NAVIGATING THE MAZE OF NEW HIRE PAPERWORK

PRESENTED BY:

Tom BeerheideSunset Ridge School District 29, Northfield, ILDirect Line: 847-881-9460Email: beerheit@sunset.k12.il.us

Illinois ASBO 13th Annual Educational Support Professionals’ Conference

December 2, 2005

Why a Checklist?

Record keeping Tracking purposes Quick reference guide Helps create a smooth first

day experience for both the new employee and the district’s departments

Eliminates duplication of tasks

A New Employee - Where to Begin?

Employment application should be completed by new employee if not already done so

Resume and transcript(s) should be on file (typically necessary for Board Packet)

Copy of Social Security card or Driver’s License (preferably both)

New Hire Form

Employee’s Full Name Date Hired/Started Address and important

telephone numbers Social Security No. Date of Birth Position Full Time Equivalent (FTE) Location Salary/Rate of Pay

(This form can be substituted and used as a Change of Status form also)

Form W-4

Make sure employee has signed and dated the form

If Marital Status is not indicated – withhold at the Single rate

If no W-4 is submitted, withhold at single, zero

Employer must keep copy on file

(See IRS Publication 505 for more details on tax withholding and form W-4)

Form W-4 Cont.

An employee can claim exemption if both of the following situations apply: For 2005 employee had right to refund of all FIT

withheld because he/she had no tax liability For 2006 employee expects a refund of all FIT

withheld because he/she expects to have no tax liability

An exemption is good for only 1 year. Employee must submit a new W-4 by February 15th of following year to continue exemption

Form W-4 Cont.

No longer required to send copies of questionable W-4’s however, they are still subject to review if directed to do so in a written notice by the IRS. (i.e. claiming 10 allowances, etc.)

Do not tell an employee what to claim only advise

Refer them to Publication 919, “How do I Adjust My Tax Withholding?” and to the withholding calculator available on www.irs.gov

Form IL W-4

Employer must keep copy on file Form IL-W-5-NR – Employee’s Statement of

Nonresidence in Illinois Employees who reside in Iowa, Kentucky, Michigan and

Wisconsin must complete this form to be exempt from SIT withholding requirements. If your employee does not complete this form, you must withhold Illinois Income Tax.

See Booklet Il – 700 – Illinois Withholding Tax Guide (www.revenue.state.il.us/Forms/IL700.PDF)

Direct Deposit Form

Employee Benefits include: No more special trips to the bank or waiting in long lines to cash or

deposit paycheck No possibility that your paycheck may be lost or stolen Payroll information is more confidential (Decreases chances of identity

theft) No special arrangements or fear of missing a payday if on vacation or

sick Funds begin earning interest and are available for use on payday Paycheck will not get lost in mail and there is no waiting for mail to

arrive

403b and 457 Providers

Listing of all 403b and 457 Vendors approved by Board of Education

Distribute to ALL employees

Authorization from Employee (Salary Reduction Agreement)

For 2005 maximum contribution is $14,000 into each type

Form SSA-1945 TRS covered employees are not covered by

Social Security but rather public retirement system

Explains how a pension could reduce Social Security Benefits because of the Windfall Elimination Provision and Government Pension Offset Provision

Any certified employee hired after 1/1/05 must read and sign

www.socialsecurity.gov/form1945 or 800-772-1213

Social Security Number = Employee’s ID # TRS Employer # = Employer’s ID # Must mail copy of signed form to TRS

INS Form I-9 – Employment Eligibility Verification Form

Requirement of the Immigration and Naturalization Service

Applies to any employee hired after 11/6/1986

Must be completed within 3 days of hire date

Employee must present documentation to establish identity and work authorization (acceptable documents listed on form)

INS Form I-9 (Cont.)

Check for expired documents Retain for 3 years after date of

hire or 1 year after termination of employment

Not required to keep copies of eligibility documentation

Keep I-9 forms in separate file

Criminal History Background Check

Perform pre-employment background checks on all job applicants

Ask specific and thorough questions on the application; allows for easy termination if proven later employee lied on application

Background check tips: Get specific and word questions carefully Ask references to complete parts of form Warn applicant about lying on application Use Google to research applicant Follow up on applicant’s history Review District’s background investigation policies regularly

Thorough background checks can help to prevent expensive negligence lawsuits and harm done to any child

Criminal History Background Investigation Form

Required by Illinois law ALL employees (including substitutes) Districts must either do a criminal history or

fingerprint check but not both Contact local police department about Live Scan

fingerprinting technology According to HB 3977 all applicants must now

undergo a fingerprint based criminal history records check

Criminal History Background Investigation Form (Cont.)

