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.