( ( MICHIGAN STATE UNIVERSITY OFFICE OF 1HE CONTROLLER 305 JOHN A. HANNAH ADMINISTRATION BUILDING TELEPHONE (517) 355-5020 February 1, 1988 MEMORANDUM EAST LANSING • MICHIGAN • 48824-1046 TO: Deans, Chairpersons, Directors and Department Heads FROM: Lowell E. Levi, Controller ;/7/~ SUBJECT: ANNUAL UPDATE TO THE MSU MANUAL OF BUSINESS PROCEDURES Revisions to the Manual of Business Procedures dated September 30, 1987 are enclosed. Pages of the sections referenced below should be substituted for corresponding pages dated earlier. The listing of section/page numbers and the appropriate dates that should be contained in an up-to-date manual has also been updated. A brief explanation of the changes follows: VOLUME I Introduction - Correction to title "Manual of Personnel Policies & Procedures." Section 5 - Revised form "Application for Agency Account - Student Organization." Section 15 - Additional instructions for Deposits, Cash Handling Policy and new details on Wire Transfers. Section 25 - General reorganization of the section as well as updates to University Transportation, Initial Arrangements, and Authorization. Section 45 - Revised explanations under items I, II, and VII. Section 47 - Updates on documentation on the voucher and signature requirements. Section 53 - More specific income tax details. Section 55 - Overall update and reorganization of the section especially concerning determining employment status, independent contractors, appointment and hiring, Payroll processing forms, petty cash/cash advances, and final payments to terminated employees. MSU is an Affirmative Action/Equal Opportunity Institution ANNUAL UPDATE TO THE MSU MANUAL OF BUSINESS PROCEDURES February 1, 1988 Page 2 Section 70 - Overall revision and updates to section on new University travel policies and procedures regarding the corporate card, travel advances, the preferred travel agency, revised reimbursement chart and key cities. Section 74 - Correction of form number for "Vendor Invoice Confirmation." Section 75 - Revisions to the direct payment voucher preparation, restrictions, and routing; to the multiple check voucher preparation and routing; to the reimbursement voucher preparation and routing. An item was added on the Weekly Voucher Check Summary report and form. Index - Page numbers updated. VOLUME II Section 210 - Updates to Signature Digitization, Equipment Considerations, Equipment Repairs, and CICS Access Procedures. Section 230 - Revisions to Surgery Facilities (fee), Animals (ordering/new form), Charges for Animals, Services and Materials (new form number 0-13433), Statements, and a new item on Training. Also revised was the Policies for Assignment of Animal Space by LACS. Section 235 - Revised copy fee. Section 236 - Changes in the Library's search rates. Section 240 - Revision of number of labels and addition of item V. on changes. Section 245 - Revisions to Qualifications of Drivers and Use of University Vehicles, Bus Service, Garage Service, Fuel Services, and Vehicle Safety Inspections. Section 250 - Section has been rewritten and reduced to one page. Section 255 - Labels added to Word Processing Services Section; Telecopier replaced with Facsimile Machine; changed from Xerox 9400 Copier to 9500 Copier housed in Office Services; whole section reformatted. Section 260 - Update to Automotive Services, phone number corrected under Power and Water, changes in terminology under Paperwork Processing and Payment -- "scheduler" and "Work Control Center." Section 265 - General Information -- changes in hours and phone number for the Graphics Studio. Also, updates to Photographic Services, Visual and Film Production, and Billing Statements. Section 275 - Change of hours under General. "Traffic Office" changed to "FM Program Manager" under Services Offered. ( ( ( ( ANNUAL UPDATE TO THE MSU MANUAL OF BUSINE~S PROCEDURES February 1, 1986 Page 3 Section 285 - Updates to Services Provided, also to Copy Centers and Statements. Addition of Coin-Operated Copy Machines and Facsimile Copier. Whole section was reformatted. Section 290 - Minor revisions under Editorial and Design and Publications available. Section 305 - Revisions to Stipends and Tuition and Fees. Section 315 - Revisions to financial support and indirect costs under Sponsored Research. Section 340 - Overall revision of the section beginning with item 111.,A. Index - Page numbers updated. mt Enclosures ( ( ( ( Date: 9-30-87 MANUAL OF BUSINESS PROCEDURES VOLUME I PAGE LAST UPDATE PAGE LAST UPDATE ( i.l - i.2 TOC I.1 - TOC I. 2 1. 1 1. 2 - 1. 5 1.6 1. 7 1.8 5. 1 5.2 5.3 - 5.5 5.6 5.7 5.8 10.1 - 10.2 10.3 - 10.7 12.1 - 12.4 15 .1 - 15.8 16.1 18.1 - 18.5 19.1 - 19.4 20.1 20.2 20.3 20.4 20.5 - 20.6 20.7 25 .1 - 25.7 30.1 - 30.3 35.1 - 35.17 9-30-87 9-30-86 3-31-80 9-30-85 3-31-80 9-30-85 9-30-77 1-21-87 9-30-86 9-30-85 9-30-87 3-31-79 9-30-85 9-30-86 9-30-85 3-31-83 9-30-87 9-30-85 9-30-86 9-30-85 9-30-85 9-30-86 9-30-77 9-30-85 3-31-80 5-31-84 9-30-87 5-31-81 9-30-86 40.1 40.2 - 40.3 40.4 43.1 45.1 - 45.6 46.1 - 46.7 47.1 - 47.2 50.1 - 50.5 53.1 - 53.2 53.3 55.1 - 55.26 60.1 60.2 60.3 - 60.6 65.1 65.2 - 65.3 66.1 - 66.3 66.4 - 66.6 68.1 - 68.6 70.1 - 70.41 74.1 74.2 - 74.3 74.4 75.1 - 75.8b 75.9 75.10 75.11 75. 12 IND I.1 - IND 1.4 9-30-86 3-31-83 9-30-86 9-30-85 9-30-87 5-31-84 9-30-87 3-31-83 9-30-87 9-30-86 9-30-87 3-31-83 5-31-81 9-30-86 3-31-80 5-31-84 5-31-81 5-31-84 5-31-84 9-30-87 9-30-87 3-31-83 1-31-78 9-30-87 9-30-86 9-30-85 9-30-86 9-30-87 9-30-87 Page: Date: i. l 9-30-87 MANUAL OF BUSINESS PROCEDURES MICHIGAN STATE UNIVERSITY Introduction ( This Manual was compiled to assist individuals who have a need for information regarding proper University business procedures. All possible situations could not be covered in the limited space ( available; therefore, only generally applicable procedures are contained herein. Unusual problems should be referred to the department or administrative unit involved. The Manual has been divided into two volumes each with a table of contents and an index. Volume I contains general accounting and business procedures; Volume II contains information on specific service areas and miscellaneous functions. Each table of contents lists the procedures by title in section number order. Each index lists subjects with the section and page number referenced. The pages of each individual section are numbered by section and by page, for example page 25.3 is the third page (xx.3) of Section 25 (25.x), Field Trips. This numbering system ( facilitates both referencing and subsequent revising. Personnel procedures are specifically outlined in the following publications, published separately: ( Non-Academic "Manual of Personnel Policies and Procedures" Academic Student "Faculty Handbook" "Student Employment Manual" Page: Date: 9-30-87 i. 2 MANUAL OF BUSINESS PROCEDURES (Introciuction Continued) Information regarding obtaining medical treatment for work related injuries is included in the Employee Benefit Programs section of the "Manual of Personnel Policies and Procedures" beginning on page W-1. All users are encouraged to make suggestions for improving the Manual. Suggestions concerning procedures from Volume I should be directed to the Controller's Office, 305 Administration Building. Suggestions concerning procedures from Volume II should be directed to the department responsible. The Controller's Office, 355-5020, should be informed of department name and location changes, so the manual updates, when distributed, will be sent to the proper office and location. If a department no longer needs a set of manuals (e.g., discontinued operations), the set should be sent to the Controller's Office for distribution to others. ( ( ( Normal updates, revisions and additions are made annually. If a department wishes to change or add a procedure, it should send the revision or new procedure to the Controller's Office, 305 ( Administration Building, telephone 355-5020. Urgent changes and/or additions will be made through the year as deemed necessary. IT IS IMPORTANT THAT NO PROCEDURE BE CHANGED WITHOUT INCORPORATING IT IN THIS MANUAL. MICHIGAN STATE UNIVERSITY APPLICATION FOR AGENCY ACCOUNT - STUDENT ORGANIZATION Page: Date: 5.6 9-30-87 1) ACCOUNT NUMBER: 2) NAME OF ORGANIZATION: ---------------------------- 3) PURPOSE OF THE ORGANIZATION: ------------------------- 4) What is the source of income? ------------------------- 5) Has this Organization ever had a University account? Yes(when) - - - - - - - - No 6) Have any group members been associated with a student organization that has been closed within the last year? If ~ explain: ------------------------------- No - - - - Yes ( 7) As OFFICERS of this organization we understand that we are responsible for any financial obligations incurred by this organization and for any overdraft in this University account. 8) OFFICER/ADVISOR INFORMATION:(Please print or type all but signature) TITLE NAME SIGNATURE STUDENT# CLASS LOCAL PHONE# LOCAL ADDRESS TITLE NAME SIGNATURE STUDENT# CLASS LOCAL PHONE# LOCAL ADDRESS TITLE NAME SIGNATURE STUDENT# CLASS LOCAL PHONE# LOCAL ADDRESS ADVISOR: NAME SIGNATURE CAMPUS PHONE # CAMPUS ADDRESS 9) Have you received a copy of the rules governing agency account operation Yes and do you understand them? No - - - - ***************************************************************************************** 10) Verification of Organization registration and approval of request: STUDENT ACTIVITIES OFFICE OFFICE OF THE VICE PRESIDENT FOR STUDENT AFFAIRS AND SERVICES CONTROLLER'S OFFICE DATE DATE ( ( Page: 15.l Date: 9-30-87 CASH HANDLING I. RESPONSIBILITY A. Each department is responsible for the cash and checks it receives for the University. Funds may be received from sales of items, tickets, meals, etc. B. If funds are received and the department does not have a cash register to record sales, £renumbered receipt forms must be used. The only exception to this would be in the case where prenumbered tickets are sold. II. CASH RECEIPT FORMS A. The following forms are to be used for receipting trans actions involving cash or checks: 1. Uarco numbered receipt form for use in an Uarco machine. This form may be obtained from Stores, stock order #140-2814. 