NAVIGATING THE MAZE OF NEW HIRE PAPERWORK

December 2, 2005 NAVIGATING THE MAZE OF NEW HIRE PAPERWORK PRESENTED BY: Tom Beerheide Sunset Ridge School District 29, Northfield, IL Direct Line: 847-881-9460 Email: beerheit@sunset.k12.il.us Illinois ASBO 13th Annual Educational Support Professionals’ Conference

Why a Checklist? • Record keeping • Tracking purposes • Quick reference guide • Helps create a smooth first day experience for both the new employee and the district’s departments • Eliminates duplication of tasks

A New Employee - Where to Begin? • Employment application should be completed by new employee if not already done so • Resume and transcript(s) should be on file (typically necessary for Board Packet) • Copy of Social Security card or Driver’s License (preferably both)

New Hire Form • Employee’s Full Name • Date Hired/Started • Address and important telephone numbers • Social Security No. • Date of Birth • Position • Full Time Equivalent (FTE) • Location • Salary/Rate of Pay (This form can be substituted and used as a Change of Status form also)

Form W-4 • Make sure employee has signed and dated the form • If Marital Status is not indicated – withhold at the Single rate • If no W-4 is submitted, withhold at single, zero • Employer must keep copy on file (See IRS Publication 505 for more details on tax withholding and form W-4)

Form W-4 Cont. • An employee can claim exemption if both of the following situations apply: • For 2005 employee had right to refund of all FIT withheld because he/she had no tax liability • For 2006 employee expects a refund of all FIT withheld because he/she expects to have no tax liability • An exemption is good for only 1 year. Employee must submit a new W-4 by February 15th of following year to continue exemption

Form W-4 Cont. • No longer required to send copies of questionable W-4’s however, they are still subject to review if directed to do so in a written notice by the IRS. (i.e. claiming 10 allowances, etc.) • Do not tell an employee what to claim only advise • Refer them to Publication 919, “How do I Adjust My Tax Withholding?” and to the withholding calculator available on www.irs.gov

Form IL W-4 • Employer must keep copy on file • Form IL-W-5-NR – Employee’s Statement of Nonresidence in Illinois • Employees who reside in Iowa, Kentucky, Michigan and Wisconsin must complete this form to be exempt from SIT withholding requirements. If your employee does not complete this form, you must withhold Illinois Income Tax. • See Booklet Il – 700 – Illinois Withholding Tax Guide (www.revenue.state.il.us/Forms/IL700.PDF)

Direct Deposit Form • Employee Benefits include: • No more special trips to the bank or waiting in long lines to cash or deposit paycheck • No possibility that your paycheck may be lost or stolen • Payroll information is more confidential (Decreases chances of identity theft) • No special arrangements or fear of missing a payday if on vacation or sick • Funds begin earning interest and are available for use on payday • Paycheck will not get lost in mail and there is no waiting for mail to arrive

403b and 457 Providers • Listing of all 403b and 457 Vendors approved by Board of Education • Distribute to ALL employees • Authorization from Employee (Salary Reduction Agreement) • For 2005 maximum contribution is $14,000 into each type

Form SSA-1945 • TRS covered employees are not covered by Social Security but rather public retirement system • Explains how a pension could reduce Social Security Benefits because of the Windfall Elimination Provision and Government Pension Offset Provision • Any certified employee hired after 1/1/05 must read and sign • www.socialsecurity.gov/form1945 or 800-772-1213 • Social Security Number = Employee’s ID # • TRS Employer # = Employer’s ID # • Must mail copy of signed form to TRS

INS Form I-9 – Employment Eligibility Verification Form • Requirement of the Immigration and Naturalization Service • Applies to any employee hired after 11/6/1986 • Must be completed within 3 days of hire date • Employee must present documentation to establish identity and work authorization (acceptable documents listed on form)

INS Form I-9 (Cont.) • Check for expired documents • Retain for 3 years after date of hire or 1 year after termination of employment • Not required to keep copies of eligibility documentation • Keep I-9 forms in separate file

Criminal History Background Check • Perform pre-employment background checks on all job applicants • Ask specific and thorough questions on the application; allows for easy termination if proven later employee lied on application • Background check tips: • Get specific and word questions carefully • Ask references to complete parts of form • Warn applicant about lying on application • Use Google to research applicant • Follow up on applicant’s history • Review District’s background investigation policies regularly • Thorough background checks can help to prevent expensive negligence lawsuits and harm done to any child

Criminal History Background Investigation Form • Required by Illinois law • ALL employees (including substitutes) • Districts must either do a criminal history or fingerprint check but not both • Contact local police department about Live Scan fingerprinting technology • According to HB 3977 all applicants must now undergo a fingerprint based criminal history records check

