Compensation

1. PAY PERIODS

All college employees, except student employees, are paid on the last working day of each month.

Non-exempt employees must submit a payroll time report on the first working day of each month for the previous month. Exempt employees submit a vacation and sick leave report by the tenth of the month for the previous month to their divisional vice president.

Employees submit completed payroll reports to their supervisors for approval. The reports are then forwarded to the payroll clerk. Approved payroll reports must be to the payroll clerk by 9:00 a.m. on the 20th of the month.

2. EARNINGS DEPOSIT

On payday, the last working day of each month, employees receive an earnings statement detailing gross pay, deductions, and net pay. Employees have the option to elect automatic deposit to any checking and/or savings account at any financial institution or to receive an actual check for deposit.

The Service Credit Union located in Ames, with branches in Des Moines is available to all employees for direct deposit. Information and enrollment cards are available in the Human Resources Office.

Earnings statements are sent to employees in campus mail whenever possible. Employees are requested to report any questions concerning their statement to the payroll clerk. Prompt attention will be given.

3. PAYROLL DEDUCTIONS

The College must withhold Federal and State Income Tax from the employee's earnings. At the beginning of employment, or at any time there is a change in the number of dependents claimed for exemption, an Employee Withholding Exemption Certificate (W-4) must be completed in the office of the payroll clerk.

Upon employment the employee will also be required to fill out an I-9 form that establishes eligibility to work in the United States.

The money deducted from earnings for Withholding Tax is remitted to the Department of Internal Revenue. In January a W-2 statement is issued to each employee showing the total amount of wages earned the previous calendar year, as well as the total amount withheld for taxes.

All employees, except students, are subject to FICA tax deductions. The College is subject to tax in like amount. Congress has provided that this tax will be increased periodically. Additional deductions may be made for dependents' medical, for employee's portion and dependents' dental and vision insurance premiums, flexible spending accounts for medical and/or dependent care, optional life insurance, retirement, auto and homeowners insurance, pledges, rent (if living in college housing), and other items as requested.

4. SOCIAL SECURITY - MEDICARE

The College is required to participate in the Federal Social Security Program. All employees are subject to a tax deducted each pay period from salaries. The College is subject to tax in like amount. The benefits are in addition to those provided by the College retirement plan.

The wage basis for the two parts of the Social Security tax (Social Security and Medicare) are different. Employers can no longer combine and report the withholding as a single amount. Since 1991 employers have been required to separately report withholding for Social Security and Medicare.

The wage basis changes annually (for questions or current year's basis contact the Payroll Office). For Social Security, the tax rate is 6.2 percent each for the employers and employees. For Medicare, the rate is 1.45 percent each for employers and employees.

5. WORK WEEK

The normal workday is 7.75 hours and the normal workweek is 38.75 hours. However, salaries of all non-exempt employees are computed and paid for based on a 40-hour workweek. On occasion certain departments may require overtime.

6. INSTITUTIONAL HOLIDAYS

The following days are institutional holidays for which all full-time employees are paid and excused from regular duties, except those who may be needed for emergencies or unusual circumstances:

New Year's Day                              Fourth of July (one working day)

Easter (one working day)               Labor Day (one working day)

Memorial Day (one working day)    Thanksgiving (two working days)

Christmas (five working days-see below)

Part-time regular employees who work at least 20 hours per week are granted time off in accordance with hours regularly worked that day.

The office schedule for the Christmas and New Year's holidays is flexible and published each fall at the discretion of the President.

If a non-exempt employee must work on a paid holiday, that employee will be paid double time for that day or will be given compensatory time off during the same week as the paid holiday.

7. OVERTIME AND COMPENSATORY TIME FOR NON-EXEMPT EMPLOYEES

a. OVERTIME

Simpson College employees are covered by the Federal Fair Labor Standards Act (FLSA). FLSA guidelines state that only hours an employee actually works count toward the 40-hour workweek test for overtime. Time during which an employee does not perform services, but may be time compensated such as vacation or ill time, does not count toward calculation of overtime hours. For example: an individual is paid for 48 hours, eight of which are ill time, no overtime is due because the employee did not actually work more than 40 hours. Overtime compensation adjustments will take place only after an employee has worked 40 hours in a given week, not after the 38.75.

Overtime compensation is to be utilized only in cases of direct and prior approval by the appropriate supervisor and is to be avoided in all cases, except in emergency situations. Overtime utilization will be reviewed by the Vice President for Business and Finance.

Overtime hours worked through the 20th of the month must be turned into the payroll department by the 21st to be paid in the month actually worked. Any overtime hours worked after the 20th of each month will be paid the following month.

b. GUIDELINES CONCERNING COMPENSATORY TIME

If an employee is required to work beyond 38.75 hours, the department head should make every effort to arrange compensatory time during the same workweek.

