"CFO 08 14 Military Pay Differential 2 4 08"
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