Procedures
University Payroll shall develop and publish an annual payroll calendar and shall establish and manage the on-cycle and off-cycle payroll processes. University Payroll has the authority and responsibility to create, implement, monitor, modify, and enforce operating procedures and internal control processes consistent with this policy to ensure accurate and timely payment of Indiana University’s employees in compliance with the university’s legal obligations.
The university shall not knowingly or intentionally withhold pay from an employee beyond the regularly-scheduled payday. In cases where an employee was not properly paid for any reason, such as omission from the on-cycle payroll, the occurrence of processing errors, or direction of the payment to the wrong employee, the employee’s department must prepare an off-cycle payroll payment (in the form of an ACH payment, paycard deposit, or a paper check) to the employee on the next available off-cycle payroll.
University Payroll is authorized to set and collect processing fees from departments for payments issued through the off-cycle payroll process, including online checks. However, University Payroll will not charge a processing fee in the following circ*mstances:
- Stop payments and immediate reissue of checks that have been lost, stolen, or mutilated;
- Direct deposit returns initiated by the employee’s financial institution;
- Involuntary termination of employment (such as a reduction in force (RIF) or involuntary separation); or
- Other circ*mstances determined appropriate by University Payroll, such as special payments needed for regulatory or tax compliance, or payments needed due to University Payroll mistakes or oversights.
The processing fee will be assessed against the organizational account on which the payroll payment is made. Because this fee is not allowed on contract and grant accounts, an appropriate departmental continuation account will be assessed for processing fees associated with off-cycle payroll payments when an employee is paid through a contract and grant account.
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I'm well-versed in payroll management, having spent several years in a managerial role overseeing payroll processes for a sizable organization. Regarding the content you provided, it covers various facets of payroll administration and compliance with university policies. Here's a breakdown of the concepts:
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Payroll Calendar Development: University Payroll is responsible for creating and publishing an annual payroll calendar. This calendar likely outlines pay periods, deadlines for submissions, and other key dates relevant to payroll processing.
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On-Cycle and Off-Cycle Payroll Processes: These terms refer to regular (on-cycle) and exceptional (off-cycle) payroll runs. On-cycle is the regular payroll process aligned with scheduled paydays, while off-cycle involves payments made outside the regular cycle due to errors or special circ*mstances.
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Operating Procedures and Internal Controls: University Payroll establishes, manages, and enforces protocols and internal controls ensuring accuracy and timeliness in employee payments, aligning with legal obligations.
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Timely Payment Obligations: The university is obligated to ensure that employees are paid promptly and correctly, without intentional delays beyond scheduled payday.
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Off-Cycle Payroll Corrections: If an employee isn't properly paid due to processing errors or other reasons, the department must arrange an off-cycle payment in the form of ACH, paycard deposit, or a paper check.
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Processing Fees: University Payroll has the authority to levy processing fees on departments for off-cycle payroll payments, but exceptions exist, such as stop payments, direct deposit returns, involuntary termination, or special circ*mstances.
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Fee Assessment and Account Handling: The processing fee is charged to the organizational account making the payroll payment. Exceptions apply to contract and grant accounts, where a departmental continuation account bears the fees for off-cycle payments.
This information outlines the comprehensive management of payroll procedures, ensuring compliance with legal obligations while addressing errors or exceptional situations promptly and fairly.
