Payroll Payroll Service OverviewService Overview

February 24, 2011February 24, 2011

Payroll OrganizationPayroll Organization

Quality of relationships make an Quality of relationships make an organization workorganization work

Our experiences shape who we are: Our experiences shape who we are: empathy, inclusiveness, ability to deal with empathy, inclusiveness, ability to deal with peoplepeople

Escalate: Payroll Services report to Vice Escalate: Payroll Services report to Vice Chancellor FinanceChancellor Finance

PCCD BUDGET & FINANCE

Org Chart

What service does payroll provide?What service does payroll provide?

Payroll Services acts as a liaison to the District community as Payroll Services acts as a liaison to the District community as well as to Federal, State and local authorities.well as to Federal, State and local authorities.

Monitor and implement payroll tax law changesMonitor and implement payroll tax law changes Manage Payroll audit requirementsManage Payroll audit requirements Work closely with Human Resources, Benefits and Campus Work closely with Human Resources, Benefits and Campus

contacts to process employee changescontacts to process employee changes Maintain employee payroll recordsMaintain employee payroll records

continuedcontinued

Process mandated documents (W-4, DE4, voluntary Process mandated documents (W-4, DE4, voluntary elections such as 403b and 457 elections, as well as non elections such as 403b and 457 elections, as well as non voluntary elections such as Pension Contributions and voluntary elections such as Pension Contributions and wage withholding orders)wage withholding orders)

Process and distribute checks and advice slipsProcess and distribute checks and advice slips

Work with Accounting to post Payroll transactions to GLWork with Accounting to post Payroll transactions to GL

Process stop payments of lost or stolen paychecksProcess stop payments of lost or stolen paychecks

Issue W-2s and replacement of lost W-2sIssue W-2s and replacement of lost W-2s

Service providedService provided

Pay DatesPay Dates

Last Business Day of the MonthLast Business Day of the Month AdministratorsAdministrators 10,11,12 month Faculty10,11,12 month Faculty Extra Service (Regular Faculty 10, 11, 12 month)Extra Service (Regular Faculty 10, 11, 12 month) Returning Certificated RetireesReturning Certificated Retirees Regular Classified who are adjunctsRegular Classified who are adjuncts Board of TrusteesBoard of Trustees Student TrusteesStudent Trustees

1515thth of the month of the month Returning Classified RetireesReturning Classified Retirees Part-time Temporary ClassifiedPart-time Temporary Classified Student EmployeesStudent Employees

Reading the Pay statementReading the Pay statement1.1. Pay Period:Pay Period: Your regular pay and normal deductions are for the Pay Your regular pay and normal deductions are for the Pay

Period indicated here. Your earnings may be increased or decreased Period indicated here. Your earnings may be increased or decreased based on certain events (such as eligible overtime worked, shift pay, or based on certain events (such as eligible overtime worked, shift pay, or unpaid time off) that occurred between the Pay Begin and Pay End Day.unpaid time off) that occurred between the Pay Begin and Pay End Day.

2.2. Employee ID:Employee ID: This is your Employee ID number in the Payroll System. This is your Employee ID number in the Payroll System. Your Department Name and Number. The Location Code represents the Your Department Name and Number. The Location Code represents the payroll distribution area within your department that distributes your direct payroll distribution area within your department that distributes your direct deposit advice or paycheck. Your job title is also listed here.deposit advice or paycheck. Your job title is also listed here.

3.3. Tax Data:Tax Data: Your federal tax withholding status is shown here, along with Your federal tax withholding status is shown here, along with the number of allowances you have claimed and any additional the number of allowances you have claimed and any additional withholding you have requested.withholding you have requested.

4.4. Hours and Earnings:Hours and Earnings: Shows your earnings for the current pay period Shows your earnings for the current pay period and for the year to Day. Any additional earnings for the pay period are and for the year to Day. Any additional earnings for the pay period are also reflected.also reflected.

5.5. Taxes:Taxes: Includes federal withholding, Medicare (MED/EE) and Social Includes federal withholding, Medicare (MED/EE) and Social Security (OASDI/EE) taxes.Security (OASDI/EE) taxes.

ContinuedContinued

Reading the Pay statementReading the Pay statement6.6. Before-Tax Deductions: Before-Tax Deductions: These items are deducted from your pay before federal These items are deducted from your pay before federal

withholding and, in some cases, before Medicare and Social Security taxes are withholding and, in some cases, before Medicare and Social Security taxes are calculated. Includes the cost of benefits you selected and contributions to your calculated. Includes the cost of benefits you selected and contributions to your retirement account (s).retirement account (s).

