Carroll College, Helena Montana

Payroll Services

The mission of Payroll Services is to provide accurate and timely payment to staff, faculty and student employees in an efficient and cost effective manner.  Payroll Services is also committed to providing accurate payroll related information to the College community, as well as, limiting exposures to tax and reporting liabilities.

Payroll Services strives to be fair, honest and professional in our dealings with all constituents and to be sensitive to their needs.  We are dedicated to our constituent's satisfaction through maintaining an "open-door" policy and encouraging the exchange of ideas. 

Payroll Service staff seek to be known for the quality of our character, competence, commitment and confidentiality. 

 

 Payroll Types


There are several different types of payroll with different cut-off dates.  Determination of the payroll for which an employee qualifies is as follows:

1)      Full-Time Faculty and Staff, Priests and Adjunct Faculty

  • Pay period cut-off is the end of the work month
  • Pay date is the last working day of the month.  If the pay date falls on a weekend or holiday, then pay day is on the preceding business day.
  •  Full-time staff timesheets are due on the 1st business day after the 15th of each month.  (i.e. if January payday is on January 31st, the timesheet would be due on January 16th.  The time period turned in would be for December 16th - January 15th.  The payment received for the month of January is actually for January 1st - January 31st.  It is important that the employee's supervisor communicate to payroll any leave without pay.  The Payroll Accountant will not have knowledge of an employee being gone for the dates between the 16th and last working day of each month until the following month)   
  • Paychecks and Pay Advices for direct deposit are sent via campus mail, hand delivered or mailed via US Postal Service. 
  • Information on new salaried employees or any other changes (tax filing status, deduction changes, etc.) affecting paychecks are due by the 20th of each month in order for them to be reflected on the end of the month payroll.    

2)      Hourly Staff

  • Pay period cut-off is the end of the work month
  • Timesheets are due in the Business Office the 1st business day of each month
  • Pay date is the 5th of each month.  If the pay date falls on a weekend or holiday, then pay day is on the preceding business day.
  • Information on hourly staff or any other changes affecting paychecks are due by the 1st of each month.  
  • Paychecks and Pay advices for direct deposit may be picked up in the Business Office between the hours of 9:00 a.m. and 4:00 p.m.
  • Picture I.D. is required

3)      Work-study and Regular College Students

  • Pay period cut-off is the end of the work month
  • Timesheets are due in the Office of Human Resources the 1st business day of each month
  • Pay date is the 10th of each month.  If the pay date falls on a weekend or holiday, then pay day is on the preceding business day. 
  • Information on hourly staff or any other changes affecting paychecks are due by the 1st of each month.
  • Paychecks may be picked up in the Business Office between the hours of 9:00 a.m. and 4:00 p.m.
  • Picture I.D. is required


Payroll Calendar


Processing of the salary and wage payroll each month requires considerable cooperation and adherence to schedules from all departments.

All payroll authorization comes to the Payroll Office from the Office of Human Resources, and not directly from departments.  The Payroll Office cannot process paychecks on a timely basis unless departments forward information on changes, new hires, terminations and other related items to the Office of Human Resources on or before the dates indicated under Pay Types. Failure to meet the required deadlines could delay the processing of the employee's paycheck. 


Employment Requirements


Before any employee can be paid, they must fill out an I-9 and a W4 form.  These forms must be filled out in the Human Resource Office no later than three days after the employee begins working.  Employees will not be paid without these forms on file. 

The W-4 form provides us with your tax information and the address on it is used for mailing your year-end tax reports (W-2).  If you filled out a W-4 during the past or current calendar year, you will not need to fill out another one, unless you filed EXEMPT.  If you filed EXEMPT, you will need to fill out a new form for each year you want to maintain an EXEMPT status.  You can change you W-4 form at any time during your employment at Carroll College. 

A Payroll Authorization Form must be signed by the student supervisor for each job a student holds. 


Time Sheet Requirements


Time sheets must be received in the Business Office by 12:00 p.m. on the time sheet due date.  Late time sheets will not be processed until the next pay cycle.  Time sheets that are not signed, are inaccurate and/or incomplete will not be processed until corrections are made.  A time sheet must be submitted for each pay cycle worked.  Time sheets must be signed by both the employee and supervisor. 


Direct Deposit


Direct Deposit is available to all full-time and part-time permanent employees, including students.  Payroll checks can be deposited directly into checking or savings accounts at any credit union, savings and loan or banking institutions which accepts direct deposit. 

