Task P Six: Planning Personnel Issues

This is one of the most important areas of decision-making. Changes in personnel policies range from none to completely new policies. Here are the different kinds of changes that can occur.

Little or No Change

This occurs in the following instances:

When all libraries in the new district were already operating under the same administrative unity.

When the new district does not operate a library, but contracts with an existing library for services.

In these cases, all the district's personnel are employed under a previously established library or administrative structure. Salaries and benefits remain the same. If the name doesn't change, then no further work is needed.

If the name is changed, then the new name will need to be reported to federal and state income tax agencies, the state insurance fund for workers compensation, and the state department of employment for unemployment insurance coverage. Insurance and other companies providing personnel benefits will need to be notified of the legal name change.

Creating a New Personnel System

This occurs:

When a new district is established where no library existed before, and the district will operate its own library.

Consider a salary structure by checking with other libraries in the area to see what they are paying for particular jobs. Look at similar jobs in your community, as you will be competing with other community employers for employees.

Establish the following required accounts:

Federal income tax accounts

State income tax accounts

Social security

Workers compensation

Unemployment insurance

Examine the following as possible benefits:

Health insurance

Life insurance

Retirement usually through the Public Employee Retirement Administration (PERA)

Final decisions will be made by the new board, based upon recommendations of the group.

Transfer from a City/County to a District Personnel System

This occurs:

When a city or county library becomes a district library.

Establish the following required accounts:

Federal income tax accounts

State income tax accounts

Social security

Workers compensation

Unemployment insurance

Examine the following as possible benefits:

Health insurance

Life insurance

Retirement usually through the Public Employee Retirement Administration (PERA)

You must reach agreements with the city or county about transferring employees from city or county to district payroll. Avoid confusion by having a written memorandum of agreement with the city or county. [ Planning Phase Form C: Sample Memorandum of Agreement with City at the end of this section.]

Combining Personnel Policies

This occurs:

When two or more existing libraries that have not shared a common administrative structure combine or consolidate.

Decide what personnel policies to recommend to the new district board. Develop a plan for integrating various staffs of existing libraries into one staff for a new district. Negotiate this before attempting to legally create the district.

Changes in personnel can involve very delicate negotiations. Staff members who once worked as library directors will have to work under the supervision of a district library director. The combination of a number of libraries may mean that some employees may lose benefits, because a district library may not be able to afford insurance.

Examine potential loss of autonomy and benefits of personnel at each of the libraries that are thinking of joining the district. The prospect of losing autonomy or benefits may cause employees to oppose the districting effort, thereby endangering the process. Remember current staff will be understandably concerned about changes planned for library service for now and the future. Make every effort to insure minimal changes to employees but keep in mind the goals of the changes.

Compare what the "member" libraries of the new district provide for salary and benefit packages to determine what salary and benefits should be offered in the new district. [See  Planning Phase Form D:

Personnel Comparisons at the end of this section.]

Begin the administrative work necessary to transfer income tax accounts, social security, workers compensation, unemployment, and other accounts as necessary.

Only the new district board will be able to finalize any of these policies. The group makes recommendations to the board.

General Information on Personnel Administration and Benefits

It is not possible to cover all aspects of personnel administration for a new district, but the following might be useful:

Federal Income Tax, Social Security and Medicare. Register as an employer with the Internal Revenue Service and file W-4 forms for all employees. Upon doing so, you will receive a federal tax number and deposit coupon book. Payments for federal income tax withholding, social security and Medicare are made using this book. For your convenience, you can apply for a Federal Identification Number by contacting the regional Internal Revenue Service Office at 1-800-829-1040 or visiting this site.

The new district will need to fill out and keep on file "Employment Eligibility Verification: (I-9 Form) forms for the Department of Immigration and Naturalization. These forms are available by calling 1-800-375-5283 or you can download them from the Department's website at  http://www.uscis.gov/

State Income Tax. Register as an employer with the State of Montana Department of Revenue. Upon doing so, you will receive a state income tax number. Call 1-866-859-2254 or visit this site to register online.

Worker's Compensation. Register as an employer with the Department of Revenue and begin paying for worker's compensation. You can contact your local insurance carrier to arrange for worker's compensation coverage. For more information contact the Department of Labor & Industry at (406) 444-2840.

Unemployment Insurance. Purchase unemployment insurance. For information about purchasing unemployment insurance, contact the Unemployment Insurance Division of the Department of Labor and Industry at (406) 444-3834 or by visiting http://uid.dli.mt.gov/.

Optional Benefits

Public Employees Retirement Administration (PERA). PERA is the retirement program for Montana state employees. Local government entities can also become members of PERA. You are not required to participate, but if you wish to look at this option contact the Montana Public Employee Retirement Administration at (406) 444-3154 or 1-877-ASK-PERB (1-877-275-7372).

Health Insurance. Contact the county clerk for ideas on how to obtain health and/or life insurance. The district may be unable to pay for these benefits on its own. Consider partnering with another entity to obtain these benefits.