Payroll

Policy

FIACCT 11-18_00 Payroll – Dual Employment

Effective: July 1, 1999
Revised: March 8, 2017
Reviewed: March 10, 2017

Purpose

To establish procedures for paying employees who work for more than one department and who meet the “Employee” criteria in the Definitions section below.

Background

Effective May 15, 1999, dual employment capability in the Time Management System was implemented for all state departments. The system is designed to manage biweekly payroll processing for all employees including employees who work in more than one state position. For regular employees who are employed in more than one state position, dual employment will be treated as temporary employee status.

Definitions

Using IRS rules, the definition of an employee is general and not always clear-cut. However, there are
hundreds of court cases that can be reviewed in specific cases. The general definition is as follows:

Employees

You are an employee if the person you work for may tell you what to do and how, when, and where to do it. The employer may not have to tell you these things but needs only the right to do so. Factors about your job arrangement that may show you are an employee include the following:

  1. The person you work for may terminate your employment.
  2. The person you work for furnishes you with tools and/or equipment and a place to work.
  3. You receive training from the person you work for or are required to follow that person’s instructions.
  4. You must do the work yourself.
  5. You do not hire, supervise, or pay assistants (unless you are employed as a foreman, manager, or supervisor).
  6. The person you work for sets your hours of work, requires you to work full time or part time, or restricts you from doing work for others.
  7. The person you work for pays your business or traveling expenses.
  8. You are paid by the hour, week, or month.

Independent Contractor

Independent contractors are in business for themselves (e.g., doctors, lawyers, veterinarians, and construction contractors). Factors that show contractor status in your job arrangement include the following:

  1. You decide what to do, how, when and where to do it.
  2. You make a profit or suffer a loss.
  3. You are hired to complete a certain job, and, if you quit before the job is completed, you may be liable for damages.
  4. You work for a number of other persons or firms at the same time.
  5. You advertise to the general public that you are available to perform services.
  6. You pay your own expenses and have your own equipment and workplace.

At-Will Employee

An individual appointed to work for no specified period of time, or one who has not acquired career service status, and may be terminated at any time without just cause.

Primary Employment

The main position the employee holds in state government.

Dual Employment

The status of an employee who has more than one position within state government.

Schedule

DHRM designation of position type.

Policy

A. A person may work for another department of state government if the Department of Human Resource Management rules regarding secondary employment are followed:

1. Persons who meet the Employee criteria in the Definitions section will be paid for all positions by recording his/her time through the Time Management System.

2. Persons who substantially meet all of the Independent Contractor criteria in the Definitions section will be paid on a contract.

B. The definition of an employee will be based on Internal Revenue Service (Employer’s Tax Guide, Circular E) guidelines. Departments must consider the guidelines before paying someone as an
independent contractor. If there is a question, contact Department of Human Resource Management
or DAS Division of Finance for help in making the decision.

C. An employee can hold up to four positions within state government. The supervisor of the employee’s
primary position must authorize the employee to hold additional positions. This form applies only to the additional positions.

D. The employee must read and sign Form FI 7, Accepting Terms of Dual Employment. Obtain the signature of supervisors in all positions.

E. Dual employment with the State requires compliance with the Fair Labor Standards Act (FLSA). The employee’s FLSA status (exempt or non-exempt) for positions 2, 3, and 4 will be that of the employee’s primary position. Positions 2, 3, and 4 are considered At-Will Employment.

F. Form FI 8, Time Sheet for Dual Employment, for positions 2, 3, and 4 is required to be signed by the employee’s supervisor for each position, and a copy must be sent to the primary employer. If the secondary position is within a department other than the primary employer’s department, a copy of the FI 8 must also be submitted by the department payroll/personnel staff to the DAS Division of Finance Payroll Section for data entry.

G. Regular and overtime pay will be charged when and where it is earned. The Regular Hours Ceiling is
the point at which additional time worked is considered overtime according to FLSA and state
regulations. By default, whatever position the employee is working in at the time his Regular Hours
Ceiling is exceeded will be charged for the overtime.