2. For temporary or infrequent use, booklets of prenumbered receipt forms can be obtained from Stores, stock order #140-2483. III. DEPOSITS A. Departmental Deposit Receipt, form number CO-ca-45c (see sample, page 15.8) is to be used by a department to deposit money with the Cashier's Office, 110 Administration Building. This form may be obtained from Stores, stock order #140-2450. It should be prepared 1n the following manner: 1. Prepare the deposit form in duplicate. 2. The grid for "Description To Be Put On Ledger" should be completed with information to identify the deposit when it is reported on the fund ledger. ( ( ( ( (Cash Handling Continued) Page: 15.2 Date: 9~30-87 3. Account number(s) and appropriate revenue code(s) (see Section 65, Revenue Codes) must be indicated. 4. Sign, address, date, and place phone number at the bot tom of the deposit form. 5. Total for the top half of the form must be identical to the total for funds being tendered (bottom half). 6. All checks being tendered must be restrictively endorsed "for deposit only, Michigan State University'' at the minimum and include the depositing department's name and account number (handwritten or by stamp) on the back. 7. For a deposit consisting of four or more checks, an adding machine tape must accompany the checks. If no adding machine tape is available, a list of the check amounts and a total on a piece of paper is acceptable. 8. Itemize checks, currency and coinage separately. 9. All currency should be banded by denomination and coinage rolled where possible and must bear the name of the department or 1n the case of coin, name and address of the individual from whom the roll is accepted. These supplies may be obtained from Stores. B. If receipts are large, deposits should be made daily. The University has a contract with an armored car service that will make scheduled pick-ups of departmental deposits from a department on a per trip fee basis and deliver them to the Cashier's Office. For further information, contact the Manager of the Cashier's Office, 110 Administration Building, telephone 355-5023. Page: 15.3 Date: 9~30-87 (Cash Handling Continued) c. When receipts are infrequent or of a nominal amount ($50.00 or less), departments should make deposits at least every two weeks. The funds must be accumulated in a secure place prior to making the deposit. D. The Cashier's Office~ 110 Administration Building, is open from 8:15 a.m. to 4:15 p.m., Monday through Friday. For deposits at other hours, a department may use the night depository located at the front of the Administration Building. E. £or all deposits, the Cashier's Office will validate the deposit and return the duplicate copy to the department for its records. IV. CASH HANDLING POLICY A. Checks should be made payable to Michigan State University. If checks are received by mail, the senders should be noti fied in advance to make their checks payable as indicated above and to mail them to the attention of the department involved. Checks which have been made payable to persons or departments must be endorsed by the payee prior to deposit. All checks must be restrictively endorsed "for deposit only, Michigan state University" at a minimum, in writing or with a stamp when received by a department. B. Checks drawn outside the continental United States should be made payable to Michigan State University in U.S. funds pay able through a U.S. bank. Any check drawn on a foreign bank not having a correspondent bank in the United States may be ( ( ( ( ( ( (Cash Handling Continued) Page: Date: 15.4 9-30-87 returned for compliance with this policy. Any fees associ ated with the depositing of these checks will be charged to the depositing account number. Further information regarding the acceptance of checks drawn outside the U.S. may be obtained from the Manager of the Cashier's Office, 110 Administration Building, telephone 355-5023. C. No personal check(s) in excess of the amount of the purchase should be accepted. Checks CANNOT be cashed at a department for the accommodation of the University faculty, staff or students. Persons responsible for handling University funds should, under no circumstances, cash personal checks from these funds. D. ALL RECEIPTS MUST BE DEPOSITED WITH THE CASHIER'S OFFICE. Refunds or other expenditures must NOT be made from cash receipts. Large numbers of similar refunds can be made from petty cash funds obtained by the department for that purpose (see Section 60, Petty Cash Funds). Miscellaneous or infre quent refunds may be made through the use of a multiple check voucher or a direct payment voucher. In these instances checks will be mailed to the individuals. v. OVERAGES AND SHORTAGES All large or unusual overages/shortages or reconciling problems must be reported to the Office of the Controller on a timely basis. Page: 15.5 Date: 9-30-87 (Cash Handling Continued) VI. CASH CONTROL RECORDS Daily records should be kept of the inclusive receipt or ticket numbers and the total amount for which the receipts were written or tickets sold. Deposits with the Cashier's Office should also reflect the inclusive receipt or ticket numbers and the total amount collected. VII. RECEIPTS The maintenance of a numerical file of all receipts is the responsibility of the department. Since all prenumbered receipts must be accounted for, all original copies of voided receipts should be stapled together and must be retained by the department. Copies of receipts are to be retained by the depart ment and attached to the departmental copy of the deposit slip. VIII. SECURITY Funds should not be left unlocked or unattended and should be concealed from general view. Receipt records should not be kept with the funds received. The University has a contract with an armored car service that will make scheduled pick-ups of departmental deposits from a department on a per trip fee basis and deliver it to the Cashier's Office. For further information, contact the Manager of the Cashier's Office, 110 Administration Building, telephone 355-5023. IX. CHECKING ACCOUNTS THE USE OF CHECKING OR OTHER BANK ACCOUNTS BY UNIVERSITY PERSONNEL FOR THE DEPOSITING OF UNIVERSITY FUNDS IS STRICTLY PROHIBITED. (Cash Handling Continued) X. CHECKS REFUNDED OR CANCELLED Page: Date: 15.6 9-30-87 A. Refunds from vendors or individuals - Occasionally depart ments have checks returned from vendors or individuals because of erroneous payments, the return of merchandise, or unfulfilled services. In such cases, departments can have the check redeposited into the account from which the original payment was issued by sending the check and a note stating the circumstances and the account number to the Accounting Department, 360 Administration Building. When applicable, a copy of the document authorizing the payment initially should also be attached. B. Cancelled Checks - Checks drawn on an MSU account which a department wishes to cancel should be sent to the Accounting Department accompanied by a note stating the reason for the cancellation. The note must be signed by an authorized departmental signer. Valid reasons for cancellation are: 1. Wrong payee or amount. 2. Cancellation of the purchase or service the check was to cover. Checks cannot be cancelled where there still exists a legal obligation to pay for services rendered. No refunds or cancellations will be credited to General Fund accounts in the current fiscal year for payments made or checks drawn in a previous year. ( ( ( ( (Cash Handling Continued) XI. WIRE TRANSFERS Page: Date: 15.7 9-30-87 The University accepts wire transfers of funds as payment of outstanding student and departmental debt. Wire transfers should be sent to the University's bank, Michigan National Bank, marked ''for the account of the Board of Trustees, Michigan State University". The indicated ABA routing number should be 0720-0080-5, our account number should be listed as 1933-20986-6. Have the sending party indicate that the funds being wired are to be forwarded to the MSU Cashier's Office, by order of the individual/business who is to receive the credit, along with the department to be credited. Transfers corning from outside the United States may take as long as 10 days to be credited to the University's bank account. For further information, contact the Manager of the Cashier's Office, 110 Administration Building, telephone 355-5023. ( ( ( ( ( ( Page: Date: 15.8 9-30-87 I : I ; j : ' ! I I i j I Form No. CO-ca-45c \ MICHIGAN STATE UNIVERSITY~---\ East Lansing DEPOSIT RECEIPT \ ·, Refer to Manual of Business Procedures, Section 15. Prepare in duplicate. Use typewriter or print. Enter Account Name, Account No. , Revenue Code and amount deposited to each account . Sales tax collected , if any, should be entered on line indicated. Departments desiring additional information for their re cords, use reverse side. Present both copies, with funds to be deposited, to the Cashier's Office , 110 Administration Bldg . Sou rc e of Funds DESCRIPTION TO BE PUT ON LEDGER I I I I I I I I I I I I I I I Account Name Account No . Sales & Use Tax Collected 21-3236 TOTAL (Must Agree With Total Deposit Below) , Rev. , Code I I Amount I I I I I I I I I I I I 995 Itemize Checks Currency Coins $100 $ 50 $ 20 $ 10 $ 5 $ 1 Other 50¢ 25¢ 10¢ 5¢ 1¢ Other Sub Totals Deposited by Signature Campus Address TOTAL DEPOSIT I Do Not Write Below This Line ( Please Print) CSH NO . Date _____ __ _ Phone ~ - - - - - - - - - MSU is an Affirmative Action/ Equal Opportunity Institution 0 -14243 Must Be Machine Receipted To Be Valid (Stock# 140-2450) FIELD TRIPS I. GENERAL ( Page: 25.1 Date: 9-30-87 A. B. This section sets