1000 Other Payroll Expenses (OPE)

Payroll Policy and Procedure Manual
Section 1000: Other Payroll Expenses (OPE)
Effective: 01/01/2001
Revised: 08/17/2011

 

Policy

1001 Charges for Other Payroll Expenses (OPE)

Payroll Policy and Procedure Manual
Section 1000: Other Payroll Expenses (OPE)
Effective: 01/01/2001
Revised: 06/04/2012

All employing units must pay Other Payroll Expenses (OPE).  OPE is the cost to the department of an employee in addition to the gross pay.  OPE is charged proportionately to each index an employee is paid from.  OPE costs can include any of the following items:

  • Employment Relations Board (Classified employees only)
  • Health Insurance
  • Medicare
  • Retirements
  • State Accident Insurance Fund
  • Social Security
  • Mass Transit Taxing Districts
  • Unemployment Insurance
  • Workers Compensation

Effective 7/01/2007,  OPE account codes (109xx) were further defined by type of pay and category of OPE: Medical, Retirement, Other.  The Other category encompasses employer paid taxes such as FICA, SAIF and Workers Compensation.

  • 10964 OPE Uncl Health/Life
  • 10967 OPE Uncl Retirement
  • 10968 OPE Uncl Other
  •  
  • 10974 OPE Class Health/Life
  • 10977 OPE Class Retirement
  • 10978 OPE Class Other
    • Temporary classified employees “Temps” use these account codes also.
  • 10987 OPE Student Retirement (for non-system student employees) Note: student does not become eligible until they’ve been employed at least 6 months and work a minimum 600 hrs in a calendar year.
  • 10988 OPE Student Other
  • 10994 OPE Grad Assist Health/Life
  • 10998 OPE Grad Assist Other
    • 10951-10952 Graduate Tuition Remission.   While Tuition Remission is not technically OPE, it is a deduction expense charged to the employing dept.   See PAY 302: Distribution of Tuition Remission Charges to Pay Indexes.

1002 Amounts

Payroll Policy and Procedure Manual
Section 1000: Other Payroll Expenses (OPE)
Effective: 01/01/2001
Revised: 03/09/2012

The amount of OPE paid for each employee is based upon their employment type, gross pay amounts, retirement eligibility, benefits and even job location.  OPE Rates can be found by accessing Banner form NTRFRNG.  OPE estimates can also be calculated via the Budgets OPE Tables calculator.  Certain OPE rates may change as frequently as every quarter, such as Unemployment, but these are typically minor amounts.

1002-01 OPE charges based on percentage of pay:

  • Social Security
  • Medicare
  • Retirement
  • SAIF
  • Unemployment Insurance

1002-02 OPE at fixed rates:

  • Health Insurance – a fixed amount subject to change each year or when the contract is renegotiated as part of a new benefit package.
  • Workers Compensation – based on number of hours worked with a cap.  It is a fixed amount at the cap for full-time, salaried employees.
  • Employee Relations Board – (Classified employees only) fixed monthly amount.

1003 Redistributions of OPE

Payroll Policy and Procedure Manual
Section 1000: Other Payroll Expenses (OPE)
Effective: 01/01/2001
Revised: 08/17/2011

  • When labor charges are re-distributed, OPE will follow the transaction at the current month rates. If an OPE rate has changed between the initial payment and the redistribution, some tiny OPE amounts may be left on the old labor.
  • OPE related to Non-cash earnings such as earn code FAN (non-cash awards) can be redistributed by redistributing the amount of that particular earn code.   As an example, the labor distribution form should specify only the earn code (FAN in this example) and should also indicate that the redistribution applies only to the month(s) and year for which the employee received the non-cash award.