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PACT Charter School
7250 E. Ramsey Parkway
Ramsey, MN 55303

 421_Payroll Guidelines Policy

 Date created: 

 Committee Approval by: 

 Date Approved:

 Reviewed:

 20090324

 PRS

 20130502

  2015-16

 BRD

 20130613


POLICY STATEMENT

The goal of the Human Resource Department of PACT Charter School is to pay every employee accurately and on time.

POLICY

The representatives in the Human Resource Office have the responsibility for preparing the payroll for all employees. A Human Resource representative distributes all payroll related information. All compensation is processed on a semi-monthly basis.

The Human Resource representatives are responsible for the maintenance and verification of gross earnings. The Office is responsible for maintaining W-4 and Earned Income Credit records for withholding purposes. The Office maintains records of other payroll deductions including retirement contributions, insurance, and any other deductions. The Human Resource Office assists in the preparation and issuance of all federal and state income tax withholding statements (W-2 forms).

Functions of the Human Resource Office include: preparation and distribution of payroll, setting up direct deposit services, administration of the time and attendance management system, vacation, holiday and leave balances, processing the paperwork for external vendor payments and processing mandated and voluntary deductions, pre-tax deductions and employer contribution deductions.

The Human Resource Office will process all payroll tax information and file the returns in a timely manner. They will also prepare federal, state and other wage reports in a timely manner. (Quarterly) After completion of the quarterly reports the information is presented to the Personnel Committee to verify completion occurred in a timely manner.

The Human Resource Office will prepare, mail and investigate returned W-2 information.

PRACTICE

The Human Resource Office provides information relating to payrolls or individual employees’ earnings only to authorized individuals. The Human Resource Office furnishes state and federal agencies with statistical information upon request. Other information includes earnings statements for individuals seeking wage verification and sick leave and vacation records. All Human Resource documents and reports are confidential in nature and must be contained in a secured area.

PAY PERIOD – PAYDAY

Payday is scheduled semi-monthly per the pay schedule for a total of 24 pay periods in the fiscal year. If the pay date falls on a weekend or banking holiday, payday will be the prior business day.

Payroll checks and direct deposits of pay will not be released until the scheduled payday for each pay period. Employees are encouraged to use the online Employee Self Serve (ESS) option.

All electronic timesheets not properly completed and approved by the due date may not be processed until the next payroll.

LICENSED STAFF PAYROLL OPTIONS

Licensed staff members being paid on the 24 pay period schedule are eligible to elect a lump sum payment of the final five (5) payroll periods of the fiscal year. Licensed staff members must opt in to receive this payment no later than the All-Staff Orientation in August so the payroll system can be set up properly.

TIMESHEETS - TIME REPORTING (HOURLY EMPLOYEE)

Overtime will be paid to any hourly employee working greater than 40 hours in one week. The normal work week will be from Monday to Sunday for the purposes of calculating overtime. The calculation for overtime is based on working time; therefore a holiday is not included in the total. Holidays, paid time off and any other authorized leave may be paid on the basis of the employee’s normal workday, the proportion of full time equivalency and approved scheduled work hours.

EMPLOYEES RESPONSIBILITY (HOURLY EMPLOYEE)

  1. Time shall be reported to the nearest quarter (.25) of an hour. (For example if an employee arrives at 8:05am and departs and 3:20pm they should record time in at 8:00am and time out at 3:15pm) Do not use fractions, i.e., ½, ¼, etc.
  2. Employees are required to clock in/out on a daily basis.
  3. At the end of the pay period the electronic timesheet should be submitted and verified their supervisor for approval.

SUPERVISOR’S RESPONSIBILITY (HOURLY EMPLOYEE)

  1. The supervisor will review the electronic timesheet for accuracy, approve the timesheet and submit it to Human Resources for processing.
  2. The normal workweek will be from Monday to Sunday for the purposes of calculating overtime. Overtime is based on working time, therefore holiday or other non-work time such as PTO, is not included in the total.
  3. The supervisor, under the guidance of Administration, must authorize all overtime work for nonexempt employees in advance.
  4. Significant changes between scheduled hours and hours worked as indicated on the electronic timesheet, should be approved by the supervisor. The Administrative Office Staff and Human Resource Representatives will also have timesheets available. Timesheets will also be available on the PACT Charter School website. www.pact.charter.k12.mn.us.
  5. The supervisor determines scheduled workdays.

UNEMPLOYMENT COMPENSATION PROCEDURES

PACT Charter School has ten days to reply to the Unemployment Compensation Office. It is PACT Charter School’s policy to challenge all unwarranted benefit claims.
Upon receipt of a Claims Application Form, The Human Resource Office will complete the information requested.

OVERTIME

Eligible non-exempt employees are paid overtime at the rate of time and one-half, whenever they work in excess of 40 hours in a pay period week (Monday through Sunday).

COMPENSATING TIME OFF

PACT Charter School requires that all leave time (vacation, PTO, FMLA or any other leave authorized) be taken in one half or full day increments. All leave time requires an AESOP absence request. The employee will complete the AESOP absence request for all prearranged absences and a Human Resource representative will complete the AESOP request for short notice absences (i.e. same day or emergency.)