Criminal History Background Investigation Form (Cont.) • Can be done electronically with the Illinois State Police: • Decrypter Software called FEESUB (www.isp.state.il.us/services/convictioninquiries.cfm) • Security • Based on Name, Sex, Race, Birth Date • Employer notified if a “hit” is found • Finger-Print sheet is sent to employer

Child Abuse Form Acknowledgment of Mandated Reporter Status from the Department of Children and Family Services Statutory Requirement • Requires employee to report any incidents of child abuse or neglect or face penalties • District may require employee to complete their form in addition

Drug and Alcohol Policy • Required by the Drug-Free Schools and Community Act of 1986 and the Drug-Free Workplace Act of 1988 • District may require employee to sign-off on policy after review • Illinois school districts are required to establish a drug and alcohol use policy

Sexual Harassment Policy • Protects District from potential law suits • Encourages and fosters appropriate conduct among employees • Distributed to all employees in the District • District may require employee to sign-off on policy after review

House Bill 3451 • Became law 7/14/05 • All school districts must perform a check of the Statewide Sex Offender Database for each applicant for employment • www.isp.state.il.us/sor/sor.cfm • National Sex Offender Public Registry: www.nsopr.gov

Certificate of Physical Fitness and Immunity from Communicable Disease • Employee must submit statement from physician indicating he/she is free of communicable disease and is physically fit to engage in their assignment • Employee must provide employer a copy of the results of either a skin test or a chest x-ray from his/her tuberculosis exam

Network ID Application • Establishes network ID/Login connection for employee • Assigns email address • Sets forth the “Acceptable Use Standards”

Benefits - Agenda • Know Your Benefits • Benefit Meetings/Communications • Benefit Materials – Checklist • Processing Enrollments • Online Services • Legislation – Medicare D, HIPAA, COBRA

Know Your Benefits • Who are your Providers? • Are your Forms up to Date? • Do you have enough Benefit Booklets? • Who are your contacts? • Basic Plan Summary – Comparisons • Timely Enrollment • Type of Employee • Full-time or Part-time

Benefit Meetings/Communications • Give overview of benefit programs and furnish corresponding benefit materials: • Health/Section 125 • Dental • Vision • Life/AD&D • Disability • Flexible Spending Accounts • Employee Assistance Plans (EAP) • Sick, Personal, Vacation Days • Stress employee’s ownership of benefit plans – participation is a responsibility!

Benefit Materials - Checklist • Enrollment forms (Medical, Dental, Rx, etc.) • Plan Description Booklets - required by law • Online Resources – Provider & District Websites • ID Cards (typically furnished by carrier/TPA) • Copy of Medicare D Certificate of Creditable Coverage • Copy of COBRA rights & obligations • Copy of HIPAA regulations • Copy of Flexible Spending Plan Document • Waiver of Coverage/Signature

Processing Enrollments • Check that forms are complete and signed • Submit online, by fax or mail • Send employee a copy of all enrollment forms with verification memo • Check insurance bills to verify employees are enrolled

Online Services Advantages: • Changes done in real time • Start a transaction, save it and complete at a later time • Decrease time spent on phone calls • Receive reports online • Employees have access to care quicker • Employees receive their ID cards quicker

Online Services Cont. Membership Capabilities: • Membership maintenance • Enroll a new employee • Add a dependent • Cancel & reinstate a member • Change name/address for a member • Request an id card

What are the responsibilities of my organization under Medicare D?

Medicare D Overview & Responsibilities Overview: • Effective January 1, 2006 for people with Medicare • Provides prescription drug coverage subject to deductible and coinsurance Responsibilities: • By November 15, 2005 – All eligible employees and retirees must be notified whether or not the employer drug coverage is actuarially equivalent to Medicare D (Certificate of creditable coverage) • New hires will need to be provided a certificate of creditable coverage • www.medicare.gov

What are the responsibilities of my organization under HIPAA when hiring a new employee?

HIPAA Overview & Responsibilities HIPAA – Health Insurance Portability and Accountability Act Overview: • HIPAA provides rights and protections for participants and beneficiaries in group health plans. Responsibilities: • Disclose your health plan’s pre-existing condition limitation & provide notice of the ability of employee to offset limitation with creditable coverage • Offer employee assistance in obtaining a certificate of creditable coverage

What does my organization need to know about COBRA when a member begins coverage?