forth procedures for instructors of organized groups of students to schedule tranSJX)rtation for field trips in connection with a University program. The Board of Trustees has issued a policy that the cost of field trips, including the travel expenses of the instructor, MUST be paid by the participating students. Departments are not permitted to subsidize any portion of the cost of a field trip. II. UNIVERSITY TRANSPORI'ATION A. Buses, sedans, vans, station wagons and other vehicles are available for transportation. B. Qualifications of drivers must be in accordance with all laws and regulations of the Federal government, the State of Michigan and the stipulations of the Office of Risk Management and Insurance and the University Travel Regulations (Sec. 35 and 70). c. Errployees (including graduate assistants) may drive University vehicles (except buses) on authorized University trips. Students (except graduate assistants) may drive only under conditions specified by the Office of Risk Management and Insurance (see Sec. 35, page 11) . III. INITIAL ARRANGEMENTS A. Field trips should be planned far enough in advance of the departure date to enable the students to have the total estimated cost of the field trip paid to the Cashier's Office, 110 Administration Building, three (3) working days prior to the departure date. Field trip costs include: 1. Transportation costs 2. Travel expenses of instructor and instructor's aid, if any. B. The first step in scheduling a field trip is to furnish the Autorrotive Services Office (Motor Pool 353-5280) with the following information (see Sec. 245, Vol. II): ( ( ( (Field Trips cont.) Page: 25.2 Date: 9-30-87 1. Type of vehicle(s) required 2. Date and time of departure 3. Destination 4. Date of return 5. Name of person to whom vehicle is to be assigned and/or person responsible for coordinating the field trip. When University Motor Pool vehicles are not available for the date(s) requested, the custaner will be offered the choice bet~en leasing a vehicle from an off-carrpus source or using their personal autorrobile. Off-carrpus leases are arranged by the M:)tor Pool Office. Transportation estimates will be provided upon request. c. After arrangements have been made with M:)tor Pool, the following information should be furnished to the Field Trip Office, 110 Administration Building, 353-9175: 1. Name and deparbnent of person in charge of the trip 2. Date of departure and return 3. Destination 4. The number and type of vehicles 5. Estimated total cost given by M:)tor Pool 6. Total number of students expected to participate in the trip. Upon receipt of the above information, the Field Trip Office will assist the person or deparbnent in charge in determining the fee to be paid by the students. The fee must be approved by the Field Trip Office prior to announcing the field trip arrangements to the class. IV. ACO)UNT NUMBER Any deposits or charges for field trips should be made to the "Field Trip" account (21-3207). V. AUI'HOR!ZATION A. The authorization form to use in requesting Motor Pool services is, "Request for Interdepartrnent Material or Service" (see Page 25.6). Forms may be obtained from General Stores (stock #140-2842). (Field Trips cont.) Page: 25.3 ' Date: 9-30-87 B. Type the form in triplicate. The description should confirm the telephone arrangements and indicate the estimated total cost. c. Send the original and one copy to the Field Trip Office. The department should keep a copy for their files. The Field Trip Office will review the requisition, approve it and forward it to Motor Pool. ( VI. PAYING FDR THE TRIP A. Each student should be charged an amount such that the total collected from all students is sufficient to cover the estimated total cost of the trip (see III C above). B. Payment should be made by each student directly to the Cashier's Office. The "Field Trip Deposit Cards," (Form CO-ca-7a see page 25.7) should be used for this purpose and are available in the Cashier's Office. Field trip cards will be furnished for distribution within the class, if requested, by calling the Field Trip Office. c. Upon payment of the fee, the Field Trip card will be validated by the Cashier. One part is returned to the student as a receipt. The other part is furnished to the Field Trip Office for accumulating the total deposit. D. The Field Trip cards are to be used for payment of costs listed under item III A only. Expenses such as meals, lodging, etc., must be paid as incurred by participating students. E. The Field Trip Office will cancel a field trip if enough funds are not deposited. The Field Trip Office will notify the department or instructor three (3) working days prior to departure if there are insufficient funds on deposit to cover the cost of the trip. An additional one (1) working day will be allowed for students -to pay the insufficient funds. deposit two (2) working days prior to departure, the trip will be cancelled. The Motor Pool or cormnercial corrpany and the instructor will be notified of the cancellation. If there are still not enough funds on ( ( VI I • ( (Field Trips cont.) Page: 25.4 Date: 9-30-87 REFUNDS A. When the actual cost of a field trip is less than the estimated cost, refunds will autanatically be made to the students for overcharges of $2.00 or rrore per student. Arrounts under $2.00 per student will not be refunded. B. Refund checks will be mailed to the students within thirty (30) days from the date all charges are determined to have been received and the Field Trip Office has corrputed the amount of refund due each student. c. The Field Trip Office must be notified by the instructor in writing within fifteen (15) days of the announced field trip departure date, regarding any students entitled to a full refund because of an excused absence. Instructors should contact the Field Trip Office for instructions and procedures for any refunds. D. VIII. COST GREATER THAN DEPa3ITS Departments will be responsible for paying field trip expenses incurred in excess of field trip deposits made. IX. RESPONSIBILITY A. The person to whom the vehicle is assigned is responsible for the conduct of the participants during the field trip. c. B. The responsible person should terminate the trip at any time when in his or her opinion the conduct of the participants will detract from the public image of the University. Departments may be held responsible for costs incurred to repair damaged vehicles. Further information may be obtained from Motor Pool regarding the limit on the department's financial responsibility. ( ( (Field Trips cont.) Page: 25.5 Date: 9-30-87 X. PRIVATE All'IUDBILES A. Faculty and staff members may transJ?Ort students on field trips in private autorrobiles and be reimbursed for car mileage from funds collected from the participants via the Field Trip DeJ?Osits. B. The University does not carry insura~e for the protection of the driver of a privately-owned autorrobile who transJ?Orts students. Injuries to passengers in a privately-owned vehicle are the resJ?Onsibility of the vehicle owner. ( ( Page: Date: 25.6 9-30-87 MICHIGAN STATE UNIVERSITY REQUEST FOR INTERDEPARTMENT MATERIAL OR SERVICE PHYSICAL PLANT USE ONLY Deportment Job Number Priority To the From Dept. Acc't No. Deliver to room Building Lb, . Mot. Estimated Cost E.S. L. F. Total S.R. Ne CFT MAT LAB M.H Deportment Representative Phone Give a complete description of item or service requested. ( ( N I ! "" ;; 'E 0 .,. .. .. C: . g :, -~ .. .S: .~ C: Cl. ~ () 8- l .z 'c -~ <., 'l: ~ ·.:: .. § :::: C: .. . ~ 'l: i ~ 41 .: Ill C 41 0 ..! E ... CL+- • "' 0 41 CL u 41 ..... ·;: 0 41 C "' 0 + - - c 0.. 0 0.. 0 u ·;;; C, u >,. ·;;;-= >,. 0.. -= ..... 41 0..-= 0 - -0 . . 0 41 "' ;: 41 ! g- o u -"' 0 -; l ~ : C -0 41 C ~ 6 Sign Date Deportment Head or Authorized Representative Estimate requested: 0Yes 0No ( ,,----__ ,,---._ ------., .---.._ Form No. CASHIER'S COPY - FIELD TRIP Deposit Card Name - - - - - - - - - - - - - - - - - - - - - - -~ Rrat Name Deposit Required $ ___ _ Student No. Middle Name Last Name Form No. CO-ca-7• Name __________ -=c-:-:-------;:-;-;:;-;-;:;-::-::::-:--~ LastName First Name MlddleNeme Course Instructor's Name - - - - - - - - Student No. Deposit Required $ _____ _ Destination ________________________ _ Course ________ _ Destination Departure Date ___________________ _ Student Mailing Address __________________ _ Student Signature - - - - - - - - - - - - - - - - - - - Departure Date -- - - - - - - - - - - - - - , - - - - - - - Refund checks of $2.00 or more per student will be malled within 30 days after final costs of the field trip have been determined. STUDENT'S COPY - FIELD TRIP Deposit Card MSU is an Affirmativa Action/ Equal Opportunity Institution 0-12015 MUST BE MACHINE RECEIPTED IN THIS SPACE TO BE VALID MUST BE MACHINE RECEIPTED IN THIS SPACE TO BE VALID t::P"d Cl> Cl> rt ()Q ID ID I.ON I v, l;,.J • 0-..J I 00 " Page: Date: 45:1 9-30-87 EXPENDITURE POLICIES AND GUIDELINES FOR FOOD, LODGING AND BEVERAGES I. GENERAL The University has limited resources to carry out its mission of teaching, research and service. The University is held accountable by the people of the State of Michigan for wise and effective use of its resources. It is with this understanding that the following policies and general guidelines were developed. While responsible discretion and judgement should always be used for expending University funds, particular caution should be exercised for these types of expenditures. Under unusual circumstances, exceptions to this policy may be considered in advance by the appropriate Vice President. Such exceptions also require advance approval of the Vice President for Finance and Operations. In order to carry out its academic and public service programs, the University constructed food service, lodging and conference facilities. Consequently, University programs and activities should be held in these facilities whenever