University of Southern Maine- Human Resources
Student Payroll Procedures Manual
- Table of Contents -
Monitoring Employee's Earnings
Compliance with Federal/State Laws
Information on W-4 Form (IRS)
Information on I-9 Form (INS)
Restrictions and Additional Forms
Mandatory Paperwork before Hiring
Disbursement Dates of Paychecks
If you need to add (or delete) a student time approver, you can print a Security Authorization Form from the web. Please note that the person will not be authorized until the sheet is received back in Student Payroll(G). Internal Auditing and Student Payroll strongly recommend that there be at least two people (per area employing students) that will be authorized to approve time worked. This will prevent delays in approving time because a single employee may not always be present.
If you are going on vacation, taking a leave of absence, or taking a long week-end, please be sure that other authorized staff are available to approve student's time on Mondays.
Monitoring Student Employee Earnings:
To be eligible for Federal Work-Study employment, in addition to meeting all general requirements for Federal Assistance, student's must be registered and attending at least six (6) credit hours. If a student stops attending classes or drops/withdraw below six (6) credit hours, the student is to notify supervisor immediatley. The position will then default to department funds.
It is the responsibility of the employer and the student employee to closely watch the Student Earnings report. If a student employee has over-earned it will default to department funds. If student is close to over-earning his or her workstudy funds and you want student to continue under department funds, a new Work Authorization Form must be completed OR the student must stop working.
Per Federal & State Wage and Hour Laws, employees must be paid for all hours worked. A student who has a Federal Work-Study award may not volunteer. Once a student has FWS and is in a paid position, the employee must be paid, regardless of whether or not wages exceed the FWS award.
Excerpt from the Encyclopedia of Student Financial Aid: (188.8.131.52.4)
The Fair Labor Standards Act of 1938, as amended, prohibits employers, including educational institutions, from accepting voluntary services from any paid employee. Therefore, any student employed under FWS must be paid for all hours worked.
Hours worked in excess of the FWS award will automatically be charged to your department's budget, as you are considered the employer. We can't emphasize enough the importance of carefully monitoring a student employee's Federal Work-Study award, as well as complying with Federal and State regulations regarding legal and prompt payment for hours worked.
Payment for Overtime:
Student employees who work in excess of 40 hours per work week (Sunday through Saturday) will be paid at the overtime pay rate (equal to 1.5 times their pay rate) for the hours worked after 40. Federal Work-Study Funds cannot be used to pay overtime. If student continues to work 40 or more hours they will lose their FICA exempt status to comply with IRS laws.
If a FWS student employee exceeds 40 hours in a week, the overtime will be charged to the department's budget.
If your department does not wish to pay overtime, please make sure that the student employee does not work over 40 hours. If the employee happens to work overtime, they must be paid for that overtime.
Please consider that students can work in different departments and have more than one job. A student employee could possibly (especially during vacations or breaks) work more than 40 hours a week between 2 or more jobs. MaineStreet calculates overtime and the appropriate department(s) will be charged for any overtime. In this case, you might want to coordinate hours with your student and his/her other jobs, explaining that you wish to avoid paying overtime.
Restrictions regarding Student Employment:
Due to the absence of collective bargaining for department funded positions and Federal regulations regarding Federal Work-Study positions, only actual hours worked can be reported as time worked. Student employees are not paid for the following:
Holidays (unless the student employee actually works)
Any other reason which results in a student not working
Compliance with Federal and State Wage and Hours Laws, Fair Labor Standards and Federal Work-Study regulations:
Departments who hire student employees must comply with mandated labor laws regarding prompt, legal, and accurate payment of all employees. Due to liability issues, time entered into MaineStreet must reflect the actual hours and days that an employee worked. Payroll must be able to go back and verify that an employee was working on a certain day, at a certain time. The following lists some examples:
- Time must be recorded in MaineStreet on the day it is worked. Hours not reported on one week can't be added to another week.
Employees must be given specified breaks based on the number of hours worked according to Federal & State Wage and Hour Laws. An employee may be permitted to work for no more than six (6) consecutive hours at one time unless he or she is given the opportunity to take as least a 30 consecutive minute rest.
