FP-15
PAYROLL PROCEDURES
Contents:
I. GENERAL PURPOSE AND SCOPE
II. OWNERSHIP AND USAGE OF PERSONNEL/PAYROLL FILES
III. TIME REPORT PROCEDURES
IV. FISCAL YEAR SALARY ALLOCATION
V.. RETENTION OF TIME REPORTS
VI. STUDENT TIME REPORT PROCEDURES
VII. LEAVE PROCEDURES
VIII. EXTRA COMPENSATION REQUEST
IX. CHECK STUB AND DIRECT DEPOSIT
X. W-2 PROCEDURES
XI. PAYROLL RESPONSIBILITY
XII. DEPARTMENTAL OFFICES RESPONSIBILITY
XIII. DIRECT DEPOSIT OF PAY
XIV. DISTRIBUTION OF SALARY PAYMENTS
XV. SUPPLEMENTAL PAY
XVI. TERMINATIONS
LINK TO FORMS
I. GENERAL PURPOSE AND SCOPE
The Banner Human Resource/Payroll (HR/PR) system at East Tennessee State University includes the Payroll and the Human Resources functions. This section of the Financial Procedures Manual addresses Payroll Policies and Procedures. It is not intended to be all-inclusive, and therefore will not contain all policies and procedures. These may be found in the
Tennessee Board of Regents Policies and Guidelines, the
ETSU Faculty and Staff Handbooks and the
Human Resources Polices and Procedures Manual.
II. OWNERSHIP AND USAGE OF PERSONNEL/PAYROLL FILES
Human Resources is considered the owner of the human resources and payroll data and Human Resources and the Payroll Office are the authorized offices to update the on-line files. Anyone needing access to the HR/PR data must complete a Banner HR Computer Account Request Form, obtain the appropriate signatures and return the form to Human Resources for approval and further processing.
III. TIME REPORT PROCEDURES
ETSU uses the Time Reporting System (TRS) to report employee work time or leave time that will be used for the preparation of the payroll.
In order for an employee to be paid, an individual time report must be completed by the employee, approved by the supervisor and submitted to the department time preparer. The time preparer will enter the information into the TRS. Each department must have at least two employees trained to enter data into the TRS system, a primary time preparer and an alternate. Departments are responsible for entering the departmental data into the TRS system by the dates published in the TRS time report schedule.
In rare instances, the Payroll Office will enter departmental timesheets when both time preparers are unable to perform their assigned duties due to emergency unplanned absences. The Payroll Office must receive the original timesheet for data entry. Copies can not be accepted. Faxes may be sent from off-campus locations to be followed by the original timesheet through the mail. To complete the data entry, the timesheet must have employee name, position number, title, Banner ID number or Social Security number, timekeeping location and period ID. Payroll can not process incomplete timesheets.
Departments will be charged an overhead fee of $10 per time sheet for time sheets that are not entered by the department but are forwarded to the Payroll Office after an employee has been setup for processing through the TRS system.
The individual time reports will be distributed by the department time preparer at the beginning of a pay period for use during the current pay period. In the case of a new hire, an individual time report will be given at the time of their hire.
The time report contains the following information:
Completion of the individual time report is governed by the following:
1. TEMPORARY/HOURLY EMPLOYEES will record actual hours worked by day on the third line of the individual Time Report. THESE INDIVIDUALS WILL NOT RECORD LEAVE TIME.
2. SUPPORT STAFF (clerical and others) will record time not worked due to authorized leave on the top two lines of the individual Time Report as indicated. Codes for leave types are listed at the bottom of the form. Support staff are required to record regular hours worked. These hours should be recorded on the third line.
The account to be charged must be identified if other than the Home Account. Support staff should record overtime worked on the overtime (OT) line provided and the indication as to "paid" or "banked" marked on the "category" (CD) line. An employee must receive the approval of their supervisor prior to working any overtime.
3. ADMINISTRATIVE EMPLOYEES will record time not worked due to authorized leave on the top two lines of the individual Time Report as indicated. Codes for leave types are listed at the bottom of the form.
4. FACULTY will record time not worked on the top two lines as indicated. Codes for leave types are listed at the bottom of the form. (Most faculty do not earn Annual leave; therefore, if this is the case that code should not be used.)
IV. FISCAL YEAR SALARY ALLOCATION
The assignment of an individual’s time and effort on state, restricted, and foundation funds is critical in record maintenance of the university. Failure to properly allocate time and effort could result in disallowance of expenditures by granting agencies. The fiscal year salary allocation form must be used to change the allocation of an individual’s time and effort to the proper fund(s). This form is not used for an initial hire. In order to have timely submissions and correct accounting of an individual’s effort the following policies must be followed:
1. A fiscal year salary allocation form should be completed and approved no later than one month from the effective date of the change. As an example, if the start date was July 1st, the change of status should be approved by all parties and in Human Resources prior to August 1st.
2. A pre-award should be completed through the Office of Research and Sponsored Programs Administration if there will be delays in the assignment of a grant or contract number due to signatures or contract negotiations. A pre-award will permit grants and contracts accounting to provide a new fund number, in which the individual’s effort can be properly assigned.
