Policies and Procedures
Policy 1109 – Non-Statutory Deductions
January 9, 2004
October 1, 2014
October 1, 2014
Director of Payroll Services
Payroll Services will make approved non-statutory (not required by law) payroll deductions and salary reductions only when such requests are submitted through the ConnectCarolina HR/Payroll benefits module. The Human Resources Benefits Program will be responsible for verification of eligibility and for processing through the benefits module. Garnishments and child support will also be made from employee’s wages and handled through Payroll Services.
An employee wishing to cancel a non-statutory deduction must contact Benefits Program Administration in Human Resources for clarification as each agency requires a different method for cancellation.
Non-Statutory Deductions for University Departments or Units
University departments may use payroll deduction to pay for University-provided products or services that are approved for payroll deduction as described in this policy. Departments must provide information on price discounts and other program features to facilitate the review of any tax implications.
Departments wishing to offer this payment method will be responsible for information submission and retention, as well as administration of the deduction program. In order to qualify for payroll deduction under this program, the following criteria must be met:
The payment request must be for a University service or product that all faculty and staff are eligible to purchase.
The total cost of the product or service deduction must be a minimum of $75 and the duration of the deduction at least three months.
A minimum of 50 employees must elect the payroll deduction option.
A department meeting these criteria must obtain program approval through appropriate departments, schools and division channels, and obtain a legal review from the Office of University Counsel. Once approvals have been received, contact the Director of Payroll Services to establish the payroll deduction program.
Payroll Services will create a deduction code that is associated with a ConnectCarolina fund source that will be used to record the deducted amounts. The department should provide the following information to Payroll Services (e.g., Excel spreadsheet) provided on a mutually established timeline:
- Employee name and social security number
- Total Deduction Amount and Amount of Deduction per Employee, per Pay Period
- Beginning and Ending Dates of Deduction
- Employees' Pay Cycles (monthly or biweekly)
- Deduction Code (provided by Payroll Services)
Pre-Tax Parking Deductions
The University offers all permanent full-time employees the option to purchase parking permits on a pre-tax basis, through submission of a completed pre-tax form issued annually by Parking Services and distributed by the departmental parking coordinator for signatures and updates. Parking deductions are submitted and maintained by the UNC Department of Public Safety Parking Services. Deductions are calculated from a scale based on annual salary.
Reason for Policy
The University presents specific guidelines for activating non-statutory deductions within this policy in its efforts to diligently track records of financial withholding and disallowing payroll deductions unless authorized as an approved deduction.
Frequently Asked Questions
The following are among common types of non-statutory deductions:
- Accidental Death and Dismemberment Insurance
- Auto and Homeowners Insurance
- Deferred Compensation Plan 457
- Dental Insurance
- Dependent Care Assistance Plan
- Disability Income
- Group Life Insurance
- Health Spending Account Plan
- Hospital and Medical Insurance Program
- Liability Insurance
- NC FLEX PROGRAM
- Savings Bonds
- State Employee Credit Union
- Supplemental Retirement Income Plan of North Carolina 401-k
- Tax-sheltered Annuity 403-b
More information on non-statutory deductions is available at these sites:
- North Carolina State Employees' Credit Union
- SEANC (State Employees' Association of North Carolina) Dues
- UNC Department of Public Safety Parking Services
- Human Resources Benefit Programs Administration
|Statutory Deductions||Payroll Servicesemail@example.com|
October 1, 2014: Updated information on module used for deductions.
July 7, 2010
May 29, 2007
May 26, 2005