Payroll: Employee Exchanges
UC Accounting Manual
VII. Payroll Operations
P-196-25.5 (7/1/80)
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PAYROLL: EMPLOYEE EXCHANGES
X has gained much from U.C., and yet always tries To
gather outside knowledge that make him/her more wise.
Y's employed outside, but in a college hopes to find
Information that would fructify the orchards of his/her
mind.
Employee Y takes X's place; and learns about the U.
Employee X stands in for Y, learns how outsiders do.
An interchange like that of X and Y is what sustains An
intellectual ferment from which everybody gains.
I. INTRODUCTION
This chapter provides accounting and payroll procedures for
the temporary assignment of University employees to outside
organizations and for the temporary retention of outside
organization employees.
With regard to University employees, The Regents approved
the following on February 20, 1970:
"(The President is authorized) . . . to enter into
agreements with outside organizations which allow
University employees to perform services for such
organizations for training and development purposes,
contingent upon the University's being fully reimbursed
by the organization for wages and all benefits paid
during the temporary assignment."
In a letter dated July 23, 1970, the President set forth
procedures for carrying out this authorization. For
agreements involving staff employees, he redelegated his
authority to Chancellors, Vice Presidents, and the
University Dean of University Extension; agreements
involving academic employees require the President's
approval.
The Regents' authorization of February 20 complemented
existing University procedures under which employees of
outside organizations are retained for limited periods of
time to work at the University; this authorization makes it
possible for departments to set up one-for-one exchanges of
employees with outside organizations if they wish.
II. PROCEDURES
A. OUTSIDE ASSIGNMENT OF UNIVERSITY EMPLOYEE
The following accounting and payroll procedures apply
after the President's administrative procedures have
been completed:
Responsibility Action
* 1) Employee's Complete a Personnel Action Form
Department showing the termination date of the
employee's outside assignment. In
the remarks box state that the
employee will revert to his/her
previous status when the special
assignment terminates.
* 2) Accounting Insert the employee exchange
Office clearing account number in the
Account Coding box. (See paragraph
D below.)
Send sundry debtor bill each month,
or as otherwise agreed upon, to the
outside organization for gross
salary plus staff benefits; credit
the clearing account. The
Distribution of Payroll Expense
listing for the clearing account
may be forwarded to support the
sundry debtor bill.
3) Accounting Record employee's absences as
Office or required. (See paragraph C below.)
Employee's
Department
4) Employee's If the employee becomes eligible
Department for a merit increase, contact the
outside organization if necessary
about employee's performance while
on assignment.
B. RETENTION OF OUTSIDE EMPLOYEE
The following procedures apply after arrangements have
been made to retain the outside employee at the
University.
Responsibility Action
1) Outside Send an invoice each month, or as
Organization otherwise agreed upon, to the
University department that has
retained the employee for his/her
gross salary, etc.
2) University Approve the invoice and forward it
Department to the accounting office for
payment. Departmental funds,
subbudget 3, object code 7200, will
be charged.
3) University Notify outside organization of
Department employee's absences as required
(see paragraph C below).
C. REPORTING OF ABSENCES
1. University Employee
Under the President's policy, University employees
are eligible for all their normal benefits, except
that they are granted paid holidays in accordance
with the outside organization's policy. Each
accounting office will be responsible for
establishing a campus procedure to insure that
employee's absences for vacation, sick leave, etc.
are recorded as required by University personnel
policy. One possible procedure is given below;
another possibility is to have the outside
organization keep all absence records and return
these records to the employee's department at the
end of the assignment.
Responsibility Action
1) Accounting When employee is first assigned,
Office advise outside organization of the
University's rules on absences and
request that records be kept.
2) Accounting When sending monthly sundry debtor
Office bill, ask outside organization for
a report of absences for the
current pay period.
3) Outside Complete absence report and send to
Organization accounting office.
4) Accounting Forward report to employee's
Office department.
5) Employee's Post absence report to employee's
Department records.
2. Employee of Outside Organization
The accounting office should verify that the
University department and the outside organization
have made arrangement for the reporting of
absences.
D. ACCOUNTING CODES
The clearing account (paragraph II-A, step 2 above)
against which to charge the salaries of University
employees on outside assignment is X-8895XO-66770-1 (or
0), where X is the campus location code.
III. REFERENCES
The Regents, Minutes authorizing the President to enter into
agreements with outside organizations allowing University
employees to perform services for such organizations for
training and development purposes, February 20, 1970.
President Hitch, Letter to Chancellors, Vice Presidents, and
the University Dean of University Extension setting forth
the procedures to carry out the above Regental policy, July
23, 1970.
_______________________________
Historical note: Original Accounting Manual chapter first
published 11/2/70. First revision 7/1/80; analyst--Cathy
Creighton.
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