Section 4 – A.S. Payroll

Section 4.1 - Payroll Administration

Date: 11/20/06 — Approved: Finance Board

ORGANIZATION

The AS Finance Board has delegated responsibility for the administration of the A.S. payroll function to the Controller. The Controller further delegates responsibility for this function to the Payroll Supervisor. The Payroll Office is located in the Business Office within the Aztec Center.

PAYROLL CHECKS AND EARNINGS STATEMENTS

The AS is required by Federal and State law to pay all AS employees earnings not more than seven calendar days following the close of the pay period. The AS is required to make these payments in a form convertible to cash, such as check or by electronic funds transfer (direct deposit) to a financial institution. The A.S. is required to withhold from earnings, payments according to Federal and State laws and other agreements between the AS and the employee. The AS is required to issue an itemized statement of all earnings and deductions for each pay period.

STATUTORY COMPLIANCE

The AS is required by the Federal and State law to administer certain processes that may have employment tax consequences to employees. The Payroll Office, along with other A.S. units collaborates to administer these processes. These programs include:

See Section 16 Taxes for policies relating to these topics.

DIVISION RESPONSIBILITIES AND PAYROLL CONTACTS

Divisions are required to provide a payroll contact to act as liaison between the Payroll Office and the employees and payroll supervisors of the department. The Payroll Liaison ensures that employee payroll checks and/or direct deposit notices with earnings statements are distributed. The Payroll Liaison also distributes any other communications from the Payroll Office.

It is a division’s responsibility to follow the processing schedule to ensure that employees are paid on time. Divisions should have a contingency plan to cover for a vacation or an illness of their Payroll Liaison and/or supervisors.

PAYROLL SCHEDULE

PAYROLL AND EARNINGS STATEMENT DISTRIBUTION

Employers must keep records of names and addresses of all employees and of earnings paid each payday, and must furnish each employee with an itemized statement of earnings and deductions for each pay period. The AS complies with the law by issuing current earnings statements as an attachment to the employee's paycheck or direct deposit notice.

Direct Deposit

All employees are strongly encouraged to have their pay electronically deposited into an account at a financial institution. The funds are available for use in the employee's account on the morning of the payday. Employees must have an account at a financial institution and provide the necessary information for transfer of funds between the AS’s bank and the employee's financial institution. The employee can provide the necessary information by completing a direct deposit authorization form. Division director’s approval is required for employees who choose not to participate in direct deposit.

UNCLAIMED PAYROLL CHECKS AND EARNINGS STATEMENTS

All unclaimed payroll checks and earnings statements should be returned to the Payroll Office after two pay periods have passed. The Payroll Office keeps the unclaimed earnings statements in the employee’s personnel file.

Payroll Checks

The AS complies with the State of CA escheatment law as they relate to various forms of abandoned property including uncashed checks.

Unclaimed payroll checks are retained by the Payroll Office up to six months from the date of issue. Employees can pick up their checks from the Payroll Office within that period. After six months unclaimed checks that remain will be considered stale dated, and will not be honored by the AS bank. Employees will need to contact the Payroll Office to get the stale-dated check reissued.

FORM W-2

The A.S. Payroll Office is responsible for issuing Forms W-2, Wage and Tax Statement. Form W-2 is mailed to the employee’s home address that is recorded in the AS’s payroll system, and is postmarked no later than January 31.

Undeliverable Form W-2 is returned to the Payroll Office and can be claimed with appropriate identification. Employees can request a re-issued Form W-2 from the Payroll Office with proper identification or upon written request.

TAX RELATED PAYROLL ISSUES

The Payroll Office is responsible for ensuring that the AS is in compliance with numerous Federal and State laws and regulations relating to the withholding of employment taxes on various types of remuneration, including payments made to nonresident aliens, student FICA exceptions, and fringe benefits, such as tuition waivers. See Section 16 - Taxes for policies relating to nonresident aliens, taxability of tuition waivers, student employee FICA exception and fringe benefits.

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