This is a departmental reference guide for OneUSG Connect payroll encumbrance calculations. Last updated: 6/6/2023
Vacant positions are not encumbered. If the employee seated in the position has a Job Data status of leave of absence the position will not encumber. If the employee seated in the position has a Job Data status of leave with pay the position will encumber. Filled positions, in the following paygroups, are encumbered.
Paygroup | Paygroup Description | Pay Frequency |
|---|---|---|
18A | Salaried | Monthly |
18E | 18E Exception Hourly | Biweekly |
18F | Academic Year Faculty | Monthly (months paid based on AYP contract begin/end dates) |
18G | Graduate Assistants | Monthly |
18H | Staff – Hourly | Biweekly |
18J | 10 Month Non-Exempt | Biweekly |
18L | Temporary Salaried | Monthly |
18P | Part Time Faculty | Monthly |
18S | Summer Faculty | Monthly |
18X | 10 Month Non Faculty Exempt | Monthly |
18Y | 12 Month Faculty | Monthly |
The OneUSG Connect encumbrance calculation is made up of two different processes. The first process runs to zero out all existing personal service encumbrances. After the first process is complete, the next process is the new encumbrance calculation. OneUSG Connect runs the encumbrance calculation for UGA every Tuesday and Thursday.
The encumbrance calculation is based on job data, position data, and position funding as of the pay period BEGIN date. There is no proration for mid-pay period changes in job data, position data or position funding except in the following situations:
In the situations outlined above where there is an encumbrance proration, the proration is based on working days – Monday through Friday.
Amounts paid to an employee via additional pay in OneUSG Connect will not be encumbered. For example, summer school is paid via additional pay. Amounts paid via additional pay are not included on an employee’s job data record.
For employees with supplements, in order for the supplement to encumber:
The encumbrance for fringe benefits are based on standard rates (FICA and FICA Med) and configuration tables (Retirement, Health and Life).
The encumbrance is based on job data, position data status, and position funding (department budget table) as of the beginning of the pay period.
Aside from the three exceptions noted above there is no proration for mid pay period changes in job data, position data, or position funding.
Biweekly Paid Employees
Salary Encumbrance = Hourly Rate x Standard Hours x Remaining Pay Periods in FY (plus June 30th proration if necessary)
The hourly rate and standard hours are from the employees’ job data record and the encumbrance amount will be based on these values as of the beginning of the pay period.
The encumbrance amount is distributed based on how the position is funded as of the beginning of the pay period.
Monthly Paid Employees Not In The 18F Paygroup
Salary Encumbrance = Monthly Rate x Remaining Pay Periods in FY
The monthly rate is from the employees Job Data record and the encumbrance amount will be based on this value as of the beginning of the pay period.
The encumbrance amount is distributed based on how the position is funded as of the beginning of the pay period.
Monthly Paid Employees In The 18F Paygroup
Salary Encumbrance = Monthly Contract Amount x Remaining Months on the Contract
Employees in the 18F paygroup are on Academic Year Pay (AYP). The pay frequency will be C10 which stands for a 10 month contract. (The monthly amount will be the contract amount divided by 10 months.)
Health and Life Encumbrance
As mentioned above, health will be based on the health plan in which the employee is enrolled. The encumbrance calculation uses record HEALTH_BENEFIT. However, the payroll process (that determines the health plan amount to deduct for payroll) uses record GENL_DEDUCTION (which is the authoritative source). These two records can get out of sync with one another. If the HEALTH_BENEFIT record, for an employee, is out of sync with the GENL_DEDUCTION record it can cause the encumbrance amount for health to be incorrect. UGA Human Resources Benefits Accounting will have to make the update to correct the HEALTH_BENEFIT record – commitment accounting does not have the ability to make that correction.
The health encumbrance looks at how the employee’s position is funded BUT is split based on the distribution of all earnings rows, including MCOP (multiple components of pay) or AYP (academic year pay) earnings codes. Life follows health. See the section below with health encumbrance examples.
The MSS System Manager Reporting work center contains the encumbrance query. The query is in the Actual and Encumbr Query Group under Commitment Accounting (see below). This query is 180_CA_BUD_ACTUALS_SUM_POS_V2. This query provides a summary of encumbrance by employee for the fiscal year.
