4-80-030 Payroll Action Notice (PAN) Procedures

(1) General Statement. The actual workflow for a PAN may change as new systems are adopted, i.e., when going from a paper-based system to an electronic one or when modifying an existing, electronic PAN workflow to increase efficiency. Care should be taken when making such modifications in order to ensure that PAN authorizations are performed by those who have been granted the authority to make such authorizations and to ensure appropriate separations of duties are maintained.

(2) PAN Deadlines. PANs must be received in Finance Department no later than Thursday at noon of the week prior to the actual pay date. Late submissions will not be processed and will result in the paycheck or adjustments being processed on a later pay date.

(3) The general steps for any PAN are:

(a) Initiate the PAN.

(b) Route PAN for authorizations.

(c) Update the payroll system as directed by the PAN.

(a) Human Resources will initiate the PAN for:

(i) New and returning employees.

(ii) Change in employees’ status (from part-time to full-time, full-time to part-time, regular to seasonal, seasonal to regular, leave of absence, separation, etc.).

(iii) Changes in employees’ pay rate.

(iv) Changes in employees’ tax withholdings as noted on IRS Form W-4.

(v) Changes in employees’ benefit selections.

(vi) Changes in employees’ deductions for health insurance, retirement contributions, garnishments, etc.

(vii) Changes in grant code an employee is authorized to work in.

(b) PANs may be initiated by Supervisors of one or more employees:

(i) As new systems are developed and implemented, it may be more practical and efficient for Supervisors to initiate a PAN rather than Human Resources.

(ii) As new systems are implemented, Human Resources will train and supervise authorized PAN initiators to operate that system.

(iii) Human Resources will provide oversight for all PANs processed regardless of system in use.

(i) PAN authorization workflows should be designed so that the appropriate employees are performing authorizations of PANs that are flowing through the system.

(ii) Given the following that:

(A) Council approves each job description as they are created, or their amendments when material;

(B) Council approves each grant application that includes budgets;

(C) Most budgets have employee costs in them;

(D) The General Manager or Tribal Administrator and Controller review and approve those budgets as are part of grant application process;

(E) It may be practical to reduce the number of Senior Management that are authorizing each PAN that is processed through the system.

(F) For example, when employee deduction amounts change as a result of changes in health insurance rates, there is no real value added for the General Manager or Tribal Administrator or Controller to authorize such a PAN as the dollar change only effects the employee’s deduction amount from their paycheck.

(i) The PAN will be initiated by either Human Resources or the Supervisor.

(ii) Depending upon the action indicated on the PAN, it may take several differing routes. These routes will be appropriately designed, documented, and modified as needed in a PAN Authorization Routing procedural document. Samish’s Senior Team is responsible, and authorized, to design and modify this routing document as needed. Final publishing of the document requires unanimous approval of the Senior Team.

(a) Finance Department staff will process a fully authorized PAN once it is in their queue.

(b) See PAN deadlines for handling of late PANs. [Res. 2021-02-015 § 2 (Att. 1), 2021.]