Bi weekly Pay Conversion

1. Biweekly Pay Conversion Department Administration & PPS Training Winter 2012

2. Topics • Biweekly Basics • 2013 Pay Cycle Calendar • Pay Transition Period January-February 2013 • Transition Assistance Program Administration • PPS Time Reporting Process & Schedule • Timekeeping (Timecards & KRONOS) • Leave Accrual and Reporting • PPS Conversion Implementation • Resources

3. Biweekly Basics • A biweekly pay cycle consists of 10 working days (2 weeks), Sunday through Saturday • Paychecks are issued on the second Wednesday after the pay period ends • Employees receive pay every 2 weeks, on every other Wednesday. Note that 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

4. Biweekly paycheck deductions • Percent-baseddeductions will be deducted from every paycheck • Examples: Taxes, retirement contributions, etc. • Flat-dollardeductions 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 and September 11 • Refer to 2013 Biweekly Pay Calendar

5. Who’s moving to biweekly pay? Non-Exempt Staff Employees • Currently monthly-paid staff employees who are eligible for overtime, shift, on-call pay • Hourly-paid staff employees who report actual time worked • Examples: Student Assistant series, Limited appointments, etc. • Data Warehouse Report • EZ Access -> Employee -> Non-Exempt Appointments • http://wh.isc.ucsb.edu/

6. Who’s remaining on monthly pay? • All Academic Employees • Including Readers, Tutors and Teaching Assistants • Exempt Staff Employees • Currently monthly-paid staff employees who are NOT eligible for overtime, shift, on-call pay • Employees holding concurrent exempt and non-exempt appointments • Special cases may be biweekly, not monthly • HR and/or AP to make determination

7. When will the first biweekly cycle begin? Sunday, January 20, 2013

9. Student/Limited Pay Cycle Transition • Currently on mid-month to mid-month monthly cycles • Final monthly cycle should be extended through January 19th by the department (if not already set up on a 20th-19th schedule) • To reflect time worked from mid-December 2012 through mid-January 2013 • First biweekly cycle can then begin on January 20th along with other biweekly employees

10. Paycheck Transition

11. Transition Assistance Program (TAP) • Voluntary program to provide extra cash on the February 1st paycheck (deadline to apply: 1/10/13) • Loan • $100 - $1,000 interest-free loan • Repaid through paycheck deductions • First repayment on March 13th paycheck • Total 12 biweekly deductions, through August 2013 • Employee has option to prepay remaining balance at any time • If employee separates from University during repayment period, remaining loan balance is due and payable from final paycheck • Vacation/Comp Time Cashout • Cash out up to 80 hours of accrued vacation and/or comp time

12. TAP Administration • Loan • Loan payment and repayment payroll deductions will be fully processed through Payroll and Human Resources departments • Vacation Cashout • Cash payout and PPS vacation balance adjustment will be processed through Payroll and Human Resources departments • Departments need to adjust vacation balance on employee’s timecard or KRONOS • Comp Time Cashout • Cash payout/PPS comp time balance adjustment needs to be done by departments • To be paid on February 1st paycheck • Use MO payroll window 1/10/13 – 1/24/13 • LX transaction using DOS code “CMP”

13. Deep Breath

14. Time Reporting Cycles • BW = Biweekly • Every 2 weeks • MO = Monthly • Once a month • MS and MA will cease to exist • LastMS paycheck January 22, 2013 • Window: 1/4/13 – 1/11/13 • LastMA paycheck February 7, 2013 • Window: 1/23/13 – 1/30/13

15. Biweekly Time Reporting Process • To be done for each biweekly cycle • POSITIVE time reporting • Time reporting will be done in hours • For purposes of overtime calculation, workweek is Sunday through Saturday (no longer Monday through Sunday) • Paper timecards – will need to enter time via PPS IDTC • KRONOS electronic timekeeping system – will upload hours

16. Biweekly Time Reporting Process • Biweekly Payroll Cycle Names: “B1” and “B2” • B1 + B2 = “quadriweekly” cycle • Payroll windows are 2-3 working days after pay period end • Generally opens Monday (Tuesday, if Monday is holiday) • Closes on Wednesday • Manual reporting (paper timecards) through PPS IDTC • KRONOS will upload to PPS on Wednesdays at 11:00 a.m. • This allows the afternoon for making corrections to file • LX transactions generally available through Thursday 5:00 p.m. • First Biweekly Pay Window starts Monday, February 4 • For biweekly pay period of January 20 – February 2

