Reimbursements for Unemployment Compensation Payments (APS 003)

Overview

Applicable to

State agencies and institutions of higher education.

Policy

State agencies (agencies) and institutions of higher education (institutions) must reimburse the Texas Workforce Commission (TWC) for unemployment benefits paid by TWC to former state employees.

Legal Citations

Labor Code, Section 201.011; Texas Government Code, Sections 403.011 and 2101.035; General Appropriations Act, Article VII-40, Rider 5, and Article IX-73, Section 15.01 (2023).

Legend

Background

Reimbursement to TWC

The Texas Workforce Commission (TWC) pays unemployment compensation benefits to former state employees out of Unemployment Compensation Benefit Account Fund 0937.

All agencies and institutions must reimburse TWC from agency appropriations for 50 percent of the unemployment benefits paid on agencies’ behalf.

Note: This reimbursement to TWC’s general revenue (GR) dedicated account – Unemployment Compensation Special Administration, Account 0165 – will reduce your agency’s budget and cash, regardless of the salary funding source (GR, GR dedicated accounts or other special funds).

Agencies and institutions that fund salaries from GR dedicated accounts, federal funds or other special fund sources other than the GR must reimburse TWC for an additional 50 percent from the source’s fund cash, making the reimbursement from a special appropriation titled “Unemployment Reimbursement.”

Note: Gifts, grants and special fee accounts that are appropriated amounts above those provided in the method of finance section in the General Appropriations Act (GAA) are included as other special fund sources and require the additional 50 percent.

Agencies and institutions that pay salaries from local funds held outside the state treasury must reimburse TWC for 100 percent of unemployment benefits paid on behalf of those accounts.

Comptroller’s Requirements

Legal Requirements

The GAA directs the Comptroller’s office to determine the proportional amount of reimbursement or payment due from information provided by TWC. This information is determined from historical payroll files. To determine the fund source, the Comptroller’s office will extract data equivalent to the base period, defined in the Texas Unemployment Compensation Act, Section 201.011, Labor Code, as the four consecutive completed calendar quarters, prescribed by TWC, in the five consecutive completed calendar quarters before the first day of an individual’s benefit year.

Example

If the initial claim was made on Aug. 23, 2024, then the previous five completed quarters start on April 1, 2023. The quarters used to determine the base period in this example are the second, third and fourth quarters for calendar year 2023 and the first quarter for calendar year 2024.

Determining Fund Source

To determine the fund source for the base period, the Comptroller’s office will extract files from the current fiscal year plus the four prior fiscal quarters. If for some reason all or a portion of the base period is outside of this range, the fund source will default to local funds. Additionally, if claimants cannot be located on the Comptroller’s files, the fund source will default to local funds. Refer to CAPPS – Agency Procedures for Reimbursing TWC or USAS – Agency Procedures for Reimbursing TWC in this fiscal policy and procedure (FPP) for instructions on how to reclassify the fund source.

Reimbursing Appropriations

The Comptroller’s office has designated a separate appropriation for agencies to use when reimbursing TWC for the additional 50 percent reimbursement from GR dedicated accounts, federal funds or other special funds. The appropriation number is 90822 and its title is "Unemployment Reimbursement." This appropriation will act as a holding account for the additional 50 percent reimbursement to TWC.

The Comptroller’s office will follow up with delinquent agencies to ensure reimbursements are processed; see Comptroller Actions for Delinquent Reimbursements in this FPP for more information.

General Guidelines for Reimbursing TWC

Agencies and institutions must follow these guidelines when reimbursing TWC:

• Reimbursements to TWC must be made by the agency within 30 days of receipt of the Reimbursable Unemployment Benefits Statement form (C-58R-2).
• Agencies are directed to verify the fund sources reimbursements are due from.
  • CAPPS HR/Payroll agencies need to contact their authorized level 1 user and the CAPPS help desk for additional assistance.
  • For SPRS agencies, use the USAS DAFR3651 Warrant Register by Agency Report under Warrant Type 010 Payroll.
  • For agencies that process reimbursement payrolls through USAS, the DAFR3741 Payment Register by Agency, document type and document number under document type 5 can be used.
  • Agencies can also use internal payroll systems for fund source verification. The base period defined above would be used to determine the fund source.
• Agencies must reduce any federal funding reflected in the General Revenue Proportionate Amount column or the GR Dedicated Fund Proportionate Amount column and include these amounts indicating the federal adjustments to TWC in the Fed/Other FDs Appro. Proportionate Amount column of the Fund Source Statement (Appendix B of Form C-58R-2).

