1. Finance Department Jasper City Schools
Payroll & Benefits
Jasper City Schools
Welcome to the Jasper City School System.
Today’s objective is to provide an overview of several items related to payroll and benefits.
We hope that most of your questions will be answered as we go along
but we will take time to answer questions at the end of the presentation.
The one question that is on everyone’s mind is…
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Benefits & Payroll Overview

2. When do I get my first Paycheck?
Finance Department
When do I get my first Paycheck?
Nine month employees
September 30* (you may request 13 checks your first year, moving paydate to August 29)
Ten & Eleven month employees
August 29*
Twelve month employees
July 31*
*Checks are always issued on the last working day of the calendar month.
Your new employee packet had a Payroll Calendar with Pay Period Cut Off Dates for the school year.
Each pay period ends approximately mid-month...
Except December which ends quite early so we can get payroll processed in time to issue checks before employees leave for winter break.
When you receive your first paycheck you may notice the difference between your gross pay and the amount you actually receive.
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Benefits & Payroll Overview

3. What about Take Home Pay?
Finance Department
What about Take Home Pay?
Employees hired after
January 1, 2013:
Wages $2,891.54
Soc Sec
Medicare
Federal
State
Retirement
6.00%
Take Home $2,052.83
This chart lists mandatory deductions for every employee in the system.
On an individual basis employees may have additional deductions, but never fewer deductions.
In addition to the taxes that are withheld from your check, the board also has financial obligations to meet on behalf of every employee.
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Benefits & Payroll Overview

4. What about Take Home Pay?
Finance Department
What about Take Home Pay?
Employees hired before
January 1, 2013:
Wages $2,891.54
Soc Sec
Medicare
Federal
State
Retirement
7.50%
Take Home $2,009.46
This chart lists mandatory deductions for every employee in the system.
On an individual basis employees may have additional deductions, but never fewer deductions.
In addition to the taxes that are withheld from your check, the board also has financial obligations to meet on behalf of every employee.
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Benefits & Payroll Overview

5. Wages & Employer Taxes Paid
Finance Department
Wages & Employer Taxes Paid
Employees hired after
January 1, 2013:
Wages $ 2,891.54
Soc Sec
Medicare
SUI
Retirement
11.05%
Total Cost $ 3,436.90
Paid by the
School System
For every dollar an employee pays in Social Security and Medicare taxes, the board of education is required to make a matching payment on that employee’s behalf.
SUI – State Unemployment Insurance is also paid by the board of education on behalf of its employees.
RETIREMENT: Employees have 7.25% of their gross pay withheld for their retirement account at the Teachers’ Retirement System in Montgomery. Currently, the board pays 10.08% to the retirement system on behalf of each employee.
Compare the $ withheld from the employee paycheck to the $365.35the board of education is obligated to pay. This is a good example of why retirement from the Teachers’ Retirement System is sought after.
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Benefits & Payroll Overview

6. Wages & Employer Taxes Paid
Finance Department
Wages & Employer Taxes Paid
Employees hired before
January 1, 2013:
Wages $ 2,891.54
Soc Sec
Medicare
SUI
Retirement
11.71%
Total Cost $ 3,455.98
Paid by the
School System
For every dollar an employee pays in Social Security and Medicare taxes, the board of education is required to make a matching payment on that employee’s behalf.
SUI – State Unemployment Insurance is also paid by the board of education on behalf of its employees.
RETIREMENT: Employees have 7.25% of their gross pay withheld for their retirement account at the Teachers’ Retirement System in Montgomery. Currently, the board pays 10.08% to the retirement system on behalf of each employee.
Compare the $ withheld from the employee paycheck to the $365.35the board of education is obligated to pay. This is a good example of why retirement from the Teachers’ Retirement System is sought after.
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Benefits & Payroll Overview

7. Finance Department
Salary
Employees are placed on the salary schedule based on years of experience prior to joining the Jasper City School System.
The salary schedule increases every year until it reaches the top according to that particular class of employee.
This is called a step raise.
Benefits & Payroll Overview

8. Summary of Payroll Procedures
Finance Department
Summary of Payroll Procedures
Employees who are away from work must enter their absence on Kelly Educational Services website, and document the reason for the absence.
This includes, but is not limited to:
Sick leave
Personal leave
Vacation leave
Professional leave
Jury duty
Military leave
Please see your local school bookkeeper for specific submission instructions.
Benefits & Payroll Overview

9. Kelly Educational Services (KES)
KES is our time-keeping and teacher substitute service. All employees (other than bus drivers) must enter their absences on the KES software (using the Aesop system).
You will be provided with a username and password with which to enter this information. Absences must be entered at least one day in advance, if known. Unexpected absences may require a telephone call to KES. Your bookkeeper will assist you with this information.

