To:      MOU Financial Leads
University Business Managers
HR Officers and Secondary Contacts
Research Administrators Support Group

From:   Walter Miller, Labor Accounting Manager

Re:       New Payroll Suspense Policy

Effective June 17, 2016, a new policy, Policy 1124 – Payroll Suspense, will clarify the definition of and action related to payroll suspense.

The policy was created after much discussion with campus units and a review of peer university practices, with the goal of providing a common definition of the payroll suspense account and guidelines for proactively managing payroll suspense. Payroll suspense chartfields are designed to capture personnel expense transactions caused by a system error during the payroll process.

The policy requires campus units to correct these errors in a timely fashion — less than 90 days — and directs users not to use the account as an intentional funding source.

Schools/departments are encouraged to develop a monthly procedure to review and adjust payroll suspense. Please review the new policy. An accompanying procedure explaining how to manage payroll suspense is being developed. If you have questions, please contact Walter Miller at wmiller@unc.edu.

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