Movement Between Employee/Non-Employee

Movement of salary and fringes between employee and non-employee has potential tax implications and cannot be handled via a payroll cost transfer (PCT).

  • Moving from employee to non-employee could result in the need to refund taxes, while moving from non-employee to employee would result in the need to collect back taxes from the employee.  In both cases, if calendar years are crossed, a W-2c and new stipend letter would be necessary.  In addition, the employee may need to file an amended tax return.
  • Employees have pre-tax deductions, while non-employees have after tax deductions.

If a change between pay groups is needed, an authorized letter from the department head must be sent to Payroll Services.

Job Data must reflect changes before payroll adjustments can be processed.