1) All compensatory time must be approved by the supervisor.

2) Compensatory time must be used during the same pay week it is earned. Employees are given one hour of compensatory time for every one hour of overtime hour worked.

8. TRAVEL TRAINING POLICY

In the course of employment an employee may be asked to attend training or educational classes that would not only enhance their skills and abilities, but also be necessary for the continued satisfactory performance of his or her job. An example would include computer training needed with the implementation of a new system. Such classes or training may require an employee to travel and attend seminars for a period longer than the normal 8-hour workday. Travel time and attendance at seminar sessions will be considered time at work. In such situations, the non-exempt employee and supervisor must determine the number of hours by which the employee's hours worked will exceed eight hours. Items such as banquets, social hours or receptions not required to complete the program or for certification, but which are included in the days' events are strictly voluntary and attendance will not be counted as time at work. Employees are, however, welcome to attend for their own pleasure. Where training and travel time result in a number of hours worked in the workday which exceeds eight hours, the supervisor may rearrange the non-exempt employee's schedule within the same workweek by reducing the number of hours worked on an alternative workday by an amount equal to the hours, or seek approval from the employee's divisional vice president for overtime hours. This information should then be communicated to human resources and the payroll clerk on the employee's monthly timesheet.

9. BEREAVEMENT TIME

A regular employee is eligible to take paid time off in the event of a death for both immediate and extended family members.

You may be excused with pay for up to five working days in the event of the death of an immediate family member.

Immediate family is defined as the mother, father, spouse/domestic partner, son, daughter, foster child, brother or sister of the employee.

You may be excused with pay for up to three working days in the event of the death of a grandparent, mother or father-in-law, sister or brother-in-law and daughter or son-in-law.

Requests to attend funerals of other relatives or friends will be given consideration by the employee's supervisor and, if possible, will be granted, as vacation or time without pay.

Approved by Cabinet September 5, 2006
Implementation Date: October 1, 2006

10. DEATH OF AN EMPLOYEE

In the event of the death of an individual while employed by the College, his/her estate shall be paid his/her salary for the month (1/12 annual salary) in which the death occurred and two additional months. This amount is in addition to any Social Security and other insurance benefits.

If a full-time employee who has served the College for at least six consecutive years dies while under contract to the College, the spouse and children of that employee are guaranteed the same tuition remission benefit that they would have received if the deceased had continued his/her employment at the College.


