UR/HR/COMPDIV/REP/FLSA INFO/TRG/
CONVERSION FROM MTH_SMO TO BWH SLIDE DECK
Intended for Impacted Employees & Managers/Supervisors
10/11/16
FLSA Conversion
Converting from Monthly or Semi-monthly to Biweekly Hourly
10/11/16
Converting from Monthly or Semi-monthly
to Bi-weekly Hourly
Key Differences between Pay Cycles
Pay periods
Pay date compared to
pay period
Paychecks per year
Paycheck date
Paychecks per month
Bi-weekly
Sunday to Saturday,
2 week period
Semi-monthly
1st to 15th of month &
16th to last day of month
Monthly
Pay date is 6 days after last
day of pay period
Pay date is current with
last day of pay period
Pay date is current with
last day of pay period
26
24
12
Every other Friday
15th and last day of month
Last day of month
2 for 10 months of the year,
3 for 2 months of the year
2
1
1st to last day of month
* Pay day is 6 days after last day of pay period in order to capture actual hours worked,
including overtime hours, in pay period.
2
Converting from Semi-monthly to Bi-weekly Hourly
Sample Employee
Annual Salary: $42,000/year
Hourly Rate Equivalent: $20.19/hour
Observation: When an employee is converted to biweekly hourly, they are paid more frequently, but less
each pay period.
Semi-Monthly
(24 pay periods)
Pay
Gross Earnings
Period per Pay Period
1
$1,750
2
$1,750
3
$1,750
4
$1,750
5
$1,750
6
$1,750
7
$1,750
8
$1,750
9
$1,750
10
$1,750
11
$1,750
12
$1,750
13
$1,750
14
$1,750
15
$1,750
16
$1,750
17
$1,750
18
$1,750
19
$1,750
20
$1,750
21
$1,750
22
$1,750
23
$1,750
24
$1,750
Annually:
$42,000
Bi-weekly Hourly
(26 pay periods)
Pay
Gross Earnings
Period per Pay Period
1
$1,615.38
2
$1,615.39
3
$1,615.38
4
$1,615.39
5
$1,615.38
6
$1,615.39
7
$1,615.38
8
$1,615.39
9
$1,615.38
10
$1,615.38
11
$1,615.39
12
$1,615.38
13
$1,615.39
14
$1,615.38
15
$1,615.39
16
$1,615.38
17
$1,615.39
18
$1,615.38
19
$1,615.39
20
$1,615.38
21
$1,615.39
22
$1,615.38
23
$1,615.39
24
$1,615.38
25
$1,615.39
26
$1,615.38
Annually: $42,000
3
How does Conversion to Bi-weekly Hourly Affect
Pay?
Semi-monthly to Bi-Weekly Hourly
Check Date
Paycheck
Pay Period
Cash Flow Effect
November 15, 2016
Last full semi-monthly paycheck
November 1 - 15, 2016
Normal
November 30, 2016
Final partial semi-monthly paycheck
November 16 - 26, 2016
Less than normal semi-monthly paycheck
because fewer working days in period
December 16, 2016
First bi-weekly hourly paycheck
November 27 - December
10, 2016
Less than normal semi-monthly paycheck
because paid over 26 pay periods versus
24
December 30, 2016
Second bi-weekly hourly paycheck
December 11 - 24, 2016
Less than normal semi-monthly paycheck
because paid over 26 pay periods versus
24
Monthly to Bi-Weekly Hourly
Check Date
Paycheck
Pay Period
November 30, 2016
Final partial monthly paycheck
November 1 - 26, 2016
December 16, 2016
First bi-weekly hourly paycheck
November 27 - December
10, 2016
December 30, 2016
Second bi-weekly hourly paycheck
December 11 - 24, 2016
Cash Flow Effect
Less than normal monthly paycheck
because fewer working days in period
Less than half of monthly paycheck
because paid over 26 pay periods versus
12
Less than half of monthly paycheck
because paid over 26 pay periods versus
12
4
How to Plan for the Transition to Bi-weekly Hourly Pay
•
Review your personal budget situation and determine your income needs based on
new bi-weekly hourly pay schedule
•
Make any necessary changes to ensure deductions are appropriate
o If you currently make a direct deposit based on a flat dollar amount, you may
want to adjust the amount for the per pay period deduction under the new
hourly, biweekly pay cycle. This change can be made through HRMS SelfService at www.rochester.edu/people.
o If you withhold an additional flat-dollar tax amount in your paycheck, you may
end up over-withholding. (Example: if you withhold an extra $100 per pay
period and are paid monthly, this will change from $1,200 per year to $2,600
per year when paid bi-weekly hourly.) This change can be made through
HRMS Self-Service at www.rochester.edu/people.
o If you contribute to the University’s retirement program, you may end up overcontributing. (Example: if you contribute $100 per pay period and are paid
monthly, your contributions will increase from $1,200 per year to $2,600 per
year when paid bi-weekly hourly.) This change can be made through YOUR
Retirement Program link on the HRMS homepage at
www.rochester.edu/people.
• Consider FLSA Vacation Sell-Back Program
5
FLSA Vacation Sell-Back Program
•
One-time program to ease transition to bi-weekly hourly pay
•
Use calculator in HRMS Self-Service at www.rochester.edu/people (under
Payroll and Compensation, then FLSA Impact / Vac Sell Back) to assist
you in estimating what your bi-weekly hourly gross pay will be and whether
you would like to bridge the pay gap that is initially created on the transition
from monthly or semi-monthly pay to bi-weekly hourly pay by cashing out
available vacation hours (up to one week, based on standard hours).
•
Vacation hours sold will be paid in your last semi-monthly/monthly
paycheck paid on November 30, 2016
•
Must be elected by November 15, 2016 by completing on-line service
request in HR Self-Service at www.rochester.edu/people (under Payroll
and Compensation, then FLSA Impact / Vac Sell Back).
