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HomeMy WebLinkAbout5.E.3. Adoption of Payroll Policy .S: F`.3 CITY OF SHAKOPEE a Memorandum TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator ' SUBJECT: .Adoption of Payroll Policy DATE: February 15, 2008 Introduction The Council is asked to adopt the attached Payroll Policy. Background When the City revised its Personnel Handbook last year, our attorneys at Kennedy and Graven suggested that the level of detail found in the old handbook on some subjects was more appropriate for an administrative policy than for the Personnel Handbook. Therefore, staff is working on a number of administrative policies related to our human resources activities. The first such policy is the attached Payroll Policy, outlining key dates and deadlines on our payroll calendar and the responsibilities of employees and .supervisors. The attached policy has been reviewed by the City's Department Heads and our attorneys at Kennedy and Graven. It largely reflects current practice, but does contain a few policy changes. The policy changes are as follows: 1. The new policy states that timesheets shall be approved by the employee's direct supervisor, which may or may not be a Department Head. Currently our timesheets provide a signature line only for the Department Head's approval. As the City staff has grown, an increasing number of employees have a direct supervisor who is not a Department Head. It is recommended that direct supervisors be authorized to approve timesheets because they are in the best position to know each employee's work schedule, vacation and sick days, etc. 2. The new policy authorizes use of electronic timesheets, and provides that they shall be used by alI full-time employees, unless the employee does not have regular access to a computer or there is a valid business reason to continue with paper timesheets. The City has been testing an electronic timesheet feature that is part of our payroll software and is now ready to roll it out to all full-time employees. There are several advantages of moving to an electronic system. Most notably it eliminates the need for our HR Technician to key in each employee's time into the payroll system. This frees up her time to do other things and reduces the potential for typographical and mathematical errors. The electronic system also allows an employee's timesheet to be routed to their supervisor and then on to payroll without the need to physically transport it from one City building to another. Relationship to Vision: Adoption of the attached Payroll Policy is intended to contribute to Goal E: a Financially Strong City. Requested Action: If it concurs with the contents of the proposed policy, Council is asked to offer Resolution 6730, A Resolution Adopting a Payroll Policy for the City of Shakopee, and move its adoption. RESOLUTION No. 6730 A RESOLUTION ADOPTING A PAYROLL POLICY FOR THE CITY OF SHAKOPEE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA, that the attached Payroll Policy for the City of Shakopee is hereby adopted, effective February 20, 2008. BE IT FURTHER RESOLVED, that all Resolutions in conflict with this resolution are hereby repealed and terminated effective February 20, 2008. Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota, held this 20`'' day of February, 2008. Mayor of the City of Shakopee ATTEST: City Clerk Payroll Policy .for the City of Shakopee Application. The following policy applies to all employees of the City of Shakopee, except paid-on-call firefighters. Pay Periods. The pay period shall be a fourteen (14) day period beginning on Monday at 12:01 a.m. and continuing to the second following Sunday at 12:00 a.m. (midnight). All hours worked shall be credited to the day and pay period when the shift began. For the purpose of computing overtime under the Federal Fair Labor Standards Act, the work period for all employees, except sworn police officers, is a seven-day period. Unless otherwise specified in writing by an employee's supervisor, the work period shall begin on Monday and end on Sunday. For sworn police officers, the work period is a 28 day period, with the first work period of the year corresponding to the first two pay periods of the payroll year and subsequent work periods following every 28 calendar days. Paydays. Employees shall be paid on a bi-weekly basis. Payday shall be the first Friday following the close of a pay period. When a payday falls on abank-recognized holiday, employees shall receive their pay the preceding workday. Direct Deposit. As permitted by Minn. Stat. 471.426, direct deposit of payroll. is required for all employees. Employees may elect to have their paycheck divided amongst a maximum of four (4) bank accounts. Employees may change the bank account(s) to which their paycheck is deposited as necessary by filing a new Direct Deposit Agreement with the HR Technician no Later than the close of business ten calendar days prior to payday (i.e. the second Wednesday of a pay period.) Pay Stubs. A paper document detailing the hours worked, pay received, taxes and deductions withheld, and current leave balances shall be provided to all employees for each pay period. Paystubs shall be distributed to the employee's home department via inter-office mail the morning of payday. An employee's home department is responsible for distributing paystubs to