MASBO Classified Personnel Training Program

1. MASBO Classified Personnel Training Program PAYROLL PROCEDURES October 2015 Sara Consalvo Budget Director Worcester Public Schools consalvos@worc.k12.ma.us

2. New Hire Forms ▪ • Change Forms ▪ • Resignations, Terminations, Retirements, Position Changes, Location Changes (Charge salary to specific location) • Weekly “No Pay” Reports • Exhausted Sick Days, Unpaid Leave, Etc. • Interpretation of Collective Bargaining Units (CBU) Coordination with Human Resources

3. "Instructional Assistants who serve as a substitute for less than a full school day shall be compensated in increments of one-half hour. A formal mechanism and procedure shall be established by the Administration to govern the manner of requesting substitute coverage; the manner of approval of substitute coverage; and the manner of assignment of substitute coverage. Absent approval by the Principal, the substitute work by the Instructional Assistant shall not be compensated. The Principal retains absolute discretion and authority as to the determination and selection of Instructional Assistants in the school to utilize for substitute coverage. • Full Day at half of the DxD Sub rate of $70 ($35/day) • Half Day at quarter of the DxD Sub rate of $70 ($17.50/half day) • Half hour increments ($35 ÷ 6 = $5.84 x .50 = $2.92 per one-halfhour) Interpretation of Collective Bargaining Units (CBU)

4. Mass.gov → Jobs & Education → Workers Resources & Labor Laws → Wage & Hour Regulation Resource for employees not covered by CBU* • Minimum Wage • Timely Payments of Wages • Termination Pay Mass.gov

5. Knowledge of Ongoing Reforms within the Pension System • Memorandum #33, 2011 ▪ • Excluded from Regular Compensation or Not Retirement Eligible • General Knowledge of Working After Retirement – MTRS Website • Setting up Payroll System • Verify eligibility of additional payments, stipends for retirement contributions • Internal pay codes may need to be added/adjusted • Examples: • Longevity Payments • Sick, Vacation Payoffs Regular Compensation

6. 52 Pays – Weekly Paid Full Year Employees (July 1st – June 30th) • 37 Pays – Weekly Paid School Year Employees (September – June) • 24 Pays – Semi Monthly Paid Full Year Administrators • 26 Pays – Biweekly “Stretched” Paid School Year Employees (September – August) Payroll Schedules

7. 26 Biweekly Pays per School Year (September – August) • Fixed Schedule (Check Date ▪ Processing Date) • Lump Sum Payment in July – Written Request Adjustment Pays & Examples

8. Example of how to treat an employee going on unpaid leave of absence on December 31st • Employee Details: • Annual Salary = $52,000 • Paid Status First Day of School through 12/31 • 76 Days before 12/31 | 107 Days After = 183 • Snow Days – Count in June Adjustment Pays & Examples

9. Annual Salary = $52,000 • Biweekly Pay (26 pays) = $2,000 • Daily Rate (Annual/183) = $284.15 Adjustment Pays & Examples

10. First Day of Reporting: August 26, 2013 • Total Earned = (Days worked x Daily Rate) • 76 days x $284.15 = $21,595.40 • Receives 9 Biweekly Pays through 12/31 • Total Received = $18,000 (9 x biweekly) • Amount Owed = $3,595.40 • Adjustment paid (9th or 10th Biweekly Pay) • If employee returns, recommend per diem payments for remainder of year Adjustment Pays & Examples

11. Example of how to treat an employee Mid-Year Cost Living Adjustment 01/01/14 • Employee Details: • Annual Salary = $52,000 • Biweekly Pay (26 pays) • 76 Days before 12/31 | 107 Days After = 183 • Snow Days – Count in June • Example uses 1% Increase • Same Formula for Step Increases* Adjustment Pays & Examples

12. $52,000 Before 01/01/14 • Biweekly: $2,000.00 • Daily Rate: $284.15 • $52,520 After 01/01/14 • Biweekly: $2,020.00 • Daily Rate: $287.00 Adjustment Pays & Examples

13. Adjustment Pays & Examples How much can employee earn for school year? • 76 days at : $284.15 = $21,595.40 • 107 days at : $287.00 = $30,709.00 • Total to Earn: = $52,304.40

14. Adjustment Pays & Examples $18,000 $32,320

15. Adjustment Pays & Examples • How much can employee earn for school year? • 76 days at : $284.15 = $21,595.40 • 107 days at : $287.00 = $30,709.00 • Total to earn: = $52,304.40 • How much is the projected pays? • 9 pays at $2,000 = $18,000.00 • 16 pays at $2,020 = $32,320.00 • Total Projected: = $50,320.00 • One Pay at Adjusted Rate

16. Adjustment Pays & Examples Total to earn: = $52,304.40 Total projected: = $50,320.00 Difference = $ 1,984.40 • One Pay at Adjusted Rate

17. Adjustment Pays & Examples

18. Allows the organization to record the anticipation of a future contractual transaction which is deferred to a separate account prior to the new fiscal year. Salaries (“stretch” summer pay) are debited when processed throughout July and August from prior year funding. Salary Encumbrances

19. Model payroll expenses to accurately project salary accounts • Compare budget to actual expenditures • Monitor position usage (FTE) • Increments ▪ Cost of Living Increases (Mid Year) • Degree Changes • Adjustments for Vacancies ▪ Leaves ▪ Position Growth • Expected Funding Offsets (Federal Reimbursements) • End of Year Payments • Stipends (Advisors) • Sick Leave Buy Back Payroll Projections…

20. Payroll Projections & Examples…

21. Maintain Payroll Procedures Manual • Maintain Contracts per Collective Bargaining Unit (CBU) • Electronic by CBU • Maintain Salary Book • History of Salary Increases per CBU * • Random Audit of Employee Pays each Period • Knowledge of MA Wage Laws • Coordination with HR Department – Weekly • Know your data and be able to explain adjustments • Explain Payroll Changes Period-to-Period • Comments - Payroll Projections Payroll Best Practices…

22. If you don’t shoot for excellence, you never have a chance of getting there. (Ken Blanchard – Leading at a Higher Level) Questions…