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Biweekly Pay Transition

University of California, Berkeley. Biweekly Pay Transition. Non-Exempts to a Biweekly Pay cycle. Controllers Office, Central Payroll Last Updated 12/10/12. Overview. Introduction Payroll Deductions Moving Forward Staying Informed Transition Assistance Program Financial Preparation

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Biweekly Pay Transition

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  1. University of California, Berkeley Biweekly Pay Transition Non-Exempts to a Biweekly Pay cycle Controllers Office, Central Payroll Last Updated 12/10/12

  2. Overview • Introduction • Payroll Deductions • Moving Forward • Staying Informed • Transition Assistance Program • Financial Preparation • Additional Questions

  3. Biweekly Pay Conversion • UC 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

  4. 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.

  5. Who will convert to Biweekly Pay? Non-exempt Employees • Employees currently paid on the 1st , 8th, and/or 23rd • Eligible for overtime, shift, and on-call pay • Report time worked as well as sick, vacation, comp- time, and other leave to the nearest quarter hour

  6. Others Impacted by this change Exempt employees • Currently paid on the 8th of the month • Not 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

  7. Benefits of a Biweekly Pay Cycle • Employees will receive overtime pay more frequently • Employees will be paid every other week • Will eliminate the need for timekeepers to project employee time each pay period • Pay cycles will be standardized across the UC system

  8. UCB Pay Cycle Comparison

  9. Typical Monthly Pay Cycle • Pay Period = 1st to last day of the month • Standard 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

  10. Typical Semi-Monthly Pay Cycle • Pay Period = 1-15 and 16-last day of month • Standard 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 1/23 1/16-1/31 paid 2/8 2/1-2/15 paid 2/22 2/16-2/28 paid 3/8 3/1-3/15 paid 3/22 3/16-3/31 paid 4/8 *PPS = Pay Period Start, PPE = Pay Period End*

  11. Typical Biweekly Pay Cycle • Pay Period = Sunday to Saturday, 2 week period • Standard pay date is every other Wednesday • Overtime is included in each pay check • 26 paychecks per year (maximum of 27) • 80 hours per pay period 2/3-2/16 paid 2/27 2/17-3/2 paid 3/13 1/6-1/19 paid 1/30 1/20-2/2 paid 2/13 3/3-3/16 paid 3/27 3/17-3/30 paid 4/10 *PPS = Pay Period Start, PPE = Pay Period End*

  12. 2013 Biweekly Calendar

  13. Hourly Pay Rate All 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 OR • Take your monthly rate and divide by 174 $3250/174=$18.68 *2088=174 x 12

  14. Payroll Deductions Percentage and flat rate deductions

  15. Benefits Deductions • Health 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

  16. Deduction Holidays • There 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

  17. Benefit Deduction Comparison Example of deduction process is displayed above

  18. Reviewing Deductions by Paycheck Monthly Compared to Biweekly

  19. Reviewing Deductions by Paycheck Semi-Monthly Compared to Biweekly

  20. Moving Forward How does this impact me?

  21. Non Exempt Employee View • Will be paid more frequently • Will consistently have an 80 hour pay period • Will pay ½ my monthly benefit premium on the first two checks of the month • Will receive overtime more timely • If I am currently receiving a monthly pay rate, I will be converted to an hourly pay rate • Will report time more frequently • Will receive vacation accrual based on a factor accrual rate

  22. Department View What will change? • HCM Appointments will be converted and need to be validated by departments • Information in Payroll and Personnel System (PPS) • Time Reporting deadlines and corresponding pay dates • Employees FLSA status will determine whether they are on a Biweekly or Monthly pay cycle • Non-Exempt employees will be on a factor accrual rate • Payroll Expense Distribution PPP5302 report

  23. Financial Preparation Getting ready for the Biweekly Conversion

  24. 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.

  25. 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)

  26. Analyze your Annual Cash Flow • Employees 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

  27. Transition Assistance Program Vacation & Comp-Time Payout and No Interest Loan

  28. Transition and Loan Assistance Program • Employees 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 $1000 • Vacation/Comp Time Payout: Up to 80 hours • Application forms must be submitted during the program request period (to be announced) • Human Resources will review and approve applications • Central Payroll will pay loan and/or vacation/comp time on January 16, 2013.

  29. Planning your Transition • Contact financial institutions, lenders, banks, etc. and request to: • Move bill due dates to later in the month • Pay 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/or • Cash out of up to 80 hours of leave from accrued vacation time and/or accrued comp time

  30. Staying Informed

  31. How to Prepare • A variety of informational resources are available to assist employees through this transition process. • Biweekly information web page • Biweekly Pay Quick Facts • 2013 Biweekly Pay Date Calendar • Employee Checklist • 2013 Biweekly Pay Planner • Biweekly Conversion Calculator All information is available at http://controller.berkeley.edu/payroll/biweekly/

  32. CalTime Timekeeping • CalTime 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

  33. 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.htm You may also emailbiweekly@lists.berkeley.edu For time reporting questions, please visit: http://caltime.berkeley.edu/ You may also email caltimehelp@berkeley.edu

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