3. Any retroactive fiscal year salary allocation for academic units beyond the one-month period will require a service charge of $500.00 to the dean’s account of the respective college for each change of status. The Vice President or President will determine the appropriate account to be charged for non-academic units. Exceptions to the charging for retroactive change of status beyond the one month period will require the approval of the Vice President for Finance and Administration.
The attached fiscal year salary allocation form (Exhibit 15.D) must be used for all transactions affecting an individual work allocation after the initial hire.
V. RETENTION OF TIME REPORTS
The individual time reports will be filed in the originating department for a period of five years as back up for entries to TRS. When the Payroll Office enters the timesheet data for the department, the original timesheet will be filed in the Payroll Office for a period of five years as back up for entries into Banner.
VI. STUDENT TIME REPORT PROCEDURES
The Student Payroll function is processed through the HR/PR system. The Financial Aid Office controls or monitors a student’s eligibility to participate in the Federal Work Study Program (FWSP) or the Regular Student Work Program (RSWP). (Students on the Academic Performance Scholarship - APS are not included in the HR/PR system unless they also receive RSWP wages. The APS is a scholarship.)
Students desiring to work on FWSP or RSWP must apply through the Financial Aid Office. When the application process is complete and the program (FWSP or RSWP) determined, the student may interview for jobs advertised in that program. The student is considered hired for the job when the department signs and returns the "Request to Hire" to the Financial Aid Office. The Financial Aid Office will activate the student information on the HR/PR system and should provide the individual time report to the student to record the hours worked. The department time preparer will enter the information into the TRS.
VII. LEAVE PROCEDURES
Each office will be responsible for monitoring the leave balances of its employees. Leave liability reports are available on ePrint for authorized users. Anyone needing access to the HR/PR data must complete a Banner HR Computer Account Request Form, obtain the appropriate signatures and return the form to Human Resources for approval and further processing. Because leave is reported in the month after it is taken, it is important to notify the Payroll Office and the Office of Human Resources when an employee is about to exhaust or has over-expended leave. Departments must notify Human Resources ten working days prior to the pay date when employees have exhausted all available leave balances. Timely notification will prevent incorrect checks being issued. If payment is improperly issued due to a department not making timely notification, the departmental budget will be charged if the funds cannot be collected from the employee.
The leave type entered on the Time Report and in the TRS should accurately reflect the reason an employee is not at work. The system will automatically move from sick leave to annual leave to leave without pay when it has used the entire balance.
VIII. EXTRA COMPENSATION REQUEST
Extra compensation is defined as any work outside of the normal contract and must be paid through payroll. The Request for Extra Compensation form is used to document these earnings for all ETSU employees including the College of Medicine and Family Practice personnel. Examples of these earnings are non-degree instruction (CEU's), grants such as project directors, and extra or additional Memorial Center support by physical plant. The Request for Extra Compensation is processed through the Office of Human Resources to the Payroll Office. This form is not for use on overtime, faculty overloads, or non-employees who provide one-time services for the university. The Request for Extra Compensation form will not be accepted more than one month in advance. Any questions concerning the use of this form should be directed to the Office of Human Resources.
IX. CHECK STUB AND DIRECT DEPOSIT
All employees receive notification of payment through non-negotiable direct deposit statement. During the pay cycle of employment, payment may be made through a negotiable check while direct deposit information is verified. Information on the direct deposit or check stub includes:
1. Employee name
2. Social security number or Banner Employee ID number
3. Pay number
4. Payroll period
5. Deposit number
6. Deposit amount
7. Pay type
A complete listing of all pay categories represented in the Current Gross Pay amount will appear in the Pay Type explanation portion of the statement. Each pay category will be identified in the description column, and the appropriate units and/or dollar amounts will be listed. Explanations of each category may be found on the Human Resources web page (http://www.etsu.edu/humanres/default.aspx).
8. Taxes and deductions
A similar listing of all taxes and deductions will appear in the column on the right with current and year-to-date amounts.
9. Deposit summary with a listing of bank deposit amounts, and net pay totals.
10. Year to date gross
11. Deposit date
12. Leave balances
13. Federal filing status
14. Delivery location
REMEMBER: Leave balances do not include any leave taken during the reporting period being paid.
Leave balances are calculated according to the following formulas:
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Semi-Monthly Employees |
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August 15 payroll run |
balance as of 7/31 - leave taken 7/16-7/31 balance as of 8/15 |
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August 31 payroll run |
balance as of 8/15 + accrual for 8/1-8/31 - leave taken 8/1-8/15 balance as of 8/31 |
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Monthly Employees |
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August 31 payroll run |
balance as of 7/31 + accrual for 8/1-8/31 - leave taken 7/1-7/31 balance as of 8/31 |
EXCEPTION: The July 31 leave totals represent the July 1 beginning balance plus the employee's leave hours accrued in July. The July 1 balance reflects the June 30 balance plus any adjustments made due to the maximum limits for annual leave established by the Tennessee Board of Regents Policy 5:01:01:01, Section II.
