VOUCHERING AND PAYMENT OF SALARIES AND ALLOWANCES
(CT:FIN-512; 05-27-2025)
(Office of Origin: CGFS/FPRA/FP)
4 FAM 551 GENERAL
(CT:FIN-512; 05-27-2025)
Descriptions of the basis of vouchering, personnel to be vouchered, method of vouchering, and the time and method of payment of salaries and benefits and the allowances which are paid by the payroll systems are found in 4 FAM 550.
4 FAM 551.1 Scope and Applicability
(CT:FIN-512; 05-27-2025)
a. This subchapter describes the vouchering and the payment of salaries and allowances.
b. Provisions of this subchapter are applicable to the Global Foreign Affairs Compensation System (GFACS) – American (GFACS AME) and Global Foreign Affairs Compensation System – Locally Employed Staff (GFACS LE) payroll systems.
4 FAM 551.2 Authorities
(CT:FIN-512; 05-27-2025)
a. Regulations relating to the preparation of payroll vouchers are issued by the Office of Personnel Management (OPM), the Office of Management and Budget (OMB), the Government Accountability Office (GAO), and the Department of Treasury.
b. The Treasury Financial Manual (TFM), Vol. I, Chapter 4A-2000, 4A-3000, and SR-99-5, Human Resources and Payroll Systems Requirements (1999), issued by the Joint Financial Management Improvement Program (JFMIP), provide requirements for vouchering and payment of salaries and allowances to employees.
4 FAM 552 METHOD OF VOUCHERING
(CT:FIN-512; 05-27-2025)
4 FAM 552.1 Basis for Vouchering
(CT:FIN-512; 05-27-2025)
a. Individual pay record data derived from official sources includes:
(1) Form SF-50, Notification of Personnel Action, data from the personnel system;
(2) Authority to pay telegram request from employee’s current payroll office; or
(3) Form JF-62, Personal Services Contracting Action.
Master files together with employee pay history and Time and Attendance (T&A) reports are the basis for rates and hours of pay.
b. Form SF-1190, Foreign Allowances Application, Grant and Report, authorizes or cancels payment of such post-specific allowances as post differential, danger pay, post allowance, temporary quarters subsistence allowance, living quarters allowance, and separate maintenance allowance.
c. Documents supporting deductions and allotments from gross pay include:
(1) Employee’s Withholding Allowance Certificate (and State versions thereof);
(2) Form TSP-1, Thrift Savings Plan Election;
(3) Form SF-1199-A, Direct Deposit Sign-Up;
(4) Form DS-1992, Allotment of Pay;
(5) Form SF-2809, Health Benefits Election;
(6) Form SF-2817, Life Insurance Election;
(7) Form TSP-20, Thrift Savings Plan Loan Application;
(8) Form SF-1187, Request for Payroll Deductions for Labor Organization Dues; and
(9) Form OPM-1654, Combined Federal Campaign Pledge Card.
d. Notification should be made by CGFS/F/RR, the legal office, or other applicable authority of authorization to garnish or withhold for debt to the United States Government.
4 FAM 552.2 Regular Payroll
(CT:FIN-512; 05-27-2025)
A regular biweekly payroll voucher is prepared to include all employees being paid. An Earnings and Leave statement showing pay, allowances, deductions, allotments, and net pay for a pay period and cumulative totals for the calendar year to date, along with leave balances at the end of the pay period, is available to employees each pay period.
4 FAM 552.3 Supplemental Payroll
(CT:FIN-512; 05-27-2025)
Under Global Foreign Affairs Compensation System – American (GFACS AME) and Global Foreign Affairs Compensation System – Locally Employed Staff (GFACS LE), when a payroll payment cannot be included on a regular payroll voucher, a supplemental payroll voucher may be prepared. All payroll data from the supplemental voucher must be entered into the payroll system.
4 FAM 552.4 Pay Periods
(CT:FIN-512; 05-27-2025)
The pay period for all employees must cover two administrative workweeks. Pay periods are numbered beginning with the first full pay period in a calendar year and ending with the last pay period which began in the same calendar year.
4 FAM 552.5 Payroll Vouchers
(CT:FIN-512; 05-27-2025)
The Department of Treasury prescribes the use of Form SF-1166, Voucher and Schedule of Payments for the purpose of making payments (I TFM 4A-3000).
4 FAM 553 CERTIFICATION
(CT:FIN-512; 05-27-2025)
4 FAM 553.1 Authority
(CT:FIN-512; 05-27-2025)
The responsibilities and accountability of a certifying officer are provided in 31 U.S.C. 3528. Department guidance on certification is provided in 4 FAM 430, Voucher Certification and Payment.