Link to the Supervisor's Guide to Student Employment published by the Student Financial Aid Office.
I-9's and W-4's Filing Requirements
Student employees must have a current W-4 Forms and I-9 Form on file in the Student Payroll Office BEFORE they begin working.
Although the student's legal employer is USM - University of Maine System, its departments are considered agents in ascertaining that the student employee is provided with the necessary information required to meet all of his or her legal and moral obligations. This means you must advise the student employee that he or she is required to have a completed I-9 Form on file in the Student Payroll Office within three (3) business days from date of hire. In addition, completed W-4 Forms (Federal & Maine) are required for all new USM employees. These forms are required for new University of Southern Maine employees who are defined as:
- A person who has never been employed by the University of Southern Maine.
- A person whose employment at USM has lapsed for more than six (6) consecutive months.
- A person who has never been employed by the University of Southern Maine.
Employees are required to file a W-4 forms (Federal & State) with the University of Southern Maine for the purpose of filing appropriate withholding status. The Federal W-4 form also provides the University with a permanent mailing address for mailing the W-2 (statement of wages and withholding) produced at the end of each tax year. Please note that address changes with the Registrar's Office do not update to USM Payroll records and the student must notify us separately.
U.S. Department of Homeland Security and United States Citizenship Immigration Service (USCIS) requires the University to verify that all employees are eligible to work legally in the United States. The USCIS specifies what documents are acceptable to verify both identity and employment eligibility. Please refer to the back side of an I-9 form for the LIST OF ACCEPTABLE DOCUMENTS.
Both forms must be completed in ink and must also provide a permanent mailing address (PO Box and dorm room addresses are not permitted). If international student this must be their actual home address in their native country.
PLEASE NOTE: If the employee you wish to hire is an International student, please refer to the section "International Students" as there may be different requirements and/or restrictions.
International Students with expired passports, expired I-20's or IAP66's, NO Social Security Card/Number or for any reason considered "out of status" can not work under any circumstances.
The Office of International Programs provides International students with information and handouts explaining the requirements and restrictions of "on campus" employment. Please be sure that any prospective students you plan to hire are in receipt of this information. It explains the procedures and steps that an International student must follow before employment can begin.
Once student has met with Office of International Programs have student contact the Payroll Service department to complete I-9 and proper tax forms that may apply.
With the approval of USM's representative, Immigration rules state that an International student employee may only work a total of 20 hours per week during the academic year regardless of how many jobs he or she may have. (During vacation breaks, the student may work full time.) For example, if a student has three jobs, he or she may only work a total of 20 hours between all three positions.
Submitting Time Worked
Time Worked must be entered into a MaineStreet's Time and Labor system. Please review the information contained on the Student Payroll web site.
Time worked must be entered into MaineStreet daily as worked.
Time is figured on the quarter hour (i.e. 9:15, 9:30, 9:45, 10:00). If time arrived is, for example 10:08, round to the nearest quarter hour - 10:15. Lunch hours and/or breaks must be recorded.
Please note A.M. or P.M. hours when reporting time.
Paychecks will be available in the Payroll Services department, 104 John Mitchell Center on the Gorham campus. The office is open Monday-Friday 8 am to 4:30 pm except for observed holidays.
Disbursement Dates of Paychecks:
Student paychecks are released every other Friday. The Current Payroll Schedule -
The Student Payroll schedule provides the dates upon which the paychecks are available. The University of Maine System does not allow any paychecks to be released until those dates indicated. There will be no exceptions made. The required direct deposit will assure payment as soon as it is available.
Direct deposit is required of all employees. Student employees can enter their direct deposit information directly into MaineStreet via Self Service. If a student used direct deposit in the past, and there has not been any changes to the account since then, then re-application is not required. If necessary, forms are available below.
Questions or Comments? Contact Payroll:
Email email@example.com or call 207.581.9104
(fax student authorizations to 207.561-3456)
Last Modified April 2017