The University of Montana



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PAYROLL PROCEDURES

Modified: January 13, 2012

Updated: February 20, 2013

The University of Montana pays the following benefits on behalf of eligible employees as required by law: Social Security, Retirement, Unemployment Compensation, and Worker’s Compensation.

These benefits are based on a percentage of wages. If the employee has split funding, then the employer paid benefits are expensed to each funding source by applying the benefit rate to the applicable wages paid from each funding source. Employer paid benefits are expensed to the funding source at the time the wages are paid.

Health Insurance

The University of Montana pays health insurance for all eligible employees. Unlike other benefits, health insurance is a specific dollar amount determined by The Board of Regents, is paid in advance and always pertains to a full month. An employee is covered from their first day of work through the end of the month in which they terminate.

The employer paid premium is prorated to funding sources in the following manner:

Existing Employees

• The employer paid premium is expensed to the funding sources as provided by the department, either the default labor string on the JOB record or the over-ride information that is provided during payroll. The health insurance premium is pro-rated between any covered positions that the employee might fill based on the wages that are allocated to each funding source.

New Hires

• New hires are provided with health insurance coverage from the date of hire. The state approved employer contribution to health insurance will be pro-rated to the funding sources provided.

Terminations

• When an employee terminates, health insurance coverage will continue throughout the month, regardless of which day of the month the employee terminates. In the month of termination, the employer paid premium is charged to the funding source(s) on record, as stated above for existing employees.

• Until there is a Termination or Leave of Absence form on file in Human Resource Services, health insurance will continue to be charged to the last funding source(s), even if there were no wages being paid.

NOTE: it is imperative that termination paperwork be turned in as soon as it is known the employee is leaving. Without the paperwork the originating department may be charged for health insurance for an employee who actually left. This money will not be refunded to the department since the employee was carried on the policy and could have sought medical care during the time they were covered.

Academic Year Employees - Summer Months

The University of Montana provides a full year (12 months) of health insurance coverage for all permanent academic year (10 month) employees as provided by the provisions of their bargaining agreements.

During the summer months, 10-month employees are placed in a leave status with benefits. The employer paid health insurance premium for these employees continues to be charged to the labor string in effect at the time the record is put on benefit leave status. If an academic year employee works for 10 months in one department and for another department during the summer, the health insurance will continue to be charged to the academic year (10 month) department. Wages paid for Summer Session Teaching and Summer Session Research are not subject to the health insurance premium.

If a department wishes to charge the health insurance to a different funding source during the summer for a 10-month employee, then Human Resource Services must be notified in writing by May 15th. After May 15th the academic year department will be charged for summer health insurance coverage and expenses will not be redistributed.

Employer Paid Benefits

|Account # |Description |FY 11 |FY 12 |FY13 |

|61401 |Social Security |.062 |.062 |.062 |

|61402 |PERS Retirement |.0717 |.0717 |.0717 |

|61403 |Health Insurance |$733.00/month |$733.00/month |$733.00/month |

|61404 |Worker’s Comp Ins – Low |.00694956 |.00615 |.0067 |

|61404 |Worker’s Comp Ins - High |.04955089 |.04285 |.0434 |

|61409 |Medicare |.0145 |.0145 |.0145 |

|61410 |Unemployment |.0015 |.0025 |.0035 |

|61411 |TRS Retirement (2TR) |.0985 |.0985 |.0985 |

|61415 |TIAA CREF Retirement (2TI) |.10676 |.09676 |.9676 |

|61498 |Grant Leave Assess – Sick (Missoula) |.05 |.05 |.05 |

|61498 |Grant Leave Assess – Annual (Missoula) |.065 |.065 |.065 |

|Calendar Year |Maximum Subject to Social Security |Social Security Rate |

|2013 |$113,700.00 |0.062 |

|2012 |$110,100.00 |0.062 |

|2011 |$106,800.00 |0.062 |

|2010 |$106,800.00 |0.062 |

|2009 |$106,800.00 |0.062 |

|2008 |$102,000.00 |0.062 |

Employer paid TIAA CREF Faculty/Admin/Contract Professional Rate - Split between ORP and CREF > .05956 to CREF / .0472 to TRS – monthly paid employees in this category

Employer paid TIAA CREF Staff Rate - Split between ORP and CREF > .0449 to CREF / .02545 to PERS – bi-weekly paid employees in this category

EMPLOYEE Rates:

|2TI |0.07044 |

|2TR |0.0715 |

|2PE/2PC/2TC | |

|Hire date 07/01/2011 |0.079 |

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