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Payroll Action Overview

Payroll documents are entered to establish and update payroll data in the database. These documents are required to make disbursements or collections, as well as provide other pertinent information pertaining to the employee’s record.

Certain payroll documents are grouped according to a category (e.g., Federal and non-Federal Benefits, Leave Payment, Performance Appraisal, Taxes). Other payroll documents are grouped according to the action taken (e.g., Union Dues - new authorization, dues change between locals).

EPIC Web lists the various payroll documents alphabetically on the New Document List page. Certain payroll documents are grouped (in folders) by category or action.

Payroll documents are processed to:

  • Withhold mandatory and voluntary deductions, such as health and life insurance, child support and alimony payments, allotments, taxes, etc.
  • Disburse payments, such as annual leave and compensatory time payments.
  • Transfer data to PPS from another payroll system (e.g. leave data transfer).
  • Process performance appraisals.
  • Disburse payments through Direct Deposit/Electronic Funds Transfer (DD/EFT).
  • Update the database with payroll-related miscellaneous elements (e.g., restored annual leave, education and professional certification).

Note: If an employee separates from one Department to another Department within PPS, the payroll documents in affect at separation must be reentered by the gaining Department when the accession action is entered.

Certain payroll documents cannot process without the interface of a personnel action (e.g., a final annual leave lump sum payment cannot process until the separation personnel action is processed). The applicable action and/or payroll document should be entered in the same pass of PINE to avoid rejection in PPS. Processing of payroll documents also generates data on certain output files produced by NFC.

The following table provides hints for processing certain payroll documents and describes the end result when a payroll document is processed.

Payroll Document

Effect/Result
349 Address (Current Residence) Voluntary local taxing entity on tax form must agree with residence address. The Personal Benefits Statement and Earnings and Leave Statement is mailed to the residence address.
Tax (State or County) Mandatory deductions are based on the duty station of the position in PMSO; voluntary deductions are based on the residence.
Thrift Savings Plan Election The TSP Eligibility Code on the personnel action identifies whether the employee is eligible to participate in TSP. The TSP Election indicates the employee selections.
Health Registration Form (SF 2809) Federal Employees Health Benefits (FEHB) Coverage Code must be coded on personnel action.
Union Dues Bargaining Unit Status Code must be coded in PMSO.
Lump Sum Leave Separation action must be processed.
Allowance (Parking) Entry allowed on the T&A or in EPIC Web but not both.
Allowance (Quarters-per day) T&A must be coded to disburse payment.
Allowance (Separate Maintenance) T&A must be coded for per day allowance.
Allowance (Uniform) Entry allowed on the T&A document or in EPIC Web but not both.
Severance Pay Remarks Code N22 must be shown on the personnel action for severance payment disbursement.

Several payroll documents include a Transaction field with a drop-down list. This drop-down list identifies the action taken. The transaction valid values are Add, Change, Delete, and Cancel All. Transaction value Add applies to a new document being added to the database; Change changes the document in the database; Delete deletes the document from the database.

When an employee separates and/or is indebted to the Government, the law mandates that deductions are secured from the employee’s gross salary. Payroll document data is included in these deductions. The table below lists the order in which voluntary and mandatory deductions are made in PPS. If a mandatory deduction on the list precedes another mandatory deduction, and the salary is not sufficient to cover both/all mandatory deductions, the deduction(s) with the highest hierarchy will take precedence.

When entering a transaction, consider if the action being taken requires an adjustment. If an adjustment is required, enter the data in SPPS Web. Also, review if the action affects the amount being deducted and/or the balance.

Order of Precedence for Payroll Deductions

1. Retirement

2. OASDI (Social Security Tax)

3. HITS (Hospital Insurance Tax)

4. Federal Tax

5. Health Benefits Deductions (basic)

6. Federal Employee Life Insurance (FEGLI) (basic)

7. State Tax

8. City Tax

9. County Tax

10. Meals

11. Quarters

12. Commissary

13. Imprest Fund

14. Occupational Privilege Tax

15. Tax Levy

16. Receipt Accounts

17. Child Support and Alimony (Court Costs)

18. Child Support and Alimony (Deductions)

19. Child Support and Alimony (Arrears)

20. Bankruptcy

21. Commercial Garnishment

22. Demand Letter Flexfund (Healthcare)

23. Travel Separation

24. Flexfund (Healthcare)

25. Health Benefits (Vision)

26. Health Benefits (Dental)

27. Health Savings Account (HSA)

28. Life Insurance Option A

29. Life Insurance Option B

30. Life Insurance Option C

31. Long Term Care

32. Flexfund (Dependent Care)

33. Long Term Disability (FDIC)

34. Extra Federal Income Tax

35. Extra State Tax

36. Extra City Tax

37. Extra County Tax

38. TSP (Financial Allotment)

39. TSP Deductions

40. TSP Deductions (Catch-up)

41. Military Service Deposits

42. Association Dues

43. Union Dues

44. Charitable Contributions 

45. Receipt Account (Separated Employees or Less Than $10)

46. Discretionary Allotments

47. Financial Allotments

48. TSP (Collections)