Payroll XV VA Financial Policy Volume XVChapter06

User Manual: XV

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Department of Veterans Affairs July 2014
Payroll: Payments Volume XVChapter 6
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VA Financial Policies and Procedures
Payroll: Payments
CHAPTER 6
0601 OVERVIEW ........................................................................................................... 3
0602 POLICIES ............................................................................................................. 3
0603 AUTHORITY AND REFERENCES ....................................................................... 9
0604 ROLES AND RESPONSIBILITIES ..................................................................... 11
0605 PROCEDURES ................................................................................................... 13
0606 DEFINITIONS ...................................................................................................... 16
0607 RESCISSIONS .................................................................................................... 20
0608 QUESTIONS ....................................................................................................... 20
0609 REVISIONS ......................................................................................................... 20
APPENDIX A: SYSTEMS INFORMATION AND ON-LINE RESOURCES .................. 21
APPENDIX B: PAY CALCULATION INFORMATION ................................................. 22
APPENDIX C: TIMECARD ADJUSTMENTS .............................................................. 34
Figure 6C-1: 8B Record Content Information .................................................................................... 35
APPENDIX D: SPECIAL CIRCUMSTANCE PROCESSING REQUIREMENTS ......... 39
APPENDIX E: PART-TIME PHYSICIAN ADJUSTABLE WORK SCHEDULE
RECONCILIATION ....................................................................................................... 40
APPENDIX F: PREMIUM PAY .................................................................................... 41
Figure 6F-2: Premium Pay Codes ..................................................................................................... 43
Figure 6F-3: ETA Time Remarks Codes (Revised) .......................................................................... 45
Figure 6F-4: ETA Special Tour Indicators (Revised) ........................................................................ 47
Figure 6F-5: Title 38 Indicator Excel Worksheet ............................................................................... 49
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APPENDIX G: DEBT MANAGEMENT OVERVIEW. ................................................... 50
APPENDIX G-1: INFORMATION REQUIRED TO COMPLETE A DD FORM 2481 ..............58
APPENDIX G-2 INSTRUCTIONS FOR COMPLETING A DD FORM 2481 FOR OFFSET OF
TRAVEL CARD DEBT. .........................................................................................................60
APPENDIX G-3 NOTICE OF INDEBTEDNESS (NOI), NOTCE OF RIGHTS AND
OBLIGATIONS ......................................................................................................................63
APPENDIX H: MILITARY RESERVISTS’ DIFFERENTIAL PAY................................. 64
APPENDIX H-1: HOW TO READ A MILITARY LEAVE AND EARNING STATEMENT (LES)
..............................................................................................................................................82
APPENDIX H-2: HOW TO DETERMINE CIVILIAN BASIC PAY AND MILITARY PAY AND
ALLOWANCES FOR RESERVIST DIFFERENTIAL PAYMENT PROCESSING ...................87
APPENDIX H-3: EXCEL WORKBOOKS AND EXAMPLES FOR RESERVIST
DIFFERENTIAL CALCULATIONS ........................................................................................91
APPENDIX I: CONTINUATION OF PAY (COP) QUARTERLY REPORT ................... 97
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0601 OVERVIEW
This chapter establishes the Department of Veterans Affairs (VA) financial policies and
procedures regarding payroll payments. VA will pay its employees, including separated
employees, the correct amount of salary and/or wages, premium pay, allowances, and
differentials to which they are entitled by Federal laws, regulations, and VA policy. VA’s
payroll operations are governed in various respects by regulations issued by the Office
of Personnel Management (OPM), Federal and other taxing authorities, the Department
of the Treasury (Treasury), the Department of State, the Office of Management and
Budget (OMB), and the Department of Labor, and by decisions issued by the United
States Comptroller General.
VA’s payroll provider will disburse employee payroll, make payments to other Federal
agencies for wage-related expenses, generate data for the annual Internal Revenue
Service (IRS) Form W-2, Wage and Tax Statement, charge all appropriations and cost
centers, and report all payroll-related financial information to proper authorities on
behalf of VA. Wage payments will be processed through the payroll provider’s payroll
system.
VA’s local human resources (HR) and payroll staff will enter employee data into VA’s
automated HR system identifying pay entitlement. Both VA and its payroll provider are
responsible for maintaining system requirements in compliance with all applicable laws
and regulations.
0602 POLICIES
060201 PAYMENT AUTHORITY.
A. VA’s payroll provider will make all payroll payments to current and separated
employees and outside entities (e.g., OPM, taxing authorities), as authorized, in
accordance with applicable Federal laws, regulations, and VA policy. HR maintenance
of master employee records in VA’s payroll provider’s payroll system, together with
certification of time and attendance records by designated supervisors, provide authority
for regular payroll disbursements.
B. Payments are not made when doubt exists as to their legality.
060201.01 Title 5 Authority.
VA will adhere to Title 5 of the United States Code (U.S.C.), Code of Federal
Regulations (C.F.R.), and OPM guidance for General Schedule and Federal Wage
System employees when paying employees.
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060201.02 Title 38 Authority.
VA will adhere to Title 38 of the U.S.C. and the applicable C.F.R. when paying its hourly
and daily rate employees in health care occupations.
060201.03 Electronic Payments.
A. VA’s payroll provider will make all payroll-related disbursements (e.g., salaries,
taxes, retirement contributions) using direct deposit/electronic funds transfer (DD/EFT)
to the maximum extent possible, in accordance with 31 C.F.R. Section 208.3. For more
information on DD/EFT requirements, refer to Volume VIII, Chapter 2, Electronic Funds
Transfer Requirement.
B. VA has established the first Friday following the end of each pay period as the
settlement date and pay date for DD/EFT for all regular salary payments. The official
VA payday and the settlement date are generally the same; however, in the event the
settlement date falls on a designated national holiday, the settlement date will move to
the preceding Thursday.
060202 REGULAR SALARY TRANSACTION PROCESSING.
A. VA local payroll staff will transmit official certified VA time and attendance records
data by the deadline as stated in Volume XV, Chapter 1, Appendix E-1, Payment Run
Processing Cycle Schedule.
B. VA local HR and payroll staff will use authorized automated systems and related
procedures to assist VA’s payroll provider to ensure that:
1. Employees receive payment for the correct amount of salary and other pay
entitlements, based on the authority as stated in VA Handbook 5007, Pay
Administration.
2. Payments are properly documented and charged to appropriate accounts so
accounting records and other documentation accurately reflect employee payments.
C. VA will issue special payments (payments outside the normal bi-weekly processing
cycle) to employees only when they have not received 90 percent of their basic pay and
allowances during normal payroll processing.
060202.01 Agency Payment Restriction.
A. VA will comply with limitations on aggregate pay applicable to all employees in
accordance with VA Handbook 5007, Part VII Chapter 2, Aggregate Limits.
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B. VA facilities will not issue paper checks1 or make cash payments for employee
salaries.
C. VA will not use appropriated funds to pay interest and/or fees on behalf of
employees or to correct agency acts, errors or omissions, unless specifically authorized
by statute.2
D. VA will not reimburse employees for late payment charges due to payroll-related
disbursement errors, whether caused by:
erroneous payroll system or employee data, or
errors made by either VA employees or payroll provider employees in the
performance of their official duties.
060203 ADDITIONAL PAYMENT ITEMS.
060203.01 Back Pay and Settlement Agreements. VA will process pay transactions as
stipulated in back pay determinations and settlement agreements. Refer to back pay
authority in 5 U.S.C. 5596 and to processing instructions in 5 C.F.R. 550.805.
060203.02 Continuation of Pay (COP). VA will, in accordance with employee election
and local HR authorization, ensure payments are made to employees who sustain
traumatic injuries related to their Federal employment and are deemed eligible for
continuation of regular pay during periods of resulting disability, up to a maximum of 45
calendar days.
060203.03 Credit Hours. VA will issue payment at the employee’s regular hourly rate
of basic pay at the time entitlement to pay for credit hours is effective. A full-time
employee may be paid for a maximum of 24 credit hours. A part-time employee may be
paid for a maximum of 25 percent of the hours in the employee’s basic work
requirement. Credit hours may be paid when an employee ceases to work in a unit
where credit hours may be earned.
060203.04 Entitlement upon Separation.
A. Lump Sum Annual Leave (LSAL). VA will make a lump sum payment to an
employee for accumulated and accrued annual leave when an eligible employee
separates, transfers to a position to which the accumulated annual leave cannot be
transferred, or enters on active duty in the armed forces and elects to receive a lump
sum payment for accumulated and accrued annual leave. Refer to VA Handbook 5007,
Part IV, Chapter 3, Lump Sum Annual Leave Payments, for information on LSAL
1 January 15, 2009 update to OMB Circular A-123, Appendix B, adding Chapter 12 prohibits use of
Convenience Checks to issue Federal salary payments or awards.
2 Refer to 31 U.S.C. Subchapter III, Limitations, Exceptions, and Penalties, for more information on fee
payment restriction.
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entitlement for eligible employees, and to Part VIII, Chapter 2, for firefighter LSAL
information.
B. Final Pay. VA will reduce an employees final salary payment by appropriate
deductions and collections for indebtedness to the Federal government. "Indebtedness
to the Federal Government" includes any debt owed by reason of participation in a VA
benefits program.
1. VA will issue payment at the time of separation for any unused balances of
compensatory time earned in lieu of overtime in accordance with VA Handbook 5007,
Part V, Chapter 2, Overtime and Compensatory Time Off.
2. VA will issue payment for unused credit hours at the employee’s regular hourly rate
of basic pay at the time of separation.
C. Deceased Employee Settlement of Accounts. VA local payroll staff will assist local
HR office personnel, as needed, to submit required documentation of death and of
eligible beneficiaries to VA’s payroll provider.
D. Severance Pay. VA will make severance payments to employees when authorized
by memorandum from the local HR office. These payments will be made in accordance
with OPM requirements under 5 C.F.R. §550.707.
E. Voluntary Separation Incentive Payment. VA may offer a Voluntary Separation
Incentive Payment (VSIP) to employees under certain circumstances when authorized
by OPM. For more information on the VSIP, refer to Volume XV, Chapter 3, Awards
and Incentives.
060203.05 Firefighters Pay. VA will pay firefighters covered by the Federal Firefighters
Overtime Pay Reform Act (FFOPRA) of 1998 in accordance with 5 C.F.R. Part 550,
Subpart M, and VA Handbook 5007, Part VIII, Chapter 2, Firefighter Pay. VA
firefighters in the GS-0081 series whose normal work schedule (all hours within tour,
regardless of activity) averages at least 106 hours per bi-weekly pay period will not be
paid for standby duty pay, hazardous duty pay, or other premium pay for work at night,
on weekends, or on holidays.
060203.06 Military Reservist Differential Pay. A provision in Section 751 of Public Law
111-8 requires payment of Reservist Differential Pay effective March 15, 2009. Eligible
VA employees submitting claims who are (1) members of the Reserve or National
Guard, and (2) are called to perform active duty under a provision of law referred to in
10 U.S.C. §101(a)(13)(B), will be paid the amount by which the civilian basic pay the
employee would have earned (but for the active duty) exceeds the military pay and
allowances actually received allocable to the same covered period. Reservist
differential is not payable for any period in which an employee receives civilian basic
pay for performing work or using paid civilian leave or other paid time off. Refer to the
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OPM Web site http://www.opm.gov/reservist/ReservistDifferentialPolicyGuidance.pdf for
additional information and guidance.
060203.07 Nurse Alternate Work Schedule Pay. VA may authorize alternate work
schedules for Registered Nurses and Nurse Anesthetists appointed at VA health care
facilities. VA will issue payment for duty and leave under the 72/80, 9-month/3-month,
and the Baylor Plan in accordance with VA Handbook 5007, Part VIII, Chapter 9, Pay
Administration Policies for Nurses on Alternate Work Schedules.
060203.08 Physician and Dentist Pay. VA will pay physicians and dentists an amount
consisting of three elements: base pay, market pay, and performance pay. Refer to
section 060621 for description of each pay element and to VA Handbook 5007, Part IX,
Pay for VHA Physicians and Dentists, for additional information on pay entitlement.
Full-time physicians and dentists are paid on a daily basis; part-time physicians and
dentists are paid on an hourly basis.
Part-time Physicians. VA may authorize adjustable work schedules for part-time VA
physicians who have VA or non-VA patient care, research or educational responsibilities
and who frequently encounter unanticipated obligations that require them to deviate
from their scheduled tours of duty. VA local HR will determine if a part-time physician
qualifies for an adjustable work schedule in accordance with VA Handbook 5011, Part
II, Appendix I, Instructions for Completing and Monitoring Memoranda of Service Level
Expectations.
060203.09 Premium Pay. VA will pay premium pay to employees entitled by law
and/or VA regulation.
A. VA will compensate eligible employees for overtime and compensatory time, in lieu
of overtime, in accordance with VA Handbook 5007, Part V, Chapter 2, Overtime and
Compensatory Time Off, except as follows:
The Fair Labor Standards Act (FLSA) overtime will be paid in accordance with 5
C.F.R. Part 551, Subpart E.
Wage Grade employee overtime will be paid in accordance with Federal Wage
System (FWS) Operating Manual Subchapter S8 requirement.
Firefighter overtime will be paid in accordance with VA Handbook 5007, Part VIII,
Chapter 2, Firefighter Pay.
Nurse Alternate Work Schedule overtime will be paid in accordance with VA
Handbook 5007, Part VIII, Chapter 9, Pay Administration Policies for Nurses on
Alternate Work Schedules.
B. VA will pay premium pay to hybrid employees on the same basis as Registered
Nurses, when authorized, in accordance with VA Handbook 5007, Part V, Chapter 3,
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Premium Pay on the Same Basis as Registered Nurses for Employees Appointed under
38 U.S.C. §7401(3) or §7405(a) (1) (B).
C. VA will pay higher rates of additional pay to Nurses, Physician Assistants, Expanded
Function Dental Auxiliaries, and authorized hybrid employees in accordance with VA
Handbook 5007, Chapter 4, Higher Rates of Additional Pay for Employees Appointed
under 38 U.S.C. §§7401, 7405(a) (1) (A) and 7405(a) (1) (B).
D. VA will pay authorized on-call and standby premium in accordance with VA Handbook
5007, Part V, Chapter 5, On-Call Pay and Standby Pay.
E. VA will pay other premium pay, including holiday, night/shift/tour differential, Sunday
premium and weekend premium in accordance with VA Handbook 5007, Part V,
Chapter 6, Other Forms of Additional Pay (Sunday Pay, Night Differential, Weekend
Pay). Refer to VA Handbook 5007, Part VIII, Chapter 9, Pay Administration Policies for
Nurses on Alternate Work Schedules, for premium pay entitlement for those nurses.
F. VA will pay environmental differential and hazard pay differential in accordance with
regulation in VA Handbook 5007, Part V, Chapter 7, Hazard Pay Differential and
Environmental Differential, upon authorization by facility directors.
1. Environmental differential is payable to an employee under the Federal Wage
System (FWS) for work performed under unusually severe working conditions or
unusually severe hazards. Payment will be based on the appropriate percentage rate
authorized for the described exposure under 5 C.F.R. §532.511 and Appendix A to
Subpart E of Part 532.
2. Hazardous pay differential under 5 U.S.C. §5545(d) for General Schedule
employees is additional pay for the performance of hazardous duty or duty involving
physical hardship. Refer to 5 C.F.R. §550.904 for more information on authorization of
Hazard Pay Differential, and to Appendix A of Part 550 for the schedule of authorized
hazard descriptions and associated premium rates.
060203.10 Reemployed Annuitant Salary Offset.
A. VA will reduce a re-employed annuitant’s salary prior to making all other deductions.
Generally, when annuitants are re-employed, their annuities will continue, but the
amount of each annuity that applies to the period of re-employment is offset from the re-
employed annuitant's salary.3 Local HR staff will enter the initial monthly annuity
amount in VA’s automated HR system. For more information on re-employed
annuitants, refer to Civil Service Retirement System (CSRS) and Federal Employees
Retirement System (FERS) Handbook for Personnel and Payroll Offices, Chapter 100,
Reemployed Annuitants, in the Authority and References 060317.
