Policy Approval Authority | President |
Responsible Division | Human Resources Services |
Responsible Officer(s) | Chief Human Resources Officer |
Contact Person | John Acardo |
Primary Audience |
Faculty
Staff |
Status | Active |
Last Review Date | 07-29-2009 |
Policy Category/Categories |
Human Resources / Employment
|
It is the policy of the university to compensate all employees in accordance with state and federal laws, applicable documentation, and university transaction approval procedures.
Employees should not be compensated for any work, nor provided any fringe benefits unless appropriate and prior authorizations are obtained and confirmed by Human Resource Services (HRS). All compensation provided employees must translate to a legitimate documented work activity. Therefore, all payments of salary, additional compensation, overtime, supplemental pay, compensatory release time “comp time,” sick leave, vacation leave, and other forms of employee compensation (including fringe benefits) must adhere to established payroll procedures.
The Internal Revenue Service (IRS) requires fringe benefits to be included in employee earnings and proper taxation applied with limited exceptions. These benefits are outlined in IRS publication 15b Employer’s Tax Guide to Fringe Benefits. The necessity of maintaining strict compliance with applicable sections of the Internal Revenue Code requires that benefits and compensation be thoroughly reviewed and approved within the context of university policies. When approved, a payroll procedure exists to assure inclusion of fringe benefit earnings in the employee’s reportable income. Departments seeking to provide employees with taxable fringe benefits, not specifically authorized as part of NIU’s existing salary and benefit package, should consult with the HRS Payroll Office and secure appropriate divisional approval. Divisional/HRS consultations and approvals will be required prior to granting of the fringe benefit.
Human Resource Services encourages all departments to provide employees with the best possible working environment. However, departments are required to discuss any new or creative means of rewarding employees with Human Resource Services before making any plans or commitments.
Policy Library
815-753-5560
policy-library@niu.edu
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