- Why is reconciling labor important?
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Labor expenditures make up greater than 60% of the University’s total expenses each fiscal year. Therefore the careful review of labor expenses as part of the monthly reconciliation process is critical to sound financial stewardship and is part of our system of internal controls. A manager’s timely review and approval of any compensation action, including timesheets, is a key control on labor expenses; however, that does not negate the importance of monthly reconciliation to ensure that labor expenses are appropriately allocated. In addition, monthly reconciliation is the primary compensating control when submitted hours are massed advanced without a manager’s prior approval and are paid to the employee. Note: This was UVA’s practice prior to and post Workday so that employees are paid promptly and are not negatively impacted by a manager failing to or not being able to review and approve their submitted timesheets.
Timely reconciliation of labor is particularly important on sponsored programs so that generated effort reports are correct and invoices to sponsors or draw down of funds from sponsor accounts are accurate. Note: The Office of Sponsored Programs, Post Award Department, is responsible for institutional effort reporting. For more information on effort reporting, visit their Effort Reporting References webpage; any questions should be addressed to [email protected].
- How should I reconcile labor if I am not an LD Scheduler?
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Best practice is to have the departmental LD Scheduler serve as the Examiner in the reconciliation workflow. If they choose not to serve as the Examiner (or someone else needs to be in the Examiner role), they should provide Preparers/Fiscal Contacts with the intended LD information to ensure labor charges (salary as well as one-time payments) hit the correct PTAO.
- Where can I find detailed Payroll information if I can't see it in Workday?
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For those with the EDW_P_Finance UBI responsibility, there is a Payroll Earnings Detail module in UBI Analytics (Qlik Sense). The data provided can assist you with payroll review and reconciliation, such as verifying a person was paid the appropriate amount for the correct hours and earning type(s).
For more information, refer to the Quick Reference Guide.
- Where can I see the total number of hours an employee was paid during a pay period?
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The Payroll Earnings Detail module in UBI Analytics (Qlik Sense) displays the total number of hours paid in a pay period. You may want to verify that the number of hours paid is reasonable given what you know about the employee’s position (e.g., weekly scheduled hours, student employee type, etc.).
For more information, refer to the Quick Reference Guide.
- What Workday role is required if I want to monitor detailed employee time entry (i.e., day-by-day as opposed to bi-weekly totals)?
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The UVA Time Support role will give you access the Calculated Time Block Information report in Workday. To request this role or see who in your organization might have it, contact [email protected].
For additional information about timekeeping tools, visit this webpage: https://payroll.vpfinance.virginia.edu/timekeeping-tools
- How can time entry be corrected if an employee has misreported their time?
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Direct the employee to the Correct Time Entry job aid. The corrections will flow through the next payroll cycle. Be sure to monitor the correction’s impact to Oracle Labor Distribution to ensure correct PTAOs are charged.
Note: If the correction is to change the Position that the hours were reported on, an LD adjustment will not be needed. The credit will post to the incorrect PTAO (LD assignment) and charge the appropriate Position's labor schedule (LD assignment) in the next pay cycle.
- How do I see what percentage of someone's labor is scheduled to a PTAO in Recon@?
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Labor Distribution (LD) Reports are accessed from the Summary Screen by clicking the construction worker icon under the associated "Actions" for the Project-Award combination:
The report shows the percent of effort scheduled on each Project-Award combination and should be reviewed as part of the monthly GA reconciliation process.
- What documentation is required for reconciling labor distribution charges?
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Physical documentation for labor transactions lives in the system of record (Workday) which tracks the business process steps and any related comments. There is no need to print and/or maintain this documentation outside of Workday.
- What should I do if I discover that an employee has been overpaid?
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Report the overpayment using this online form: https://payroll.vpfinance.virginia.edu/report-overpayment. Completed forms route to the Payroll team in Salesforce for triaging. For additional information, visit this webpage: https://payroll.vpfinance.virginia.edu/payroll-overpayments
- Why is my student worker's labor charging a Wages, Other (or "Non-Student") expenditure type?
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The current academic fringe benefit rate for "Wages and Other Misc. Payments" (Wages, Other) is charged whenever a student wage employee is not eligible for the Student FICA Exemption. The three most common reasons for student wages to incur fringe (i.e., be subject to FICA withholding):
The student is enrolled for less than half-time (this is the IRS limit except in a student’s final semester prior to graduation); The student is not enrolled in a UVA degree program; or The student has at least one active non-student position in Workday (eligibility determinations are appropriately made at the individual rather than the position level).The fringe rate is applied to these earnings to cover the employer portion of OASDI and Medicare (cumulatively FICA) owed to the IRS. The employee portion of FICA is withheld from the student’s paycheck.
See University policy HRM-008 or Financial Reporting & Operations’ International Taxation webpage for additional information on the application of the Student FICA and/or Non-Resident Alien exemptions respectively.