This feature eliminates lost checks, and you do not have to make a trip to the bank to deposit or cash your check.  All the Payroll Office needs is a voided check from your account.  Please apply for direct deposit with the Payroll Office or the Office of Human Resources. 


Payment for Services


 It is Carroll College's policy that payments for services are not to be made in cash, whether such services are performed by employees, independent contractors, or vendors.  It is also not permissible to make payments for services through a credit to an individual employee's Corporate Credit Card. 

All payments for services must be made through the Payroll Office or Accounts Payable Office in accordance with the procedures described below.  This is necessary to ensure compliance with Internal Revenue Service rules and regulations, and to ensure that appropriate internal controls are followed, with regards to payments for services.

Procedures

  • Payments for services rendered by employees are not to be made in any manner other than through the Payroll Office, to facilitate the appropriate tax withholding.  This includes payments to employees for services performed beyond their normal job duties or outside of the department in which they are regularly employed.  This also includes student employees, regardless of whether or not they are performing services beyond their normal job duties or outside of the department in which they are regularly employed. 
  • Payments to independent contractors and vendors must be made through the Accounts Payable Office. 

Independent Contractor Policy


 The IRS has been very aggressive in looking at how Colleges and Universities classify their workers. The penalties for incorrectly classifying employees as independent contractors are significant. If a worker paid as an independent contractor is reclassified by the IRS as an employee, the College will be liable for the amount of the federal income taxes it failed to withhold, together with both the employer's and employee's share of FICA taxes associated with that employee's compensation.

In addition, Carroll College is responsible for the withholding and timely remittance of appropriate income taxes from wages paid to our employees. These wages and taxes paid to employees are reported on Form W-2; amounts paid to independent contractors are reported on Form 1099.

It should be noted that the IRS tends to view an individual performing teaching functions for a College as an employee of that College for tax purposes regardless of the duration.

A current employee of the College will not be considered an independent contractor.

Definitions:

Employee - an individual in an employment situation in which the employer has the right to control and direct the individual with regard to the result to be accomplished and the process by which the result is accomplished. Since the main focus of Carroll College is higher education, any individual performing a teaching function must be treated as an employee.

Independent contractors - individuals who render a service and meet contractor conditions established by the IRS. They typically have a separate workplace, are not supervised, and have a particular set of skills not available elsewhere within the organization. They are not entitled to employee benefits, are not covered by workers' compensation, and their pay is usually not subject to income tax withholding.

Consultants - independent contractors who more specifically provide professional advice. They usually have a separate skill or expertise not available within the College, and the need for their services commonly does not extend beyond a limited period of time in which to complete a specifically defined project. Individuals who are currently employed by the College who may be asked to serve as consultants for other College departments must be paid through Payroll with all appropriate taxes withheld.

Classification Factors

A worker is an employee, not an independent contractor, if an employer/employee relationship exists. Such a relationship exists if the College has the right to DIRECT AND CONTROL the worker, both as to the final results and the details of when, where, and how the work is to be done.


Guidelines to Consider When an Independent Contractor Relationship Exists.


 The hiring of an independent contractor or consultant should be based upon a selection process which attempts to secure the most qualified individual for the assignment. Compensation should be appropriate for the type of advice or service provided and should reflect the skills and qualifications of the individual selected to perform the service.

  • Do not establish a work schedule.
  • Do not provide office space or training.
  • Do not furnish tools and materials.
  • Do not require the independent contractor to provide regular verbal or written reports.
  • Payment for the assignment should be based generally on one fee for performing the service rather than by the hours spent on that assignment.
  • The independent contractor may need to provide proof of liability coverage.
  • Incidentals such as travel, meals and materials should be included in the fee, or should be stated, for example, "as not to exceed ten percent of the fee."
  • Any other arrangements for reimbursement of travel or other expenses must be reviewed in advance with the Accounts Payable Department and should be specified in the agreement otherwise the College will not be liable for travel expenses.
  • Do not include an independent contractor's name in the Carroll College telephone directory or request the issuance of a regular parking permit.
  • Be mindful that independent contractors who earn more than $10,000 a year from a single employer and who do not perform services for any other employer are likely to be considered employees by the Internal Revenue Service.

Registration Requirements for Independent Contractors


For purposes of providing the necessary reports to the federal government, consultants, independent contractors (individuals or partnerships), and non-college honoraria recipients must be registered with the College as non-employees before a payment of services can be processed.

