TABLE OF CONTENTS
| Topics | Sections |
|---|---|
| OVERVIEW | 3.1 What is the purpose of this chapter? 3.2 What is the scope of this chapter? 3.3 What are the authorities for this chapter? 3.4 What terms do you need to know to understand this chapter? |
| RESPONSIBILITIES | 3.5 Who is responsible for the Service’s salary, allotments, and offsets? |
| PAYMENTS | 3.6 How do employees receive salary payments? 3.7 May employees still receive a payment by check? 3.8 How does Treasury issue payments by check? |
| ADDRESS CHANGES | 3.9 How does an employee update their official mailing address? |
| ALLOTMENTS | 3.10 What are discretionary allotments? 3.11 What are financial allotments? 3.12 What are health savings allotments, and how do employees establish them in Employee Express? 3.13 How does the Interior Business Center process allotments? 3.14 How do employees request allotments if they don’t have access to Employee Express? |
| OFFSETS | 3.15 Can an employee’s salary be offset because of a delinquent debt? 3.16 What percentage can an employee’s disposable salary be offset? 3.17 Where can employees obtain information about the Treasury Offset Program? |
| OVERPAYMENTS | 3.18 What happens if an employee receives an erroneous payment? 3.19 How are overpayments repaid to the Service? 3.20 How does the Government collect payments for debts from separated employees? |
OVERVIEW
3.1 What is the purpose of this chapter? This chapter describes the policy and responsibilities for salary payments, allotments, and offsets in the U.S. Fish and Wildlife Service (Service).
3.2 What is the scope of this chapter? All Service employees are subject to this policy.
3.3 What are the authorities for this chapter?
A. Claims for overpayment of pay and allowances, and of travel, transportation, and relocation expenses and allowances (5 U.S.C. 5584).
B. Commercial Garnishment of Federal Employees’ Pay (5 CFR Part 582).
C. Consent by United States to income withholding, garnishment, and similar proceedings for enforcement of child support and alimony obligations (42 U.S.C. 659).
D. Debt Collection Improvement Act of 1996 (Public Law 104-134).
E. Direct Deposit of Employee Pay; Department of the Interior (DOI) Human Resources Management Bulletin No. 96.3; November 20, 1996.
F. Electronic Distribution of Leave and Earnings Statements; DOI Personnel Bulletin No. 04-01; October 17, 2003.
G. Garnishment of Pay (5 U.S.C. 5520a).
H. Government Management Reform Act (GMRA) of 1994 (Public Law 103-356).
I. How will Treasury entities offset a Federal employee’s salary to collect a Treasury debt? (31 CFR 5.12).
J. Management of Federal Agency Disbursements (31 CFR Part 208).
K. Pay Administration (5 CFR Part 550).
L. Processing Garnishment Orders for Child Support and/or Alimony (5 CFR 581).
M. Prompt Payment Act, as amended (31 U.S.C. 3901 et. seq.).
N. Restriction on garnishment (15 U.S.C. 1673).
O. 344 Department of the Interior (Department) Manual (DM) 9, Waiver of Claims for Erroneous Payments.
3.4 What terms do you need to know to understand this chapter?
A. Allotment is a voluntary recurring deduction from pay that an employee authorizes to be paid to an allottee for a legal purpose.
B. Allottee means the person or institution to whom an allotment is made payable.
C. Assignment is an allotment established to satisfy a mandated deduction from pay, such as a garnishment, levy, or recovery of advances for travel expense.
D. Disposable pay means that part of the employee's current basic, special, incentive, retirement, and retainer pay, or other authorized pay remaining after deduction of amounts we are required by law to withhold. To calculate disposable pay, legally required deductions that must be applied first include: tax levies under the Internal Revenue Code (Title 26, United States Code); properly withheld taxes; Federal Insurance Contributions Act (FICA) amounts; Medicare; health, dental, vision, and life insurance premiums; and Thrift Savings Plan (TSP) and retirement contributions. Amounts we must deduct under garnishment orders, including child support garnishment orders, are not part of the calculation for disposable pay (see 5 CFR 550.1103).
E. Electronic Funds Transfer (EFT) is the electronic transfer of money over an online network. EFTs can be performed between the same bank or a different one and can be accomplished with several different types of payment systems.
F. EFT waiver allows employees to get paid by means other than through EFTs.
G. Employee Express (EEX) is an automated system that gives Federal employees a convenient way to make their payroll transactions and personal changes electronically (www.employeeexpress.gov).
H. Garnishment is an involuntary deduction from an employee's salary, such as for overpayments of salary, the recovery of advances for travel expenses, and for debts owed to creditors.
I. Levy is a deduction from an employee's pay for unpaid Federal, State, or local income taxes.
J. Salary offset means the withholding of amounts from the current pay account of a Federal employee to satisfy a debt that the employee owes to the United States.
K. Treasury Offset Program (TOP) is a fully automated, centralized offset program, operated by Treasury’s Bureau of the Fiscal Service that intercepts Federal and State payments to collect delinquent debts that are owed to those agencies.