For example:
An employee with a 40-hour per week ceiling works Monday through Friday 8 hours a day in his/her primary position and 2 hours a day in his/her secondary position. No overtime will be earned or charged to either position until Friday. Every hour worked on Friday is overtime and will be charged as 8 hours of overtime to the first position and 2 hours of overtime to the second position. Overtime can be charged directly to a position by indicating on the time sheet which hours should be charged as overtime; otherwise, overtime will be charged as described in the example.

H. The employee will not accrue compensatory time while in dual employment status. Overtime is
always paid when the regular hours ceiling is exceeded. Overtime pay is calculated at straight time or
time and one half, depending on the FLSA status of the primary position. The time and one half pay
rate is the weighted average of the hourly pay rate and other earnings of each position worked in the
pay period.

I. The employee will not accrue excess leave hours while in dual employment status. All excess leave
hours are paid at the straight time pay rate of the position where the excess leave hours are worked.

J. The employee’s state-paid benefit costs are proportionately distributed among all employing
departments, not just the primary employer.

K. No annual or sick leave will be accrued for positions 2, 3, and 4. However, if annual and sick leave
are accrued in the employee’s primary position, all hours worked for each position will be taken into
account to determine the amount of leave accrued. The amount accrued will not exceed the maximum
amount allowable in the primary position.

L. One payroll warrant will be processed for the employee with multiple positions within state government. The payroll warrant will be distributed to the department of the primary position. Year-
end reporting of all earnings from all positions in state government will automatically be combined on
one W-2 form for the employee.

M. Fiscal year-end and calendar year-end payments for employees in dual employment must match the cutoff deadlines established by the DAS Division of Finance each year. Dual employment employees
will be paid for work performed through June 30 fiscal year-end as old year expenses.

Procedures

Responsibility

Action

Employee

Notify the department of primary employment in writing of any desire to seek dual employment in state government.

Primary Department Head or Designee

Approve the request when the Human Resource Management Rules allow the person to be in dual employment. (See Human Resource Rules, Working Conditions, Dual State Employment, R477-8-14)

Employee

  1. Sign Form FI 7, Accepting Terms of Dual Employment.
  2. Give form to payroll person in primary position to be kept with payroll records.

Department Payroll/
Personnel Staff
For positions 2, 3, or 4

  1. Send to the DAS Division of Finance Payroll Section a copy of the completed form FI 7, Accepting Terms of Dual Employment, by email at [email protected] or by fax 801-538-3244.
  2. By Wednesday following the last day of the pay period, send to the DAS Division of Finance Payroll Section a copy of an approved Form FI 8, Time Sheet for Dual Employment, for hours worked.

    The employee name, Employee Identification Number, hourly rate, and all charging information, such as fund, department, organization, appropriation unit, activity, reporting category, project/job, and function, are required for every FI 8 form that is sent to the DAS Division of Finance Payroll Section for entry.

DAS Division of Finance State Payroll Section

  1. Add information to the Employee Master Data Screen for positions 2, 3, or 4 using the Dual Employment Screen. Set the overtime flag to time paid and the excess hours accrual to zero.
  2. After the primary position hours are entered by the department, use the Time Entry Screen to enter time worked, according to the approved FI 8. Charge regular hours to the appropriate positions.

Timing

Monday through Friday, following the last day of the pay period:
Department payroll/personnel staff enters employee time sheet information on the Time Entry Screen (unless there is a holiday that requires DAS Division of Finance State Payroll Section to run an update for payroll a day early).

Wednesday, following the last day of the pay period:
Dual employment time sheets are sent to the DAS Division of Finance State Payroll Section for data entry on the Time Entry Screen.

Monday before payday:
The DAS Division of Finance State Payroll Section runs preliminary payroll.

Tuesday before payday:
DAS Division of Finance State Payroll Section runs the final payroll and starts the process to generate the payroll warrants (paychecks).

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