FREE Resources
How will this change impact me?
You will be paid more frequently–every other Friday– which is
every 14 days instead of 13 to 18 days. You will also receive
your overtime pay closer to when it is earned. The pay period
will remain Thursday to Wednesday and employees will
continue to be paid for all time worked. Annual Salary, Leave
accruals and VRS benefits are not changing.
Are the costs of my benefits changing?
While health and other costs can change annually, the City
always negotiates the best rates possible for its employees.
On the new biweekly pay plan, certain benefits will be
deducted from 26 paychecks while others will be deducted
from 24. Please see the Per Pay Period Deductions &
Earnings section on the opposite page for details.
I have loans that are paid out of my paycheck every
payday. Does this mean I’ll be making two additional
payments every year?
Please review the flowchart for more details or contact your
financial institution or creditor for options. Contact them early
as some institutions require two to three months to make
changes to billing or payment schedules. The City has
placed a generic Letter to Lenders on beachnet for you to
provide to your lender to help explain the change.
What about other deductions from my paycheck, such
as child support, tax liens and/or garnishments? Will
the amounts change?
If your deductions are a percentage of your total pay, these
will automatically adjust. Fixed payments will continue to
come out each pay period. You may wish to contact the
appropriate agencies to negotiate a reduction.
Sample Differences
Semimonthly vs. Biweekly Pay
Information below is based on $45,000 annual salary, no exemptions,
26-pay period Premier Health Plan, 24-pay period VRS
and no other withholdings
Employee Only
Gross
Tax (Fed/VA)
Medicare/SS
VRS
Premier Employee Only
Net
$
$
$
$
$
$
Old
1,875.00
330.19
136.27
93.75
52.98
1,261.81
$
$
$
$
$
$
New
1,730.77
304.78
125.78
93.75
48.90
1,157.56
$
$
$
$
$
$
1,875.00
330.19
136.27
93.75
333.43
981.36
$
$
$
$
$
$
1,730.77
304.78
125.78
93.75
307.78
898.68
Want to take control of your finances? Check out these free
resources. Financial freedom is closer than you think!
There are many web tools available that allow you to evaluate
your specific situation. For example, there are payroll
calculators, retirement estimators and debt repayment
estimators all designed to help you manage your money.
Visit beachnet/biweekly for more information.
Biweekly Pay Resource Days
Join us at one of the following events and have all your transition
questions answered. We’ll have mini-seminars on topics such as debt
management, handling a financial crisis, how to build savings and more.
Plus, there will be representatives on hand from Empower/Great West,
BEWell, Payroll and other resources to answer your questions and help
you navigate your way through the payroll change.
Event Date
Location
Event Hours
Wednesday,
Jul. 20, 2016
Municipal Center
Building 19 Training Rooms
9am-1pm
Friday,
Aug. 19, 2016
Public Utilities
Multi-Purpose Room, 3500 Dam Neck Rd
10am-3pm
Tuesday,
Sept. 6, 2016
Municipal Center
Building 19 Training Rooms
10am-3pm
Saturday,
Oct. 22, 2016
Joint Use Library
1700 College Crescent (TCC Campus)
10am-1pm
Wednesday,
Nov. 16, 2016
Municipal Center
Building 19 Training Rooms
12pm-6pm
Whether you want to stop living
paycheck to paycheck, pay off
debt, improve your credit score or
build your savings, Bank On Virginia Beach can get you on the road to
financial freedom...one step at a time. This 10-month program combines
monthly classes and one-on-one coaching to help you take what you
learn in class and apply it to your own life–this program is about YOU. For
additional information, visit BankOnHR.org, email [email protected]
or call 757.943.9652.
On the new biweekly pay plan, certain benefits will
be deducted from 26 paychecks while others will
remain at 24 paychecks. Please see the list below
for details.
Managing finances, organizing paperwork,
eating healthily on a budget – all are steps
toward living a simpler, less stressful life. The
library offers free programs geared to help you
simplify your life, understand your finances and save
for the future. You can also check out their website at VBlivesimply.com
for short courses and other helpful resources.