Jury Duty: When serving on a jury, please note the dates you served on the front of the electronic timesheet. The employee must also provide Human Resources with a signed letter or statement indicating the dates they are called for Jury duty.

AUTHORIZATION

No person’s names may be placed on a payroll without proper documentation on file with Human Resources, refer to the Alpha Checklist.

ELECTRONIC DIRECT DEPOSIT OF PAY

Electronic direct deposit is required for all employees. To begin the process, an employee must complete a Direct Deposit Authorization Form, with a voided check or voided savings deposit form attached. The information provided to Human Resources should have the routing and account number listed. An employee Direct Deposit Authorization Form is available from a Human Resources representative. Initial direct deposits and changes to direct deposits may take up to two pay periods to pre-note, per validation of account number with the bank.

DEDUCTIONS

Insurance, Medical and Dependent Care Deductions

Currently, deductions are authorized for group medical and dental insurance, employer sponsored dependent care and medical care. Group dental, medical and life insurance may be partially or fully sponsored by PACT Charter School. Direct deposit notices and paycheck summaries will reflect the employee and employer sponsored premiums. All deductions are taken out pretax.

Tax Deferred Retirement, PERA and TRA

All employees are eligible for participation in the 403(B) Retirement/Investment Plan. Brochures describing the 403B Plan are available in the Human Resource Office. The 403B plan deductions are withdrawn pretax on a per pay period basis. To initiate 403B deductions, an employee must complete a 403B Model Salary Deferral Agreement. The employee must elect to participate in the 403B retirement plan and on the Model Salary Deferral Agreement must elect a defined percentage of their gross income or flat dollar amount to be deducted. The employee must also complete a 403B Retirement Plan Application. Payments to the 403B Retirement Plan will be processed each payroll by the Human Resources Office.

Salary retirement deductions are calculated on the gross dollars less the retirement amount. Also, the gross dollars earned on the employee’s W-2 form are the gross dollars earned less the retirement amount, or the taxable gross.

The retirement contribution is not taxable income for the purpose of calculating withholding taxes or W-2 wages.

Public Employees Retirement Association, (PERA) or Teacher’s Retirement Association, (TRA) contributions are reflected on the employee’s paycheck. The employee will contribute a defined percentage of their gross wages to PERA or TRA through payroll deductions. PACT Charter School will contribute the employer portion of the contributions. Legislation will determine the percentages that the employee and employer must contribute. The Human Resource Office will generate the Salary Deduction Report for PERA and TRA, reporting the employee and employer contributions. The Salary Reduction Report will be filed electronically with PERA and TRA.

Public Employees Retirement Association, (PERA) and Teacher Retirement Association (TRA) payments will be processed using electronic filing and electronic funds transfer. PERA and TRA reporting and payments are processed for each payroll. PERA and TRA reporting must be completed in the required timeline or the employer may be subject to penalties and late fees.

Tax Deferred Retirement, 403B Contributions

All employees are eligible for participation in the 403(B) Retirement/Investment Plan. Brochures describing the 403B Plan are available in the Human Resource Office. The 403B plan deductions are withdrawn pretax. To initiate 403B deductions, an employee must complete a 403B Model Salary Deferral Agreement. The employee must elect to participate in the 403B retirement plan and on the Model Salary Deferral Agreement must elect a defined percentage of their gross income or flat dollar amount to be withdrawn. The employee must also complete a 403B Retirement Plan Application.
Payments will be made using the account payable process (check request) or using our current accounting software voucher system. Payments to the 403B Retirement Plan will be processed each payroll.

Social Security (Medicare)

The federal government establishes guidelines for certain deductions. PACT Charter School must withhold Social Security and Medicare taxes. These are known as FICA (Federal Insurance Contributions Act) taxes. The FICA tax actually consists of two taxes: Social Security, also known as Old Age Survivor’s Disability Insurance (OASDI) tax and Medicare tax. The federal government will determine the percentage that the employee and employer need to contribute. The tax is calculated by multiplying an employee's gross wages for a pay period by the tax rates. PACT Charter School is required to pay a matching amount of FICA (Medicare and OASDI/Social Security) taxes on each employee.

The employer deducts Social Security taxes/OASDI (Old Age Survivors Disability Insurance), from the employee’s paycheck, matches that contribution, and sends wage reports and taxes to the Internal Revenue Service (IRS) and Social Security. All reports are filed electronically each payroll and the payments are processed through electronic funds transfer. Reporting must be completed within 3 business days after the payroll pay date or the employer may be subject to penalties and late fees.

Federal Withholding Taxes

Federal income tax will be withheld on a graduated basis to a greater or lesser degree, dependent on the marital status and number of exemptions claimed by the individual on their W-4 form filed in the Human Resource Office. Special withholding based on a percentage of taxable wages or an additional set dollar amount, rather than by exemptions, is available. Special withholding can only be used if the resultant tax exceeds the normal tax, which would be withheld for the employee. Employees claiming 10 or greater exemptions will be reported to the Internal Revenue Service.