6
UR/HR/COMPDIV/REP/FLSA INFO/TRG/
BWH VS SMO PP SAMPLE.ppt
Intended for Impacted Employees & Managers/Supervisors
7/28/16- Reviewed 9/6/16
FLSA Vacation Sell-Back Program - Terms
•
Employees will be allowed to sell up to one week's standard hours (an
employee with standard weekly hours of 36 hours can sell a maximum of 36
hours vacation).
•
Employees with a zero balance will be allowed to go up to one week's
standard hours in the negative in their vacation bank for the sell-back related
to this FLSA conversion. If an employee already has a negative balance they
will not be allowed to go beyond one week's standard hours in the negative.
(i.e. if an employee's standard hours are 24 hours per week, that employee
will be allowed to go no more than 24 hours in the negative in their vacation
bank.)
•
Employees must accrue appropriate number of hours needed for any
scheduled vacations after November 27, 2016; this includes earning back any
negative balance.
7
Conversion from Semi-Monthly to Bi-weekly Hourly
- without Vacation Sell-Back Assistance
Employee Name: Susan Semimonthly
Annual Salary: $42,000/year; Hourly rate equivalent = approx $20.19/hour
Semi-monthly Estimate
Semi-monthly Estimate
Bi-weekly Estimate*
Pay period:
Check date:
Nov 1 to 15
Nov 15
Pay period:
Check date:
Nov 16 to 26
Nov 30
Pay period:
Check date:
Nov 27 to Dec 10
Dec 16
Pay period:
Check date:
Dec 11 to 24
Dec 30
Gross pay:
$ 1,750.00
Gross pay:
$ 1,272.73
Gross pay:
$
Gross pay:
$ 1,615.38
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
4.08
2.19
50.00
16.67
19.09
189.98
24.77
105.89
70.30
$ 1,267.03
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
4.08
2.19
50.00
16.67
19.09
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
118.38
17.85
76.30
39.89
$
928.28
Bi-weekly Estimate*
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
4.08
2.19
50.00
16.67
19.09
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
1,615.38
174.28
22.81
97.55
64.47
$
1,164.24
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
4.08
2.19
50.00
16.67
19.09
174.28
22.81
97.55
64.47
$ 1,164.24
*Bi-weekly Estimate reflects pay for 80 hours
Gross Pay - Conversion Effect (without Vacation Sell-Back)
$ 7,000.00 Nov/Dec Gross pay (without FLSA Threshold change)
$ 6,253.50 Nov/Dec Gross pay (with FLSA Threshold change)
$ (746.50) Difference - Gross pay
Net Pay - Conversion Effect (without Vacation Sell-Back)
$ 5,068.12 Nov/Dec Net pay (without FLSA Threshold change)
$ 4,523.80 Nov/Dec Net pay (with FLSA Threshold change)
$ (544.33) Difference - Net pay
8
Conversion from Semi-Monthly to Bi-weekly Hourly
- with Vacation Sell-Back Assistance
Employee Name: Susan Semimonthly
Annual Salary: $42,000/year; Hourly rate equivalent = approx $20.19/hour
Semi-monthly Estimate
Semi-monthly Estimate
Bi-weekly Estimate*
Pay period:
Check date:
Nov 1 to 15
Nov 15
Pay period:
Check date:
Nov 16 to 26
Nov 30
Pay period:
Check date:
Nov 27 to Dec 10
Dec 16
Pay period:
Check date:
Dec 11 to 24
Dec 30
Gross pay:
$ 1,750.00
Gross pay:
Vacation Sell Back
(38 hours sold)
TOTAL GROSS
$ 1,272.73
$
767.22
Gross pay:
$
Gross pay:
$ 1,615.38
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
4.08
2.19
50.00
16.67
19.09
189.98
24.77
105.89
70.30
$ 1,267.03
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
Bi-weekly Estimate*
1,615.38
$ 2,039.95
4.08
2.19
50.00
16.67
19.09
245.08
28.97
123.87
89.00
$ 1,461.00
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
4.08
2.19
50.00
16.67
19.09
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
174.28
22.81
97.55
64.47
$
1,164.24
Deductions:
Health Care Plan
Dental
403(b)
HSA
Parking
Federal Tax (single/1)
Fed MED/EE
Fed OASDI/EE
NY Tax (single/1)
Net Pay:
4.08
2.19
50.00
16.67
19.09
174.28
22.81
97.55
64.47
$ 1,164.24
*Bi-weekly Estimate reflects pay for 80 hours
Gross Pay - Conversion Effect (with Vacation Sell-Back)
$ 7,000.00 Nov/Dec Gross pay (without FLSA Threshold change)
$ 7,020.72 Nov/Dec Gross pay (with FLSA Threshold change)
$ 20.72 Difference - Gross pay
Net Pay - Conversion Effect (with Vacation Sell-Back)
$ 5,068.12 Nov/Dec Net pay (without FLSA Threshold change)
$ 5,056.51 Nov/Dec Net pay (with FLSA Threshold change)
$ (11.61) Difference - Net pay
9
Employee Self-Service Tool
 Available Employees can view their specific conversion information as
of 10/14/16 in HRMS.
 Email notifications that the tool is available will be sent to affected
staff when it goes live.
 Employees may sign in to HRMS and go to Main Menu
SelfService
Payroll and Compensation
FLSA impact/Vac Sellback
 You may select and save vacation sell-back hours beginning on
November 1 – November 15.
 The system will be “locked” at the end of the day on November 15th
and no further changes may occur.
10
11
Employee can not
save sell-back
amount until 11/1/16.
Closes for changes
11/15/16.
12
Questions
13