Procedure: Payroll Deductions
Employees who have any questions regarding this policy should contact their personnel representative.
Personnel representatives who have questions regarding payroll deductions should contact the Central Office for the Department of Technical and Adult Education at (404) 679-1759.Look up O.C.G.A. information here
(a) Required Payroll DeductionsEmployees of the Department of Technical and Adult Education are subject to the following required payroll deductions as described below:
(a.1) SOCIAL SECURITY TAXES – O.C.G.A. §47-2-71 provides that a state employee who becomes a member of the Employees’ Retirement System after September 1, 1956, must also contribute to the Social Security Administration (SSA). The rate and maximum amount of liability are set annually by the Social Security Administration.
(a.2) MEDICARE TAX – Public Law 99-272 (the Consolidated Omnibus Reconciliation Act of 1985) provides that state employees who are not eligible for Social Security Tax must contribute to the Medicare Tax. The rate is set annually by the Social Security Administration.
(a.3) FEDERAL INCOME TAXES – Chapter 24 of the Internal Revenue Code provides that all employees must have income taxes withheld from wages based upon their current Employee’s Withholding Allowance Certificate (W-4).
(a.4) STATE INCOME TAXES – O.C.G.A. 48-7-101 provides that all employees must have income taxes withheld from wages based upon their current Georgia Employee’s Withholding Allowance Certificate (G-4).
(a.5) EMPLOYEES’ RETIREMENT SYSTEM CONTRIBUTIONS – O.C.G.A. 47-2-52 provides that employees, with the exception of students, who are appointed at 35 hours or more per week on positions budgeted nine months or longer, who select the Employees’ Retirement System must have their contributions deducted from wages. After June 30, 1982, all members appointed must participate in the New Plan.
(a.6) TEACHERS” RETIREMENT SYSTEM – O.C.G.A. 20-4-10 thru 20. provides that employees, with the exception of students, appointed one-half time or more in a Teacher’s Retirement System position budgeted nine months or longer, who elect the Teachers’ Retirement System must have contributions deducted from wages.
(a.7) GEORGIA DEFINED CONTRIBUTION PLAN – O.C.G.A. 47-22 provides that temporary, seasonal and part-time employees who are not eligible for membership in the Employees’ Retirement System (or Teachers’ Retirement System) must contribute to the Georgia Defined Contribution Plan.
(a.8) GARNISHMENTS – O.C.G.A. 18-4-21 and 18-4-113 provides that creditors may, through the courts, issue a Summons of Garnishment or a Summons of Continuing Garnishment against an employer (the Department of Technical and Adult Education) as the garnishee and the employee as the defendant.
NOTE: “Garnishment” is defined as any legal procedure by which the earnings of an individual (employee) are required to be withheld for payment of a debt.
(a.9) INTERNAL REVENUE SERVICE LEVIES – Chapter 64 of the Internal Revenue Code provides that, in order to satisfy the tax liability of an employee (tax-payer), the Internal Revenue Service may levy upon all wages and salary of the delinquent taxpayer. The Department is obligated to withhold the prescribed levy from the date the levy is made until the employee’s tax liability is satisfied or becomes unenforceable.
(a.10) BANKRUPTCY – Pursuant to U.S.C. 28-2075, an employee may voluntarily file a petition of bankruptcy and submit a specified portion of future income to the court for payment to creditors. The Department is required to deduct the specified sum from the earnings of the employee for payment to the Federal Court until the employee’s liability to the court is satisfied. Bankruptcies supersede all levies and/or garnishments.
(a.11) UNEMPLOYMENT OR WAGE SUBSTITUTES – Opinion 65-55 of the Attorney General of Georgia provides that when a dismissed employee is reinstated with back pay that those wages be reduced by the amount of unemployment or other wages received during the period of dismissal.
(a.12) CHILD SUPPORT (INCOME DEDUCTION ORDER) - O.C.G.A. 19-6-30 provides that the Georgia Office of Child Support Enforcement may issue an income deduction order to the employer for withholding a specific amount from the designated employee’s wages.
