This article should guide employees on our standard payroll processing and explain what they can expect in terms of receiving their semi-monthly paychecks.

centrexIT strives to pay all employees accurately, timely and fairly, following all federal, state and local laws and regulations. Privacy and security are of paramount importance when processing payroll and addressing any payroll questions and concerns internally and externally. Access to payroll records is limited to Paylocity administrators and the Paylocity Payroll Clerk. Payroll is processed in Paylocity by the accounting department. Employees make their own changes in Paylocity Self Service for address, banking and tax updates.

If an employee believes that an error has been made on their paycheck, they should immediately report it to the accounting department. If an error is made, it will be corrected on the next available payroll or through a separate payroll. Payroll is processed with enough time built into the process, to accommodate minor Paylocity, centrexIT, or internet outages. A BCP has been created and is in the process of being documented.

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Payment Schedule (Pay Periods and Paydays):

centrexIT pays all employees semi-monthly, on the 15th and last business day of each month. If either of these paydays falls on a weekend or banking holiday, the payday will be the preceding business day. The pay periods are: • 25th – 9th, payable on the following 15th of the month

• 10th - 24th, payable on the following last business day of the month

The workweek is 12:00 am Monday – 11:59 pm Sunday

Payment Methods:

While voluntary, centrexIT attempts to pay employees via direct deposit into a bank account designated by the employee, complying with state and federal laws where necessary.

Timekeeping:

centrexIT uses Paylocity for non-exempt hourly employee timekeeping, using the Paylocity mobile and desktop apps. Employees are responsible for completing their own timesheets. At the end of each pay-period, employees review their timecards for accuracy, then approve their timecards. Respective employee supervisors are then responsible for approving their teams’ timecards. It is against company policy to falsify time records and may lead to disciplinary action. Exempt employees should only record time off from work, including PTO and sick time. Exempt employees are not eligible for overtime. Wages:

• Non-exempt employees are paid for hours on their approved timesheets at an agreed rate equal to or greater than minimum wage, complying with all federal and state minimum wage requirements. • Exempt employees are paid an agreed upon annual salary in equal semi-monthly payments. • A primary on-call stipend of $150 and a backup on-call stipend of $50 are paid to employees working before or after normal business hours according to the posted on-call schedule.

• Discretionary bonuses may be paid to employees at any time at the judgement of company leadership. • Non-discretionary bonuses or commissions may be paid to employees and are agreed upon in a separate compensation plan. • Client and employee referral bonuses may be awarded to employees according to the referIT policy. • California meal premium penalties are paid according to California state labor laws and are tracked in Paylocity on individual timesheets based on time punches.

• A cellphone reimbursement of $40/pay-period and home internet reimbursement of $10/pay-period are allotted to all employees.

Overtime:

Overtime is paid to all non-exempt employees according to FLSA and state laws and regulations and tracked on individual employee timecards in Paylocity. Overtime pay is calculated according to FLSA and state laws and regulations. Overtime should be pre-approved by supervisors, unless it is worked during scheduled on-call duty.

Deductions:

Paycheck deductions include the following:

• Federal, state, and local taxes according to regulations, including but not limited to federal, state, and local withholding, Medicare, Social Security, state disability insurance

o Withholding taxes are based on employee elections when filling out the required federal W-4 form and state withholding form

• Voluntary benefits including medical, dental, vision, Voluntary Life/AD&D, and 401k

    o   These voluntary deductions may be pre-tax or post-tax based on regulatory guidelines

• centrexIT will support and deduct for wage garnishments and child support according to state and federal garnishment and child support orders as required by law and will inform employees when these orders are received Final Checks:

Final paychecks will include all known and due wages, plus unused PTO, at the time of separation. Deductions on final paychecks include all applicable taxes, garnishments child support, voluntary 401k, and voluntary health deductions. Voluntary terminations may request to receive their final paycheck via direct deposit, if requested in writing, and will receive it on their final workday if the appropriate regulatory notice is given to centrexIT. Involuntary terminations will have their final paycheck sent overnight delivery on the day of separation and will include an extra 8 hours of pay to account for delivery time. All final paychecks will be paid in accordance with federal, state and local laws. Any substantiated employee expense reimbursements will be paid on a separate check when known by the accounting department.

• EXTERNAL only – i.e., industry best practices, CIS18, this is not for cIT internal references

1. FLSA: Fair Labor Standards Act which establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

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