3 VA officials may request to waive the salary offset required under 5 U.S.C. §§8344 and 8468 in order to
hire annuitants to perform one or more of the approved tasks found in Human Resources Management
Letter 05-10-04.
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B. VA’s payroll provider will increase the salary offset when a cost of living increase is
applied to the annuity. Local VA HR or payroll staff will submit a copy of the re-
employed annuitant’s updated OPM annuity statement to VA’s payroll provider and will
enter the new monthly annuity amount in VA’s HR automated system. For more
information on the annuity cost of living adjustment and how it relates to re-employed
annuitants, refer to CSRS and FERS Handbook for Personnel and Payroll Offices,
Chapter 2, Part 2A5, Miscellaneous, in the Authority and References 060316.
060203.11 Special Pay under Title 38. VA will issue Special Pay, as authorized under
Title 38, to eligible Nurse Executives and Pharmacist Executives in accordance with VA
Handbook 5007, Part VIII, Chapters 16 and 17, Special Pay for Nurse Executives and
Special Pay for Pharmacist Executives.
060203.12 Miscellaneous Pay Items.
A. Advance Salary. VA may issue advance salary payments to employees in
accordance with requirements in:
5 C.F.R. Part 550, Subpart D, for employees impacted by an evacuation order, and
VA Handbook 5007, Part VI, Chapter 5, Advances in Pay for New Employees.
B. Child Care Subsidy Program (CCSP). VA Central Office (VACO) will administer the
Child Care Subsidy Program payments in accordance with VA Handbook 5009, Part I,
VA Child Care Subsidy Program and IRS Regulation.
C. Interest Payment. VA will pay interest4 under OPM guidance on back pay. Refer to
5 U.S.C. §5596(b) (2) for back pay interest payment authority.
D. Law Enforcement Officer Availability Pay. VA may pay criminal investigators a
premium to ensure availability for unscheduled duty in excess of the 40-hour workweek
based on the needs of VA in accordance with 5 C.F.R. §550.181. Refer to VA
Handbook 5007, Part V, Chapter 6, Paragraph 3g, Availability Pay, for VA’s payment
authority.
E. Veterans Canteen Service (VCS) Commission Sales. VA’s payroll provider will pay
VCS pieceworkers (e.g., barbers and beauticians) based on regular reporting of weekly
commission sales.
0603 AUTHORITY AND REFERENCES
060301 5 U.S.C. Chapter 51, Classification
4 Interest due under back pay authority in 5 U.S.C. §5596 can be calculated using OPM guidance
available at http://www.opm.gov/oca/pay/backpay/backpay.asp.
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060302 5 U.S.C. Chapter 53, Pay Rates and Systems
060303 5 U.S.C. Chapter 53, Subchapter IV, Prevailing Rate Systems
060304 5 U.S.C. Chapter 55, Pay Administration
060305 5 C.F.R. Part 531, Pay under the General Schedule
060306 5 C.F.R. Part 534, Pay under Other Systems
060307 5 C.F.R. Part 550, Pay Administration (General)
060308 5 C.F.R. Part 551, Pay Administration under the Fair Labor Standards Act
060309 5 C.F.R. Part 1315, Prompt Payment
060310 31 C.F.R. Part 208, Management of Federal Agency Disbursements
060311 Amendment to Title 38, Caregivers and Veterans Omnibus Health Services Act
of 2010
060312 Office of Management and Budget (OMB) Circular A-123, Appendix B,
Improving the Management of Government Charge Card Programs
060313 Treasury Financial Manual (TFM), Volume 1, Part 3, Payrolls, Deductions, and
Withholdings
060314 Office of Personnel Management (OPM), Federal Wage System Operating
Manual
060315 OPM, Federal Wage System Regulation, Subchapter S8, Pay Administration
060316 OPM, CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter
2A5, Miscellaneous
060317 OPM, CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter
100, Reemployed Annuitants
060318 OPM Guidance on Computation of Interest on Back Pay System
060319 OPM, Administrative Claims for Sunday Premium Pay as a Result of Decision
in Fathauer vs. United States
060320 OPM Web site, Salary Tables and Related Information
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060321 VA Handbook 5007, Pay Administration
060322 VA Handbook 5011, Hours of Duty and Leave
060323 VA HRML 05-10-04, Temporary Dual Compensation Waiver Authority for
Reemployed Annuitants
060324 Office of Financial Policy Publications Library
0604 ROLES AND RESPONSIBILITIES
060401 The Secretary or Deputy Secretary will ensure that effective and efficient
financial policies and systems for payroll administration are established.
060402 The Assistant Secretary for Management/Chief Financial Officer (CFO)
oversees all financial management activities relating to the Department’s programs and
operations, as required by the Chief Financial Officers Act of 1990 and 38 U.S.C. 309.
Responsibilities include the direction, management and provision of policy guidance and
oversight of VA’s financial management personnel, activities and operations. The CFO
establishes financial policy, systems and operating procedures for all VA financial
entities and provides guidance on all aspects of financial management.
060403 Under Secretaries, Assistant Secretaries, Chief Financial Officers, Fiscal
Officers, Chiefs of Finance Activities, Chief Accountants and other key officials are
responsible for ensuring compliance with the financial policies and procedures set forth
in this chapter. The appropriate VA key officials, working through the CFOs, will provide
and/or arrange for training for Fiscal/Finance Office employees and timekeepers in
policy and procedures relating to automated and manual systems for employee pay,
leave, allowances, and deductions.
060404 The Assistant Secretary for Human Resources and Administration will (through
the Deputy Assistant Secretary for Human Resources Management) advise Under
Secretaries, Assistant Secretaries, Other Key Officials, and field station managers and
supervisors of legal and policy requirements and authorities relating to employee pay,
leave, allowances, and deductions, excluding taxes.
060405 The Employees Accounts Section is commonly referred to as Local
Payroll.A brief summary of responsibilities for this section includes: ensuring facility
training and support is provided to timekeepers and supervisors for time and attendance
(T&A) reporting, ensuring bi-weekly T&A data and daily master record update
transactions are transmitted timely, and ensuring employees receive appropriate pay
and leave entitlements. Specific responsibilities for the Employee Accounts Section are
extensive and are outlined in Volume XV, Chapter 1, Payroll: Overview.
060406 Director, Austin Information Technology Center (AITC) or designee specified in
writing by name and position, will ensure timely transmission of VA timecard data to
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VA’s payroll provider, creation of payroll reports, and storage of payroll
data/reports. Accounting/payroll processing documents (e.g., for retirement corrections)
will be prepared, as needed, in accordance with applicable laws, regulations, and VA or
Treasury policy.
060407 Director, Financial Services Center (FSC) or designee specified in writing by
name and position, will ensure that payroll activity is generated and processed as
needed, to include Tier 1 payroll support services. Accounting/payroll processing
documents will be prepared, as needed, in accordance with applicable laws,
regulations, and VA or Treasury policy.
060408 The Defense Finance and Accounting Service (DFAS), one of four e-Payroll
service providers, is VA’s designated payroll provider. DFAS processes payroll and
makes all employee deductions and disbursements, generates leave and earnings
statement file and W-2s (Wage and Tax Statement), charges VA appropriations and
cost centers, and reports all payroll-related financial information to Treasury on behalf of
VA.
060409 Facility Directors will ensure appropriate local controls, policies, and
procedures are established and followed to ensure compliance with all laws,
regulations, and policy covering payroll and related HR issues.
060410 Chiefs, Human Resources Management Service will provide appropriate levels
of advice and assistance to employees, beneficiaries, supervisors, and Fiscal/Finance
employees regarding laws, regulations, and policy covering HR issues, including
interpretation of rules relating to hours of duty, pay, leave, and authorization of
deductions from pay. They will also ensure HR data is accurately and timely entered
into automated HR systems that integrate with payroll systems.
060411 Facility Agent Cashiers will follow established VA policy and procedures for
payroll-related collections not made through payroll deduction. Facility Agent Cashiers
will receive and distribute employee salary checks as directed by payroll, and will follow
established VA policy and procedures for returning any unclaimed salary checks.
060412 Service/Division Chiefs will designate an adequate number of unit timekeepers
and alternates by memorandum to the Fiscal/Finance Officer indicating names (position
is not sufficient for this purpose), status (timekeeper or alternate or removal from
timekeeper function), and effective date.
060413 Supervisors and other leave-approving officials, as authorized in VA Directive
5011, section 3 f, and VA Handbook 5011, Part III, Chapter 1, section 2 b, are
accountable for the recording of work time and absence of employees for whom they
are responsible, including leave approval and certification of attendance through
appropriate time and attendance collection procedures or automated systems. For
additional responsibilities besides those described in VA Handbook 5011, refer to
Volume XV, Chapter 1, Payroll: Overview.
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060414 Timekeepers will prepare and maintain time and attendance reports for each
employee whose record has been assigned to their jurisdiction. Timekeepers remain
under the administrative supervision of the supervisor of their own organizational
element while performing the "additional duties" relating to preparation and
maintenance of time and attendance reports. However, timekeepers are under the
technical supervision of the Employee Accounts Section with regard to time and
attendance reporting requirements affecting employee leave and pay entitlements.
Additional responsibilities for timekeepers are outlined in Volume XV, Chapter 1,
Payroll: Overview.
0605 PROCEDURES
060501 PROCESSING FOR PAY.
A. General Payment Processing. Routine payroll calculations are automated. Refer to
Appendix A, Systems Information and On-Line Resources, for automated systems
descriptions and on-line resources. Refer to Appendix B, Pay Calculation Information,
for guidance in manual calculation of basic pay and premium pay for employees.
Corrections to the Master Employee Records (MER) and/or timecards in VA payroll
provider’s payroll system may be necessary to ensure accurate payment.
B. Special Pay (Payment outside the Regular Bi-weekly Processing Cycle). VA local
Payroll staff may submit a special pay request through the Remedy system when an
employee has received less than 90 percent of basic pay and allowances. Necessary
corrections to MER and/or timecards in VA payroll provider’s payroll system must be
entered prior to submission of the Remedy request.
C. Emergency5 Payment Processing. VA’s Payroll and HR Systems Service (PHRSS)
may authorize automated processing of basic pay for full-time and part-time employees’
normal hours or days of work when payroll data cannot be transmitted for a VA facility.
Local payroll staff will provide emergency contact information and requirements of the
activated Continuation of Operations Plan (COOP) affecting payroll processing to
VAFSC Payroll Support Service. PHRSS will then contact the facility Director or
designee if and when necessary. Emergency payment processing may require VA local
payroll staff action to reflect accurate timecard data (See Timecard Adjustment section
D2 below.) as soon as possible after the emergency ends. VA must ensure employees
receive the proper adjustment for actual time worked and/or leave used.
5 Employee or family member medical emergency leave contingencies including the Voluntary Leave
Transfer Program (VLTP) are addressed in VA Handbook 5011, Hours of Duty and Leave, Part III,
Chapters 2 and 3. When an Emergency Leave Transfer Program (ELTP) event is authorized through
OPM notice, the Office of Human Resources Management (OHRM) will issue appropriate notification and
guidance to VA Human Resources.
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D. Timecard Adjustment. Adjustments or corrections will be made to employees’
payroll records as soon as practicable after discovery of errors and will be documented
for the affected pay period.
1. VA Time and Attendance System (VATAS) - Approved adjustments flow to the
Defense Civilian Pay System (DCPS) for correction of pay and leave. VA local payroll
staff must not adjust the DCPS timecard for timesheets originally processed in VATAS,
unless exception is authorized by the VATAS Tier 1 Help Desk.
2. Enhanced Time and Attendance (ETA) - VA local payroll staff will enter approved
adjustments and/or corrections to timecard data, when needed, in the DCPS timecard
record. Refer to Appendix C, Timecard Adjustment, for additional processing
requirement information.
E. Special Process Requirement. Refer to Appendix D, Special Circumstance
Processing Requirements, for irregular transaction processing requirements.
F. Part-time Physicians. VA local payroll staff will reconcile and process adjustments to
pay received by part-time physicians with adjustable work hours when a Memorandum
of Service Level Expectations (MSLE) expires or is terminated. Refer to Appendix E for
processing instructions.
060502 ADDITIONAL PAYMENT PROCESSING PROCEDURES.
060502.01 Back Pay and Settlement Agreements.
A. Back Pay. VA’s payroll provider will process required adjustment transactions. VA
local payroll staff will submit necessary documentation and will make required timecard
adjustments. Back pay entitlement will be charged to the employee salary appropriation
for the fiscal year to which the payment relates6 or for the current year when the prior
year appropriation is closed.7
B. Settlement Agreements. Settlement agreement payment for other than back pay will
be paid through VA accounting.
060502.02 Continuation of Pay (COP).
VA local HR will authorize COP by memorandum over the signature of the proper
authority. The memorandum must contain the employee’s name, the date of injury, and
a statement that the employee has elected to have pay continued. COP payments are
subject to deduction for taxes and all other payroll deductions that are made from
regular income. Refer to 5 U.S.C. §8118 and to 20 C.F.R. Part 10 for additional
6 Refer to GAO Comptroller General Decision, Back Pay Awards For Prior Fiscal Year, B-233993
(69Comp.Gen.40), October 27, 1989.
7 If it is determined that funds are not available at the upper VA level for expired funds, the excess may
only be liquidated pursuant to a supplemental or deficiency appropriation or other congressional
action. (GAO CG B-253623 and GAO Appropriations Law, Volume I Chapter 5, Section D 3. and 4.)
Refer to Volume II, Chapter 2, VA’s Budget Cycle and Fund Symbols, for additional information.
Department of Veterans Affairs July 2014
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information. Refer to Volume XV Chapter 6, Payroll: Payments, Appendix I,
Continuation of Pay (COP) Quarterly Report.
060502.03 Entitlement upon Separation.
A. Lump Sum Annual Leave. VA local payroll staff will audit leave for the year prior to
separation. VA local payroll staff will make corrections in VA’s payroll provider’s time
and attendance system for any discrepancies found.
B. Final Pay. VA will release final salary payments for normal processing by DD/EFT
transaction when clearance from indebtedness has been documented timely.
VA local payroll staff will direct the employee’s final salary payment to the facility Agent
Cashier when clearance from indebtedness has not been documented timely.8 VA local
Payroll staff will promptly forward notice to the Agent Cashier of clearance confirmed, or
detail of debt to support recovery upon release of final salary payment.
C. Severance Pay. VA local payroll staff, upon notice of entitlement from HR, will
calculate severance pay in accordance with 5 C.F.R. §550.707. The severance
payment amount will be returned to VA local HR for transmission to VA’s payroll
provider for payment.
060502.04 Premium Pay. Refer to Appendix F, Premium Pay, for information on
procedures to ensure recognition of premium pay entitlement.
060502.05 Other Payment Procedure Coverage. References are indicated below
where financial policies and procedures have been developed for payroll payments in
other volumes and chapters.
A. Allowances. The definitions and instructions for the following allowances are found
in Volume XV, Chapter 2, Payroll: Allowances.
Cost of Living Allowance (Non-Foreign);
Education Allowance (Foreign);
Living Quarters Allowance (Foreign);
Physician’s Comparability Allowance;
Post Differential (Foreign and Non-Foreign);
Transfer Allowance (Foreign); and
8 Refer to Volume XV Chapter 1, Overview, Appendix I, Clearance from Indebtedness, for additional
information.
Department of Veterans Affairs July 2014
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Uniform Allowance.
B. Awards and Incentives. The definitions and instructions for the following Awards
and Incentives are found in Volume XV, Chapter 3, Payroll: Awards and Incentives.
Monetary Awards (Cash or Cash Equivalent);
Non-monetary Awards (Non-Cash);
Time Off Awards;
Combination Awards;
Recruitment and Relocation Incentive;
Retention Incentive;
Home Marketing Incentive;
Student Loan Repayment Incentive;
Supervisory Differential Incentive;
Voluntary Separation Incentive Payment; and
Extended Assignment Incentive.