(b) Optional Payroll Deductions
Department of Technical and Adult Education employees may authorize certain payroll deductions to be made from their paychecks. These deductions are:
(b.1) STATE HEALTH BENEFIT PLAN
(b.2) FLEXIBLE BENEFITS PROGRAM
(b.3) MISCELLANEOUS INSURANCES - O.C.G.A. 45-7-51 provides that all full-time employees eligible for the State Health Benefit Plan may enroll in Miscellaneous Agency Optional Insurance Plans that are authorized by the Department.
(b.4) CREDIT UNIONS - O.C.G.A. 45-7-52 provides that employees may have deductions to a designated Employee Credit Union in which the employee holds membership.
(b.5) DEFERRED COMPENSATION O.C.G.A. 45-18-36 provides the employees that elect to enroll in the State Deferred Compensation Plan may have contributions deducted from their paychecks.
(b.6) CHARITABLE CONTRIBUTIONS - O.C.G.A. 45-20-50 provides that all employees may elect to have deductions made from their paychecks to the Charitable Contributions Program.
(b.7) U.S. SAVINGS BONDS - O.C.G.A. 45-7-50 provides that all employees may authorize deductions for U.S. Savings Bonds. The minimum face value allowed is $100, the maximum is $1,000.
(b.8) PARKING/VAN POOL - O.C.G.A. 45-7-53 provides that employees may authorize deductions for payment of Capitol Hill parking and Van Pool fees.
(b.9) VOLUNTARY WAGE ASSIGNMENTS FOR CHILD SUPPORT - O.C.G.A. 19-11-20 provides that employees may voluntarily assign wages to the DHR Office of Child Support Enforcement.
(c) Required Payroll Deduction Procedures(c.1) SOCIAL SECURITY TAXES – Deductions shall automatically begin when retirement deductions are activated.
(c.2) MEDICARE TAX – Deductions shall automatically begin if retirement deductions are not activated.
(c.3) FEDERAL INCOME TAXES
1. Deductions shall be activated based on individual W-4 certificates filed with appointment papers.
2. W-4 changes for employees should be made by the payroll/business office.
3. If a W-4 certificate is not received for an employee, the employee’s tax status shall be entered as single with zero allowances.
(c.4) STATE INCOME TAXES
1. Deductions shall be activated based on individual G-4 certificate filed with appointment papers.
2. G-4 changes for employees should be made by the payroll/business office.
3. Invalid or incomplete certificates shall be returned to the employee for completion/correction.
4. If a G-4 certificate is not received for an employee, the employee’s tax status shall be entered as single with zero allowances.
(c.5) RETIREMENT CONTRIBUTIONS
1. Employees’ Retirement System - Upon appointment, transfer or becoming eligible for membership in the Employees’ Retirement System, the employee must complete an Application for Membership (Form ERS-12) and forward it to the Personnel Office. The authorized Personnel Representative shall activate the appropriate deduction upon receipt of application. On a monthly basis, deductions, along with employer’s contributions are reported and forwarded to the Employees’ Retirement System.
2. Teachers’ Retirement System – Upon appointment, transfer or becoming eligible for membership in the Teachers’ Retirement System, the employee must complete an Application for Membership (Form TRS 2-A, 8/84) and forward it to the Personnel Office. The authorized Personnel Representative shall activate the appropriate deduction upon receipt of application. On a monthly basis, deductions, along with employer’s contributions are reported and forwarded to the Teachers’ Retirement System.
(c.6) Georgia Defined Contribution Plan
1. Employees who are eligible for membership in the Georgia Defined Contribution Plan must complete an Application for Membership (Form DCP-I) and forward it the to the appropriate Personnel Representative. The authorized Personnel Representative shall activate the appropriate deduction upon receipt of application. On a monthly basis, deductions, along with employer’s contributions are reported and forwarded to the Employees’ Retirement System.
(c.7) Garnishments
1. A Sheriff, Marshal, Constable, or other officer of the court shall serve the Summons of Garnishment or Continuing Garnishment upon the Department.
2. Immediately upon receipt of the Summons of Garnishment or Continuing Garnishment of Department of Technical and Adult Education employees, the original Summons should be processed.
3. The employee shall be notified of receipt of a Summons or Garnishment or Continuing Garnishment by a letter marked Personal or hand delivered. (See Garnishment Letter Sent to Employees). In addition to serving the garnishment, the letter details the action that will be taken to satisfy the garnishment and sets forth steps the employee may take to stop the garnishment proceedings.
