TITLE: EMPLOYEE PAYROLL
ISSUE DATE: JULY 1, 2004
RESPONSIBLE AUTHORITY: DIVISION OF HUMAN RESOURCES
OPERATIONS MANUAL: ADMINISTRATION
SUPERSEDES: ADM-11.30 (July 30, 1999); Change 1 (May 18, 2001); Change 2 (December 1, 2001)
RELEVANT SCDC FORMS/SUPPLIES: 16-66
ACA/CAC STANDARDS: 4-ACRS-7D-27, 3-4040
STATE/FEDERAL STATUTES: South Carolina Setoff Debt Collection Act, §12-56-10, South Carolina Code of Laws, 1976, as amended
THE LANGUAGE USED IN THIS POLICY/PROCEDURE DOES NOT CREATE AN EMPLOYMENT CONTRACT BETWEEN THE EMPLOYEE AND THE AGENCY. THIS POLICY/PROCEDURE DOES NOT CREATE ANY CONTRACTUAL RIGHTS OR ENTITLEMENTS. THE AGENCY RESERVES THE RIGHT TO REVISE THE CONTENTS OF THIS POLICY/PROCEDURE, IN WHOLE OR IN PART. NO PROMISES OR ASSURANCES, WHETHER WRITTEN OR ORAL, WHICH ARE CONTRARY TO OR INCONSISTENT WITH THE TERMS OF THIS PARAGRAPH CREATE ANY CONTRACT OF EMPLOYMENT.
PURPOSE: To outline the guidelines to be followed when processing and distributing employee payroll checks and to designate official payroll days for employees of the South Carolina Department of Corrections.
POLICY STATEMENT: To promote sound financial management, the Agency will maintain employee payroll files; will distribute employee payroll checks and/or direct deposit receipts; and will process changes in payroll deductions in strict compliance with applicable state statutes, rules, and regulations and in accordance with generally accepted accounting practices and methods. (4-ACRS-7D-27, 3-4040)
In addition, the Agency will manage the processing of overpayments to employees in strict compliance with state regulations and the South Carolina Setoff Debt Collection Act.
TABLE OF CONTENTS
1. PROCESSING OF PAYROLL CHECKS:
1.1 The Division Director of Human Resources will
provide to the Division Director of Resource and Information Management or an approved designee all necessary information on the number and type
of both filled and vacant personnel positions on a current basis and will
ensure that all persons on the employee payroll are legally employed.
1.2 The Division Director of Human Resources will verify through the Division Director of Budget and Finance that all filled and vacant positions are authorized in the budget and that the necessary funds are available in the Agency budget.
1.3 An individual payroll file containing all information pertaining to each respective employee’s payroll information will be maintained by the Records Area, Division of Human Resources, for all active and inactive employees as prescribed in the Agency’s record retention policies/procedures. (4-ACRS-7D-27, 3-4040)
1.4 Employee miscellaneous payroll deduction changes will be initiated by the affected employee, and will be processed by the Payroll Branch, Division of Human Resources. Employees are required to contact their designated Human Resource Specialist/Manager or the Division of Human Resources to receive appropriate information and forms necessary to process payroll deduction changes.
1.5 The Payroll Branch will prepare the payroll voucher and submit the voucher to the Chief, Financial Accounting Branch, for signature. The voucher will then be forwarded to the Office of the South Carolina State Comptroller General.
1.6 The Payroll Disbursement Section of the Financial Accounting Branch will be responsible for picking up all SCDC payroll checks from the South Carolina State Treasurer’s Office on the dates designated by the State Treasurer’s Office.
1.7 Employees who desire assistance with calculating the taxes that will be owed as a result of large sums of payment (e.g., back pay or final payroll checks) may request assistance in writing from the Division of Human Resources, Payroll Section. This assistance will be provided by the Payroll Section if the employee has requested the assistance in sufficient time to meet the payroll deadline.2. PAYROLL PAY DATES:
2.1 Regular payroll pay dates will be on the 1st and the 16th of each month except when a pay date falls as follows:
If the pay date falls on a Saturday or Sunday, payroll checks will be distributed to employees on the preceding Friday.
If the pay date falls on a state approved holiday, the State Treasurer will notify the SCDC in advance as to when payroll checks will be distributed. Employees will be notified of the date that payroll checks will be distributed via normal means of communications, i.e., CRT messaging, staff briefings, posted notices, etc.
