Personnel Rules and Regulations

Appendix 9 — Payroll Deductions

Payroll deduction is offered as a service to benefit employees.  Payroll deduction is available for legally mandated deductions and deductions associated with City-sponsored programs.  Payroll deduction is also available for the membership dues for employee organizations/associations and other services as approved under the guidelines that follow.  Employees may authorize or cancel a payroll deduction by completing and signing a payroll deduction and cancellation card. (Revised July 1, 2003) 

Employee organizations/associations must be chartered by the State to qualify for the payroll deduction service.  There is no minimum membership requirement, however, administrative charges for the service may be higher if membership is small.  Employees will be assessed a minimum charge each payday for each deduction. No changes will be made to an employee’s payroll deduction without the signature of the employee. (Revised 2-10-06) 

Businesses approved for payroll deduction will be assessed an  initial setup charge,  a service fee for each deduction each payday, and an individual service fee for each employee's deduction for each pay period. (Revised January 26, 2001).  At least 200 employees must be enrolled for a business to qualify for payroll deduction.  If enrollment falls below 150 employees, the business has 60 days to meet the 200 employee requirement to avoid termination of the service.  The City Manager or designee may approve exceptions to private vendors not meeting the 200-rule if the services or products help to achieve the City’s strategic goals. (Revised July 1, 2003) 

Businesses may submit payroll deduction requests to the Human Resources Director. Requests to provide services through payroll deduction shall be evaluated on the nature and amount (discount) of the benefit to employees and the nature and appropriateness of the service for administration utilizing City systems and personnel.  Consideration will also be given to the availability of the service through other sources, anticipated level of employee interest in the service, impact on the City’s administration system and personnel, and level of work disruption to market the service to employees.  The City reserves the right to limit the approval to a reasonable number of providers with duplicate services. (Revised July 1, 2003) 

The Employee Insurance and Benefits Advisory Committee may be consulted to review the request.  The City Manager or designee will make final decisions. (Revised July 1, 2003) 

The City reserves the right to withdraw payroll deduction privileges with sixty (60) days advance notice when deemed in the best interest of the City.