4. At the same time the letter is issued to the employee, appropriate action shall be taken to activate the garnishment and begin payroll deductions.
5. A garnishment applies to earnings accumulated over a specified period of time, and the amount of money that must be forwarded to the court, as required by the garnishment, in some instances may not cover the entire debt owed by the employee. Consequently, several garnishments may be issued in order to satisfy a single employee debt. When a Summons is issued, the Department is required to pay the court an amount not to exceed the lesser of:
a. Twenty five percent (25%) of the employee’s disposable earnings for the pay period(s) concerned; OR
b. The amount by which the employee’s disposable earnings for that pay period exceeds 30 times the Federal minimum wage in effect at the time the earnings are payable.
Note: “Disposable earnings” are all earnings after the following deductions have been made:
a) Federal taxes
b) State taxes
c) FICA (Social Security)
d) Retirement
c. If a garnishment is based on a judgment for alimony or child support, the Summons may contain a different specified percentage to be withheld.
(c.8) Answer of Garnishment to the issuing Court is as follows:
1. Summons of Garnishment – Wages shall be garnished for thirty (30) days and not later than 45 days after service.
2. Summons of Continuing Garnishment – Wages will be garnished for one hundred seventy nine (179) days and answers are filed with payment no later than every 45 days with the final answer no later than the 195th day after service. (See Answer to Garnishment)
3. Should the garnishee fail to file answers as required, a judgment by default could be entered against the garnishee for the amount of the claim owed by the employee.
4. A copy of the Answer of Garnishment will be sent to the plaintiff (creditor) or plaintiff’s attorney if addresses are supplied on the Summons.
(c.9) Release of Garnishment
1. If an employee at any time secures a release from the garnishment, the payroll office must be provided a copy of the release from the court. The payroll office will then confirm that the release is authentic, refund any money that has been withheld from the employee’s wages(wages not paid the court), and stop making garnishment deductions from the employee’s check.
2. When the garnishment is satisfied, the deductions from the employee’s check will be stopped.
(c.10) Internal Revenue Service Levies
1. The Internal Revenue Service will submit to the payroll office a Notice of Levy on Wages, Salary and Other Income. This is the means by which the IRS secures payment for taxes due from the employee/taxpayer.
2. If the taxpayer is a current Department of Technical and Adult Education employee, a letter of notification is sent to the employee marked Personal or it is hand delivered. (See Letter of Notification to Employee of IRS Levy) The employee is also sent Form 668-W©, Statement of Personal Exemptions, which must be complete and returned to the payroll office within three (3) working days. This form should list the dependents claimed by the employee/taxpayer and is the basis for computing the exemption from levy which the employee may claim. The Code provides that a taxpayer who receives wages on a semi-monthly basis will have a certain amount exempted from levy, depending upon filing status and the number of individuals specified as dependents in a verified written statement given to the taxpayer’s employer.
NOTE: The wages subjected to levy are the net amount to the employee. All deductions are made from the gross wages in effect at the time the levy was received. The payroll office will deduct the appropriate exemption along with the deductions that were active at the time the levy was received, such as FICA, Federal and State taxes, health insurance and retirement, from the employee’s gross earnings to arrive at the amount to be withheld from the employee’s check. The levy will then be remitted to the Internal Revenue Service each pay period.
Deductions will be made from the employee’s paychecks until the levy is satisfied. If the employee at any time secures a release from levy, the payroll office must receive a copy of the release from the Internal Revenue Service. The payroll office will then verify that the release is authentic and refund any money that has been withheld from the employee’s wages that has not been remitted to the Internal Revenue Service. Thereafter, the levy deductions will be stopped.
(c.11) Bankruptcy
1. The payroll office is notified of an employee’s voluntary filing of a petition of bankruptcy by an “Order to Employer to Pay to Trustee” issued by a Federal District Bankruptcy Court. This order sets out the amount to be withheld from the employee’s salary each pay period as well as the name and address of the Trustee to whom the deductions are to be remitted.
2. The employee is notified by letter when the deductions will begin and the amount of the deductions. (See Letter of Notification to Employee of Bankruptcy Deduction) These deductions will continue until such time as notification is received by the payroll office that the bankruptcy has been closed by the Court.
