1. Payroll & Labor – Policies & Practices February 11, 2009

2. Payroll & Labor – Policies & Practices o FY 2008 – Compensation and Benefits expense totaled over $1.5 billion o 67% of total operating expense for University (up 2% from prior year) o 48,000+ W-2s issued in CY 2008

3. Payroll & Labor - Policies & Practices Objectives for Today’s Session: o Payroll/Labor Policies o Provide familiarity with applicable payroll policies o Recordkeeping Requirements o Review recordkeeping requirements o Payroll/Labor Best Practices o Ensure accurate & timely payroll activities

4. Payroll/Labor Policies

5. IU Payroll/Labor Policies Dear Payroll Director: Our account manager asked me to find out whether Payroll can keep an employee’s final check from being directly deposited so that it can be held until that employee turns in any uniforms or other IU property that he/she may have. Thank you for your help on this. Sincerely, Joe Supervisor

6. IU Payroll/Labor Policies o Payroll Policy IV-40 –To provide a policy governing the distribution or withholding of distribution of payroll checks which are due and payable to employees.  Prevents the release of pay checks to employees before pay day except in certain circumstances  Pay checks may not be withheld from employees past the pay day

7. IU Payroll/Labor Policies Dear Payroll Director: I am looking for information about the salary and ranking for John Wayne Smith, an IU employee. His information didn’t make it onto the online database for this year, so I can’t get it online. I was told you can’t give out this information to me. Isn’t the information a matter of public record under the Freedom of Information Act, which is one reason why it is available on the web? Sincerely, Cindy Citizen

8. IU Payroll/Labor Policies o Payroll Policy IV-130 –To establish guidelines for access to information contained in the payroll files.  Can give very limited information about employees  Fiscal officer’s role is to see that departments understand which payroll information is restricted in order to protect employee’s privacy

9. IU Payroll/Labor Policies Dear Payroll Director: Due to illness, I had to be out of the office for a week. During that time I missed the deadline for the student 10 month payroll. I have done the appropriate adjustment vouchers for you to process online checks for those employees, however I am concerned about the distribution of those checks. I was told that only the Fiscal Officer or the students themselves would be able to pick up the checks. I would appreciate a one-time exception to this policy The Fiscal Officer is on administrative leave. Our associate directors would prefer that I pick up the checks myself, and not ask the students to go out of their way. Sincerely, Patsy Payclerk

10. IU Payroll/Labor Policies o Payroll Policy IV-210 –To separate the processing of payroll adjustments from the actual distribution of the checks in order to eliminate fraud through payroll processing.  Only the employee, Fiscal Officer, Account Supervisor, or Account Manager may pick up these kinds of checks. Payroll clerk cannot.  Note: an account delegate or Fiscal Approver may not pick up adjustment checks

11. IU Payroll/Labor Policies Dear Payroll Director: I recently received an email from you regarding direct deposit. I spoke with someone who assured me that I am not required to sign up for direct deposit because I am not a full- time IU employee. Sincerely, Pete Part-time Employee

12. IU Payroll/Labor Policies o Payroll Policy IV-20 – To provide guidelines for required use of direct deposit for all employees.  Revokes language of previous policy that allowed grandfathered status for those hired before October 1997  Applies to all types of IU employees, except work-study students (exempt per Federal regs)  Paycard available to accommodate those unable to establish a banking relationship

13. IU Payroll/Labor Policies Dear Payroll Director: We have an Academic Specialist (12 mo.) who transferred to another Academic Specialist position within our department at a higher rate of pay effective 12/19/08. The December vouchers had to be balanced by 12/22/08. Due to the timing of this transfer, an adjustment voucher had to be prepared. I am being told that a fee WILL apply in this situation if I request an “off-cycle” pay date. I don’t think it’s fair for the employee to wait an entire month for compensation – and I also don’t feel it is fair to charge a fee for this type of transaction. I agree 100% on charging adjustment voucher fees when negligence is involved. Please waive the fee. Sincerely, Fernando Fiscal-Officer