possible. II. BUSINESS FUNCTIONS A. Staff participation should be limited to those persons required to conduct the business. ( ( ( (Expenditure Policies and Guidelines for Food, Lodging and Beverages continued) Page: Date: 45:2 9-30-87 B. Campus facilities shall be used unless otherwise required by business necessity which must be documented on the voucher. Tips are limited to 15 percent of the bill. C. Business functions may be held in other cities if it is more feasible for business and economic reasons. These reasons must be documented on the voucher. D. University funds may be used for luncheons to meet with University personnel if the luncheon is necessary to conduct University business. It is not general practice for persons within the same organizational unit to use University funds for luncheons. Names of guests and the purpose of the meeting must be on the voucher or supporting documents. E. In meetings with non-University faculty and staff, cost of alcoholic beverages can be reimbursed under the University policy relating to alcoholic beverages (see item VIII). ( ( ( Page: 45:3 Date: 9-30-87 (Expenditure Policies and Guidelines for Food, Lodging and Beverages continued) III. RECRUITING MEALS A. Campus facilities shall be used. B. Alcoholic beverages may be reimbursed under the University policy covering alcoholic beverages (see item VIII). ( C. Reimbursement for meals should include only the principal people involved in the decision-making process. Generally, reimbursement will not be made for entire departments or large numbers of staff. D. Meals for spouses of the principal staff responsible for the recruiting will be reimbursed when the spouse of the candidate is present. IV. RETREATS, WORKSHOPS, COMMITTEE AND FACULTY MEETINGS A. Retreats 1. Retreats may be held for academic or University business purposes with prior approval of the Dean or Vice President. 2. When the majority of participants are campus based, campus facilities shall be used. There may be circumstances for groups such as Extension personnel to meet in a more central location for convenience and economic reasons. ( ( Page: Date: 45:4 9-30-87 (Expenditure Policies and Guidelines for Food, Lodging and Beverages continued) 3. Alcoholic beverages will not be reimbursed. B. Workshops, Committee and Faculty Meetings 1. Campus facilities shall be used for these purposes. Reimbursement sha.11 generally be limited to rolls ( V. RETIREMENT AND GOING-AWAY RECEPTIONS and nonalcoholic beverages. A. The University provides an annual retirement function for all employees who qualify. In addition, a reception may be held for any employee who retires or terminates from the University providing that the employee has 15 years or more of service with the University. B. The reimbursement from University funds shall be liI'.lited to modest hors d'oeuvres and nonalcoholic beverages. VI. OTHER RECEPTIONS FOR EMPLOYEES AND SPOUSES A. Campus facilities shall be used. B. The reimbursement from University funds shall be limited to modest hors d'oeuvres and nonalcoholic beverages. C. Allowed once per fiscal year per college. D. Not more than two hours of scheduled University hours may be used for this type of function. Page: Date: 45:5 9-30-87 (Expenditure Policies and Guidelines for Food, Lodging and Beverages continued) VII. OTHER ( A. Other functions (e.g. birthday parties, going-away functions), gifts and cards are personal and nonreimbursable from University funds. VIII. ALCOHOLIC BEVERAGES A. Alcoholic beverages may be charged to conference accounts when reimbursement is made by participants or sponsors of the conference. B. Reimbursement for alcoholic beverages is limited to recruiting and business functions involving nonemployees of the University. 1. Alcoholic beverages must be purchased and served through licensed establishments. There will not be any reimbursement for bulk purchases or use of home entertainment. 2. All vouchers which include alcoholic beverages must have the signature of the appropriate Dean or Vice President. 3. All bills which include alcoholic beverages must be charged to a gift (discretionary) account maintained by the Dean or Vice President. A bill such as a restaurant check, which includes alcoholic beverages should be charged to the gift account in its entirety. Departments desiring to Page: 45:6 Date: 9-30-87 (Expenditure Policies and Guidelines for Food, Lodging and Beverages continued) charge alcoholic beverages only to gift accounts should obtain separate billings. All other bills or portions of a voucher that do not contain alcoholic beverages may be charged to the appropriate fund and account. Page: 47.1 Date: 9-30-87 MEMBERSHIP DUES I. UNIVERSITY POLICY - The University recognizes that memberships in ( professional organizations and associations may benefit faculty and staff members when carrying out their respective University responsibilities. Because of limited resources to carry out the mission of the University, funds are not available to pay all the numerous and various membership dues. In view of- the above, one of the following criteria must be met before membership dues to professional organizations or associations will be processed for payment USING A DIRECT PAYMENT VOUCHER ONLY. A. The payment of dues can be for an institutional membership and not on behalf or in the name of an individual faculty or staff member. B. Occasionally, it is necessary to pay nominal membership dues in order to obtain needed subscriptions. When subscriptions are for departmental use, the membership may be in the name of the chairperson or director of the department or scqool. Membership dues which are a substantial portion of the combined cost of membership and subscription will not be paid. ( C. The Medical Service Plan may continue to pay membership dues for MSP members as authorized by the respective college and/or department in accordance with provisions of the Plan. Page: Date: 47.2 9-30-87 (Membership Dues continued) D. Under special circumstances, subscriptions or combined membership-subscription dues may be allowed on an annually-approved basis if essential to a specific research project. This information must be documented on the voucher. The voucher requires approval of the unit administrator and the dean (not authorized designates). E. If a membership in an organization is necessary and essential to an employee in performing the duties and responsibilities of their jobs, a memo explaining the job relatedness must be attached to the voucher. The memo and voucher must be approved by the unit administrator and the dean. ( ( ( ( ( ( Page: Date: 53.1 ,9-30-87 MOVING EXPENSES I. ELIGIBILITY Faculty (at the rank of instructor and above), academic, professional, and executive management staff who are either new or reassigned and are moving from outside a radius of 35 miles to the MSU work location. Reimbursement for actual moving expenses is not an entitlement; in all cases, it is an option to be agreed between the unit administrator(s) and the prospective faculty/staff member. II. AMOUNT Up to $5,000 with the recommendation and approval of chairpersons or directors and deans. Amounts exceeding $5,000 must be approved by the Provost (or designate) or the Vice President for Finance and Operations (or designate). A college/division may establish a more restrictive moving expense policy. III. PAYMENT Reimbursement of actual moving expenses will be paid on a blue labor time card, chargeable to a general fund labor or appropriate non-general fund account. The employee's department must complete an IRS Form 4782 (see sample of form on Page 53.3), Employee Moving Expense Information, which may be obtained from the Payroll Department. This form shall be Page: Date: 53.2 9-30-87 (Moving Expenses Continued) forwarded to Payroll with the time card. Payroll will be responsible for mailing the original copy to the employee as provided by law. Actual receipts and documentation for expenses should be maintained by the department. The new employee should be processed for payroll purposes, which includes providing Payroll with a completed Form W-4 and the employee's social security number as it appears on the social security card. Because tax laws provide that moving expenses must be included in the employee's gross income as compensation for services, taxes will be withheld on all amounts paid. This includes federal withholding tax, state withholding tax, and FICA tax, the total of which approximates 32%. If the employee's moving expenses are deductible and the employee itemizes expenses on Schedule A when filing an annual tax return, the employee may receive a refund of the federal tax withheld. Since some moving expenses are not deductible or mc1.y have limitations for tax purposes, the employee should be advised to check with a tax accountant, tax attorney, or to refer to the tax laws if such information is desired. ( ( ( Page: Date: 55.1 9-30-87 PAYROLL DEPARTMENT I. DETERMINING EMPLOYMENT STATUS - EMPLOYEE VERSUS INDEPENDENT CONTRACTOR ( A. Employee 1. Every individual performing services for the University and compensated by the University is presumed to be an employee unless she/he can meet the criteria of independent contractor status (discussed in item I. ,B.). Generally, every individual who performs services that are subject to the will and control of the University, as to both what must be done and how it must be done, is an employee-.~-It does not matter that the University ~llows the employee considerable discretion and freedom of action, as long as the University has the lega l right to control both the method and the result of the services. 2. University policy requires that the following workers be compensated as employees: a. Anyone teaching a course for credit. b. Generally, anyone teaching a noncredit course of more than five sessions during one term. can be of any length of time up to and including a full day.) (A session ( c. Anyone currently employed by the University who performs additional services outside his/her regular job description (discussed in item VI. ,B. ,2.). d. Anyone currently enrolled as a University student. 