An IRS Form W-9 must be completed by all non-employees providing personal services.  The W-9 provides the tax identification number (TIN) of the contractor and certifies that the TIN is correct and that the contractor is not subject to backup withholding. 

All Montana residents must provide proof of Workman's Compensation Insurance Coverage or have an exemption certificate from the State of Montana.

Any person not holding an Independent Contractor Exemption approved by the Department of Labor will be considered an employee. Therefore any person claiming independent contractor status must provide a copy of their approval letter to the Accounts Payable Department before performing any work on campus.

A Certificate of Liability Insurance Coverage naming Carroll College as a holder on the certificate is also required.  If applicable, the Certificate of Insurance should also include automobile coverage. 


Jury Duty Payments


 Release time is granted to an employee who is summoned to jury or witness duty.  Pay received for jury duty is to be submitted to the Business Office and the employee will be paid at the employee's current base rate of pay.

Employees should notify their supervisor as soon as possible after learning of the jury or witness duty assignment.  Proof of jury or witness duty (i.e., the court summons) may be required in advance of the jury or witness duty assignment. 

When excused from jury or witness duty, the employee must report to work as soon as possible.


Awards, Prizes and Gifts


 This policy establishes the criteria for issuing an award, prize, or gift to an employee of Carroll College.  Its intent is to ensure that awards, prizes, and gifts are properly accounted for and any required taxes are recorded and withheld.  Under Federal Tax Laws, these types of items provided by an employer are generally considered taxable wages and subject to appropriate income taxes, with limited exception, as described below. 

Any award, prize, or gift issued, to an employee, for improvement suggestions, attendance achievement, or any other work related achievement, or in lieu of wages are subject to withholding, since it is made in connection with and as a result of an employment relationship. 

    A. Cash

1) Any cash award, prize, or gift is taxable and must be paid through Payroll Services.

 

2) Cash awards, prizes, and gifts will be added to the employee's next regularly scheduled paycheck.

3) Gift Certificates, Gift Cards, Money Orders, and Checks are taxable at any amount. 

4) Separate paychecks will not be issued. 

5) If you are making a special presentation of the award, prize, or gift, you should notify the Office of Human Resources and the Payroll Department and we will make every effort to coordinate the payment to appear in the next check following the presentation date.  It is suggested that you utilize a letter or certificate in lieu of the check for presentation. 

  1. Non-Cash

1) Occasional gifts of merchandise (e.g. turkeys, flowers, de minimis) that are of nominal value are not taxable and need not be reported to Payroll Services.
2) Items of more than a nominal value are taxable and must be reported to Payroll Services. 

Prizes and awards made primarily in recognition of religious, charitable, scientific, educational, artistic, literary, or civic achievement, is not considered taxable if all of the following requirements are met:

  • The recipient was selected without action on his or her part to enter the contest, and
  • The recipient is not required to render substantial future services as a condition to receiving the prize or award, and
  • The recipient designates a governmental or charitable organization to which the payer transfers the prize or award directly. 
  • Please contact Payroll Services if you have any questions regarding this policy.

Personal Use of College-Provided Vehicles


 Under Federal Tax Laws, personal use of employer provided vehicles are considered taxable wages and subject to all appropriate income taxes.  If an employee uses a Carroll College provided vehicle for both business and personal travel, the employee must account for the business use.  This policy establishes the procedures for reporting personal use of a vehicle provided by Carroll College.  Its intent is to ensure that personal use of the vehicle is properly accounted for and all required taxes are recorded and withheld.

Business use should be accounted for by substantiating the mileage, the time and place of the travel, and the purpose of the trip.  Any use of a company-provided vehicle that is not substantiated as business use is defined by the Internal Revenue Code to be personal use and must be included as income.  It is suggested that a log be maintained to record the daily business use.  It should be noted, when determining business use, the Internal Revenue Code states that travel to and from the workplace is not considered business use and such should be included as personal use of the vehicle. 

A log must be submitted by all employees who have used a College vehicle for personal use.  The log should include a summary of the total miles, business miles, personal miles and an explanation of the business purpose of the travel.  The employee and employee's supervisor should sign the log and submit it to the Payroll Accountant on a monthly basis.   


Employer's Tax Guide to Fringe Benefits

http://www.irs.gov/pub/irs-pdf/p15b.pdf

            or

http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf

Paycheck Calculator

http://www.paycheckcity.com/netpaycalc/netpaycalculator.asp

W-4 Assistant

http://www.paycheckcity.com/w4/w4instruction.asp