| Glossary of Payroll Terms |
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Welcome to the OSPS Glossary of Payroll Terms. OSPS developed this glossary to help new payroll staff members and employees navigate the terms surrounding State of Oregon payroll systems.
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Accrue
A benefit earned but not yet posted to an employee's record. Most often used with "accrued leave".
ACH Electronic Deposit
ACH means the Automated Clearing House established for processing electronic deposits between financial institutions.
Generically for OSPA purposes, ACH is used to refer to an employee's use of direct deposit of all or a portion of their pay.
OSPA is set up to allow eight electronic deposits and a net pay deposit to the employee's chosen financial institution.
ACH Rejects
ACH rejects are unsuccessful information or monetary exchanges between the state and the recipient's financial institution.
When an employee's financial institution rejects a deposit or pre-note attempt, this information is transmitted to the Oregon State Treasury, which in turn transmits it to us once each day. OSPS then notifies state agencies via fax, or by phone if there is money involved, so agency payroll offices can rectify the incorrect information.
The daily ACH reject process begins around 10:30 a.m. and is completed by 11:30 a.m. There is only one interface per day.
ACH Stops
Following each payroll run, agency payroll staff have until 10:15 a.m. on the second day after final cutoff to prevent a direct deposit from being transmitted. This action is called an "ACH Stop".
To request an ACH Stop from OSPS, please complete the ACH Stop Form (pdf).
AHRP
Annualized hourly rate of pay, ADJUSTED BASE from the P030 ÷ 173.33 (if STANDARD HRS PER DAY = 8)
Assumed Wages
The dollar value of work performed by unpaid volunteers. For Workers Compensation Insurance purposes, it is generally calculated by multiplying the number of hours times the federal minimum wage.
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Benefit Package Code
A two-letter code that defines employee representation with OSPA. It is developed jointly by OSPS, Personnel and the agency. It is interfaced from PPDB to OSPA.
Biennium
A period of two years beginning July 1 of each odd-numbered year. A biennium is typically designated by the last two digits of the last year of the biennium; for example, the July 1, 2007 to June 30, 2009 biennium = the 09 biennium.
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CBIW
Continuation of Benefits for Injured W orkers. The continuation of employer-paid health insurance associated with an open SAIF claim for workplace injury.
CICS
Customer Information Control System. CICS is the software that allows programs to run in an interactive, on-line, real-time mode. It has been described as an operating system within an operating system. For OSPA purposes, this refers to the interface used to work within the state's mainframe operating system.
Cloning
Performed using the P071 screen, cloning is the copying from the losing agency to the gaining agency of all deduction data, tax and retirement data, gross pay adjustment, and work schedule data for an employee transferring from one agency to another.
COBRA
The federal government enacted the Consolidated Omnibus Budget Reconciliation Act (COBRA) on April 7, 1986. It amended the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code, and the Public Health Service Act to provide continuation of group health insurance.
For payroll purposes, PEBB outlines when COBRA actions need to occur. This relates to employee insurance benefits.
Concurrent Job
It is possible for an employee to hold more than one part-time job in an agency. These jobs may pay different rates and be in different classifications. OSPA uses concurrent jobs to track the details for each job. They are numbered from 1 to 9.
Constructive Receipt
Constructive Receipt is the date on which monies are available to the employee, or fringe benefits have been used.
Corrective
When you need to make adjustments to a pay period that's already been closed, one option is to set a corrective. This means to go to the OSPA P190 screen and flag the record you want OSPA to rerun. OSPA will compare current activity against activity already processed in a prior payroll run and process any new information.
Crossfoot
Crossfooting is an accounting procedure that compares the totals of each column to the total for the row.
In OSPA, you'll see this term as it applies to balancing entries on the P070: "SHARE FIXED" + "EMPLR SHARE" = "BOARD SHARE" + "VENDOR SHARE".
