Payroll Standard Operating Procedure 15.0: Off-Cycle Processing Fees

Subject: Off-Cycle Processing Fees

Source: Financial Management Services

Original Date of Issue: October 2016

Date of Last Revision: August 2017

Rationale: University Payroll is authorized to collect processing fees from departments on certain transactions that result in additional work outside of the normal on-cycle payroll process. This SOP sets the fees associated with processing off-cycle payments and online checks.

Procedure

Off-Cycle Payment Fee: $55 per transaction.

Online Check Fee: $85 per transaction.

University Payroll will assess processing fees against the organizational account on which the payroll payment is made. Because this fee is not allowed on contract and grant accounts, an appropriate departmental continuation account will be assessed for processing fees associated with off-cycle payroll payments when an employee is paid through a contract and grant account.

Fee Waivers: University Payroll will not charge a processing fee in the following circumstances:

  • Stop payments and immediate reissue of checks that have been lost, stolen, or mutilated;
  • Direct deposit returns initiated by the employee’s financial institution;
  • Involuntary termination of employment (such as a reduction in force (RIF) or involuntary separation); and
  • Other circumstances determined appropriate by University Payroll, such as special payments needed for regulatory or tax compliance, payments needed due to University Payroll mistakes or oversights, and gross-ups of off-cycle direct deposits.

If you wish to have the processing fee for transactions other than these waived, you must document the reason for the request and submit it to the FMS Payroll Director for review, and, if appropriate, approval.


Cross Reference: Timing of Payments and Off-Cycle Payroll, FIN-PAY-030

Responsible Organization: Financial Management Services