3. The status of any worker not falling into one of the above categories must be evaluated based on the Internal Revenue Service common law rules for distinguishing between employees and independent contractors. B. Independent Contractors 1. The general rule of thumb is that an individual is an independent contractor if the University has the legal right to control or direct dnly the result of the work and not the means and metho s of accomplishing the result. Generally, independent contractors hold themselves out in their own names as self-employed and make their services available to the public. 2. Examples of individuals who might meet the criteria for independent contractor status include: a. Guest performers or artists who otherwise are not affiliated with the University. ( ( Page: 55.2 Date: 9-30-87 (Payroll Department Continued) b. Guest speakers or guest lecturers brought to the University for very short durations because of their expertise. 3. See item V. ,B. (page 55.15) for instructions for processing , independent contractors. II. UNIVERSITY PAYROLLS A. Pay and Pay Dates 1. Academic and salaried nonacademic employees - Employees under these classifications are paid on a monthly payroll ending the last day of the month. Paychecks are distributed on the last working day of the month. 2. Graduate Assistants - Graduate assistants are paid on a monthly payroll ending on the 15th of the month. Paychecks are distributed on the 15th of the month or on the last working day before the 15th. 3. Hourly employees - Hourly employees, which include clerical-technical, are paid on a biweekly payroll. Paychecks are distributed on the Friday following the pay period ending Sunday night. 4. Student employees - Student employees are paid in the same manner as hourly employees except that the student payroll date falls on alternate weeks. B. Information Required for Payroll Processing 1. Form W-4, Employee's Withholding Allowance Certificate a. Form W-4, Employee's withholding Allowance Certificate, must be filed by every employee (see sample, page 55.20). Federal law requires that the employee complete the form in its entirety. eoployee does not complete a Form W-4, withholdings will be taken from the employee's earnings at the highest withholding rate (i.e., single marital status, zero exemptions). If an b. The employee must file a new Form W-4 each time the employee wishes to increase or decrease the number of exemptions claimed or to have additional amounts withheld per pay period. c. Forms W-4, as well as information for determining withholding allowances, are available in the Payroll Department, Office of the Controller, 350 Administration Building. ( ( ( (Payroll Department Continued) Page: 55.3 Date: 9-30~87 d. Employees wishing to file a Form CW-4, Withholding Certificate for City Income Tax, may do so in the Payroll Department (see sample, page 55.21). 2 . Verification of Social Security Card Information All University employees must present a valid social security card at the time they are processed for employment in order to be paid. The University is required by federal law to pay its employees under the exact name and number that appear on the social security card. Because of this requirement, the Payroll Department cannot release an employee's paycheck until the information on the social security card has been verified. A military draft card is the only document that will be accepted in place of a social security card. 3 . Nonresident Alien Employees a. Nonresident alien employees who are not students should present their visas in the Payroll Department to determine if they may be eligible for exemption from federal, state and/or FICA withholding taxes. b. Changes in residency status should be reported to the employing department and processed through the appropriate personnel office. The employee also should bring the appropriate documentation of change in residency status to the Payroll Department to change his/her tax withholding status. C. Optional Forms 1 . Direct Deposit Authorization Employees may have their paychecks directly deposited into personal checking or savings accounts by completing the Direct Deposit Authorization card (see sample, page 55.22). Employees who desire this service should also contact the financial institution and advise them that their paychecks are to be direct deposited. 2 . U. S. Savings Bonds Payroll deductions for United States Savings Bonds are available at the request of the employee. Authorized payroll deduction cards must be signed by the employee and filed in the Payroll Department. 3. Earned Income Credit Advance Payment Certificate (Payroll Department Continued) Page: Date: 55.4 9-30-_87 Employees eligible for the earned income credit (EIC) may either receive it on their tax returns or in advance payments during the year. Those who want to receive the credit in advance must file Form W-5 (Earned Income Credit Advance Payment Certificate) with the Payroll Department, 350 Administration Building. To qualify for the credit, employees must expect their income (including spouse's income, if married) to be less than $18,566 for 1988 and meet other eligibility requirements. Eligible employees who do not file Form W-5 will still get the full benefit of the EIC on their annual tax return. Eligible employees must file a new Form W-5 each year. 4. Employees wishing to participate in employee benefit programs such as retirement, health, accident and life insurance, etc., should contact the Staff Benefits Office. D. Appointment and Hiring 1. Academic Appointments All academic appointments are processed through the Office of Planning and Budgets. Each academic er.1ployee is required to complete Form W-4 and to present a valid social security card for verification of name and social If Form W-4 and social security number security number. verification are not submitted by the department, the employee must complete this information in the Payroll Department, 350 Administration Building. Departments are requested to notify new staff members of this requirement. 2. Salaried Nonacademic and Hourly Employees All employees under these classifications are processed by the Personnel Department, where the required forms are completed and forwarded to the Payroll Department. 3 . Graduate Assistant Appointments All graduate assistants must be registered in order to hold an assistantship and be paid on the graduate assistant payroll. number verification are not submitted by the department, the employee must complete this information in the Payroll Department, 350 Administration Building. Departments are requested to notify new graduate assistants of this requirement. If Form W-4 and social security ( ( ( ( (Payroll Department Continued) 4. Student Employees Page: Date: 55.5 9-30-87 a. All University students compensated for services rendered must be paid through the Payroll Department. Direct Payment Vouchers or other payment mechanisms should not be used. b. Departments are responsible for obtaining the completed Form W-4 and for verifying social security information and must submit the information to the Student Employment Office, together with the Student Employment Application, Form Z27D0010 (Stores stock order #140-2578). For further details on hiring student employees, see the Student Employment Manual prepared by the Student Employment Office . c. University student employees retain their student status between terms until the degree sought is obtained. E. Forms Required for Payroll Processing 1. Academic, Graduate Assistants, Salaried Nonacademic, and Clerical-Technical a. Payrolls are prepared automatically from appointment and personnel forms/reports. b. Departments are responsible for reconciling all employees' time. Any factors that would alter an employee's compensation, such as termination, leave without pay or days lost without pay, should be reported to the appropriate personnel office immediately. 2. Hourly Employees (excluding Clerical-Technical) a. Form Required - "Daily Time Record" card (see sample, page 55.23). b. Preparation of Form 1) The first time card submitted for an employee must have the complete name, social security number, account number, department, and rate. The name must be the same as it appears on the employee's social security card. After an initial time card has been submitted for an employee, a prepunched time card will be returned to the department for submission with ( ( ( ( (Payroll Department Continued) Page: Date: 55.6 9-30-87 the next payroll. The department should review the prepunched information and make any necessary corrections on the time card. DO NOT write any information above the heavy black line. 2) Record the detail hours or days worked. Fractional hours are to be rounded to the nearest tenth of an hour. For example, 3 hours and 24 minutes should be recorded as 3.4 hours. 3) Add hours or days for the pay period and enter the total under "Tota l for Period" and "Time." 4) Check the "Unit of Time," insert the rate and compute the gross earnings in the gross amount block (omit dollar signs). Complete the "From" and "To" dates in the pay period block. 5) The time card must have the handwritten signature of the unit administrator. 3. Student Employees a. Form Required - "Student Payroll Card" (see sample, page 55.24). b. Preparation of Form 1) Preparation of student employee time cards is the same as for hourly employee time cards except that the student number is used rather than the social secur i ty number. 