Current Pay Period
The pay period that is currently open; not yet closed. These are expressed as a calendar month. Pay periods are open from the day after the prior month's Run 2 closed until the current month's Run 2 closes. This generally runs from the 11th of one month to the 10th of the next month. See the current OSPA Processing Calendar for specific dates.
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Date Critical
OSPA screens where you must include the Pay Period ending date in the screen key in order to look at information for a particular pay period.
Date of Concern
This is an optional date that may be entered as part of the screen key on some screens, MMDDYY.
Date Sensitive
OSPA screens which use a particular date to identify information for a certain period of time, such as the P030 used to look at a job segment. Date entry is optional.
Decline PEBB Benefits
In declining PEBB benefits, the eligible employee waives his/her right to the employer contribution and enrollment in any of the insurance plans available through PEBB, including flexible spending accounts and all voluntary insurance plans.
Deduction Code
Four-character code used to deduct money from an employee's paycheck. Current deduction codes are listed in Appendix C (pdf) and Appendix G (pdf).
Defined Benefit Plan
A retirement plan that is benefit-based and uses predictable criteria to determine the retirement benefit, such as a pension determined by salary x length of service x a factor.
Defined Contribution Plan
A retirement plan that has no guarantees. Members make contributions; employers may or may not also make contributions. When a member retires, he or she receives the contributions plus any earnings or losses that have accrued.
Dues Paying Union Member
Employee who has contacted the union representing their position with the State of Oregon and has completed an agreement with that union to pay a monthly amount for dues.
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Earned Income Credit
Employers can give eligible employees part of the Earned Income Tax Credit (EITC) with their pay through the Advance Earned Income Credit (AEITC) program. Eligible employees receive part of their Earned Income Tax Credit in their paychecks throughout the year instead of waiting until they file their tax returns.
The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
Effective Date
The pay period end date for which this entry is effective.
Employee Pick-Up
The employee's contribution portion of retirement monies which are paid (or "picked up") by the employer.
Emulator
Hardware or software that permits programs written for one computer to be run on another computer.
Equivalent Hourly Rate
Shown on the P030 (EQUIVALENT RATE). Employee's monthly salary ÷ 173.33 (based upon STANDARD HRS PER DAY = 8)
ERB
Employee Relations Board
Exempt Employee
Employees who are not subject to the Fair Labor Standards Act (FLSA) and are paid an annualized salary for performing the whole job, not for actual hours worked. These employees do not track, earn or receive overtime compensation.
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Fair Share Employees
Employees who have not joined the union representing their position with the State of Oregon. The employees must contribute an amount equal to the amount paid for union membership.
FICA
The Federal Insurance Contributions Act provides for a federal system of old-age, survivors, disability, and hospital insurance. The old-age, survivors, and disability insurance is financed by the social security tax. The hospital insurance is financed by the Medicare tax. Each of these taxes is reported to the federal government separately.
Final Cutoff
The OSPA databases are not updated until final run of payroll. The final run produces an electronic and a paper payroll register that is the official payroll record.
FLSA
Fair Labor Standards Act
FLSA Exempt
Employees who have been classified by agency personnel as exempt from FLSA protection.
FLSA Rate / FLSA Regular Rate of Pay
FLSA regular rate of pay used to calculate overtime pay. FLSA subject dollars ÷ FLSA subject hours for the month.
FMLA
The federal Family and Medical Leave Act provides protection of job and benefits for workers taking leave for various family and medical reasons.
Forecasted Time
Time that has been forecasted for the employee based on the work schedule entered on the P020.
OSPA forecasts this time with the preliminary calculation of Run 1 and bases the payment of salary on these hours. Any adjustments to these hours are done after Final Run 1. Additional pay will be given on the fifteenth of the month following, after Final Run 2.
