Presentation on theme: "Information Workshop Fall 2012 Bi weekly Pay Conversion."— Presentation transcript:
Information Workshop Fall 2012 Bi weekly Pay Conversion
What is biweekly pay? Why, who and when How will this affect my pay? Preparing for the transition to biweekly pay Transition Assistance Program (TAP) Pay Cycle Calendar Time Reporting Leave Accruals Resources Additional Training for PPS and Time Reporting Topics
A biweekly pay cycle consists of 10 working days (2 weeks), Sunday through Saturday Employees receive pay every 2 weeks, on every other Wednesday Pay includes time worked, leave time used, paid overtime earned, & other ancillary pay (shift differential, on-call, etc.) Leave usage is reported in current pay period 26 paychecks per year What is biweekly pay?
Biweekly Pay Cycle Sample Paycheck is issued 11 days after the pay period ends (PPE) Pay is every other week, NOT twice a (calendar) month Actual pay dates will vary month to month Most months will have 2 paydays, but some will have 3
Monthly & Biweekly Comparison Monthly Pay CycleBiweekly Pay Cycle Pay Cycle 1 st to last day of the month Pay day is current Sunday to Saturday, two-week period Pay day is 11 days later Paychecks per Year 1226 Paycheck Date 1 st of the monthEvery other Wednesday Pay for Overtime, Shift, On Call, Etc. Paid one month after earned, or in a separate check Paid in biweekly check when earned Employees in Pay Cycle Employees who ARE NOT eligible for overtime, shift, on call, etc. Employees who ARE eligible for overtime, shift, on call, etc. and/or work variable hours Leave Usage Reported one month in arrearsReported in the current leave accrual cycle
Standardize payroll cycles across all UC locations as part of UCPath More efficient and effective time reporting Reduction in manual adjustments Overtime payments will be more timely Vacation and sick leave balances will be current Why move to biweekly pay?
Non-Exempt Employees Currently monthly-paid employees who are eligible for overtime, shift, on-call pay Examples: Student Affairs Officer I, Analyst II, CNT II, etc. Hourly-paid employees who report actual time worked Examples: (Staff) Student Assistant series, Limited appointments Transition to biweekly pay for exclusively represented employees is subject to collective bargaining. UC Path web site will provide updated information on the status of this decision pending discussions or negotiations with the exclusive representatives. http://www.pmo.ucsb.edu/projects/biweekly-pay-overview http://www.pmo.ucsb.edu/projects/biweekly-pay-overview Who will move to biweekly pay?
Academic Employees Exempt Staff Employees Currently monthly-paid employees who are NOT eligible for overtime, shift, on-call pay Examples: Student Affairs Officer III, Analyst IV, etc. Who will remain on monthly pay?
Sunday, January 20, 2013 When will the first biweekly cycle begin?
When will biweekly pay start? Paycheck DatePaycheckPay Period January 2, 2013Last full monthly paycheck December 1 - 31, 2012 (21 work days) February 1, 2013Last partial monthly paycheck January 1 - 19, 2013 (14 work days) February 13, 2013First biweekly checkJanuary 20 - February 2, 2013 (10 work days)
Pay will be based on an hourly rate, rather than monthly Hourly rate calculation Monthly rate divided by 174 (average work hours/month), OR Annual rate divided by 2088 (total work hours/year) Examples $3,000.00 per month ÷ 174 = $17.24 per hour $36,000.00 per year ÷ 2088 = $17.24 per hour How will my pay be calculated?
Payroll deductions will change Percent-based deductions will be deducted from every paycheck Examples: Taxes, retirement contributions, etc. Flat-dollar deductions will be split across 2 biweekly paychecks Examples: Insurance premiums, parking, etc. For months with 3 pay cycles, the 3 rd paycheck (paid the following month) will have NO flat-dollar deductions (but will still contain percent-based deductions). This paycheck is referred to as a benefit holiday In 2013 there will be 2 benefit holiday paychecks: April 10 September 11 How will the pay schedule change affect my paycheck?
Review your personal budget and determine your income needs based upon the biweekly pay cycle. Review and make any changes to automatic payments or deductions you have scheduled. Adjust your automatic withdrawal or bill-pay dates to align with your new pay dates. Consider adjusting your 403(b) or 457(b) contributions temporarily during the transition period. Use the paycheck calculator at: www.pmo.ucsb.edu/projects/biweekly-pay-overview How do I prepare for the transition?
What if after my review I find that I may not be able to meet my financial obligations during the transition?
Personal Loan Vacation Cash Out * At this time, non-represented employees (99) who meet the eligibility criteria for the Biweekly Pay Transition Assistance Program may utilize the program. Participation of exclusively represented employees is subject to collective bargaining. This information will be updated pending discussions or negotiations with the exclusive representatives of affected employees. Transition Assistance Program (TAP)*
Any non-exempt employee converting to Biweekly pay cycle Includes probationary and non-probationary Career, Contract, Limited and Per Diem employees Active Status Appointment of 50% or more On payroll as of November 1, 2012 No known separation date prior to August 18, 2013 Who is eligible for TAP?
Short-term, interest-free personal loan from the University Minimum of $100 Maximum of $1,000 To be included in February 1, 2013 paycheck Repayment in 12 equal installments (thru regular paychecks) First repayment deduction will be in March 13, 2013 paycheck No pre-payment penalty if paid back earlier If employee separates from University during repayment period, remaining loan balance is due and payable from final paycheck Personal Loan
Cash out up to 80 hours of accrued vacation Whole hour increments To be included in February 1, 2013 paycheck No repayment – cash out only Vacation Cash Out
Applications are available online www.pmo.ucsb.edu/projects/biweekly-pay-overview Application window Opens November 13, 2012 Closes 4:00 p.m., January 10, 2013 Submit applications to: Edna Arellano in Human Resources Mail Code 3160 Email email@example.com@hr.ucsb.edu Phone ext. 4048 How to apply
Key TAP Dates EventDate Opening date for requesting Vacation Cash Out and/or Personal Loan November 13, 2012 Closing date for requesting Vacation Cash Out and/or Personal Loan January 10, 2013 Vacation Cash Out &/or Personal Loan - PaymentFebruary 1, 2013 First Loan Repayment Deduction (1 st of 12 installments)March 13, 2013
Accrual Calculations Table Hours Earned per Month Total Table Hours Earned for 12 Months (1 year) Factor Accrual Rate Factor Hours Earned for 2 Biweekly Cycles ( 1 month) Total Factor Hours Earned for 26 Biweekly Cycles (1 year) Vacation 10120.0576929.230720119.999360 12144.06923111.076960144.001000 14168.08076912.923040167.999520 16192.09230814.769280192.000640 Sick Leave 896.0461547.38464096.000320
Biweekly Pay Website www.pmo.ucsb.edu/projects/biweekly-pay-overview Background and Information Q & A – Questions and Answers News and Updates 2013 Biweekly Pay Calendar Compensation Calculator TAP Information and Applications Project Team Members D-list Campus Announcements PPS Listserv Notices Resources
To take place December 2012 and January 2013 Will cover: Data Change Implementation in PPS Employee DataBase (EDB) Timekeeping Timecards KRONOS Time Reporting Leave Accrual and Reporting Moving forward…to UCPath PPS & Time Reporting Training