Payroll Deductions

I. Policy Title: Payroll Deductions

II. Who does this policy affect?

All employees of the College

III. Purpose

The Board of Trustees authorizes in accordance with the provisions of law cited herein that deductions be made from an employee's paycheck upon proper authorization of the appropriate form.

IV. Policy Statement

Deductions may be voluntary or involuntary for purposes including, but not limited to the following;
1. Federal and state income tax;
2. Social Security and Medicare;
3. Public School Employees Retirement System;
4. Michigan Public School Employment Retirement System (MPSERS) Tax Deferred Payment (TDP) Plan;
5. Section 125 deductions (cafeteria plans);
6. Contributions to charitable corporations, not-for-profit and community fund organizations;
7. Payment of dues to labor or other organizations;
8. Payment of group insurance premiums;
9. Writ of garnishment;
10. Bankruptcy;
11. Employer-Sponsored retirement plans

The Board declares its willingness to enter into a 403(b) retirement agreement with eligible employees whereby the employee agrees to take a reduction in salary with respect to amounts earned after the effective date of such agreement in return for the Board's agreement to use a corresponding amount to purchase an annuity for such employee (or group of employees desiring the same annuity company) from any company authorized to transact the business as specified in law in accordance with Section 403(b) of the Internal Revenue Code, and in accordance with the District's administrative guidelines. However, it shall be clearly understood that the Board's only function shall be the deduction and remittance of employee funds.

Said agreement shall comply with all of the provisions of law and may be terminated as said law provides upon notice in writing by either party. Employees who are eligible shall notify the Payroll Office either in writing, or through benefit enrollment, if they wish to participate in such a program.

V. Definitions
N/A

VI. Responsible Party for Policy Interpretation/Review
Board of Trustees
Vice President of Financial Services

VII. Related Documents

MCL 380.1224, 380.1255

VIII. Policy History:
a. Adopted by Board: July 26, 1999
b. Previous Policy Section: Finances; Previous Policy No. 2570

Reviewed/Updated

January 16, 2024 – Approved by Board of Trustees – placed in policy format with minor changes.

December 11, 2023 – Reviewed by Policy Committee

This policy supersedes and replaces any and all past policies related to this subject