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EPA SALARIES AND WAGES, NON-SERVICE POST DOCTORAL AWARDS,
AND OTHER PRACTICES

Payroll Services (PAY)

PROCEDURE 13

Effective Date: 01/09/2004

Last Modified Date: 05/26/2005

General Information

In order to place an individual on the payroll, the initiating department prepares an "EPA Personnel Action," Form PD-7, for employees as described in the following sections:

Refer to the Form PD-7 Instructional Manual for instructions and samples of PD-7 forms. The on-line electronic PD-7 form system is available for all rank code 20-28 classifications. Contact Human Resources/Employee Records Division for a copy of the Instructional Manual.

Benefits

Benefits Programs Administration is the central location for completion of various benefits forms required for an EPA employee to receive benefits. A new employee should be instructed to contact the Benefits Department in order to complete the necessary forms. An appointment to attend a New Employee Benefits Orientation should be made in advance by telephoning 962-3071 between the hours of 8:00 a.m.and 5:00 p.m., Monday through Friday. Tax withholding forms may be obtained from Payroll Services, CB# 1260 (104 Airport Drive, Suite 3600).

Required EPA Hiring Forms

Other required forms to be submitted with the Form PD-7 may include the following:

IRS Tax Regulations

The IRS tax regulations involve unique requirements for income tax and social security withholding and reporting for non-resident alien individuals who are employees or independent contractors or who receive scholarship or fellowship aid. Refer to theBusiness Manual, Payroll Policy 12, Payroll Procedure 12 , and Appendix 35. The revised policy and procedure became effective January 1, 1995.

North Carolina State Requirements

North Carolina law requires that every applicant for state employment certify that he or she is in compliance with the registration requirements of the Military Selective Service Act. The employer is required to have each applicant complete the Statement of Selective Service Registration Compliance, Form AP-2a.  

Graduate Student Payroll Deduction Authorization Form

Graduate students holding service appointments (see Temporary Part-Time EPA Appointments) may request to have tuition and fee charges deducted from paychecks, using Appendix 36B, the Graduate Student Payroll Deduction Authorization Form. Questions concerning the Graduate Student Payroll Deduction Authorization Form should be directed to Gail Smith in Payroll Services (962-7985).

Required Forms

Forms PD-7, AP-2, AP-2S, and AP-2a are available from Employee Records, CB #1045, 104 Airport Drive. Form I-9 may be obtained online from the U.S. Citizenship and Immigration Services (formerly the INS) or from the Human Resources Workforce Planning & Recruitment Division. A Certification for Exemption of FICA (PAY Appendix 36(C)) is also attached for reproduction by departmental personnel. Graduate Student Payroll Deduction Authorization Forms are available from Payroll Services, CB# 1260 (104 Airport Drive, Suite 3600). Reference PAY Appendices for sample forms of the required documentation listed here.

The PD-7 rank codes and definitions for students/others are in PAY Appendix 36E for your information. These rank codes became effective June 1, 1993.

Availability of Paycheck

NOTE:    The availability of a paycheck on any given payday cannot be assured unless the PD-7 form has reached the appropriate office as shown in the Payroll Schedule (PAY Appendix 36 A) before the preceding "Approval Cutoff Date". Also, paychecks will not be available unless the PR-100 form and all applicable attachments have been completed by the non-resident alien.

Assistance

Please refer any questions regarding payments from the payroll system to Madge Langley (962-7988) or Tim Mitchell (962-0048).

PERMANENT EPA APPOINTMENT (Paid Monthly)

Approval of Initial Appointment

A. An appointment is initiated by the approval of a PD-7 and an AP-2 form. Approval must be obtained from either the Dean, College of Arts and Sciences; the Provost; and/or the Chancellor; as appropriate, before forwarding to the Records Department.

Final Approval

Each approved PD-7 is forwarded to the Records Department by the Administrative Division recording final approval and then is routed through the appropriate budget office that is responsible for the approval of the commitment of funds. The budget office forwards the PD-7 and appropriate documents to Payroll Services.

Employee Benefits/Orientation

Permanent employees who are eligible for mandatory and optional benefits programs will be contacted by Benefits Program Administration. They will be ask to attend the New Employee Benefits Orientation Program.

