Salaried Employee Pay

It is the policy of the State of North Carolina that certain types of pay will be utilized by the payroll system which differentiate between appointment type and years of service. Certain employees are considered salaried employees by the payroll system and processed accordingly.

G.S. 126 State Personnel System

G.S. 143B-426.39 Powers and Duties of the State Controller

State Personnel Manual

Salaried positions include full-time or part-time employees in permanent, time-limited, probationary, and trainee positions.  Salaried positions are either Exempt from the Personnel Act (EPA) or Subject to the Personnel Act (SPA).  For EPA employees, State Personnel policies concerning hiring, removal from a position and appeal rights do not apply. 

Salaried employees are processed on a repeating payroll and paid on the monthly payroll cycle.  Benefits for salaried employees vary, based on the amount of time worked.  Full-time salaried employees earn all regular state employee benefits.  Other levels of employment include the following:

• Working 30 - 39 Hours per Week for at Least 9 Months:  Employees earn prorated leave benefits, total state service credit, retirement credit, health benefits and, when applicable, severance pay and priority re-employment consideration.

• Working 20 - 29 Hours per Week:  Employees earn prorated leave benefits, total state service credit and, when applicable, severance pay and priority re-employment consideration.  Employees do not receive retirement credit or health benefits, but may belong to the group health plan by paying the total insurance premium themselves.

• Working Less than 20 Hours per Week:  Employees earn no benefits, and if the employee's work schedule is irregular, or the employee has no set work schedule, then these positions may be paid as hourly employees instead of salaried employees.  Payments to hourly employees are processed on the mid-month temporary payroll.

Each type of salaried position should be coded to the correct account when processed on the State Personnel System and on the Central Payroll System to ensure uniformity of financial reporting.  The statewide chart of accounts related to salaried EPA positions is shown below:

A different chart of accounts is used to record salaried SPA positions:

Salaried employees are taxed according to the exemptions claimed on W-4 and NC-4 withholding forms.

For information on the statewide chart of account definitions, refer to:

http://www.ncosc.net/sigdocs/sig_docs/data_elements/account/sigExpenditure_Accounts.html

This policy applies to all State entities using the Central Payroll System.

There are no exceptions to this policy.

There are no special terms for this policy.