Payroll Service Overview

1. Payroll Service Overview February 24, 2011

2. Payroll Organization • Quality of relationships make an organization work • Our experiences shape who we are: empathy, inclusiveness, ability to deal with people • Escalate: Payroll Services report to Vice Chancellor Finance

3. Org Chart PCCD BUDGET & FINANCE

4. What service does payroll provide? • Payroll Services acts as a liaison to the District community as well as to Federal, State and local authorities. • Monitor and implement payroll tax law changes • Manage Payroll audit requirements • Work closely with Human Resources, Benefits and Campus contacts to process employee changes • Maintain employee payroll records continued

5. Service provided • Process mandated documents (W-4, DE4, voluntary elections such as 403b and 457 elections, as well as non voluntary elections such as Pension Contributions and wage withholding orders) • Process and distribute checks and advice slips • Work with Accounting to post Payroll transactions to GL • Process stop payments of lost or stolen paychecks • Issue W-2s and replacement of lost W-2s

6. Pay Dates • Last Business Day of the Month • Administrators • 10,11,12 month Faculty • Extra Service (Regular Faculty 10, 11, 12 month) • Returning Certificated Retirees • Regular Classified who are adjuncts • Board of Trustees • Student Trustees • 15th of the month • Returning Classified Retirees • Part-time Temporary Classified • Student Employees

8. Reading the Pay statement • Pay Period: Your regular pay and normal deductions are for the Pay Period indicated here. Your earnings may be increased or decreased 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. • Employee ID: This is your Employee ID number in the Payroll System. Your Department Name and Number. The Location Code represents the payroll distribution area within your department that distributes your direct deposit advice or paycheck. Your job title is also listed here. • Tax Data: Your federal tax withholding status is shown here, along with the number of allowances you have claimed and any additional withholding you have requested. • Hours and Earnings: Shows your earnings for the current pay period and for the year to Day. Any additional earnings for the pay period are also reflected. • Taxes: Includes federal withholding, Medicare (MED/EE) and Social Security (OASDI/EE) taxes. Continued

9. Reading the Pay statement • Before-Tax Deductions: These items are deducted from your pay before federal withholding and, in some cases, before Medicare and Social Security taxes are calculated. Includes the cost of benefits you selected and contributions to your retirement account (s). • After-Tax Deductions: Any other items withheld from your pay, such as additional insurance deduction, local 1021 dues and fees or Peralta Federation Contributions . These amounts are deducted from your pay after federal withholding; Medicare and Social security taxes are calculated. • Employer-Paid Benefits: Show the value of any benefits paid by Peralta Community College District, such as employer paid portion of retirement, or employer paid portion of medical insurance costs. • Federal Taxable Gross: The amount of pay that is subject to federal withholding tax. This is your current total earnings minus your current total before-tax deductions. • Net Pay Total: Your net pay is your current total gross pay minus your current total before-tax deductions, current total taxes and current after-tax deductions. This is your “take-home” pay. • Net Pay Distribution: 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 will equal your Net Pay Total (see #10 above). If you do not have direct deposit, this section is your actual paycheck.

10. 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

11. District Compliance • All payroll processes are subject to audit • Without approval and correct documentation payments to employees will be delayed • Overtime requires written approval from College President or Vice Chancellor of your department for each submission • (12/9/10 Memo from Chancellor Allen)

12. 2011 Payroll Tax Cuts • 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.

13. PayrollService Center • Objective is to provide current information and Resources • Online today • Payroll Forms • Payroll FAQ’s • Contact information for CalSTRS & CalPERS • Timesheet deadlines

14. Future Changes • Payroll Service Center • Information and updates • Prorata Rewrite Project (go-live Fall 2011) • Time and Effort reporting • Required for all Federal Fund Projects • Education Special Projects/Services Roll-out • Online Time Reporting • Project kick-off December 2010 • Completion in 2011 (?)