8590 PAYROLL EXPENDITURE ACCOUNTING
(Revised 10/99)
See SAM Section 8300 for allotment and encumbrance procedures and maintenance of the Allotment-Expenditure Ledger.
Under the uniform state payroll system, the State Controller's Office will prepare agency payrolls and draw salary warrants on the State Payroll Revolving Fund in payment thereof. The State Controller's Office will transfer from the agency's appropriation and/or fund the gross amount of each payroll prepared including the State's contributions for employees' retirement, OASDI, health benefits, and dental care benefits, and will return by transfer to the agency's appropriation and/or fund any amounts accumulated in the State Payroll Revolving Fund as a result of warrants voided or redeposited or overpayments recovered.
The State Controller's Office will report payroll transfers to agency offices by Notice of State Payroll Revolving Fund Transfer, Form CA–62, which will be recorded by the agencies using a Payroll Expenditure Register. (Refer to SAM Section 10504.)
Form CA–62 will reflect clearance codes indicating whether transfers are to or from the State Payroll Revolving Fund as follows:
Transfers from the State Payroll Revolving Fund that increase expenditures (entered as plus entries if a manual Payroll Expenditure Register is needed).
Clearance Code Type l: Registers of warrants issued
Clearance Code Type 7: Registers of payroll adjustments
Clearance Code Type 9: No register—these are corrections of previous transfers as noted thereon
Transfers from the State Payroll Revolving Fund that decrease expenditures (entered as minus entries if a manual Payroll Expenditure Register is maintained).
Clearance Code Type 4: Register of warrants redeposited
Clearance Code Type 5: No register—these are transfers of amounts collected on overpayments detailed previously on registers of accounts receivable
Clearance Code Type 6: Registers of payroll adjustments
Clearance Code Type 8: No register—these are corrections of previous transfers as noted thereon
Payroll transfers will be distributed to the applicable expenditure accounts and, if applicable, entered in the Payroll Expenditure Register where used in a manual system. The month during which the expenditures were incurred will generally be indicated by the date on the Controller's Transfer. An exception to this procedure occurs when the month indicated by the transfer date is different from the month the expenses or most of the expenses were incurred. Then post the payroll transfer to the matching month. If the payroll period and the transfer date are in different fiscal years, the transfer date takes precedent. Note: In automated systems i.e. CALSTARS, the Payroll Expenditures Register is automatically produced as a by-product of the labor distribution system and these entries are not applicable.