2) University student employees must be enrolled and attending classes to be eligible for payment. To insure that students are enrolled, the time cards are compared to the Registrar's current enrollment records. For this reason, the name and student number on the time card must be exactly the same as it appears on the Registrar's record. Students who have gained employment by assuring the department they will enroll must enroll promptly or be terminated. ( ( ( ( Page: Date: 55.7 9-30-87 (Payroll Department Continued) F. Rate of Pay 1. Academic a. Rate of pay is determined from the appointment form. b. Rate changes are made on the basis of new appointment forms or "Change of Status Recommendation" forms and must be approved by the Provost and Board of Trustees. c. The forms are available in the Provost's Office. 2. Graduate Assistant a. Rate of pay is determined from the appointment form. b. Rate changes are made on the basis of an amended or new appointment form. c. The forms are available in the Provost's Office. 3. Salaried Nonacademic Employees - Rate of pay is approved and provided to the Payroll Department by Personnel. 4. Hourly Employees - Rate changes for hourly employees are approved by the Personnel Department and forwarded to the Payroll Department. Time cards should not reflect a new rate until it has been approved and the Payroll Department has a record of the change. 5. Student Employees - Job classification and grade level must be reported to the Student Employment Office using the "Student Employee Change of Status" form (see "Student Employment Manual" prepared by the Student Employment Office). G. Deadline for Submitting Payroll Information and Changes 1. Time Cards a. Biweekly pay periods for hourly and student employees end on Sunday at midnight. Payroll time cards for hourly employees, excluding clerical-technical, must be delivered to the Payroll Department by 10:00 a.m. the following Monday morning. When a short week occurs, specific instructions will be issued by the Payroll Department regarding the deadline. ( ( ( ( (Payroll Department Continued) Page: Date: 55.8 9-30 ... 8 7 b. Time cards received after 10:00 a.CT. on Monday ·will be held and processed with the next biweekly payroll. 2. Employment data information for salaried employees must be received in the Payroll Department on or before the 15th of the month in which the employee is to be paid in order for the Payroll Department to process the employee's check with the current payroll. 3. Employment data information for graduate assistants must be received in the Payroll Department on or before the 1st of the month in which the employee is to be paid in order for the Payroll Department to process the employee's check with the current payroll. 4. Except for salary direct deposit authorizations, all changes in exemptions, payroll deductions and direct deposit authorizations must be processed according to the above dates to be effective with the current payroll. Salary direct deposit authorizations must be processed by the first working day of the month preceding the pay date to be effective with the current payroll. H. Distribution of Checks 1. Direct Deposit a. Salaried employees may have their checks directly deposited into their personal checking or savings account by completing a "Direct Deposit Authorization" form. This form may be completed at the Payroll Department, or at the MSU Credit Union for direct deposits at that institution. (See sample, Page 55. 22.) b. Checks for these employees will be deposited in their bank accounts on the morning of payday. The employee will receive a "Direct Deposit Notification" showing gross pay, itemized deductions and net pay. c. Direct deposit may be discontinued if the Payroll Department has received the notice for salaried employees by the first day of the month preceding the paydate, and for hourly employees by the Monday preceding the paydate. ( ( ( ( ( (Payroll Department Continued) Page: 55.9 Date: 9-30-87 d. Graduate Assistants and employees paid on the biweekly labor payroll also may have their paychecks directly deposited into their personal checking or savings account by completing a "Direct Deposit Authorization" form. However, the financial institutions available for direct deposits are limited to eight (8) local banks. A listing of these banks is available in the Payroll Department. e. Direct deposit service currently is not available to employees paid on the biweekly student payroll. 2. Distribution to Departments a. Checks are picked up by the Campus Mail Service for delivery to the departments. b. Checks or Direct Deposit Notifications should be handed directly to the payee or placed in sealed envelopes for delivery by a designated employee. c. Payroll checks which must be cancelled and rewritten due to any of the following reasons should be delivered immediately to the Payroll Department, 350 Administration Building: 1) Late termination. 2) Leave of absence without pay. 3) Too many hours on Student or Hourly. 4) Students paid on incorrect student numbers. d. Payroll checks not delivered to employees within ten days should be returned to the Payroll Department with a memo indicating the reason why the employee did not receive the check. The Payroll Department will attempt to locate the empl.oyee and deliver the check. I. Check not Distributed with Regular Payroll 1. Checks will be held in the Payroll Department and not distributed on payday for the following reasons: a. The Payroll Department has not received verification of the employee's social security number. b. The various personnel offices may have employees' checks held for the following: (Payroll Department Continued) Page: Date: 55.10 9-30-87 1) The employee is not authorized to be paid on the submitted account number. 2) INS Form I-9 information has not been completed. 3) A student employee is not currently enrolled. Note that student employees who were enrolled during Spring term and expect to be enrolled during Fall term may work Summer term without being enrolled. 2. When a paycheck is held, a "hold notice" is sent in lieu of the paycheck. The hold notice explains why the check was held and how the employee may obtain its release. J. Checks Not Prepared with Regular Payroll 1. A check may not be prepared due to the following reasons: a. Employment data for nonhourly employees was received in the Payroll Department after the processing deadline. b. Hourly or student employee time cards were received after the processing deadline. c. Student employee was not registered for the current term or student authorization was not properly completed. d. Graduate assistant was not registered for the current term. 2. Once the required information and processing are completed, a payroll cash advance (for students and graduate assistants) or petty cash check may be obtained per the guidelines below. K. Payroll Petty Cash Checks and Cash Advances 1. Petty Cash Checks - Employees failing to receive a check on the expected paydate may obtain a petty cash check for wages earned. An appointment form, approved personnel information, or authorized time card must be on file in the Payroll Department before a petty cash check can be issued. Because of required processing time, a petty cash check generally is available to an employee 24 hours after the request is received by the Payroll Department. Due to payroll processing deadlines, the following schedule applies to issuance of petty cash checks: ( ( ( ( ( (Payroll Department Continued) Page: 55.11 Date: 9-30~87 a. Salaried employees may request a petty cash check until the 15th of the month following the month in which they did not receive an expected check. b. Graduate assistants may request a petty cash check until the last day of the month in which they did not receive an expected check. c. Hourly, clerical-technical, and student employees may request a petty cash check on payday through Thursday of the following week. 2. Payroll Cash Advance - Graduate assistants and students failing to receive a check on the expected pay date may obtain a payroll cash advance for a portion of the net amount earned. A request for a payroll cash advance should be made in person at the Payroll Department on or after the regular pay date. An appointment form, approved personnel information, or authorized time card must be on file in the Payroll Department before a payroll cash advance can be issued. Each employee must show identification. The deadlines for issuing payroll cash advances are the same as those for petty cash checks. If all requirements are met, the Payroll Department will issue a cash advance card, which must be taken to the Cashier's Office, Room 110, Administration Building, and cashed on the date of issue only. L. Final Payments to Terminated Employees 1. Academic Employees a. When an employee terminates employment prior to the ending date of his/her appointment, the employing department must process the required documents for termination through the Office of Planning and Budgets. The Payroll Department is notified of terminations for academic employees by the Office of Planning and Budgets. To avoid an overpayment to the employee, the termination notification should be submitted in sufficient time to allow processing by the Office of Planning and Budgets and the Payroll Department. (Payroll Department Continued) Page: Date: 55.12 9-30-.87 b. Sailing Permits - All nonresident alien employees leaving the United States, except for students on an "F" visa, must present a certificate of compliance ("sailing permit") at the place of departure from the United States. A letter from the chairperson of the employing department should be sent to the Payroll Department, stating that the employee is leaving the country, the date through which the employee is to be paid, and when the final paycheck is to be released. The Payroll Department will then prepare the final paycheck and sailing permit for pick-up by the employee or a representative from the employing department. 