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CY Cancellations, Adjustments and Refunds Processed After the File Split

If you need to cancel, adjust or process a refund of a CY payment after the file split, you must do so online through the NY files. There are eight processes that can be performed in the NY files to update the CY files through batch processing. They are:

  • CY warrant cancellations
  • CY direct deposit callbacks
  • CY bank-returned money
  • CY employee-returned money
  • CY payments generated (Doc Type 5)
  • CY pretax deduction refunds
  • CY post-tax deduction refunds
  • CY regular adjustments (+/- with .00 net)

If you are processing a CY cancellation, callback, returned money or adjustment on an inactive employee (status 7), use the HØBUS screen to change the employee status to 3 in the NY files.

CY Warrant Cancellations

A warrant cancellation is necessary when the payroll officer determines that a system-generated payment is incorrect and must be reversed from USAS and USPS 2018 files.

Use the HPCAN screen to enter CY warrant cancellations. Based on a CY payment date, the system allows only a P in the YQ field. This action will result in the following:

  • Prior Quarter to Date accumulators on the NY files are reduced by the appropriate amount (no impact on the NY W‑2 or 941).
  • YTD accumulators on the CY files are reduced by the appropriate amount; the change is reflected on the CY W‑2.
  • PQTD accumulators on the CY files will be reduced by the appropriate amount; rerun fourth-quarter reports to reflect the change.

In addition, on the next final payroll:

  • The cancellation or reversal information is sent to USAS via the NY USPS/USAS Interface.
  • The Payment History (HØH) is updated.
  • The P in the YQ field is changed to a C during batch processing, and the CY YTD accumulators are updated.

CY Direct Deposit Callbacks

A direct deposit callback occurs when an agency contacts the Comptroller’s Fiscal Management Division to recall a direct deposit after the direct deposit deadline, but prior to the payment date. This may occur because of death, termination or retirement.

The direct deposit is returned to the Comptroller of Public Accounts, Treasury Operations Division. Fiscal Management then transfers the funds to the proper agency, using T-code 188, PCA 99914, comptroller object 3790 and agency fund 9014.

Before entering the callback in USPS, use the USAS 57 screen, agency fund 9014, to make sure the amount to be recovered is available — otherwise, your payroll will fail for funding.

Use the HPCAN screen, reason code CB1, to process callbacks/returned money in USPS.

Based on a CY payment date, the system allows only a P in the YQ field. This action results in the following:

  • PQTD accumulators on the NY files are reduced by the appropriate amount. This will not affect the NY W‑2 or 941.
  • YTD accumulators on the CY files are reduced by the appropriate amount; the CY W‑2 will reflect the change.
  • PQTD accumulators on the CY files are reduced by the appropriate amount. Rerun fourth-quarter reports to reflect the change.

In addition, on the next final payroll:

  • The funds are transferred from fund 9014, PCA 99914 and comptroller object 3790, using T-code 869R and the net posted to the agency operating fund, using T-code 863R.
  • The callback is updated in USAS via the USPS/USAS Interface.
  • The History (HØH) is updated.
  • T-codes 864R-868R will be generated to reverse deductions.

CY Bank-Returned Money

Bank-returned money occurs when the bank rejects a direct deposit because of an incorrect routing or account number, or because the account has been closed. On the HPCAN screen, bank-returned money can be reversed and reissued for the same amount on the same nightly cycle, without affecting accumulators.

The returned money is returned to the Comptroller of Public Accounts, Treasury Operations Division. The Fiscal Management Division then transfers the funds to the proper agency, using T-code 188, PCA 99914, comptroller object 3790 and agency fund 9014.

Before entering the bank-returned money in USPS, use the USAS 57 screen, agency fund 9014, to make sure the amount to be recovered is available. Otherwise, your payroll will fail for funding.

Use the HPCAN screen, reason code CB1, to enter CY bank-returned money on the NY files. For a reverse/reissue, the system allows only a blank in the YQ field, MC is Ø and TYP is RR. This action will result in the following:

  • CY accumulators will remain unchanged.
  • NY accumulators will remain unchanged.
  • Report 527 will show an out-of-balance between the HØA (tax master file) and the HØN (employee pay history) databases throughout NY. Corrections are not needed.