4 FAM 553.2 Responsibilities
(CT:FIN-512; 05-27-2025)
a. Prior to certification of the payroll voucher, verification must be performed to provide for accuracy and to reduce the possibility of unauthorized, fraudulent, and other irregular acts. In addition, the certifying officer will make such examination of the facts underlying the payroll voucher as is necessary to ensure the correctness and validity of the payment. The Comptroller and Global Financial Services payroll servicing offices in Charleston and Bangkok must have procedures in place for ensuring the validity of the voucher.
b. The payroll voucher must be certified by a duly authorized certifying officer who does not compute the individual amounts payable, maintain the payroll records, or distribute the paychecks. No employee may certify his/her individual disbursements but may certify a voucher for the Department payroll that includes his/her pay. The certified voucher schedule is transmitted to the Treasury or the U.S. disbursing officer (USDO) for payment.
4 FAM 554 PAYROLL PAYMENT
(CT:FIN-512; 05-27-2025)
4 FAM 554.1 Time of Payment
(CT:FIN-512; 05-27-2025)
Payments to employees of the Department and other agencies serviced by the Department payroll office must be made no later than the second Thursday after the close of the pay period.
4 FAM 554.2 Payday for Locally Employed Staff
(CT:FIN-512; 05-27-2025)
Payroll payments are made on the second Thursday after the close of the pay period unless local practices compel the designation of some other day for LE staff. Only requests that can be accommodated by the normal processing schedule may be considered. In such instances, the Deputy Comptroller for Global Financial Services may determine some other payday.
4 FAM 554.3 Source of Funds – Global Foreign Affairs Compensation System –American (GFACS AME)
(CT:FIN-512; 05-27-2025)
Payment is vouchered from the Department of State clearing account Undistributed Intragovernmental Payments, 19F3885.3, with simultaneous collection from pertinent appropriations of serviced agencies by the issuance of Form SF-1081, Voucher and Schedule of Withdrawals and Credits, as of the pay date. Form SF-1081 along with a detailed advice of charge is furnished biweekly to the agency which controls the charged appropriation. Both the charge and credit sides of the Form SF-1081, along with the Voucher and Schedule of Payments Form SF-1166, are reflected on the GFACS’ monthly Form SF-224, Statement of Transactions, to the U.S. Treasury. As the use of the clearing account is to serve as an operating medium, the account should maintain a zero balance.
4 FAM 554.4 Source of Funds – Global Foreign Affairs Compensation System – Locally Employed Staff (GFACS LE)
(CT:FIN-512; 05-27-2025)
Payroll costs are charged to pertinent agencies’ appropriations and reported to the U.S. Treasury monthly in the Central Accounting and Reporting System (CARS).
4 FAM 555 METHOD OF PAYMENT – U.S. CITIZENS
(CT:FIN-512; 05-27-2025)
4 FAM 555.1 Salaries
(CT:FIN-512; 05-27-2025)
a. Net pay of employees by Global Foreign Affairs Compensation System – American is transmitted by means of electronic funds transfer (EFT) using the Treasury Financial Communications System, where feasible. Direct Deposit Sign-Up Form SF-1199-A or a computer-generated facsimile must be completed and signed by the employee. When payments are not possible by means of EFT, salaries must be paid in U.S. Treasury dollar checks. Payment in foreign currency is not permitted.
b. All employees hired after July 26, 1996, are subject to mandatory EFT requirements consistent with the Debt Collection Improvement Act of 1996 (31 U.S.C. 3332). The law mandates (with some exceptions) EFT for all Federal payments. Recipients must designate one or more financial institutions or authorized payment agents to which such payments must be made. Recipients must provide agencies with the necessary information to make these EFT payments at the time the employee is hired. This applies to all employees of the Department of State as well as to employees of all agencies serviced by the Department of State.
c. Overseas, for non-U.S. citizen employees, including locally employed staff, personal service contractors, individuals hired through personal service agreements, and all benefit recipients, the Department of State will implement use of EFT to disburse all payments whenever it is consistent with the law and regulations of the receiving state, and practical when considering the banking infrastructure capabilities of the receiving state. The servicing CGFS center in conjunction with post management will determine on a country specific basis whether the capability exists to implement EFT payments for non-U.S. citizen employees. In some cases, where the law of the receiving state prohibits mandatory EFT, non-U.S. citizen employees may be given the option to use EFT. This determination will also be made jointly with post management.