B. Other documents which must be completed and submitted to Benefits Program Administration (except for the Form I-9) for processing new employees for payroll purposes are as follows:

Required Federal and State Tax Forms

1. Mandatory for Permanent EPA Appointment
a. An NC-4 and W-4 tax withholding form and/or approved Form PR-100, " Alien Information Request Form" must be completed, if applicable. Form 8233 and attachments should be requested from Payroll Services if tax treaty benefits are claimed.

b. A Social Security Number assigned by the Social Security Administration (or statement that official application for assignment of number has been made) must be submitted. Payroll Services will assign a "dummy" number until an assigned Social Security Number is received. The employee should complete and submit to Payroll Services a W-4 form and an NC-4 form.

c. Form I-9 "Employment Eligibility Verification" must be collected by the department at the time of the initial interview and attached to the PD-7. For persons not interviewed on campus or not interviewed, the I-9 must be completed by the employee and the department and sent forward within three business days of employment (within three business days of the first day the employee is on campus for work if a nine-month employee) to the appropriate Administrative Division. This form remains on file in the Division.

2. Mandatory for Permanent Full-Time EPA Appointment (75% Full-Time Equivalent (FTE) or more)*

Optional Retirement Program

Participation in the North Carolina State Retirement System or Optional Retirement Program (available only for appointee holding faculty rank and senior administrators) is mandatory.

3. Optional for Full-Time Permanent EPA Appointment (75% FTE or more)*
More details on the following benefits are available from the Benefit Program Administration.
4. Optional for Permanent Part-Time EPA Appointment (50% to 74% FTE)
More details on the following benefits are available from Benefit Program Administration.

Appointments Ineligible for Benefits

Excludes those appointed for a term of less than 12 months and holding title of "Visiting." If a non-visiting appointment is continued, extended, or renewed for a term which extends service for more than 12 months beyond the date of initial appointment, the employee becomes eligible for benefits as of the effective date of that continuation, extension, or renewal.

TEMPORARY PART-TIME EPA APPOINTMENT (Paid Bi-Weekly)

Approval of Initial Appointment

A. Before an individual may be added to the payroll, the Form PD-7 must be approved by the appropriate Administrative Division as listed below:

Budgetary Approval

Each approved PD-7 is forwarded to the Records Department by the Administrative Division recording final approval and then is routed through the appropriate budget office that is responsible for the approval of the commitment of funds. The budget office forwards the PD-7 and appropriate documents to Payroll Services.

B. The PD-7 should include the following: (Note: Items "1" through " 4" are not necessarily applicable to departments in the Division of Health Affairs.)

Required Information on PD-7

1. Line 1, "Date Action Effective" - August 4, 1997 for Fall Semester and December 8, 1997 for Spring Semester (Note: These dates may vary for some departments in the Division of Health Affairs.)

2. Line 5, "Duration of Appointment" - Indicate the letter "S" for either the Fall or Spring Semester or "A" for the Academic Year.

3. Line 5, "Date to Remove from Payroll" - December 7, 1997 for Fall Semester and April 12, 1998 for Spring Semester.

4. Line 6, "Base Rate" - Specify the total salary to be paid for the period of appointment (do not annualize).

5. Line 10, "Comments" - Indicate all of the current University appointments (EPA and SPA) held by the employee. This information should also be included on the AP-2, Line 6 - current and previous.

6. Line 10, "Comments" - Indicate Resident Alien Number, if applicable.

7. Complete Form I-9, "Employment Eligibility Verification" (refer to the section on Permanent EPA Appointment (Paid Monthly).B.1.c).

8. If applicable, a "PR-100 and Attachments", must be attached to the PD-7 by the initiating department. (See PAY Append. 36 J for sample form)

Information Required by Payroll Services

C. The following forms and information must be on file with Payroll Services (before the " Payroll Cutoff Date," see Payroll Schedule, PAY Appendix 36 A) in order to process the employee payroll checks.

Required State and Federal Tax Forms

1. An NC-4 and W- 4 tax withholding form and/or, if applicable, a PR-100 must be completed. The initial paycheck cannot be issued unless these forms have been filed. All Graduate Assistants, Teaching Assistants, Research Assistants, Predoctoral Fellow Trainees, Clinical Fellows, etc., holding service appointments are required to complete a tax withholding form.

2. A Social Security Number assigned by the Social Security Administration (or statement that official application for assignment of number has been made) must be submitted.

