Michigan State University
Controller's Office

Administration Bldg
426 Auditorium Rd, Rm 305
East Lansing, MI 48824
517 355-5020

SECTION 56: Manual Payroll Disbursement

Last updated: July 2013

I. Description

The Payroll Office intends to run an off-cycle payroll process on a weekly basis to produce payroll checks for employees who should have been paid but were not, or when an employee has been materially underpaid due to a departmental or systems error. It is hoped that this frequency will provide quick enough turn around so that the impacted employees can accommodate a slight delay.

In cases where a delay of pay cannot be accommodated by the employee, a Manual Payroll Disbursement process has been developed. The Manual Payroll Disbursement (MPD) application provides a way, if necessary, to get money to an employee for the short time period until the payroll system can produce a payroll check for the amount owed the employee. The amount authorized on the MPD is a manual calculation (60% of gross pay) and meant to be a quick estimate to approximate the net amount due the employee. The Manual Payroll Disbursement will be deducted from the employee’s next payroll system check.

Note that the department should always contact the Payroll Office if it determines that the incorrect pay was a system error of some type regardless of the decision to request a Manual Payroll Disbursement.

II. How to Apply

When a department determines that a Manual Payroll Disbursement (MPD) should be issued the department should follow these steps to request a MPD for the employee:

  1. The department should call the Payroll Office (5-5010) and explain the circumstances surrounding the payroll problem. If the problem resulted from a departmental error, it is expected that the department will make every effort to correct the error (time entry, appointment processing, etc.). If the payroll problem was a result of a systems issue, the Payroll Office will pursue resolution. The Payroll Office will attempt to quickly assess the situation and provide information about the timing of the next payroll cycle so that the department and the employee can make an informed decision about the need to use the MPD process. Please note that if the corrected payroll is already in process, depending on the timing of the payroll cycle and type of error and its correction, an MPD may not be an option.
  2. The department completes Sections A, B and C on the Manual Payroll Disbursement application. The Payroll Office will rely on the department to as accurately as possible complete the estimated net wages due the employee in Section B. This calculation is meant to approximate the net pay due the employee which, when no other significant deductions are present, generally approximates 60% of gross pay. If the employee suggests that other deductions are present that information should be considered and the request for estimated net wages should be reduced by the anticipated deductions. The department must complete Section C providing account information approval by an HR Payroll Approver. A $40 processing fee will be charged to the department at the point of disbursement if the payroll error was a result of departmental error (Payroll Office determination). By signing the application, the sponsoring department authorizes the processing fee and also guarantees repayment of the MPD in the event that the employee’s net pay or future earnings are insufficient to repay the MPD.
  3. After the department completes Sections A, B and C, the employee should bring the application to the Payroll Office, Hannah Administration Building, 426 Auditorium Road Rm. 350 (hours 10am to 4pm) for their sign-off before being presented at the Cashier’s Office, Hannah Administration Building, 426 Auditorium Road Rm. 110 (hours 8:15am to 4:45pm) for the MPD. The employee must present a signed photo ID (MSU ID not sufficient) at the Cashier's Office.
  4. The amount of the MPD will be deducted from the next payroll system generated check. However, the employee will agree to the payment terms by signing part 2 of Section D at the Cashier’s Office prior to the MPD being processed.
  5. If the amount of the MPD exceeds the employee’s next system generated payroll check, the differential will be deducted from the following system generated check.

Questions can be directed to the Payroll Office at 5-5010 or e-mail payroll@ctlr.msu.edu.