)
If a unique temporary personal situation creates such
hardship as to justify payment in other than local currency for a specific
individual on a humanitarian basis, a request for an exception may be made to
the bureaus executive director. Exception may not be granted for more than 6
months.
4 FAH-3 H-556.3 Payroll Deduction for Civil Service
Retirement
(CT:FMP-99;
08-30-2018)
When an LE employee
participates in the Civil Service Retirement System (CSRS), a deduction is made
from salary as described in 4 FAH-3
H-542.2. The U.S. dollar equivalent of the employee deduction and the
government contribution are computed and reported to OPM biweekly and credited
to OPMs trust account, Civil Service Retirement and Disability Fund, symbol
24X8135.8 on the monthly Form SF-1221.
4 FAH-3 H-556.4 Purchase of Retirement Credits
(CT:FMP-99;
08-30-2018)
a. The post may
authorize an allotment of pay by Treasury dollar check (payable to OPM) when
OPM has authorized an LE employee to make
a deposit or redeposit for past creditable service. The employee authorization
is accomplished through Form DS-1992.
b. The post
personnel office must ensure that a Form SF-2803, Application to Make Deposit
or Redeposit (CSRS), for each employee making a deposit has been prepared to
accompany the check to OPM.
c. Voluntary
contributions may be made by the employee to the Civil Service Retirement Fund
to purchase additional annuity. Making such contributions is a matter between
the individual employee and OPM, for which neither the Department, nor post,
nor CGFS has responsibility. Necessary conversions of foreign currencies to
dollars required for such contributions must be accomplished by the individual
employee. Neither payroll deductions nor payments in dollar checks are
authorized to facilitate purchase of additional retirement credit through
voluntary contributions.
4 FAH-3 H-556.5 Currency Exchange Rates
4 FAH-3 H-556.5-1 Salaries and Allowances Fixed in U.S.
Dollars
(CT:FMP-32;
08-15-2005)
Salaries and allowances fixed in U.S. dollars, which are
paid in equivalent local currency, are paid at the current rate of exchange at
the time of payroll calculations. Exception to this may occur under unusual
circumstances.
4 FAH-3 H-556.5-2 Salaries Fixed in Foreign Currency
(TL:FMP-4;
06-15-1995)
Where salaries and allowances are fixed in local currency
and paid in local currency, U.S. dollar equivalent entries are computed for
salaries and allowances as well as any civil service retirement, U.S. social
security and federal income tax withholdings and contributions by using the
current rate of exchange at the time of payroll calculations.
4 FAH-3 H-557 EXTERNAL
REPORTING
(TL:FMP-4;
06-15-1995)
The servicing payroll office submits various reports related
to payroll payments to the appropriate agency or office.
4 FAH-3 H-557.1 Consolidated American Payroll
Processing System (CAPPS)
(CT:FMP-32;
08-15-2005)
CAPPS prepares the following external reports.
(1) Payroll Advice of Charge, Form FS-478, Net
Disbursements and Collected Reimbursements, and Form SF-1081, Voucher and
Schedule of Withdrawals and Credits (to serviced agencies biweekly).
(2) Form 941, Employers Quarterly Federal Tax Return
showing compensation, federal income tax withheld, and social security taxes
(to the Internal Revenue Service (IRS) quarterly).
(3) Form W-2, Wage and Tax Statement on taxable
compensation and U.S. income taxes and social security taxes withheld (to the Social
Security Administration (SSA) and pertinent states annually).
(4) Form 1099-INT, Statement for Recipients of
Interest Income on interest paid of $600 or more in the calendar year (to IRS
annually).
(5) Forms SF-2812 and SF-2812-A, Journal Voucher and
Report of Withholdings and Contributions for Health Benefits, Group Life
Insurance and Civil Service Retirement (by agency to OPM biweekly).
(6) Form DS-1834, Journal Voucher and Report of
Withholdings and Contributions for Foreign Service Retirement Systems (to the
Foreign Affairs Retirement and Disability System biweekly).
(7) Annual Reconciliation of Payroll Deductions
transmits retirement withholdings and contributions summary (to parent agencies
annually).
(8) Form SF-2806, Individual Retirement Record data
for Department of State employees (to Retirement Accounts Division biweekly).
(9) Form SF-224, Statement of Transactions on
disbursements and collections (to the General Ledger and Treasury monthly).
CAPPS reports to Treasury both the customer agency and the billing agency sides
of any Form SF-1081 it issues.
4 FAH-3 H-557.2 Locally Employed
Staff Payroll
System
(CT:FMP-99;
08-30-2018)
The payroll system is integrated with the Regional Financial
Management System (RFMS). CGFS prepares the following external reports.
(1) Obligation and liquidation reports FMC-60 and
FMC-62 (to agencies receiving allotment accounting services) and a biweekly
Payroll Expenditure report and a Payroll Advice of Charge report (to other
agencies).
(2) Form SF-1221, Statement of Transactions
reflecting payments and collections by the USDO (to Treasury monthly).
(3) Form 941, Employers Quarterly Federal Tax Return
showing compensation, federal income tax withheld and U.S. social security
taxes paid (to the Internal Revenue Service (IRS) quarterly on LE staff/PRAs and
AMCITs).
(4) Form W-2, Wage and Tax Statement on taxable
compensation and federal income taxes and U.S. social security taxes withheld
(to Social Security Administration (SSA) on LE staff/PRAs and
AMCITs annually).
(5) Forms SF-2812 and SF-2812-A, Journal Voucher and
Report of Withholdings and Contributions for Health Benefits, Group Life
Insurance and Civil Service Retirement (for CSR to OPM biweekly).
(6) Local Employees Pay card for LE staff participating
in the Civil Service Retirement System (CSRS) (to headquarters of parent agency
at least annually).
(7) Annual Reconciliation of Payroll Deductions
transmits retirement withholdings and contributions summary for LE staff in the
CSRS (to parent agencies).
(8) Biweekly list on employee deductions and employer
contributions for host country social insurance or private insurance plans (to
post). Post is responsible for external reporting and payment for local social
security program when it functions on other than a biweekly schedule.
(9) Host government income taxes normally are not
computed or withheld, however a report of payments made to an employee for the
year may be applicable at particular posts.
4 FAH-3 H-558 AND H-559
UNASSIGNED