14. IU Payroll/Labor Policies o Payroll Policy IV-250 - payroll adjustment payment requests that require off-cycle payroll processing will be paid on the next available off-cycle payroll, subject to specific guidelines.  Few exceptions to the fee  Timing of adjustment transactions

15. IU Payroll/Labor Policies Dear Payroll Director: I am concerned that as the payroll clerk I cannot approve payroll documents in the absence of the fiscal officer. I am trained in payroll processing, so I am the most qualified to approve these documents. The hiring has already been approved; it would expedite the transaction not to have another person in the process. No payclerk takes it upon herself to hire a new person, or change a salary amount, etc. without approval from above to proceed. Sincerely, Priscilla Payclerk

16. IU Payroll/Labor Policies o Payroll Policy IV-260 – authority to delegate signatures on HRMS Fiscal transactions  Fiscal Officer is the only person authorized to delegate to the Fiscal Approver  Same person cannot be both Fiscal Approver and Payroll Processor

17. IU Payroll/Labor Policies o Accounting Policy I-480 with payroll implications – Mobile Devices and Internet Access  Employees will contract for their own mobile devices and service plans for both cellular service and internet access. May be reimbursed via Additional Pay.  Reimbursement may include anticipated payroll taxes on the Additional Pay, but departments must determine this additional amount themselves, within the policy guidelines for the allowances  See http://www.fms.indiana.edu/payroll/mobile_ devices.asp for payroll-related processing information http://www.fms.indiana.edu/payroll/mobile_ devices.asp

18. Recordkeeping Requirements

19. o Record Keeping Requirements  Record time accurately and properly  Each supervisor is expected to have direct knowledge of employee’s hours worked; timesheets MUST be signed by employee and supervisor (no signature stamps)  If using TIME, electronic approval by TIME supervisor satisfies the signature requirement  Responsibility rests with the employer to ensure records are maintained and submitted on time for both non-exempt AND exempt staff

20. Recordkeeping Requirements o Record Keeping Requirements  PAE/PB (professional exempt) time is recorded in full day increments in most cases  PAO and PAU employees have different rules  Departments and employees have responsibility for record keeping of all professional staff  http://www.indiana.edu/~uhrs/policies/nonunion/10.0/10.6.html http://www.indiana.edu/~uhrs/policies/nonunion/10.0/10.6.html

21. Policy Review o Policies Summary  Review Payroll, Accounting, and HR policies; note which ones apply to your unit  When clarification is needed, contact your campus payroll or HR office, FMS Payroll, or UHRS  Familiarity with policies can assist in maintaining fiscal responsibility and control

22. Payroll / Labor Best Practices

23. o New Hires  Ensure that Edocs are processed on the first day of employment, at the latest!!  Understand the routing process and timelines for your campus for all payroll and human resources activities, such as Edocs, vouchers, timesheets, tax and direct deposit forms, signatures, etc.

24. Payroll/Labor Best Practices o Payroll Verification Process  Talk with those who enter payroll in your department or on your campus to:  Verify accuracy of job data and data entry  Reconcile timesheets and vouchers  Make sure Fiscal Approvers understand how and when they are to use the Voucher Audit Reports for payroll verification (Location: Financial / Labor / Fiscal Approver’s Voucher Audit Report)  View Only role available in PeopleSoft HRMS. Fill out user access request at: http://www.indiana.edu/~hrsis/HRMS/f_approve.shtml http://www.indiana.edu/~hrsis/HRMS/f_approve.shtml  Reviewer (View Only) role available in TIME. Contact rcampbel@indiana.edu to request that access. rcampbel@indiana.edu

25. Payroll/Labor Best Practices o Questions? o Resources & Handouts Mary Byrde University Director, Payroll, FMS Training & Customer Service 812-855-3274 mbyrde@indiana.edu