C. Transit Benefit Payments. The definitions and instructions for the Transit Benefit
Program are found in Volume III, Chapter 1, Transit Benefit Program.
0606 DEFINITIONS
060601 Aggregate Limit. An employee may not receive any premium payments that,
when added to the annual rate of the employee's continuing payments and any lump
sum payments received earlier in the calendar year, would exceed aggregate limits on
pay. For provisions determining an employee’s aggregate limit, refer to 5 C.F.R.
§550.106.
060602 Back Pay. As defined in 5 U.S.C. §5596, back pay refers to an amount, once a
personnel action is corrected, equal to all or any part of the pay, allowances, or
differentials, as applicable, which the employee normally would have earned or received
during the period if an unjustified or unwarranted personnel action had not occurred,
less any amounts earned by the employee through other employment during that
period. (Note: routine retroactive adjustments are not considered back pay.)
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060603 Basic Pay. Rate of basic pay means the rate of pay fixed by law or
administrative action for the position held by an employee, including any applicable
locality payment, special rate supplement, or similar payment or supplement under
other legal authority (e.g., Title 38) before any deductions and exclusive of additional
pay of any other kind. It does not include awards, bonuses, overtime pay, military pay,
special allowances, holiday pay, or other compensation given in addition to the base
pay of a particular position.
060604 Bi-weekly Limit on Premium Pay under Title 5. An employee may not receive
any premium payments that, when added to the employee’s bi-weekly base
compensation, would exceed the bi-weekly limit of the employee set in part by 5 C.F.R.
§550.105. (Note: This limitation is subject to exceptions for emergency or mission-
critical work.)
060605 Continuation of Pay (COP) is continuation of an employee's regular salary for
up to 45 calendar days of wage loss due to disability and/or medical treatment following
a traumatic injury. The intent of this provision is to eliminate interruption of the
employee's income while the Office of Workers’ Compensation Program is processing
the claim. COP is subject to deductions for income tax, retirement, etc.
060606 Deductions/Withholdings. Deductions and withholdings are voluntary and
involuntary amounts of money taken from an employee’s gross income.
060607 Environmental Differential. A differential paid for a duty involving unusually
severe hazards or working conditions.
060608 Executive Schedule. The Executive Schedule, which is divided into five pay
levels, is the basic pay schedule for Senior Executive Service (SES) positions.
060609 Fair Labor Standards Act (FLSA). Law that establishes minimum wage,
overtime pay, recordkeeping, and youth employment standards affecting employees in
the private sector and in Federal, State, and local governments. Covered non-exempt
workers are entitled to a minimum wage rate per hour. Overtime pay at a rate not less
than one- and one-half times the regular rate of pay is required after 40 hours of work in
a workweek.
060610 General Schedule. The General Schedule (GS) is a schedule of annual rates
of basic pay, consisting of 15 grades, designated "GS-1" through "GS-15," with 10 steps
for each grade.
060611 Hazard Pay Differential. Additional pay under 5 U.S.C. §5545(d) for the
performance of hazardous duty or duty involving physical hardship. An employee
subject to Title 5 of the U.S.C. may be entitled to a hazard duty pay differential for duty
performed under circumstances in which an accident could result in serious injury or
death.
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060612 Leave and Earnings Statement (LES). A comprehensive statement which
shows an employee’s leave and earnings for the pay period. In addition to employee
information at the top of the form, sections include a gross pay and deduction summary,
current earnings, retroactive earnings (if applicable), deductions, leave, agency benefit
payments, and remarks.
060613 Locality Pay9. A locality-based comparability payment payable under 5 U.S.C.
§5304, Locality-based Comparability Payments, and 5 C.F.R. §531, Subpart F, Locality-
Based Comparability Payments. An employee's locality payment is the difference
between the employee's locality rate and the employee's scheduled annual rate of pay.
Locality pay is considered part of basic pay for purposes of retirement, life insurance,
and certain premium pay.
060614 Locality Pay Percentage. Percentage authorized for a locality pay area under
5 U.S.C. §§5304 and 5304(a), which is used to compute a locality payment (before
applying any maximum pay limitations under 5 C.F.R. §531.606).
060615 Locality Rate. A scheduled annual rate of pay plus an applicable locality
payment. A General Schedule employee's locality rate is computed under 5 C.F.R. Part
531.
060616 Master Employee Record. A record in VA’s payroll providers automated
system that contains all essential information to process transactions for pay, benefits
and deductions.
060617 Master Record. Employee record within VA’s HR automated system that
contains all essential information required for administering the payroll and benefits for
each VA employee, including information on each employee’s pay, benefits, and other
wage-related expenses.
060618 Memorandum of Service Level Expectations. A written memorandum of
understanding between VA and a part-time physician on adjustable work hours that
specifies an expected level of service during a service year.
060619 Payroll Accounting. A portion of payroll operations that includes disbursing
payments, charging the appropriation, making necessary adjustments and reporting
expenses monthly and by fiscal year.
060620 Payroll Provider’s Payroll System. A system operated by VA’s payroll provider
used to process VA’s payroll transactions.
9VA is authorized under 5 U.S.C. §5304 and 5 C.F.R. Part 531 to pay GS employees and other
categories of employees to whom locality payments are available at a premium due to the cost of living in
the specific local geographic area. Detailed tables consisting of local area amounts for locality pay and a
listing of areas eligible for locality pay can be found at http://www.opm.gov/oca/10tables/index.asp.
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060621 Physician and Dentist Pay. The pay of VHA physicians and dentists consists
of the following:
Base Pay. Base Pay is determined under the Physician and Dentist Base and
Longevity Pay Schedule, and the total number of years of service in VHA.
Market Pay. Market Pay consists of pay intended to reflect the recruitment and
retention needs for the specialty or assignment of a particular physician or dentist in
an applicable VA facility.
Performance Pay. Performance Pay shall be paid to a physician or dentist on the
basis of the physician’s or dentist’s achievement of specific goals and performance
objectives prescribed to him or her.
060622 Premium Pay. Additional pay due under Title 5 or Title 38 for work during
evening or night hours, on weekends, or on holidays; overtime and compensatory time;
and for scheduled availability for work as needed.
060623 Re-employed Annuitant. A Federal employee who had retired from Federal
service, and then was re-employed back into Federal service. This employee has an
entitlement to an annuity under a retirement system established for Federal employees,
including retirement systems of a non-appropriated fund instrumentality of the
Department of Defense or the Coast Guard.
060624 Severance Pay. Severance pay consists of (1) a basic severance allowance
computed on the basis of 1 week's basic pay at the rate received immediately before
separation for each year of civilian service up to and including 10 years for which
severance pay has not been received under this or any other authority and 2 weeks'
basic pay at that rate for each year of civilian service beyond 10 years for which
severance pay has not been received under this or any other authority; and (2) an age
adjustment allowance computed on the basis of 10 percent of the total basic severance
allowance for each year by which the age of the recipient exceeds 40 years at the time
of separation.
060625 Traumatic Injury. A condition of the body caused by a specific event or
incident, or series of events or incidents, within a single workday or shift. Such
condition must be caused by external force, including stress or strain, which is
identifiable as to time and place of occurrence and member or function of the body
affected.
060626 Wage Grade Employees. Federal employees who are in a recognized trade or
craft, mechanical craft, or manual labor occupation and are paid by the hour. These
employees are paid based on regulation in 5 U.S.C. Chapter 53, subchapter IV,
Prevailing Rate Systems.
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0607 RESCISSIONS
060701 Volume XV, Chapter 6, Payroll: Payments (and Appendices), November 2011
0608 QUESTIONS
Questions concerning these payroll policies and procedures should be directed as
follows:
VHA VHA CFO Payroll Helpline (10A3A) (Outlook)
VBA VAVBAWAS/CO/241C/PAYROLL (Outlook)
All Others PAYROLL POLICY (APPS) (Outlook)
0609 REVISIONS
Section Revision Office
Effective
Date
Appendix F, Figure
6F-2 Correct table Premium Pay Code labels. OFP
(047G) January
2018
060502.01 Back
Pay
Included additional information on use of funds
APS
(047GA) July 2014
0604 Roles and
Responsibilities Updated R&R to match other payroll chapters APS
(047GA) July 2014
060501 Processing
for Pay
Added Emergency Pay process information to
Section C.
Added VATAS timecard adjustment requirement
to Section D.
APS
(047GA) July 2014
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APPENDIX A: SYSTEMS INFORMATION AND ON-LINE RESOURCES
This appendix is under development.
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Appendix B
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APPENDIX B: PAY CALCULATION INFORMATION
CONTENTS
A. General Schedule (GS) Pay
B. Wage Grade (WG) Pay
C. Title 38 Pay
D. Firefighter Pay
E. On-Call Pay
F. Standby Pay
G. Re-employed Annuitant Salary Offset
H. Severance Pay
I. Hostile Fire Pay
A. General Schedule (GS) Pay, 5 USC, Chapter 55, Pay Administration and 31
USC, Chapter 8, Fair Labor Standards.
1. Approved GS pay tables are available at http://www.opm.gov/ under a link to view
salaries and wages.
2. Pay calculation requirement and examples under Title 5, and under FLSA overtime
calculation, are available at OPM websites,
http://www.opm.gov/oca/pay/HTML/computerates.asp, and
http://www.opm.gov/oca/pay/HTML/computeflsa.asp. See 5 CFR Part 550, Pay
Administration, and Part 551, Pay Administration under the Fair Labor Standards Act,
for additional OPM requirements.
3. Hazard Pay Differential. Upon authorization by the facility director, hazard pay
differential will be paid for hours in pay status on the day (or 24-hour period as
designated) on which the duty is performed. Hazard pay differential is in addition to
other pay or allowances. It shall not be considered part of the employee's rate of basic
pay. Refer to 5 CFR Part 550, Subpart I, Appendix A for authorized rates. Local payroll
will instruct affected timekeepers to notify payroll of employee entitlement and any
adjustment. Following VA timecard certification, hours of hazard pay differential
entitlement must be entered by payroll in the Defense Civilian Pay System (DCPS)
timecard record.
4. Healthcare Worker and Hybrid Employees. These employees are entitled to
weekend premium pay under title 38. Hybrid employees may be authorized all premium
pay under title 38. Otherwise base pay and all other premiums are paid under title 5 for
healthcare workers and hybrid employees. Paragraph C below provides additional pay
calculation information for these employee groups.
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B. Wage Grade (WG) Pay, 5 USC Subchapter IV - Prevailing Rate Systems
WG employees, also known as Ungraded or Prevailing Rate employees, have rate
schedules applicable to all Federal agencies normally set and adjusted by a lead
agency for different U.S. geographic areas. Information can be obtained from the
following sources.
Authorized Rate Link: http://www.cpms.osd.mil/wage/wage_schedules.aspx
Federal Wage System (FWS)-Appropriated Fund Operating Manual Link:
http://www.opm.gov/oca/wage/appfund/
Wage Survey Area Definition for Appropriated Fund Employees:
http://www.opm.gov/oca/wage/APPFUND/pdf/AppendixD.pdf
See 5 CFR Part 532, Subpart D, Pay Administration, and Subpart E, Premium Pay
and Differentials, and the Federal Wage System (FWS)-Appropriated Fund
Operating Manual for OPM pay administration requirement.
The hourly rates of basic pay are established by HR action in the employee master
record and may note three hourly rates corresponding with day, evening and night shift
rates.10 Night Shift Differentials and Environmental Differentials are included in basic
pay for wage employees, also affecting deduction for Thrift Savings Plan (TSP),
retirement and life insurance premiums, and affecting calculation of overtime, Sunday
and holiday pay where applicable.
Additional Pay for WG
1. Night Shift Differential.
The following information is contained in the FWS-Appropriated Fund Operating Manual
Subchapter S8-4c:
A prevailing rate employee is entitled to pay at his or her scheduled rate plus a
differential of seven and one-half percent of his or her scheduled rate for
regularly scheduled non-overtime work when a majority of his or her work hours
occur between 3 p.m. and midnight; or 10 percent of his or her scheduled rate if
the majority of his or her work hours occur between 11 p.m. and 8 a.m. The
night shift differential is paid for the entire shift when the majority of hours fall
within the specified periods. Majority of hours means a number of whole hours
greater than one-half (including meal breaks), e.g., 5 hours of a scheduled 8-hour
shift.
10 Whenever it is necessary to convert a basic annual rate to an hourly rate, the hourly rate shall be
derived by dividing the annual rate by 2087 per FWS Operating Manual Section S8-3, paragraph g (3).
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Night shift differentials are included in the rates of basic pay for wage employees
and are used as a basis for computing overtime pay, Sunday pay, holiday pay,
and amounts of deductions for retirement and group life insurance.
Temporary assignment to a different tour of duty.
(i) A wage employee regularly assigned to a night shift who is temporarily
assigned to another night shift with a higher differential shall receive the
higher differential when the majority of the employee’s regularly scheduled
non-overtime hours of work fall within the shift having the higher differential.
(ii) A wage employee regularly assigned to a day shift is entitled to a night shift
differential for any period during which he or she is temporarily assigned to
work a regular shift for which a night shift differential is otherwise payable.
(iii) A wage employee regularly assigned to a night shift shall continue to receive
his or her regular night shift differential during a temporary assignment to
the day shift or to another night shift with a lower differential.
2. Holiday Premium.
Multiply hourly rate of basic pay by number of non-overtime hours worked on holiday,
not to exceed 8 hours or the number of non-overtime hours of a compressed work
schedule (5 CFR §550.131 and 5 CFR §610.407).
3. Sunday Premium
Sunday premium is calculated at 25 percent of the hourly base rate. Sunday premium
may be paid only for non-overtime pre-scheduled hours actually worked, not to exceed
8 hours per Sunday work period or the number of non-overtime hours of a compressed
work schedule.
4. Overtime.
Also see FLSA requirement for covered employees available above in section A.2, and
overtime hourly pay cap affecting FLSA Exempt employees in 5 USC §5342(a)(2).
Excerpt from FWS-Appropriated Fund Operating Manual Subchapter S8-4b (5) and (6):
The hourly overtime rate is computed as follows:
• If the rate of basic pay of the employee is fixed on an hourly basis, multiply the
hourly rate of pay by one- and one-half.
• If the rate of basic pay of the employee is fixed on an annual basis, divide the
annual rate of pay by 2087 and multiply the quotient by one- and one-half.
Computing overtime pay for night work.
(a) Overtime pay for an employee regularly working a shift for which the night
shift differential is paid for the entire shift will be computed on the night rate,
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even though the hours of overtime worked extend into, or fall entirely within a
day shift. When the overtime work is performed on a non-workday, overtime
pay is computed on the rate of the employee’s last previous regularly
scheduled shift.
(b) Overtime pay for an employee having a regularly rotating tour of duty which
includes two or three shifts is computed on the rate of the employee’s
regularly scheduled shift in effect for the calendar day on which the overtime
work is performed. When the overtime work is performed on a non-workday,
overtime pay is computed on the average rate of basic pay for all regularly
scheduled shifts worked by the employee during the basic workweek.
5. Environmental Differential.
Refer to FWS Operating Manual section S8-7, Environmental Differentials Paid for
Exposure to Various Degrees of Hazards, Physical Hardships, and Working Conditions
of an Unusually Severe Nature, and to FWS Operating Manual appendix J for rates
authorized. Payment must be authorized by the facility director.
Excerpt from FWS Operating Manual Section S8-7e. (2).
Environmental differentials are stated as percentage amounts and are authorized for
categories of exposures as described in appendix J. The amount of the
environmental differential which is payable is determined by multiplying the
percentage rate authorized for the described exposure by the second rate for
grade WG-10 on the current regular non-supervisory wage schedule for the area,
counting one-half cent and over as a full cent. The resulting cents-an-hour
amount is paid uniformly to each wage employee in the area who qualifies for the
authorized environmental differential, regardless of the grade level of the wage
employee or the Federal Wage System wage schedule on which the employee is
paid.
