1109 - University of North Carolina at Chapel Hill Policy on Non-Statutory Deductions

Introduction

Purpose

The University presents specific guidelines for activating non-statutory deductions within this policy in its efforts to diligently track records of financial withholding and disallowing payroll deductions unless authorized as an approved deduction.

Scope

All University of North Carolina at Chapel Hill employees receiving compensation through Payroll Services.

Policy

Policy Statement

Payroll Services will make approved non-statutory (not required by law) payroll deductions and salary reductions only when such requests are submitted through the ConnectCarolina HR/Payroll benefits module. The Human Resources Benefits Program will be responsible for verification of eligibility and for processing through the benefits module. Garnishments and child support will also be made from employee's wages and handled through Payroll Services.

Non-Statutory Deductions for University Departments or Units

University departments may use payroll deduction to pay for University-provided products or services that are approved for payroll deduction as described in this policy. Departments must provide information on price discounts and other program features to facilitate the review of any tax implications.  Departments need to request the Program Deduction Request Form from Payroll and submit this information via email to Payroll@unc.edu.

Departments wishing to offer this payment method will be responsible for information submission and retention, as well as administration of the deduction program. In order to qualify for payroll deduction under this program, the following criteria must be met:

  • The payment request must be for a University service or product that all faculty and staff are eligible to purchase;
  • The total cost of the product or service deduction must be a minimum of $75 and the duration of the deduction at least three months; and
  • A minimum of 50 employees must elect the payroll deduction option.

A department meeting these criteria must obtain program approval through appropriate departments, schools, and division channels, and obtain a legal review from the Office of University Counsel. Once approvals have been received, contact the Director of Payroll Services to establish the payroll deduction program.

Payroll Services will create a deduction code that is associated with a ConnectCarolina fund source that will be used to record the deducted amounts. The department should provide the following information to Payroll Services (e.g., Excel spreadsheet) provided on a mutually established timeline:

  • Employee name and social security number;
  • Total Deduction Amount and Amount of Deduction per Employee, per Pay Period;
  • Beginning and Ending Dates of Deduction;
  • Employees' Pay Cycles (monthly or biweekly); and
  • Deduction Code (provided by Payroll Services).

Pre-Tax Parking Deductions

The University offers all permanent full-time employees the option to purchase parking permits on a pre-tax basis, through submission of a completed pre-tax form issued annually by UNC Transportation and Parking and distributed by the departmental parking coordinator for signatures and updates. Parking deductions are submitted and maintained by UNC Transportation and Parking. Deductions are calculated from a scale based on annual salary.

Exceptions

None.

Additional Information

Special Situations

None.

Frequently Asked Questions

None.

Non-Statutory Deductions

The following are among common types of non-statutory deductions:

  • Accidental Death and Dismemberment Insurance
  • Auto and Homeowners Insurance
  • Deferred Compensation Plan 457
  • Dental Insurance
  • Dependent Care Assistance Plan
  • Disability Income
  • Group Life Insurance
  • Health Spending Account Plan
  • Hospital and Medical Insurance Program
  • Liability Insurance
  • NC FLEX PROGRAM
  • Savings Bonds
  • State Employee Credit Union
  • Supplemental Retirement Income Plan of North Carolina 401-k
  • Tax-sheltered Annuity 403-b

More information on non-statutory deductions is available at these sites:

Contact Information

Policy Contact
Subject Contact Telephone Fax E-Mail
Statutory Deductions Payroll Services 919-962-0047   payroll@unc.edu

History

Revised:

  • March 31, 2023: Added Payroll Deduction Request Form language
  • October 13, 2017: Updated Payroll main phone number.
  • October 1, 2014: Updated information on module used for deductions.
  • July 7, 2010
  • May 29, 2007
  • May 26, 2005
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Details

Article ID: 131381
Created
Thu 4/8/21 9:07 PM
Modified
Tue 4/11/23 10:51 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Finance and Budget
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Director of Payroll Services
Policy Contact
Person who handles document management. Best person to contact for information about this policy. In many cases this is not the Issuing Officer. It may be the Policy Liaison, or another staff member.
Next Review
Date on which the next document review is due.
04/13/2026 12:00 AM
Last Review
Date on which the most recent document review was completed.
04/10/2023 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
04/10/2023 12:00 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
10/13/2017 12:00 AM
Origination
Date on which the original version of this document was first made official.
01/09/2004 12:00 AM