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Biweekly Pay TransitionNon-Exempts to a Biweekly Pay cycle
Controllers Office, Central PayrollLast Updated 12/10/12
University of California, Berkeley
OverviewIntroductionPayroll DeductionsMoving ForwardStaying InformedTransition Assistance ProgramFinancial PreparationAdditional Questions
Biweekly Pay ConversionUC Berkeley will transition approximately
10,500 non-exempt employees from the Monthly (MO), Monthly Arrears (MA), and the Semi-Monthly (SM) pay cycles.
After conversion, all exempt employees will be on the MO pay cycle and all non-exempt employees will be on the BW pay cycle
Why change to Biweekly
Berkeley’s transition to a biweekly pay cycle is to comply with recent decisions at the UC Office of the President to implement a single payroll system across all ten campuses and five medical centers. In addition, standardizing pay cycles prepares Berkeley for the move of timekeeping processes to Campus Shared Services, improving the quality and efficiency.
Who will convert to Biweekly Pay?
Non-exempt EmployeesEmployees currently paid on the 1st , 8th,
and/or 23rd
Eligible for overtime, shift, and on-call payReport time worked as well as sick, vacation,
comp- time, and other leave to the nearest quarter hour
Others Impacted by this change
Exempt employees Currently paid on the 8th of the monthNot eligible for over-time• Reports leave in whole day increments
Will be converted to a monthly cycle and be paid on the 1st of the month
Benefits of a Biweekly Pay Cycle
Employees will receive overtime pay more frequently
Employees will be paid every other weekWill eliminate the need for timekeepers to
project employee time each pay periodPay cycles will be standardized across the UC
system
UCB Pay Cycle ComparisonMonthly Semi-
MonthlyBiweekly Pay Cycle
Pay Period 1-31 1-1516-31
12:01 a.m. Sunday to midnight Saturday Two-week intervals
Paychecks Per Year
12 24 Minimum of 26 and maximum of 27
Paycheck Date
1st (MO) or 8th (MA)
8th and 23rd Second Wednesday following the close of the pay period except if second Wednesday is a holiday, then payday is the first working day prior to the holiday except for the New Years holiday for which the pay date will always be the first banking day after January 1st.
Employees in Pay cycle
Non-Exempt or Exempt, positive pay or exception employees, on variable/fixed schedules and on call shifts.
Non-exempt, positive pay employees, on variable/fixed schedules and on call shifts.
Non-exempt, positive pay employees, on variable/fixed schedules and on call shifts.
Typical Monthly Pay Cycle
Pay Period = 1st to last day of the monthStandard pay date is 1st or 8th Receive monthly earnings on the 1st or the 8th of
the following month (i.e. January earnings paid on Feb. 1st or 8th)
12 paychecks per year
Typical Semi-Monthly Pay Cycle
Pay Period = 1-15 and 16-last day of monthStandard pay date 23rd and 8th (unless pay day falls on a weekend, the pay day will be the proceeding Friday)
January earnings paid on Jan. 23rd and Feb. 8th 24 paychecks per year
1/1-1/15 paid 1/231/16-1/31 paid 2/8
2/1-2/15 paid 2/222/16-2/28 paid 3/8
3/1-3/15 paid 3/223/16-3/31 paid 4/8
*PPS = Pay Period Start, PPE = Pay Period End*
Typical Biweekly Pay Cycle
Pay Period = Sunday to Saturday, 2 week periodStandard pay date is every other WednesdayOvertime is included in each pay check26 paychecks per year (maximum of 27)80 hours per pay period
1/6-1/19 paid 1/301/20-2/2 paid 2/13
2/3-2/16 paid 2/272/17-3/2 paid 3/13
3/3-3/16 paid 3/273/17-3/30 paid 4/10
*PPS = Pay Period Start, PPE = Pay Period End*
2013Biweekly Calendar
Hourly Pay RateAll non-exempt employees on a biweekly pay cycle will have an hourly pay rate.
