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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

June 3, 2011
June 3, 2011
Payroll Services

 

Part 13. Payroll Services - Table of Contents


13.2.2. ENCUMBERED AND UNENCUMBERED PAYMENTS

Salaries and wages paid through Payroll Services to employees of The University of Texas at Austin can be classified as either encumbered or unencumbered payments.

A. Encumbered Payments

Salaries of employees assigned to monthly positions are encumbered, meaning the funds in the account have been reserved and cannot be used for other purposes. A salary encumbrance does not extend beyond the fiscal year and occurs at final approval of an employee’s assignment.

B. Unencumbered Payments

Unencumbered payments have not been previously reserved. Unencumbered payments include wages to hourly employees as well as other payroll payments processed via electronic and paper payroll documents for semi-monthly paydays. Because unencumbered funds have not been previously reserved, funding must be available at the time payment is processed.

 

 

Part 13. Payroll Services - Table of Contents