PAYROLL ACCOUNTING - RECOVERY BY CASH COLLECTION - 8593.1

This section provides accounting procedures to agencies/departments for the Payroll Accounts Receivable (PAR) recovery by cash collection.

When cash is received from the employee for the net amount overpaid, the amount collected will be applied to the receivable by debiting General Cash, Account 1101000 (Legacy Account 1110) and crediting Accounts Receivable – Abatement, Account 1200100 (Legacy Account 1311).

The amount collected will be remitted to the appropriation that incurred the payroll expenditures. If the collection is for a reverted appropriation, the collection will be remitted to Refunds to Reverted Appropriations, Account 5901000 (Legacy Account 9891). Upon remittance to the State Treasury, the amount will be debited to Cash in State Treasury, Account 1104000 (Legacy Account1140) and credited to General Cash, Account 1101000 (Legacy Account 1110).