2.2 Appropriate members of the Director's staff, Division Directors, and Wardens will be required to designate an employee and an alternate in their respective areas who will be responsible for picking up, signing for, and distributing employee payroll checks. Appropriate members of the Director's staff, Division Directors, and Wardens should notify (via memorandum) the Payroll Disbursement Section, Financial Accounting Branch, of their designees. The Payroll Disbursement Section will distribute checks and/or direct deposit stubs to the designated employee of each SCDC organizational element. All payroll checks must be safeguarded as confidential material.
2.3 Payroll checks will be sorted by section, group, or facility based upon assignment of the employee. Checks will be distributed in the order in which they are sorted. Special requests to have checks handled individually will not be accepted unless an employee has transferred from one pay location to another after the payroll input deadline. A separate list of employees will be maintained for check distribution for Academy students, employees affected by position movement, and terminated employees.3. DIRECT DEPOSIT: Employees may elect to have their payroll checks deposited into up to two (2) accounts of a financial institution(s) of their choice by completing SCDC Form 16-66, "Authorization Agreement for Electronic Deposit," and submitting the form to the Payroll, Benefits, and Attendance Branch of the Division of Human Resources, along with a voided check or deposit stub. Employee accounts must be pre-noted at least two (2) paydays before direct deposit becomes activated. Employees will be responsible for notifying the Division Director of Human Resources or designee of any changes to accounts in a timely manner. Questions related to direct deposit should be directed to the designated Human Resource Specialist/Manager or to the Division of Human Resources.
4. CHECKS FOR EMPLOYEES WHO HAVE RESIGNED OR TERMINATED:
4.1 The Payroll Branch will provide the Payroll Disbursement Section, Financial Accounting Branch, with a list of all terminated employees and of all employees for whom special checks have been written and the disposition instructions for such checks.
4.2 Employees who resign or are terminated from the Agency must clear before they may receive their final paycheck. If the final check disposition is for mailing, it will be mailed "Certified" to the last mailing address or as instructed on the Employee Termination Clearance.
4.3 Should a terminated employee wish to have a check released to another employee or person, s/he must give prior written consent to the Division of Human Resources regarding the person who can pick up the final check.
4.4 Employee final payroll checks should not be direct deposited.
4.5 Checks or direct deposit stubs/receipts that are returned to Payroll Disbursements should always be hand carried. A written explanation for the return must accompany the returned check or direct deposit stub/receipt. The written explanation must provide the pay date for each returned check or direct deposit stub/receipt.
5. CHECKS OR DIRECT DEPOSIT RECEIPTS NOT PICKED UP: For those employees who do not pick-up their payroll check or direct deposit receipt on the designated payroll date, the following procedures will apply:5.1 Non-institutional Locations:
5.1.1 If an employee does not pick-up his/her payroll check stub within forty-eight (48) hours of the pay date (normally due to wrong location, resignation/termination, or possible incorrect processing), the designated person responsible for picking-up the checks from the Payroll Disbursement Section should return the check(s) to the Payroll Disbursement Section, Financial Accounting Branch.
5.1.2 Payroll checks/direct deposit stubs will be locked in a secure area until the employee picks-up the check/deposit stub, or until written notification for its disposition is received from the employee. Active employees should be advised by their supervisor that direct deposit stubs must be picked up on payday and may not remain undistributed at the work location. Employees who are not available to pick up their direct deposit stub may have the direct deposit stub mailed in an envelope to their residence through normal U.S. mail; however, actual paychecks must be mailed "certified" in an envelope.
5.1.3 If, at the end of 30 work days, the payroll check has still not been picked-up or notification of disposition has not been received, the Payroll Disbursement Section will request that the Division Director of Human Resources/designee determine the employee’s status.
5.1.4 If the matter has not been resolved at the end of six (6) months, the check must be revalidated by the State Treasurer’s Office prior to anyone claiming the check. Checks will be held indefinitely by the Payroll Disbursement Section, or until claimed by an employee, former employee, or an approved representative.
5.2.1 If an employee does not pick-up his/her payroll check within forty-eight (48) hours of the pay date (normally due to wrong location, resignation/termination, or possible incorrect processing), the designated person responsible for picking up checks from the Payroll Disbursement Section should return the paycheck to the Payroll Disbursement Section, Financial Accounting Branch.
5.2.2 Payroll checks/direct deposit stubs will be locked in a secure area until the employee picks up the check/deposit stub, or until written notification for its disposition is received from the employee. Active employees should be advised by their supervisor that direct deposit stubs must be picked up within seven (7) days of the payday and may not remain undistributed at the work location. Employees who are not available to pick up their direct deposit stub may have the direct deposit stub mailed in an envelope to their residence through normal U. S. mail; however, actual paychecks must be mailed "certified" in an envelope.