17. Biweekly Time Reporting Schedule

18. Monthly Time Reporting Process • “Exception” Time Reporting – automatic (same as before) • MO windows will be available for manual payroll (additional pay, corrections, etc.) and leave reporting • BW windows will not be available for payroll transactions for monthly employees • Remember that MA and MS cycles are going away

19. Monthly Time Reporting Schedule

20. Biweekly Timecard “Front” Attendance Record • 8 biweekly/4 quadriweekly cycles per card • Record time in the same manner as Non-Exempt Monthly Attendance Record • Enter time worked in top row boxes • Enter paid leave, comp time, etc. in bottom row boxes • Obtain signatures for each biweekly cycle

21. Biweekly Timecard “Front” Record SAMPLE • Each two biweekly cycles (“B1” and “B2”) are paired to form quadriweekly cycles • Report time during each biweekly payroll window • Report leave usage for quadriweekly cycle during “B2” payroll window

22. Biweekly Timecard “Back” Attendance Summary • Top table is Quadriweekly Summary (2 biweekly cycles) for Vacation, Sick Leave and Comp Time • After leave accrual calculation, truncate result to 2 decimal places (n.nn) • Bottom table is Weekly Summary for overtime calculation • Add straight & premium OT/comp together for Quadriweekly Summary

23. Biweekly Timecard “Back” Summary SAMPLE • Multiply quadriweekly hours by vacation and sick leave factors to calculate leave accruals: • Example “B” vacation accrual: 40 hours/week x 2 weeks = 80 per biweekly cycle • 80 hours/biweekly x 2 cycles = 160 quadriweekly hours • 160 x 0.069231 = 11.076960 • Truncate to 11.07 • Report leave usage during “B2” payroll window

24. Biweekly Timekeeping - KRONOS • Non-exempt Career on KRONOS will begin to be paid from an upload directly from their approved KRONOS timecards • Students and Limiteds on KRONOS are already paid in this manner • So pay will be based on what’s reported on KRONOS timecard • Overtime will be included • Time is simply reported as “time worked” and KRONOS will calculate overtime per work rules based on the appropriate union contact

25. Monthly Timekeeping • Both Timecards and KRONOS – same as before • Exempts only • Leave taken to be recorded in full days

26. Paid Leave (Vacation & Sick) • Transition from table to factor accrual • Table: Earn vacation and sick leave in full hours • Factor: Earn vacation and sick based on a multiplier • Will apply to all Staff, both biweekly non-exempt and monthly exempt employees (does not apply to Academic appts) • Biweekly non-exempt • Accrual based on hours of pay status during quadriweekly cycle (“B1” +“B2” biweekly cycles) • Monthly exempt • Accrual based on hours of pay status during calendar month • Working hours of calendar month vary, so leave accrual will also vary each month • Total accrual over calendar year is the same for table & factor methods

27. Reporting Paid Leave • Leave taken by biweekly employees will be reported once every quadriweekly cycle (using “B2” cycle) via IDTC, or through KRONOS upload • Leave taken by monthly employees will be reported once a month using PYLV roster, or through KRONOS upload • PYLV roster is available for now, but will be discontinued • Anticipated discontinuation when KRONOS is fully rolled out to campus • Stay tuned for future notices

28. Leave Accrual – Biweekly • Accruals are credited on the first day of the following quadri-weekly-cycle • The next “B1” cycle following a “B1 + B2” quadriweekly cycle • How to live with 6-decimal accruals (for timecards) • Use full factor to calculate accrual • Sick leave accrual rate of .046154 • 160 x .046154 = 7.384640 • Then truncate (don’t round) the result to 2 decimal places • 7.384640 = 7.38 on paper timecard • “Biweekly Factor Accrual Calculations” chart • Geared for 100% appointments

29. Biweekly Factor Accrual Calculations(@ 100% time)

30. Leave Reporting – Biweekly • How and when to report time taken • Report time to the nearest ¼ hour • Report time taken for the quadriweekly cycle (“B1” and “B2” cycles) during the “B2” payroll window

31. “B2” Leave Reporting - IDTC

32. Leave Accrual – Monthly • Accruals are credited on the first day of the following month • Accruals will vary from month to month, but… • The total accrual for a year using the factor method will come out the same as the total accrual using the table method • How to live with 6-decimal accruals • Use full factor to calculate accrual • Sick leave accrual rate of .046154 • 0.046154 x 176-hour month = 8.123104 • Then truncate (don’t round) the result to 2 decimal places • 8.123104 = 8.12 on paper timecard • “Monthly Factor Accrual Calculations” chart • Geared for 100% appointments

33. Monthly Factor Accrual Calculations(at 100% time)

34. Leave Reporting – Monthly • How and when to report time taken • Use PYLV roster for reporting • MO window of month following payroll period • Report time in full day hours

35. PYLV Leave Reporting – Monthly

36. Deep Breath • Paper timecards are an intermediate method until… • KRONOS is installed in your department • PPS will also be doing the math and tracking those extra decimals • Hang in there!