  Note: Federal funds paid from the general revenue fund are not subject to 50 percent matching.

• If the agency needs to adjust amounts owed or reclassify fund sources billed, the agency must return the Fund Source Statement (Appendix B of Form C-58R-2) indicating the change to TWC.
• Agencies must establish budget in Appropriation 90822 as needed to reimburse TWC for the additional 50 percent owed. Institutions of higher education may reimburse this portion directly out of their own appropriations.

 CAPPS – Agency Procedures for Reimbursing TWC

Reimbursing TWC From Agency Appropriations

CAPPS agencies must use the following procedures to reimburse TWC for 50 percent of total benefits paid to claimants by TWC. This reimbursement must come from agency appropriations funded from general revenue, GR dedicated accounts, federal funds or other special funds.

Create the Payment to Reimburse TWC

Create the payment to reimburse TWC by entering a voucher in CAPPS.

1. Select payment type T and use the accounting entry template for T-code 485.
2. Enter the TWC RTI number in the RTI field.
3. Enter the TWC account number (TWC ACCT NO.) in the INVOICE NUMBER field.

The vendor number and mail code for T-code 485 is 33203203204.000. Note that there are unique RTI numbers for each appropriation year of the reimbursement.

Unemployment benefit reimbursements billed for the last quarter of the previous fiscal year but not received until the current fiscal year must be posted in USAS as a previous year’s expense and due to TWC. Agencies can do this by backdating T-code 485 to the previous year.

CAPPS agencies can enter a backdated transaction in USAS using T-code 485. Enter a corresponding entry in CAPPS using the adjustment voucher with the accounting date set to match the date entered in USAS. Select the accounting entry template that has an offset to 0045 (cash) with a manual (MAN) T-code.

Using the same coding block entered on the CAPPS adjustment voucher, create a GL journal in CAPPS to debit account 0045 for the amount that was entered on the adjusting voucher and credit GL account 1050 for the same amount, per the example below. Use the USAS T-code 485 entry accounting date as the accounting date for the GL journal entry in CAPPS.

Agency	Ledger	Account	Fund	Dept	PCA	AY	Amount	DR/CR
XX000	Actuals	0045	XXXX	XXXX	XXXXX	20XX	XX.XX	DR
XX000	Actuals	1050	XXXX	XXXX	XXXXX	20XX	-XX.XX	CR

To ensure that the GL impact is reversed in the subsequent month/year, use the journal entry reversal link on the header page in CAPPS. To complete the transaction in the correct accounting period, select the “Beginning of next period” radio button on the GL journal’s Journal Entry Reversal page.

Reimbursing TWC From the Unemployment Compensation Reimbursement Appropriation

Unemployment Reimbursement Appropriation 90822

If claimants receiving unemployment compensation received payroll warrants originally paid from the GR dedicated accounts, federal funds or other special funds, an additional 50 percent reimbursement is due from these funding sources for those agencies.

Agencies should not make additional reimbursements from their primary strategy appropriations, but should instead use Unemployment Reimbursement Appropriation 90822.

CAPPS agencies should prepare a budget revision to increase budget in Unemployment Reimbursement Appropriation 90822. First, follow these procedures in USAS:

Enter a document type A, batch type 1:

Agency	T-Code/Title	Appropriation Number/ Title	COBJ	Appropriated Fund/ Agency Fund/PCA
Paying Agency	006/Adjust Expenditure Budget	90822/Unemployment Reimbursement	7000	Determined by Agency

After carrying out the USAS budget instructions above, CAPPS agencies tracking appropriation 90822 must then create a budget entry in CAPPS to duplicate the increase, as follows:

Agency	T-Code/Title	Appropriation Number/ Title	COBJ	Appropriated Fund/ Agency Fund/PCA
Paying Agency	No T-Code	90822/Unemployment Reimbursement	7000(XX)	Determined by Agency

If appropriation funding is from a collected source, CAPPS agencies should include an additional line in the budget document shown above for USAS.