FRRP
FLSA Regular Rate of Pay. The FLSA defines "regular rate" as "... all remuneration for employment except seven specified types of payments. Among these excludable payments are discretionary bonuses, gifts and payments in the nature of gifts on special occasions, contributions by the employer to certain welfare plans and payments made by the employer pursuant to certain profit-sharing, thrift and savings plans. These are discussed in Secs. 778.211 through 778.214. Bonuses which do not qualify for exclusion from the regular rate as one of these types must be totaled in with other earnings to determine the regular rate on which overtime pay must be based. Bonus payments are payments made in addition to the regular earnings of an employee."
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Grant
A contribution or gift of cash or other assets to be used for a specific purpose, activity, or facility.
Great Date Mate
The Great Date Mate is a catch-phrase that refers to the P010 Withholding Data / Locator Data Screen, Final Check and Final Pay Period fields.
This phrase was coined as a way to remember the critical nature of these dates as they relate to year end.
Gross Pay Adjustment
An adjustment made to an employee’s total wage dollar amount. It can be either an increase or a decrease, depending on the adjusting information.
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HIPAA
Health Insurance Portability and Accountability Act
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Job Segment
Within the same concurrent job, the employee may have changes to the conditions of employment, such as pay rate, work-out-of-class, percent of full-time status, benefit package, leave accrual service code, etc. Each time a staff member makes a change in PPDB, the application will create and interface an end date for the existing job segment and a new job segment that reflects the change.
Joint Payroll Account (JPA)
The account in the State Treasury established by statute for the purpose of funding payroll expenses of agencies that use OSPA to process their payroll. Agencies must reimburse this account for their expenses.
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LARS
The Leave Accrual and Reporting System is a database created to track and calculate leave accrual and usage based on regular paid hours in the current pay period.
LWOP
Leave WithOut Pay
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Mass Transit Tax
An employer paid tax on the wages of state employees whose official work station is located within a valid mass transit district.
Medicare Tax
The Medicare tax, designated as MEDR on pay stubs and registers, is 1.45% of subject earnings. Together with the Social Security tax, this comprises what is generally considered the "FICA tax" of 7.65% of subject earnings. Unlike Social Security, there is no maximum salary limit subject to Medicare tax.
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NACHA
National Automated Clearing House A ssociation
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OAM
Oregon Accounting Manual
OAR
Oregon Administrative Rules
OFLA
Oregon Family Medical Leave Act
Online Daily Time
Another method of tracking employee time in OSPA. The employee will have access to P004, P005 and P007 screens to enter and monitor their own time in OSPA. Supervisors will have access to the P006 to lock or approve employee time online.
OPE
Other Payroll Expense - the employer's cost for the employee in addition to the gross salary. This includes FICA tax, PERS, insurance benefits, workers' benefit fund (WBF) and mass transit tax.
OPSRP
Oregon Public Service Retirement Plan administered by PERS and implemented 8/29/03. Consists of a defined contribution plan (Individual Accounts) and a defined benefit plan.
Opt Out (insurance)
OAR 101-020-0015. An eligible employee covered by another employer sponsored group medical plan may opt out of medical insurance coverage under PEBB.
ORBITS
Oregon Budget Information Tracking System
ORS
Oregon Revised Statutes
OSPA
Oregon State Payroll Application – The system used by agency payroll representatives to track hours, pay and benefits for state employees.
OSPS
Oregon Statewide Payroll Services – Section of the State Controller’s Division at the Department of Administrative Services designed to serve, support and help coordinate all state agency payroll tracking of hours, pay, and recordkeeping.
Other Taxable Income
Any employer provided cash payment or non-cash fringe benefit that must be added to year-to-date taxable income and reported on the W-2 form.
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P010 Dates or P-10 Dates
"P010 Dates" refers to the "Final Check Issued" and "Final Check Period Ending" date fields on the P010 Withholding Data / Locator Data screen.
* NOTE: "November P010 Dates" when referring to year-end activity means filling both of the above fields with 11/30/XX dates.
Pay Period
For the purposes of the State of Oregon, a pay period is a calendar month within a calendar year in which an employee has worked for the State of Oregon. OSPA is a monthly payroll system; the last day of the month is used to define the period. It is understood that all dates prior to the end date are included.
