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BATH TOWNSHIP PAYROLL CHANGE. On August 6th, the Board of Trustees approved the following recommendation. The Payroll Task Force recommends the transition.

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Presentation on theme: "BATH TOWNSHIP PAYROLL CHANGE. On August 6th, the Board of Trustees approved the following recommendation. The Payroll Task Force recommends the transition."— Presentation transcript:


2 On August 6th, the Board of Trustees approved the following recommendation. The Payroll Task Force recommends the transition to bi- weekly payroll dates, beginning January 1, 2013. All labor agreements would reflect hourly rates of compensation for all employees, and rates would be rounded to cents. All incentives would be reflected as hourly rates. The Payroll Task Force also recommends the purchase of the Kronos accrual tracking software module. This purchase will eliminate the need to manually change data. It is necessary to purchase this software to create a seamless operability within the accrual tracking.

3 2013 Payroll Green- New BI-Weekly Pay dates Orange- Semi-Monthly Pay DatesRed Numbers- Overlap

4 Why? Simplify our payroll work flow Makes our time keeping numbers add up to paycheck stubs Tracking of our accruals improved and online Calculate OT more efficiently Better overall reports Better internal tracking Less manual changes overall Improve communication Assists with state audit issues Federal Labor Audit Easier to explain to employees

5 What will change When you receive your paycheck (Every Other Friday) How many pays you receive a year (26 not 24) The amount in each paycheck What will not change How much you make Your yearly total

6 Transition

7 New Pay Schedule- 2013 January SMTWTFS 12345 6789101112 13141516171819 20212223242526 2728293031 January 11- This paycheck will include your actual hours from January 1-January 5, as well as any OT from December 16 th through January 5th. January 25- This paycheck will include your actual hours from January 6- January 19.

8 Full Time Employees What will your paycheck look like? New ·Old Actual Hours Worked86.66 Hours Could be offset with Vacation, Sick, etc.

9 How will your hourly wage be calculated? What we do with semi-monthly paychecks Payroll is calculated by dividing 2080 base hours by 24 pay dates to arrive at 86.66 hours being paid each payroll. What will we do now? Your pay rate will be calculated as an hourly wage. Your established yearly rate will be divided by 2080. 2080 base hours is found from 52 weeks in a year at 40 hours per week. This is the amount of hours worked in the year. You will be paid based on hours worked as recorded through Kronos. There will be 26 paychecks each year.

10 Average Pay week The previous payroll was calculated based on 86.66 hours. This will no longer be applicable. The new payroll will be based on a two week schedule. Police 80 hours Fire 80 or 96 hours Service, Parks, Administration 80 hours YOU WILL BE PAYED BASED ON HOURS WORKED

11 Comparison of Old vs. New Current Future “Salary”$50,000 $24.04 Degree$1,000 $0.48 Other$750 $0.36 Service Longevity24 Yrs$2,175 $1.05 Total Annual Salary$53,925 40 hrs/wk x 52 wks/yr2,080 Hourly Rate$25.9255 $25.93

12 Department Heads and Trustees Department Heads will be based on a forty hour work week. Elected officials will be paid once per month in the last pay of the month.

13 Part Time, Seasonal, and Contractual Employees These employees will be paid based on their hourly wages. Their checks will be based on a two week pay cycle, as opposed to the fifteen day cycle on the semi-monthly system. Their paychecks will be issued with all others.

14 What will your paycheck look like? Your Actual Hours Worked Any OT will appear on that paycheck. Every paycheck, the following will be deducted All taxes PERS/ OP&F/ Medicare/ Social Security Deferred compensation Child support and/or alimony School District Tax Additional Direct Deposits The first two paychecks of the month, the following will be deducted Health Benefits Any supplemental benefits (Aflac and CAIC) United Way Union dues will be deducted with the first paycheck of the month only This is currently done with the semi-monthly pays

15 Deductions Federal, State, City City is based on only Gross Wages less Section 125 Plans (Health Insurance and Deferred Aflac/CAIC) Medicare All employees hired after 1986 Pension PERS (All employees except Fire and FT Officers) PERS Law (All FT Officers) OF&F (All FT Firefighters) Social Security (All PT Firefighters hired after 1991)

16 Any Other Deductions Child Support Union Dues Deferred Com Deferred Aflac/CAIC Non-deferred Aflac/CAICC Deferred Health Insurance School District Tax United Way Additional Direct Deposit Accounts/Credit Unions

17 Gross Wages Less Section 125 Plans Health Insurance and Deferred Aflac/CAIC deductions This is the amount Medicare tax is based on Less Deferred Comp This is the amount on your W-2 Form for Federal and State Earnings

18 Organizational Changes All wages for employees will be stated as hourly wages. All sick, vacation, comp, etc. will be calculated based on your hourly rate. 4.64 hours of sick time will be accrued for every 80 hours worked. 4.64 hours multiplied by 26 pays equals 120.64 accrued hours in a year

19 Organizational- No Change Calendar work week 12:00 am Sunday to 11:59 pm Saturday Holiday Compensation For holidays listed in the Organizational, holiday pay will be for eight hours at the employee’s applicable hourly rate. For full-time non-probationary employees other then police and fire department, two (2) additional Bonus Days, to be taken at the employee's discretion, and with the approval of the employee's respective department head, may be taken during the calendar year.

20 Organizational- No Change Paid vacation shall be provided in accordance with the following schedule: Years of ServiceAnnual Vacation After 1 yearTwo (2) Weeks After 5 yearsThree (3) Weeks After 12 yearsFour (4) Weeks After 20 yearsFive (5) Weeks After 25 yearsSix (6) Weeks Vacation shall be accrued at the rate of 40 hours for each week of vacation. Eligibility for vacation time off is determined by the schedule in effect as of the person’s employment anniversary date and shall be taken during the course of the person’s employment anniversary date. Any changes in scheduled vacations are subject to the chief’s, department head’s or administrator’s approval.

21 Kronos A Kronos module will be added to our current system to keep a better track of accruals. This will improve the readability of the Kronos Timesheet, and this will match your pay.

22 You are paid for hours worked.

23 Questions Anne Motz can show you an estimated net check that will be a forecast based on your current hourly rate with this years information. Assistant Service Director Mike Rorar, Captain Greg Lang, and Chief Walter Hower should be contacted for any questions within the departments.

24 New Bi-Weekly Payroll 2013

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