106 PAYROLL RECORDS


106.1 Use of UltiPro Required:

All Archdiocesan locations must use UltiPro for payroll processing. All new employees must be added to the Ulti-Pro system before issuance of payroll may occur.

106.2 Payroll Records:

Complete payroll records shall be maintained confidentially by the parish or school for all employees.

Procedure:

A) A detailed payroll register shall be maintained through UltiPro and shall be the source document for posting payroll into the general ledger.

B) Every payroll processed shall be recorded as an individual journal entry.

C) State and Federal quarterly withholding tax returns and year-end Employee Earnings Statements (W-2s) shall be filed accurately and on-time through UltiPro.

D) Timely deposits of withheld taxes shall be made through UltiPro.

E) Current signed payroll tax withholding authorizations (W-4s) and applicable state withholding forms, which show the number of claimed exemptions for employees who claim to be exempt from taxes, should be obtained yearly and maintained in the employee file. Current W-4s and state withholding forms for other employees should also be maintained, however, they are not required to be obtained annually.

F) For all changes in compensation and benefits, including new hires, terminations, or wage rate or benefits changes for current employees, a personnel action form must be completed and maintained in the employee’s personnel file.

G) If employees are paid on an hourly basis, time sheets indicating the dates and hours worked, and signed by the employee and approved by the pastor or supervisor should be maintained to support the wages. Salaried employees should also complete and sign timesheets for each pay period indicating any holiday, sick or vacation time used.

H) Direct deposit is recommended as a safer and more cost effective payroll method. Payments to employees who choose to receive checks shall be processed through UltiPro, and such payments may be made through a separate payroll account.

106.3 Employee vs. Non-Employee:

School/parish personnel shall be treated as employees unless approval is received from Archdiocesan legal counsel to treat the personnel as non-employees (independent contractors or volunteers).

Procedure:

A) All persons determined to be employees must be included in the payroll records, have taxes withheld from their pay according to the tax tables, and receive W-2 withholding tax statements at calendar year-end.

B) If an independent contractor does work for a school or parish, he/she/it must issue an invoice for the work done. IRS regulations require reporting of all payments of $600 or more in a calendar year to independent contractors on IRS Form 1099s.