1. INDIANAPOLIS PAYROLL OFFICE 2016
Mixed & Reduced Debts
INDIANAPOLIS PAYROLL OFFICE
2016
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2. Integrity - Service - Innovation
Topics
Background
Prior Year
Current Year
Mixed Debt
Reduced Debt
Overview
Questions
7/19/2019
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3. 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
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4. 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
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5. 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
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6. 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
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7. 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
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8. 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

9. 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

10. 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

11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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16. 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
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17. Reduced Debt – Debt Module
Debt Seq#02 manually created PPE June 16, 2012 shows
the correct offset of $ based on the Pay History.
7/19/2019
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18. 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
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19. Integrity - Service - Innovation
Questions
7/19/2019
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