All Leave Used
All Garnishments
All Liens and Levies
Thanks to
United Way
for assistance.
Child Support Payments
Have a question?
757.385.4301
[email protected]
Health Insurance
rev. 06.13.2016
Visit beachnet/biweekly for a calculator to view the differences
based on your salary, benefits and other deductions.
Virginia Retirement System (VRS)
VRS Optional Life
VRS Hybrid Defined Benefit & Defined Contributions
VRS Hybrid 457
Dental Insurance
Flexible Spending Account (FSA)
Long-Term Disability
Long-Term Care
Legal Resources
Leave Accruals (PTO, Annual, Sick)
All Taxes
Family
Gross
Tax (Fed/VA)
Medicare/SS
VRS
Premier Family
Net
eginning in January 2017 City employees’
pay will change from semimonthly to
biweekly. This means that instead of
paydays falling on the 15th and last day of
the month, paydays will occur every 14 days. While
your total salary will remain the same, how it’s paid to
you will change. You will receive 26 paychecks per
year instead of 24. Your first biweekly payday will be
January 13, 2017, and every other Friday thereafter.
To help with the transition to biweekly pay, all
full-time employees will receive an additional
taxable $70 in their first three biweekly
paychecks for a total of $210 additional pay.
Health Savings Account (HSA)
Overtime & Comp Time
Empower/Great West Deferred Compensation (Plans 1 & 2)
Start
Do you have
a loan?
1 Plan Now.
List your monthly expenses,
bill due dates and income. This will show you how
much you’ll need for total monthly payments. Then
plot all of these on the paydate calendar so you
can see your cashflow. Visit beachnet/biweekly
for an Employee Toolkit to help you get started.
It is important to understand how your monthly loan is paid so you can explore your options.
If you are unsure how your payments are made, this flowchart can help.
Yes
Is it paid on the
same day you
get paid?
No
No
No further
action is needed!
Do you need to
change the
payment due date?
2 Plan Now.
If you are concerned that
your money will be tight at specific times of the
month, consider contacting your creditors and ask
to move your payment due dates.
No
3 Save Now.
Build your savings.
Knowing that each paycheck will be slightly less,
you should anticipate how much you’ll need to
cover the difference. Take advantage of windfall
opportunities. For example, save your tax refund,
transition pay and other unexpected pay increases.
No further
action is needed!
4 Plan Now.
Accelerate your debt
repayment. The more you can pay off now, the
less you’ll need to worry about next year.
Consider refinancing loans to get lower interest
rates and payments, but only if it saves you
money. Extending loan terms just to lower
payments can cost you hundreds of dollars in the
long run.
5 Save Now.
Negotiate to lower your
bills. For example, compare home and auto
insurance options to see if you can reduce your
rate. Contact your electric and/or gas company
and ask about ways to save on your monthly
costs. Consider bundling cable, phone and
Internet services to determine if you can reduce
your bill.
Yes
Does it get paid
every time you
are paid?
No
Yes
Yes
No further
action is needed!
Contact the
financial institution
where the loan
payment is sent
and ask to move
your due date.
In most cases,
you may choose
the date.
Do you want to
reduce the
amount due each
pay period?
Yes
Contact the
financial institution
where the loan
payment is sent
to discuss
your options.
However
Change in Distributions
Many employees send a portion of their direct deposit to
different accounts each time they are paid. These are called
distributions. For example, you may deposit $50 into a
savings account, $25 to your spouse’s checking and $40
into a holiday club account. However, since you will now be
paid every 14 days, these deposits will be made 26 times a
year instead of 24. This means you’ll be making two
additional deposits per account, per year. If you do not want
to do this, please review your distributions and adjust them
as needed. Common distributions may include:
• Club accounts, like vacation or holiday
• Savings accounts
• Family members’ accounts, such as children or spouses
• IRAs
Despite the new payroll schedule,
not all monthly payment amounts may be
changed. For example:
• Mortgages
• Credit cards
• Court-ordered obligations
• Union dues
• Monthly bills (cable, utilities, etc.)
Please contact your financial institution
or respective organization for
more information.
No
No further
action is needed!