In addition, on the next final payroll:

  • The funds are transferred from fund 9014, PCA 99914 and comptroller object 3790, using T-code 869R and the net posted to the agency operating fund, using T-code 863R.
  • The return money is updated in USAS via the USPS/USAS Interface.
  • The History (HØH) is updated.
  • T-codes 864R-868R will be generated to reverse deductions.

CY Employee-Returned Money

Employee-returned money occurs when the employee reimburses your agency for an overpayment by making a personal check payable to your agency for the net amount overpaid.

The agency deposits the funds using T-code 188, PCA 99915, comptroller object 3790 and agency fund 9015.

Before entering the employee-returned money on the HTMU1 screen, use the USAS 57 screen, agency fund 9015, to make sure the amount to be recovered is available. Otherwise, your payroll will fail.

Employee-returned money is processed on the HTMU1-U2/ HTMMB screens on the NY files. You must use reason code (REAS) RM to indicate employee-returned money. For more information about how to process returned money, see Chapter 11 “Cancellations & Reversals/Adjustments/Pending File Maintenance” of the USPS Process Guide.

Based on a CY payment date, the system only allows a P in the YQ field. This action results in the following:

  • PQTD accumulators on the NY files are reduced by the appropriate amount. The change will not affect the NY W‑2 or 941.
  • YTD accumulators on the CY files are reduced by the appropriate amount. The CY W‑2 will reflect the change.
  • PQTD accumulators on the CY files are reduced by the appropriate amount. Rerun fourth-quarter reports to reflect the change.

In addition, on the next final payroll:

  • The employee-returned money is transferred from fund 9015, PCA 99915 and comptroller object 3790, using T-code 869R.
  • The net amount returned will post to the agency’s operating fund using T-code 863R.
  • The CY returned monies are updated in USAS via the 2018 USPS/USAS Interface.
  • The History (HØH) is updated.

CY Payments Generated Outside of USPS

Refer to these processes in the CY Warrants Issued Outside of USPS section of this manual.

CY Pretax Deduction Refunds

Enter CY pretax deduction refunds on the HUEUD screen. The result of batch processing is as follows:

  • NY MTD, QTD and YTD for all applicable tax and taxable accumulators will be increased by the appropriate amounts.
  • FIT, OASDI, and HI taxes will be withheld automatically.
  • NY MTD, QTD and YTD for the appropriate deduction will be decreased by the amount entered.
  • A NY warrant for the designated amount will be generated.
  • History (HØH) will be updated.

Note: The CY files will be unaffected by this activity.

CY Post-tax Deduction Refunds

You must enter CY post-tax deduction refunds on the HUEUD screen on the NY files. The result of batch processing is as follows:

  • NY MTD, QTD and YTD net will be increased and the appropriate deduction will be decreased by the corresponding amount.
  • A NY warrant for the designated amount will be generated.
  • History (HØH) will be updated.

Note: The NY files will be unaffected by this activity.

CY Regular Adjustments (+/- with .00 Net)

Adjustments with no net effect are necessary when the deduction amount was correct, but the type was incorrect.

CY regular adjustments using +/- with .00 net can be processed on the appropriate HTMU1-2 or HTOUA screen. Based on a CY payment date, the system will force a P in the YQ field. This action will result in the following:

  • PQTD accumulators on the NY files will be adjusted by the appropriate amount. The change will not affect the NY W‑2 or 941.
  • YTD accumulators on the CY files will be adjusted by the appropriate amount, and the change will be reflected on the employee’s form W‑2.
  • PQTD on the CY files will be adjusted. Rerun fourth-quarter reports to reflect the change.

With the next final payroll:

  • The CY adjustments will be updated in USAS via the USPS/USAS Interface.
  • The History (HØH) will be updated.
  • A Report 3011 will generate. See the Reconciling Report 3011 and Report 527 section of this manual.

Note: This process is only valid until the W‑2s are processed for your agency. Once your W‑2s have processed, adjustments can only be made by the Comptroller’s office. Usually this requires a 941x and a W‑2c.

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