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2009 PAYROLL TRANSITION GUIDE Walla Walla University SINGLE BI

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2009 PAYROLL TRANSITION GUIDE Walla Walla University SINGLE BI Powered By Docstoc
					                                   2009 PAYROLL TRANSITION GUIDE
                                         Walla Walla University

SINGLE BI-WEEKLY PAYROLL BEGINS JULY 1, 2009

Walla Walla University will shift to a single bi-weekly pay cycle beginning July 1, 2009 for all employees.
For salaried employees the frequency of pay will shift from 24 paychecks to 26 paychecks per year. This
guide is designed to provide details on how the University will transition to a single bi-weekly pay cycle
and provide support for employees during this process.

Here are the details:

Who:                    Salaried employees – All employees who are currently paid on a semi-monthly
                        basis (on the 15th and the last day of the month) will transition to the bi-weekly
                        pay cycle (same as current non-student hourly employees) with pay checks
                        issued every other Thursday (see 2009-10 Biweekly Payroll Calendar). As part
                        of the transition, the University will also implement the same lag time for
                        salaried employees as hourly employees currently have between the end of the
                        pay period and when the pay is received. The lag time is four business days (pay
                        is received on Thursday following the close of the pay period).

                        Student employees – All student employees are currently being paid on a bi-
                        weekly basis, but will shift to the bi-weekly schedule currently in place for
                        hourly (non-student) employees. This change will have a marginal impact.
                        Student employees will be paid for their standard two week of pay on Thursday,
                        June 25 and with the transition will also receive a check for one week of pay on
                        the following Thursday, July 2 for hours worked in the prior work week.

When:                   This change will be effective July 1. Salaried employees will receive their regular
                        salaried paycheck on June 30 and will include pay through June 30. The first
                        transition pay-period for salaried employees will start July 1 and end July 11, (all
                        other employees pay-period will start June 28 to July 11) with pay received July
                        16. This transition pay period will result in a slight one-time proration of pay for
                        salaried employees (equivalent of 3 days pay – for pay received for 6/28-6/30).
                        Subsequent pay periods will follow the current hourly staff pay schedule with
                        pay dates every other Thursday.

Why:                    There are a number of benefits for both the university and for employees.
                        Salaried employees will benefit from more frequent paychecks, giving them
                        access to their funds more quickly. Pay dates will also be more predictable –
                        always on Thursday (with the exception of recognized holidays). The Payroll
                        Department will gain significant efficiency by processing only one pay cycle
                        every other week (76 pay periods down to 26). The gain in efficiency will allow
                        the payroll staff to achieve more complete cross training and allow more time
                        for other value added services to the university.
Support for Employees: We understand this change may be a difficult adjustment for some employees,
and as a result, the university is implementing a number of measures to ease this transition. The
university will provide the following:

     Loan/pay advance for salaried employees to help them with the transition to the new pay cycle.
     Payroll calculator to help employees work out their possible take-home pay and adjust their
      personal budget.

Each of these initiatives is described in more detail below. As we move to the new pay cycle, we hope
that with advance notice and planning, combined with the support programs listed above, can help
minimize any hardships associated with this transition.

OPTIONAL TRANSITION ASSISTANCE

Loans:                     Salaried employees will be eligible to receive an interest-free loan (pay advance)
                           equal to the net pay of one pay period. The loan will be paid back through pay
                           roll deduction in one of two options, in equal installments from the date of the
                           advance through the end of November or three equal payments by payroll
                           deduction in the month of December. Please go to Salaried Employee Pay
                           Advance Form located at the HR/Payroll website to request this pay advance.

Payroll Calculator:        In an effort to help employees further review their potential take home pay
                           under the new payroll cycle, the university is providing access to a payroll
                           calculator where employees can input their current pay and deductions to help
                           estimate their future net pay. Please visit www.paycheckcity.com for access to
                           this service. Having a recent pay stub on-hand would be helpful in filling in the
                           required information. For additional assistance in using this website contact
                           Dwight Bartlett in the payroll office at 527-2190.

Important points to remember:
    Review any automatic payments established through personal online bill paying.
    Employees with mortgage payment(s), car loan(s), or other bills paid on certain dates of the
       month, may want to consider adjusting the time and/or amount to be more in line with these
       changes or use a savings account to set aside funds for those payments and have an automatic
       transfer from savings to checking occur just prior to the date of those payments.
    During the two months of the year when a third paycheck is issued this check generally will not
       have deductions beyond standard taxes and voluntary retirement contributions. Generally these
       checks will be larger than those received in a typical two paycheck month.


FREQUENTLY ASKED QUESTIONS:

Will I get paid the same amount of money? (Salaried Employees)
Yes. The annual salary will remain the same. It is only the frequency of pay that will change from 24 to
26 paychecks. While ten months will be slightly less, there will be two months each year with three
paychecks, making the annual amount the same.

When will it start? (Salaried Employees)
The transition will be effective July 1. June 30 will be the last paycheck issued under the semi-monthly
schedule. The first pay period in July will be slightly shorter than normal because of the transition,
starting July 1 to July 11 (the full pay period in effect starts June 28 to July 11).

Can you explain the “lag” concept to me? (All Employees)
Salaried employees are currently being paid up to the day. For example, a semi-monthly pay period is the
1st through the 15th with the pay date being the 15th (no lag). Under the bi-weekly pay period a salaried
employee’s pay period begins on a Sunday and ends on a Saturday 2 weeks later. The pay date for this
time worked is the following Thursday (four day lag).

All student and non-student hourly employees are currently being paid based on pay periods with a four
day lag.

Is there help available? (Salaried Employees)
Yes. Interest free loans will be available and a paycheck calculator to help estimate net pay and make
budgeting adjustments. Contact Dwight Bartlett at 527-2190 for additional assistance. See payroll
website located at www.wallawalla.edu/12924.

Will my deductions change? (All Employees)
Yes. Currently, timing and frequency of deductions vary. With the transition to a single biweekly pay cycle
most deductions will be taken out two times per month on the 1st and 2nd check for a total of 24 time per
year. This will help to equalize each paycheck. Certain deductions such as taxes, retirement, and court-
ordered garnishments and child support will continue to be deducted from every paycheck. For the two
months of the year with three paychecks, the third paycheck will generally have only taxes, elective
retirement contributions, and court ordered deductions.

May I change my deductions? (All Employees)
Yes. Employees may make changes to the amount of their voluntary deductions. Use the paycheck
calculator to estimate the impact of those changes. Please check with Sherry Nally before requesting
changes to Health insurance, flex plan, AFLAC, and other insurance deductions.

				
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