USMF Business Services Help Desk

These policies pertain to administrators and other campus personnel who manage employees paid through the USM Foundation payroll system or who maintain Foundation related documents and records.

Control Objectives: To ensure that payroll disbursements are made only upon proper authorization of management to bona fide employees; that payroll disbursements are properly recorded; and that related legal requirements such as payroll taxes are in compliance.

Employee Categories: Employees can be classified as a full-time or a part-time employee; exempt or non-exempt (exempt means they are not entitled to overtime). Labor laws are specific as to what constitutes exemption, so please check with the USM Foundation payroll administrator to determine which category the employee falls.

Employee Personnel Files:

• Required documents: Before an employee can be paid, the following documents submitted by the department must be on file at the USM Foundation

1. Employment Data Form: specifies employment status, salary, and eligible benefits; identifies the department, account number, employee supervisor and person with signature authority.
2. Signed form confirming that the employee has received a copy of the USM Foundation personnel manual.
3. IRS Form W-4 and State W-4
4. IRS Form I-9
5. Nonresident Aliens (also known as Foreign Nationals) require the following additional documents as part of their file:
   • Copy of their Visa with a valid I-94 card/stamp
   • Copy of a valid passport
   • Form I-20 or Form IAP 66 (whichever is applicable)
   • Copy of Social Security card
   • Completed Foreign National Data Form (used to determine whether a person is a nonresident alien or a resident alien for U.S. income tax purposes.) The form is available through the USM Foundation payroll office.

Employment Agreements: an Employment Agreement may be included in the personnel file when and if an employee has been hired for a specific time period and the employer wants to document that

arrangement for the record. In those cases, the person with signature authority should submit a letter to the USM Foundation that documents the arrangement. The USM Foundation President will also sign the letter if the parties involved want the document to reflect the signatures of both the employer and the USM Foundation.

Any promises or commitments made to a new hire outside of the normal pay and benefits must be preapproved and documented in an employment agreement. This may include promises related to bonus pay arrangements, specific salary adjustments at specific times, or prearranged leave time outside normal leave time policies.

General Payroll Procedures:

• Personnel files: The Payroll Administrator maintains the personnel files. He/she confirms that all required documents are completed and on file for each employee.
• Timesheets: bi-weekly timesheets approved by immediate supervisor(s) must be submitted. These are done on-line through the third-party payroll provider’s website. This record is used to compute pay for hourly employees and maintain leave records for salaried employees.

1. Hourly employees will only be paid upon submission of a timesheet. Timesheets must be entered and approved by the end of business on the Monday after the pay period ends. If it is received late, payment will be deferred to the next pay period.
2. Salaried employees must also submit a timesheet for every two-week period.

• Annual Leave: the USM Foundation Payroll Administrator, using information submitted through the third party on-line bi-weekly timesheets, maintains the record of annual leave accrued and used by the employee. It is the employee’s responsibility to check and monitor these accrued/used balances and to notify the Payroll Administrator immediately if there are any errors. When an employee resigns or is terminated, accrued annual leave will be paid only to the extent that the information has been provided to the USM Foundation for its payroll records.
• Payroll Changes: All payroll changes must be submitted on the proper form with employee and/or supervisory approval as applicable. Questions regarding the form to be used should be directed to the Payroll Administrator.

Payment Procedures:

1. The Payroll Administrator maintains the employee records based on new hire documentation and various change forms and prepares the payroll register based on the supervisor approved time entry into the third-party payroll provider’s time & labor website.
2. The Personnel Changes report and Payroll register, along with all supporting documentation are reviewed by the CFO and Director of Business Operations. Upon approval, the Senior Executive Accountant submits the payroll for check printing by the third-party payroll service provider..
3. The Assistant Comptroller performs the monthly bank reconciliation with approval by the Director of Business Operations.

 The third-party payroll service provider or the Payroll Administrator calculates and remits tax payments, insurance premiums and other required assessments according to the schedule indicated below:

Tax Information for Non-US citizens: 

Resident Aliens: for U.S. Income Tax purposes, people in this category are treated as U.S. citizens.

Non-resident Aliens: specific tax rules and requirements apply, per Internal Revenue Code

• For U.S. income tax purposes, F-1, J-1, M-1 and Q-1 Visa holders classified as Nonresident Aliens are exempt from FICA and Medicare.
• Form W-4: for U. S. income tax purposes, the law requires an additional federal withholding

each pay period for all persons classified as Nonresident Aliens at the current required rate.

1. Nonresident Aliens may never claim exemption from federal withholding and must complete the Form W-4 as follows:
   • Filing Status – Single (even if marital status is not single)
   • Number of exemptions claimed must be 1 or 0
   • Additional federal withholding must be shown
     • Note: State tax rules and requirements follow the federal guidelines.