Transcript Biweekly Pay Conversion

Biweekly Pay Conversion
Information Workshop
Fall 2012
Topics
 What is biweekly pay?
 Why, who and when
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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
What is biweekly pay?
 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
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 Cycle
Biweekly Pay Cycle
Pay Cycle
1st 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
12
26
Paycheck Date
1st of the month
Every 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 arrears
Reported in the current leave
accrual cycle
Why move to biweekly pay?
 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
Who will 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
Who will remain on monthly 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.
When will the first biweekly cycle
begin?
Sunday, January 20, 2013
When will biweekly pay start?
Paycheck Date
Paycheck
Pay Period
January 2, 2013
Last full monthly
paycheck
December 1 - 31, 2012
(21 work days)
February 1, 2013
Last partial monthly
paycheck
January 1 - 19, 2013
(14 work days)
February 13, 2013
First biweekly check
January 20 February 2, 2013
(10 work days)
How will my pay be calculated?
 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 the pay schedule change
affect my paycheck?
 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 3rd 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 do I prepare for the transition?
 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
What if after my review I find that
I may not be able to meet my
financial obligations during the
transition?
Transition Assistance Program (TAP)*
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.
Who is eligible for TAP?
 Any non-exempt employee converting to Biweekly pay cycle
 Includes probationary and non-probationary Career, Contract,
Limited and Per Diem employees
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Active Status
Appointment of 50% or more
On payroll as of November 1, 2012
No known separation date prior to August 18, 2013
Personal Loan
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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
Vacation Cash Out
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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
How to apply
 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 protected]
 Phone ext. 4048
Key TAP Dates
Event
Date
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 - Payment
February 1, 2013
First Loan Repayment Deduction (1st of 12 installments) March 13, 2013
Time Reporting
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Time reporting will be done in hours
A pay period will consist of 2 weeks, Sunday through Saturday
Paper timecards
KRONOS electronic timekeeping system
Leave Accrual (vacation, sick leave)
 Transition from table to factor accrual
 Table: Earn vacation and sick leave in full hours
 Factor: Earn vacation and sick based on a multiplier
Factor Accrual Chart
Leave Accrual
Code
Vacation Table
Accrual Rate
(hours/month)
Vacation Factor Sick Leave Table
Accrual Rate
Accrual Rate
(hours/month)
Sick Leave
Factor Accrual
Rate
A, G
10
.057692
8
.046154
B, H
12
.069231
8
.046154
C, J
14
.080769
8
.046154
D, K
16
.092308
8
.046154
E
16
.092308
0
0
F
0
0
8
.046154
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
10
120
.057692
9.230720
119.999360
12
144
.069231
11.076960
144.001000
14
168
.080769
12.923040
167.999520
16
192
.092308
14.769280
192.000640
96
.046154
7.384640
96.000320
Sick Leave
8
Resources
 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
PPS & Time Reporting Training
 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
Questions?
Coni Edick
Human Resources
893-3197
[email protected]