Payroll Deduction Gift Processing (IA6)

SUBJECT:
Payroll Deduction Gift Processing

PURPOSE:
To establish protocol for processing gifts made by employees through payroll deduction.

POLICY:
Employees may use the convenience of payroll deduction to make a charitable gift to the university. Development, Human Resources and Accounting Services will coordinate the process to ensure clear communication and proper documentation.

A. Development will provide payroll deduction forms to employees who wish to make a payroll deduction gift. The employee will complete and sign the form authorizing a new or replacement payroll deduction, and return the form to Development.

B. Once it is determined the form contains all necessary information and the gift restrictions are acceptable, Development will distribute signed copies of the form to the donor and Human Resources.

C. Human Resources will activate the payroll deduction.

D. Development will record restricted deductions as a pledge for either the time specified, or until the end of the fiscal year if the deduction is authorized “until further notice.” Continuing restricted payroll deductions will be updated annually at the beginning of each fiscal year. Unrestricted payroll deductions will not be recorded as a pledge, and will be processed as outright gifts.

E. Twice per year, January and June, Development will run reports to pull the needed data to process the payroll gifts for the previous 5 or 7 month period.

1. From the CARS main menu, go to Utility menu, GC Tools Menu, Run a command/script; type in payroll_deduction_report. Enter the beginning payroll date and the ending payroll date in the prompts. When the report finishes you will receive 2 emails. One will contain the accounting side report and the other will have the reports from the HR side.

2. Development will notify Accounting of the total amount to be processed. If the amount agrees with the amount of their report, Accounting will begin the AC journal process and notify the gift processor of the AC journal number.

3. Development will process the gifts and receipt the donors.