Restriction on Payroll Adjustments

Effective September 1, 1997, no retroactive payroll adjustments will be allowed in circumstances where the proposed account to be charged is a scholarship object of expense and the original object of expense was wages, or the proposed account to be charged is wages and the original object of expense was scholarship. Because there are severe tax consequenses to making such changes, and because it is reasonable to assume that a department and payee are knowledgeable about the correct work or scholarship status, it is assumed that the initial classification of the payment was correct. Only in clearly documented cases of classification error will consideration be given to allowing retroactive adjustments.