PAYROLL SYSTEM REQUIREMENTS

PURPOSE: To provide an accurate and timely process for authorizing and

compensating employees for time worked, and for unworked accrued
benefit time in accordance with all Federal and State Wage and Hour laws.

POLICY: The College will utilize a direct deposit method for compensating all
employees on two payroll systems, salaried and hourly. The salaried payroll
system is monthly for all exempt employees. The hourly payroll system is
bi-weekly for all non-exempt employees.

DATE APPROVED: July 7, 1999

PRACTICES & PROCEDURES:

I. General Information

A. All employed students are classified as non-exempt employees.

B. Unworked accrued benefit time, for purposes of this policy, is

defined as any unworked time awarded to eligible, full-time
employees and compensated for holiday, personal, sick, short-term
disability, and vacation hours accumulated.

C. The College does not hold back salaries or wages. Salaries are paid
in full at the end of the current month worked. Hourly wages are
paid in full at the conclusion of the current bi-weekly work period,
consisting of two (2) weeks. With special permission granted from
the State of New Hampshire, the College compensates for these
two (2) weeks at the end of the third (3rd) week.

D. Recording actual hours worked by starting and ending times either

by hand or by time clock is a crucial part of the hourly payroll
system. Supervisors please note: The State of New Hampshire
holds employers responsible for accurately recording and paying for
time worked, and for the recording and paying of any overtime. In
all claims, the burden of proof is on the employer exclusively.

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 II. Salary Payroll System

A. Work schedules shall be completed by all salaried employees on a

monthly basis.

1. Each day of the month shall be filled in on the work

schedule to indicate status for that day. (i.e., W = worked,
H = College holiday, S = sick, P = personal, V = vacation
day, A = approved absence without pay, L = leave of
absence.)

B. At the end of each month, salaried employees should check to be

certain their work schedule form is complete and accurate.

C. The employee shall date and sign the document attesting to its
accuracy.

D. Supervisors are responsible for approving the work schedule at the

conclusion of each month and forwarding the form to the Human
Resources Office.

III. Hourly Payroll System

A. Time cards must be completed by all hourly employees, recording

actual hours worked daily. Supervisors are responsible for ensuring
the accuracy of time cards, signing and submitting cards to the
Payroll Department by 9:00 A.M. on each Monday prior to Friday
payday.

1. Time cards must also record irregular hours. (i.e., overtime

and flex time.)

2. Time cards must record the exact time of a late arrival or

early departure.

3. Time cards must also record non-working hours for which

employees may be compensated. This time should be
indicated as follows: S = sick, P = personal, H = College
holiday, V = vacation day, A = approved absence without
pay.

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 4. Time cards must record non-working hours for which
employees will not be compensated, but for which they
were regularly scheduled to work. When permission is given
to take time-off, and sick, personal or vacation is not
utilized, time-cards should be marked E.A. (excused
absence without pay).

5. The daily total should be written to the left of the daily log.

6. Corrections to a previously submitted time card will be

reflected in the paycheck for the next regular pay-period.

B. After five (5) consecutive hours are indicated as having been

worked in any one day, and no time break appears on the time-card,
the Payroll Department will assume that one-half (1/2) unpaid hour
had been taken for meal break.

1. For example, if a time card reads, "In at 1:00 P.M." and

"out at 6:30 P.M.", the employee will be paid for five (5)
hours. If lunchtime is not taken (and is in accordance with
the State law) employees will be paid for five and one-half
(5 1/2) hours when approved, and noted on the time card by
the supervisor. The supervisor should indicate that mealtime
was not taken, and should be viewed as an exception to
policy, not to be repeated on a regular basis.

C. Student time cards must be signed by the student and their

supervisor AFTER the hours have actually been worked and
recorded. Supervisors must never sign, or allow to be signed by
others in their absence, a time card in advance of the time actually
worked, as many students are employed in more than one
department. (Time-cards submitted showing hours worked in more
than one department during the same work week, same day, and at
overlapping periods of time will be returned the following week to
the respective supervisors.)

IV. Special Salary/Wage Payment Requests

A. A stipend may be paid to either salaried or hourly employees of the

College for services clearly not part of their regular position.

1. Stipends may be paid lump sum for work already completed

on the next appropriate payroll date, or prorated over the
working period. Supervisors must provide instructions at
the time of request.
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 B. To pay an employee a stipend, the Supervisor must fill out a
Stipend Authorization Form and submit it to the Human Resources
Office at least three (3) weeks prior to the salaried/hourly payday.

C. An employee who is currently paid, or has been paid through the

College payroll system at any time during the current calendar year,
cannot be paid as a vendor. The Director of Human Resources shall
make the decision as to whether or not a legal employer-employee
relationship exists between the person performing the services and
the College in accordance with IRS regulations and requirements of
the Federal Wage and Hour Law.

1. All requests for special salary/wage payment requests shall

be sent to the Director of Human Resources for review
before payment. This should include all payments requested
on a purchase order for which there is a possible need for
the issuance of a 1099.

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