The amounts deducted are recorded as liabilities until disbursed to a third party. DOI policy is that funds deducted for third parties are disbursed at the same time as payroll disbursements, unless the third party specifies an alternative payment schedule. Funds deducted from payroll and held pending disbursement are to be recorded as liabilities, segregated by payee, and transferred to deposit accounts. In the case of voluntary deductions, the payee must meet DASC's requirements for administration of the deduction and disbursement. The three main types of involuntary deductions are indebtedness to the federal government, administrative debt collection, and garnishment.
Involuntary deductions require some additional authorization and processing.
The involuntary deductions and processing are discussed below. Collection by salary offset shall occur only after the employee has been properly notified in accordance with the requirements of the Debt Collection Act. Debt related to travel is discussed in Chapter 13 Travel . The finance officer is responsible for processing employee debt, including notification to the employee in writing regarding any overpayment. An indication that the employee may elect to have the indebtedness liquidated by withholding from the employee's pay either in a lump sum or, if justified by the amount and the circumstances in the particular case, in installments of a specified amount each pay period.