5.2.3 If the check/direct deposit receipt has not been picked up within the specified period, it will be hand-carried to the Payroll Disbursement Section and the same procedures stipulated in Sections 5.1.3 and 5.1.4, above, will be followed. (NOTE: If an employee does not pick-up his/her check/receipt and it has not been returned to the Payroll Disbursement Section, the appropriate Warden or Division Director/designee will be held responsible for the security of the check.)
6.1 When an overpayment occurs, it must be verified by the appropriate section supervisor in the Payroll, Benefits, and Attendance Branch. An explanation for the overpayment is required.
6.2 Notification of overpayment will be sent to the employee requesting payback either by full amount payable in cashier’s check or money order, or by payroll deduction. (NOTE: Employees who request payroll deduction must pay the gross amount of the overpayment.) Payment by payroll deduction must be based on the schedule below unless approved by the Division Director of Human Resources or designee. For employees who elect to pay in full by cashier’s check or money order, a net amount for payback for the overpayment will be determined by the Payroll Branch.
PAYROLL PAYBACK SCHEDULE
|TOTAL DEBT||SEMI MONTHLY PAY BACK|
|$199.00 and less||$ 25.00|
|$200.00 thru $499.00||$ 50.00|
|$500.00 thru $999.00||$ 75.00|
|$1000.00 and above||$100.00|
6.3 Employees will be notified in writing (via letter) of the net and gross amounts of overpayment and the reason(s) for the overpayment by the Payroll Branch. If there is no response within 30 days, a second notification will be sent with an additional 30 day extension. The third and final notification will inform the employee that the overpayment amount will be forwarded to the S.C. Department of Revenue for collection from his/her State income tax return under the provisions of the S.C. Setoff Debt Collection Act (see Section 6.5, below). The Warden/Division Director will meet with the employee and instruct him/her to contact the Division of Human Resources to initiate a payback plan.
6.4 Before a request for a setoff may be made, the SCDC must notify the employee of its intention to cause the debtor’s refund to be setoff. This notice will be sent by certified mail to the employee’s last known address no less than 30 days before the SCDC request for collection by the Department of Revenue. The notice will provide administrative appeal procedures available to the employee and alternatives which could prevent setoff.
6.5 On or before August 31 of each year, the SCDC will furnish to the Department of Revenue an application with the information listed below: (This application is effective only to initiate setoff against refunds in the subsequent calendar year.)
the name, address, and telephone number of the individual or section to whom the Department of Revenue should direct inquiries, if further information is required;
an estimate of the number of accounts to be forwarded for possible setoff; and
a letter of authorization from the Agency Director which includes the name, title, and sample signature of the person(s) authorized to make the request for service.
"I hereby certify that this organization has complied with the requirement of South Carolina Code 12-56-100 and that the information contained in the accompanying diskette is, to the best of my knowledge and belief, true, correct, and complete."6.7 The initial debts, as well as all deletions and reductions, must be submitted on diskette. The diskette must contain the debtor’s name, social security number, Agency code number, Agency Fund Identification Number, debt amount, and the date of default. The Department of Revenue will send the SCDC the debts which were setoff for the Agency. Remittances will be made periodically throughout the year, as the refunds are processed. In accordance with Section 12-56-60(B), an administrative fee of $25 per match will be applied to each refund in addition to the amount of setoff.
6.8 If an employee wishes to contest the setoff of a refund, s/he is entitled to a review with the SCDC. If after the review the SCDC determines the setoff amount to be excessive, the SCDC will refund the appropriate amount to the employee. If it is determined that the SCDC is not entitled to any of the amount setoff, the SCDC will refund the entire amount plus the administrative fee retained by the Department of Revenue. The administrative fee refunded will be paid from SCDC funds as well as any interest due to the taxpayer.
6.9 The Division Director of Human Resources reserves the right to "write-off" debt of less than ten dollars ($10) and not forward such amounts to the Department of Revenue for collection.7. DEFINITIONS:
Debtor refers to any individual having a delinquent debt or account with SCDC which has not been adjusted, satisfied, or set aside by court order, or discharged in bankruptcy.
Delinquent Debt refers to any sum due and owed to SCDC including collection costs, court costs, fines, penalties, and interest which have accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is an outstanding judgment for that sum which is legally collectable and for which a collection effort has been or is being made.
Overpayment refers to any type of transaction where an employee receives money that is not due.
Refund refers to any individual or corporate South Carolina income tax refund payable. This term also includes any refund belonging to a debtor resulting from the filing of a joint income tax return.
SIGNATURE ON FILE
s/Jon E. Ozmint, Director
ORIGINAL SIGNED COPY MAINTAINED IN THE DIVISION OF POLICY DEVELOPMENT.