Authorized Deduction Form for Graduate Students

3. A Graduate Student Payroll Deduction Authorization Form (PAY Appendix 36 B), for graduate students holding service appointments who want tuition and fee charges deducted from their paychecks, should be submitted. Forms may be obtained by contacting Payroll Services at 962-0046. Refer to the section on, Payroll Deduction of Graduate Student Tuition and Fees.

NON-DEGREE CANDIDATE NON-SERVICE POST-DOCTORAL AWARDS

Tax Exemption for Non-Service Related Awards

A. Non-Service Post-Doctoral Awards to Non-Degree Candidates constitute taxable income to the individual; however, the University is not required to withhold State and Federal income tax, nor is the award subject to Social Security tax provided the individual is not required to render services to the University as a condition of the award. For administrative purposes and convenience to the recipients, the University will withhold State and Federal income tax from these awards, based on the tax withholding form.

Certification of Exemption for FICA

Payments to these candidates will utilize the object code 6578. However, non-service awards to non-degree candidates paid from object code 6578 do not require Social Security withholding. A Certification for Exemption of FICA must be completed by the respective dean's office to document the award's non-service status. (See PAY Appendix 36 C), "Certification of Exemption of FICA ".)

Non- Service Award with Taxable Supplement

B. The following procedures should be used for payment of Non-Degree Candidate Non-Service Post-Doctoral Awards.

1. Appointment is initiated by the PD-7 form and requires approval from either the Dean, College of Arts and Sciences; the Provost; or the Chancellor; as appropriate. (See PAY Appendix 36 D, Page 1 for a sample form.) The approved PD-7 is forwarded to the Records Department and then routed through the appropriate budget office to Payroll Services.
Additional Pay Subject to FICA
2. Individuals who may have a source of pay subject to FICA, in addition to the source from object code 6578, must complete the following tax forms and forward them to Payroll Services before the " Payroll Cutoff Date" (See PAY Appendix 36 A).
3. Salaries or awards to be paid must be shown in annualized amounts.

Resident Alien Number

4. On the PD-7, Block 10, "Comments" - Indicate Resident Alien Number, if applicable.

FICA Exemption

5. Submit a Certification for Exemption of FICA.

The following procedures should be used for payment of EPA temporary full-time or part-time employees (includes Rank Code 28 Post-Doctoral Research Associate or Rank Code 24, Clinical Fellow).

TEMPORARY EPA FULL-TIME AND PART-TIME (Paid Monthly)

Approval of Initial Appointment

A. Appointment is initiated by the PD-7 form and requires approval from either the Dean, College of Arts and Sciences; the Provost; the Vice Provost for Health Affairs; or the Chancellor; as appropriate. (See PAY Appendix 36 D, Page 2 for a sample form.)

Each approved PD-7 is forwarded to the Records Department by the Administrative Division recording final approval and then is routed through the appropriate budget office that is responsible for the approval of the commitment of funds. The budget office forwards the PD-7 and appropriate documents to Payroll Services.

Completion of Required Tax Forms

B. The following tax forms must be completed and forwarded to Payroll Services before the "Payroll Cutoff Date" (see PAY Appendix 36 A page 2).

1. A NC-4 and W-4 tax withholding form and/or, if applicable, a PR-100 with attachments must be completed.

2. A Social Security Number assigned by the Social Security Administration (or statement that official application for assignment of number has been made) must be submitted.

3. Complete Form I-9, "Employment Eligibility Verification" (refer to section B.1.c page 3). This form remains on file in the appropriate Administrative Division.

C. Salaries to be paid must be shown in annualized amounts.

D. On the PD-7, Block 10, "Comments" - Indicate Resident Alien Number, if applicable.

D. Payments to Graduate Students

1. Compensation through Payroll Services - An EPA Personnel Action (form PD-7) should be processed for service appointments using standard procedures. Graduate students with a teaching assignment are generally paid on the biweekly payroll. Expense object code 1318 - EPA Teaching Student (Biweekly) should be used. The rank code for a Teaching Assistant is 21.

Graduate students with a research assignment are generally paid on the monthly payroll. Expense object code 1117 - EPA Non-Teaching Student (Monthly) should be used. The rank code for a Research Assistant is 22.

Pre Doctoral Fellow trainees are paid on the monthly payroll the rank code is 23.

