Township of Freehold, NJ Chapter 43 Payroll

[HISTORY: Adopted by the Township Committee of the Township of Freehold as indicated in article histories. Amendments noted where applicable.]

Article I Payroll Account

[Adopted 1-27-1969 (§ 2-7.3d of the Revised General Ordinances), as amended through Ord. No. O-91-37; amended in its entirety 5-24-2022 by Ord. No. O-22-8]

§ 43-1 Establishment.

There shall be an account to be designated the “Township of Freehold Payroll Account” and from time to time the Treasurer, on receipt of an amount due the Payroll Account, shall deposit it to the credit of the Payroll Account for the payment of all salaries and wages and related payroll taxes and deductions.

§ 43-2 Transfer of salary appropriation to Payroll Account.

The moneys appropriated or to be appropriated for such salaries and wages and related payroll taxes and deductions, under the budget and in accordance with the statutes and ordinances controlling the same, shall be transferred from the applicable funds to the Payroll Account at such times that disbursements are to be made for the processing of payroll.

§ 43-3 Disbursement by check; errors and adjustments.

Disbursement from the Payroll Account shall be made via direct deposit upon preaudit by the Treasurer and approval by the Township Committee of the entire payroll at the next succeeding meeting of the Township Committee. In case of error or adjustment in the payroll, the Treasurer shall make proper correction and appropriate record thereof.

Article II Third-Party Payroll Disbursement

[Adopted 2-27-2007 by Ord. No. O-07-2]

§ 43-4 Purpose; definitions.

A. The purpose and intent of these regulations is to abide by the requirements of N.J.S.A. 52:27D-20.1 and N.J.A.C. 5:30-17.1 et seq., governing electronic disbursement controls for payroll purposes.

B. Definitions. As used in this chapter, the following terms shall have the meanings indicated:

APPROVAL OFFICER

Person(s) responsible for authorizing and supervising the activities of the payroll service.

PAYROLL SERVICE

Third-party payroll service organization.

TOWNSHIP

Township of Freehold.

§ 43-5 Authorization.

A. The Township is authorized to use a payroll service for the following activities:

[Amended 5-24-2022 by Ord. No. O-22-8]

(1) To prepare the necessary payment documentation and execute disbursements from the local unit's bank account on behalf of the local unit;

(2) To prepare payment documentation, take possession of local unit funds, and make such disbursements itself on behalf of a local unit; or

(3) Any combination of Subsections A(1) and (2) above.

B. The following payroll service providers shall be required to comply with these regulations:

(1) Payroll service providers who use their own customized programming process to execute disbursements for the local unit;

(2) Payroll service providers who use a third-party processor to execute disbursements for the local unit.

§ 43-6 Local unit requirements.

A. The appointment of a payroll service shall be pursuant to the Local Public Contracts Law,[1] and shall require the contractor to do the following, not by way of limitation: data collection, agency report preparation, calculation of withholding, direct deposit of payroll disbursements, and/or local unit transfer of funds to the account of the payroll service for subsequent disbursement of payment.

[Amended 5-24-2022 by Ord. No. O-22-8]

[1] Editor's Note: See N.J.S.A. 40A:11-1 et seq.

B. Any renewal or extension of a contract under these regulations shall be by resolution.

C. The Chief Financial Officer is hereby appointed the approval officer and is responsible for authorizing and supervising the activities of the payroll service and shall further be charged with the reconciliation and analysis of all general ledger accounts affected by the activities of the disbursing organization.

D. If required by the contract between the Township and the payroll service, the payroll service is permitted to hold Township funds pending transmittal to a payee.

§ 43-7 Payroll service requirements.

A. A payroll service must meet all of the following requirements:

(1) Report any irregularities that may indicate potential fraud, noncompliance with appropriate laws, dishonesty or gross incompetence on the part of the approval officer;

(2) Report circumstances that could jeopardize its ability to continue operations or otherwise interrupt the services provided to the Township.

B. A payroll service must meet the requirements of N.J.A.C. 5:30-17.5.

C. All contracts entered into pursuant to these regulations and the laws authorizing same shall comply with the requirements of N.J.A.C. 5:30-17.6.

§ 43-8 Establishment of service.

Upon the adoption of these regulations, the Township Administrator, with the assistance of the Chief Financial Officer and Township Attorney, as necessary, is hereby authorized and directed to enter into a contract for payroll service in accordance with all local public contracting laws and N.J.A.C. 5:30-17. Appointment of the payroll service shall be by separate resolution of the Township.