Biweekly Payroll Accruals - Fiscal Year End

Line of text here briefly describing context lorem ipsum dolor sit amet, consectetur.

Biweekly Payroll Accruals - Fiscal Year End

2021 Biweekly Payroll Accrual

The biweekly payroll accrual is recorded in the General Ledger and appears on the Statement of Activity (SOA).  In June, the salary shortcodes are debited and the entry is reversed on the July SOA.  The SOA entries contain the following field values:

                       Type of Expense           GL Account Value          SOA Description

                               Salary                               584300               Accrued Bi-weekly Payroll                                          Benefits                             598100                 Accrued Bi-weekly Frin

The biweekly payroll accrual amount represents the number of workdays in June that are paid in July - in other words, the salary and benefit amounts that were earned in one fiscal year but paid in the next fiscal.

The biweekly payroll accrual is estimated using the salary payments made in the last biweekly payroll of the fiscal year.  The benefit amounts are estimated using a percentage of the salary payments.

For 2021, there will be 13 June workdays that will be paid in July.  Ten of the workdays will be paid on the 7/02/21 biweekly paydate (pay period June 13-June 26).  Three of the workdays will be paid on the 7/16/21 biweekly paydate (pay period June 27-July 10).  The biweekly payroll accrual amount will be 130% of the last biweekly payroll in June.

Biweekly payroll accrual amounts are not charged to federal and non-federal sponsored projects due to sponsor regulations; instead, the accrual amounts are charged to fund 30000.

An example:

  • John Doe is paid $1,000 gross pay during the last biweekly payroll of the fiscal year.
  • Salary Accrual = $1,000 * 130% = $1,300.  Recorded using GL account 584300 with SOA description “Accrued Bi-Weekly Payroll”.
  • Benefit Accrual = $1,300 * 16.85% = $219.05.  Recorded using GL account 598100 with SOA description “Accrued Bi-Weekly Payroll Frin”.

Questions about biweekly payroll accruals can be directed to your Financial Operations Coordinator or the Payroll Manager and Payroll Sr. Supervisor in the University Payroll Office Pay/Timekeeping Section.