2. Nonacademic Employees Information to be submitted with the a. The employing department must submit a Personnel Action Notice (PAN) form to the Nonacademic Personnel Office when an employee terminates employment. PAN form includes the last day worked, number of hours worked on the last day, effective date of termination, vacation balance, and any absences not reported on the most recent attendance report. The Payroll Department is notified of terminations by the Nonacademic Personnel Office. To avoid overpayment to the terminating employee, it is important that the PAN form be submitted in sufficient time to allow processing by the Nonacademic Personnel Office and the Payroll Department. b. Nonacademic Personnel should be notified by the employing department when a terminating employee requests a final paycheck prior to the scheduled pay date. Nonacademic Personnel will then notify the Payroll Department that a final paycheck has been requested. Any final paychecks released prior to the scheduled pay date should be picked up in the Payroll Department by a representative from the terminated employee's department. M. Record of Hours Worked Requirement 1. The Fair Labor Standards Act requires that a record of hours worked be maintained for all nonexempt employees. Faculty, specialists, and executive managers are exempt under the law. Professional and supervisory staff 2t the 05 level or above are treated as exempt employees. All other employees are nonexempt. 2. Payroll time cards are appropriate records for student and hourly employees . ( ( Page: 55.13 Date: 9-30-87 (Payroll Department Continued) III. FICA WITHHOLDING INFORMATION A. Graduate assistantship stipends are not subject to FICA taxes. B. Student employees generally are not subject to FICA taxes. However, student employees who work during summer term and are not enrolled will have FICA taxes withheld from their wages. IV. CHANGES IN NAME AND/OR ADDRESS AND CORRECTION OF SOCIAL SECURITY NUMBER ERRORS A. Change of Name 1 . Nonacademic Employees a. The name of an employee on the payroll records must be the same as the name indicated on t he employee's social security card. b. Name changes must be processed through Personnel by the employee's department on the Personnel Action Notice (PAN). Name changes cannot be made on payroll records (including changes of name on prepunched time cards) until a copy of the changed social security card has been submitted to Personnel to change the employee's records. 2. Academic - Academic personnel must communicate changes in name by an Address Information Notice (AIN) to the Academic Personnel Records Office. The AIN should be accompanied by three copies of the employee's social security card. The Academic Personnel Records Office will forward one copy of the social security card to the Payroll Department and one copy to the Office of Planning and Budgets to change the employee's name in these areas. 3. Students - Students must make name changes at the Registrar's Office, 150 Administration Building. addition, a copy of the social security card with the corrected name should be sent to the Payroll Department. In 4. Graduate Assistants - Graduate assistants must make name changes at the Registrar's Office, 150 Administration Building. In addition, a copy of the social security card with the corrected name should be sent to the Payroll Department. ( ( ( ( Page: Date: 55.14 9-30-87 (Payroll Department Continued) 5. Changing Forms W-4 - Every employee who changes his/her name also must submit a new Form W-4, Employee's Withholding Allowance Certificate (see sample, page 55.20) and, if applicable, a Form CW-4, City Income Tax Withholding Certificate (see sample, page 55.21) to the Payroll Department. B. Change of Payroll Address 1. Current Employees - Faculty and staff addresses are input into the payroll system from the faculty/staff address system. The change should be made through the employee's department. The Personnel Action Notice (PAN) fo~ nonacademic employees or the Address Information Notice (AIN) for academic employees should be used. Graduate assistant and student address changes should be made at the Registrar's Office, as they are input into the payroll system from the Registrar's address system. 2. Terminated Employees - Employees who have terminated and wish to have their Form W-2 sent to an address other than the one on file at the time of termination should contact the Payroll Department to change the address to which the Form W-2 is to be sent. C. Correcting Errors in Social Security Number - If an error in a social security number is found on any earnings information from the University, the employee should take or send a copy of the social security card to the appropriate personnel office to have the number corrected. The employee also should send a copy to the Payroll Department so correction of the employee's earnings records can be made with the Social Security Administration. V. INDEPENDENT CONTRACTORS A. Determining Independent Contractor Status 1. See item I. ,B. for the general definition and examples of independent contractors. 2. When the status of a worker cannot be determined from the guidelines in items I. ,A. and I. ,B., questions on determining whether the worker is an employee or independent contractor should be addressed to Accounts Payable, 353-2011. ( ( ( ( ( (Payroll Department Continued) B. Procedures for Payments to Independent Contractors Page: Date: 55.15 9-30.:-87 1. Payment to an independent contractor must be processed through Accounts Payable, Room 360, Administration Building, on a direct payment voucher. 2. The independent contractor's home address and social security number must be shown on the direct payment voucher. The Internal Revenue Service requires that the University report these payments at the end of each calendar year on Form 1099-MISC, Miscellaneous Income. 3. Supporting documentation must be provided with the direct payment voucher. Documentation should include a full description of the services rendered, including the dates the services were provided. Attachments to the direct payment voucher should include the contractor's invoice , original receipts and tickets for travel expenses reimbursed, and a copy of the written contract. Any portion of the payment to an independent contractor that is designated as reimbursement for travel expenses, must be itemized separately on the direct payment voucher. Reimbursement for itemized, documented travel expenses is not included in the amount reported as miscellaneous income on Internal Revenue Service Form 1099-MISC. 4. Nonresident Alien Independent Contractors a. Unless exempted by a current tax treaty, payments for services rendered by nonresident alien independent contractors are subject to withholding for federal and state income taxes. b. In order to claim exemption from tax withholding because of a current tax treaty, the contractor must complete Internal Revenue Service Form 8233, Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual. The contractor must complete this form in Accounts Payable, 360 Administration Building. The exemption from withholding must be approved by the Internal Revenue Service before payment is made. It takes approximately 15 days for the IRS to respond to a request to exempt payment from withholding. c. If the payment is determined to be exempt from withholding, a check will be issued for the gross amount of the direct payment voucher. (Payroll Department Continued) Page: Date: 55.16 9-30-87 d. If the payment is determined not to be exempt from withholding, a check will be issued for the net amount of the direct payment voucher after deducting taxes. The tax amount will be charged to the departmental account using a journal voucher entry prepared by Accounts Payable. e. No later than March 15 each year, the Universitv will issue an IRS Form 1042S, Foreign Person's b.s. Source Income Subject to Withholding, to the taxpayer reflecting all payments made and amounts withheld for the previous calendar year . 5. Payments to Independent Contractors on General Fund Salary Accounts a. When using General Fund accounts for payments to independent contractors, including honoraria, the costs should be charged to either a salary account or a supplies and services account, using object classification code 072. General Fund labor accounts may not be used for payments to independent contractors. b. All direct payment vouchers charging General Fund salary accounts must be sent to the Office of Planning and Budgets, Room 321, Administration Building, for approval. VI. COMPENSATION FOR NONREGULAR ASSIGNMENTS OR DUTIES A. Overtime 1. Definition a. The Fair Labor Standards Act stipulates that nonexempt employees must be appropriately compensated for overtime hours worked. Overtime is earned when an employee works in excess of 40 hours in a standard work week. The standard work week is a 168-hour period which, for the University, generally starts at 12 midnight on Sunday and ends at 12 midnight on the following Sunday. However, some units of the University have established different work weeks. Such changes must be approved by the Controller. b. Hours worked in excess of a standard work day or week should be approved in advance by completing Form CO-pa-25a, "Approval for Overtime Hours for Non-Exempt Employees" (Stores stock order #140-2604 , see sample, page 55.25). ( ( ( ( Page: Date: 9-30-87 55 .17 (Payroll Department Continued) 2. Compensation a. Time Off 1) As a general policy, overtime hours are to be compensated by time off, if the equivalent time off can be mutually agreed upon and the time off can be scheduled within the pay period. 