The employer deducts federal taxes from the employee’s paycheck and sends the wage reports and taxes to the Internal Revenue Service (IRS). All reports are filed electronically each payroll and the payments are processed through electronic funds transfer.

Tax tables will be updated periodically based on the Internal Revenue Service requirements. Reporting must be completed within 3 business days after the payroll pay date or the employer may be subject to penalties and late fees.

DECEASED EMPLOYEE EARNINGS

Any earnings due an employee at the time of death will be paid to the employee’s estate. Certified death certificate and or letter of administration or testamentary, (decedent's personal representative/s), must be presented at the Human Resource Office to secure this payment.

EARNINGS RECORD

Human Resource Office maintains a record of contributions, deductions, and earnings for all employees. This information is available to any employee desiring their earnings record. Employees may secure this data by using the Employee Self Serve option available on the PACT Charter School website under the staff resources, via mail or in person, but not by telephone. Employees have the option of using Employee Self Serve to see their past earnings statements.

DIRECT DEPOSIT REJECTIONS

If the Direct Deposit has been rejected or has failed to be deposited, the Human Resource Office will be notified of the rejection by the financial institution. The employee should complete a blank Direct Deposit Replacement Form. Direct deposit rejections are usually a result of an employee not reporting bank changes to the Human Resource department. It may take ten business days or greater to replace a lost, stolen, destroyed check or failed direct deposit.

EMPLOYEE STATUS

All former employees who were processed through payroll in the past, and return to PACT Charter School for any form of paid duty, will be processed through payroll. This may include occasional duties such as scorebook keeper, officiating, etc. It is the employee’s responsibility to inform Human Resources if they have any changes in deductions, direct deposit, etc. If Human Resources is not notified of any changes, the pay information will be processed through payroll with all deductions, direct deposit etc., remaining the same as it was prior to the employee’s term of their past position.

ADVANCES

PACT Charter School will not grant payroll advances for persons currently on a payroll.

PAYROLL CHANGES

Payroll changes will be completed and updated per PACT Charter School guidelines.

PAYROLL APPROVAL

The Executive Director will approve all payroll deductions by reviewing the Payroll Register for each payroll. The Payroll Register will be signed and dated by the Executive Director verifying that he/she has reviewed the information and provides approval.

W-2 INFORMATION

Description

A W-2 Wage and Tax statement is provided by PACT Charter School to each employee who received salary, wages and other payments through the payroll system during the prior calendar year. This includes paychecks dated January 1 - December 31st.

  • Regular employees will receive their W-2’s electronically through the Employee Self Serve (ESS) option, unless otherwise specified. Employees will be notified when W-2s are available and are able to print them at any point after that time.
  • Temporary, on-call/as needed and seasonal employees who are active in the payroll system at the end of the year will have their W-2’s mailed to them prior to January 31st.
  • For those who are inactive, terminated or separated from PACT Charter School during the past year, the W-2 will be mailed prior to January 31st.
  • For those who are inactive, termed or separated from PACT Charter School, that had previously elected the electronic W-2, the option will be deactivated and their W-2 will be mailed prior to January 31st.

PACT Charter School will send out reminders to all active employees to confirm that all the information listed on their paycheck is accurate and up to date. It is the employee’s responsibility to check their paycheck to confirm whether the address is correct. If not correct, the employee should visit the Human Resource Office to complete an updated address/emergency contact form.

Updating Contact Information

Employees can verify their personal contact information by logging in to the PACT Charter School website and visiting Employee Self Service.

  • Address changes must be made by the last payroll in December in order for the change to be reflected on the W-2.
  • The Human Resource representative will update the HRSmart system with any changes provided by the employee, making every effort to ensure employee information is up to date, on the Employee Paycheck Data screen on the HRSmart System.
  • Human Resources will confirm the local address with all separating employees through the exit interview process.
  • Human Resources will make every effort to be familiar with the W-2, so they can help employees who have questions.
  • Regulations
  • By law employers are required to distribute W-2's by January 31st.

Contact Person

If you are an employee, contact a Human Resource representative.

Lost or Missing W-2

  1. All requests for Replacement W-2s must be submitted in writing using the W-2 Replacement Form.
  2. Every effort will be made to handle W-2 Replacement requests in a timely fashion.
  3. Mail, fax or deliver the W-2 Replacement Request Form to the Human Resource Office. The forms will be available in the Human Resource Office at PACT Charter School, 7250 East Ramsey Parkway, Ramsey, MN 55303.
  4. A replacement W-2 form will be printed or copied and mailed first class to the address of your choice or held at the PACT Charter School Human Resource Office, 7250 East Ramsey Parkway, Ramsey, MN to be picked up.
  5. W-2's can only be picked up by the individual named on the W-2, with picture ID.

Please Note: Due to confidentiality issues, Human Resources cannot accept phone requests for or fax W-2's to employees.