The mission of Payroll and Compensation
is to pay every employee accurately and on time, every
The Payroll and Compensation office
has the responsibility for preparing the payroll for
all employees. All pay is distributed by Payroll and
Compensation on a semi-monthly basis.
Payroll and Compensation is responsible
for the maintenance and verification of gross earnings.
The office is responsible for maintaining W-4 and Earned
Income Credit records for withholding purposes. The
office maintains records of other payroll deductions
including retirement contributions, annuities, union
dues, association dues, charity, savings bonds, insurance,
tax-free parking, campus recreation, and any other deductions
sanctioned by the university.
Payroll and compensation prepares
and issues all federal and state income tax withholding
statements (W-2 forms).
Payroll and Compensation provides
information relating to payrolls or individual employees’
earnings only to authorized individuals. The office
furnishes outside state and federal agencies with statistical
information upon request. Other information includes
earnings statements for individuals seeking wage verification
and sick leave and vacation records.
The most current version of this document is available
on the HRS web site.
- Pay Period -- Payday
All employees are paid on a semi-monthly
basis with pay periods from the 1st to the
15th and the 16th to the last
day of the month. Paydays are the 1st and
16th day of each month except when those
days fall on either a Saturday, Sunday, or holiday.
In that event payday will be on the last university
business day preceding the normal payday.
Payroll checks and direct deposits
of pay will not be released until the scheduled payday
for each pay period.
All timecards not properly completed
may not be processed until the next payroll.
- Timecards -- Timecard reporting
- Overtime to be paid must
be shown on the timecard on the appropriate line.
- Holidays, funeral leave; military
leave, jury duty, and any other authorized leave will
be paid on the basis of the employee’s normal workday.
- Time must be reported to the
nearest one-tenth (.1) of an hour. Do not use fractions,
i.e., ½, ¼, etc.
- If a night shift or temporary
classification change rate is to be paid, circle the
hours the differential applies to. On the back of
the timecard the differential rate, hours, and type
should be shown. The supervisor’s signature is also
required to approve the payment of a differential.
The rates used must be those authorized by the Human
Resource Services Office.
- Timecards must be completed daily,
totaled, signed by the employee and supervisor in
ink, and returned to Payroll and Compensation no later
than 4:30 p.m. on the first work day following the
completion of a pay period.
- Timecards must be returned to
Payroll and Compensation in the same order as they
were sent out – the entire department in alphabetical
order. Normally, Payroll and Compensation will not
contact departments about missing timecards.
- The timecards to be used should
be those pre-printed by Payroll and Compensation.
Blank timecards may be filled in and submitted only
with the prior approval of Payroll and Compensation.
- No employee is expected to sign
a blank timecard and all changes to timecard hours
should be initiated by the employee and supervisor.
An employee may receive payment
of sick leave for a time prior to or immediately following
an approved vacation or holiday period if the supervisor
specifically approves the sick leave hours on the employee’s
timecard. To be eligible for holiday pay, an employee
must have worked or been on pay status the last scheduled
work day prior to and following a holiday. Scheduled
workdays are determined by the supervisor. Supervisors
may withhold holiday pay from an employee who is absent
immediately before or after a holiday (or holidays)
when the absence is not excused by making a notation
"unauthorized absence" on the employee’s timecard.
The employing departments are responsible
for making the distribution of paychecks to their employees
and should make every effort in seeing that the employees
receive payment on a timely basis.
Departments which are unable to
locate the employee to make payment within a sixty (60)
day period should return the warrant to Payroll and
Compensation with a short explanation of why the check
could not be delivered to the payee.
Payroll checks returned after the
sixty (60) day period or appearing on the outstanding
list after a sixty (60) day period are subject to review
by the Internal Audit Office.
Any unemployment correspondence
received by any university department should be forwarded
as soon as possible to Payroll and Compensation. The
university has ten working days to reply to the Unemployment
Compensation office. It is university policy to challenge
all unwarranted benefit claims.