4 FAM 555.2 Allowances
(CT:FIN-512; 05-27-2025)
In addition to the benefits that may only be paid via the payroll system, living quarters and temporary quarters subsistence allowance may also be paid through the payroll system. Information about living quarters allowance and temporary quarters subsistence allowance may be found in the Department of State Standardized Regulations (DSSR), Chapters 130 and 120, respectively.
4 FAM 555.3 Advances
(CT:FIN-512; 05-27-2025)
a. Advances, other than advance of pay, are not paid through the payroll system. However, repayment of an advance may be collected through the payroll system via a recurring deduction. When an advance of living quarters allowance is made, it is recorded from the signed request and approval form into the payroll system and its conversion from advance to earned expense is recognized biweekly.
b. If the servicing payroll office is unable to collect the total amount of the advance from a Department of State employee, the collection responsibility is passed to Accounts Receivable (CGFS/F/RR).
4 FAM 556 METHOD OF PAYMENT – Locally employed staff
(CT:FIN-512; 05-27-2025)
4 FAM 556.1 Salaries and Allowances
(CT:FIN-512; 05-27-2025)
Salaries and allowances of locally employed staff (LE staff) and personal services contractors and AMCITs are paid in the currency of the country where employed, except as otherwise authorized per 4 FAM 556.2.
4 FAM 556.2 Exceptions
(CT:FIN-512; 05-27-2025)
4 FAM 556.2-1 Immigration and/or Approved Visits to the United States
(CT:FIN-512; 05-27-2025)
The principal officer at a post is authorized to approve U.S. dollar payments by Treasury check to an LE staff employee when the employee is immigrating to or visiting the United States and the employee will be in the United States on the pay day. The check is forwarded to the employee in the United States.
4 FAM 556.2-2 Prevailing Local Compensation Practice
(CT:FIN-512; 05-27-2025)
a. If the prevailing local compensation practice allows payment in other than the local currency, the post may request permission for salary payment in such currency. Such requests may be made, provided the principal officer determines that:
(1) Such payment is permitted by local law;
(2) Payment will not encourage prohibited or illegal currency conversion by employees; and
(3) Payment does not conflict with U.S. goals.
b. If so determined, a request to pay in other than local currency should be made to the bureau’s executive director, explaining:
(1) Pertinent exchange controls of the receiving state;
(2) Pertinent local laws;
(3) Rates of exchange;
(4) Details of determination of prevailing practice; and
(5) Department of Defense (DoD) payment practices, if any, in such country.
c. The request must be reviewed by GTM, CGFS, and the regional bureau. CGFS must determine if processing such payments is administratively feasible. The regional bureau’s executive director is responsible for coordinating the review. If payment in other than local currency is approved, each subsequent salary change survey should review continuing conditions and need. The post must promptly inform the bureau executive director whenever conditions justifying such exception cease to exist.
4 FAM 556.2-3 Other Exceptions
(CT:FIN-512; 05-27-2025)
If a unique temporary personal situation creates such hardship as to justify payment in other than local currency for a specific individual on a humanitarian basis, a request for an exception may be made to the bureau’s executive director. Exception may not be granted for more than 6 months.
4 FAM 556.3 Payroll Deduction for Civil Service Retirement
(CT:FIN-512; 05-27-2025)
When an LE staff employee participates in the Civil Service Retirement System (CSRS), a deduction is made from salary as described in 4 FAM 542.2. The U.S. dollar equivalent of the employee deduction and the government contribution are computed and reported to OPM biweekly and credited to OPM’s trust account, Civil Service Retirement and Disability Fund, symbol 24X8135.8 on the monthly Form SF-1221.
4 FAM 556.4 Purchase of Retirement Credits
(CT:FIN-512; 05-27-2025)
a. The post may authorize an allotment of pay by Treasury dollar check (payable to OPM) when OPM has authorized an LE staff employee to make a deposit or redeposit for past creditable service. The employee authorization is accomplished through Form DS-1992.
b. The post personnel office must ensure that a Form SF-2803, Application to Make Deposit or Redeposit (CSRS), for each employee making a deposit has been prepared to accompany the check to OPM.
c. Voluntary contributions may be made by the employee to the Civil Service Retirement Fund to purchase additional annuity. Making such contributions is a matter between the individual employee and OPM, for which neither the Department, nor post, nor CGFS has responsibility. Necessary conversions of foreign currencies to dollars required for such contributions must be accomplished by the individual employee. Neither payroll deductions nor payments in dollar checks are authorized to facilitate purchase of additional retirement credit through voluntary contributions.