RESPONSIBILITIES
3.5 Who is responsible for the Service’s salary, allotments, and offsets? See Table 3-1.
Table 3-1: Responsibilities for Salary, Allotments, and Offsets
| These entities… | Are responsible for… |
|---|---|
| A. U.S. Department of the Treasury (Treasury) | Approving or declining to approve EFT waivers. |
| B. Department’s Office of Financial Management (PFM) | (1) Submitting EFT waivers to Treasury for approval or disapproval, and (2) Approving or disapproving EFT waivers in the Financial and Business Management System (FBMS) based on Treasury’s response. |
| C. Department’s Office of Hearings and Appeals | Approving or declining to approve a waiver, in whole or in part, of a claim of $4,000 or more. |
| D. The Director | Approving or declining to approve Servicewide policy. |
| E. Directorate members (i.e., Regional Directors; Assistant Directors; Director, National Conservation Training Center (NCTC); Chief, National Wildlife Refuge System (NWRS)) | (1) Approving or declining to approve a waiver, in whole or in part, of a claim of less than $4,000 for an erroneous payment of travel, transportation, or relocation expenses or allowances; and (2) Recommending to the Department’s Interior Business Center (IBC) whether or not to approve or decline a waiver, in whole or in part, of a claim of less than $4,000 for an erroneous payment of pay or allowances made to employees. |
| F. Department’s Interior Business Center (IBC) | (1) Processing payroll and maintaining adequate records of employment information for disclosure to the employee and outside sources as prescribed by law, (2) Assisting employees with lost salary payments, (3) Pursuing collection of erroneous payments made to employees, and (4) Approving or declining to approve a waiver, in whole or in part, of a claim of less than $4,000 for an erroneous payment of pay or allowances made to employees. |
| G. Joint Administrative Operations (JAO), Administrative Operations Center (AOC), Human Resource Operations Division Chief | (1) Providing the IBC with the necessary input to make salary payments, allotments, and assignments; (2) Providing new employees with the appropriate EFT registration form and informing them of the EFT requirement; and (3) Providing guidance on payment-related issues as necessary. |
| H. JAO AOC Financial Operations Division Chief | (1) Providing guidance on payment-related issues as necessary, and (2) Pursuing collection of erroneous payments made to separated employees. |
| I. JAO AOC Human Resource Operations, Compensation and Benefits team | (1) Providing guidance on payment-related issues as necessary, and (2) Assisting employees without EEX access. |
| J. Employees | (1) Reviewing their salary payments and submitting any errors or changes to their payroll coordinators; (2) Receiving salary payments via EFT as a condition of employment, or applying for an EFT waiver if electronic payment would cause a hardship because of a physical or mental disability, or based on a geographic, language, or literacy barrier; and (3) Submitting erroneous payment waiver requests within 3 years immediately following the date of discovery. |
PAYMENTS
3.6 How do employees receive salary payments? The Government Management Reform Act (GMRA) of 1994, requires all Federal employees hired after January 1, 1995, to be paid by EFT unless Treasury grants a waiver.
3.7 May employees still receive a payment by check? An employee may apply to Treasury for an EFT waiver if an EFT would impose a hardship because of the employee’s inability to manage an account at a financial institution due to:
A. An impairment, or
B. The employee living in a remote geographic location lacking the infrastructure to support electronic financial transactions.
3.8 How does Treasury issue payments by check? When Treasury issues an employee’s payment by check:
A. It is issued only in the name of the employee. No one else has the right, nor can an employee assign the right, to receive payment. This should not be confused with a power of attorney, which an employee may execute as a personal matter to enable a bank or another person to cash the check for them.
B. Checks are mailed to a home, bank, or other address the employee designates.
C. If a check is not delivered in the mail or is otherwise lost or stolen, the employee must call the IBC Debt Management Branch and briefly describe what happened.
(1) The IBC Debt Management Branch will assist the employee to complete the Information for Reporting Non-Receipt of Hard Copy Salary Check form (Form A-10). IBC’s Client Interface Guide describes the form, which, when completed, they send to the IBC Payroll Operations Division for resolution.
(2) The employee may cash the original check if they find it before the replacement has been cashed, but the employee must notify the IBC Debt Management Branch immediately and return the replacement when they receive it. Likewise, the employee must return the original check after the replacement has been cashed.
ADDRESS CHANGES
3.9 How does an employee update their official mailing address?
A. Employees with access to EEX must update their official mailing address online at www.employeeexpress.gov.
B. Employees without access to EEX must complete the Request Official Mailing Address form (Form A-23) and send it to the Service’s Compensation and Benefits team for processing.
ALLOTMENTS
3.10 What are discretionary allotments? Discretionary allotments are recurring deductions that an employee authorizes to be taken from pay and disbursed on a monthly basis to an allotee for a legal purpose, e.g., child or spousal support. Employees may establish up to four discretionary allotments in EEX.