Enter a document type A, batch type 1 in USAS as follows:

Agency	T-Code/Title	Appropriation Number/ Title	COBJ	Appropriated Fund/ Agency Fund/PCA
Paying Agency	009/Adjust Revenue Budget	90822/Unemployment Reimbursement	3000	Determined by Agency

After carrying out the USAS budget instructions above, CAPPS agencies tracking appropriation 90822 must then create a budget entry in CAPPS to duplicate the increase, as follows:

Agency	T-Code/Title	Appropriation Number/ Title	COBJ	Appropriated Fund/ Agency Fund/PCA
Paying Agency	No T-Code	90822/Unemployment Reimbursement	3000(XX)	Determined by Agency

To fund the revenue budget (collected), CAPPS agencies tracking appropriation 90822 can create the following transaction in CAPPS as a document type J. Be sure to add a J in the USAS Document Number box for a journal entry to be created in USAS.

Agency	T-Code/Title	Appropriation Number/ PCA Title	Account	Agency Fund	DR/CR
Paying Agency	406/Rev Transfer – Out	Determined by Agency	3970(XX)	Determined by Agency	DR
Paying Agency	No T-Code	Determined by Agency	0045(XX)	Determined by Agency	CR
Paying Agency	405/Rev Transfer – In	Determined by Agency	3970(XX)	Determined by Agency	CR
Paying Agency	No T-Code	90822/Unemployment Reimbursement	0045(XX)	Determined by Agency	DR

If cash operating transfers are the funding source, CAPPS agencies tracking appropriation 90822 can create the following transaction in CAPPS as a document type J. Be sure to add a J in the USAS Document Number box for a journal entry to be created in USAS.

Agency	T-Code/Title	Appropriation Number/ PCA Title	Account	Agency Fund	DR/CR
Paying Agency	404/Cash Oper Transfer – Out	Determined by Agency	7968(XX)	Determined by Agency	DR
Paying Agency	No T-Code	Determined by Agency	0045(XX)	Determined by Agency	CR
Paying Agency	403/Cash Oper Transfer – In	90822/Unemployment Reimbursement	3968(XX)	Determined by Agency	CR
Paying Agency	No T-Code	90822/Unemployment Reimbursement	0045(XX)	Determined by Agency	DR

Once the budget is established in Appropriation 90822, CAPPS agencies create the payment to reimburse TWC by entering a voucher in CAPPS:

1. Select the Payment Type T and use the accounting entry template for T-code 485.
2. Enter the TWC RTI number in the RTI field.
3. Enter the TWC account number (TWC ACCT NO.) in the INVOICE NUMBER field.

The vendor number and mail code for T-code 485 is 33203203204.000. RTI numbers are unique to the appropriation year of the reimbursement.

Unemployment benefit reimbursements billed for the last quarter of the previous fiscal year but not received until the current fiscal year must be posted into USAS as a previous year expense and due to TWC. Agencies can do this by backdating T-code 485 into the previous fiscal year.

CAPPS agencies can enter a backdated transaction in USAS using T-code 485. Enter a corresponding entry in CAPPS using the adjustment voucher with the accounting date set to match the date entered in USAS. Select the accounting entry template that has an offset to 0045 (cash) with a manual (MAN) T-code.

Using the same coding block entered on the CAPPS adjustment voucher, create a GL journal in CAPPS to debit account 0045 for the amount that was entered on the adjusting voucher and credit GL account 1050 for the same amount, per the example below. Use the USAS T-code 485 entry accounting date as the accounting date for the GL journal entry in CAPPS.

Agency	Ledger	Account	Fund	Dept	PCA	AY	Amount	DR/CR
XX000	Actuals	0045	XXXX	XXXX	XXXXX	20XX	10.00	DR
XX000	Actuals	1050	XXXX	XXXX	XXXXX	20XX	-10.00	CR

To ensure that the GL impact is reversed in the subsequent month/year, use the journal entry reversal link on the header page. To complete the transaction in the correct accounting period, select the “Beginning of next period” radio button on the journal entry reversal page of the GL journal in CAPPS.