7.7. After-Tax Deductions: After-Tax Deductions: Any other items withheld from your pay, such as additional Any other items withheld from your pay, such as additional insurance deduction, local 1021 dues and fees or Peralta Federation Contributions insurance deduction, local 1021 dues and fees or Peralta Federation Contributions . These amounts are deducted from your pay after federal withholding; Medicare . These amounts are deducted from your pay after federal withholding; Medicare and Social security taxes are calculated.and Social security taxes are calculated.

8.8. Employer-Paid Benefits:Employer-Paid Benefits: Show the value of any benefits paid by Peralta Show the value of any benefits paid by Peralta Community College District, such as employer paid portion of retirement, or Community College District, such as employer paid portion of retirement, or employer paid portion of medical insurance costs.employer paid portion of medical insurance costs.

9.9. Federal Taxable Gross:Federal Taxable Gross: The amount of pay that is subject to federal withholding The amount of pay that is subject to federal withholding tax. This is your current total earnings minus your current total before-tax tax. This is your current total earnings minus your current total before-tax deductions.deductions.

10.10. Net Pay Total:Net Pay Total: Your net pay is your current total gross pay minus your current Your net pay is your current total gross pay minus your current total before-tax deductions, current total taxes and current after-tax deductions. total before-tax deductions, current total taxes and current after-tax deductions. This is your “take-home” pay.This is your “take-home” pay.

11.11. Net Pay Distribution:Net Pay Distribution: For direct deposit, this area shows how much was credited For direct deposit, this area shows how much was credited to your bank, savings and loan or credit union account (s). The total of all amounts to your bank, savings and loan or credit union account (s). The total of all amounts will equal your Net Pay Total (see #10 above). If you do not have direct deposit, will equal your Net Pay Total (see #10 above). If you do not have direct deposit, this section is your actual paycheck.this section is your actual paycheck.

2011 Payroll Tax Cuts Boost Take-Home Pay

Temporary Employee Payroll Tax Cut (also referred to as the Payroll Tax holiday) provides two percentage point payroll tax cut for employees, reducing the Social Security tax withholding to 4.2% from 6.2% of paid wages effective January 1, 2011.

2011 Federal withholding tables Note: Employees may see an increase in their 2011 federal

withholding taxes because the Making Work Pay credit expired December 31, 2011.

Noteworthy reminder: Employees should review their withholdings every year and if necessary fill out a form W-4 and submit to payroll.

continued

District ComplianceDistrict Compliance All payroll processes are subject to auditAll payroll processes are subject to audit

Without approval and correct Without approval and correct documentation payments to employees documentation payments to employees will be delayedwill be delayed

Overtime requires written approval from Overtime requires written approval from College President or Vice Chancellor of College President or Vice Chancellor of your department for each submission your department for each submission

(12/9/10 Memo from Chancellor Allen)(12/9/10 Memo from Chancellor Allen)

Many middle and lower income taxpayers may not see a bounce in their take home, because The Making Work Pay (TMWP) Tax Credit worth up to $400 per person expired at the end of 2010

While SS withholding went down, the income withholding went back to what it was before 2009.

If you made over $75,000/year you were not eligible for TMWPTC of ~35.00 a paycheck last year. The 2% rate is obvious and clear to you this year.

Those who made less than $75,000 were getting the TMWP tax credit last year. With the 2% SS rate cut for 2011 - the net will be a little confusing - technically facing a loss of the ~$35 month credit they were getting – now the 2% SS rate cut.

Bottom line: the 2% Employee SS tax rate is REAL and is applied to Everyone.

2011 Payroll Tax Cuts

PayrollPayrollService CenterService Center

Objective is to provide current information Objective is to provide current information and Resourcesand Resources

Online todayOnline today Payroll FormsPayroll Forms Payroll FAQ’s Payroll FAQ’s Contact information for CalSTRS & CalPERSContact information for CalSTRS & CalPERS Timesheet deadlinesTimesheet deadlines

Future Changes Future Changes Payroll Service Center Payroll Service Center

Information and updatesInformation and updates Prorata Rewrite Project (go-live Fall 2011)Prorata Rewrite Project (go-live Fall 2011) Time and Effort reportingTime and Effort reporting

Required for all Federal Fund ProjectsRequired for all Federal Fund Projects• Education Special Projects/Services Roll-outEducation Special Projects/Services Roll-out

Online Time ReportingOnline Time Reporting Project kick-off December 2010Project kick-off December 2010 Completion in 2011 (?)Completion in 2011 (?)