Bi-Weekly Payroll Conversion
Information Session
November 2012
Today’s Agenda
• INTRODUCTION
Presentation Participants
Moving to the Bi-Weekly Pay Cycle
• PAYRATE AND ACCRUALS
How to calculate hourly rate
Leave accrual information
• DEDUCTIONS
Understanding Payroll Deductions
Reviewing Deductions by Paycheck
• TRANSITION
Transitioning to Bi-Weekly Pay
Analyzing Your Cash Flow
Planning Your Transition
• NEXT STEPS
Preparing for the Bi-Weekly Transition
2
INTRODUCTION
3
Why move to Bi-weekly?
Part of UC goals for continuous improvement of the
quality and efficiency of the University’s business
administration
• Standardize pay practices across UC
• Systematic approach to Payroll time reporting
• Reduction in manual adjustments due to
after-the-fact reporting
• Overtime payments will be more timely
• Reduction in overpayments
4
When and Who is moving to
Bi-weekly?
• Bi-weekly January 20, 2013
• Non- Exempt Employees currently paid on a monthly
pay cycle who are eligible for overtime. Except:
– Medical Center Employees will remain BW
regardless of FLSA status
– Readers and Tutors under OGC review. Status TBD.
5
UCSD Pay Cycles after conversion
Monthly Pay Cycle
Bi-Weekly Pay Cycle
Pay Cycle
1st to last day of the month.
Sunday to Saturday,
two-week period
Paychecks
per Year
12
26
Paycheck
Date
1st of the month
Every other Wednesday after the
pay period
Pay day is 11 days in arrears
N/A-
Overtime
Monthly cycle is reserved for
exempt employees
Exempt Employee:
Employees in
Pay Cycle
NOT eligible for overtime.
Paid in bi-weekly check when
earned
Non Exempt Employees:
ARE eligible for overtime,
6
2013 Payroll Calendar
7
PAYRATE AND ACCRUALS
8
Pay Rate and Accruals
Hourly pay rate is converted in the following
calculation:
• Take annual rate divided by 2088 to determine
hourly rate.
$41,882.88/2088*=$20.05
* 2088 = 174 x 12
• Leave Factor Table (next slide)
9
Leave Accrual Code
A,G
Average
Vacation
Accruals
per Month
10
Average
Sick
Accruals
per Month
8
Vacation
Accrual
Factor per
Hour
.057692
Sick
Accrual
Factor per
Hour
.046154
B,H
12
8
.069231
.046154
C,J
14
8
.080769
.046154
D,K
16
8
.092308
.046154
E
16
0
.092308
0
F
0
8
0
.046154
Total Hours/Days per Month
Vacation
Accrual:
Monthly
Equivalent
Sick
Accrual:
Monthly
Equivalent
160-hour/20-day month
168-hour/21-day month
176-hour/22-day month
184-hour/23-day month
160-hour/20-day (2 Bi-weekly Period)
240-hour/30-day (3 Bi-weekly period)
160-hour/20-day month
9.2307
9.6923
10.1538
10.6153
9.2307
13.8461
11.0770
7.3846
7.7539
8.1231
8.4923
7.3846
11.0770
7.3846
168-hour/21-day month
11.6308
7.7539
176-hour/22-day month
184-hour/23-day month
160-hour/20-day (2 Bi-weekly Period)
240-hour/30-day (3 Bi-weekly period)
160-hour/20-day month
168-hour/21-day month
176-hour/22-day month
184-hour/23-day month
160-hour/20-day (2 Bi-weekly Period)
240-hour/30-day (3 Bi-weekly period)
160-hour/20-day month
168-hour/21-day month
176-hour/22-day month
184-hour/23-day month
160-hour/20-day (2 Bi-weekly Period)
240-hour/30-day (3 Bi-weekly period)
160-hour/20-day month
168-hour/21-day month
176-hour/22-day month
184-hour/23-day month
160-hour/20-day (2 Bi-weekly Period)
240-hour/30-day (3 Bi-weekly period)
160-hour/20-day month
168-hour/21-day month
176-hour/22-day month
184-hour/23-day month
160-hour/20-day (2 Bi-weekly Period)
240-hour/30-day (3 Bi-weekly period)
12.1847
12.7385
11.0770
16.6154
12.9230
13.5692
14.2153
14.8615
12.9230
19.3846
14.7693
15.5077
16.2462
16.9847
14.7693
22.1539
14.7693
15.5077
16.2462
16.9847
14.7693
22.1539
N/A
N/A
N/A
N/A
N/A
N/A
8.1231
8.4923
7.3846
11.0770
7.3846
7.7539
8.1231
8.4923
7.3846
11.0770
7.3846
7.7539
8.1231
8.4923
7.3846
11.0770
N/A
N/A
N/A
N/A
N/A
N/A
7.3846
7.7539
8.1231
8.4923
7.3846
10
11.0770
Vacation and Sick Leave Accruals
• Converting to Factor Leave Accrual
– Factor Leave Accrual is the accruing of leave hours based on a
prescribed hourly factor multiplied by the number of hours on pay
status.