From 5 CFR §532.511 (c):
Environmental differential pay is part of basic pay and shall be used to compute
premium pay (pay for overtime, holiday, or Sunday work), the amount from which
retirement deductions are made, and the amount on which group life insurance is
based. It is not part of basic pay for purposes of lump-sum annual leave
payments and severance pay…
6. Wage Grade Pay Calculation Example:
For an FLSA Non-exempt employee with an hourly base rate for day work of $10.00 per
hour:
the evening shift rate is $10.00 x 1.075 = $10.75 per hour
the night shift rate is $10.00 x 1.1 = $11.00 per hour
For this employee working an evening schedule,
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Base Pay and Holiday Premium at the evening shift rate is paid at $10.75 per
hour.
Sunday Premium is paid at $2.69 per hour ($10.75 x .25).
Overtime is paid at the greater of the weekly FLSA overtime rate or $16.13 (1.5
times the applicable shift rate assuming the evening shift rate applies to the
overtime period). FLSA Exempt employee overtime is 1.5 times the applicable
shift rate subject to cap at the minimum rate of basic pay for GS-10, or the hourly
base rate, whichever is greater.
C. Title 38 Pay, 38 USC Chapter 74 - Veterans Health Administration - Personnel
Pay tables link: http://vaww1.va.gov/ohrm/Classification/Classification.htm
1. Physicians and Dentists.
This payment process applies to physicians, dentists, optometrists and podiatrists for
calculation of both base pay and market pay. Physicians and dentists are not entitled to
premium pay. Refer to VA Handbook 5007, part ix for additional pay entitlement
information.
a. Full-Time (Daily Rate). Salary payments for full-time physicians and dentists are
computed by dividing the annual pay authorized for the individual by 364 to determine
a daily rate. This daily rate is paid for all days of paid service. Paid service for full-
time physicians and dentists regularly encompasses 14 days per pay period,
including scheduled non-duty days, unless Leave Without Pay is charged.
Lump Sum Annual Leave entitlement for full-time physicians and dentists requires
payment at 1.4 times the daily basic pay entitlement upon separation multiplied by
the number of days of regular and restored annual leave. Frozen Annual Leave days
are payable at the daily rate only.
b. Part-Time and Intermittent (Hourly Rate). Salary payments for part-time and
intermittent physicians are computed by dividing the annual pay authorized for the
individual by 2080 to determine an hourly rate. This hourly rate is paid for all hours
of paid service. Part-time and intermittent physicians and dentists may not be paid
for more than 1820 hours (7/8ths) in a calendar year. See Appendix E, Part-Time
Physician Adjustable Work Schedule Reconciliation, for applicable pay and hours
restrictions.
2. Other Hourly Title 38 Employees.
The annual salary rate in the employee master record is divided by 2080 hours per
year. The product rounded to the penny is the hourly rate of basic pay.
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Premium pay calculation at standard rates for eligible employees and periods is at 10
percent of the hourly base rate for night differential, 25 percent of the hourly base rate
for weekend premium, at 1.5 times the hourly base rate for regular overtime, and at the
hourly base rate for non-overtime holiday hours. Hours identified as holiday overtime
are paid at 2 times the hourly base rate.
Pay Calculation Example: A registered nurse with an annual salary rate of $46,000
has an hourly pay rate calculated as follows: $46,000/2080 = $22.12
Base pay and Holiday premium pay at 100 percent of the hourly base rate will be
paid at $22.12.
Night Differential at 10 percent will be paid at $2.21 per hour.
Sunday or Saturday premium at 25 percent will be paid at $5.53 per hour.
Regular overtime at 1.5 times the hourly base rate will be paid at $33.18 per
hour.
Overtime on a holiday at 2 times the hourly base rate will be paid at $44.24 per
hour (Holiday Overtime and Holiday premium are not both paid for the same
hours worked).
Higher than standard premium rates may be authorized under VA Handbook
5007, Part V, Chapter 4 for employees authorized all premium pay on the same
basis as Registered Nurses.
Pay entitlement and calculation requirement for nurses on alternate work schedules is
provided in VA Handbook 5007, Part VIII, Chapter 9.
3. Hybrid Title 38 Employees.
Hybrid status is recognized under PAID Pay Plan Code A or B along with Type of
Appointment Code 5 or 6. Occupations are listed in 38 USC §7401 (3).
a. Standard Hybrid Entitlement (only weekend premium under title 38)
Hybrid employees are entitled to weekend premium for periods of service that
include work on Saturday or Sunday payable at 25 percent of the hourly base rate
calculated by dividing the annual salary rate by 2080 hours and then multiplying by
.25. Base pay and other types of premium pay are calculated by dividing the annual
salary by 2087 to get the hourly base rate.
b. Hybrid Authorization for All Premium Pay under Title 38 (See VA Handbook 5007,
Part V, Chapter 3 for authorization information; see Appendix F to this chapter,
Premium Pay, for detail of premium pay codes required to recognize this
entitlement).
Base pay is calculated under title 5 dividing annual salary by 2087 hours to get the
hourly base rate; all premium pay is calculated by dividing annual salary by 2080
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and then multiplying by the applicable premium percentage. Employees authorized
all premium pay under title 38 are FLSA Exempt. Higher than standard rates of
premium pay may also be authorized under VA Handbook 5007, Part V, Chapter 4.
4. Title 5 Healthcare Workers (only weekend premium under title 38).
Occupations are listed in VA Handbook 5007, Part V, Appendix V-A. See appendix F to
this chapter on Premium Pay for premium pay codes required to recognize weekend
premium entitlement.
Weekend premium paid prior to May 5, 2010, is calculated by dividing the annual salary
rate by 2080 hours, rounding to the penny, and then multiplying by .25 to get the hourly
weekend premium rate. After May 5, 2010, divide annual salary by 2087 hours per year
to get the hourly rate in weekend premium calculation. Base pay and all other premium
pay is calculated under title 5.
D. Firefighter Pay.
Firefighter pay entitlement is provided in 5 U.S.C. Part 550, Subpart M (§§1301 to 1307)
and in VA Handbook 5007, Part VIII, Chapter 2. Calculation examples are available in
VA Handbook 5007, Part VIII, Appendix B.
Firefighter Unscheduled/Overtime Adjustment Review Required
VA’s Systems Data Automation (SDA) program automatically converts unscheduled
regular (UN/US) hours worked during the short week for firefighters working rotating
schedules to overtime (OU) on the DCPS timecard. When adjustment is required to
timecard information previously transmitted to DCPS, VA facility payroll must review
requirements for pay entitlement with regard to the following conversion process:
1. ETA UN/US hours must be converted to DCPS OU hours by calculating the
employee hourly rate of pay (in affect at the time of the correction) and dividing the per
annum salary by 2756.
2. Multiply the hourly rate of pay by the total number of UN/US hours in ETA to
determine the pay due for UN/US hours.
3. Divide the amount of pay for UN/US hours by the employee’s overtime rate to
determine the number of OU hours.
4. Post the number of OU hours determined in step 3, on the DCPS timecard.
NOTES
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The employee will be paid the amount reflected for OU hours instead of UN/US
hours as OU provides the greater employee benefit.
The overtime standard of 53 hours per week will be used for all covered firefighters.
Overtime hours within the firefighter’s tour of duty will be treated as regular hours at
the overtime rate, i.e., the straight time portion rate will be included with regular
hours for application of benefits and the half-time time rate will be paid as overtime.
Hours outside the employee’s tour of duty that do not meet the 53-hour overtime
standard will be paid at the straight 2756-basis rate and are not considered basic
pay for benefit purposes. Such hours are essentially unscheduled non-overtime
hours and are not considered base pay for retirement purposes.
For FLSA exempt employees the usual GS-10, step 1 overtime cap (computed as
one- and one-half times the hourly rate for a GS-10, step 1 salary for their location
and occupation using the 2087 divisor) OR the firefighter's hourly rate of basic pay,
are computed using the 2756 divisor.
EXAMPLE
Hourly rate (per annum salary/2756)
$57,478 / 2756 = $20.86 hourly rate
Pay Due (hourly rate X # of UN/US hours)
$20.86 x 22 UN/US = $458.92
Overtime rate (hourly rate X 1.5)
$20.86 x 1.5 = $31.29
Adjusted number of hours to enter in DCPS (pay due divided by overtime rate)
$458.92 / $31.29 = 14.67 OU
Actual pay employee will receive (adjusted DCPS OU hours x overtime rate)
14.67 (OU) x $31.29 = $459.03
E. On-Call Pay.
On-Call for eligible employees is payable at 10 percent of the employee overtime rate;
FLSA non-exempt status requires payment at 10 percent of the week’s FLSA OT rate.
Department of Veterans Affairs September 2012
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See paragraph C.2. and C.3.b. above regarding possible authorization of a higher rate
under title 38 authority. On-Call premium is payable for scheduled on-call hours not
worked provided the employee remained available for duty throughout the on-call
period. Refer to VA Handbook 5007, Part V, Chapter 5 for additional on-call pay
entitlement information. Refer to Appendix F of this chapter on Premium Pay for
information on PAID premium pay codes required to recognize on-call premium
entitlement.
F. Standby Pay.
Standby premium pay is established through HR action in the personnel record at a
percentage of the annual salary. Except for entitlement for irregular or occasional
overtime work performed outside the scheduled standby duty period, bi-weekly standby
premium pay entitlements shall exclude other forms of premium pay the employee may
have otherwise been entitled to under title 5. A standby tour must be in addition to a
basic 40-hour workweek (80-hour bi-weekly pay period), and must be established in
writing with actual work hours and standby hours clearly designated in advance of the
workweek. Refer to Appendix F of this chapter on Premium Pay for information on
PAID premium pay codes required to recognize standby pay entitlement.
The standby hourly rate is paid for the number of weekly base pay hours in pay status
under a regular full-time schedule (or for pay period base pay hours in pay status under
a compressed work schedule).
1. Pay Calculation Example: For GS annual salary rate of $38,790 (2012 GS-7,
step 1, RUS) and a standby (SB) percentage authorized at 25 percent;
a. Calculate annual rate including SB premium: $38,970 x 1.25
percent=$48,712.5011;
b. Calculate Aggregate Hourly Rate: $48,712.50/2087=$23.34;
c. Calculate hourly SB rate: $23.34 less regular hourly rate:
($38,970/2087=18.67)=$4.67 SB per hour;
d. Multiply hourly SB rate by base pay hours in pay status for the period:
$4.67 x 40 hours = $186.80 weekly standby premium amount
2. Overtime for Work outside a Scheduled Standby Period.
11 Under title 5, if the annual salary is higher than GS-10, step 1, the standby premium amount must be
limited to the GS-10, step 1, annual salary times the authorized standby percentage. When applicable,
that capped standby premium amount plus the actual annual salary replaces the annual rate calculation
in step 1.
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a. FLSA Exempt. Unscheduled overtime pay for exempt employees remains subject to
regular calculation and salary limitations applicable.
1) Under title 5:
If the rate of basic pay is less than rate of basic pay for GS-10, step 1, the OT
rate per hour is the hourly base rate times 1.5.
If the rate of basic pay is the GS-10, step 1, rate or higher, the OT rate is the
greater of the GS 10, step 1, OT rate, or the employee's hourly rate of basic pay.
2) Under title 38:
Regular overtime is calculated as 1.5 times the hourly base rate.
Holiday overtime is calculated as 2 times the hourly base rate.
b. FLSA Non-Exempt.
1) For an employee authorized annual premium pay, straight time rate of pay is
equal to basic pay plus annual premium pay divided by the hours for which the
basic pay plus annual premium pay are intended (Ref. 5 CFR §551.512(b)). The
“straight time rate” is (weekly12 base pay plus weekly standby premium amount)
divided by (weekly base hours paid plus scheduled standby hours after sleep
time reduction if applicable).
2) An employee’s “hourly regular rate” is computed by dividing the total
remuneration paid to an employee in the workweek by the total number of hours
of work in the workweek for which compensation was paid (Ref. 5 CFR
§551.511(a)).13
3) Overtime pay includes (1) The straight time rate of pay times all overtime hours
worked; plus (2) One-half times the employee’s hourly regular rate of pay times
all overtime hours worked (Ref. 5 CFR §551.512(a)). FLSA overtime is:
Overtime hours outside the standby period times the straight time rate (from
section a. above), plus
Half of the regular rate (from section b. above) times unscheduled overtime
hours, plus
12 Calculation will require combined pay period earnings and hours for both weeks of the bi-weekly pay
period for an employee on a compressed work schedule.
13 Pay calculation example and additional explanation of the regular rate calculation process for this
section will be added.
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Half of the regular rate times (scheduled standby hours less sleep time).
Note: This pay entitlement for payment of FLSA overtime for scheduled
standby hours less sleep time exists also when there are no overtime hours
worked outside the scheduled standby period.
3. Standby Duty Pay Retention: An employee who remains eligible14 for standby
duty pay in the same position and work unit from May 20, 1988, shall be paid
standby premium pay under 5 U.S.C. §5545(c)(1), to the extent it provides the
greater bi-weekly pay benefit. On-call duty pay is compared with retained standby
pay each pay period for affected employees. See VA Handbook 5007, Part V,
Chapter 5, paragraph 2f for additional entitlement information and restriction.
G. Reemployed Annuitant Salary Offset. Bi-weekly annuity offset is calculated as
follows:
1. The monthly annuity is multiplied by 12 months to determine the annual annuity.
2. The annual annuity is divided by 2087 for title 5 employees or 2080 for hourly title 38
employees to determine the hourly annuity rate. For title 38 daily rate re-employed
annuitants, divide the annual annuity by 364 days to determine the daily annuity
rate.
The annuity rate is multiplied by the pay period hours (or days as applicable) of
basic pay entitlement.
H. Severance Pay.
The facility HR will provide by memorandum notice of eligibility, the total years and
months of creditable service, years of age over 40 for the age adjustment allowance,
and notice of any period for which severance pay was previously paid to each eligible
employee. The VA payroll office will calculate the severance pay fund under 5 CFR
§550.707 and provide the result to the facility HR. VAFSC Payroll Support Tier 1 review
of the facility severance pay calculation is recommended.
1. Computation of severance pay fund.
a. Basic severance pay allowance. Except as provided in 5 CFR §550.707 (b)15, the
basic severance pay allowance consists of the following:
14 Eligibility for standby duty pay retention is subject to confirmation by facility HR for select GS healthcare
personnel who are providing direct patient-care services or services incident to direct patient-care
services. This provision does not apply to personnel authorized to receive premium pay (including on-call
pay) on the same basis as nurses.
15 Refer to 5 CFR §550.707(b) for additional calculation instruction in the event of variable basic pay,
wage grade (prevailing rate) employee variable shift premium, or a variable rate for standby duty.
Department of Veterans Affairs September 2012
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1) One week of pay at the rate of basic pay for the position held by the employee at
the time of separation for each full year of creditable service through 10 years;
2) Two weeks of pay at the rate of basic pay for the position held by the employee
at the time of separation for each full year of creditable service beyond 10 years;
and
3) Twenty-five percent of the otherwise applicable amount for each full 3 months of
creditable service beyond the final full year.
b. Age adjustment allowance. The basic severance pay allowance is augmented by an
age adjustment allowance consisting of 2.5 percent of the basic severance pay
allowance for each full 3 months of age over 40 years.
c. Lifetime limitation. The severance pay fund is limited to that amount which would
provide 52 weeks of severance pay (taking into account weeks of severance pay
previously received, as provided in 5 CFR §550.712).
d. Payment is issued through exhaustion of the fund for eligible days at the weekly rate
at the time of separation subject to lifetime limitation and subject to suspension or
termination upon Federal reemployment as directed by HR. Payment must be made
at the same pay period intervals that salary payments would be made if the recipient
were still employed.
I. Hostile Fire Pay (VA Handbook 5007, Part VIII, Chapter 14).
For any month for which an employee is eligible, hostile fire pay will be paid at the rate
of $150 per month. Payments will be annualized and paid on a bi-weekly basis. The
facility payroll office must submit remedy request for the bi-weekly amount due upon HR
certification of entitlement. The DCPS pay code is Z3, “Imminent Danger Pay.
Payments may be authorized retroactively after a determination has been made that an
employee has been subject to hostile fire and is eligible to receive payment.