10. Summary of Payroll Procedures
Finance Department
Summary of Payroll Procedures
All employees receiving compensation for any work performed on school premises must be paid thru the school payroll system. This is a Federal Fair Wage and Hour requirement. No exceptions to this procedure are allowed.
Benefits & Payroll Overview

11. Summary of Payroll Procedures
Finance Department
Summary of Payroll Procedures
Hourly employees must clock in and out for all duties performed. This includes any duties performed on school premises outside normal work schedule.
Benefits & Payroll Overview

12. Summary of Payroll Procedures
Call the Central Office to schedule an appointment with Freda Earnest, Payroll Specialist. She will provide you with your employment forms and employee identification number. Mrs. Earnest will also provide you with insurance information.
Your building principal will provide to you your JCS address.

13. Direct Deposit Improved Security No waiting in lines at the bank
Finance Department
Direct Deposit
Improved Security
No waiting in lines at the bank
Money available the morning of payday
Choose your own bank
Notify Payroll Department immediately
If you change banks and/or your account is closed.
If your account number changes.
Direct Deposit is recommended for all employees and is the most secure method of payroll delivery.
It is so important that you understand that if there is any change in your bank account you must notify the payroll department immediately.
We depend on you, the employee, to keep us up to date with your financial information.
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Benefits & Payroll Overview

14. Health Benefits - PEEHIP
Finance Department
Health Benefits - PEEHIP
Blue Cross/Blue Shield
Basic Major Medical
No Referrals
Monthly Premium
$ 15 Single
$177 Family
VIVA Health Plan –HMO
Major Medical
Vision
Dental
H M O
Monthly Premium
$ Single
$177 Family
PEEHIP is the acronym for Public Education Employees Health Insurance Plan.
PEEHIP has two options for hospital/medical coverage and hopefully you have taken some time to review your packet and have made your decision.
Each employee is eligible, on a voluntary basis, for certain types of health insurance. A full insurance allocation is available for each full time employee. Employees that work less than full time may be eligible for a portion of the insurance allocation & benefits available through PEEHIP.
If you have been hired for less than full time work, you will need to see me at the end of the meeting.
The state insurance allotment is $775 per month to assist in the purchase of such insurance.
The currently monthly premium for PEEHIP is $777 for single coverage and $909 for family coverage.
Your out-of-pocket expense is noted here… single coverage is $15 per month and family coverage is $177 per month.
Compared with the monthly premium for insurance coverage, the out-of-pocket rates are great.
Monthly premiums are payroll deducted.
Your first check, issued on September 30, will have a deduction for the premium that pays for the October coverage.
As new employees you can choose to have your insurance coverage begin during the month you officially start work, August 4th , or the first day of the following month, September 1st. Information on coverage prior to October 1st and payment of the premiums due was included in your packet.
Before you turn in your insurance enrollment or status change form please make sure that you have not overlooked the question regarding tobacco use for you and /or your spouse. This is required information.
If you don’t give an answer you will be charged a $23 tobacco surcharge per month in addition to any other premium that you pay for hospital/medical coverage.
PEEHIP also offers insurance coverage for those who may be covered by hospital/medical insurance carried by their spouse.
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Benefits & Payroll Overview

15. Southland Insurance Supplemental Coverage
Finance Department
Southland Insurance Supplemental Coverage
Cancer Program $ 38 per month*
Dental Coverage, individual $ 38 per month
Dental Coverage, family $ 45 per month
Hospital Indemnity $ 38 per month*
Vision Coverage $ 38 per month*
Purchase supplements $38/$45 ea. / month OR
Refuse major medical coverage and apply allocation
to the supplements for coverage at no charge.
* Single or Family Coverage
These four plans
Cancer, Dental, Hospital Indemnity & Vision
are administered by Southland Insurance.
There are available alone or in addition to PEEHIP hospital/medical insurance coverage.
The premium for each plan is the same regardless of whether you select single or family coverage. The difference lies in the benefits paid.
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Benefits & Payroll Overview