Upon receipt of a claims application
form, Payroll and Compensation will complete the information
requested from HRS computer files and consult the employee’s
file folder if they are not a student employee. Consultation
with the Contracts, Records and Reports personnel may
Eligible non-exempt Civil Service
employees and student workers are paid overtime at the
rate of time and one-half whenever they work in excess
of 7.5 hours in a day or 37.5 hours in a week.
NOTE: Students should
not be worked overtime. Non-exempt Civil Service employees
may receive time and one-half or double time depending
on contract coverage.
NOTE: Some Civil
Service personnel under negotiated contracts must work
in excess of 8 hours per day in order to be eligible
for overtime pay.
- Compensating Time Off
An hourly paid employee in a status
position is eligible for compensating time off in lieu
of overtime payment at the rate of time and one-half
for all time in excess of 7.5 hours per day, with mutual
agreement of supervisor. The maximum amount of compensating
time accrued may not exceed the equivalent of 112.5
hours (15 workdays) for those on a 37.5-hour work week
or 120 hours (15 workdays) for those on a 40-hour work
week. It will be the responsibility of the departmental
supervisor to file a Compensating Time Record form with
the Payroll and Compensation Office each pay period
an employee uses compensating time. This form is available
on the HRS web site http://www.hr.niu.edu/resources/forms.cfm
Employees who leave the university
with accrued compensatory time will be paid in their
last paycheck as is done with vacation pay. Such payments
will be based on the employee’s earning rate as of the
time of separation, or the average of the last three
years, whichever is greater.
- Monthly Benefit Usage Report
Monthly Benefit Usage Reports, provided
by Payroll and Compensation are to be completed and
returned to Payroll and Compensation within five working
days after the completion of the pay period.
Non-worked time other than vacation
and sick leave is reported as follows:
- Absent Without Pay:
The supervisor of employees who are absent from their
job duties without leave to cover the time lost must
contact the Contracts, Records, and Reports Office.
The Contracts, Records, and Reports Office will then
process leave without pay papers to Payroll
and Compensation for proper wage deductions.
- Funeral Leave: When
it is necessary to use "Funeral Leave,"
make a notation on the front of the card showing dates
you were absent and relationship of deceased family
- Jury Duty: When
serving on a jury, please note the dates you served
on the front of the card.
- Military Leave:
Should you require to perform "Military Training,"
a copy of your "orders" from the appropriate
military unit must be filed with the Contracts, Records,
and Reports Office before the leave begins.
No person’s names may be placed
on a payroll without proper authorization on file with
Payroll and Compensation.
The Provost prior to payment must
approve faculty notices of employment providing authorization
to place a faculty member on the payroll.
Graduate assistants must have assistantship
papers processed through the Graduate School and signed
by the Dean of the Graduate School. The dean with his
written signature must also approve extra payments.
Employment authorization notices
for all civil service positions, including part-time,
full-time, temporary, permanent, exempt or non-exempt,
must be processed through the Contracts, Records, and
Authorization for both college work-study
and regular student employees must be obtained through
the Student Employment Office by submitting the appropriate
eligibility forms. These eligibility forms are available
in the Financial Aid Office. See procedure 25-1 for
non-work-study employment procedures and forms and refer
to procedure 25-2 for work-study student employment
procedures and related forms.
may not begin working until their eligibility has been
verified and the authorization approved.
Authorization for additional pay
must be secured before payment can be made, regardless
of the source of funds. Authorization is required for
any individual who has been on a university payroll
within the calendar year. It should be noted the honorariums
are applicable only to persons not
connected with the university and are paid through the
- Other Compensation
Other compensation (such as reimbursement
for moving expenses) paid through the Accounting Office
will be reported to Payroll and Compensation and included
on the employee’s W-2 statement. The personal use of
assigned university vehicles is taxable and will also
be included on the employee’s W-2 statement. Employee
tuition waivers, if pay taxable, will be included on
the W-2 statement.
Direct Deposit of Pay
Electronic direct deposit is policy
for all employees. Earnings statements will be sent
to the employee’s department before payday when the
direct deposit is imminent. An authorization form with
a void check or void savings deposit form, if pay is
to be deposited in a savings account, must be filed
with Payroll and Compensation in order to begin the
process. A Direct Deposit Form (Authorization agreement
for automatic payment) may be found at http://www.hr.niu.edu/resources/forms.cfm
and is also available at Human Resources.
