Reporting Employers may need to adjust for docked days in addition to normal monthly reporting. There are two things to consider for this type of adjustment:
| 1) Compensation Adjustment | 2) Time Worked Adjustment |
See how to break down each adjustment below and how these adjustments should be reported to TRS.
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Scenario 1: Employee’s monthly salary is docked for unpaid days in prior month.
If an employee’s salary is docked in the current month for unpaid days in a prior month, report the actual amount paid to the employee for the current month. No adjustment is needed for the prior month’s compensation. However, an adjustment is needed to adjust the time worked for the month with unpaid days.
Example: In September, an employee was reported with 20 days, 40 hours scheduled per week, and paid the monthly salary of $4500. In October, the employee worked 21 days total and was docked one day’s pay in the amount of $288.77 for an unpaid leave day in September.Compensation Adjustment: In October, the RE would report the actual paid compensation of $4,211.23 and report the time worked.
Days Worked Adjustment: Submit an RP25 to remove the one docked day from September’s report.
Hours Scheduled Adjustment: No adjustment needed to hours scheduled per week.
Please note: If the employee is subject to Statutory Minimum, the dock in compensation must also be made to the Statutory Minimum compensation. -
Scenario 2: Employee was overpaid in a prior report month, and no additional pay is being issued.
If the employee was overpaid and no additional services were rendered, submit an RP25 with negative adjustments to the month of overpayment.
Example: In December, an employee was reported with 18 days, 144 hours worked, and paid a monthly salary of $3650. The employee then terminated all employment as of Dec. 31. In January, the RE discovered the employee was overpaid by three days in December ($702.67) and no additional pay will be issued in January.
Compensation Adjustment: Once discovered in January, the RE would submit an adjustment for the overpayment that was issued in December by submitting an RP25 with a negative adjustment for the overpayment.
Days Worked Adjustment: The RP25 submitted will also need to include the negative adjustment for the actual days worked or paid leave in December.
Hours Worked Adjustment: The RP25 submitted will need to include the negative adjustment for the actual hours worked in December.