Example 1
Monthly paid employee.
Position funded as follows:
Encumbrance for the entire month of October will be under combo code A. The encumbrance for the month of October will not be prorated.
Example 2
Monthly paid employee.
Short Work Break row, effective 5/15/2021, added to Job Data record of employee.
Salary and benefits for the employee will be prorated for the month of May. The proration will be 47.619% of the monthly compensation amount. (10 working days/21 total working days in May 2021 = 47.619%) There will be no amount encumbered for June.
Example 3
Monthly paid employee.
Short Work Break row, effective 6/1/2021, added to Job Data record of employee.
Salary and benefits for the employee will not be encumbered for the month of June.
Example 4
Hourly paid employee.
Position funded as follows:
The first biweekly pay period for January 2020 begins on 12/27/20 and ends 1/9/21. The encumbrance for the entire pay period will be under combo code A. The encumbrance will not be prorated for this pay period.
Example 5
Monthly paid employee.
Termination row, effective 9/16/2020, added to Job Data record of employee.
The entire month of September will be encumbered for the employee. The encumbrance for the month of September will not be prorated. There will be no encumbrance for the months of October through June.
Example 6
Monthly paid employee.
Termination row, effective 10/1/2020, added to Job Data record of employee.
There will be no encumbrance for the months of October through June.
Example 7
Monthly paid employee.
Employee is paid on a grant that ends in the middle of the month. Position funded as follows:
The encumbrance calculation will prorate the encumbrance amount for October on combo code A. The proration will be 50% of the monthly compensation amount. (11 working days in October/22 total working days in October = 50%) The position will not be encumbered for the remainder of the month of October. (It will not recognize the mid-pay period funding change on 10/15/2020). The position will be encumbered November through June on combo code B.
Example 8
Monthly paid employee.
Position funded as follows:
The encumbrance calculation will encumber on combo code A through December and will encumber on combo code B January through June.
Example 9
Monthly paid employee
Job Data has the following:
Position funded as follows:
The encumbrance calculation will encumber the month of April 2021 63.636363% on combo code A because that is the funding in place at the pay period begin date and it has a funding end date of 4/20/21. (14 working days/22 total working days in April = 63.636363%). The remainder of the month of April will not be encumbered. The position will not be encumbered for the month of May 2021 because the employee is on short work break. The position will not be encumbered for the month of June because the position is not funded after 4/30/2021.
Example 10
Monthly paid employee in an 18F position with an AYP (academic year pay) contract. The academic year pay contract begins 8/1/2021 and end 5/31/2022.
Job Data has the following:
Position funded as follows:
The encumbrance calculation will encumber the contract amount under combo code A and the AFA supplement amount under combo code B for the remaining months on the contract.
In this example if the AFA earnings code was NOT funded for the position, the AFA supplement amount would NOT be encumbered.
Example 1
Monthly Paid Employee
Employee is enrolled in the Blue Choice HMO plan with family coverage. The employer cost for this plan and coverage level is $1,339.88 per month.
The employee’s position is funded effective 07/01/2021:
75% on combo code A
25% on combo code B
The encumbrance amount for health insurance will be split with 75% of the encumbrance on combo code A ($1,004.91) and 25% of the encumbrance on combo code B ($334.97) for each month. Life would be encumbered in this same manner.
Example 2
Monthly Paid Employee
Employee is enrolled in the Blue Choice HMO plan with family coverage. The employer cost for this plan and coverage level is $1,339.88 per month.
The employee’s position is funded effective 07/01/2021:
75% on combo code A which has a funding end date of 08/31/2021
25% on combo code B
The encumbrance amount for health insurance would be split 75%/25% between combo codes A and B for the months of July 2021 and August 2021 BUT would be encumbered 100% on combo code B for the months of September through June. This is because the earnings after 08/31/2021 are funded only on combo code B for the months of September 2021 through June 2022. So 100% of the $1,339.88 monthly amount would be encumbered for the months of September through June on combo code B. Life would be encumbered in this same manner.