(c.12) Unemployment and Wage Substitutes
1. Dismissed employees who are reinstated to duty must execute a notarized statement informing the Department of unemployment benefits or wages from any source that were received during their period of dismissal. If wages were received, a statement from the employer should be attached. The statement should include the name and address of the employer, the dates of employment, and the gross amount of wages received. If no unemployment benefits or wages were received, the employee must execute a notarized statement to this effect.
2. The payroll office will verify with the Department of Labor and/or the other employers the amount the individual received.
3. Upon determining the amount of back pay due, the entire amount of unemployment benefits and/or wages received during the period of dismissal will be deducted, except for amounts received during periods of suspension without pay.
4. The amount collected for unemployment is remitted to the Department of Labor or DOAS Risk Management, whichever is appropriate.
(c.13) Optional Payroll Deduction Procedures
1. State Health Benefit Plan
a. To authorize payroll deductions for the State Health Benefit Plan, an employee must (1) be eligible for membership, (2) be eligible for the type of health insurance coverage (single or family) and the type of option chosen, (3) submit with the Request for Personnel/Payroll Action a completed Membership Form, and an Enrollment Supplement Form, if enrolling in an HMO.
2. To change options or type of coverage, an employee must (1) change during Open Enrollment (April-May of each year) with one exception – an employee may make family status changes under the provisions of the terms and conditions and instructions on Form SHBP 66-0906 (Rev 2/01) and submit a completed Membership Form and Dependent Coverage and Miscellaneous Update Form to the appropriate Personnel Office, who will submit the information to the State Health Benefit Plan.
3. To decline coverage (new employee) or discontinue existing coverage, an employee must submit a completed Declination or Discontinuation Form to the Personnel Office during the Open Enrollment period only.
4. Employees who wish to continue coverage while in leave without pay status must:
a. submit a completed Request to Continue Health Benefits During Leave of Absence Without Pay Form and a Disability Certification Form (if due to disability/illness);
b. enclose a check or money order for the premium payment. (the employee should contact the Personnel Office for the amount of the premium); AND
c. forward the form(s) and check directly to the State Health Benefit Plan.
NOTE: All forms may be obtained through the Personnel Office
(c.14) Flexible Benefits Program – Employees who are eligible may enroll in the following options under the Flexible Benefits Plan Program:
1. Group Term Life Insurance
2. Dependent Life Insurance
3. Accidental Death and Dismemberment
4. Short Term Disability
5. Long Term Disability
6. Dental Insurance – Insured Option and PPO (where available); Single and Family Coverage
7. Health Care Spending Account
8. Dependent Child Care Spending Account
9. Legal Insurance (Single and Family Coverage)
10. Long Term Care Insurance
NOTE: Employees may have guaranteed coverage for some of the programs listed above if they enroll as a new employee. For more information, please contact the Personnel Office.
(c.15) Miscellaneous Agency Optional Insurance Plans
1. Miscellaneous Agency Optional Insurance Plans – The insurance companies and corresponding products listed below are the only ones authorized by the Department of Technical and Adult Education. Please contact the appropriate Personnel Office for more information on these plans.
a. American Family Life Assurance Company (AFLAC) – (Cancer Insurance, Accident, Accident Plus, Personal Intensive Care, Supplemental Medical/Disability Insurance)
b. American Fidelity Assurance Co. – (403B – Tax Shelter Annuity)
c. Bankers United Life – (Cancer Insurance)
d. Chesapeake Life Insurance – (Life Insurance)
e. Colonial Life and Accident Insurance – (Accident Protection Insurance)
f. Colonial Life Insurance - (Cancer Insurance)
g. Copeland (Citibank) – (403B – Tax Shelter Annuity)
h. Equitable – (403B – Tax Shelter Annuity)
i. Great American Life – (403B – Tax Shelter Annuity)
j. Legalwise – (Legal Insurance)
k. Liberty Life Insurance – (Life Insurance)
l. Lincoln Life – (403B - Tax Shelter Annuity)
m. Lincoln National – 403B – Tax Shelter Annuity)
n. Metlife – (403B – Tax Shelter Annuity)
o. Northern Life – (403B – Tax Shelter Annuity)
p. Security Benefit – (403B - Tax Shelter Annuity)
q. VALIC – (403B -Tax Shelter Annuity)
2. To authorize payroll deductions for miscellaneous insurances an employee must (1) be eligible for the insurance, and (2) submit the proper authorization form to the Personnel Office, who will submit the information to the Payroll Office and the appropriate insurance carrier.