Can be done electronically with the Illinois State Police: Decrypter Software called FEESUB

(www.isp.state.il.us/services/convictioninquiries.cfm) Security Based on Name, Sex, Race, Birth Date

Employer notified if a “hit” is found Finger-Print sheet is sent to employer

Child Abuse Form

Acknowledgment of Mandated Reporter Status from the Department of Children and Family Services Statutory Requirement

Requires employee to report any incidents of child abuse or neglect or face penalties

District may require employee to complete their form in addition

Drug and Alcohol Policy

Required by the Drug-Free Schools and Community Act of 1986 and the Drug-Free Workplace Act of 1988

District may require employee to sign-off on policy after review

Illinois school districts are required to establish a drug and alcohol use policy

Sexual Harassment Policy

Protects District from potential law suits

Encourages and fosters appropriate conduct among employees

Distributed to all employees in the District

District may require employee to sign-off on policy after review

House Bill 3451

Became law 7/14/05 All school districts must

perform a check of the Statewide Sex Offender Database for each applicant for employment

www.isp.state.il.us/sor/sor.cfm

National Sex Offender Public Registry: www.nsopr.gov

Certificate of Physical Fitness and Immunity from Communicable Disease

Employee must submit statement from physician indicating he/she is free of communicable disease and is physically fit to engage in their assignment

Employee must provide employer a copy of the results of either a skin test or a chest x-ray from his/her tuberculosis exam

Network ID Application

Establishes network ID/Login connection for employee

Assigns email address Sets forth the “Acceptable Use Standards”

Benefits - Agenda

Know Your Benefits Benefit Meetings/Communications Benefit Materials – Checklist Processing Enrollments Online Services Legislation – Medicare D, HIPAA, COBRA

Know Your Benefits

Who are your Providers? Are your Forms up to Date? Do you have enough Benefit Booklets? Who are your contacts? Basic Plan Summary – Comparisons Timely Enrollment Type of Employee Full-time or Part-time

Benefit Meetings/Communications

Give overview of benefit programs and furnish corresponding benefit materials: Health/Section 125 Dental Vision Life/AD&D Disability Flexible Spending Accounts Employee Assistance Plans (EAP) Sick, Personal, Vacation Days

Stress employee’s ownership of benefit plans – participation is a responsibility!

Benefit Materials - Checklist

Enrollment forms (Medical, Dental, Rx, etc.) Plan Description Booklets - required by law Online Resources – Provider & District

Websites ID Cards (typically furnished by carrier/TPA) Copy of Medicare D Certificate of Creditable

Coverage Copy of COBRA rights & obligations Copy of HIPAA regulations Copy of Flexible Spending Plan Document Waiver of Coverage/Signature

Processing Enrollments

Check that forms are complete and signed

Submit online, by fax or mail Send employee a copy of all

enrollment forms with verification memo

Check insurance bills to verify employees are enrolled

Online Services

Advantages: Changes done in real time Start a transaction, save it and

complete at a later time Decrease time spent on phone calls Receive reports online Employees have access to care

quicker Employees receive their ID cards

quicker

Online Services Cont.

Membership Capabilities: Membership maintenance

Enroll a new employee Add a dependent Cancel & reinstate a member Change name/address for a

member Request an id card

What are the responsibilities of my organization under Medicare D?

Medicare D Overview & Responsibilities

Overview: Effective January 1, 2006 for people with Medicare Provides prescription drug coverage subject to

deductible and coinsurance

Responsibilities: By November 15, 2005 – All eligible employees and

retirees must be notified whether or not the employer drug coverage is actuarially equivalent to Medicare D (Certificate of creditable coverage)

New hires will need to be provided a certificate of creditable coverage

www.medicare.gov

What are the responsibilities of my organization under HIPAA when hiring a

new employee?

HIPAA Overview & Responsibilities

HIPAA – Health Insurance Portability and Accountability Act

Overview: HIPAA provides rights and protections for participants

and beneficiaries in group health plans.

Responsibilities: Disclose your health plan’s pre-existing condition

limitation & provide notice of the ability of employee to offset limitation with creditable coverage

Offer employee assistance in obtaining a certificate of creditable coverage

What does my organization need to know about COBRA when a member

begins coverage?

COBRA Overview & ResponsibilitiesCOBRA - Consolidated Omnibus Budget Reconciliation Act

Overview:

COBRA gives workers and their families who lose their health benefits the right to choose to continue benefits provided by their group health plan for limited periods of time under certain circumstances.

Circumstances include voluntary/involuntary job loss, reduction in hours worked, transition between jobs, death, divorce, and other life events.

Responsibilities:

A general COBRA notice, including a description of the rules relating to preexisting conditions, must be provided when coverage begins.

Employers and plan administrators should mail notice of COBRA rights to the last known address of the qualified beneficiary. Posting notice at the employer’s place of business is not adequate.

Teachers’ Retirement System

Certified Employees: Teachers’ Retirement System of the State of

Illinois

Contribution Type 2005-06 2006-07

TRS Contributions  Member TRS retirementcontribution

9.40% 9.40%

Employer TRS retirementcontribution

0.58% 0.58%

Employer TRS contribution onfederally funded salary

7.06% *

THIS Fund Contributions  

Member THIS (insurance)contribution

0.80% 0.80%

Employer THIS (insurance)contribution

0.60% 0.60%

Teachers’ Retirement System (Cont.)