16. PEEHIP Insurance Allocations “3 – 1” Rule
Finance Department
PEEHIP Insurance Allocations “3 – 1” Rule
An employee will earn one additional insurance allocation for every three months the employee has worked at least one half of the work days in the months worked.
Work nine months and receive three summer allocation.
Employees working less than nine months will not earn all months and will owe an additional amount for insurance.
The 3-1 rule is used to determine how much insurance coverage an employee earns for the summer months following the school year worked.
In the case of a nine-month employee here today this would be June, July & August of 2015.
If you work September, October & November, you earn the June 2015 insurance allocation.
December, January & February earns the July 2015 allocation.
March, April & May earns the August 2015 allocation.
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Benefits & Payroll Overview

17. Copayment & Deductible Copayments- Deductibles Beginning 10/1/2013
Finance Department
Copayment & Deductible Copayments Deductibles Beginning /1/2013
Physician Office Visit Copay $30.00
Medical Emergency Room Visit Copay $150.00
Outpatient Surgery Facility Copay $150.00
Inpatient Hospital
Copay per admission $200.00
Daily Copay, days $25.00
Lab Copay $5.00
Major Medical Deductible
Single $300.00
Family Maximum $900.00
Benefits & Payroll Overview

18. Copayment & Deductible Copayments- Deductibles Beginning 10/1/2013
Finance Department
Copayment & Deductible Copayments Deductibles Beginning /1/2013
Prescription Drugs (30 day supply) Generic Copay $ 6.00 Preferred Drug Copay $40.00 Non Preferred Drug Copay $60.00 Prescription Maintenance Drugs (90 day supply) Generic Copay $12.00 Preferred Drug Copay $80.00 Non-Preferred Drug Copay $120.00
Benefits & Payroll Overview

19. Dental Plan Premium Rates Beginning 10/1/13
Finance Department
Dental Plan Premium Rates Beginning 10/1/13
Active & Retired Members Family $45.00 Single (no change in premium) $38.00 Note: No change in premiums, single or family, for the Cancer, Indemnity and Vision plans.
Benefits & Payroll Overview

20. Open Enrollment PEEHIP enrollment begins July 1.
On-line enrollment ends September 10.
Paper enrollment ends August 30.
All open enrollment elections approved by PEEHIP during the Open Enrollment period become effective October 1.
New employees must enroll online within 30 days of employment.

21. Federal Health Care Reform
Finance Department
Federal Health Care Reform
Adult Children – PEEHIP offers dependent hospital medical coverage (at the member’s option) to adult children up to age 26. In accordance with the Federal Health Care Reform Legislation, a married or unmarried child under the age of 26 is eligible for coverage under the employee’s contract.
Benefits & Payroll Overview

22. Federal Health Care Reform
Finance Department
Federal Health Care Reform
Lifetime Dollar Limits – PEEHIP is prohibited from having lifetime dollar limits on essential health benefits covered under major medical.
Benefits & Payroll Overview

23. Annual Out-of-Pocket Maximums
Effective October 1, 2014, the Affordable Care Act (ACA) requires all non-grandfathered health plans to comply with the annual limitation on out-of-pocket (OOP) maximums for in-network services: $6,350 for single coverage and $12,700 for family coverage.

24. PEEHIP Wellness Program
PEEHIP has teamed with the Alabama Department of Public Health (ADPH) to launch a new and improved wellness program for PEEHIP members. This program and its free services are designed to help PEEHIP members live happier, healthier, and more satisfying lives.

25. PEEHIP Wellness Program
Required to complete in order to qualify for the wellness premium discount:
- Wellness Screening (available at worksite locations beginning August 1, 2014)
- Health Risk Assessment Questionnaire (HRA)
Questionnaire (HRA) (available January 1, 2015)
- Applicable deadlines must be met in order to receive the wellness premium discount.
- PEEHIP will continue to provide information about the Wellness Program in future PEEHIP Advisors mailouts.

