9. Electronic Timekeeping
Exception Time
Sick Time
Vacation Time
Etc.
Manager Self Services
Absence Management (2013)
10. Electronic Timekeeping
Tracking Time
Decentralized?
Home Grown?
Kronos?
One-Card System
11. Human Resources Council (HRC)
Retirement/FICA Changes SOCIAL SECURITY
January 1, 2012
Payroll Changes Impacting Employee Take Home Pay
NDPERS/TIAA-CREF Meeting
The one-year payroll tax holiday created under The Tax Relief, Unemployment Insurance
Reauthorization, and Job Creation Act of 2010 expires on December 31, 2011.
As an employee in calendar year 2011 your payroll tax contributions were reduced:
From: 6.2%
Lessened by 2% for wages up to $106,800
October 12th – Skoal Room
To: 4.2%
Beginning January 1, 2012, employee contributions for Social Security will once again be 6.2%.
Note: On September 8, 2011 the American Jobs Act of 2011 was proposed by President Obama. If
passed, the employee Social Security tax rate will be reduced to 3.1% for calendar year 2012.
RETIREMENT
The 2011 North Dakota Legislative Assembly passed legislation and provided funding to increase
retirement plan contributions for all state employees by:
Veteran’s Preference
o 2% on January 1, 2012, and 2% on January 1, 2013.
o Of the annual 2% increase, 1% to be paid by the employee and 1% paid by the employer.
NDPERS
Employer
Employee
2011
9.26%
0.00%
2012
10.26%
1.00%
2013
11.26%
2.00%
Absolute Preference TIAA-CREF
Years of Service
Employer
0-2
4.50%
2011
2-10
9.50%
10+
10.00%
0-2
5.50%
2012
2-10 10+
10.50% 11.00%
0-2
6.50%
2013
2-10 10+
11.50% 12.00%
Number Interviewed
Employee 0.50% 1.50% 2.00% 1.50% 2.50% 3.00% 2.50% 3.50% 4.00%
Both PERS and TIAA-CREF plan participants benefit from this change.
Employee contributions will be deducted on a pre-tax basis, reducing the employee’s federal and
state taxable gross income and income tax withholding.
There was no sunset clause (ending period) in this legislation, so pending additional legislation it is
anticipated these retirement increases will be ongoing.
SUMMARY
Honor Guard
Beginning January 1, 2012 a total of 3% of employee take home pay will be redirected to Social Security (2%)
and retirement (1% employee contribution). Beginning January 1, 2013 an additional 1% of employee take-
home pay will be redirected to retirement (1% employee contribution).
Employer retirement contributions will also increase by 1% in calendar year 2012 and another 1% in 2013.
Both the employee and employer retirement contributions will be set aside on the employee’s behalf for
24 working hours of leave
retirement purposes.
Strongly encouraged
HDHP Health Plan
All Employees
October 20th Meeting – Vangstad Auditorium
I had another conversation with Mick Pytlik:Mick will send me contacts for NDUS Kronos licensing and CND integration. Contrary to my previous message, NDUS has a Kronos license. NDSU and UND are using Kronos for time clock. Mick was not positive, but he did not think NDSU or UND are using Kronos for “exception” time (leave) reporting. Mick said manager self-service has been approved. Absence management [same thing as “exception” time (leave) reporting] has not been approved or scheduled. I trust Mick will correct me, if this is not all accurate… There is functionality in CND to delegate and distribute the input of “exception” time (leave) reporting. Derek had done some checking on that previously and thought that was not a good fit for VCSU. This simply distributes the input work to more people, thereby requiring more training and oversight for those doing the input which will probably be less efficient for VCSU. There is also a need to have the supervisor approval on file for audit purposes and the distributed model will make the audit response more difficult. It seems the only reason to distribute the input is if the size of the organization does not lend itself to a central input method. Possible next steps (let me know if you agree or have other suggestions)Once we get contact info from Mick, we will pursue questions and a possible meeting to determine the feasibility of Kronos.We need to see pricing for Kronos licensing and user input devices for the time clock function. Kronos will need the number of employees this will involve and the minimum number of time clock devices we need. Derek??? We may need to wait to do anything with Kronos until after we select a one card vendor - however I am not certain of the dependency here: 1) Is there a Kronos time clock that uses proximity cards, 2) If there is a Kronos time clock that uses Proximity cards, does Kronos work with all of the vendors we are considering for one card systems. Depending on the answers to 1 and 2, we could reconsider the timeline for implementation of Kronos in relation to the implementation of a one card system.Kronos may also have “exception” time (leave) reporting functionality and we need to look into that further.
