Payroll Policies

PR02 Personnel Paid Monthly

Policy Status: 

Active

Policy Steward: 

Corporate Controller / Payroll

Contents:

PURPOSE:

To state the payroll policy for personnel paid monthly, i.e., those employees who are classified as Executive, Administrator, Academic Administrator, and Staff; those employees appointed under the provisions of Policy HR88, "Alternatives to Regular Twelve Month Staff Employment"; and those academic employees whose work and compensation are not related to the academic year. See Policy PR10 for "Compensation of Individuals Classified as Academic and Academic Administrator."

PAY PERIOD:

Each pay period consists of a calendar month.

PAY DAYS:

The last day of each month is pay day. However, if pay day falls on a Saturday, Sunday, or a holiday, the pay is issued the preceding work day, except for the month of December. Because of the special December holiday schedule, pay checks for those employees receiving checks (rather than having direct deposit) may be released earlier on a date designated by the University (although checks will be dated the last day of the month).

APPOINTMENTS:

A New Appointment (NAPP in IBIS) is completed for all new regular employees classified as Executive, Administrator, Academic Administrator, and Staff. See HR14 of the Human Resources Section of the Policy Manual for forms to be completed by and for each new regular employee.

An Employee's Withholding Allowance Certificate (W-4 form), and a Salary Deposit Request must be on file with the Payroll Department before a payroll direct deposit is authorized.

See Policy HR57 on how to determine the effective date of employment.

COMPUTATION OF PAY FOR PARTIAL PAY PERIOD:

See Policy PR09 in the Policy Manual on how to compute the payment for the first month or last month of employment if the employee begins or terminates on other than the last or first day of the month.

PAYROLL/SALARY CHANGES:

Payroll and salary changes are made for both academic and nonacademic employees by completing one of the following, as applicable:

 

IBIS Function "NEWP" (New Pay Information) - to change the pay budget or pay fund for current employees classified as Administrator, Staff, Technical Service, Academic and Academic Administrator.

IBIS Function "PADJ" (Paycheck Adjustment) - to adjust the paycheck of a current employee due to holiday overtime, holiday compensation, compensatory time, shift differential, time off without pay, meal/lodging deduction, military reduction or retroactive pay. Used for employees classified as Administrator, Staff, Technical Service, Academic and Academic Administrator.

EASY Form "PAYC" (Payroll Change) - used only to process temporary promotions for all University employees, and for budget distribution changes if multiple budgets are involved.

IBIS Function "SADJ" (Salary Adjustment) - to make various salary adjustments for employees classified as Administrator, Staff, and Technical Service.

IBIS Function "ARCA" (Academic Rank/Class/Appt. Extension/Appt. Type Change) - to adjust the salary for employees classified as Academic and Academic Administrator.

IBIS Function "GRAD" (Grad/Fellow/Scholar Changes) - to adjust the salary for employees classified as Academic (graduate, fellow or scholar only).

IBIS Function "LVLO" (Leave/Layoff/RIF Actions) - to start and end an employee's leave, change an employee's leave type or status, or to extend an employee's leave.

NONEXEMPT STAFF EMPLOYEES, EXCESSIVE TIME OFF:

If a nonexempt staff employee has not worked the required number of hours during a month, the Payroll Department is to be informed by completing the ""PADJ"" in IBIS. The number of hours to be deducted from the employee's pay is entered in the space provided on the form. One (1) hour is the minimum number of hours that is to be submitted for deduction as excessive time off. Periods of excessive time off less than one (1) hour should be accumulated until the excessive time off is one (1) hour.

DEFINITION OF OVERTIME FOR EMPLOYEES CLASSIFIED AS NONEXEMPT STAFF:

Overtime is all authorized time worked by an employee for the University that is:

  1. In excess of forty (40) hours per week . In any week in which a University holiday, including a personal holiday, occurs on an employee's regularly scheduled work day, or an employee has scheduled time off in advance chargeable to either accumulated vacation or compensatory time, such holiday or time off shall be considered as time worked.​
    NOTE: For most employees, the University work week shall be interpreted to be a seven-day period beginning at midnight Saturday and ending at midnight on the following Saturday. The forty hours are to be scheduled within that period. The Office of Human Resources is responsible for determining any work weeks that vary from the standard work week stated herein.
  2. In excess of an employee's scheduled work day, if that employee is regularly scheduled to work forty (40) hours per week.
  3. Performed on a day that is regularly scheduled as a day off for that employee.

OVERTIME RATES FOR EMPLOYEES CLASSIFIED AS NONEXEMPT STAFF:

Overtime is permitted to be worked only after advance approval by the budget executive and shall be permitted only in unusual situations. Such approved overtime is paid for at the rate of time and one-half the hourly rate, or two times the hourly rate if the overtime qualifies as holiday overtime. (See Policy HR34.)

PAYMENT OF OVERTIME FOR EMPLOYEES CLASSIFIED AS NONEXEMPT STAFF :

The payment of overtime worked by a nonexempt staff employee is accomplished by processing the IBIS Salary Payroll Form (SLPY). SLPY forms must be processed before the Payroll Deadline in order for employee to be paid the additional amount for overtime.

PROVISIONS FOR WORKING ON A HOLIDAY FOR EMPLOYEES CLASSIFIED AS NONEXEMPT STAFF:

Please see Policy HR34, "Employment Conditions for Staff Employees."

