Collection of Outstanding Travel Advances

Departments must adhere to the provisions of Government Code Section 19838 and SAM Section 8776.7 regarding notification and collection of overpayments from employees.  In addition, the following procedures which are specific to the collection of travel advances will be followed.

If an employee does not submit TECs to substantiate the travel expenses within 30 calendar days of the trip date, the total travel advance amount must be deducted from the next regular payroll warrant(s).
 
If an employee does submit TECs within 30 calendar days of the trip date, but does not return any excess travel advance amount within the same 30 calendar days, the excess travel advance amount must be deducted from the next regular payroll warrant(s).
 
If an employee has payroll direct deposit, the Accounting Services Department must notify the employee that if the 30 calendar day’s requirement is not satisfied the direct deposit will be cancelled and the payroll deduction for the travel advance amount will be made in the next regular payroll warrant(s).
 
An example of "deducted from the next regular payroll warrant" for Items above is as follows:

10/25/07—Employee is issued a travel advance.

By 11/29/07—Employee does not submit a TEC or return the travel advance.

12–1–07: Employee is sent a collection letter to request him/her to submit a TEC or return the travel advance by 12–15–07 (30 calendar days from the date of the collection letter).

By 12–31–07: Employee does not submit a TEC or return the travel advance.

By 1–15–08: For an employee who has direct deposit, the Accounts Payable Department must send a notification to the Payroll Office by the 15th of the month to cancel the direct deposit.

By 1–30–08: The travel advance amount is deducted from the regular payroll warrant for the January 2008 pay periode. 

Government Code Section 19838(c) and SAM Section 8776.7 limit payroll deductions to 25% of the employee's net (gross minus mandatory deductions) monthly or semi-monthly salary. 

Therefore, if the travel advance amount can not be deducted entirely from the payroll warrant in one month, the maximum deduction will be made in every subsequent month's regular payroll warrant until the outstanding travel advance amount is recovered.