Hostile fire pay is not basic pay for any purpose, including retirement.
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APPENDIX C: TIMECARD ADJUSTMENTS
Overview: Timecard Adjustments in the Enhanced Time and Attendance (ETA)
System. The certified VA timecard is the official document of record for hours/days of
work and for leave used. The Time & Attendance (T&A) portion of ETA software
collects and processes data necessary to pay employees. An automated process
transmits certified timecard data to the DCPS. Adjustments to the transmitted VA
timecard do not flow in an automated process to update employee records in DCPS.
Necessary changes to the VA timecard are recorded by VA local payroll on the
corresponding DCPS timecard.
A. Prior Pay Period Adjustments in ETA
As timecard corrections progress from timekeeper entry through supervisor approvals to
payroll processing, a display of the employee pay period provides the current
adjustment status and the date of the last status update.
1. Timekeeper-Status: Requested. An entry under the Timekeeper Main Menu’s Prior
Pay Period Adjustment option immediately changes the display of the pay period and
generates a correction record showing:
New posted information;
Prior posted information;
Status date is the date of timekeeper entry of the correction; and
Correction remarks-Remarks allow brief explanation of what brought the need for
correction to the timekeeper’s attention and what change is needed.
The timekeeper should notify the supervisor(s) of timecard corrections and should
monitor progress to an Approved or Payroll Processed status. If the T&A supervisor at
either level elects to disapprove or cancel a timecard adjustment, the timekeeper must
post the day as directed by the supervisor, or return the earlier posted information.
2. Primary Supervisor-Status: Supervisor Approved. Timecard corrections flow to the
primary T&A Supervisor under the Supervisory Approvals option. The new posting
information is displayed for supervisor review along with the change remarks on a
timecard correction. The supervisor can display the employee pay period to see prior
posted information in the correction record(s). The supervisor should notify the
timekeeper of additional correction required and of any action to disapprove or cancel
timecard adjustments. Only approved actions flow to the higher level supervisor for
approval.
3. Secondary Supervisor-Status: Approved. Under T&A OT/Supervisor menu option,
Approve OT and CT/CH, timecard corrections flow to a higher level supervisor. The
supervisor should notify the timekeeper of additional correction required and of any
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action to disapprove or cancel timecard adjustments. Only approved actions flow to
payroll to process pay and leave adjustments.
4. Payroll-Status: Payroll Processed. Approved timecard corrections are available to
payroll under the menu option to List/Clear Prior Pay Period Corrections. VA local
payroll is responsible for determining the change to entitlement associated with
approved timecard adjustments.
WHITE,SNOW :123-45-
6798
Corrected T&A History
Status: PAYROLL PROCESSED
* * * Prior Data * * *
25-Apr-11 10:36am
Date
Scheduled Tour
Tour Exceptions
Fri 15-Apr-11
07:30A-04:00P
07:30A-01:00P ML MIL LV
* * * Corrected Data * * *
Date
Scheduled Tour
Tour Exceptions
Fri 15-Apr-11
07:30A-04:00P
07:30A-12:30P ML MIL LV
---------------------------------------------------------------------------
Change Remarks: Military leave needs to be posted as whole hrs
.
B. Payroll Entitlement Change Determination
1. Timecard adjustments in ETA must be certified through the workflow process
described in section A, above, before change to pay and leave is entered on the DCPS
timecard.
2. All local payroll determinations of timecard adjustment must be verified by a second
payroll office employee.
3. A helpful tool in evaluating required adjustment is the “decompose” time option. The
ETA software package applies coded payroll rules to "decompose" timecard data into
an 8B record for transmission to the payroll processing system. The 8B record is
comprised of employee personnel record information along with timecard data which is
separately summarized for each week of the pay period. Payroll Main Menu option,
Display Employee Pay Period, displays the coded entitlement and leave detail upon
supervisor certification of the timecard. The documents in Figure 6C-1: 8B Record
Content Information provide information on the 8B record.
Figure 6C-1: 8B Record Content Information
8B Codes, Alpha.pdf
8B Code String
Employee Record.pdf
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The same payroll rules that develop the timecard’s original 8B record are used to re-
evaluate timecard data using the decompose time option (available at most VA
facilities). This option may be of little help in determination of additional entitlement
change where several prior adjustments have processed for the same record. Sample
display of an automated listing of pay and leave changes is displayed below.
NAME [SSN: XXXXXXXXX] Pay Period: YY-##
=====================================================================
Loc. Data Element Code Old Value New Value
---- -------------- ---- --------- ---------
Wk-1 Unscheduled Regular UN 020 020
Wk-1 Night Differential-2 NA 360 360
Wk-1 Saturday Premium SP 100 100
Wk-1 Sunday Premium-D SA 240 240
Wk-1 Part Time Hours PT 342 342
Wk-2 Sick Leave SL 120 120
Wk-2 Night Differential-2 NR 232 241 *
Wk-2 Saturday Premium SQ 160 163 *
Wk-2 Sunday Premium-D SE 080 080
Wk-2 Overtime Hrs > 8 Day-D DE 000 003 *
Wk-2 Part Time Hours PH 352 352
Misc Control Data CD 002002 002021 *
When reading the 8B code, the hours will be displayed as the number of whole hours
followed by the number of quarter hours.
¼ hour (15 minutes) = 1 ½ hour (30 minutes) = 2
¾ hour (45 minutes) = 3 Whole hour (0 minutes) = 0
Example:
25.5 hours will display as 252
45 minutes will display as 003
Final column quarter hour coding does not apply to most items other than lump sum
leave hours that have no Week 1 or Week 2 designation in the attached 8B codes,
Alpha file (Miscellaneous Data items on the paper timecard, VA Form 5631). The
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decompose option notes change from the original certified timecard; asterisks do not
identify all changes from prior timecard data when multiple adjustments are entered for
a single pay period timecard.
An ETA timecard adjustment that does not change any values between the last two
columns displayed above indicates no change to pay or leave for a single adjustment.
A prior adjustment or an intervening change to the employee master record affecting
pay entitlement may require detailed examination of all changes to calculate the correct
additional adjustment to pay or leave.
For example, a change made to add leave usedwhere none was originally charged
may process separately from another later adjustment removing that leave charge.
With the second change, no difference is recognized by asterisk because the code
string is returned to match the original timecard information for that week.
C. DCPS Adjustment Entries
Change to the work schedule in DCPS must be avoided when submitting pay and/or
leave change data. Exceptions that may require temporary work schedule changes
in DCPS are presented in Appendix D, Special Circumstance Processing
Requirements. Adding premium pay to prior period records on the DCPS timecard
can require the shift of work hours from one day to another. Workdays and hours on
the DCPS timecard do not need to match those on the VA timecard. If unable to
resolve invalid timecard discrepancies due to DCPS work schedule change, contact
your payroll policy office, VBA, VHA or VACO, for assistance.
Total work and leave hours on any day cannot exceed 24.
Sunday premium hours must be entered on Saturday, Sunday or Monday on the
DCPS timecard.
Title 38 Saturday premium adjustment requires entry of Saturday premium hours on
either a Friday or Saturday in DCPS.
Firefighter timecard adjustments may require calculation for conversion of ETA
unscheduled hours (codes UN or US) to the correct number of DCPS overtime hours
for the appropriate pay entitlement. Refer to Appendix B, Pay Calculation, for
information on required review.
D. DCPS Time & Attendance (T&A) Reports Timecard Change Required
VA timecard information that populates data on DCPS bi-weekly CSR Conversion of
Hours and Missing Time reports require prompt VA action to resolve discrepancies. VA
local payroll staff and the timekeeper will work with and take direction from the T&A
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supervisor to determine correction needed to address the following items commonly
noted on DCPS reports.
Advanced annual or sick leave must be supported by authorization.
Leave used in excess of available balances must be corrected.
KM (Missing Time) must be converted to another type of time on the DCPS
timecard.
Changes to the DCPS timecards as well as retroactive changes to Master Employee
Record (MER) information can generate invalid conditions on the timecard or in the
work schedule. Timecard invalid conditions must be resolved to permit processing of
any retroactive pay or leave adjustment.
E. Additional Time and Attendance Records (Non-ETA)
1. If the electronic record in ETA is not available:
VA Form 5631, Time and Attendance Report, is used.
For fee basis entitlement, a certified statement of earnings in a pay period along with
detail of work performed may be used.
2. Payroll Policy will issue instruction for use of other supplementary documents
authorized to certify pay entitlement; examples include:
Military Leave for law enforcement purposes under 5 USC §6323(b)--refer to OFP
Vol. XV, Chapter 5, Appendix C-5.
Part-time Physician Adjustable Work Schedule Reconciliation--refer to OFP Vol. XV,
Chapter 6, Appendix E.
Reservist Differential--refer to OFP Vol. XV, Chapter 6, appendix H.
Department of Veterans Affairs September 2012
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Appendix D
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APPENDIX D: SPECIAL CIRCUMSTANCE PROCESSING REQUIREMENTS
This appendix is under development.
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Appendix E
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APPENDIX E: PART-TIME PHYSICIAN ADJUSTABLE WORK SCHEDULE
RECONCILIATION
This appendix is under development.
Department of Veterans Affairs September 2012
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Appendix F
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APPENDIX F: PREMIUM PAY
Overview:
Entitlement to premium pay authorized under title 5 and title 38, and under the Fair
Labor Standards Act (FLSA) is addressed in VA Handbook 5007, Pay Administration,
and in the additional resources identified in that handbook. Timekeeping, payroll and
HR systems require entry of applicable data to ensure correct premium pay entitlement
is recognized. Employee categories with different criteria for premium pay entitlement
are presented in sections A through C of Appendix B, Pay Calculation Information. The
following employees are not entitled to premium pay: physicians, dentists,
chiropractors, optometrists, podiatrists, and fee basis employees.
This appendix addresses payroll entry of premium pay codes in the Personnel and
Accounting Integrated Data (PAID) system, briefly describes ETA functions to recognize
applicable premium pay entitlement, and explains some system discrepancies that may
impact premium pay processing.
A. PAID Premium Pay Codes (PPCs)
VA Local payroll enters and/or corrects PPCs on PAID Screen A400 upon evidence of
authorization. Do NOT enter a PPC in PAID with a retroactive effective date earlier than
the start of the current pay period. See additional instruction in section C. Systems
Premium Pay Recognition and PAID/DCPS Discrepancy Correction of this appendix for
retroactive change.
Periodic payroll verification is recommended of PPCs assigned to all personnel in a
specified category.
A list of PPCs and associated descriptions are listed in Figure 6F-2: Premium Pay
Codes below. All PPCs other than codes C, O, and R, which apply to firefighter pay,
are associated with premium pay entitlement under title 38, with on-call, and/or with
standby premium pay entitlement.
PPCs E & F- title 38 Hybrid authorization for entitlement to all premium pay under
title 38 is addressed in VA Handbook 5007, Part V, Chapter 3. Payroll must have a
copy of director authorization identifying employee categories affected to support
maintenance of these codes in employee PAID records. Entry of a premium pay code
is not required for PAID recognition of hybrid employee entitlement to weekend
premium pay under title 38.
PPC’s A and E-title 38 variable rates for premium pay are addressed in VA
Handbook 5007, Part V, Chapter 4. Registered Nurses (RNs), Physician Assistants
(PAs), Expanded Function Dental Auxiliaries (EFDAs), and those hybrid title 38
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employees authorized all premium pay under title 38 may be designated by individual or
by employee group to receive premium pay at higher than standard rates. Payroll must
have a copy of director authorization identifying employee categories affected to support
maintenance of these codes in employee PAID records. Facility HR must contact HR
Information Systems (HRIS) to establish variable rates for an employee category in
PAID before facility PPC entry will impact employee premium pay rates.
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Figure 6F-2: Premium Pay Codes
Code Used For Rate/Divisor
Sat Sun ND OT HOL On Call
A RN, PA,EFDA
Variable
Variable
Variable
Variable
Variable
Variable
2080
2080
2080
2080
2080
2080
E Hybrids
Variable
Variable
Variable
Variable
Variable
Variable
2080
2080
2080
2080
2080
2080
F Hybrids
25%
25%
10%
150%
100%
10% of OT Rate
2080
2080
2080
2080
2080
2080
S Health Care Workers
Weekend
25%
25%
10%
150%
100%
N/A
2087
2087
2087
2087
2087
2087
T
Health Care Workers On-
Call
25%
25%
10%
150%
100%
10% of OT Rate
2087
2087
2087
2087
2087
2087
U Health Care Workers
Standby
25%
N/A
N/A
N/A
N/A
N/A
2087
N/A
N/A
N/A
N/A
N/A
X Hybrids On-Call
25%
25%
10%
150%
100%
10% of OT Rate
2080
2080
2087
2087
2087
2087
Y Hybrids Standby
25%
N/A
N/A
N/A
N/A
N/A
2080
N/A
N/A
N/A
N/A
N/A
C Fire Chiefs & 40 Plus
Firefighters
Employee’s regularly scheduled 40 hr workweek, 2087 Divisor, firehouse coverage hrs outside 40 hr
workweek which does not consist primarily of 24-hr shifts, 2756 Divisor, to average at least 106 total hrs per
pay period - compressed tours must have 80 basic hours covering less than 10 workdays during pay period,
these basic hours must not exceed overtime standard of 53 hrs in any one week.
O Firefighters
Employees who work 80 hrs per pay period with normal hours less than 106 and do not have additional
firefighter coverage. All Pay, under title 5, 2087 Divisor.
R Firefighters
Employees who work 24-hr shifts averaging more than 106 hrs per pay period and do not have a 40 hr
workweek built into the tour of duty, overtime paid for hrs over 53, All Pay, 2756 Divisor
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Code Used For Rate/Divisor
Sat Sun ND OT HOL On Call
V Health Care Workers
Greater of Standby plus Saturday or On Call plus Weekend Premium Pay Standby under title 5, 2087 Divisor,
On Call and Premium Pay (night differential, overtime, holiday) under title 5, 2087 Divisor, and Weekend
Premium Pay (Saturday and Sunday) under Title 38, 2087 Divisor - Pay calculated under both methods and
greater amount paid. Health Care Workers (See VA Handbook 5007, Part V, Paragraph 2f, Standby Duty Pay
Retention).
W Hybrids
Greater of Standby or On Call Standby, title 5, 2087 Divisor plus Saturday premium pay under title 38, 2080
Divisor, On Call and Premium Pay (night differential, overtime, holiday) under title 5, 2087 Divisor plus
Weekend Premium Pay, 2080 Divisor. Pay calculated under both methods and greater amount paid. Hybrids
(See VA Handbook 5007, Part V, Paragraph 2f, Standby Duty Pay Retention).
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B. ETA Premium Pay Recognition
Premium pay eligibility recognized in ETA can be verified using the Display Employee
Entitlements option under the Payroll Main Menu.
ETA requires timekeeper entry of remarks codes to ensure system recognition of the
correct premium pay entitlement with posting of regular unscheduled hours,
overtime, and compensatory time earned in lieu of overtime (RG/OT/CT).
ETA Remarks codes affecting premium pay include:
7 - Shift Coverage
8 - OT While in Travel Status
9 - OT and CT/CH on Premium T&L
11- Pre-Scheduled
12 - Tour Coverage
13 - CB - Non-Premium T&L
14 - CB - Premium T&L
15 - Compensatory Time-No Remarks
17 - OT/CT With Premiums
Active remarks code descriptions are provided in Figure 6F-3: ETA Time Remarks
Codes below.
ETA Special Tour Indicators can be used by the facility payroll supervisor to
designate tour segments in establishing authorized tours of duty for scheduled daily
work periods. Descriptions for these codes are in Figure 6F-4: ETA Special Tour
Indicator Codes on page 48.
The codes include:
1 - Scheduled Overtime
2 - Scheduled Compensatory Time
4 - Standby
5 - On-Call
6 - SHIFT 2
7 - SHIFT 3
8 - No Premium Pay
Figure 6F-3: ETA Time Remarks Codes (Revised)
Correct use of remarks codes requires a clear understanding of employee category among
General Schedule GS), Wage Grade (WG), title 38, and those hybrid and healthcare workers
(HCW) paid weekend premium under title 38 authority and base pay and other premium pay
under title 5. Contact the facility payroll office for guidance as needed in identifying the
appropriate employee category.