Reimbursing TWC From Local Bank Accounts

CAPPS agencies must follow these USAS instructions to deposit funds into agency 320 (TWC):

On receipt of the quarterly statement of benefits paid from the TWC, the agency will draw a check from its local bank account payable to the Texas State Comptroller of Public Accounts. The agency will then deposit funds to the state treasury and post a document type D, batch type 2 entry into USAS as follows:

Agency	T-Code/Title	Appropriation Number/ Title	COBJ	Appropriated Fund/ Agency Fund/PCA
320	180/Record Refund of Expenditure	13004/Unemployment Compensation Payments	7984	0165/Inferred from PCA/51700

Local fund expenditure information and balance sheet transactions for the agency will be posted into USAS as directed in the Reporting Requirements for Annual Financial Reports of State Agencies and Universities.

Note: The vendor number for this entry is the agency vendor number assigned to the paying entity. User Class 61 must be used for this transaction.

Reimbursing TWC From a Revolving Account

Agencies may establish a revolving account from funds held in the state treasury. The Comptroller’s office anticipates that these procedures will be used primarily by agencies that need to set aside gift, grant and special fee account receipts in excess of the amounts provided in the method of finance section.

Any agency wishing to establish a revolving account should contact its appropriation control officer for specific requirements.

CAPPS authorized level 1 users may contact the CAPPS help desk for additional assistance to implement the appropriation control officer’s requirements.

USAS – Agency Procedures for Reimbursing TWC

Reimbursing TWC From Agency Appropriations

Agencies and institutions on USAS (non-CAPPS agencies) will use the following procedures to reimburse TWC for 50 percent of total benefits paid to claimants by TWC. This reimbursement is to come from agency appropriations funded from general revenue, GR dedicated accounts, federal funds or other special funds.

Create the Payment to Reimburse TWC

Enter a document type T, batch type 4 as follows:

Agency	T-Code/Title	Appropriation Number	COBJ	Appropriated Fund/Agency Fund/PCA	AY	RTI
Paying Agency	485/RTI – Estab Interagy Accr’d Expend Reimb	Determined by Agency	7984	Determined by Agency	23 24 25	231165 241165 251165

The vendor number and mail code for T-code 485 is 33203203204.000. Note that there are unique RTI numbers for each appropriation year of the reimbursement.

To help TWC reconcile reimbursed amounts:

• The TWC ACCT NO. must be entered in the INV NO. field during USAS transaction input.
• The format must be agency number followed by a hyphen (-) then the TWC ACCT NO. (example: 255-123456789).
• The TWC ACCT NO. can be found on the Fund Source Statement sent by TWC (Appendix B of Form C-58R-2).

Unemployment benefit reimbursements billed for the last quarter of the previous fiscal year but not received until the current fiscal year must be posted into USAS as a previous year’s expense and due to TWC. Agencies can do this by backdating T-code 485 to the previous year.

Reimbursing TWC From the Unemployment Compensation Reimbursement Appropriation

If claimants receiving unemployment compensation received payroll warrants originally paid from the GR dedicated accounts, federal funds or other special funds, an additional 50 percent reimbursement is due from these funding sources for those agencies and institutions.

Agencies should not make additional reimbursements from their primary strategy appropriations, but should instead use Unemployment Reimbursement Appropriation 90822.

The agencies should prepare a budget revision to increase budget in Unemployment Reimbursement Appropriation 90822. Enter a document type A, batch type 1 as follows:

Agency	T-Code/Title	Appropriation Number/Title	COBJ	Appropriated Fund/Agency Fund/PCA
Paying Agency	006/Adjust Expenditure Budget	90822/Unemployment Reimbursement	7000	Determined by Agency
Paying Agency	009/Adjust Revenue Budget	90822/Unemployment Reimbursement	3000	Determined by Agency

To fund the revenue budget (collected), a document type J, batch type 5 transaction must be prepared and entered in USAS. The cash must be transferred to Appropriation 90822 using the following transaction:

Agency	T-Code/Title	Appropriation Number/Title	COBJ	Appropriated Fund/Agency Fund/PCA
Paying Agency	406/Rev Transfer – Out	Determined by Agency	3970	Determined by Agency
Paying Agency	405/Rev Transfer – In	90822/Unemployment Reimbursement	3970	Determined by Agency