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Compensation 1. PAY PERIODS All college employees, except student employees, are paid on the last working day of each month. Non-exempt employees must submit a payroll time report on the first working day of each month for the previous month. Exempt employees submit a vacation and sick leave report by the tenth of the month for the previous month to their divisional vice president. Employees submit completed payroll reports to their supervisors for approval. The reports are then forwarded to the payroll clerk. Approved payroll reports must be to the payroll clerk by 9:00 a.m. on the 20th of the month. 2. EARNINGS DEPOSIT On payday, the last working day of each month, employees receive an earnings statement detailing gross pay, deductions, and net pay. Employees have the option to elect automatic deposit to any checking and/or savings account at any financial institution or to receive an actual check for deposit. The Service Credit Union located in Ames, with branches in Des Moines is available to all employees for direct deposit. Information and enrollment cards are available in the Human Resources Office. Earnings statements are sent to employees in campus mail whenever possible. Employees are requested to report any questions concerning their statement to the payroll clerk. Prompt attention will be given. 3. PAYROLL DEDUCTIONS The College must withhold Federal and State Income Tax from the employee's earnings. At the beginning of employment, or at any time there is a change in the number of dependents claimed for exemption, an Employee Withholding Exemption Certificate (W-4) must be completed in the office of the payroll clerk. Upon employment the employee will also be required to fill out an I-9 form that establishes eligibility to work in the United States. The money deducted from earnings for Withholding Tax is remitted to the Department of Internal Revenue. In January a W-2 statement is issued to each employee showing the total amount of wages earned the previous calendar year, as well as the total amount withheld for taxes. All employees, except students, are subject to FICA tax deductions. The College is subject to tax in like amount. Congress has provided that this tax will be increased periodically. Additional deductions may be made for dependents' medical, for employee's portion and dependents' dental and vision insurance premiums, flexible spending accounts for medical and/or dependent care, optional life insurance, retirement, auto and homeowners insurance, pledges, rent (if living in college housing), and other items as requested. 4. SOCIAL SECURITY - MEDICARE The College is required to participate in the Federal Social Security Program. All employees are subject to a tax deducted each pay period from salaries. The College is subject to tax in like amount. The benefits are in addition to those provided by the College retirement plan. The wage basis for the two parts of the Social Security tax (Social Security and Medicare) are different. Employers can no longer combine and report the withholding as a single amount. Since 1991 employers have been required to separately report withholding for Social Security and Medicare. The wage basis changes annually (for questions or current year's basis contact the Payroll Office). For Social Security, the tax rate is 6.2 percent each for the employers and employees. For Medicare, the rate is 1.45 percent each for employers and employees. 5. WORK WEEK The normal workday is 7.75 hours and the normal workweek is 38.75 hours. However, salaries of all non-exempt employees are computed and paid for based on a 40-hour workweek. On occasion certain departments may require overtime. 6. INSTITUTIONAL HOLIDAYS The following days are institutional holidays for which all full-time employees are paid and excused from regular duties, except those who may be needed for emergencies or unusual circumstances: New Year's Day Fourth of July (one working day) Easter (one working day) Labor Day (one working day) Memorial Day (one working day) Thanksgiving (two working days) Christmas (five working days-see below) Part-time regular employees who work at least 20 hours per week are granted time off in accordance with hours regularly worked that day. The office schedule for the Christmas and New Year's holidays is flexible and published each fall at the discretion of the President. If a non-exempt employee must work on a paid holiday, that employee will be paid double time for that day or will be given compensatory time off during the same week as the paid holiday. 7. OVERTIME AND COMPENSATORY TIME FOR NON-EXEMPT EMPLOYEES a. OVERTIME Simpson College employees are covered by the Federal Fair Labor Standards Act (FLSA). FLSA guidelines state that only hours an employee actually works count toward the 40-hour workweek test for overtime. Time during which an employee does not perform services, but may be time compensated such as vacation or ill time, does not count toward calculation of overtime hours. For example: an individual is paid for 48 hours, eight of which are ill time, no overtime is due because the employee did not actually work more than 40 hours. Overtime compensation adjustments will take place only after an employee has worked 40 hours in a given week, not after the 38.75. Overtime compensation is to be utilized only in cases of direct and prior approval by the appropriate supervisor and is to be avoided in all cases, except in emergency situations. Overtime utilization will be reviewed by the Vice President for Business and Finance. Overtime hours worked through the 20th of the month must be turned into the payroll department by the 21st to be paid in the month actually worked. Any overtime hours worked after the 20th of each month will be paid the following month. b. GUIDELINES CONCERNING COMPENSATORY TIME If an employee is required to work beyond 38.75 hours, the department head should make every effort to arrange compensatory time during the same workweek. 1) All compensatory time must be approved by the supervisor. 2) Compensatory time must be used during the same pay week it is earned. Employees are given one hour of compensatory time for every one hour of overtime hour worked. 8. TRAVEL TRAINING POLICY In the course of employment an employee may be asked to attend training or educational classes that would not only enhance their skills and abilities, but also be necessary for the continued satisfactory performance of his or her job. An example would include computer training needed with the implementation of a new system. Such classes or training may require an employee to travel and attend seminars for a period longer than the normal 8-hour workday. Travel time and attendance at seminar sessions will be considered time at work. In such situations, the non-exempt employee and supervisor must determine the number of hours by which the employee's hours worked will exceed eight hours. Items such as banquets, social hours or receptions not required to complete the program or for certification, but which are included in the days' events are strictly voluntary and attendance will not be counted as time at work. Employees are, however, welcome to attend for their own pleasure. Where training and travel time result in a number of hours worked in the workday which exceeds eight hours, the supervisor may rearrange the non-exempt employee's schedule within the same workweek by reducing the number of hours worked on an alternative workday by an amount equal to the hours, or seek approval from the employee's divisional vice president for overtime hours. This information should then be communicated to human resources and the payroll clerk on the employee's monthly timesheet. 9. BEREAVEMENT TIME A regular employee is eligible to take paid time off in the event of a death for both immediate and extended family members. You may be excused with pay for up to five working days in the event of the death of an immediate family member. Immediate family is defined as the mother, father, spouse/domestic partner, son, daughter, foster child, brother or sister of the employee. You may be excused with pay for up to three working days in the event of the death of a grandparent, mother or father-in-law, sister or brother-in-law and daughter or son-in-law. Requests to attend funerals of other relatives or friends will be given consideration by the employee's supervisor and, if possible, will be granted, as vacation or time without pay. Approved by Cabinet September 5, 2006 Implementation Date: October 1, 2006 10. DEATH OF AN EMPLOYEE In the event of the death of an individual while employed by the College, his/her estate shall be paid his/her salary for the month (1/12 annual salary) in which the death occurred and two additional months. This amount is in addition to any Social Security and other insurance benefits. If a full-time employee who has served the College for at least six consecutive years dies while under contract to the College, the spouse and children of that employee are guaranteed the same tuition remission benefit that they would have received if the deceased had continued his/her employment at the College.
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