3. To change coverage an employee must submit the proper authorization form to the Personnel Office, who will submit the information to the appropriate insurance carrier.
4. To cancel coverage an employee must submit in writing a cancellation notice to the Personnel Office, who will submit the information to the appropriate insurance carrier.
(c.16) Credit Unions
1. To authorize payroll deductions for an approved Departmental Credit Union, an employee must (1) be a member of the Credit Union and (2) submit to the Credit Union Office an Authorization for Payroll Deduction Form. These forms may be obtained from the Credit Union. The authorization form must be signed by the employee and must specify the date and amount to be deducted.
2. Should an employee desire to change or cancel the amount of payroll deduction for a Credit Union, a written notification should be submitted to the payroll office in advance of the effective date of the change. The payroll office will notify the Credit Union detailing the change to be made and the date the change is to become effective.
(c.17) Deferred Compensation
1. To authorize payroll deductions for the Deferred Compensation Plan, an employee must submit to the payroll office a Participation Agreement and Beneficiary Election Form.
2. To change or cancel deductions, an employee must submit a Participation Agreement to the payroll office. Employees may make changes four (4) times per year.
3. To change previously withheld investments, an employee must submit an Investment Exchange Request Form.
4. To receive investments, an employee must submit a Distribution Method Election Form to the payroll office.
5. All forms may be obtained through the Personnel Office.
(c.18) Charitable Contributions
1. O.C.G.A. 45-20-50 establishes the Charitable Contributions Program under the supervision of the State Personnel Board. There is an annual educational campaign during which employees are given the opportunity to contribute to eligible charities through payroll deduction. The State Personnel Board decides which charities are eligible to participate, the dates of the educational campaign, and the forms use for payroll deduction.
2. The Department of Technical and Adult Education designates an individual to be responsible for organizing a statewide educational program, including the distribution of contributor brochures and deduction forms. Deduction forms are collected by the designated official and forwarded to the Georgia Merit System for processing.
3. Employees are allowed to choose monthly deductions which will be taken the last pay period of the month. Minimum deductions must be at least $1 and must extend 12 consecutive months.
4. Deductions extend for one calendar year, beginning with the January following completion of the annual educational campaign.
5. Deductions are cancelled upon termination, resignation, or retirement of the employee. Deductions may also be cancelled by the employee through written notice to the payroll office 30 days before the cancellation is to occur.
(c.19) United States Savings Bonds
1. Payroll deductions for United States Savings Bonds are authorized by the United States Savings Bond Payroll Savings Authorization Card. This card must be completed and signed by the employee and forwarded to the payroll office for processing. The cards may be obtained from Central Supply or the Personnel Office.
a. Payroll deductions for employees may be semi-monthly or monthly.
b. Should an employee desire to change or cancel the amount of payroll deduction for United States Savings Bonds, a new authorization card in advance of the effective date of the change must be sent to the payroll office detailing the change to be made and the date the cancellation is to become effective, which should be at the completion of the bond.
2. Bonds are issued normally two or three weeks after the payroll period.
(c.20) Voluntary Wage Assignments for Child Support
1. In order to authorize Voluntary Child Support Payroll deductions, an employee must submit an income deduction order through the local Child Support Enforcement Office.
2. The local Child Support Enforcement Office will forward the authorization to the payroll office.
(c.21) General Information
1. Employees who have any questions regarding this policy should contact their personnel representative.
2. Personnel representatives who have questions regarding payroll deductions should contact the Central Office for The Department of Technical and Adult Education at (404) 679-1759.
References
Garnishment Letter Sent to Employees [MS Word]
Answer to Garnishment [MS Word]
Letter of Notification to Employee of IRS Levy [MS Word]
Letter of Notification to Employee of Bankruptcy Deduction [MS Word]
Created: September 28, 2001