Submit Payments to Workers

Policy:

F/EA pays workers, withholds and calculates applicable workers and employer taxes and files and deposits taxes with applicable government agencies.
F/EA ensures that all workers have been properly paid by performing a weekly reconciliation of the payroll edit register.
F/EA pays workers and vendors via one of two methods: by paper check mailed to the <<workers or vendor>> or by direct deposit into the workers or vendor's authorized bank account.
Each check includes the F/EA Chief Financial Officer’s (CFO) signature on the check. The Chief Financial Officer is one of two signatories on the program bank account, with the <<Staff Title>>. The F/EA maintains the CFO signature block image in a password protected, secured location within the F/EA's check writing software. Only authorized F/EA staff have access to the signature block image.
A remittance advice is submitted with every payment. If the workers or vendor is paid by paper check, the remittance advice is included in the envelope with the paper check. If the workers or vendor is paid by direct deposit, the remittance advice is <<mailed or emailed>> to the workers or vendor separately. Each remittance advice includes the following information:

Consumer who received services
Gross wages this pay period
Gross wages year-to-date
Net wages this pay period
Net wages year-to-date
Federal income tax withheld this pay period
Federal income tax withheld year-to-date
Social Security tax withheld this pay period
Social Security tax withheld year-to-date
Medicare tax withheld this pay period
Medicare tax withheld year-to-date
Earned Income Credit this pay period
Earned Income Credit year-to-date
Other deductions (itemized) this pay period
Other deductions (itemized) year-to-date

Procedure:

<<Insert Process to do the following>>

-Print checks with the applicable check date

-Get signature on checks

-Print remittance advices with checks

-Verify addresses on checks/envelopes

-Stuff checks/remittance advices in envelopes

-Mail checks with postage date on or before published pay day

-Create electronic funds bank file for direct deposits

-Upload electronic funds file to F/EA bank

-Manage "pre-notes" as needed

-Get confirmation that direct deposits have been accepted

-Mail/email remittance advices for direct deposits

-Store check information

Internal Controls:

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

<<Insert internal controls depending on process>>
F/EA Payroll Department reconciles payroll account to ensure that accurate payments are debited from the account
Chief Financial Officer is one of two signatories on the program bank account (with Executive Director)
- F/EA maintains Chief Financial Officer signature block for checks in a password protected, secure location
- Only authorized staff have access to Chief Financial Officer signature block
On a quarterly basis Quality Assurance Coordinator contacts a random sample of 25 workers/vendors to inquire if they regularly received a remittance advice with their payments
- F/EA Quality Assurance Coordinator completes a findings control document and submits to <<Staff Title>> for review and signature
- Corrective action plan developed and implemented based on findings