Take your annual rate divided by 2088 to determine your hourly rate
$39,000/2088*=$18.68
ORTake your monthly rate and divide by 174
$3250/174=$18.68
*2088=174 x 12
Payroll DeductionsPercentage and flat rate deductions
Benefits DeductionsHealth and welfare deductions will be split
between two biweekly checks (1/2 on each biweekly check).
Fixed flat amount deductions such as parking, union dues, etc. will be split between two biweekly checks (1/2 on each biweekly check).
Percentage amount deductions such as 403(b) and 457(b) plans, garnishments, etc. will be deducted from every biweekly paycheck
Deduction HolidaysThere are two times a year when flat dollar deductions
are not deducted from your paycheck. These paydays are referred to as deduction holidays
A deduction holiday occurs when three biweekly pay period end dates fall within the same month
The deduction holidays in 2013 will be April 10th and September 11th. They can be identified on the Biweekly payroll calendar by the bold black square surrounding the date. The biweekly payroll calendar is available at http://controller.berkeley.edu/payroll/biweekly/documents/UCBBiweeklyPayrollCalendar2013.pdf
Current Process (Benefits are deducted once per month)
Pay Cycle Pay Date Benefits Paid
MO 2/1 February
MA 2/8 February
SM 2/8 February
After Conversion Process (Benefits are deducted twice per month)
BW 2/13Split between the first two biweekly checks in the month (1/2 on each biweekly check).
½ March Premium
Benefit Deduction Comparison
Example of deduction process is displayed above
Reviewing Deductions by Paycheck Monthly Compared to Biweekly
Reviewing Deductions by Paycheck Semi-Monthly Compared to Biweekly
Moving ForwardHow does this impact me?
Non Exempt Employee ViewWill be paid more frequently Will consistently have an 80 hour pay periodWill pay ½ my monthly benefit premium on the
first two checks of the monthWill receive overtime more timely If I am currently receiving a monthly pay rate, I
will be converted to an hourly pay rateWill report time more frequentlyWill receive vacation accrual based on a factor
accrual rate
Department ViewWhat will change?HCM Appointments will be converted and need to
be validated by departmentsInformation in Payroll and Personnel System (PPS) Time Reporting deadlines and corresponding pay
datesEmployees FLSA status will determine whether
they are on a Biweekly or Monthly pay cycleNon-Exempt employees will be on a factor accrual
ratePayroll Expense Distribution PPP5302 report
Financial PreparationGetting ready for the Biweekly Conversion
What should an employee do to prepare for the change?Start early and plan ahead
Review your personal budget situation and determine your income needs based on the new Biweekly pay schedule.
Review your current tax withholding elections and make any necessary changes especially additional tax withholding amounts.
Request that creditors/lenders/financial institutions adjust your automatic withdrawal or bill-pay dates to align with your new pay schedule.
What Financial tools will help me plan?
Biweekly Conversion Calculator (see the Biweekly website)
Biweekly Pay Planner (see the Biweekly
website)
Analyze your Cash Flow (see the following
example)
Analyze your Annual Cash FlowEmployees will receive pay more frequently
however the check amount will be less.Employees will receive 26* biweekly
paychecks in a year (currently receiving 12 paychecks in a year)
10 months per year employees will receive 2 paychecks per month
2 months per year employees will receive 3 paychecks per month
*maximum of 27 pay cycles in a year
Transition Assistance ProgramVacation & Comp-Time Payout and No Interest Loan
Transition and Loan Assistance ProgramEmployees that meet certain eligibility
requirements will have the option of a no interest loan and/or vacation/comp time accrual cash out
Loan: minimum of $100 and a maximum of $1000Vacation/Comp Time Payout: Up to 80 hoursApplication forms must be submitted during the
program request period (to be announced)Human Resources will review and approve
applicationsCentral Payroll will pay loan and/or
vacation/comp time on January 16, 2013.