2. Payment Through Accounts Payable - Fellowship or traineeship payments for non-service awards to graduate students will continue to be paid through Accounts Payable using the Check Request form. The current procedure for use of the Check Request is explained in APY Procedure 1 of this Manual. Procedure 1 indicates that fellowship payments must include specific information in section 5 (Explanation of Charges) of the Check Request form. Procedure 1 will be modified and the following information will be required in section 5 of the Check Request form.

PAYROLL DEDUCTION OF GRADUATE STUDENT TUITION AND FEES

The following policies and procedures should be observed in processing the Graduate Student Payroll Deduction Authorization Form.

A. Departmental Procedures

Deduction Form Required Each Semester

1. A Graduate Student Payroll Deduction Authorization Form (Appendix 36 B) must be completed and signed by the student. A separate form is required for each semester. The forms may be obtained in Payroll Services.

2. The tuition and fee schedule distributed by the University Cashier's Office should be used to estimate tuition and fees.

3. The department should assist the student in completing the four part Graduate Student Payroll Deduction Authorization Form. Attach the original deduction form and one copy to the PD-7 form. A copy of the deduction form is available for the student and the department.

4. The Social Security Number assigned by the Social Security Administration should be used on the deduction form or attach a copy of the application for a Social Security Number. This number should be the same as the Social Security Number in Block 1001 on the PD-7 form.

B. Payroll Services Policy and Procedures

Automatic Deduction Unavailable to Hourly Students

1. Optional payroll deduction of tuition and fees will be available for fall and spring semesters for graduate students holding service appointments. Payroll deduction will not be available to graduate students paid at an hourly rate. A student may have a deduction from only one payroll cycle, biweekly or monthly.

2. Monthly Tuition and Fee Deduction Schedule - Fall semester deductions will be made in September and October. Spring semester deductions will be made in February and March.

Seven Deductions in Nine Pay Periods

3. Biweekly Tuition and Fee Deduction Schedule  -  Deductions will be made in the first seven (7) of the nine (9) pay periods in a semester. Equal payments will be deducted with a seventh and final amount being adjusted automatically by the payroll system to equal the total deduction for the semester.

Retroactive Deductions

4. If the PD-7 form for a student appointment is delayed, an aggregate deduction amount of the number of retroactive pay periods will be made from the next check.

Written Cancellation/or Termination

5. Once established,no change will be permitted in the deduction amount unless employment is terminated or a written notice of cancellation is sent to Payroll Services by either the student or the university cashier.

6. Payroll Services will inform the Cashier's Office of the deduction by forwarding a copy of the deduction form to the Cashier's Office.

C. Cashier's Office Policy and Procedures

Credit or Refund Check

1. Upon receipt of the approved deduction form, the Cashier's Office will code the student's account to designate that payment will be made by payroll deduction. This coding will permit the student to pre-register for the next term.

2. If the payroll deduction results in a credit on the student account, the Cashier's Office will issue a refund check at the end of the semester. However, graduate students are responsible for prompt payment to the Cashier's Office of any outstanding balance on their account at the end of each semester.

Additional Information

See also: APY Procedure 1, Check Request (section #5)

PAY Appendix 36A, Schedule of Cutoff Dates and Paydays

PAY Appendix 36B, Graduate Student Payroll Deduction Authorization Form

PAY Appendix 36C, Certificate of Non-Service Requirement of Scholarship/Fellowship for Social Security Withholding Purposes

PAY Appendix 36D, Sample PD-7 Forms for Post-Doctoral Trainees and Research Associates

PAY Appendix 36E, List of Rank Codes for Student/Others

PAY Appendix 36F, Recommendation for EPA Personnel Action, Form AP-2

PAY Appendix 36G, Recommendation for Student/Other EPA Personnel Action, Form AP-2S

PAY Appendix 36H, EPA Credentials Verification Statement, Form AP-2a

PAY Appendix 36I, Employment Eligibility Verification Statement, Form 1-9

PAY Appendix 36J, Alien Information Request, Form PR-100

ACT Policy 31, Graduate Student Health Insurance Program

ACT Procedure 6, Enrollment Procedures for Graduate Student Health Insurance Program

ACt Appendix 17, Verification of Student Eligibility Form

ACT Appendix 18, Enrollment and Change Form

Also, Form I-9, Employment Eligibility Verification, can be found at the Bureau of Citizenship and Immigration Services Web site.

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