[HISTORY: Adopted by the Township Committee of the Township of Readington as indicated in article histories. Amendments noted where applicable.]
Article I Third-Party Payroll Disbursement
[Adopted 8-4-2014 by Ord. No. 16-2014]
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.
Definitions. As used in this article, the following terms shall have the meanings indicated:
- APPROVAL OFFICER
- The person(s) responsible for authorizing and supervising the activities of the payroll service.
- PAYROLL SERVICE
- A third-party payroll service organization.
- The Township of Readington.
The Township is authorized to use a payroll service to prepare payment documentation, take possession of Township funds, and make such disbursements itself on behalf of the Township.
The following payroll service providers shall be required to comply with these regulations:
The appointment of a payroll service shall be pursuant to the Local Public Contracts Law (See N.J.S.A. 40A:11-1 et seq.) 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 transfer of Township funds to the contractor's account for subsequent disbursement of payment.
Any renewal or extension of a contract under these regulations shall be by resolution.
The Chief Financial Officer and/or Treasurer 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.
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.
A payroll service must meet all of the following requirements:
Report any irregularities that may indicate potential fraud, noncompliance with appropriate laws, dishonesty or gross incompetence on the part of the approval officer;
Report circumstances that could jeopardize its ability to continue operations or otherwise interrupt the services provided to the Township.
A payroll service must meet the requirements of N.J.A.C. 5:30-17.5, requiring that the approval officer be assured that the servicer has its own internal controls and appropriately guard against theft and other adverse conditions.
All contracts entered into pursuant to these regulations and the laws authorizing the same shall comply with the requirements of N.J.A.C. 5:30-17.6, which sets out a series of mandatory contractual terms and conditions.
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.