POLICY

VERNON TOWNSHIP

BOARD OF EDUCATION

 

FINANCES

6520/Page 1 of 2

Payroll Deductions

Apr 05

Sept 16

 

 

6520  PAYROLL DEDUCTIONS

 

The Board of Education shall, in accordance with law or employee authorization, make deductions from an employee’s paycheck and remit the amounts deducted to the agent designated by the employee.

 

Deductions will routinely be made as required for federal income tax, social security and Medicare; New Jersey income tax, unemployment assistance, and other miscellaneous taxes; and by the New Jersey Division of Pensions.

 

Deductions may also be made, provided they have been duly authorized by the employee in writing, for contributions on the employee’s behalf for:

 

  1. The payment of premiums for group life, accidental death or dismemberment, hospitalization, medical, surgical, major medical, health and accident, and legal insurance plans, N.J.S.A. 18A:16-13;

 

  1. Tax sheltered annuities or custodial accounts, N.J.S.A. 18A:66-127;

 

  1. An approved charitable fund raising campaign, N.J.S.A. 52:14-15.9c; and

 

  1. Bona fide organizational dues,

N.J.S.A. 52:14-15.9e.

 

Contributions shall be made as soon as is reasonably possible after the funds have been deducted from an employee’s salary.  No contribution shall be made on behalf of an employee until the amount contributed has been deducted from the employee’s salary.

 

 

The Board will permit the remittance of funds for annuities and mutual funds only to those insurers and custodial accounts authorized by law and expressly approved by this Board.

 

The Board will consider the approval of only those insurers and custodial accounts to which fifteen or more employees of this district subscribe.  Employees subscribing to specific tax shelter plans as of November 1, 2008 will be grandfathered even if the number of employees subscribed is less than fifteen.

 

 

FINANCES

6520/page 2 of 2

Payroll Deductions

 

If the number of subscribers falls below that number, no new subscribers will be allowed and the account will be terminated when all remaining subscribers have closed their accounts.

 

An employee who wishes to pay into a tax sheltered annuity or mutual fund offered by a firm not approved by this Board for payroll deductions must make his/her payment individually.

 

No Board employee shall withhold or pay to another or purchase or have assigned, other than by court order, any compensation for the services rendered by an employee of this district.

 

 

N.J.S.A.       18A:16-9; 18A:66-19; 18A:66-30; 18A:66-78;

18A:66-128

N.J.S.A.       43:3C-9

N.J.S.A.       52:14-15.9; 52:18A-107 et seq.

N.J.S.A.       54:8A-9

N.J.A.C.       6:20-2A.7; 6:20-2A.9

 

 

 

Adopted:         21 April 2005

Revised:          September 2016