• The factor for represented employees can be found on the
applicable collective bargaining agreement.
http://blink.ucsd.edu/HR/labor/bargaining/agreements
• The factor for non-represented employees can be found:
– Vacation UC-PPSM 41 http://hrop.ucop.edu/documents/ppsm41.pdf
– Sick Leave UC-PPSM42 http://hrop.ucop.edu/documents/ppsm42.pdf
• Annualized accruals will not change.
• Monthly accruals will vary, depending on the number of working hours per
month.
• Bi Weekly accruals will be based on either 160 hours (two bi weekly
periods), or 240 hours (for months that contains three bi weekly periods)
• Example (next slide)
11
BW Factor Leave LASR Example
A monthly employee converting to Bi-weekly effective February who is accruing 10.00 hours
vacation and 8.00 hours sick leave is equivalent to a factor leave of .057692. The biweekly
accrual is calculated as shown below:
(Earning Base) (Hours Paid) X (Leave Factor) = Hours Earned
100%
X
240.00
X .057692
= 13.8460
(3 bi-weekly)
Vacation and Sick Leave
Accruals (Cont’d)
This is the annual Payroll
calendar. It indicates:
• The biweekly pay periods, pay
dates, and leave accrual
periods.
• The end date of each leave
accrual period is indicated on
the calendar with a yellow
circle and coincides with the
BW pay period end date
• Vacation/sick leave balances
will continue to be recorded
on a monthly basis.
13
DEDUCTIONS
14
Understanding Payroll
Deductions
Payroll deductions are taken from paychecks
either as:
• Flat dollar deduction amount
or
• Percentage deduction based on earnings
15
Flat Dollar Amount Deductions
Flat Amount are deducted Twice Per Month (24 paychecks)
Insurance
•
•
•
•
•
Retirement
• 403B or 457B if elected Flat Deduction
• (for example, $100/month)
• DCP after Tax
Other
•
•
•
•
•
•
•
Health Insurance
Life & Dependent Life
Accidental Death & Dismemberment
Supplemental Disability
Health Care/Dependent Care
Additional flat dollar
Garnishments depending on withholding order
Legal Insurance
California Casualty
Scholarshare
Loans – Credit Union & 403(b) loans
Transit and Parking, etc.
16
Percentage Based Deductions
% based on earnings are deducted every paycheck
Taxes
Retirement
Other
•
•
•
•
Federal
State
OASDI (Social Security)
Medicare
• UC Retirement Plan (UCRP)
• 403B or 457B if elected % Deduction (for example, 3%
of every check)
• Safe Harbor
• Union Dues / Fair Share
• Garnishments depending on withholding order
17
Comparison of Deduction
Schedule by Cycle
• 12 MONTHLY Paychecks a year
• All Deductions taken once a month
• The net of the paycheck is generally the same every month
(not including additional pay such as awards)
• 26 BI-WEEKLY Paychecks a year
• 24 Pay checks a year - 2 per month
• Percent based deductions are deducted from every
paycheck.