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ETA Time Remark Code When Used
7 - Shift Coverage
Used for part-time and intermittent nurses entitled to night
differential for night hours worked, and non-nurses entitled
to night differential under title 5 authority for pre-scheduled
RG hours from 6:00P to 6:00A. This indicator is also used
when posting Regular Unscheduled (RG) hours for part-
time WG employees entitled to shift differential for OT/RG
hours worked.
8 - OT While in Travel Status
Used for title 5 FLSA non-exempt employees when the
employees are entitled to overtime pay while in transit
outside scheduled tours on scheduled workdays. This
code is also used if the employees are required to travel
during normal tour hours on a day off. NOTE: Travel
status is time in transit; not all time on a travel event. (Use
OPM reference link for travel time as hours of work under
title 5 authority)
9 - OT/CT on Premium T&L
Used for all employees who are entitled to Saturday and
Sunday premium but not night differential.
11- Pre-Scheduled
Used for GS employees (including health care workers
and hybrid employees who are not authorized all premium
pay under title 38) when OT/RG has been scheduled in
advance of the work week and employees should receive
night differential during regularly scheduled premium hours
worked (6:00P-6:00A).
12 - Tour Coverage
Used for full-time and part-time nurses and title 38 Hybrid
employees authorized all premium pay under title 38. It is
used when employees are called back to work outside of
scheduled hours and are entitled to a minimum of two
hours overtime, plus, for time actually worked, are entitled
to night differential, and, if applicable, weekend premium
pay. This code may also be used for overtime work
attached to a regular tour without regard to the two hour
minimum overtime entitlement when there is also
entitlement to night differential premium, and, if applicable,
weekend premium pay.
13 - CB - Non-Premium T&L
Used for all employees called back to work for less than
two hours who are due a minimum of two hours of
overtime pay when there is no entitlement to night
differential or to weekend premium during the overtime
work period.
14 - CB - Premium T&L
Used for employees called back to work for less than two
hours who are due a minimum of two hours overtime pay
and, for time actually worked, are due weekend premium
pay and no night differential.
15 - Compensatory Time-No
Remarks I
Used when no premium pay is due with compensatory
time earned in lieu of overtime.
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ETA Time Remark Code When Used
17 - OT/CT With Premiums
Used for all employees who are entitled to receive
weekend premium under title 38 authority and/or night
differential for hours between 6:00P and 6:00A. All
Saturday/Sunday hours posted with this code will receive
Saturday/Sunday premium and all hours posted with this
code between 6:00P and 6:00A will receive night
differential. For night differential entitlement under title 5
use only for pre-scheduled night hours worked.
Figure 6F-4: ETA Special Tour Indicators (Revised)
When creating tours with special features such as tours with standby hours and scheduled
overtime, the hours which reflect these special features need to have the special tour indicator
placed in the code field. Typing a "?" in the code field will give a list of the special tour
indicators. Following are definitions of the tour indicators:
ETA Special Tour Indicator When Used
1 - Scheduled Overtime
Used to indicate that a segment of overtime is part of the
employee's normal tour of duty. By having this overtime
established as part of the tour, this automatically entitles the
employee to night differential pay for hours falling within the
night differential time frame.
2 - Scheduled
Compensatory Time
Used to indicate that a segment of compensatory time is part of
the employee's normal tour of duty. By having compensatory
time established as part of the tour, this automatically entitles
the employee to night differential compensation for hours falling
within the night differential time frame.
4 - Standby
Used for General Schedule and Per Annum Employees of the
Veterans Canteen Service, by having the standby tour indicator
established, this ensures that an employee who is officially
scheduled to be on standby outside of his/her regularly
scheduled duty hours is entitled to receive standby premium
pay.
5 - On-Call
Used for Nurses and General Schedule Employees Subject to
On-Call provisions of title 38, by having the on-call tour
indicator established, this ensures that an employee who is
officially scheduled to be on call outside of his/her regularly
scheduled duty hours shall receive pay for each hour of on-call
duty, except for such times as he/she may be called back to
perform overtime work, at a pre-determined rate of his/her
overtime pay. When called back to perform overtime work, an
employee will receive overtime pay in accordance with VA
Handbook 5007 Part V, Chapter 2. On-call pay will be
suspended during the period of actual overtime duty.
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ETA Special Tour Indicator When Used
6 - SHIFT 2
Used for Wage Employees, Non Appropriated Fund and Retail
Clerical and Administrative Employees of the Veterans
Canteen Service, and Purchase and Hire Employees, this tour
indicator must be used when creating a tour for employees who
are entitled to Shift 2 differential. For the Shift 2 differential to
be computed, this tour indicator must be used when creating
the tour. For example, if a wage employee has a scheduled
tour from 11:30 a.m. to 8:00 p.m., with no tour indicator
specified, Shift 2 differential will not be computed (or reported)
for this employee. However, if this tour is created with a Shift 2
tour indicator, Shift 2 differential will be computed and reported
as appropriate.
7 - SHIFT 3
Used for Wage Employees, Non Appropriated Fund and Retail
Clerical and Administrative Employees of Veterans Canteen
Service, and Purchase and Hire Employees, this tour indicator
must be used when creating a tour for employees who are
entitled to Shift 3 differential. Per the FWS Operating Manual
section S8-4c and 5 U.S.C. 5343, these employees are entitled
to pay at a scheduled rate plus a differential of 10 percent of
the scheduled rate for regularly scheduled non-overtime work
when a majority (five or more of the regularly scheduled eight-
hour shift) occurs between 11:00 p.m. and 8:00 a.m. For the
Shift 3 differential to be computed, this tour indicator must be
used when creating the tour. For example, if a wage employee
has a scheduled tour from MID to 8:30 a.m. with no tour
indicator specified, Shift 3 differential will not be computed (or
reported) for this employee. However, if this tour is created
with a Shift 3 tour indicator, Shift 3 differential will be computed
and reported as appropriate.
8 - No Premium Pay
Used when no night differential or Sunday premiums are to be
paid for this segment. It is particularly useful for educational
tours for General Schedule or Wage Grade employees where
the hours are for the convenience of the employee.
C. Systems Premium Pay Recognition and PAID/DCPS Discrepancy Correction
Employee authorization for premium pay under title 38 is found on page 2 of the Pay
Rates and Appointment Screen in DCPS. The DCPS record entitlement indicators need
to match the PAID premium pay code description if applicable.
Retroactive change to PAID PPCs is submitted only with a current pay period effective
date. The workbook, Figure 6F-5: Title 38 Indicator Excel Worksheet, must be
completed and submitted to Payroll and HR Systems Service (PHRSS) after opening a
service request using the automated Customer Service Form16 for earlier retroactive
16 Only available within VA.
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change. Once a PHRSS representative identifies their assignment to your case, submit
the completed form by encrypted e-mail.
Figure 6F-5: Title 38 Indicator Excel Worksheet
After retroactive change is updated in DCPS, payment processing may require VA local
payroll adjustment of timecard data in DCPS to match entitlement recognized in the
certified VA timecard record for each retroactive pay period affected.
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APPENDIX G: DEBT MANAGEMENT OVERVIEW.
VA will aggressively pursue the collection of all employee debts while ensuring the
employee is advised of his or her due process rights. VA and the Defense Finance and
Accounting Service (DFAS), as VA’s payroll provider, will adhere to requirements in 5
C.F.R. Part 550, Subpart K, Collection by Offset from Indebted Government Employees.
Coordination of information between VA and DFAS is required to account for employee
debt and to process associated salary offset for current employees.
The Department of the Treasury maintains an online listing of several sources of
Federal agency debt collection requirements at
http://fms.treas.gov/debt/regulations.html. VA debt policy is under 38 CFR §§1.900
through 1.953 and in Office of Financial Policy (OFP) Volume XII, Debt Management.
VA debt collection requirements affecting employee salary entitlement is under OFP
Volume XII, Chapter 4, Employee Debts, and under Chapter 10, Salary Offset for
Federal Employees Indebted to U.S.
THE CONTENTS OF THIS APPENDIX INCLUDE:
A. Salary Offset Requirement
B. Debt Billing
C. Submission of Debt Information to DFAS
D. Debt Inquiry Response
E. Installment Agreement
F. Waiver and Hearing Requests
G. Health Insurance Premium Debt
H. Debt upon Separation or Transfer
I. Financial Policy Debt Management Chapters
The appendix includes information on:
DD Form 2481, Appendix G-1
Instructions for Completing a DD Form 2481 for Offset of Travel Card Debt,
Appendix G-2
VA Notice of Indebtedness (NOI), Notice of Rights and Obligations, Appendix G-3
A. SALARY OFFSET REQUIREMENT
All Federal agencies are required to issue a written Notice of Indebtedness (NOI) to the
employee explaining the details and amount of debt, and advise the debtor of the
required timing of repayment options for paying off the debt, including the right to
request a hearing and waiver of the debt, or respond to the NOI under 5 USC §5514.
OFP Volume XII, Chapter 1, VA Debt Collection Standards, Appendix A, lists examples
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of approved VA NOI form letters. Fillable forms are available at
http://www.va.gov/vaforms/.
DFAS will issue an NOI for debt resulting from routine processing of personnel or
timekeeping corrections.
1. Employees will be provided an NOI prior to involuntary offset except for the following
debts:
a. Exceptions under 5 CFR §550.1104(c) 4 include:
1) Any adjustment to pay arising out of an employee's election of coverage or a change
in coverage under a Federal benefits program requiring periodic deductions from pay, if
the amount to be recovered was accumulated over four pay periods or less;
2) A routine intra-agency adjustment of pay that is made to correct an overpayment of
pay attributable to clerical or administrative errors or delays in processing pay
documents, if the overpayment occurred within the four pay periods preceding the
adjustment and, at the time of such adjustment, or as soon thereafter as practical, the
individual is provided written notice of the nature and the amount of the adjustment and
point of contact for contesting such adjustment;
3) Any adjustment to collect a debt amounting to $50 or less if, at the time of such
adjustment or as soon thereafter as practical, the individual is provided written notice of
the nature and the amount of the adjustment and a point of contact for contesting such
adjustment.
b. The VA facility CFO may authorize offset of debt from final pay when future
collection may be jeopardized. At the time of the offset, the VA local payroll office
and/or fiscal office will provide written notice of the nature and amount of the debt and a
point of contact for contesting the debt. Refer to OFP Volume XII, Chapter 4, Employee
Debts, Paragraph 040502 B.2.c. for more information.
2. The amount of Federal debt offset from salary payments will normally be limited to
15 percent of earnings after required deductions, unless the employee agrees to a
higher rate of payment. Examples of exceptions include, but are not limited to, offset to
recover:
An advance salary or travel payment;
Health insurance premiums under 5 CFR 890.502(b)(2)(ii);
A debt balance from a final salary payment; and
IRS debt subject to wage levy.
Refer to OFP Volume XV, Chapter 4, Payroll: Deductions, Appendix C, VA Order of
Precedence, for a list of required deductions affecting pay subject to offset.
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B. VA DEBT BILLING
Once an employee debt has been validated as a debt not established by DFAS, the VA
local payroll office and/or fiscal office will promptly issue the NOI. The following
circumstances require a VA billing notice prior to submission of DD Form 2481 to DFAS.
Payroll debt for pre-conversion pay periods (periods that precede DFAS payroll
processing for the employing VA facility);
Payroll debt not established by DFAS processing; or
Non-payroll debt to VA.
VA will issue an NOI for debt discovered after employee separation, which would no
longer include DFAS involvement.
C. SUBMISSION OF DEBT INFORMATION TO DFAS
1. The VA local payroll office will provide the following information affecting existing
DFAS debt records through remedy or imaging functions to DFAS:
Detail of payments received through the agent cashier (Include a copy of the Field
Service Receipt or a credit/debit card payment receipt);
Authorized employee repayment agreements; and
Any waiver or hearing determination for a debt record established in DCPS.
2. Submission of DD Form 248117
The VA local payroll office will submit a completed DD Form 2481 with required
supporting documents to DFAS for debt billed by VA. See Appendices G-1 and G-2 for
instructions.
Note: The Veterans Canteen Service (VCS) credit practice requires a written employee
agreement to offset the unpaid balance of employee purchases from final salary. A
completed DD Form 2481 will be submitted as early as possible in the employee’s final
pay period to facilitate debt offset to the extent funds are available. VCS will bill ex-
employees for a VCS debt balance remaining after final pay processes.
D. DEBT INQUIRY RESPONSE
The VA local payroll office acts on behalf of both VA and the employee to promptly
correct pay and debt errors and to comply with VA debt collection requirements. Payroll
17 DD Form 2481 is not used to establish routine payroll debt. DCPS generates routine debt records
automatically following change to timecard or personnel records.
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will request a copy of the DFAS debt notice from the employee if needed. Inquiries
regarding debt offset for non-VA debt should be referred to the applicable agency, i.e.
Treasury Department or Internal Revenue Service.
A debt resulting from an erroneous change requires corrective action to the employee
record. A debt offset remedy ticket is required upon correction of an error where
payment generated from the correction should be applied to the associated debt. The
remedy ticket will be submitted in the same pay period the corrective action processes
in DCPS.
The Federal salary offset requirement (5 USC §5514) for notice prior to salary offset
does not apply when an employee receives an overpayment of salary that is less than
$50 or when there is a correction of routine pay errors that occurred within the prior four
pay periods. In these situations, the Remarks section of the employee’s Leave and
Earnings Statement (LES) provides brief information regarding debt offset along with a
DFAS customer service phone number for inquiry. These inquiries are routinely
redirected to a VA facility contact in payroll or human resources. VA local payroll office
response to an employee inquiry regarding LES notice for such debt should include the
offer of a copy of the notice of rights and obligations provided on a blank VA
Form FL4-520f, Immediate Offset Employee Salary, or another notice applicable to
the debt circumstance. See appendix G-3 for the VA Form FL4-520f notice and for
information to access other debt notice forms. Refer to OFP Volume XII, Chapter 1, VA
Debt Collection Standards, Paragraph 010502 A for additional information on
requirements for the initial NOI.
E. INSTALLMENT AGREEMENT
The Chief of the Finance Activity may agree to an installment repayment plan to recover
an employee debt. Arrangements to pay by installments should provide for complete
liquidation within a reasonable time, considering the size of the debt and the debtor’s
ability to pay.18 Repayment plans should normally not extend beyond three years.
Installment payments of less than $25 per pay period, or $50 a month, will be
acceptable only in the most unusual circumstances.
A completed VA Form 5655, Financial Status Report, may be needed along with any
request for repayment at a rate lower than 15 percent of earnings after required
deductions. Although completion of the form is encouraged to properly determine
financial status, disclosure and signature on the form is voluntary.
DFAS forms for Voluntary Repayment Agreement (VRA) are included with the debt
notice. Employees may submit a DFAS VRA form, VA Form 1100, Agreement to Pay
Indebtedness, or another written agreement signed by the employee and approved by
the VA Fiscal Officer to document the employee installment deduction agreement.
18 Per 38 C.F.R. §1.914, Collection in Installments.
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F. WAIVER AND HEARING REQUESTS
1. The VA local payroll office will:
a. Immediately upon receipt of the employee’s written request for waiver or hearing and
the associated NOI, copy and forward the original employee request and a copy of the
NOI to the fiscal office responsible as designated under facility policy or CFO direction.
b. When received within 30 days of the NOI, for immediate suspension of collection
activity, copy the employee waiver request to DFAS under a Debt Waiver remedy ticket,
and copy a request for hearing to DFAS under a Debt Hearing remedy ticket (for debt
records established in DCPS that are not already fully recovered). For employee debt
tracked in VA accounting systems, copy notice of the employee waiver or hearing
request to Accounts Receivable.
c. Update the status through remedy for any change. Where the status of suspended
VA debt is not updated at least every six months, DFAS will remove the suspension to
begin or resume normal collection from current salary.
