Purpose

To define the terms and conditions under which voluntary and involuntary deductions will be made from employee paychecks.

Involuntary Deductions

The following deductions are required based on Federal or local laws and regulations:

Federal Income Tax

Employees must pay Federal tax on all wages earned. All employees are required to complete a Form W-4 upon employment. This form will be used to ensure that wages are taxed according to the tax tables regulated and approved by the Federal government. Employees wishing to change their withholdings must submit a new signed W-4. Changes in withholdings will commence at the beginning of the next payroll period following submission of the revised W-4.

Social Security/Medicare Taxes (FICA)

All employees are required to pay FICA taxes on all wages earned. The FICA tax is matched by the University and submitted to the Social Security Administration after each payroll. A portion of the tax funds the Social Security program which provides retirement and disability benefits. The remainder funds the Medicare program. These tax rates are mandated by the Federal government.

Retirement

All full-time employees on regular appointments are required to contribute to one of the two retirement programs offered by the University. See Section [Retirement]. Contributions are collected via payroll deduction and supplemented by an employer's contribution. The contribution rates are set by the V.I. Legislature and are subject to change.

Garnishments

The University is required by law to comply with terms and conditions of Territorial Court orders to garnish individual employee's wages. Employees will be notified by the Human Resources Manager when such court orders are received. The notification will include the amount to be deducted and the pay date upon which the deduction will begin.

Voluntary Deductions

Payments and/or contributions for the following may be made through voluntary payroll deduction:

Supplemental Insurance

All full-time employees on regular appointments are eligible to purchase supplemental insurance through the University's cafeteria plan.

Campus Housing

Rent and power payments for employees occupying campus housing will be deducted via payroll deduction unless otherwise agreed.

Credit Unions

University employees may contribute to any of the following credit unions:

• Christiansted Federal Credit Union - St. Croix
• Frederiksted Federal Credit Union - St. Croix
• Mid-Island Federal Credit Union - St. Croix
• St. Thomas/St. John Federal Credit Union - St Thomas

Government Employees Retirement System Loans

Participants in the Government Employees Retirement System may make loan payments for Automobile, Mortgage, Land or Personal loans through payroll deduction.

Group Health & Life Insurance

Eligible employees who choose to participate in the University's group insurance program will pay premiums by payroll deduction.

Emergency Air Ambulance
All full-time employees are eligible to enroll in the emergency air ambulance program. Premiums will be made through payroll deduction.

Supplemental Retirement Account

All full-time employees on regular appointments are eligible to apply for a TIAA/CREF supplemental retirement account. Contributions to these accounts are made via payroll deduction.

United Way

The University participates in the annual United Way campaign on St. Thomas/St. John and St. Croix. Employees may opt to have their contributions made through payroll deduction.

UVI Development Fund

The University encourages it's employees to contribute to the development of it's academic and other programs by contributing to the UVI Development Fund. Contributions may be made through payroll deduction.

Cafeteria Plan

The University of the Virgin Islands offers full-time employees the option of participating in its Cafeteria Plan. A cafeteria plan is a benefit program under which each employee has the opportunity to choose the particular eligible benefits he or she desires and pay for them on a pre-tax basis. This mean that the employee cost of eligible benefits are paid from the employee's salary before taxes (Federal and FICA) are calculated. Selections must be made prior to the beginning of each plan year (January 1) or when employment begins. Benefits elected under the Cafeteria Plan remain in effect for the entire plan year and can only be changed if there is a change in family status (i.e. marriage, divorce, death of a spouse or child, birth or adoption of a child, or termination of employment).

Pre-Tax Deductions

The qualified deductions offered through the cafeteria plan on a pre-tax basis include: up to $50,000 in Group Term Life Insurance, Group Health Insurance, Medical Air Services Association, and all Supplemental Health Insurance policies offered through the American Family Life Assurance Company.

Flexible Spending Accounts

All full-time employees can elect to open Flexible Spending Accounts under the University's Cafeteria Plan. A Flexible Spending Account allows an employee to redirect a portion of their salary into two specific types of expenses: Dependent Care and Unreimbursed Medical expenses. Contributions are made through payroll deduction on a pre-tax basis. By redirecting a part of their salary into a Flexible Spending Account, the employee's taxable income will be calculated after the elected amounts are deducted from their pay. The funds are retained by the University until the employee files a claim for a qualified reimbursement.