27. Finance Department
Benefits & Payroll Overview

29. Finance Department
Life Insurance
Death Benefits - These are provided through the Teacher Retirement Program and depend on years of service. For example, persons with from 1 to 25 years of service will receive death benefits consisting of their total retirement contributions plus an amount equal to the previous year's salary, plus any accumulated sick days. Also provided is a $15,000 life insurance policy. -
You are also provided death benefits through the TRS. Normally depending on years of service and age your beneficiary will receive benefits consisting of their total retirement contributions plus interest and an amount equal to the previous year’s salary.
Benefits & Payroll Overview

30. Professional Liability Insurance
Finance Department
Professional Liability Insurance
The State of Alabama protects every professional staff member with liability insurance.
Benefits & Payroll Overview

31. Retirement Teachers’ Retirement System
Finance Department
Retirement
Teachers’ Retirement System
At least 10 years service – retire at age sixty-two
After just 10 years of service you become “vested” in the Teacher’s Retirement System. At that time you are eligible to receive retirement benefits at age 62.
Benefits & Payroll Overview

32. Retirement
If you terminate employment you will have the option to withdraw your contributions from the retirement system. Doing so will zero out all service credit for your account.
If you decide to withdraw your contributions before ten years have passed, you will only receive the contributions that were withheld from your salary, less taxes. You are not eligible or entitled to any contributions made by the board of education unless you have more than ten years of service.

33. Types of Leave Professional Leave Jury Duty
Finance Department
Types of Leave
Professional Leave
Coordinate with the school principal; requires approval from principal on KES/Aesop
Jury Duty
Coordinate with the school principal
Attendance certificate required
Maternity / Paternal / Medical Leave
Notify school principal
Notify superintendent and payroll bookkeeper
FMLA eligible if employed / worked > 1260 hours
Employees are required to complete a leave form anytime they are away from their job.
Get to know the bookkeeper at your school. She will be able to assist you with many questions regarding leave and the necessary steps you will need to take for payroll purposes.
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Benefits & Payroll Overview

34. Types of Leave Vacation Leave Personal Leave – all employees
Finance Department
Types of Leave
Vacation Leave
12 month employees earn 10 days / year; maximum balance of 20 days
11 month employees earn 5 days/ year; maximum balance of
10 days
Personal Leave – all employees
5 days per year, first 3 “free”
Last 2 days, must pay cost of substitute ($85.80 for certified sub, $78.65 for non-certified sub)
Balance not used by July (July 1 – June 30) converted to sick leave
Sick Leave – all employees
Earned at one day per month contracted
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Benefits & Payroll Overview

35. Importance of Sick Leave
Finance Department
Importance of Sick Leave
Sick Leave may be accumulated and applied toward service credit at retirement
Sick Leave may be used when
-An employee is ill or has suffered bodily injury.
-A member of the employee’s immediate family is ill.
-A death has occurred in the employee’s immediate family.
The State of Alabama has issued legal opinions stating that sick leave cannot be used for any other reasons. Also sick leave cannot be used for time prior to retirement.
Sick Leave guidelines are set by the State Department of Education.
Employees earn sick leave based on the number of contract months worked.
Sick leave can be used for the following:
Personal Illness
Family Illness
Death in the Family
Your sick leave is one of the most valuable things you earn as an employee.
There are two reasons to guard your sick leave carefully.
First—things happen in life that we never expect and having adequate sick leave to cover an absence will help keep your paycheck coming in.
Second—when you are ready to retire, the sick leave balance that you have is converted to service credit.
This credit can be used to attain minimum service requirements for retirement or it may be added to total service credit if the minimum service has been attained.
For instance, if you have 187 sick leave days available when you are ready to retire you can add one year of service credit. So you could work for 24 years, use sick leave for service credit and attain the 25 years required for retirement.
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Benefits & Payroll Overview

36. Sick Leave Bank Commit five (5) days to the bank to become a member.
Finance Department
Sick Leave Bank
Commit five (5) days to the bank to become a member.
Eligible to give or receive donations in case of catastrophic illness.
Borrow a maximum of fifteen (15) days against future days earned.
An approved loan application is required.
Submit loan request to Mrs. Earnest.
Membership in the sick leave bank is strictly voluntary but enrollment is offered on a limited basis.
Date employed.
Open Enrollment.
When an employee is hired.
During the annual open enrollment.
Days borrowed from the sick leave bank must be repaid. If an employee terminates and days are owed to the SLB, the employee will be docked for each day outstanding.
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Benefits & Payroll Overview

37. On the Job Injury Report immediately to your Supervisor
Finance Department
On the Job Injury
Report immediately to your Supervisor
OJI report should be filled out within 24 hours
Report should be sent to the Central Office to the attention of Monique Rector
Benefits & Payroll Overview

