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Reimbursements for Unemployment Compensation Payments (APS 003)

Issued: Nov. 22, 2005
Updated: Sept. 8, 2017 – View Changes

FPP A.035

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 cite

Labor Code, Section 201.011; Government Code, Sections 403.011, 2101.035; General Appropriations Act (GAA), Art. VII-38, Rider 6, and Article IX, Section 15.01, 85th Legislature, Regular Session.

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Background

Reimbursement to TWC

The Texas Workforce Commission (TWC) pays unemployment compensation benefits to former state employees out of the 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, No. 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 sources 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 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.

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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 the commission, in the five consecutive completed calendar quarters preceding the first day of an individual's benefit year…

Example

If the initial claim was made on Aug. 23, 2013, then the previous five completed quarters start on April 1, 2012. So, the quarters used to determine the base period in this example are the second, third and fourth quarters for calendar year 2012 and the first quarter for calendar year 2013.

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 the USAS – Agency Procedures for Reimbursing TWC or CAPPS – Agency Procedures for Reimbursing TWC sections of 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 the TWC for the additional 50 percent reimbursement from GR Dedicated accounts, Federal Funds or Other Special Funds. The appropriation number is 90822 and is titled "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 the Comptroller Actions for Delinquent Reimbursements section of this FPP for more information).

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General Agency 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 from which reimbursements are due.
    • CAPPS HR/Payroll agencies need to contact their authorized Level 1 user and the CAPPS Help Desk for additional assistance.
    • For Uniform Statewide Payroll/Personnel System (USPS) agencies, USPS Report 189 will identify the fund from which an employee was paid.
    • For non-USPS 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, Doc Type And Doc Number under Document Type 5 can be used.
    • Agencies can also rely upon internal payroll systems for fund source verification. The same base period, as 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 that 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 the 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.

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CAPPS – Agency Procedures for Reimbursing TWC

Reimbursing TWC from agency appropriations

Agencies on CAPPS must 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

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 for T-code 485 is 33203203204000. 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 into USAS as a previous year’s expense and due to TWC. This can be achieved by backdating T-code 485 to the previous year.

Agencies on CAPPS 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 the Unemployment Reimbursement Appropriation 90822.

CAPPS agencies should prepare a budget revision to increase budget in the 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 for T-code 485 is 33203203204000. 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. This can be achieved 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):

Upon 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 Comptroller’s Treasury Operations Division. 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.

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.

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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 17
18
19
171165
181165
191165

The vendor number for T-code 485 is 33203203204000. 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. (Ex: 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. This can be achieved 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 the Unemployment Reimbursement Appropriation 90822.

The agencies should prepare a budget revision to increase budget in the 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

If appropriation funding is from a collected source, then agencies should add the following additional line to the budget document shown above. 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 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 16
17
18
161165
171165
181165

The vendor number for T-code 485 is 33203203204000. 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. This can be achieved by backdating T-code 485 into the previous fiscal year.

Reimbursing TWC from local bank accounts

Upon 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 Comptroller’s Treasury Operations Division. 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. Any agency wishing to establish a revolving account should contact its appropriation control officer for specific requirements.

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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 The 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 Upon receipt of the delinquency report, an appropriation control officer (ACO) will notify the respective 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 the TWC and to 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 the TWC and send them to the ACO for central entry.

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Changes to this Document
Date Updates
09/08/2017 Updated through the acts of the 85th Legislature, Regular Session
09/03/2015 Updated through the acts of the 84th Legislature, Regular Session; added CAPPS information
10/17/2014 RTI numbers updated for appropriation years 2015, 2016 and 2017
09/27/2013 Updated through the acts of the 83rd Legislature, Regular Session

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