Payroll deductions go unpaid for GovGuam - KUAM.com-KUAM News: On Air. Online. On Demand.

Payroll deductions go unpaid for GovGuam

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by Lannie Walker

Guam - This isn't the first time the Department of Administration has fallen behind in making payments for personal deductions to employees. The last government pay period left bills unpaid for many workers.

Hundreds of public sector employees could be facing fines for late payments to loan institutions as DOA has fallen behind on personal deduction payments - automatic deductions taken from employees paychecks that go directly to loan payments, savings accounts or insurance agencies. Acting DOA director Joey Manibusan told KUAM News, "Yes, we are behind for the last pay period; the paycheck we issued November 26 we have not dispersed the deductions for the employees for their savings accounts, loan payments, things like that. That's because of the cash shortage we've been experiencing."

DOA is hopeful lending institutions will be understanding, with Manibusan adding, "We tried to work with the financial institutions they have called in the past as far as this one here I have not received any calls yet."

While DOA plans to take care of the past due deductions next week, Manibusan isn't making any guarantees. "Well, I don't have a guarantee, but I am certainly going to make it a priority to get that thing out in time because we understand employees are expecting their money to get through their loan payments and things of that nature on a specific timeframe," he said.

While the unpaid deductions may be causing complications for some government employees the cause of the problem is simple: Manibusan says it boils down to the government's collections that he says just aren't "as good as they hoped they would be."

This cash crisis has resulted in one million dollars in personal deductions going unpaid.

Asked if there was anyway DOA could borrow the money or take it from somewhere else so employees don't have to suffer, he replied, "We are trying to do that, but that is something that I can't really deal with directly. For example, we have to work with authorization from the front office; if we were to take money borrow money from somewhere to take care of obligations so it is an option and we are exploring that."

The deductions only impact line agency employees who can opt to cancel their payroll deductions.

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