38. Deferred Compensation Plans
Finance Department
Deferred Compensation Plans
403B - Under this plan, employees may contribute as much as $17,500 (2014) of pre-tax income to an annuity each year. The contribution is automatically deducted from their paychecks. By investing money in this way before taxes are paid, employees can reduce their current income tax burden. It is permissible to transfer accumulated funds, with no dollar limit, to other qualified IRA annuity plans.
Once such an investment is made, the interest or dividends earned are only taxed as funds are withdrawn. Since the withdrawals are usually made after retirement when the participant is likely to be in a lower tax bracket, less tax is paid and funds accumulate faster.
Benefits & Payroll Overview

39. Deferred Compensation Plans
Finance Department
Deferred Compensation Plans
RSA-1 - Using this plan, employees may elect to delay receiving a portion of their salary (may not exceed--if more than one 457 plan, combined deferrals must not exceed--$17,500 (2014). The deferred income, which accumulates interest in a special fund, is not subject to federal income tax until distributed to the employee.
  RSA-1 funds will be invested in the same type of investments and are subject to the same guidelines and limitations as applicable to investments made by the Teacher Retirement System.
Benefits & Payroll Overview

40. and medical expenses such as co-payments
Finance Department
Flex Plan
A cafeteria plan is a way to provide employees valuable benefits and tax savings.
Benefits under a cafeteria plan may include reimbursement of dependent care expenses
and medical expenses such as co-payments
and deductibles.
Also, very importantly, you always pay insurance premiums with pre-tax dollars.
Benefits & Payroll Overview

41. Flex Plan Mandatory flex plan Voluntary flex plan
Finance Department
Flex Plan
Mandatory flex plan
Will always include insurance premiums
Voluntary flex plan
Dependent care / child care plans
Medical expense / reimbursement plans
Benefits & Payroll Overview

42. Open Enrollment Open Enrollment
Finance Department
Open Enrollment
Open Enrollment
The open enrollment deadline for the Flexible Spending Accounts is September 30th, for an effective date of October 1st.
Plan deductions start on the October payroll check. Deductions end with the September payroll check of the following year.
All deductions are processed over 12 months.
Open enrollment ends September 30th for an effective date of October 1st. All deductions are processed over 12 months.
Benefits & Payroll Overview

43. FlexPlan Administrators of Flexible Spending Accounts
Finance Department
FlexPlan Administrators of Flexible Spending Accounts
PEEHIP
Offered through BC/BS of Alabama
Benefits & Payroll Overview

44. Federal Health Care Reform
Finance Department
Federal Health Care Reform
Flexible Spending Accounts – Reimbursement of over-the-counter drugs from the Health Care FSA is prohibited unless you have a doctor’s prescription for a drug..
PEEHIP offers a Preferred Flexible Spending Card as well as manual reimbursement.
Annual limit of $2,500
Benefits & Payroll Overview

45. Finance Department
DOCUMENT SERVICES
Still under construction, but parts are accessible………
Receipt of on payday of direct deposit information
Provide your monthly pay information for future use
Provide W-2 information
Retrievable only through network access
Benefits & Payroll Overview

46. Document Services Sign-In
User Name – Create any user name you want. Be sure it is something
On your first visit you will create an account.
you will remember. SSN – enter your actual Social Security Number. Employee Number – your Central Office-issued employee number. It is printed on your paystub. Password – must be at least 6 characters in length. Click REGISTER. CAUTION – write down your User Name and Password in case you forget it.

47. Finance Department
Benefits & Payroll Overview

48. Who do I call? For questions about
Finance Department
Who do I call? For questions about
Payroll & Benefits?
Freda Earnest, Payroll Specialist
Central Office,
Absences?
School Bookkeeper
Benefits & Payroll Overview

49. Who do I call? Contacts at the Board Office 384-6880
Finance Department
Who do I call? Contacts at the Board Office
Payroll
Freda Earnest, Payroll Specialist
General Concerns & Board Issues
Monique Rector, Chief School Financial Officer
Federal Programs
Dr. Jean Lollar, Assistant Superintendent
Contracts, Teacher Certificates & Transcripts
Dr. Martha LaCroix, Director of Accountability Programs and Support Services
Sandra Morgan, Secretary to the Superintendent
Benefits & Payroll Overview