An employee may authorize the withholding
of a portion of their salary for the purpose specified
in the State Salary and Annuity Withholding Act, (III.
Rev. Stat. Ch. 127, secs. 351-60). In accordance with
the provisions of said Act, no portion of an employee’s
salary may be withheld to pay premiums on life or accident
and health insurance policies issued by one insurance
company unless a minimum of 100 university employees
insured by such company have authorized such withholding.
Withholding from salaries for other purposes authorized
by the Act shall be governed by the regulations of the
Board of Trustees. All withholding authorizations must
be on forms prescribed by the university and must conform
to all of the requirements of the State Salary and Annuity
The following rules would apply:
- All deductions must be deducted
on the pay period basis adopted by the university.
- An authorization for a payroll
deduction will be effected no later than the pay period
following the current pay period after receipt in
Payroll and Compensation. The authorization form must
be prescribed form(s) of the university and must be
completed and signed by the employee.
- Revocation of payroll deduction
requires the employee to complete and sign the prescribed
authorization card available at Payroll and Compensation.
Revocation will become effective no later than the
pay period following the current pay period after
in Payroll and Compensation.
- Payroll deduction adjustments
require the submission of a new payroll deduction
authorization, (if the deduction amount is changed
for all employees, the new authorization may be
- Solicitations by insurance companies,
union organizations, associations, etc. will not be
conducted on university premises without prior administrative
approval of the Vice President for General Administration.
- An insurance company offering
life or accident and health insurance policies that
has permission to solicit business on university premises
must secure at least 100 university employee withholding
authorizations to be accepted by Payroll and Compensation.
- Companies or organizations conducting
solicitations, unless approved by the Board of Trustees
and/or university administration, will not state nor
imply directly or through advertising and solicitation
materials that the university sponsors or approves
of the plan.
- The university may discontinue
withholding from salaries to pay to one insurance
company premiums on life or accident and health insurance
policies at any time that university employee withholding
authorization for that company shall number less than
100. The university will notify the company that the
participation is less than 100. The insurance company
will have six months after notification to bring the
enrollment up to the minimum number.
Currently, deductions are authorized
for group insurance, group medical, term life, dental
insurance, savings bonds, union dues, credit union,
charity, dependent care, medical care, NIU Foundation,
and NIU Athletic Association.
Aetna Group Accident
Insurance – This coverage has a fixed premium
to be deducted once each pay period. Additional information
and necessary forms are available in the Insurance and
Employee Benefits Office.
Medical and Dental
Insurance – This coverage has a fixed premium
to be deducted each pay period. The State of Illinois
pays a portion of this premium. The premium varies according
to the marital status, number, and ages of the participants.
Additional information and the necessary forms are available
in the Insurance and Employee Benefits Office.
Reliastar Term Life
Insurance – This is
a low-rate term life policy for employees and their
families. The premium, which is deducted once each pay
period, depends upon the number and ages of those covered.
Additional information and the necessary forms are available
in the Insurance and Employee Benefits Office.
– Savings bonds may be deducted each
pay period in any amount which meets the bond purchasing
requirements. Bonds purchased at any time during the
month earn interest from the first of that month. Additional
information and the necessary forms are available in
Payroll and Compensation. There are two types of bond
programs: Series EE traditional and the I inflation
– Any information concerning union dues, deductions,
policies, or procedures should be addressed to the local
chapter president or union steward.
– Charity deductions can be made each pay period for
the NIU Foundation, Kishwaukee Habitat for Humanity,
NIU Athletic Association, the DeKalb or Sycamore United
Way, and the State Universities Employees Combined Appeal.
Contributions of as little as $1.00 per pay period may
be made; there is no maximum contribution.
Credit Union – Arrangements
for credit union deductions should be made at the Credit
Campus Recreation – Employees
may pay membership fees to campus exercise programs
via payroll deduction. Contact the Office of Campus
Tax Free Parking – Campus
parking permit fees paid via payroll deduction are pre-tax
and not included in taxable gross on the W-2 statement.
