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24 HB Fiscal Polices Ft Procedures <br /> Section . Payroll Process <br /> A. Overview <br /> This section applies to the tracking of time worked and the processing and disbursement of <br /> salaries to employees. HB maintains an appropriate segregation of duties, as included in the <br /> procedures, in order to ensure checks and balances in the payroll process. <br /> B. Policies If Controls <br /> 1. Process payroll for work performed. <br /> 2. Properly calculate and process payroll amounts and deductions, record them in the <br /> accounting system. <br /> 3. An individual independent of payroll processing responsibilities verifies payroll for <br /> accuracy. <br /> 4. Properly communicate, approve, and track employee leave. <br /> 5. Record status changes in a timely manner to prevent unauthorized or erroneous payroll <br /> disbursements. <br /> 6. Maintain and store payroll files securely to limit inappropriate access to confidential <br /> information. <br /> C. Process Description <br /> HB calculates gross pay of salaried employees by dividing the annual salary by the number of pay <br /> periods during the year. Salaried employees receive the same gross pay each pay period regardless <br /> of the number of hours worked. Hourly employees are paid based on the number hours worked, as <br /> documented on an approved timesheet, using the most recently approved hourly pay rate for that <br /> employee. <br /> HB follows all State and Federal laws and regulations when calculating pay for overtime. <br /> HB processes payroll on a biweekly basis through an outsourced payroll processing company. The <br /> payroll processing company provides the following services: <br /> • Calculation and electronic deposit of all federal and state taxes. <br /> • Preparation of all quarterly payroll tax returns. <br /> • Preparation of the annual W-2 statements. <br /> Changes to net pay include changes to insurance and other deductions. Staff must complete a <br /> Personnel Transaction Ft Payroll Deduction Form for all actions that create a change in net pay. <br /> In accordance with the Fair Labor Standards Act, all payroll records must show the date, amount, <br /> and description of deductions from wages. The employee's personnel file should contain the <br /> original documents supporting the authorization of each deduction. <br /> Finance staff accumulates confidential payroll information, including timesheets and payroll <br /> registers, and maintains them in the payroll files, which are stored electronically in a secure <br /> location. <br /> Last updated September 2022 <br />