INDIANAPOLIS PAYROLL OFFICE 2016 Mixed & Reduced Debts INDIANAPOLIS PAYROLL OFFICE 2016 Integrity - Service - Innovation

Integrity - Service - Innovation Topics Background Prior Year Current Year Mixed Debt Reduced Debt Overview Questions 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Background Debts are the result of changes by either the employee’s servicing Human Resource Office or Timekeeper A correction made for an overpayment that occurred within the same calendar (tax) year is considered a current year debt A correction made for an overpayment that occurred in a prior year is considered a prior year debt 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Background Defense Civilian Payroll System (DCPS) logic currently cannot identify and process two types of debts These Debts are identified as either ‘Mixed’ or ‘Reduced’ and require manual adjustments by the Payroll Office (PRO) Manual adjustments ensure that the Debt Module accurately reflects the correct amount of offset and correct principle remaining balance Manual adjustments certify that the employee receives an accurate Wage and Tax Statement (W-2) 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Prior Year Debt Prior Year Debt Overpayment occurred within the prior calendar (tax) year for monies paid within the prior calendar (tax) year DCPS recovers the following monies and applies them as an offset (payment) towards the debt Employee Thrift Savings Plan (TSP) contributions Federal Employee Group Life Insurance (FEGLI) deductions Adjustments are not allowed for Federal/State/Local taxes Does not affect current year taxable income If applicable, tax certificates are provided for payments made within the current calendar year for monies paid and indebted within the same prior (tax) year 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Current Year Debt Current Year Debt Overpayment occurred within the current calendar (tax) year for monies paid within the current calendar (tax) year DCPS recovers the following recoverable monies and applies them as an offset (payment) towards the debt Federal/State/Local tax withholdings Medicare withholdings Old Age Survivors and Disability Insurance (OASDI) withholdings Employee Thrift Savings Plan (TSP) contributions Federal Employee Group Life Insurance (FEGLI) deductions Retirement contributions The principle remaining balance is considered taxable income at the end of the current tax year Federal, State & Local Taxes 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Mixed Debt What is a Mixed Debt? The overpayment includes multiple pay periods crossing calendar years DCPS creates a single debt for the full timeframe Manual adjustments are required by the PRO Properly reflect the correct amount of offset with the correct debt Taxable income is accurately reflected Debt is split based on the following criteria Prior Year Current Year PY/CY indicator in Debt Module will reflect an “M” 7/19/2019 Integrity - Service - Innovation

Mixed Debt – Debt Module Debt Seq#06 DCPS created PPE 3/8/14 shows overpayment crossed calendar years FOR PPE February 25, 2012 through PPE February 22, 2014. This debt was invalidated (Stop IDC ‘I’) and then split accordingly. 7/19/2019 Integrity - Service - Innovation

Mixed Debt – Debt Module Debt Seq#07 manually created PPE 5/17/14 shows overpayments in calendar year 2012 FOR PPE February 25, 2012 through December 15, 2012. Appropriate offset amount is given based on pay histories. 7/19/2019 Integrity - Service - Innovation

Mixed Debt – Debt Module Debt Seq#08 manually created PPE 5/17/14 shows overpayments in calendar year 2013 FOR PPE December 28, 2012 through December 14, 2013. Appropriate offset amount is given based on pay histories. 7/19/2019 Integrity - Service - Innovation

Mixed Debt – Debt Module Debt Seq#09 manually created PPE 5/17/14 shows overpayments in calendar year 2014 FOR PPE 12/28/13 through February 22, 2014. Appropriate offset amount is given based on pay histories. 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Reduced Debt What is a Reduced Debt? Overpayment is received within the current calendar year for a prior year pay period. DCPS cannot identify when the original monies associated with the debt were originally paid and reports the issue for PRO review The PRO is required to identify when the original monies associated with the debt were paid in order to give the proper offset PY/CY indicator within the debt module will reflect an “R” Research is required to determine if the debt should be prior year or current year 7/19/2019 Integrity - Service - Innovation

Reduced Debt – Debt Module Debt Seq#01 DCPS created PPE June 2, 2012 shows overpayment for monies paid FOR pay period ending December 17, 2011. DCPS did not give an offset. 7/19/2019 Integrity - Service - Innovation

Reduced Debt – Pay History Pay History for pay period ending June 2, 2012 shows a debt created for Lump Sum Leave (PA) monies that were previously paid FOR pay period ending December 17, 2011. 7/19/2019 Integrity - Service - Innovation

Reduced Debt – Pay History PAYMENT DEBT PPE December 17, 2011 Pay History shows Lump Sum Leave (PA) FOR PPE 12/17/11 is scheduled to be paid ON PPE 2/25/12 Debt will create for the Lump Sum Leave payment ON pay period ending June 2, 2012 7/19/2019 Integrity - Service - Innovation

Reduced Debt – Pay History Pay History for PPE February 25, 2012 shows Lump Sum Leave (PA) FOR PPE 12/17/11 paid ON PPE 2/25/12. Debt is current year. Year to date corrections and Debt Module adjustments are required. 7/19/2019 Integrity - Service - Innovation

Reduced Debt – Debt Module Debt Seq#02 manually created PPE June 16, 2012 shows the correct offset of $799.17 based on the Pay History. 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Summary Adjustments are required by PRO on all M/R debts M/R debt notifications may have erroneous offset amounts Due to debt volume PRO cannot stop notifications Multiple HRO and/or Timekeeper changes processed in the same pay period result in the possibility of Mixed Debts Crosses calendar years Positive and negative changes in the same pay period Prior year monies erroneously paid in the current year results in the possibility of Reduced Debts Ensure dates are correct and actions are proper before interfaced to DCPS 7/19/2019 Integrity - Service - Innovation

Integrity - Service - Innovation Questions 7/19/2019 Integrity - Service - Innovation