2. Waiver Authority
a. Erroneous Payments. VA authority to render a decision on a waiver request for an
erroneous payment of pay or allowances under 5 U.S.C. §5584 is granted to the
Committees on Waivers and Compromises (COWC) by 38 CFR §§1.955(a)(1),
1.956(a)(3), and 1.963a. The Committees that consider such waiver requests have
been centralized into three committees located at the Pension Maintenance Centers
(PMC) in St. Paul, Milwaukee, and Philadelphia VA Regional Offices. Communication
with the Regional Office COWC should be directed through the station’s fiscal officer.
Committee Addresses:
Philadelphia VA Regional Office and Insurance Center (VAROIC)
Attn: Committees on Waivers and Compromises
5000 Wissahickon Avenue
Philadelphia, PA 19101
St. Paul VA Regional Office
Attn: Committees on Waivers and Compromises
1 Federal Drive
Fort Snelling
St. Paul, MN 55111-4050
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Milwaukee VA Regional Office
Attn: Committees on Waivers and Compromises
5400 West National Avenue
Milwaukee, WI 53214
b. Breach of Contract. The office or individual responsible for waiver determination, if
applicable, on debt resulting from a breach of contract can vary depending on contract
coverage and other policy direction. Local Human Resources and/or Regional Counsel
may provide assistance to the CFO or the station’s fiscal officer. Following is one of the
requirements for Recruitment and Relocation Incentive waiver requests as explained in
VA Handbook 5007, Part VI, Chapter 2.
…Requests for waivers will be submitted, through channels, to the official or
representative who authorized the incentive. All cases involving unsatisfied
incentives which were approved in VA [Central Office (VACO)] will be routed through
channels to [the Office of Human Resources Management-Labor Relations (OHRM-
LR)] (055) for technical review prior to submission to the approving official.
3. Refer to OFP Volume XII, Chapters 1B, Waiver of Debts, and 1D, Salary Offset for
Federal Employees Indebted to U.S., section 010502 D., Procedures Related to
Hearings, for additional waiver and hearing information.
G. HEALTH INSURANCE PREMIUM DEBT19
1. VA local payroll offices will:
a. Review the Prepaid Health report, form MEPH in Roger Software Development
(RSD) each pay period to track health insurance premiums advanced due to insufficient
pay or LWOP.
b. Notify the local Human Resources office upon initial advance of health insurance
premiums for an employee to facilitate employing office notification required by OPM.
c. Answer employee inquiries and assist accounting staff as needed through
investigation of health benefit debt and associated recoveries and adjustments. This
activity may require research of enrollment history, the DCPS master employee
deduction record, pay period deduction record of health insurance transactions, and
additional RSD reports including the Repaid FEHB report, form MEQH, and the
Negative Prepaid FEHB report, form MEQI.
19 This information does not apply to other health related deductions or allotments such as those for
separate dental and/or vision insurance plans, long term care, flexible spending accounts or health
savings accounts.
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Note: Health Insurance policy affecting payroll activity is under OFP Volume XV,
Chapter 4, Deductions, Paragraph 040502 D. Transaction inquiry assistance is
available to VA local payroll offices through VAFSC Payroll Support Tier 1 in Outlook.
2. Health insurance debt recovery will comply with OPM requirement in 5 C.F.R.
§§890.103(e) and 890.502(b) (2) (ii). Once an employee’s earnings resume following a
period of insufficient pay, employee debt for health insurance contributions will be
deducted at the minimum rate of an unpaid pay period’s premium each pay period (in
addition to current health insurance premiums) until the debt is paid in full. An
employee may request deductions for overdue premiums at a higher rate. Unpaid
contributions resulting from retroactive enrollment correction are subject to the same
minimum installment collection process following billing notice. Employees who repay
premiums via cash or check through the agent cashier are not eligible for the pre-tax
benefit.
H. DEBT UPON SEPARATION OR TRANSFER
1. Federal Employment Ended (non-retirement), and Transfer to Another Federal
Agency Not Paid through DFAS. DFAS will forward VA unpaid debt records to the FSC
for distribution to the last employing VA facility following employee separation. Upon
receipt, VA local payroll offices will forward the DFAS “out-of-service” debt record to the
local fiscal department for collection action.
2. Retirement. Payroll debt records for retired VA employees will be forwarded directly
by DFAS to OPM or to a Non-Appropriated Fund (NAF) retirement administrator if
applicable.
3. Transfer to Another VA facility. Debt records remain active with the employee
record in DCPS. Debt recovered after transfer will be credited to the VA facility (activity)
where the debt originated.
4. Transfer to Another Federal Agency Paid through DFAS. Debt records remain
collectible by DFAS on behalf of VA while DFAS continues to process employee salary
payments. VA debt recovered after transfer will be credited to the VA facility (activity)
where the debt originated.
Refer to OFP Volume XV, Chapter 1, Overview, Appendix I, Guidance on Employee’s
Clearance from Indebtedness, for VA payroll procedures applicable to separation notice
requirements and to OFP Volume XII, Chapter 4, Paragraphs 040502 b and c regarding
debt offset from final salary.
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I. FINANCIAL POLICY DEBT MANAGEMENT CHAPTERS
Additional details on VA financial policies and procedures for debt collection activities
are described in the following chapters of OFP Volume XII, Debt Management:
Chapter 1A, Interest, Administrative Costs and Penalty Charges
Chapter 1B, Waiver of Debts
Chapter 1C, Compromise of Debts
Chapter 1D, Salary Offset for Federal Employees Indebted to U.S.
Chapter 1E, Treasury Offset Program and Treasury Cross-Servicing
Chapter 1F, Administrative Wage Garnishments
Chapter 1G, Referrals for Enforced Collection (Litigation)
Chapter 1H, Suspension of Collection Action
Chapter 1I, Termination of Collection Action and Debt Close Out
Chapter 1J, Reporting Discharge of Indebtedness to IRS
Chapter 1K, Records, Reports, and Accounting
Chapter 2, Federal Accounts Receivable
Chapter 3, Freedom of Information Act Fees
Chapter 4, Employee Debts
Chapter 5, Medical Debts
Chapter 6, Benefit Debts
Chapter 7, Vendor Debts
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APPENDIX G-1: INFORMATION REQUIRED TO COMPLETE A DD FORM 2481
The following information is required to complete a DD Form 2481, Request for
Recovery of Debt Due The United States by Salary Offset
1. Paying Office Identification
a. Name: DFAS Indianapolis, Civilian Pay ZPV
b. Address: 8899 East 56th Street
Indianapolis, IN 46249-1900
c. Contact Name: Indianapolis Customer Service Phone Team
d. E-Mail Address: Blank
e. Telephone No: (800) 538-9043 or (317) 510-0580 option 2
Employee Identification
f. Name: VA Employee Name
g. Address: LEAVE BLANK
h. Date of Birth: LEAVE BLANK
i. Social Security Number: VA Employee’s Full SSN
2. Debt Information
a. Reason for Debt: Debt Due VA
b. Date Right to Collect Accrued (YYYMMDD): Pay Period End Date
c. Debt Identification Number: Bill for Collection Number or the first three
characters of employee’s last name and last four of VA employee’s SSN
d. Original Debt Amount: NET Amount
e. Number of Installments: If Voluntary Debt, list number of payments and
payment amount; if Involuntary Debt, payments will be at 15%
f. Interest Due: LEAVE BLANK
g. Penalty Due: LEAVE BLANK
h. Administrative Cost: LEAVE BLANK
i. Total Collection to be Made: Total Net Amount
3. Due Process. Leave this section Blank
4. Creditor Component Information
a. Name: VA Sta #
b. Address: LEAVE BLANK
c. Contact Name: Name of VA Payroll Tech
d. E-Mail Address: VA Payroll Tech E-mail Address
e. Telephone: VA Payroll Tech Phone Number
f. Accounting Classification: VA Appropriation Number, VA Pay Techs should
refer to the number listed in QUERY Screen 210 in the field FMS Fund
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Code and use the first four numbers with the appropriate year, i.e., 90160
(9 = current year; 0160 = FMS Code)
g. Document Number: Bill for Collection # or the first three characters of
employee’s last name and last four of VA employee’s SSN
h. Certifying Official
1. Signature: VA Certifying Official’s signature
2. Date Signed (YYYMMDD): Date form is signed by VA Certifying
Official
3. Title: Certifying Official’s Title
4. Telephone: Certifying Official’s Phone Number
5. VA Accounting Office
a. Office Symbol and Processor’s Name: VA Supervisor
b. E-Mail Address: VA CSR SUPERCSR
c. Telephone:
d. Date (YYYMMDD):
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APPENDIX G-2 INSTRUCTIONS FOR COMPLETING A DD FORM 2481 FOR
OFFSET OF TRAVEL CARD DEBT.
Following are instructions for completing a DD Form 2481, Request for Recovery of
Debt Due the United States by Salary Offset, for VA Travel Card Debt.
1. PURPOSE OF THIS FORM: To request recovery of a debt by salary offset for a
debtor who has not responded to a demand for payment of their government-issued
travel charge card account, requested a hearing, or refunded the creditor component’s
proposed installment deductions. This form also certifies that the debtor’s due process
has been completed.
2. COMPLETING THIS FORM: Items 1 to 4 are completed by the station/facility
A/OPC. Item 5 is completed by the station/facility payroll office. Item 6 is completed by
DFAS accounting office.
Item 1. Paying Office Identification: Name and address of DFAS Paying Office
responsible for processing the salary offset. Include a contact person and e-mail
address and telephone number for this individual.
Example:
a. Name: DFAS Indianapolis, Civilian Pay ZPV
b. Address: 8899 East 56th Street
Indianapolis, IN 46249-1900
c. Contact Name: Enter contact name
d. E-Mail address: Enter email address
e. Telephone No.: 1-800-538-9043; Option #2
Item 2. Employee Identification: Name, address, date of birth and social security
number for the individual for whom a salary offset is requested.
Item 3. Debt Information: Specific information and justification of debt. Salary offset
payments to U.S. Bank will be made by check. Each delinquent employee will have an
individual check sent to the bank by DFAS. In order for salary offset payments to reach
U.S. Bank, the information below must be listed in the appropriate boxes.
3a. Reason for Debt: Stations are strongly encouraged to highlight this section upon
printing to ensure DFAS mails payment directly to U.S. Bank and not back to the
station. For a VA Travel Charge Card, this should read:
DFAS PLEASE MAIL PAYMENT DIRECTLY TO U.S. BANK, NOT TO VA
STATION:
U.S. Bank - Attn: Tamara Lockridge
9321 Olive Blvd, St Louis, MO 63132
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3b. Date Right to Collect Accrued: Enter the date the account was eligible for salary
offset.
3c. Debt Identification Number: First 3 characters of VA Employee’s last name and
last 15 digits of the employee’s U.S. Bank account number.
The VA Employee’s 16 digit account number on the U.S. Bank Travel Card will be
included in this box in order for payment to be made in the correct depository
account. Important: This field can only take 3 alpha characters and 15 digits.
So enter the first 3 letters of the employee’s last name, then drop the first digit
of their account number and enter the last 15 digits of the employee’s U.S.
Bank account number.
For example: John Oweyou’s U.S. Bank account number is 4486 0001 0002 00003.
You must drop the first digit and enter OWE486000100020003 in Box 3c.
3d. Original Debt Amount: NET Amount of Debt
3e. Number of installments: LEAVE BLANK
3f. Interest Due: LEAVE BLANK
3g. Penalty Due: LEAVE BLANK
3h. Administrative Cost: LEAVE BLANK
3i. Total Collection to be Made: Total Net Amount due to the bank
3j. Commence Deductions On: Pay period begin date
Voluntary Salary Offset payments will provide bi-weekly payment amounts of 15
percent unless the employee volunteers to offset additional funds.
Involuntary Salary Offset payments will be processed at 15 percent of the
employee’s disposable income.
Item 4. Due Process: Annotate the appropriate Due Process given to the individual
for whom a salary offset is requested. For VA Travel Charge Card, annotate the date
of the VA Salary Offset Letter e-mailed or sent to the employee. Box 4a should
always be checked with the date action taken inserted into column (1). Columns (2)
and/or (3) should be checked as appropriate.
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Item 5. Creditor Component Information: To be completed by the payroll office.
Name and address of organization initiating collection. Include contact name, e-mail
address and telephone number, and accounting classification.
IMPORTANT: Please ensure Payroll and DFAS are aware that offset payments are
mailed by DFAS directly to U.S. Bank, not to the VA station.
Item 6. DFAS Accounting Office: To be completed by the DFAS accounting office.
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APPENDIX G-3 NOTICE OF INDEBTEDNESS (NOI), NOTCE OF RIGHTS AND
OBLIGATIONS
Refer to OFP Volume XII, Chapter 1, VA Debt Collection Standards, Appendix A, which
lists examples of approved VA NOI form letters. Fillable forms are available on the VA
Intranet at http://vaww4.va.gov/vaforms/.
A sample notice for VA Form FL4-520f is as follows:
Your debt has already been offset from a recent salary payment. If it is
subsequently determined that you do not owe this debt, then any amounts
deducted will be promptly refunded to you.
NOTICE OF RIGHTS: If you do not believe you owe this debt or you think the amount is
incorrect, you have a right to dispute the debt. You also have the right to request waiver
of the debt. Waiver means you will not have to pay the debt. Additional information
concerning these rights [follows].
Please read it carefully.
Interest and other late payment charges will not be assessed on this indebtedness
because the entire amount of the debt has been recouped by the offset from your recent
salary payment.
NOTICE OF RIGHTS AND OBLIGATIONS
DEBTS OWED THE UNITED STATES GOVERNMENT: The law requires that the
Department of Veterans Affairs (VA) collect debts owed the government. Any future
Federal salary, lump sum or retirement payments, insurance dividends or other
payments made by VA or any other Federal agency may be withheld. Your debt may
also be referred to the Treasury Department for collection.
RIGHT TO DISPUTE THE EXISTENCE OR AMOUNT OF THE DEBT: In order to
dispute the existence or amount of the debt, you must submit your dispute in writing.
You should explain to the extent that you can, why you believe you do not owe the debt
or why the amount is incorrect.
RIGHT TO REQUEST WAIVER OF THE DEBT: Under certain circumstances, we can
waive the debt. This means that you will not be required to pay the amount owed. To
be considered for waiver, you must write to us and request one. You should explain
why you believe that the erroneous payment or overpayment, which created your
indebtedness, is not your fault. You may file a waiver request at any time within three
years of the date of discovery of your indebtedness.
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APPENDIX H: MILITARY RESERVISTS’ DIFFERENTIAL PAY
A. Overview.
This appendix provides payroll processing guidance for pay entitlement under 5 U.S.C
§5538, entitled “Nonreduction in pay while serving in the uniformed services or National
Guard,” which provides differential payments to eligible Federal civilian employees who
are members of the Reserve or National Guard (commonly referred to as “reservists”)
called or ordered to active duty under contingency operations as defined in 10 U.S.C.
§101(a) (13) (B).
This law is codified in 5 U.S.C. §5538 which was added by section 751 of the Omnibus
Appropriations Act, 2009 (Public Law 111-8, March 11, 2009), and later amended by
section 745 of the Consolidated Appropriations Act, 2010 (Public Law 111-117,
December 16, 2009). Section 5538 became effective on the first day of the first pay
period beginning on or after March 11, 2009 (i.e., March 15, 2009, for employees on the
standard bi-weekly payroll cycle). Payment of reservist differential is effective
retroactively to the pay period beginning March 15, 2009, for qualifying periods on or
after that date. Payment cannot be made for periods prior to March 15, 2009.
Under section 5538, VA must provide a payment (hereafter referred to as a “reservist
differential”) equal to the amount by which an employee’s projected civilian basic pay for
a covered pay period exceeds the employee’s actual military pay and allowances
allocable to that pay period (refer to Appendix H-2 for civilian basic pay and military pay
and allowances definitions). The reservist differential is not payable for periods during
which the employee is receiving civilian basic pay for performing work, is using civilian
paid leave or other paid time off, or is in a military non-pay status (military non-pay
status is generally conduct-related, i.e., confinement, desertion, Absent Without Leave
(AWOL)).
