Benefit Encumbrance Enhancement Is Here!

We are excited to announce that benefit encumbrance enchancement is live today, and displayed on the Payroll Encumbrance Summary report. In Web Management Reports, click on a hyperlinked encumbrance value on either the Summary of Revenue & Expense report or the Encumbrance Report to drill into the Payroll Encumbrance Summary report. The Benefit Encumbrance and the Encumbrance Benefit Rate are now displayed in two new columns (remember to click “Expand” to see all columns).

The Calculations

The Encumbrance Benefit Rate is calculated each pay period as follows, using the most recent pay check within the last 90 days:

(sum of employer-paid benefits and taxes) √∑ (sum of earnings) = Encumbrance Benefit Rate

  • Benefits exclude supplemental retirement (MPP and 403SUP).
  • Earnings exclude cell phone reimbursement (CPA).
  • Employees who do not have a pay check within 90 days will show an Encumbrance Benefit Rate of zero.
  • Employees whose Encumbrance Benefit Rate is higher than 200% will be capped at 200%.
  • The rate will only be calculated for each employee whose salary is encumbered.

The Benefit Encumbrance is calculated daily, as part of the enhanced salary encumbrance process. This way, any changes made to distributions will be reflected the next business day in both the salary encumbrances AND the benefit encumbrances, too:

Encumbrance Benefit Rate * Salary Encumbrance = Benefit Encumbrance

Things to Remember

  • Benefit encumbrances are calculated, but not posted, for Fund 1001.
  • All posted encumbrances use Account 59000.

Ask UsPlease ASK US if you have any questions.