Payroll Services (PAY)

POLICY 3

Effective Date: 01/09/2004

Last Modified Date: 03/04/2004

Timing

Biweekly. The following employees are paid biweekly, with paydays normally occurring on Friday:

• All SPA (staff) employees (Subject to the State Personnel Act)
• All EPA employees (Exempt from the State Personnel Act) paid for one semester or an academic year

Monthly. All EPA employees except those noted above are paid monthly, on the last business day of a month, for services performed during that month.

Current schedules of paydays are available from Payroll Services.

Distribution

Locations

On payday, payroll checks and direct payroll deposit notices are picked up by department or school representatives at one of the following distribution points:

• For departments located on the main campus: the basement of Bynum Hall, from 9:00 a.m. to 10:00 a.m. only, on each scheduled payday.
• For departments not located on the main campus: Payroll Services, 104 Airport Drive, Suite 3600, beginning at 9:00 a.m.
• For on-campus departments that cannot pick up checks by 10:00 a.m. from the campus distribution point: Payroll Services, 104 Airport Drive, Suite 3600, after 10:30 a.m.

Checks Released Prior to Paydays

In compliance with State cash management policies, only in an emergency situation may an employee obtain his/her paycheck before the scheduled distribution time. The payroll representative must contact the Director of Payroll Services to request permission for early pick-up of the check.

Missing Payroll Checks

There are many reasons why a check may not have been issued or distributed, such as the delinquent submission of time sheets or personnel actions, no employee NC-4 or W-4 form on file in Payroll Services, etc. When an expected payroll check appears to be missing from the checks picked up by the department or school representative, contact the appropriate Payroll Services liaison as shown in PAY Intro 3, Whom Do I Call for Help With...?

Departmental Distribution

Schools, departments, and divisions should establish internal procedures to control checks and direct deposit notices for distribution to their employees. The procedures should address at least the following considerations:

• Verification of checks and direct deposit notices received to the 01 Payroll Reports
• Safekeeping of checks before distributing to the employee. Checks should not be left in areas open to student, staff, and faculty traffic. Checks should be secured in a locked file cabinet or vault whenever they are not in the personal possession of the individual responsible for distribution.

Undeliverable Payroll Checks

A payroll check that cannot be distributed to the payee should be kept in a secure place while delivery is attempted. Departments that are unable to deliver checks or to keep them secure while attempting delivery should return them to Payroll Services for safekeeping. Undelivered payroll checks should be returned to Payroll within 10 days after issuance unless the employee is on extended leave.

Problems

Unearned Payroll Checks

If an employee is not entitled to a payroll check/stub, return it immediately to Payroll Services. Never hold an incorrect payroll check/stub in the department. Payroll Services must cancel the check or direct payroll deposit and credit the budget source and the employee's earnings history.

Salary Overpayment

When an employee is overpaid, the amount of the overpayment is calculated, entered into the Payroll system, and listed as "OPnnnn" on the check register, with "nnnn" representing the transaction reference number. The home department is notified, first by telephone and then by a form email stating the amount of the overpayment and requesting either a personal check or money order made payable to UNC for the amount of the overpayment. If an overpayment amount has not been repaid within 90 days, the debt is reported to the appropriate State agency for collection based on the State Employees Debt Collection Act (SEDCA) and the Set-Off Debt Collection Act (SODCA). See also PAY Appendix 29, Salary Overpayment Notification.

Replacement of Stolen or Lost Checks

1. When a payroll check is stolen or lost, the employee to whom the check was drawn must contact the Departmental Payroll Representative immediately.
2. The Departmental Payroll Representative then contacts Payroll Services with the date of the check, check number, amount, and employee's name and Social Security Number.
3. Payroll Services issues a Stop Payment Notice on the lost or stolen check to the State Treasurer's Office. (If the payroll check is found before the stop payment action has been put into effect, contact Payroll Services so the Stop Payment Notice can be canceled.)
4. Once the State Treasurer affirms that the stop payment action has been put into effect, Payroll Services contacts the employee, who must come to Payroll Services to execute an affidavit. The affidavit must be signed in the presence of a Notary Public before a replacement check can be issued (see PAY Appendix 16, Affidavit for Lost or Stolen Check).
5. Under normal conditions, approximately 7-10 days elapse before a replacement check is issued.

Forgery

Before another check can be issued to replace a forged check, the employee must sign, in the presence of a Notary Public, an affidavit attesting to the fact that the endorsement on the check is not that of the affiant (see PAY Appendix 17, Affidavit for Forged Check).

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