CFO 08 14 Military Pay Differential 2 4 08 by Mm8OFfu

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									                                    State of Rhode Island
                                 Department of Administration

INTER-OFFICE MEMORANDUM
                    Office of Accounts and Control


TO:     Chief Financial Officers                           DATE: February 4, 2008


FROM:            Wayne Hannon, Associate Controller


SUBJECT: Payment of Military Pay Differential to Employees
          CFO 08-14

RIGL Section 30-6-5 authorizes the payment to state employees of the difference between their
military pay and their base state pay during active military leave.

Once an employee is activated to military duty, s/he becomes an employee of the U.S. military
service that activated them. Therefore, they are not employees during the period of time they are on
active military duty.

Procedures:

1. The Payroll/HR office of the employing agency will submit a copy of employee's military order
   to active duty to Judy Boyle, Division of Purchases, One Capitol Hill, Providence, RI 02908
   (telephone: 574-8112, e-mail: JBoyle@purchasing.state.ri.us).
2. The employee will be added to the RI Financial Accounting Network System (RIFANS) supplier
   file.
3. The Payroll/HR office of the employing agency will calculate the amount of the stipend for the
   period the employee was on active military duty using the A-88 form. The stipend amount is
   equal to the difference between the employee's military pay and his/her state base salary. An
   authorized agent of the employing department will sign the A-88 form.
4. The business office of the employing department will create and submit a standard
   invoice/batch import documents in RIFANS for the amount of military pay differential stipend
   and attach the signed A-88 form to support the payment. Natural account number 639900 will
   be used to record the stipend payment. Agency should also use cost center 68:900 when
   recording the payment.
5. The Office of Accounts and Control will issue a RIFANS check payable to the employee. At the
   end of the calendar year, a form 1099 MISC is to be issued to the employee reporting the
   amount of the stipend as "non-employee compensation." NOTE: no employment taxes will be
   withheld from the stipend payment.

cc: Chief Payroll Officers
LCF/nas


CFO 08-14 MILITARY PAY DIFFERENTIAL

								
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