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Unpaid Leaves: Fringe Benefit Posting Adjustments and New Interim Procedure - 12/11/08

To ensure fringe benefits are charged to appropriate accounts, a leave of absence request is required any time an employee takes an unpaid leave. Recently, however, Human Resource Services has discovered that fringe benefits for employees on unpaid leaves of absence have been incorrectly posted.

HRS is taking quick action to fix these charges and ensure the correct posting of fringe benefits for new unpaid leaves. Staff that process unpaid leaves will need to become familiar with those actions, which follow:

Interim Procedures Charging of Fringe Benefits for Unpaid Leave of Absence
     -- Interim Procedures -- Charging of Fringe Benefits for Unpaid Leave of Absence for the correct posting of fringe benefit charges associated with unpaid leaves have been developed and posted on the Business @ Purdue Web site, where the interim process is accessible by clicking first the People category and then the Leave of Absence and Disability subcategory. Please follow these procedures for processing any new unpaid leave requests.

     --The Request and Leave Action (RLA) Form and the Leave Action Form have been revised to provide space for specifying a departmental account(s) to have fringe charges recharged back to the department via journal voucher (JV) on a quarterly basis by Staff Benefits.

FY 07/08 Fringe Benefit Corrections
     -- Unallowable charges to Sponsored Program Services (SPS) accounts have been identified and will be corrected centrally so that all charges, regardless of the type of unpaid leave that was taken, will be charged to a central pool account.

     -- A spreadsheet will be distributed to departments today, Dec. 11, identifying affected individuals by ORG Unit. Look in IT0027 on each person to identify the accounts affected by these adjustments or use T-Code: ZHR_COST_DISTRIB.
 
     -- Account distribution changes in IT0027 will be made on or before Dec. 16 for individuals on SPS accounts to correct these charges. DEPARTMENTS SHOULD NOT ADJUST THESE ENTRIES IN IT0027.

     -- Posting adjustments will create credits to SPS accounts (active or inactive) equal to the amount of the fringe benefit charges. Any questions pertaining to the impact of these credits should be directed to the appropriate SPS account administrator.

Summer 2008 FY GRAD Leaves
All fringe benefit charges associated with fiscal year graduate (FY) students on leave during summer 2008 will be covered centrally for this year. Procedures and guidance for summer 2009 are being developed and will be distributed when they are finalized.

FY 08/09 Fringe Benefit Corrections
     -- A spreadsheet showing employees who have already taken or are currently on unpaid leave in the present FY will be distributed to departments today, Dec. 11. It will validate the type of unpaid leave each employee has taken or is taking.
 
     -- The spreadsheet will provide a place to specify the departmental account(s) to correctly post these charges for unpaid leaves that are for Research/Travel, Personal, or Fiscal Year Appointments less than 12 months (SPS accounts funded portion only).

     -- Department should review the spreadsheet, provide necessary departmental account(s) and return to Staff Benefits in Freehafer to the attention of Becky Gutwein by Dec. 31.

     -- Adjusting entries will be made centrally in IT0027 to charge fringe benefits either to a central account or to a holding account for recharge back to the department. IT0027 adjustments will be made on or before Jan. 21, 2009.  DEPARTMENTS SHOULD NOT ADJUST THESE ENTRIES IN IT0027.

     --A JV will be prepared in January by Staff Benefits to correctly recharge fringe benefits from the holding account to departmental account(s) from July 1 to Dec. 31.

Any questions pertaining to these instructions should be directed to: Cindy Stephens, SSC (Processing of RLA/Leave Action Form), cls@purdue.edu or 494-6832; or Becky Gutwein, Staff Benefits (Processing of JV to recharge DEPT ACCTS), gutweinb@purdue.edu or 496-1967.


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