TRS Beneficiary Designation Form 2.2 and Optional Service Credit forms (must

renew these forms if coming from another district and was paying in at that district)

Retired members – No TRS Deduction (Certain rules apply - Public Act 93-0320 is a recent law that will allow some TRS annuitants to return to full-time, TRS-covered employment without loss of their pensions — but only in subject areas where the regional superintendent of schools certifies that a personnel shortage exists. The act is a five-year program that expires on June 30, 2008. )

(Above forms must be mailed or faxed to TRS and cannot be completed on-line)

Teachers’ Retirement System Website

www.trs.state.il.us Remit payments on-line using the web-

based remittance system Download and print forms and publications Obtain legislative information Sick leave reporting facts and information

Illinois Municipal Retirement Fund

Educational Support Personnel: Illinois Municipal Retirement System

Notice of Enrollment in IMRF (IMRF Form 6.10)

4.5% Employee Contribution Employer contribution based on

actuarial costs for retirement, death, and disability payments

Designation of Beneficiary (IMRF Form 6.11)

To qualify employee must work 600 hours

Unused, unpaid sick days count towards additional service credit (240 days = 1 year credit)

(Above forms must be mailed or faxed to IMRF and cannot be completed on-line)

IMRF Website

Log-in to Member Access View wages and

contributions Calculate pension estimate View address Submit changes to member’s

information View death benefit estimate View years and months of

service credit

Download and print forms and publications

Electronically submit forms Termination Member Information Changes Adjustment of Earnings Certificate of Disability Transmit Monthly wage report Monthly Deposit Summary

Display employer contribution rates

Monthly reminders

The New Hire Registry

New Hire Reporting Law (enacted October 1, 1997) requires employers to report all new employees within 20 days of their date of hire

Includes full-time, part-time, temporary (substitute) and rehires

Aids in tracking down parents who owe child support, unemployment claims

Employers have the options of submitting information via: 1. the New Hire Reporting form provided by the Illinois

Department of Employment Security; (can be downloaded at www.ides.state.il.us/employer/newhire/newhire2.pdf)

2. copies of the employee's W-4 form, with all information completed legibly, including the employer information;

3. a separate listing of new employees, with the required data; or

4. electronic or magnetic submission of data, reported twice monthly

5. Reports may be sent via first class mail, faxed, or emailed to the IDES.

The New Hire Registry (Cont.)

Required data includes – Employee’s name, address, social security number, hire

date, employer’s name, address, and FEIN Mail New Hire Reports via first class:

Illinois New Hire DirectoryP.O. Box 19473Springfield, IL 62794-9473

Fax data to: 1-217-557-1947 (24-hour fax line) Email data to: NHire@ides.state.il.us For information on the file format for reporting via

magnetic tape, cartridge or diskette call 312-793-9856

The New Hire Registry (Cont.)

Calendar of Pay DatesPAYROLL RUN DATES 2002-03

It is essential that the due dates for all payroll related time sheets, custodial time cards, and other miscellaneous reports be honored so that the payroll dates will be met and you can be paid on a timely basis. Time cards for custodians and maintenance staff are due on Mondays and should be sent to the Payroll Office. All time sheets must be signed by the School Principal and into the payroll office by noon on the day that they are due (See Second Column) unless indicated at a different time below. Checks will be released according to the dates listed in the last column.

Due Dates For Time Sheets

Payroll Run Date Payroll Checks Will Be

Released 2002 July 1 July 8 July 12 July 16 July 22 July 26 August 1 August 7 August 13 August 16 August 21 August 27 September 3 September 9 September 13 September 17 September 23 September 27 October 1 October 7 October 11 October 16 October 21 October 25 November 1 November 6 November 13 November 18 November 21 November 27 December 2 December 9 December 13 December 16 December 20 December 27

Social Security Number Verification

Website: www.socialsecurity.gov/employer/ssnv.htm Only use after employee(s) are hired Requires pin and password to access Direct keying of up to 10 names/SS#’s with immediate results If name does not match:

Check for typographical error Check actual Social Security card Ask employee to contact Social Security to resolve Maintain consistent company policy and treat all employees the same

Telephone Verification – 1-800-772-6270 Up to five names and numbers

Things You Should Know

2005 Social Security Wage Base = $90,000 Social Security Tax = 6.2% Medicare Tax = 1.45% 2005 Mileage Rate = 48.5 cents per mile IRS recommends that new W-4’s be

distributed to all employees annually by Feb. 15

Keep 403b/457 Salary Reduction Agreements in separate folders in case of IRS audit

Security Issues

Arrange time for picture ID for ID Badge

Record and assign building access key

Are We Done Yet?

All new hires must complete Bloodborne Pathogen training

Telephone training, extension, and authorization of voice mail box

Attendance procedures (i.e. whoto call for sub, leave of absence form)

School Calendar

Summary

Stay Organized! For New Hires - Have fun

as this is a great way to meet new people in the organization

Carefully review all forms for mistakes

Continue to streamline processes