SHIFT PREMIUM FOR EMPLOYEES CLASSIFIED AS NONEXEMPT STAFF:

An employee shall be paid a shift premium of sixty ($.60) cents per hour for work beginning between the hours of 1:00 p.m. and 9:59 p.m.; and sixty-five ($.65) cents per hour for shifts beginning between 10:00 p.m. and 4:59 a.m. for all continuous hours worked on the shift. The shift premium shall be added to the base rate before the calculation of an overtime rate.

RECORDS TO BE MAINTAINED FOR EMPLOYEES CLASSIFIED AS NONEXEMPT STAFF:

In accordance with the provisions of the Fair Labor Standards Act of 1967, a record of actual hours worked, vacation, sick leave and holidays taken by each employee classified as "Nonexempt" must be maintained on the Employee Self-Service Information Center (ESSIC).

PAYROLL DEDUCTIONS:

Federal Withholding Tax, State Income Tax, F.I.C.A., Local Earned Income Tax, Unemployment Compensation Tax, Retirement, Group Hospital and Life Insurances, are deducted from each monthly pay. In addition, voluntary Group Term Life and Accidental Death and Dismemberment Insurance, charities, annuities, Credit Union, etc., are deducted from each pay if the employee has authorized these deductions.

TERMINATION:

The termination of an employee classified as executive, administrator, academic administrator, or staff is accomplished by completing a WTRM(Termination) in Workflow. This form must be processed in time to meet the cutoff deadline for the employee's last pay period. When leaving University employment, an eligible employee's final payment will include the cash value of unused vacation accumulation. See Policies HR50, HR52, HR53, HR54, HR55 and HR57 in GURU.

DIRECT DEPOSIT OF PAYCHECKS:

Direct Deposit of paychecks is a condition of employment for anyone hired on or after November 1, 1993. Arrangements to direct deposit a paycheck to most banks and many financial institutions nationwide may be made by submitting the Salary Deposit Request form. For additional information, refer to Salary Deposit Request instructions in GURU, and Policy PR11, Salary Deposits and Distribution of Paychecks.

Check stub information is available on the Employee Self-Service Information Center (ESSIC).

FURTHER INFORMATION:

For questions, additional detail, or to request changes to this policy, please contact the Payroll Office.

CROSS REFERENCES:

HR14 - Forms To Be Filled Out By And For Each Regular Employee,

HR34 - Employment Conditions for Staff Employees,

HR50 - Use of Accumulated Vacation at Time of Resignation or Retirement, or upon Completion of a Fixed Term 1 Appointment,

HR52 - Resignation from University Employment,

HR53 - Deceased Employee's Final Salary Payment,

HR54 - Continuation of Group Insurance After Age 60, Age 65, and After Retirement or Death,

HR55 - Things to Know When Leaving University Employment,

HR57 - How to Determine Effective Dates of Employment or Termination for Employees Paid Monthly (Except Academic),

HR88 - Alternate to Regular Twelve Month Staff Employment,

PR09 - Payment for Fractional Payroll Periods Worked and Transfers Between Types of Payrolls for Non-Academic Employees,

PR10 - Compensation of Individuals Classified as Academic and Academic Administrator, and

PR11 - Salary Deposits and Distribution of Payroll Checks.

Effective Date: July 30, 2007
Date Approved: July 30, 2007
Date Published: July 30, 2007 (Editorial changes- August 23, 2016)

Most recent changes:

  • August 23, 2016 - Editorial changes. Corrections made in SHIFT PREMIUM FOR EMPLOYEES CLASSIFIED AS NONEXEMPT STAFF section, shift premiums changed from 40 cents to 60 cents, and from 45 cents to 65 cents, respectively.

Revision History (and effective dates):

  • November 26, 2013 - Editorial changes. Revisions throughout the policy to reflect current payroll operations.
  • October 18, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.
  • July 30, 2007 - Shift premiums raised from 35 cents to 40 cents, and from 40 cents to 45 cents.
  • June 14, 2006 - Revision History expanded.
  • June 30, 2005 - Editorial changes to eliminate "General Forms Usage Guide" references, and to add the correct links for the forms referenced in the policy.
  • May 10, 2000 - Shift premiums raised from 30 cents to 35 cents, and from 35 cents to 40 cents.
  • June 21, 1999 - Verbiage removed regarding overtime at The Milton S. Hershey Medical Center.
  • June 18, 1997 - Distribution of paychecks done by Business Services.
  • December 8, 1993 - Revised verbiage on method of receiving an advance if the first payroll is missed; clarified direct deposit and payroll deduction terms.
  • April 19, 1993 - Updated policy to reflect IBIS terminology and SPEC terminology. Revised references from "PS" Policies to "HR" policies. Eliminated "Special Salary Form" in favor of the "Special Request for check" for payments missing the OHR cutoff time lines.
  • November 9, 1987 - Office title changes.
  • June 21, 1985 - Revised overtime rate section.
  • August 3, 1983 - Revisions for employees working on a Holiday.
  • December 10, 1982 - Changes to "Pay Days" for personnel paid monthly.
  • July 1, 1981 - Revisions to "Initial Pay" and Payroll Changes" sections.
  • June 20, 1980 - Major revisions per 1979 Audit.
  • November 1, 1976 - Initial policy history begins here.