4.3.2.2.1

Payroll Revolving Accounts and Other Accounts

Effective Date:

July 1, 1995

	Agencies use various types of accounts to record payroll activities.
4.3.2.2.1.a	Treasury Payroll Revolving Accounts
	There are two treasury payroll revolving accounts: the State Payroll Revolving Account (035); and, the Agency Payroll Revolving Account (715). Agencies make all payments (payroll related) from these accounts by a single warrant, electronic funds transfer, or journal voucher whenever possible.
4.3.2.2.1.a(1)	State Payroll Revolving Account 035
	This is a clearing account used for payroll disbursements. Agencies using HRISD, with activity in treasury or treasury trust accounts, are to use Account 035. Use of this account is optional for other agencies.
4.3.2.2.1.a(2)	Agency Payroll Revolving Account 715
	This is the clearing account used for payroll disbursements for agencies using HRISD with payroll funded through local accounts.
4.3.2.2.1.a(3)	Procedures for transfers of money to Account 035 or deposits to Account 715
	Agencies authenticate payroll data in the HRISD system and certify payroll registersfor dollar amounts.
	HRISD provides journal vouchers and warrant registers indicating the accounts properly chargeable with the payroll expenditures/expenses. HRISD then certifies these amounts to the Office of the State Treasurer (OST).
	OST transfers money from agency treasury or treasury trust accounts to Account 035 for payroll disbursements chargeable to those accounts.
	Agencies deposit sufficient money with OST in Account 715 to provide for payroll disbursements chargeable to local accounts.
	All transfers or deposits are due at least one day beforethe scheduled payroll disbursements.
	If agencies fail to transfer or deposit money on time, they will be required to deposit money in advance of payroll preparation.
	OST transfers amounts for canceled warrants back to whichever account (035 or 715) made the disbursements. Agencies then complete the disposition of these amounts. The returned amounts are either reissued from Account 035 or 715 or ultimately transferred back to the accounts originally charged with the payroll expenditures/expenses. See Section 2.2.3.5.2 for procedures regarding warrants canceled by OST after being outstanding 180 days.
4.3.2.2.1.b	Other Accounts
	Use of the following accounts is optional.
4.3.2.2.1.b(1)	College Clearing Account 790
	Users of the Payroll Personnel Management System maintained by CTC use Account 790 for payroll disbursements.
4.3.2.2.1.b(2)	Other Agencies with Unique Payroll Systems
	Agencies with their own payroll systems may utilize other accounts as either allowed by law or with OFM approval.
4.3.2.2.1.c	Reconciliations
	Agencies’ records are to accurately show all payroll transactions (and cash or fund balances), regardless of the account(s) used. Refer to Section 2.2.3.3.1 for accounting entries and reconciliation requirements.

4.3.2.2.2

Required Payroll Records and Reports

Effective Date:

July 1, 1995

The following list shows the records required for payroll accounting. (Equivalent records by another name are acceptable alternatives.) IRS also has records and retention requirements. Refer to their Publications 15 (Circular E) and 937 (Employment Taxes) for the appropriate tax year on record keeping requirements.

NAME OR TYPE OF RECORD	PURPOSE OF RECORD	CONTENTS OF RECORD
PAYROLL REGISTER	A record produced each pay period showing all employees paid.	Warrant or ACH (automated clearing house) number Employee Names Detail of Earnings Deductions/Allowances/Reimbursements Net Pay
WARRANT REGISTER	A listing of employees and other payroll costs paid by warrant.	Warrant number Employee names Vendor names Net pay or vendor amount Account Charged
DIRECT DEPOSIT RECORD (ACH REGISTER)	A listing of employees and other payroll costs paid by direct deposit.	ACH number/banking institution Employee names Vendor names Net pay or vendor amount Account Charged
REGISTERS INDICATING EMPLOYEE DEDUCTIONS AND EMPLOYER’S SHARE OF TAXES, INSURANCE, AND RETIREMENT	Detailed records produced for each pay period for each employee deduction and state share cost.	Federal Income tax (FIT) OASI, Medicare, and Industrial Insurance Retirement Garnishments and other legally required deductions Other Deductions Employer portion of taxes, insurance, and retirement
CALENDAR YEAR-TO-DATE WAGE AND EMPLOYMENT TAX RECORDS TO SUPPORT FEDERAL REPORTING	Detailed record produced for each calendar year which includes: Current month, quarterly, and cumulative year-to-date data for filing quarterly Form 941/941c and annual W-2/W-2c Forms.	Gross pay and reductions to gross pay Gross pay subject to Federal Income Tax (FIT), OASI, and Medicare Employee FIT, OASI, and Medicare taxes withheld Employer OASI and Medicare taxes Taxable Fringe Benefits
RETIREMENT WORKLISTS AND OTHER TRANSMITTAL ADVICES	Listings and advices to report detailed information on eligible employees to retirement systems.	Employees eligible for each retirement plan Employee retirement deductions Employer contributions Other service credit detail
DISTRIBUTION OF PAYROLL AND RELATED COSTS	A listing of each employee by funding source(s).	Payroll and related costs distributed to one or more funding sources
DEDUCTION AUTHORIZATIONS	Employee signed documents authorizing deductions or reductions from gross pay.	W-4 showing the number of an employee’s deductions for FIT All other voluntary deductions requiring the employee’s signature
SHARED, SICK, AND ANNUAL LEAVE RECORDS	A record of employee leave earned, taken, and balances.	By employee By leave type Cumulative leave balance data

4.3.2.2.3

Payroll Certification

Effective Date:

July 1, 1995

4.3.2.2.3.a	Certification Requirements
	RCW 28B.16.190, RCW 41.06.270, and WAC 251-08-160 specify two conditions an agency must meet before paying an employee. The agency head (or authorized designee) must certify that the payroll meets these conditions using the following language:
	"I hereby certify that to the best of my knowledge amounts listed in this payroll are true and correct charges and that employees holding a position covered by Chapter 41.06 RCW, WAC 251, or other applicable employment contract, have been employed in accordance with the rules, regulations, and orders issued thereunder."
	BY__________________________________________________________________________

(NAME)

(TITLE)

(DATE)

4.3.2.2.3.b

Agency Required Records to Support Payroll Certification

4.3.2.2.3.b(1)

Agency records include the certification signed by the agency head (or authorized designee):

• Directly on the payroll register, or

• On a separate document if the payroll register is on microfiche.

4.3.2.2.3.b(2)

A copy of all documents that reflect personnel actions for:

• Appointment, transfer, promotion, demotion, and salary changes.

• Any other temporary or permanent changes in employee status.