If cash operating transfers are the funding source, the cash must be transferred to Appropriation 90822 using the following transactions. Enter a document type J, batch type 5 as follows:

Agency	T-Code/Title	Appropriation Number/Title	COBJ	Appropriated Fund/Agency Fund/PCA
Paying Agency	404/Cash Oper Transfer – Out	Determined by Agency	7968	Determined by Agency
Paying Agency	403/Cash Oper Transfer – In	90822/Unemployment Reimbursement	3968	Determined by Agency

After the budget is established in Appropriation 90822, enter a document type T, batch type 4 as follows:

Agency	T-Code/Title	Appropriation Number/Title	COBJ	Appropriated Fund/Agency Fund/PCA	AY	RTI
Paying Agency	485/RTI – Estab Interagy Accr’d Expend Reimb	90822/Unemployment Reimbursement	7984	Determined by Agency	23 24 25	231165 241165 251165

The vendor number and mail code for T-code 485 is 33203203204.000. RTI numbers are unique to the appropriation year of the reimbursement.

To assist TWC in the reconciliation of reimbursed amounts, the TWC ACCT NO. must be entered in the INV NO. field during USAS transaction input. The format must be agency number followed by a hyphen (-), then the TWC ACCT NO. (for example: 255-123456789). The TWC ACCT NO. can be found on the Fund Source Statement (C-58R-2) sent by TWC.

Unemployment benefit reimbursements billed for the last quarter of the previous fiscal year but not received until the current fiscal year must be posted into USAS as a previous year expense and due to TWC. Agencies can do this by backdating T-code 485 into the previous fiscal year.

Reimbursing TWC From Local Bank Accounts

On receipt of the quarterly statement of benefits paid from TWC, the agency will draw a check from its local bank account payable to the Texas State Comptroller of Public Accounts. The agency will then deposit funds to the state treasury and post a document type D, batch type 2 entry in USAS as follows:

Agency	T-Code/Title	Appropriation Number/Title	COBJ	Appropriated Fund/Agency Fund/PCA
320	180/Record Refund of Expenditure	13004/Unemployment Compensation Payments	7984	0165/Inferred from PCA/51700

Local fund expenditure information and balance sheet transactions for the agency will be posted into USAS as directed in the Reporting Requirements for Annual Financial Reports of State Agencies and Universities.

Note: The vendor number for this entry is the agency vendor number assigned to the paying entity. User Class 61 must be used for this transaction.

Reimbursing TWC From a Revolving Account

Agencies may establish a revolving account from funds held in the state treasury. The Comptroller’s office anticipates that these procedures will be used primarily by agencies that need to set aside gift, grant and special fee account receipts in excess of the amounts provided in the method of finance section. Any agency wishing to establish a revolving account should contact its appropriation control officer for specific requirements.

Comptroller Actions for Delinquent Reimbursements

Introduction

The Comptroller’s office initiates a collection process when TWC identifies agencies that are delinquent in reimbursing TWC accounts.

Collection Process

The Comptroller’s office carries out the process in the table below when an agency is delinquent in reimbursing TWC accounts:

Stage	Process
1	TWC will notify the Comptroller’s office of any remaining amounts due from funds held in the state treasury or in local bank accounts.
2	On receipt of the delinquency report, an appropriation control officer (ACO) will notify the delinquent agency of its status and will inform the agency that reimbursements not made within 10 working days will be initiated by the Comptroller’s office. The ACO will identify the amount and the fund to be charged.
3	The agency will have 10 days to clear up any outstanding issues with TWC, notify its ACO that all applicable reimbursements have been made, and provide documentation of delinquent balance reimbursement.
4	If an agency remains delinquent after 10 days, the ACO will process a reimbursement from the delinquent agency’s operating appropriations for 100 percent of the delinquency. General revenue appropriations will be charged when possible; otherwise, another source will be used.
5	The ACO will send a copy of the processed journal voucher document to the delinquent agency. T-codes 416 and 416R will be used to process these reimbursements.
6	The agency is responsible for preparing any documents that may be needed if the ACO processes incorrect amounts or coding elements. The delinquent agency must prepare any corrections regarding amounts paid to TWC and send them to the ACO for central entry.