PAYROLL ACCOUNTING - RECOVERY BY PAYROLL DEDUCTION - 8593.2

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

When overpayments are deducted from subsequent payrolls, the State Controller's Office (SCO) will deposit the amount deducted in the State Payroll Revolving Fund (SPRF) and notify the agency/department through the SCO Journal Entry APO Notice of Transfer. The transaction should be noted on the Controller's Accounts Receivable Register, clearing the portion of the overpayment due from the employee and increasing the amount due from the SPRF.

The total amount of the overpayment recovered will be transferred by the SCO to the agency/department fund and appropriation. The transfer will be entered as a debit to Cash in State Treasury, Account 1104000 (Legacy Account 1140) and credit to Accounts Receivable – Abatement, Account 1200100 (Legacy Account 1311).