Contact the Campus Parking Office for details.
- Tax Deferred Annuities
The State of Illinois and the Board
of Trustees authorize several different investment companies
for payroll salary reduction. By having salary reduction,
an individual’s taxes are calculated on the gross dollars
less the annuity amount. Also, the gross dollars earned
on the employee’s W-2 form are the gross dollars earned
less the annuity amount, or the taxable gross.
Universities Retirement System
eligible and participating in the State Universities
Retirement System are required to contribute a percentage
of their gross pay. Payroll and Compensation makes this
employee contribution automatically when the Contracts,
Records and Reports Office forward the proper forms.
The retirement contribution is considered
to be "picked-up" by the employer and is not
taxable income for the purpose of calculating withholding
taxes or W-2 wages.
- Social Security (Medicare)
Except for registered students,
all employees who begin employment after March 31, 1986
are subject to a deduction for the Medicare portion
of social security (FICA) taxes, and effective 7-1-91
some employees not eligible for SURS may be subject
to full social security taxes. Students working during
the summer but not taking classes will be subject to
full social security taxes.
- Federal Withholding Taxes
Federal income tax will be withheld
on a graduated basis to a greater or lesser degree dependent
on the marital status and number of exemptions claimed
by the individual on the W-4 form filed in Payroll and
Compensation. Special withholding based on a percentage
of taxable wages rather than exemptions is available.
Special withholding can only be used if the resultant
tax exceeds the normal tax which would be withheld for
the employee. An NIU W-4 form is available from payroll
or may be downloaded from the HRS web site http://www.hr.niu.edu/resources/forms.cfm.
from Foreign Countries
Based on a substantial presence
test, employees from other countries are determined
to be either in a resident or non-resident alien tax
status. Appropriate withholding of taxes is then applied
based on the relevant tax status.
Any earnings due an employee at
the time of death will be paid to the employee’s estate.
Certified death certificate and small estate affidavit
(where no estate is opened) or letter of administration
or testamentary (where payee decedent's personal representatives)
must be presented at Payroll and Compensation to secure
this payment. Benefits due from the retirement system
(if the employee was an eligible participant) will be
paid upon presenting the same proof documents to the
Insurance and Employee Benefits Office. Additional details
are available at the Insurance and Employee Benefits
Payroll and Compensation maintains
a record of contributions, deductions, and earnings
of all university employees. This information is available
to any employee desiring their earnings record. Employees
may secure this data via mail or in person, but not
by telephone. Employees should retain their earnings
statements for future reference.
Stolen or Destroyed Checks
If a paycheck has been lost, stolen,
or destroyed, this fact should be reported to Payroll
and Compensation immediately. Payroll and Compensation
will arrange for a stop payment on the original check.
A duplicate check will be written as soon as verification
has been received from the bank that the original check
has not been cashed and an affidavit has been signed
by the employee stating that if the original check is
found it will be returned to Payroll and Compensation.
There are no payroll advances for
persons currently on a payroll. State law prohibits
payments being made before the completion of a pay period.
Changes of rate, classification,
source of pay and working location must be processed
through the Student Employment office, the Contracts,
Records, and Reports Office and the Graduate School.
These offices will forward the appropriate form authorizing
such changes to Payroll and Compensation. Insurance
deductions and annuity deductions are processed through
the Insurance and Employee Benefits Office. Changes
of name and address are processed through Contracts,
Records, and Reports Office. Social security number,
marital status, number of exemptions, withholding tax,
deductions, and check distribution are processed through
Payroll and Compensation.
Cut-off date for changes and placing
new non-exempt employees on a payroll is normally the
sixth working day following the end of a pay period.
However, please refer to the payroll schedule for the
Changes on faculty and administrative
civil service employees pertaining to name, marital
status, number of exemptions, deductions, reductions,
department location, check distribution or charge are
to be made by the third working day of the current pay
period. Normally, changes in salary and additions to
the payroll are to be made no later than the third working
day of the pay period. However, changes to the schedule
do occur and reference should be made to the published