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Payroll Adjustments and Special Payments (CHOP Checks)

State Controller Policy

Effective Date: 09/01/2005

Approved by: Leslie M. Shenefelt, Colorado State Controller

Purpose

The purpose of this policy is to set forth the procedure to correct errors that affect employee's pay and to clarify when the Central Payroll Section will produce a hand drawn check (i.e., CHOP checks).

Applicability

This policy is only applicable to those State Agencies and Institutions of Higher Education that use the Colorado Personnel & Payroll System (CPPS) to pay State employees.

Policy 

When errors are made while processing payroll, the error will be corrected on the next available pay date. At a minimum, payroll is processed four times each month. Specifically, there are two bi-weekly, one monthly and one adjusting payroll that are available for agency payroll officers to use to make payroll adjustments and special payments.

Exceptions to this policy

The Central Payroll Section will only issue CHOP checks for the following circumstances:

  • When an employee is terminated (necessary to comply with Fiscal Rule 9-3)
  • Employee settlement payments (wages only -determined by the agreement)
  • Errors that result in the employee being underpaid by more than 10 percent of the employee's regular gross pay.
  • Errors that result in the employee being overpaid by more than $200.
  • Refunds of Garnishments in excess of$200.
  • Errors on an employee's final paycheck when the employee is terminating voluntarily (e.g., retirements and resignations). 

The State Controller may authorize the issuance of a CHOP check based on a written request from an Agency Controller.