8595     REVOLVING FUND ADVANCES
(Revised 10/88)

Normally, agencies will make office revolving fund payments to employees for salary earned only when (1) there have been errors or delays in submitting or processing documents making it impossible for the State Controller's Office to prepare and deliver proper salary warrants within a reasonable time, or (2) separating employees are in immediate need of their final salary payments.  However, agencies may, at their discretion, make payments of salaries earned where this is necessary to alleviate serious, unforeseeable hardship.  Agencies will prepare written criteria for advances including the procedures that must be followed before advances are given.  The specific reason for the advance must be written on the request.

Payroll advances shall be issued for amounts as close as possible to the actual net payments which will be made by the State Controller's Office less other amounts due to the agency for advances, maintenance, etc.  The salary advance can be based on the employee's prior period pay or by computing the amount due for the advance period.  Agencies shall pay the difference between the employee's full net pay and the salary advance upon receipt of the Controller's warrant for the full salary payment.  (See SAM Section 8160 concerning deposit of Controller's warrants.)

If the Controller's warrant is not received by the agency within 30 calendar days following the issuance of the revolving fund advance, the agency must report the amount of the advance, compute Federal withholding tax on the advance, and remit the withheld taxes to the State Controller's Office.  (See Controller's Payroll Procedures Manual.)

Separate payroll revolving funds will not be maintained by agencies since the volume of salary advances should not warrant them.  Regular office revolving funds will be used for advance payments occasionally required.