Pay Period End Date or PPE
The last day of any given month. Example: PPE 053107 is the pay period end date for May 2007 payroll month.
Payroll Run
"Payroll Run" generally refers to the next, or upcoming, time that payroll data will process through OSPA. There are two payroll runs per pay period. Run 1 happens near the end of the month, and Run 2 happens near the middle of the next month. See the Introduction to Payroll (pdf) portion of our Reference Manual for further detail.
PEBB "dot" benefits (PDB; pebb.benefits)
Web-based application used to administer PEBB benefits.
PEBB
Public Employees’ Benefit Board, the organization responsible for administering health insurance benefits for state employees.
PERS
Public Employee Retirement System, refers to both the retirement plan itself and the agency that administers it. PERS is an agency designed and created to handle all information pertaining to the retirement of a public employee, including Higher Education, City and County, and State Employees.
PERS Eligibility Date
The date an employee is eligible for payments to be made to one of the Public Employees Retirement Systems for the purpose of becoming a member of the retirement program. Please refer to the PERS Employers Manual.
Personnel Action or PA
Official notices from the personnel office of a state agency of information regarding the hire, change, or termination of a state employee.
PICS
Position Inventory Control System. PICS is a system used to develop and manage authorized positions on the statewide level. It contains information needed to develop budgets for personal services and other payroll expenses. Position counts and Full-time Equivalent (FTE) values are also maintained in the system. This system is used to generate ORBITS Personal Services budget requirements for agency budgets. PICS is part of the PPDB.
PIN or P.I.N.
Personal Identification numbers for online daily time. The PIN in combination with the Employees Social Security or Employee ID number is the Employee's official electronic signature and consists of numbers only.
Plan Code
In OSPA, the plan code is a division of the larger deduction code. For example, deduction code RGNN (for Regence BlueCross BlueShield insurance) has associated plan codes for family component. See the OSPA PTD2 screens for a listing of available codes for the deduction you're viewing.
POB
Pension Obligation Bonds, issued in 2003-05 to reduce the PERS unfunded actuarial liability. Agencies are assessed to repay them.
PPDB
The Position and Personnel DataBase is a mainframe application that maintains the employment history for each state employee. It interfaces classification and compensation data to OSPA.
Preliminary Cutoff or Prelim
OSPA runs a batch cycle which edits against payroll calculations and produces exception reports to indicate data that may need to be changed. This run does not post to the tables or generate payments.
Often used in conjunction with the associated run, as in "Prelim Run 1" or "Prelim Run 2".
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R*STARS
Relational Statewide Accounting and Report System - the state's accounting system
RACF or RACF ID
The Resource Access Control F acility ID number is used to grant security access to CICS, the DAS mainframe computer system. The number used is generated by PPDB as its USER ID field on the Employee Reference Display screen (F4).
Reimbursement of Expense
Non-taxable expense reimbursements which need to be recorded and are paid to an employee through OSPA.
Retroactive Payroll Run
Retroactive (pay periods during prior six months) payrolls are controlled by OSPS and are used only when labor contracts for large numbers of employees are settled more than three months beyond the registers maintained online.
Run with Payroll
"Run with Payroll" means to wait until the next payroll run to process outstanding items. There are two payroll runs per month.
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SAIF
SAIF (State Accident Insurance Fund) Corporation, which is a self-supported, not-for-profit corporation, is the carrier for the state's workers' compensation insurance.
Salaried Employee
Employee is compensated a set amount per month based upon an annual amount, rather than being compensated on a hourly rate for specific hours worked.
Screen
These are usually the active work areas for users. In some cases, they are display-only due to the nature of the information being shown. This is often data fed from other systems such as PPDB.
Screen Key
Required information entered after the screen identifier in order to retrieve a record on one of the OSPA screens.
SFMA
State Financial Management Application. Consists of two parts - the Relational Statewide Accounting and Reporting System (R*STARS) and the Advanced Purchasing and Inventory Control System (ADPICS).