employees, including mailing paystubs to employees who work off-site or are on an extended leave. Corrections. In situations where an employee believes there is an error in his or her pay, the employee shall contact the HR Technician as soon as possible, and not in excess of 30 days after receiving the pay amount in question. In cases where an error is confirmed, the error shall be corrected as part of the next payroll cycle. Deductions /Withholdings. Deductions /withholdings for insurance premiums (medical, dental, AFLAC, supplemental life), for Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions, and court-ordered payments (such as child support) shall be processed out of the first two paychecks of each month. State and federal taxes, PERA, deferred compensation and contributions to Post-Employment Health Care Savings Plans shall be processed out of every paycheck. 1 Changes to Deductions /Withholdings. In cases where elections impacting payroll deductions and/or withholdings are not limited to the annual open enrollment period, an employee may make changes as necessary by filing the appropriate paperwork with the HR Technician no later than the close of business ten calendar days prior to payday (i.e. the second Wednesday of a pay period.) This includes filing a new W-4 form and making changes to deferred compensation or HSA contributions. Recording Hours Worked A record of all hours worked shall be maintained by all employees, in the format most appropriate for their position. Whenever possible, full-time employees shall record their time to an electronic timesheet, while part-time and seasonal employees shall utilize a timeclock. Paper timesheets shall be utilized only in those cases where employees do not have regular access to a computer/timeclock or in cases where there is a valid business purpose for the use of paper timesheets. Employees instructed to use a paper timesheet must complete the timesheet in blue or black ink and sign it in the location indicated. All time worked shall be recorded against the specific day on which the shift began and shall be charged to the appropriate business unit and, where necessary, the appropriate sub-ledger account. Using Leave Time Employees wishing to use leave time, including vacation, sick and comp time, must submit an Absence Request Form to their direct supervisor. For leaves that are foreseen, such as vacation days, the Absence. Request Form must be submitted prior to the absence. In cases where an absence was not foreseen, such as a sick day, the employee is still obligated to submit an Absence Request Form upon their return. Once acted on by the supervisor, all Absence Request Forms must be forwarded to the HR Technician no later than the first Monday following the close of a pay period. Employee Responsibilities All employees must prepare their own record of hours worked and must do so in the assigned format (paper timesheet, electronic timesheet or timeclock -hereafter referred to as "timesheet"). Unless otherwise directed by their supervisor, employees are to submit their completed timesheet to their direct supervisor no later than 10:00 a.m. on the Monday morning following the close of a pay period. Except in the case of shortened work weeks or other unusual circumstances, time should not be recorded to timesheets until after it has been worked and timesheets should not be submitted to supervisors until the employee has completed all scheduled shifts for the pay period. However, employees taking vacation time or other extended leaves that will run up to and/or past the close of a pay period, can and should prepare and submit timesheets in advance of their leave. All employees are obligated to report hours worked accurately and completely. Employees found to have falsified their record of hours worked in any way shall be subject to discipline, up to and including termination. 2 Supervisors' Responsibilities Timesheets shall be approved by the employee's direct supervisor and submitted to the HR Technician no later than 1:00 p.m. on the Monday following the close of a pay period. Supervisors are responsible for reviewing timesheets to ensure that all hours worked are recorded appropriately, paid leave time has been used and recorded appropriately, and that all relevant provisions of the City's personnel handbook and applicable union contracts have been adhered to in terms of overtime, comp time, holiday pay, etc. Supervisors are also responsible for: 1. Correcting any errors on an employee's timesheet and communicating those changes or corrections to the employee; (In the case of a paper timesheet, changes made by a supervisor must be done in ink and initialed. "White-out" should not be used on timesheets.) 2. Tracking down and obtaining a timesheet from any employee who has not submitted a timesheet by the 10:00 a.m. deadline; 3. Arranging for a qualified alternate to approve timesheets in cases where the supervisor will be or is absent on the Monday morning of a payroll week. Timesheets Not Submitted by Deadline In cases where an employee does not submit their timesheet as instructed and by the deadline, the employee may have to wait until the next payroll cycle in order to be paid for those hours worked. The City will not run a special or interim payroll process for individual employees who have failed to complete and submit their timesheet as instructed. 3