37. PPS EDB Conversion • Central system processing will convert non-exempt employees to biweekly cycle, so… • Department entry will not be needed, except for clean-up and some special case edits afterwards • Non-exempt“MO” & “MA” appointments will be converted • New appointments and distributions will be created with: • Rate code: H (Hourly) • Pay Schedule code: BW (Biweekly) • Time Reporting code: Z (Positive time reporting) • Data Warehouse Report • EZ Access -> Employee -> Biweekly One-Time Conversion Review • http://wh.isc.ucsb.edu/

38. PPS EDB Conversion • An individual employee will be either on the monthly or biweekly payroll schedule (never both) • Mixed split appointments (exempt + non-exempt staff) • Will be on monthly pay schedule • Except for special cases, which will be biweekly (HR/AP to determine)

39. IAPP Biweekly Sample

40. PPS EDB Conversion • BYA’s and other “fixed” pay (ex: fixed shift diff “SDG”) • Set up as a fixed biweekly flat amount in separate appointment • Will have “B” (By Agreement) Rate code • As opposed to “A” for Annual or “H” for Hourly rate

41. IAPP By Agreement Example (SDG)

42. PPS EDB Conversion • System processing scheduled for mid-January, 2013 • Additional system processing to slightly round up some hourly rates (about 1¢) • Stay tuned for information on the conversion process through PPS listserv notices

43. PPS EDB Entries Going Forward • Non-Exempt Staff Employee: Biweekly • Rate code: H (Hourly) • Pay Schedule code: BW (Biweekly) • Time Reporting code: Z (Positive time reporting) • Rate: Hourly Rate (not monthly)

44. PPS EDB Entries Going Forward • Academic and Exempt Staff Employee: Monthly • “Fixed” Salary – Faculty, Career Staff • Rate code: A (Annual) • Pay Schedule code: MO (Monthly) • Time Reporting code: R (Exception time reporting) • Rate: Monthly Rate • Hourly – Academic Students (Readers, etc.) • Rate code: H (Hourly) • Pay Schedule code: MO (Monthly) • Time Reporting code: Z (Positive time reporting) • Rate: Hourly Rate

45. Leaves without Pay - Biweekly • Leave EDB Set-up for Biweekly Employee • Continue to process LEAV bundle in PPS (as appropriate) • ELVE – leave dates and leave type • EAPP – Additional distribution for LNS • Time Reporting for Career Employees (IDTC) • Report LNS reduction in addition to REG • Example: For a 8-hour LNS reduction during a biweekly pay period of 80 hours (100% appt) • Worked 72 hours • Report 72.0hrs REG (hours actually worked) + • Report 8.0 hrs LNS • = 72 hours paid for time actually worked

46. ERIT – Biweekly • ERIT EDB Set-up for Biweekly Employee • Additional distribution for ERT • Time Reporting (IDTC) • Include ERT reduction along with full REG pay • Example: For a 10% ERIT reduction during a biweekly pay period of 80 hours (100% appt) • Worked 72 hours • Report 80.0hrs REG (full REG %) + • Report 8.0 hrs ERT (to be reduced from 80 REG) • = 72 hours paid for time actually worked, and • = 80 hours is maintained on record for calculating full leave accruals

47. Resources • Biweekly Pay Website www.pmo.ucsb.edu/projects/biweekly-pay-overview • Payroll Department http://www.bfs.ucsb.edu/payroll/welcome • Data Warehouse http://wh.isc.ucsb.edu/ • D-list Campus Announcements • PPS Listserv Notices

48. Contacts • Coni Edick – Human Resources……..EDB Conversion, Timecards coni.edick@hr.ucsb.edu, X3197 • Jo Ann Stark – Payroll………....Payroll Transactions & Schedules joann.stark@accounting.ucsb.edu, X2219 • Danielly Andrade – Payroll………………….…..Leave Reporting danielly.andrade@accounting.ucsb.edu, X3085 • Sunny Reiner………………………….…………………KRONOS Administrative Residential Information Technology (ARIT) sreiner@housing.ucsb.edu, X7393

49. Thank you for attending