Payroll Operations Policy

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General Payroll Information

The University of Minnesota has one biweekly pay cycle. Biweekly payroll is paid on a 10-day delayed basis every other Wednesday. Pay Statements are available for employees to view at MyU. Employees have the option of receiving their earnings by direct deposit into a member bank of the employee's choice. Paychecks are distributed by Payroll Services to distribution points each payday. Distribution points are:

  • Minneapolis Campus – Donhowe Building
  • St. Paul Campus – Vet Med Accounting Office and 4th floor Coffey Hall
  • The coordinate campus checks are express mailed to the campus administration building

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Departmental Internal Controls

Departments must maintain adequate internal controls over payroll processing. This includes establishing an appropriate separation of duties, assuring that payroll entries are approved at the proper level verifying entries for accuracy, and regular monitoring of the validity of the payroll.

Departments also need to maintain adequate backup documentation to support time worked by hourly/time-card employees; to enter employee absences due to paid, or unpaid leaves in a timely manner; and to document payments for overtime worked or other pay types (e.g., augmentations, shift differentials, or taxable fringe benefits).

For more information, see the detailed listing of recommended internal control and separation of duties activities for department payroll processing.

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Off-Cycle Checks

Off-cycle checks are payments to employees issued outside of the normal biweekly pay cycle. Departments are responsible for requesting off-cycle checks by submitting an Off-Cycle Payment Request (online form in PeopleSoft) to Payroll Services. The employee’s department can request an off-cycle check for:

  • Involuntary termination, the employee requests payment
  • Employee not paid in previous period
  • Departmental or central error
  • If required by regulation or bargaining unit contract

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Salary Overpayments

The University will seek repayment for all salary overpayments for active employees and for overpayments of more than $100 for terminated or former employees. Departments are responsible for identifying overpayments and notifying Payroll Services. Refer to HRMS Business Process: Overpayment Collection (pdf) for more detailed information.

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Involuntary Deductions

The University is required by law to deduct a certain dollar amount from an employee’s pay, to satisfy a debt owed to a federal or state agency, or creditor. This is accomplished by garnishing or attaching an employee’s wages to the extent required by law.

Common involuntary deductions include many different types of wage garnishments, but not limited to:

  • Federal or State Tax Levies
  • Child Support Withholding Orders
  • Creditor Garnishments
  • Bankruptcy Orders
  • Student Loan Collections
  • Federal Agency Debt Collections

Payroll Services will garnish or attach an employee’s wages to the extent required by law, to satisfy this requirement.  See After Tax Deductions for more information.

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Unclaimed Checks

If an employee’s paycheck is not picked up in the department, it is the department’s responsibility to mail the check to the employee. If the forwarding address is not known, the department should immediately return the check to Payroll Services so they can attempt to forward the check to the employee. The Minnesota Unclaimed Property Act (Minn. Stat. §345.31 to 345.60) requires the University to report to the Commissioner of the Department of Commerce any payroll checks that have remained uncashed for one year.

Payroll Services works with Accounting Services on the “escheatment” process for unclaimed checks. Escheatment, in the context of payroll, refers to the process required by law of turning over unclaimed wages (uncashed checks) to the state after a period of time determined by state laws. The Accounting Services handles the escheatment process for, not only payroll, but all types of checks.

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