3.11 What are financial allotments? Financial allotments are voluntary deductions to be disbursed to financial institutions with EFT capability, e.g., sending a percentage of pay to a savings account. They do not include such items as charitable contributions, TSP contributions, garnishments, or union or other organizational dues. Employees may establish up to 16 financial allotments in EEX.
3.12 What are health savings allotments, and how do employees establish them in EEX? Health savings allotments allow employees to set up a savings account in which they can accumulate additional money on a tax deductible basis to pay for current or future medical expenses. To establish a health savings allotment in EEX, employees must:
A. Participate in a High Deductible Health Plan (HDHP) (see the Office of Personnel Management (OPM) Healthcare & Insurance website for more information),
B. Have no insurance coverage other than those specifically allowed, and
C. Not be claimed as a dependent on someone else’s tax return.
3.13 How does IBC process allotments? Allotments are noted on employees’ pay records as current deductions, and the IBC Payroll Operations Division schedules them as disbursement items. Funds are electronically transferred to the individual's financial institution.
3.14 How do employees request allotments if they don’t have access to EEX? Employees without EEX access may contact the Service’s Compensation and Benefits team for assistance.
OFFSETS
3.15 Can an employee’s salary be offset because of a delinquent debt? Yes.
A. All payments due to an employee (e.g., salary, travel reimbursement) are available to the Treasury Offset Program (TOP) for debts due to the Government.
B. Offsets against current salary are prohibited without the employee’s consent, except for:
(1) Recovery of advances for travel expenses (5 U.S.C. 5705),
(2) Internal Revenue Service (IRS) levies for unpaid Federal income taxes, and
(3) Erroneous payments made by the Service or elsewhere in the Department.
3.16 What percentage can an employee’s disposable salary be offset?
A. Federal tax and nontax debts. Up to 15% of an employee's disposable salary and up to 100% of travel-related payments can be garnished for Federal tax and nontax debts (e.g., IRS, private creditors, alimony, and student loans).
B. Child support. Up to 50-65% of an employee’s disposable salary and up to 100% of travel-related payments can be garnished for court-ordered child support debt.
3.17 Where can employees obtain information about the Treasury Offset Program? Employees must contact the agency to which they owe the delinquent debt to discuss the debt, issue refunds, or discuss payment arrangements. Employees may contact the TOP interactive voice response system at 1-800-304-3107 to obtain information about which Federal or State agency they should contact.
OVERPAYMENTS
3.18 What happens if an employee receives an erroneous payment? The Service may initiate the recovery of erroneous payments to employees by deductions from current salary. The IBC Payroll Operations Division is responsible for the necessary adjustment procedures and for notifying the employee.
3.19 How are overpayments repaid to the Service?
A. If the amount of the indebtedness is $50 or less, the IBC Debt Management Branch will notify the employee that they are recovering the amount of the indebtedness by payroll deduction.
B. If the amount of the indebtedness is relatively large, the IBC Debt Management Branch will consult with the employee to plan a schedule for liquidating the indebtedness within a reasonable time, either by cash payments or payroll deductions.
(1) The plan must provide for repayment within the anticipated period of employment and as promptly as possible without undue hardship to the employee.
(2) Outstanding travel advance repayments are exempt from the plan repayment method and must be collected from the employee as a lump sum.
(3) The plan for repayment must not require deducting more than two-thirds of the gross pay per pay period unless it is necessary to collect the erroneous payment within the period of employment. If the employee retires, resigns, or is otherwise terminated before the indebtedness is completely repaid, the IBC deducts the balance from amounts due to the employee from any source available, including Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) retirement plan funds.
C. The IBC Debt Management Branch advises employees of their right to question the determination of indebtedness, the proposed plan of liquidation, or to ask for a review by the:
(1) Department’s Office of Hearings and Appeals for amounts totaling $4,000 or more,
(2) IBC Payroll Operations Division for amounts totaling less than $4,000 for erroneous payment of pay or allowances, or
(3) Supervising Directorate member for amounts totaling less than $4,000 for erroneous payment of travel, transportation, or relocation expenses or allowances.
D. The employee is also informed by the IBC Debt Management Branch of their right to submit a claim for refund of any amount deducted from their salary for a debt that the employee believes was incorrect.
3.20 How does the Government collect payments for debts from separated employees?
A. When an employee transfers to another bureau or office within the Department before liquidation of the debt is complete, the IBC Debt Management Branch sends a copy of the liquidation plan to the receiving bureau or office, which should proceed to recover the debt according to the plan.
B. When an erroneous payment is discovered after an employee has been transferred from the Department to another Federal agency, the IBC Debt Management Branch bills the former employee for the amount of the erroneous payment and asks the employee's new agency to assist in the recovery of the amount due.
C. If an employee separates from the Federal Government, the IBC Debt Management Branch bills them for the amount owed and, if applicable, asks OPM to hold retirement payments (e.g., FERS, CSRS) until the debt is paid.