4 FAM 556.5 Currency Exchange Rates
(CT:FIN-512; 05-27-2025)
4 FAM 556.5-1 Salaries and Allowances Fixed in U.S. Dollars
(CT:FIN-512; 05-27-2025)
Salaries and allowances fixed in U.S. dollars, which are paid in equivalent local currency, are paid at the current rate of exchange at the time of payroll calculations. Exception to this may occur under unusual circumstances.
4 FAM 556.5-2 Salaries Fixed in Foreign Currency
(CT:FIN-512; 05-27-2025)
Where salaries and allowances are fixed in local currency and paid in local currency, U.S. dollar equivalent entries are computed for salaries and allowances as well as any Civil Service retirement, U.S. Social Security and Federal income tax withholdings and contributions by using the current rate of exchange at the time of payroll calculations.
4 FAM 557 EXTERNAL REPORTING
(CT:FIN-512; 05-27-2025)
The servicing payroll office submits various reports related to payroll payments to the appropriate agency or office.
4 FAM 557.1 Global Foreign Affairs Compensation System – American (GFACS AME)
(CT:FIN-512; 05-27-2025)
a. GFACS AME prepares the following external reports.
(1) Payroll Advice of Charge, Form FS-478, Net Disbursements and Collected Reimbursements, and Form SF-1081, Voucher and Schedule of Withdrawals and Credits (to serviced agencies biweekly).
(2) Form 941, Employer’s Quarterly Federal Tax Return showing compensation, federal income tax withheld, and Social Security taxes (to the Internal Revenue Service (IRS) quarterly).
(3) Form W-2, Wage and Tax Statement on taxable compensation and U.S. income taxes and Social Security taxes withheld (to the Social Security Administration (SSA) and pertinent states annually).
(4) Forms SF-2812 and SF-2812-A, Journal Voucher and Report of Withholdings and Contributions for Health Benefits, Group Life Insurance and Civil Service Retirement (by agency to OPM biweekly).
(5) Form DS-1834, Journal Voucher and Report of Withholdings and Contributions for Foreign Service Retirement Systems (to the Foreign Affairs Retirement and Disability System biweekly).
(6) Annual Reconciliation of Payroll Deductions transmits retirement withholdings and contributions summary (to parent agencies annually).
(7) Form SF-2806, Individual Retirement Record data for Department of State employees (to Retirement Accounts Division biweekly).
b. CGFS/F prepares the following external reports.
(1) Form 1099-INT, Statement for Recipients of Interest Income on interest paid of $600 or more in the calendar year (to IRS annually).
(2) Form SF-224, Statement of Transactions on disbursements and collections (to the General Ledger and Treasury monthly). GFACS reports to Treasury both the customer agency and the billing agency sides of any Form SF-1081 it issues.
4 FAM 557.2 Global Foreign Affairs Compensation System – LE Staff (GFACS LE)
(CT:FIN-512; 05-27-2025)
GFACS LE is integrated with the Regional Financial Management System (RFMS). CGFS prepares the following external reports.
(1) Obligation and liquidation reports FMC-60 and FMC-62 to agencies receiving allotment accounting services and a biweekly Payroll Expenditure report and a Payroll Advice of Charge report to other agencies.
(2) Form SF-1221, Statement of Transactions reflecting payments and collections by the USDO to pertinent agencies monthly.
(3) Form 941, Employer’s Quarterly Federal Tax Return showing compensation, federal income tax withheld and U.S. Social Security taxes paid to the Internal Revenue Service (IRS) quarterly on LE staff/permanent resident aliens (PRAs) and American citizens (AMCITs).
(4) Form W-2, Wage and Tax Statement on taxable compensation and federal income taxes and U.S. Social Security taxes withheld to Social Security Administration (SSA) on LE staff/PRAs and AMCITs annually.
(5) Forms SF-2812 and SF-2812-A, Journal Voucher and Report of Withholdings and Contributions for Health Benefits, Group Life Insurance and Civil Service Retirement for CSR to OPM biweekly.
(6) Local Employee’s Pay card for LE staff participating in the Civil Service Retirement System (CSRS) to headquarters of parent agency at least annually.
(7) Annual Reconciliation of Payroll Deductions transmits retirement withholdings and contributions summary for LE staff in the CSRS to parent agencies.
(8) Biweekly list on employee deductions and employer contributions for the social insurance of the receiving state or private insurance plans to post. Post is responsible for external reporting and payment for local social security program when it functions on other than a biweekly schedule.
(9) Income taxes of the government of the receiving state normally are not computed or withheld, however a report of payments made to an employee for the year may be applicable at particular posts.
4 FAM 558 and 559 UNASSIGNED