COBRA Overview & Responsibilities COBRA - Consolidated Omnibus Budget Reconciliation Act Overview: • COBRA gives workers and their families who lose their health benefits the right to choose to continue benefits provided by their group health plan for limited periods of time under certain circumstances. • Circumstances include voluntary/involuntary job loss, reduction in hours worked, transition between jobs, death, divorce, and other life events. Responsibilities: • A general COBRA notice, including a description of the rules relating to preexisting conditions, must be provided when coverage begins. • Employers and plan administrators should mail notice of COBRA rights to the last known address of the qualified beneficiary. • Posting notice at the employer’s place of business is not adequate.

Teachers’ Retirement System • Certified Employees: • Teachers’ Retirement System of the State of Illinois

Teachers’ Retirement System (Cont.) • TRS Beneficiary Designation Form • 2.2 and Optional Service Credit forms (must renew these forms if coming from another district and was paying in at that district) • Retired members – No TRS Deduction (Certain rules apply - Public Act 93-0320 is a recent law that will allow some TRS annuitants to return to full-time, TRS-covered employment without loss of their pensions — but only in subject areas where the regional superintendent of schools certifies that a personnel shortage exists. The act is a five-year program that expires on June 30, 2008. ) (Above forms must be mailed or faxed to TRS and cannot be completed on-line)

Teachers’ Retirement System Website • www.trs.state.il.us • Remit payments on-line using the web- based remittance system • Download and print forms and publications • Obtain legislative information • Sick leave reporting facts and information

Illinois Municipal Retirement Fund • Educational Support Personnel: • Illinois Municipal Retirement System • Notice of Enrollment in IMRF (IMRF Form 6.10) • 4.5% Employee Contribution • Employer contribution based on actuarial costs for retirement, death, and disability payments • Designation of Beneficiary (IMRF Form 6.11) • To qualify employee must work 600 hours • Unused, unpaid sick days count towards additional service credit (240 days = 1 year credit) (Above forms must be mailed or faxed to IMRF and cannot be completed on-line)

Log-in to Member Access View wages and contributions Calculate pension estimate View address Submit changes to member’s information View death benefit estimate View years and months of service credit Download and print forms and publications Electronically submit forms Termination Member Information Changes Adjustment of Earnings Certificate of Disability Transmit Monthly wage report Monthly Deposit Summary Display employer contribution rates Monthly reminders IMRF Website

The New Hire Registry • New Hire Reporting Law (enacted October 1, 1997) requires employers to report all new employees within 20 days of their date of hire • Includes full-time, part-time, temporary (substitute) and rehires • Aids in tracking down parents who owe child support, unemployment claims

The New Hire Registry (Cont.) • Employers have the options of submitting information via: • the New Hire Reporting form provided by the Illinois Department of Employment Security; (can be downloaded at www.ides.state.il.us/employer/newhire/newhire2.pdf) • copies of the employee's W-4 form, with all information completed legibly, including the employer information; • a separate listing of new employees, with the required data; or • electronic or magnetic submission of data, reported twice monthly • Reports may be sent via first class mail, faxed, or emailed to the IDES.

The New Hire Registry (Cont.) • Required data includes – • Employee’s name, address, social security number, hire date, employer’s name, address, and FEIN • Mail New Hire Reports via first class: Illinois New Hire Directory P.O. Box 19473 Springfield, IL 62794-9473 • Fax data to: 1-217-557-1947 (24-hour fax line) • Email data to: NHire@ides.state.il.us • For information on the file format for reporting via magnetic tape, cartridge or diskette call 312-793-9856

Calendar of Pay Dates

Social Security Number Verification • Website: www.socialsecurity.gov/employer/ssnv.htm • Only use after employee(s) are hired • Requires pin and password to access • Direct keying of up to 10 names/SS#’s with immediate results • If name does not match: • Check for typographical error • Check actual Social Security card • Ask employee to contact Social Security to resolve • Maintain consistent company policy and treat all employees the same • Telephone Verification – 1-800-772-6270 • Up to five names and numbers

Things You Should Know • 2005 Social Security Wage Base = $90,000 • Social Security Tax = 6.2% • Medicare Tax = 1.45% • 2005 Mileage Rate = 48.5 cents per mile • IRS recommends that new W-4’s be distributed to all employees annually by Feb. 15 • Keep 403b/457 Salary Reduction Agreements in separate folders in case of IRS audit

Security Issues • Arrange time for picture ID for ID Badge • Record and assign building access key

Are We Done Yet? • All new hires must complete Bloodborne Pathogen training • Telephone training, extension, and authorization of voice mail box • Attendance procedures (i.e. whoto call for sub, leave of absence form) • School Calendar

Summary • Stay Organized! • For New Hires - Have fun as this is a great way to meet new people in the organization • Carefully review all forms for mistakes • Continue to streamline processes

NAVIGATING THE MAZE OF NEW HIRE PAPERWORK