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Policy 5-402: Payroll Deductions

  1. Purpose and Scope
    1. To set forth the policy governing payroll deductions.
  2. Definitions
    1. Employee organization - a voluntary nonprofit association or organization, or a local campus unit or chapter of such an association or organization, the membership of which is predominantly composed of university employees, which exists for the primary purpose of promoting and protecting the interests of its members in the terms, conditions, rights and responsibilities associated with their employment by the university.
    2. Processing charges - a one-time or periodic charge, including but not limited to a fee to be added to each voluntary payroll deduction, to assist in defraying the cost of processing voluntary payroll deductions.
  3. Policy
    1. Mandatory Deductions - The university is required by law to make certain deductions from employee's gross earnings, including income taxes and social security taxes. In addition, for certain benefit programs which require payments by participants, the university may specify payroll deduction as the only acceptable method of payment.
    2. Voluntary Deductions - Clerical, administrative, and data processing expenses are associated with each payroll deduction made. In an effort to minimize such costs and assure optimal use of the university's data processing resources, voluntary payroll deductions will be made available to employees without charge only in circumstances which are regarded by the university as supportive of or beneficial to the university's goals and objectives, including fringe benefit programs for university employees.
    3. Processing Charges - When voluntary payroll deductions are made available primarily as a convenience to employees of the university, a processing charge may be imposed.
    4. Scheduling of Deductions - Payroll deductions ordinarily will be distributed in equal amounts to each paycheck issued during the period of time for which the deductions are authorized.
    5. Amount of Voluntary Deductions - Voluntary payroll deductions in the amount of less than one dollar per paycheck, exclusive of authorized processing charges, or for less than six successive payroll periods, are not authorized. Each voluntary payroll deduction must be for an equal amount during each pay period.
  4. Rules Procedures, Guidelines, Forms, and other related resources
    1. Rules
      1. Rule 5-402: Eligibility Standards for Voluntary Deductions
    2. Procedures
    3. Guidelines
    4. Forms
  5. Contacts
    1. Policy Owner: Questions about this Policy and any related Rules, Procedures and Guidelines should be directed to the Compensation Analyst.
    2. Policy Officer: Only the Vice President for Human Resources or his/her designee has the authority to grant exceptions to this Policy.
  6. History
    1. Renumbering: Renumbered as Policy 5-402 effective 9/15/2008, formerly known as PPM 2-60.1
    1. Current version: Rev. 10
      1. Approved by the Academic Senate: October 3, 2011
      2. Approved by the Board of Trustees: October 11, 2011
      3. Background information for Revision 10
    2. Earlier versions:
      1. Rev. 9: effective dates: July 1, 1978 to October 10, 2011
        1. Approved by the Institutional Council March 16, 1978
      2. Rev. 8: effective dates: August 14, 1989 to July 1978

Policy: 5-402 Rev: 10
Date: October 11, 2011
Last Updated: 9/23/21