• Flat dollar deductions are divided and deducted from
each biweekly paycheck
• The net of each of these checks varies slightly due to the
affect of the $19 reduction in the retirement deduction
• 2 pay checks (Deduction Holiday) – the net will differ
• only percent based deductions are deducted
18
Deduction Holiday
• There are two deduction holidays a year when
flat dollar deductions are not deducted
• Dates are Indicated on the calendar with a star
icon
• A Deduction Holiday occurs when there are
three biweekly pay period end dates within a
month.
19
Bi-Weekly Benefit Deduction
Schedule
• For 2013, the deduction holidays fall
on April 10 and September 11
• Only the following deductions will
be taken:
• OASDI
• Medicare
• Federal and State income tax
• % based deductions (i.e. 403b, union
dues)
• These are indicated on the calendar
with a highlighted square
20
TRANSITION – What employees need
to know
21
Transition to Bi-Weekly Pay
Final
Monthly
Earnings
Your final monthly paycheck on February 1st will
include earnings for the period of January 1, 2013
to January 19, 2013.
22
Bi-Weekly Checks February Earnings
23
Analyzing Cash Flow
• There are 26 bi-weekly paychecks in a year
(as opposed to 12 monthly paychecks in a year)
• 10 months/year consist of 2 paychecks per
month
• 2 months/year consist of 3 paychecks per month
• 2 (or 3) bi-weekly paychecks per month are not
the same as 1 monthly paycheck
• Over the course of the year employees will be
paid the same gross
24
Transition Planning Recommendations
• Contact Lenders, Banks, Landlord, etc. and
request to:
• Move bill due dates to later in the month or
• Split monthly bill in two payments
• Consider UCSD Transition Assistance Program
• Cash out accrued vacation and/or comp
time hours
• Apply for a non-taxable AND interestfree personal loan
25
Vacation/ Compensatory Time Cash Out
What is it?
The University is offering a one-time opportunity to
cash out up to 80 hours of vacation and/or
compensatory time .
What is required?
Employees must have enough accrued vacation
and/or comp time hours as of 12/31/12 in the LASR.
When is the request
period?
Request period opens: November 1, 2012
Request period closes: January 10, 2013
How many requests
can be submitted?
Maximum of one request during the program request
period.
Who and how do I
make the request?
Complete and sign the TAP application and submit to
the Payroll Office. Application forms can be found at:
http://www-bfs.ucsd.edu/pay/pdf/TAPform.pdf
When is the cash out
be paid?
Employee may select the payment date of either
February 1, 2013 or February 13, 2013
26
Interest Free Personal Loan
What is it?
The University is offering a short term personal loan
Who is eligible
Any career non-exempt employee who is converting from Monthly to
Biweekly who meets the following criteria:
•
•
•
•
•
•
Appointed at least 50%
Employee must have been on payroll as of November 1, 2012
Active Status
No known separation date prior to August 18, 2013
Appointment does not end before Aug. 31, 2013
Must sign promissory note and agree to the repayment terms
When is the request
period?
Request period opens: November 1, 2012
Request period Ends: January 10, 2013
How much cash can
be requested?
•
•
•
Minimum: $100; Maximum $1,000
No taxes are deducted because this is a loan that must be repaid.
Maximum of one request during the program request period
27
Interest Free Personal Loan (Cont’d)
When is the loan
disbursed?
February 1, 2013
Who and how do I
make the request?
Complete and sign the TAP application and submit to the Payroll Office.
Application forms can be found at:
http://www-bfs.ucsd.edu/pay/pdf/TAPform.pdf
What is the
repayment terms?
• Repayment through twelve (12) equal bi-weekly payroll
deductions.
• First payment will be deducted from the March 13, 2013 biweekly paycheck.
• Entire loan balance must be repaid over twelve (12) bi-weekly
pay periods.
• There will be no deduction on the “Benefit Holiday.”
• If separating from the University, the remaining loan balance
will be deducted from final paycheck .
How do I get more
information?
• Guidelines and Information can be found at:
http://www-bfs.ucsd.edu/pay/pdf/TAPform.pdf
•
Send email to: Payrollquestions@UCSD.EDU
28
Bargaining Units Participated on TAP
Plans
TAP
Specific Union
Participation
Agreement
AFSCME
CUE
FUPO
A
CNA
SETC
UPTE
CWA
Vacation and/or Comp
Time Cash Out






Short-term Personal
Loan






Please refer to: http://www-bfs.ucsd.edu/pay/pdf/TAPBUChanges.pdf
29
NEXT STEPS – Operational Information
30
Operational Considerations
PPS Conversion
•
Systemwide PPS Release will automatically convert all monthly non-separated, non exempt
employees to bi-weekly.