Local HR will determine employee eligibility for reservist differential (refer to HR
Management Letter (HRML) 05-11-05). Once HR determines employee eligibility, local
payroll staff will review both VA and military pay information to determine if a payment is
due to the employee. This appendix will provide information on how to calculate and
process a reservist differential payment through VA’s payroll provider.
B. Initial Qualifying Determination by Local HR.
The local HR office will make the initial determination on whether the employee and the
military orders qualify for the reservist differential entitlement (refer to HRML 05-11-05).
Local HR will make its initial determination based on the following:
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1. Entitlement.
a. Reservist Differential is payable to eligible Federal civilian employees who are
members of the Reserve or National Guard and who are ordered or called to active duty
in the uniformed services under a provision of law referred to in 10 U.S.C. §101(a)
(13)(B). During this absence the employee must meet both of the following conditions:
serving on active military duty, and
entitled to reemployment rights under the Uniformed Services Employment and
Reemployment Rights Act (USERRA) under 38 U.S.C. §43.
b. An individual who separates from Federal service would lose any eligibility for the
reservist differential effective on the date of separation because no civilian basic pay
would otherwise be payable to a separated employee. (5 U.S.C. §5538(a) (1).)
2. Qualifying Periods.
A reservist differential under section 5538 is payable to an eligible employee during a
qualifying period during which the employee meets both of the following conditions:
The employee is absent from a Federal civilian position in order to perform active
duty in the uniformed services pursuant to a call or order to active duty under a
provision of law referred to in 10 U.S.C. §101(a)(13)(B), as described in Part 1 of
Appendix D of OPM's Policy Guidance, and is serving on such active duty; and
The employee is entitled to re-employment rights under the Uniformed Services
Employment and Reemployment Rights Act (USERRA - 38 U.S.C. §43) for such
active duty.
C. Preliminary Pay Determination by Local Payroll.
The amount payable for reservist differential is the portion of the employee’s VA civilian
basic pay that exceeds their military pay and allowances during periods in which the
employee is not in a civilian pay status. The employee is not entitled to reservist
differential pay if their military pay and allowances exceeds their VA civilian basic pay.
In addition, reservist differential is not payable for any period in which an employee
receives civilian basic pay for performing work or using paid civilian leave or other paid
time off.
Local payroll staff can provide a preliminary determination on whether the reservist’s VA
civilian basic pay is greater than their military pay and allowances. The employee will
need to provide a current military leave and earnings statement (LES) (refer to
Appendix H-1) along with any projected military pay entitlements they expect to receive
while they are deployed.
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The following documents are included in this appendix to assist local payroll with
calculations:
Appendix H-1: How to Read a Military LES;
Appendix H-2: Civilian Basic Pay and Military Pay and Allowances Definitions; and
Appendix H-3: Excel Workbooks for Hourly and Daily Pay Calculations.
1. Employees with an Hourly Schedule.
a. VA civilian hourly rate of pay calculation: Take employee’s annual salary and add
locality pay and/or market pay if applicable, then divide by appropriate year divisor
(2080, 2087, 1872, 1248, 275620) based on employee position; the total equals the VA
civilian hourly rate of pay.
b. Estimated military hourly rate of pay calculation: Add all applicable military pay and
allowances listed on the military LES with any additional pay and/or allowances
provided by the employee, then divide by number of days the military pay is for (if pay is
for a full month, the divisor is 30); the result equals the military daily rate of pay. To
obtain the military hourly rate of pay, divide the military daily rate of pay by 8 (normal
hours in one day).
c. Preliminary Reservist Differential Pay Determination:
1) To find the difference in pay, subtract the estimated military hourly rate of pay from
the VA civilian hourly rate of pay.
2) If the VA civilian hourly rate of pay is greater than the estimated military hourly rate
of pay, then the employee will be entitled only to the portion of VA pay that is greater
than their military pay and allowances.
3) If the VA civilian hourly rate of pay is less than the estimated military hourly rate of
pay, then the employee earns more with the military and, as such, there is no
entitlement to reservist differential pay. However, the employee is entitled to submit
their official military LESs they receive after their deployment and request an official pay
comparison.
2. Employees with a Daily Schedule (Full-time title 38 Physicians/Dentists).
20 Annual divisor number is based on the employee’s type of position and/or schedule: 2080 for Title 38,
2087 for title 5, 1872 for nurses approved to work the 36/40 schedule, 1248 for Baylor Plan, and 2756 for
firefighters with an uncommon tour of duty.
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a. VA civilian daily rate of pay: Take employee’s annual salary and add market pay,
then divide by appropriate year divisor (364) based on employee position; total equals
VA civilian daily rate of pay.
b. Estimated military daily rate of pay: Add all applicable military pay and allowances
listed on the military LES with any additional pay and/or allowances provided by the
employee, then divide by number of days the military pay is for (if pay is for a full month,
the divisor is 30); the result equals the military daily rate of pay.
c. Preliminary Reservist Differential Pay Determination:
1) To find the difference in pay, subtract the estimated military daily rate of pay from the
VA civilian daily rate of pay.
2) If the VA civilian daily rate of pay is greater than the military daily rate of pay, then
the employee will be entitled only to the portion of VA pay that is greater than their
military pay and allowances.
3) If the VA civilian daily rate of pay is less than the military daily rate of pay, then the
employee earns more with the military and, as such, there is no entitlement to reservist
differential pay. However, the employee is entitled to submit their official military LESs
they receive after their deployment and request an official pay comparison.
3. Required Action for Preliminary Reservist Differential Pay Determination Findings.
a. Local payroll must notify local HR and the employee in writing of the preliminary
reservist differential pay estimates. The employee must be informed that the initial
pay determination is only an estimate21. If the employee is entitled to receive
reservist differential pay, the notification must also include the name, mailing address,
e-mail address, and phone number of a local HR or payroll contact person. The
reservist will submit their official military LESs to the assigned VA contact during their
deployment.
b. The VA contact person must ensure that the military LESs are 1) date stamped for
the day VA received the LESs from the reservist, and 2) forwarded to local payroll for
processing.
c. Local HR is responsible for establishing the employee’s military furlough status
based upon the deployment date listed on the official military orders. Local HR is also
responsible for providing local payroll with a projection of the employee’s civilian basic
pay that would have been payable for each pay period within a qualifying period but for
the call to active duty. The projected rate of basic pay will be determined using those
21 The preliminary estimates for VA and Military hourly/daily rates of pay may vary based on military pay
and allowances received as well as any applicable civilian pay adjustments the employee may be entitled
to with the VA, had the employee remained in pay status.
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policies consistent with USERRA, under which employees are credited with any pay
adjustment that, with “reasonable certainty,” would have occurred but for service in the
military. The projected rate of basic pay used in computing reservist differential does
not affect an employee’s actual basic pay entitlement. Pay adjustments that should be
applied in the computation of an employee’s projected rate of civilian basic pay are:
general pay adjustments, including locality pay and special rate adjustments; within-
grade increases; career ladder promotion increases; performance-based basic pay
adjustments, and other basic pay adjustments as long as the adjustments would have
occurred with reasonable certainty. The projected adjustment takes effect at the time
the adjustment otherwise would have been made except for the call to active duty.
D. Civilian Pay, Leave Status, and Timecard Postings.
1. The receipt of a reservist differential does not affect an employee’s civilian pay and
leave status. Even though an employee may be receiving a reservist differential, OPM
considers the employee to be in a leave without pay22 (LWOP) status unless he or she
substitutes paid leave or other paid time off for specific hours. As such, Reservist
Differential payments can only be paid for periods that the employee received no VA
pay.
2. Reservist differential is not payable for post-active duty periods prior to or following
completion of an active duty assignment except for qualifying periods which fall between
March 15, 2009 and December 19, 2009, during which time the employee was entitled
to re-employment rights under USERRA.
3. There are no provisions for employees to retroactively cancel paid leave or any other
paid time off that was taken during the post-active duty period in order to receive
reservist differential payments instead.
4. Reservist differential is not payable for periods during which the employee is
receiving civilian basic pay for performing work or using civilian paid leave or other paid
time off. An employee is considered to be in a civilian pay status when using paid time
off but not when receiving reservist differential. Paid time off includes military leave,
annual leave, sick leave, excused absence, holiday time off, time off as an award,
compensatory time off, credit hours, or any other paid time off to the employee’s credit.
Employees are entitled to use their military leave as applicable. Regular military leave
under 5 U.S.C. §6323(a) provides 15 days of leave per fiscal year and additional military
leave under 5 U.S.C. §6323(b) provides 22 days of leave per calendar year. (NOTE:
Use of military leave under 5 U.S.C. §6323(b) requires the employee’s civilian pay to be
offset by the amount of military pay and allowances allocated to those leave days.)
Employees may use additional military leave or claim reservist differential, but not both,
for the same period. For example, if an employee receives civilian basic pay (through
22 Leave without pay during military furlough status is also referred to as leave without pay-uniformed
service (LWOP-US).
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paid work or paid time off) for an entire bi-weekly pay period, reservist differential
cannot be paid for that bi-weekly pay period. If an employee receives civilian basic pay
for a portion of the pay period, reservist differential is computed for the portion of the
pay period in which the employee did not receive civilian basic pay.
5. Other non-qualifying periods include any period in which an employee is placed in
military non-pay status for conduct-related reasons (e.g. AWOL, confinement or
desertion) during the qualifying active duty period. Those are non-qualifying days and
are not to be considered when computing reservist differential. If an employee is
separated from military duty for misconduct or other reasons that terminate USERRA
re-employment rights, entitlement to reservist differential would also terminate at the
time of separation. Military non-pay status dates should be listed in the Remarks of the
military LES.
6. A qualifying period may begin or end in the middle of the employee’s civilian bi-
weekly pay period, and the days before or after the qualifying period are not used in
computing reservist differential for the pay period. The computation of military pay and
allowances and projected civilian basic pay for a pay period must be based solely on
the days within the qualifying period, making it necessary to determine the days and
hours the employee would have worked during the qualifying portion of the pay period.
7. How to post the employee’s timecard for reservist differential hours/days:
a. VA’s Time and Attendance System: The local timekeeper and payroll office must
verify whether the employee has a VA timecard to post (if military furlough, LWOP-US,
has been coded by local HR, timecard postings may not be required). If the employee’s
VA timecard is available for posting, i.e., the VA timecard has been posted with partial
hours of pay (e.g., annual or military leave used), the VA timecard must reflect leave
without pay (WP) for any hours/days to which the reservist differential pay will apply.
NOTE: If the employee is within the qualifying period, any LWOP-US hours/days can
be applied towards reservist differential pay as long as the employee submits their
military LES which covers that day. For example, an employee uses the remainder of
their leave during their tour of duty and LWOP-US postings begin during that same tour
of duty (i.e., an 8 hour tour is posted as 3 hours of military leave and 5 hours of LWOP-
US), the LWOP-US hours on that day can be included in the reservist differential pay.
b. VA Payroll Provider’s Defense Civilian Pay System (DCPS): Local payroll staff must
ensure any hours/days that reservist differential pay will apply to be posted as LWOP-
US (DCPS time code of “KG”) on the employee’s DCPS timecard.
c. Additional timecard posting information:
1) Reservist differential cannot be paid for any period in which an employee receives
civilian basic pay for performing work or using paid civilian leave or other paid time off.
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2) Employees with a daily tour of duty: Any non-duty days connected to the reservist
differential pay must be posted as LWOP-US.
8. Full-time title 38 physicians and dentists are paid based on a daily basis (364 days
per year); as such, both duty and non-duty days must be included in the pay
calculations since military pay is also paid on a daily basis. The employee’s military pay
must be offset for both duty and non-duty days to prevent dual payment.
E. Reservist Differential Timecard Processing and Official Pay Comparison.
1. Payment of reservist differential is effective retroactively to the pay period
beginning March 15, 2009, for qualifying periods on or after that date. Payment
cannot be made for periods prior to March 15, 2009. Reservist differential is not
payable for post-active duty periods prior to or following completion of an active duty
assignment except for qualifying periods which fall between March 15, 2009 and
December 19, 2009, during which time the employee was entitled to re-employment
rights under USERRA. There are no provisions for employees to retroactively
cancel paid leave or any other paid time off that was taken during the post-active
duty period in order to receive reservist differential payments instead.
The amount payable for reservist differential is the portion of the employee’s projected23
VA civilian basic pay that exceeds their military pay and allowances during periods in
which the employee is not in a civilian pay status. The employee is not entitled to
reservist differential pay during any period where their military pay and allowances
exceed their VA civilian basic pay. In addition, reservist differential cannot be paid for
any period in which an employee receives civilian basic pay for performing work or
using paid civilian leave or other paid time off.
2. Before local payroll can perform the official reservist differential pay
comparison, the employee must submit their official military LES(s) to the
assigned VA local payroll or HR contact person. The employee may submit their
military LESs to the local VA payroll or HR contact each time they receive their military
LES or periodically, i.e., once per month. The employee is responsible for submitting
their military LESs to the assigned VA contact person; if the employee does not submit
23 Local HR will provide local payroll with the employee’s projected rate of civilian basic pay which will be
determined using policies consistent with USERRA, under which employees are credited with any pay
adjustment that, with “reasonable certainty,” would have occurred but for service in the military. Pay
adjustments that should be applied in the computation of an employee’s projected rate of civilian basic
pay are: general pay adjustments, including locality pay and special rate adjustments; within-grade
increases; career ladder promotion increases; performance-based basic pay adjustments and other basic
pay adjustments as long as the adjustments would have occurred with reasonable certainty. The
projected adjustment takes effect at the time the adjustment otherwise would have been made except for
the call to active duty.
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their military LES for any period during the military furlough LWOP-US status, then no
reservist differential payment will be processed.
The following documents are included in this appendix to assist local payroll with
reservist differential pay calculations, comparison of VA civilian basic pay to military pay
and allowances, and processing payment:
Appendix H-1, How to Read a Military LES;
Appendix H-2, Civilian Basic Pay and Military Pay and Allowances Definitions;
Appendix H-3, Excel Workbooks for Hourly and Daily Pay Calculations.
3. Timecard Processing and Verification.
Local payroll will:
a. Verify that the employee’s VA TA timecard is posted correctly for each pay period
that reservist differential is being processed. All hours/days that are applied to reservist
differential pay must be posted as LWOP (WP). If the entire pay period is being
processed for reservist differential and there is no VA TA timecard due to extended
military furlough (LWOP-US) being coded by local HR, no VA TA timecard will be
required.
b. Verify that the employee’s DCPS TA timecard is posted correctly for each pay period
that reservist differential is being processed. All hours/days that are applied to reservist
differential pay must be posted as LWOP-US (KG).
c. Review any holiday that falls during a pay period in which reservist differential is
being claimed. If LWOP-US is posted on the tour immediately prior to and following the
holiday, the holiday must be charged as LWOP-US in both the VA and DCPS systems.
The employee will only receive the difference of VA civilian pay that is greater than their
military pay and allowances for any holiday which falls wholly within a reservist
differential claim period.
d. Ensure that reservist differential is not applied to any hours/day in which an
employee receives civilian basic pay for performing work or using paid civilian leave or
other paid time off.
e. Ensure that reservist differential is not applied to any hours/days in which the
employee was placed in military non-pay status for conduct-related reasons, e.g.,
AWOL, confinement or desertion. Military non-pay status dates should be listed in the
Remarks section of the Military LES.
f. Provide careful review of full-time title 38 physicians and dentists who request
reservist differential, since they are paid on a daily basis. Both duty and non-duty days
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must be considered when posting VA timecards and DCPS timecards; any non-duty
day(s) which are contained wholly within a period of LWOP must be posted as LWOP.
g. Examples include:
Example 1: A full-time physician on a daily tour of duty qualifies for reservist
differential pay and returns to duty in week 2 of pay period.
Example 2: A full-time physician on a daily tour of duty qualifies for reservist
differential pay but chooses to use accrued leave during part of the pay period.
.
Department of Veterans Affairs