Section: Financial
Policy Number: 3-18
Policy Name: Charging Unemployment Compensation Costs
Date: May 15, 1976
Revisions: June 5, 1989; April 11, 1991; July 16, 2001; July 1, 2005

  1. PURPOSE

    To outline the policy for the charging of Unemployment Compensation Costs.

    As the University's annual costs increase due to increases in the Unemployment Compensation Benefits, it has become apparent that the University Basic Budget can no longer assume the liability for Unemployment Compensation Benefits paid to former line item employees paid entirely, or in part, from Self-Supporting, Allocated, or Restricted accounts and for former Miscellaneous Wage employees regardless of their source of funding. Effective with benefits paid for the month of July 1976 and thereafter, Unemployment Compensation Benefits will be charged by Labor Relations in accordance with the following policy.

  2. POLICY

    1. Line Item Employees

      Unemployment Compensation benefits paid for former Line Item employees in Carry Forward (account code prefix 2-1), Allocated (account code prefixes 1-6 and 1-7), and Restricted (account code prefixes 3-X and 4-X) accounts will be charged back to the account from which the employees were paid. The charges will be prorated between accounts for employees paid from multiple sources. If that account has ceased to exist or cannot legally be charged for such benefits, such costs shall be charged to other funds available to the Department.

      In the case of costs incurred by Federal Contracts and Grants, which is assessed a charge on top of the indirect cost rate, the charges shall be made to the appropriate fund balance reserves established from these charges.

      Unemployment Compensation costs for former line item employees paid from Basic Budget (account code prefixes 1-1 and 1-3) will be charged to the Basic Budget Unemployment Compensation account administered by Labor Relations.

    2. Miscellaneous Wage Employees

      Unemployment Compensation benefits paid for unemployed persons who had earnings as Miscellaneous Wage employees at the University will be charged back to the account from which these personnel were paid regardless of the source of funds. The charges will be prorated between accounts for employees paid from multiple sources. If the account has ceased to exist or cannot legally be charged for such benefits, such costs shall be charged to other funds available to the Department.

      In the case of costs incurred by Federal Contracts and Grants, which are assessed a charge on top of their indirect cost rates, the charges shall be made to the appropriate fund balance reserves established from these charges.

Submitted by: Office of Labor Relations