SHRP Rate
Salary hourly rate of pay. Employee's monthly salary divided by the number of actual work hours in the month.
Split Screen, Split Time Screen, or Split Timesheet Screen
When there is a personnel action made in PPDB that will affect time worked or leave accrual during the month, OSPA will create a second time screen based on the new information.
If the personnel action happened before Prelim Run 1 of any given pay period, OSPA will automatically allocate time to each segment based on the P020 schedule.
If, however, the personnel action happened after Prelim Run 1, this will report on exception reports for agencies to address by hand.
Stale-Dated Check
Checks remaining untendered two years after the date inscribed on them are deemed "stale-dated" and are no longer negotiable. Money associated with stale-dated checks where the owner cannot be located are turned over to the state annually.
State Match
Retirement system contributions made by employers. Rates are determined by PERS.
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Tables
System of maintaining and displaying facts related to employee benefits, leave accrual rates, available pay types, and work schedule codes. System users may view this information which is maintained by OSPS staff.
There are three main sets of tables: Benefits (PTB1 and PTB2), Deductions (PTD1 and PTD2) and Work Schedules (PTW1 and PTW2).
Tax Deferred Annuities
A type of retirement plan under Section 403(b) of the Internal Revenue Code that permits employees of public educational organizations or tax-exempt organizations to make before-tax contributions via a salary reduction agreement to a tax-sheltered retirement plan. Employers are also allowed to make direct contributions on behalf of employees.
Tax Withholdings
Mandatory withholding of Federal and/or State Income Tax, Social Security and Medicare.
Taxable Income
Income remaining after all pre-tax deductions and adjustments are considered.
Time Capture
The process of determining the hours worked, leave hours used, overtime to pay, etc., in order to ensure pay to the employee for any given pay period. For OSPA purposes, this is a series of seven screens, P001 through P007.
Timesheet Codes
Entered through PPDB and may be viewed on the P030 screen. These codes determine the type of timesheet for the employee and whether or not to show the forecasted time for the current pay period.
Timesheets
Uniformity in record keeping for the Oregon State Payroll Application is provided by the timesheets which were designed for the system, Form #AD1743 short form and #AD1744 long form. These forms meet the FLSA standards for maintaining a record of a non-exempt employee.
No timesheet will be generated until an Employee has been entered in the Personnel System.
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USERRA
The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA 38 U.S.C. 4301-4334) was signed into law by President Bill Clinton on October 13th, 1994 to protect the civilian employment of non-full time military service members called to active duty. The law applies to all United States uniformed services and their respective reserve components.
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Voluntary Deductions
Deductions chosen by the employee in addition to the mandatory tax withholdings. Some examples include insurance, Oregon Savings Growth Plan contributions, union dues/fair share, and, ACH deposits.
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Waive (insurance)
OAR 101-020-0018. An eligible employee may decline PEBB benefits by waiving his or her right to the employer contribution and enrollment in any of the benefit plans available through PEBB.
Waiver Class & Date
The acknowledgement of the type of insurance benefit to which the employee has waived all right and the date that waiver was made.
Work Schedule Code
A three-digit, alpha/numeric code on the PTW1 Payroll Work Schedule Table that designates a unique standard work schedule.
Workers' Benefit Fund
Oregon employers collect a Worker's Compensation assessment from employees for each subject hour or part of an hour worked. They match these funds and pay them to the Workers' Benefit Fund.
This fund supports such programs as Handicapped Workers Program, Reemployment Assistance Program, and payments to employees for non-complying employers. It is administered by the Department of Consumer and Business Services.
Workers' Compensation
Workers’ compensation insurance (often called “workers’ comp”) provides benefits for workers who are injured as a result of their work. Workers’ compensation insurance protects workers by paying for medical treatment and lost wages, and it protects employers by shielding them from liability lawsuits that might result from work-related injuries or illnesses.
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