VACATION/COMP TIME PAYOUTDescription Cash out from employee’s existing accrued vacation and/or
compensatory time
Who is Eligible?
Any non-exempt career, contract, limited and per diem employee converting to biweekly and meets the following criteria:- Employee appointment ≥ 50%- Employment status of “Active”- Hired prior to a date to be determined- Employee has existing accrued vacation/comp time
How much Up to 80 hours (hours are subject to verification of actual vacation/comp time employee has accrued)
Program Request Period
Application period will be announced to campus
Terms of Participation
Maximum of one request per eligible employee for a no interest loan and/or vacation/comp time cash out during the program request period
Process Employee must complete, sign and submit the Transition Assistance Program application to Human.
Disbursement Schedule
Vacation/comp time accrual cash-out will be paid on a date to be determined and announced to campus.
Method of Disbursement
Payment will be made by Central Payroll via employees current payment option, e.g, direct deposit or paper check
NO INTEREST LOAN
Description Short-term, no interest loan from the University through a newly created Transition Assistance Program
Who is Eligible? Any non-exempt career, contract, limited and per diem employee converting to biweekly and meets the following criteria:- Employee appointment ≥ 50%- Employment status of “Active”- No known separation by TBD- Hired prior to a date to be determined
How much Minimum: $100 Maximum: $1,000
Program Request Period
Application period will be announced to campus
Terms of Participation
Maximum of one request per eligible employee for a no interest loan and/or vacation /comp time cash out during the program request period
Process Employee must complete, sign and submit the Transition Assistance Program application to Human Resources by close of business day on 12/7/12.
Disbursement Schedule
Target disbursement date will on a date to be determined an announced to campus.
Terms of Repayment
• Via payroll deduction• First installment repayment will be deducted from biweekly pay.• Paid in equal installments per biweekly pay cycle. Entire loan balance must be repaid
by a date to be determined. This deduction is not taken on the payday corresponding to a third biweekly pay period end date in a month, aka “deduction holiday.”
• Repayment formula: Loan amount/12 biweekly pay cycles = amount per biweekly pay day
Method of Disbursement
Paid on employees check scheduled for a date to be determined.Must follow employee’s current payment option, e.g, direct deposit or paper check
Planning your TransitionContact financial institutions, lenders, banks, etc. and
request to:Move bill due dates to later in the monthPay half in early February and half in later February
Use the Biweekly pay calculator located on the UCB Payroll website to assist you in estimating what your biweekly pay will be
Consider the Transition Assistance Program:No-interest loan (min of $100 up to a max of $1,000) and/orCash out of up to 80 hours of leave from accrued vacation
time and/or accrued comp time
Staying Informed
How to PrepareA variety of informational resources are
available to assist employees through this transition process.Biweekly information web pageBiweekly Pay Quick Facts2013 Biweekly Pay Date CalendarEmployee Checklist2013 Biweekly Pay PlannerBiweekly Conversion CalculatorAll information is available at http://controller.berkeley.edu/payroll/biweekly/
CalTime TimekeepingCalTime is an automated timekeeping system using Kronos
software. It is an Operational Excellence project, sponsored by Human Resources . The CalTime initiative is intended to improve and standardize timekeeping across campus by consolidating it into a single online tool
The CalTime team has been working with department timekeepers and key stakeholders to help them prepare for the changes in how employees report their time and submit their timesheets. Additional information on the many resources available to help all employees prepare for the change to an automated system and standardized time reporting is available at the http://caltime.berkeley.edu/
CalTime will be available for non-exempt employees when we go to biweekly pay
Additional Questions?Please review the frequently asked questions and biweekly toolkit by visiting the Central Payroll website at:http://controller.berkeley.edu/payroll/biweekly/index.htmYou may also email [email protected]
For time reporting questions, please visit:http://caltime.berkeley.edu/You may also email [email protected]