– Monthly appt. ended
– New bi-weekly appointment created with new pay cycle, hourly rate, and current sub.
– Automatically exclude Medical Center and any appointments having joint exempt and non
exempt appointments. These will have to be converted manually by department.
– New Hires
• TBD - We are evaluating the PPS conversion program and will inform you of the
prospective effective date.
•
Timekeeping
– UCPath will require all BW employees to positively report time for payment.
– UCSD will maintain sub 1 exception time reporting for those employees converting to biweekly until June 30, 2013. Exceptions must be declared every bi-weekly cycle.
– MTE is being configured to allow for bi-weekly exception time reporting until June 30, 2013.
MTE Business specs are being developed to incorporate schedules to simplify positive time
entry.
31
Key Dates
UCSD Bi-weekly Pay Quick Facts
Nov. 1, 2012 – Jan. 10, 2013
Payroll Transition Assistance Program application
request period
January 10, 2013
Deadline to submit Payroll Transition Assistance
request to the Payroll Office MC 0952 by 4:30pm
January 20, 2013
Monthly to bi-weekly conversion effective date
February 1, 2013
Last monthly paycheck issued for work performed from
January 1 to January 19, 2013
February 13, 2013
Pay check date for the full bi-weekly period beginning
January 20, 2013 through February 2, 2013 period
February 27, 2013
Pay check date for the full bi-weekly period beginning
February 3, 2013 through February 16, 2013
March 13, 2013
Loan payment payroll deductions begin
Note: No deduction on April 10th due to benefit deduction holiday
32
EARNINGS EXAMPLES
33
Sample Employee: Monthly
Employee Name: Joe Triton
Works 100% Time
Employee Name: Joe Triton
Works 100% Time
Monthly ESTIMATE
Monthly ESTIMATE
Pay Period:
Check Date:
Dec. 1 to Dec 31
January 1, 2013
Pay Period:
Check Date:
Jan 1 to Jan 19
February 1, 2012
Gross Pay:
$3,490.24
Gross Pay:
$2,124.51
$113.56
$81.00
$155.51
$785.04
$47.78
$138.42
$179.52
$31.48
$21.00
$20.77
$10.50
$33.16
$15.03
$50.00
$50.00
Deductions:
HLTH NET HMO
PARKING UC
UCRP
TD 403B
MEDICARE
OASDI
FEDERAL TAX
CA STATE TAX
SUPPL LIFE
DEP LIFE INSUR
AD&D INSUR
SUPPL DIS
ARAG LEGAL
CR UN/COUNT
ADDL CAL TAX
$113.56
$81.00
$87.23
$460.68
$27.98
$81.06
$70.70
$11.75
$21.00
$20.77
$10.50
$33.16
$15.03
$50.00
$50.00
Deductions:
HLTH NET HMO
PARKING UC
UCRP
TD 403B
MEDICARE
OASDI
FEDERAL TAX
CA STATE TAX
SUPPL LIFE
DEP LIFE INSUR
AD&D INSUR
SUPPL DIS
ARAG LEGAL
CR UN/COUNT
ADDL CAL TAX
Net Pay:
$1,757.47
Net Pay:
$990.09
34
Monthly Compared to Bi-Weekly
Employee Name: Joe Triton
Annual rate = $41, 882.88 hourly rate = $20.06
BW Estimate reflects pay for 80 hours* (80 x 20.06= $1604)
Monthly Estimate
Pay period:
Check Date:
Gross Pay:
Deductions:
HN B&G HMO
PARKING-UC
UCRP
TD 403B %
MEDICARE
OASDI
FEDERAL TAX
CA STATE TAX
SUPPL LIFE
DEP LIFE IN
AD&D INSUR
SUPPL DIS
ARAG LEGAL
CR UN/COUNT
ADDL CAL TAX
Net Pay
Dec. 1 to Dec 31
January 1, 2013
$3,490.24
$113.56
$81.00
$155.51
$785.04
$47.78
$138.42
$179.52
$31.48
$21.00
$20.77
$10.50
$33.16
$15.03
$50.00
$50.00
$1,757.47
Bi-weekly Estimate
Pay period:
Check Date:
Gross Pay:
Deduction:
HN B&G HMO
PARKING-UC
UCRP
TD 403B %
MEDICARE
OASDI
FEDERAL TAX
CA STATE TAX
SUPPL LIFE
DEP LIFE IN
AD&D INSUR
SUPPL DIS
ARAG LEGAL
CR UN/COUNT
ADDL CAL TAX
Net Pay:
NOTE: Over the course of the year,
you will be paid the same gross
Jan. 20 to Feb. 2
February 13, 2013
$1,604.71
Bi-weekly Estimate
Pay period:
Check Date:
Gross Pay:
Feb. 3 to Feb. 16
February 27, 2013
$1,604.71
$56.78
$40.50
$61.24
$361.55
$21.86
$63.31
$82.45
$14.46
$10.50
$10.39
$5.25
$16.58
$7.52
$25.00
$25.00
Deduction:
HN B&G HMO
PARKING-UC
UCRP
TD 403B %
MEDICARE
OASDI
FEDERAL TAX
CA STATE TAX
SUPPL LIFE
DEP LIFE IN
AD&D INSUR
SUPPL DIS
ARAG LEGAL
CR UN/COUNT
ADDL CAL TAX
$56.78
$40.50
$80.24
$356.00
$21.86
$63.31
$80.31
$14.15
$10.50
$10.38
$5.25
$16.58
$7.51
$25.00
$25.00
$802.32
Net Pay:
$790.54
Estimated Annual Gross Comparison
Employee Name: Joe Triton
Annual rate = $41, 882.88 hourly rate = $20.06
BW Estimate reflects pay for 80 hours* (80 x 20.06= $1604)
Monthly
12 pay periods reported a calendar year
Pay Period
12/1/2012
1/1/2013
Biweekly
26 pay periods reported a calendar year
Pay Period
Gross
12/31/2012
1/31/2013
3490.24
3490.24
Gross
12/1/2012
12/31/2012
3490.24
1/1/2013
1/19/2013
2124.49
1/20/2013
2/2/2013
1604.80
2/3/2013
2/16/2013
1604.80
2/17/2013
3/2/2013
1604.80
3/3/2013
3/16/2013
1604.80
3/30/2013
1604.80
2/1/2013
2/28/2013
3490.24
3/17/2013
3/31/2013
4/13/2013
1604.80
3/1/2013
3/31/2013
3490.24
4/14/2013
4/27/2013
1604.80
4/28/2013
5/11/2013
1604.80
5/12/2013
5/25/2013
1604.80
6/8/2013
1604.80
4/1/2013
4/30/2013
3490.24
5/1/2013
5/31/2013
3490.24
5/26/2013
6/9/2013
6/22/2013
1604.80
6/1/2013
6/30/2013
3490.24
6/23/2013
7/6/2013
1604.80
7/7/2013
7/20/2013
1604.80
7/21/2013
8/3/2013
1604.80
8/4/2013
8/17/2013
1604.80
8/18/2013
8/31/2013
1604.80
9/1/2013
9/14/2013
1604.80
9/15/2013
9/28/2013
1604.80
9/29/2013
10/12/2013
1604.80
10/13/2013
10/26/2013
1604.80
10/27/2013
11/9/2013
1604.80
11/10/2013
11/23/2013
1604.80
11/24/2013
12/7/2013
1604.80
7/1/2013
8/1/2013
7/31/2013
8/31/2013
3490.24
3490.24
9/1/2013
9/30/2013
3490.24
10/1/2013
10/31/2013
3490.24
11/1/2013
Total
NOTE: Over the course of the year,
you will be paid the same gross
11/30/2013
3490.24
41882.88
Total
42525.13
More Information
37
Questions and Answers
You may also send questions to: Payrollquestions@UCSD.EDU
38