X. W-2 PROCEDURES
W-2 forms are printed during the month of January and distributed to employees by January 31. The Payroll Office is responsible for verifying the total earnings and taxes. The Financial Accounting Office is responsible for the distribution of the forms. The W-2's will be distributed to the check distribution location for all employees (former or current) unless the Financial Accounting Office has been notified of a different mailing address. Departments are responsible for ensuring that W-2’s are mailed to all non-current employees by January 31. All questions concerning distribution of the W-2 should be referred to the Financial Accounting Office (96107). Questions concerning the amounts on the W-2 should be referred to the Payroll Office (95665).
XI. PAYROLL RESPONSIBILITY
The Payroll Office has responsibility and control of payroll source documents including, but not limited to, copies of Change of Status forms, authorization forms for payroll deductions, and Request for Extra Compensation. The Payroll Office monitors leave used, hours worked for hourly employees, calculates overtime hours for non-exempt employees, and enters extra compensation, deductions, benefits, taxes, position assignment transactions, and assignment changes. They also balance the payroll calculations to control totals, schedule payroll runs, and create federal and state government reports (including but not limited to W-2s, 941s, state retirement, and employment security).
XII. DEPARTMENTAL OFFICES RESPONSIBILITY
XIII. DIRECT DEPOSIT OF PAY
Effective January 1, 2008 direct deposit must be used by all employees in compliance with TBR policy 5:01:00:00. Direct deposit is a process by which an individual's net pay is electronically transferred to the employee's account at a financial institution. The University does not require or recommend the use of any particular financial institution. Once authorized, direct deposit is utilized for all salary payments to an individual. New hires may receive one payment by check while direct deposit information is verified.
Each new employee must complete an Authorization for Direct Deposit of Pay. More detailed information about direct deposit is available in the Payroll Office, Human Resources, or the Financial Aid Office.
XIV. DISTRIBUTION OF SALARY PAYMENTS
Two three-digit codes are assigned to each department, one for direct deposit distribution (maintained by Human Resources) and one for time-keeping location (maintained by Payroll). These will be used to designate the timekeeping/distribution location on checks, direct deposit statements, and time reports. All checks and direct deposit statements will be sorted for distribution by the "check distribution" code and distributed by Financial Accounting. Persons with multiple labor distribution accounts will have their main department designated as their timekeeping/distribution location. Any special distributions should be handled by the Department Head. Supervisors who have a person working in their department who is charged against the budget of another department, should send a memorandum to the Human Resources Office requesting that individual's time report and check be sent to their department. This memo should be signed by both the supervisor and the budget administrator involved, and will be reviewed by Human Resources and Payroll before the reassignment of delivery location is made.
Pay Dates:
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Cut-off Dates:
All payments outlined above are contingent upon necessary forms, actions, and approvals being completed and submitted by the cut-off dates indicated above. Payments authorized by the actions completed after the cut-off dates will be included on the next regular payroll for that person.
All new monthly-paid employees will receive their first payment on the next regular payroll, provided that all necessary forms, actions and approvals have been completed and are in Human Resources by the 10th of the month or the last working day prior to the 10th, and their first day of employment is during the current month. Employees whose paperwork is not received before the cut off date will receive their first payment at the end of the following month.
XV. SUPPLEMENTAL PAY
In cases where the required forms are not received in the appropriate offices by the dates noted above for inclusion in the current pay cycle, payment will be made on the next regular pay date (15th of the month for semi-monthly or end of month for monthly employees). Student employees who are affected by a delay in receiving a payment may apply for a short term emergency loan through the Bursar’s Office to be repaid upon receipt of his/her next pay check. If the amount of pay due is greater than $250 for students or $1,000 for non-students and the delay of pay will result in a documented extraordinary financial hardship to the employee, he/she may request a special supplemental check which will be distributed with the regular payroll on the next pay date (15th or end of month). The request must detail the financial hardship and reason for the delay in submission. The request must be approved by the employee's department head, dean and vice president, as well as the Associate Vice President for Financial Services. An administrative charge-back of $100 for students and $500 for non-students will be made to the requesting department for each special supplemental check.
XVI. TERMINATIONS
Departments are responsible for notifying Human Resources immediately if an employee leaves the employment of the department. If payment is improperly issued due to a department not making timely notification, the departmental budget will be charged if the funds cannot be collected from the employee.
LINKS TO FORMS
The following forms may be found on the Financial Services forms web page http://www.etsu.edu/fa/fs/forms.aspx#Payroll.
Exhibit 15.A - Time Report
Word format
Exhibit 15.B - Request for Extra Compensation
Word format
Exhibit 15.C - Authorization for Direct Deposit of Pay
Word format
Exhibit 15.D – Fiscal Year Salary Allocation Form
Original effective date: October 1, 1987
Revised: June 1, 1989; November 15, 2001; September 26, 2006, February 11, 2008, June 5, 2008
Last review: June 5, 2008