|
PAYROLL
Discussion
Employee handbooks should address issues pertaining to
payroll and compensation. Important compensation issues include
timesheets, payday, payroll deductions, payroll problem resolution and
method of payment.
Time Sheets
Employers should maintain records of hours worked by
NPC employees and explain time-keeping requirements in the employee
handbook. Information on a time sheet should include the days worked,
starting time (time in), quitting time (time out), minus lunch and any
other unpaid breaks, the total number of hours worked each day and a due
date for the time sheet. In addition, the time sheet should include a
place for the employee’s signature and date, and the supervisor’s
signature and date.
Note: Record
keeping and scheduling polices are not a violation of the salary basis
test for exempt employees.
Employee absenteeism is one of the most frequent
problems faced by employers and is also the most frequent cause of
discipline. NPC should have specific procedures for reporting absences
and include them in the employee handbook.
Investigators, supervisors and NPC staff should
recognize the importance of accurate documentation for purposes of
employee discipline.
Sample Time Sheet
See also: Time
Sheets for VA-Paid NPC Employees
Payday
Whether an NPC runs payroll once a month or every two
weeks, NPCs should be aware that some states may have requirements on how
often employers must pay employees. Check with a local labor attorney to
find out the regulations in your state.
Payroll Deductions
The following are deductions from gross pay as
specified by law or as specified by the employee:
- Federal Income Tax Withholding (IRS Form W-2)
- State Income Tax Withholding (State Form)
- Social Security Taxes (Federally mandated)
- Medicare Taxes (Federally mandated)
- Employee contributions for health insurance
coverage
- Premiums for dependent insurance coverage
- Employee contributions to the 401(k) or 403(b)
retirement plan
- Other benefit deductions
See also: www.irs.gov
- Publication 15, Circular E, Employer's Tax Guide
Payroll Problem resolution
Problems with payroll can be incredibly time consuming
and costly (i.e., local and federal fines and penalties) if the problems
are not resolved promptly. Employees should, therefore, be instructed to
review their pay stub every pay period and report any problems
immediately.
Direct Deposit
Some states may require that an employer receive
written authorization before it can deposit an employee’s paycheck
directly into his or her bank account.
Sample Time Sheet Policy
NPC employees receive biweekly time and attendance
sheets used to account for hours worked. The time and attendance sheet
includes the employee’s name and dates of pay period as well as due
dates. Time sheets are to be filled out in ink. Time sheets are
used to determine pay and benefits earned each pay period by the
employee as well as for assigning payroll expenses to project accounts
and for financial tracking purposes. Therefore, an accurate account of
actual hours worked is essential.
Since lunch periods are not paid, deduct
lunch time
from the hours worked each day.
Time and attendance sheets are due in the NPC Office
on the last Friday of the pay period, or earlier if instructed by the
executive director. Investigators/supervisors and employees are
responsible for insuring that the time and attendance sheets are
completed, approved, and submitted on time to avoid delays in payroll
processing. Time sheets should be signed before processing for payment.
Option 1(good for use by
salaried employees): The first time a timesheet is submitted without appropriate signature(s),
a memo outlining the NPC’s payroll procedures will be sent to the
employee and supervisor. The second time, the paycheck will be processed
but not distributed until the signed timesheet is turned in. Thereafter
and without exception, time sheets submitted late or without a
supervisor’s signature will be not be processed until the next pay
period.
Option 2 (good for use by
hourly employees): NPC cannot pay employees that do not submit completed
and signed time sheets by the appropriate due date.
[When using either Option 1 or 2, NPCs
may want to have the employee sign a statement giving the NPC the right
to withhold payment. In some states, employers may not withhold
payment to employees without written consent.]
Non-exempt employees will be paid overtime
for hours worked over forty in one week (Sunday through Saturday).
Exempt employees will not be paid overtime.
VA employees working part-time for NPC
Time and attendance sheets for non-exempt VA employees
who also work for the NPC must show hours worked for the VA
and hours worked for the NPC (i.e., 8 hours from 8:00 am to 4:30 pm
for VA and 2 hours from 4:30 pm to 6:30 pm for NPC.) This will provide
documentation to prevent NPC pay from possibly overlapping VA employment
(i.e., dual compensation). In addition, because the VA and the NPC are
considered to be “joint employers”, both separate employers are treated
as one, such that forty hour trigger for overtime purposes is tripped by
the cumulative number of hours worked for both employers in the work
week. See 29CFR791.
Exempt VA employees may work part-time (hourly)
for the NPC provided work for the NPC is less than 20% of the week’s
total hours worked.
NPC employees are paid on a biweekly basis. Paychecks
are issued on the Thursday following the end of the biweekly pay period.
Paychecks or pay stubs will be available for pickup at the NPC office on
paydays from 10:00 a.m. until 5:00 p.m. - otherwise they will be mailed to
the employee’s address of record.
Direct deposit of employee paychecks is available.
Forms to authorize automatic deposits are available from the NPC Office.
Sample Time Sheet
Back to
Employment Practices and Benefits >
|
