New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 30 - LOCAL FINANCE BOARD
Subchapter 17 - ELECTRONIC DISBURSEMENT CONTROLS FOR AUTHORIZED THIRD-PARTY DISBURSEMENT SERVICES
Section 5:30-17.3 - Authorization to use a third-party disbursement service organization for payroll and other specified purposes

Universal Citation: NJ Admin Code 5:30-17.3

Current through Register Vol. 56, No. 18, September 16, 2024

(a) The governing body of a local unit may enact policies for contracting with a disbursing organization to process payroll and utility bill disbursements on its behalf. Such policies shall be formally authorized by ordinance or resolution of the governing body, as appropriate to the form of government and shall specify the tasks that may be performed by a disbursing organization. Such policies may involve the use of a disbursing organization:

1. To prepare the necessary payroll payment documentation and execute disbursements from the local unit's bank account on behalf of the local unit;

2. To audit, consolidate, and pay utility bills to ensure compliance with tariffs and usage records;

3. To prepare payment documentation, take possession of local unit funds, and make such disbursements itself on behalf of a local unit for (a)1 and/or 2 above; or

4. Any combination of paragraphs (a)1 and/or 2, and 3, above.

(b) This subchapter applies to disbursing organizations and local units who contract with one another for the determination and disbursement of: payroll and related funds, and energy tracking and utility bill management systems.

1. The following service providers are not required to comply with this subchapter:
i. Payroll service providers that perform payroll calculations and do not control the disbursement of payroll funds; and

ii. Tax pay and file service providers that are certified users of the Electronic Federal Tax Payment System (EFTPS) batch filer program and the State of New Jersey EFTPS batch filer program, that do not release, transfer or otherwise execute disbursements of the local unit.

2. The following service providers are required to comply with this subchapter:
i. Payroll service providers who use their own customized programming process to execute disbursements for the local unit; and

ii. Payroll service providers who use a third party processor to execute disbursement for the local unit.

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