2) If time off cannot be given on or before the last day of the current pay period, the employee must be paid for the overtime hours. b. Payment for Overtime Hours 1) For hourly employees, excluding clerical te chnical, overtime must be submitted on a pink payroll overtime time card. Clerical-technical overtime must be submitted on a green payroll overtime time card. Salary overtime must be submitted on a blue payroll overtime time card (see sample, page 55.26). The payroll overtime time cards provide for increasing overtime hours earned by 507. to reflect a time and one-half payment. Hours reported on the payroll overtime time cards must be rounded off to the nearest tenth of an hour. 2) All pink overtime time cards should follow the same schedule of submission detailed under item II. ,G., "Deadline for Submitting Payroll Information and Changes." 3) All blue and green payroll overtime time cards should be submitted to the Payroll Department on Wednesday of student pay week. 4) A separate payroll overtime time card must be prepared to pay overtime hours applica.ble to the shift differential. payroll of Physical Plant or Housing and Food Services hourly employees.) (This does not apply to 5) Overtime time cards may be obtained from the Payroll Department. c. Rate of Payment 1) Hourly employees should be paid their regular rate. ( ( ( ( ( ( (Payroll Department Continued) Page: Date: 55.18 9-30-87 2) The hourly rate for a person on an annual salary is determined by dividing the annual salary by 2,080 (40 hours for 52 weeks). 3) Approval of the Personnel Department is necessary when overtime is submitted for A-P employees classified as AP-OS or above. B. Compensation for Services Apart from Regular Work Assignments 1. Academic Employees - Every department paying individuals appointed in the academic personnel system for part-time work involving teaching or service activities in excess of load needs prior approval of the dean of the college. Deans should forward labor time cards related to overload pay to the Office of Planning and Budgets for processing. For details, consult the Office of Planning and Budgets at 355-9271. This type of pay is subject to the Board policy found under Overload Pay in the Faculty Handbook. 2. Nonacademic Employees a. Michigan State University employees performing services apart from their regular work assignments are considered University employees in such capacity. They may not be processed as independent contractors. b. The employee is at liberty to accept or reject without prejudice any work offered in excess of regular work assignments. c. To pay the employee for these services, an overtime time card must be submitted to Nonacademic Personnel for approval. d. If approved by Nonacademic Personnel, services apart from regular work assignments may be compensated at a rate different from the employee's regular rate. However, nonexempt employees must be appropriately compensated when total hours worked are in excess of 40 hours in a standard work week. C. Military Pay 1. Regular, full-time employees who are ordered to temporary active duty for military training will be (Payroll Department Continued) Page: 55.19 Date: 9-30-87 allowed fifteen (15) days leave of absence. The University will pay the difference between regular pay and military pay when the military pay is less. The military pay, which will be supplemented by the University, is the base pay. The employee must present a copy of the pay voucher from the government to document the amount of military pay received. 2. Military pay will be deducted from regular pay as follows: a. Faculty - a copy of the military pay voucher should be forwarded to the Payroll Department. Payroll will determine the amount to be deducted. The military pay will be deducted from the next paycheck. b. A-P and C-T - a copy of the military pay voucher should be submitted to the Personnel Department. The Personnel Department will determine the amount to be deducted and report to the Payroll Department. The military pay will be deducted from the next paycheck. c. Hourly - a copy of the military pay voucher should be forwarded to the Payroll Department. Each department is responsible for deducting military pay on the payroll time cards. The military pay should be shown separately and deducted from the gross amount. The balance will be paid to the employee and will be subject to withholdings for federal, state, and FICA taxes. D. Jury Duty 1. The University will pay the difference between the jury duty compensation and the regular University compensation. 2. The procedures for processing documented evidence of jury duty compensation are the same as for military pay. E. Court Witness Fees - Court witness fees paid to University employees must be deposited into account number 11-0739. A duplicate receipt is to be sent by the employing department to the Payroll Department, where the duplicate receipt will be placed in the employee's file. ( ( ( ( Page: Date: 55.20 9-30-87 See IRS 1S~7. W-4 l ~struc li<:"1~ 1198 7 / FORM W--4 (MSU) I Employee's Withholding Allowance Certificate ... For Privacy Act and Paperwork Reduction Act Notice, see lnatructiona. fl. Please type or print your name: last. Flrat. Middle 2L Your aocial security number 2b. If Stlidsnt. your Student Number I I I ~...,..,.~-~-~~-~-~-~-~~~~-~-~-~-~-11-=--''-::--=-""=l"'.:~1-_~1_...,..1_~·-~1-~1-~1-~1-~--~1 __ ~1-~1 ____ 1~ _ _.1__ __ ~ · - - - I I I I I I I I I I I I I I Your hol'lle addreea I I City. State, and Zip Code I I I I I I I I I I I I I I I I Sa. PAYROLL TYPE 3b. Marital Statue I I I I I I I I I I I I I I I I I I I I I I I I I I I D SALARY O GRAD. ASST. D CT/LABOR 0 STUDENT 0 SUMMER SCHOOL D Married D Married, but vilthhold at higher •Ingle rate O Single MOTE: If married, but legally uparoted, or ,pouse is { NOTE: See Instructions to; n~;;is~di:~ nlier., r·~'~'~~E·°""~~~~~~~~~\~bo~'~· __ S_T_A_T_E __ - 4. Total number of allowances you are claiming (from the Federal Worksheet on page 3) STATE exemptiona,when completing llnea 4, 6, and 6. 6. Addttlonal a111ount 1 If any, you want deducted from each pay (aee Step ,4 on p.e.ge 2 of Federal lnatructlona) s. I clalm exemption from withholding bocauH (aee Step 2 of F .. .i.ral lnatructiona and c,,eck boxes balow tlo&t apply): • D Last year I did not owe any Federal Income tax and hac.i a right to a full refund oi Ai..L incom'1! tax wit" l.eh::lr AND b D Thia year I do not expect to owe any Federal Income tax and expect to have a right to a full refund of 1.--:Y"'E:-~:-:.R::--f'""'"'":L.LL. Aft Income tax withheld. If both a and b apply, enter the year effective and 'EXEMPT" for Federal. c If you entered •exEMPT• on llne 6b, are you a fuH-tlme student? NOTE: See lnetrucllona for claiming STATE 'EXEMPT" status. D Yea D No 7. Under the penaltlee of perjury, I certify that I am entitled to the number of withholding allowances clalmed on this certificate or, If claiming exemption from withholding, that I am entitled to claim the exempt atatus. EMPLOYEE'S SIGNATURE _____________________ DATE ________ _ 1088-77C MSU IS AN AFFIRMATIVE ACTION/EQUAL OPPORTUNITY EMPLOYER MICHIGAN STATE UNIVEllSITY PAYROLL DEP A!lTME!H 350 ADMINISTRATION Bl.DO. EAST LANSING , Ml. 48'lr.4-1046 FED. TAX ID .. 38-ll ~0 ~384W S, .,, T;; TAX 10# SSQ-0350502 $ s '7@3 ,.7.;7,/( ;J '.'.*J,.-;;,~ 0 ~~ , ·~'//>///:/;~%1 ( { \ Page: Date: 55.21 9-30-87 CW-4 EMPLOYEE'S WITHHOLDING CERTIFICATE FOR CITY INCOME TAX I 1. Please type or print your name: Last, First, Middle 2. Taxing City PAYROLL USE ON LY Your Home Address 3. Social Security Number Tax Code Student Number City, State and Zip Code 5. TOTAL EXEMPTIONS YOU WISH TO CLAIM 4. PAYROLL TYPE Salary D D D Other Grad Asst D Biweekly D Student 6. Under the penalties of perjury, I certify that I am entitled to the number of withholding exemptions claimed on this certificate . 7. Employee's Signature Date MSU is an Afffirmative Action / Equal Opportunity Employer 0 -14511 MICHIGAN STATE UNIVERSITY PAYROLL DEPARTMENT 350 Administration Building East Lansing, Ml 48824-1046 Fed. Tax ID# 38-6005984W State Tax ID# S69-0350502 I I J ( ( ( Page: Date: 55.22 9-30-87 PLEASE PRINT DIRECT DEPOSIT AUTHORIZATION CO-PA-42 Soc. Sec. No. ~I ~l~I ~1-~l~l~I _-~I ~l~l~~I Check One: 0 Salary Stu No IO IO I I -I I I -I I Name I I I I l~l~l~I ~' ~I ~' ~' ~'-~I~'~'~'~'~ Is this a change in Financial Institution? 0 Bi-weekly D Graduate Assistant I authorize Michigan State University to deposit the net amount of my regular payroll check to my account in: I J M.1. Last 0 Summer School I I I I I I I Account Number Including Dashes 0 Yes 0No I I I 0 Checking 0 Savings Name of Financial Institution City Attach a Deposit Ticket to this Direct Deposit Authorization x ~ - -~ - - - - - - - - - - - - - - - - - - - - - -- - - - - - Emplovee Signature Date MSU is an Affirmative Act1on! Equal Opportunity Institution Q.15147 Michigan State Uniyersity Printing I wish to discontinue deposit of my payro ll check in: - - - :7 " " - - : -= - · - - - - , - , , - - . , - - , - - - - - - - - - - - - - - - - - - - Name o f Financial Institution 0 Checking 0 Savings I I A cco unt Number In cl uding Dashes X - - - - - -- - - - - - - - - - - - - - - - - - - - - - - -- - - - Employee Signature Date ( ( ( Page : Date : 55 . 23 9-30-87 1--·'~-~_=_-:=_-:=_-=._-=._-N.-~-M_-_E~_-_--_-_-_-_-__ -_-:==:11o=E:=P.+L--1o_E_N_T·1-F!___C_AT_1_o_N_N_o __ ---+J-s-.s~.[-A-cc·r-.-oRJOBNUMJoE-Pr:-~~:d Tl,',\d-_--R-A-Td-A-M_o_u_N_T __ • .I . IDENTlfiCATION NUMBER ___ _I_ __ --,~~~~:UNT NO=i_ LEAV:NK c-.,JT,_c , .cL~ss Tsrnc; I i•UMarn I DIV. MC.J i , P-H-Y~s, .. cA_L_"li P~ANT ONLY - - -•=s--=••N~4:tTMENf NAl.\c ··- - - - - -~ HOURS TENTHS DAYS .MQJiPAY __ 1 __ t - - -+ - - - - i TUESDAY I WEDNESDAY THURSDAY FRIDAY '.,ATURD AY SUNOAY _l___+--+------< l ! ---· ___ _ MO ,~DAY I!ifiQ.~_.__ ___ _I__ Y,.,_J_Q.NESC~Y )"HURSDAY --+ nttJ! ___ ~ - - RATE FRI DAY SATURDAY t 8 N 0 T w R ! A B ~ T ~ ~S DA!LY TIME RECORD PAY PERIOD - -- f~R~OccM-,---l9 - - ---=To=-- - - 19 - - !---------------------------- APPROVED FOR PAYMENT DEPT. HEAD (orig i!:~ "Signatur!~-== ======== - "== - · -~ · 1 0 U R ,c V, 1 / 1~ M51.. ~9 " UMT O HOURS O ,'V\CNYH [ OF O DI\):, 0 tV • ' H T:f