Prepays are payments for payroll deductions that are made directly by the employee to the state. This allows employees who are not working (or not earning enough to cover deductions) to maintain their insurance coverage or to continue making payments towards their loans, flex plans, or bus passes.

 When completing a Payroll Adjustment Worksheet (PAW) for a prepay, you must consider the employee’s deduction cycle, employment status, and type of insurances. Prepays are always entered using the applicable after-tax GTN, as the prepay is being paid with the employee’s after-tax dollars.

Deduction Cycle

The deduction cycle tells you on which payrolls the employee’s deductions (insurances, etc) will pull. To find the deduction cycle, go to Personnel Inquiry, then to Payroll and Tax Data (screen 7). The deduction schedule will be either M for monthly or B for biweekly.

•        Prepays for current insurances should be entered on the employee’s deduction cycle payroll.

•       Prepays for past insurances/suspended balances should be entered off-cycle (ex: if the employee is monthly, then enter the prepay on the biweekly or special payroll).

•        Prepays for current and past or future insurances should be entered on the employee’s deduction cycle payroll.

Employment Status

The employee’s status affects how CPPS pulls deductions. To find the employment status, go to Personnel Inquiry, then to Personnel Action Data (screen 3).

•         Active, Benefits, Short-Term Disability

–        CPPS pulls both employee & state shares according to employee’s deduction cycle.

–        If employee does not receive pay, employee shares will suspend.

•         Inactive, LWOP, Furlough, Terminated

–        CPPS pulls neither employee nor state shares on employee’s deduction cycle.

–        If employee does not receive pay, employee shares will not suspend.

 Employee’s Deductions

Check to see if the employee has pre-tax or after-tax deductions. For health and dental, go to Benefits Inquiry, then to Benefits Enrollment (screen 2). After the GTN, the coverage code will begin with either a T (after-tax) or a P (pre-tax).

•         After-tax Deductions

–        Prepay is entered using same GTNs as those on employee’s benefit screens. If paying for current insurances or suspended balances, no one-time deductions are necessary.

•         Pre-tax Deductions

–        You must use the matching after-tax GTNs on the PAW (see chart below). One-time deductions will be necessary on the PAW (see instructions below).

Prepayable Payroll Deductions 

Suspended Balances

•      Suspended balances are created when an employee with A, B, or S status does not receive enough pay on a deduction cycle payroll to cover deductions.

•       Not all employee-owed balances show on the suspended balance report.

–        LWOP: employee and state shares are owed by employee, but do not appear on report.

–        Cancelled advices/warrants: employee and state shares must be paid, but employee shares do not appear on report.

•     Negative amounts on the suspended balance report are prepay credits. If an employee pays for multiple pay periods, the entire prepay amount is entered as a credit on the first payroll. On the following payrolls, deductions pull against that credit amount.

Completing the PAW

Fill out all header boxes, including Schedule.

Prepayments: enter all prepay amounts using after-tax GTNs.

One-time Deductions - enter only if prepaying pre-tax deductions or long-term disability

•       LTD: while this is an after-tax GTN, CPPS will not pull the deduction automatically. Enter a one-time deduction to GTN 245 using the prepay amount and a +.

•      Pre-tax Deductions: Enter a one-time deduction to the after-tax GTN using the prepay amount and a +.

–        If the prepay is for an employee’s current pre-tax insurances, and the employee’s status is A, B, or S, you also need to zero out the regular pre-tax deduction so that the employee is not charged twice. Enter another one-time deduction, this time using the pre-tax GTN, $0.00, and an R.

On the “Reason” lines, write what the prepay is for (ex: August insurances, Suspended balances, etc.). If sending a CR or IT, write the number on the lines as well (ex: CR KAA 08RA-500).

Sign and date the “Prepared By” box.

Sending prepay money to Central Payroll

**Payments should always be sent in conjunction with a PAW. If you only send the money, Central Payroll will not know what to do with it, and if you only send the PAW, it cannot be processed until the money is received**

After collecting payment from the employee (cash, check, or money order), the agency has three options:

1. Best options:
   1. Create a CR to deposit the money into Central Payroll’s prepay account (Fund 100, Agency 998, Balance Sheet Account 2224).
   2. OR - Deposit the money into an agency account, then create an IT to transfer the money to Central Payroll’s prepay account (Fund 100, Agency 998, Balance Sheet Account 2224).
   3. When creating the CR or IT, be sure to put the employee’s name on the detail line so that Central Payroll can match the payment document to the PAW. Do not place a level 3 approval on the document – Central Payroll will do that. Send the employee’s check and a copy of the document to Treasury, and fax a copy of the CR/IT and the PAW to Central Payroll at 303-866-4138.

2. Other option: Send the payment with the PAW to Central Payroll. Central Payroll will create a CR to deposit the money into the prepay account. This is not recommended, as checks have been lost in the mail before. However, it is an accepted method of payment.