BI-WEEKLY PAYROLL CHANGE EXEMPT STAFF WHO WORK 12 MONTHS A YEAR FAQs June 22, 2016 1. Why are we changing the payroll cycle to bi-weekly? We are making a payroll change that will move all employees who are currently paid monthly to a bi-weekly payroll. Our hourly non-exempt staff and student workers are already paid bi-weekly. Having all employees on the same payroll cycle will help us standardize pay practices and time-off reporting across the university and increase efficiency for payroll, human resources and supervisors. We have been contemplating making this change for a while. There are synergies between this change and the implementation of the new Workday system (Banner replacement), so it made sense to proceed now. While we understand that this change will have a significant impact on employees during the transition, in the long run we anticipate that most employees will appreciate receiving more frequent paychecks and not having to wait a month before they are paid. There will be a number of communications about this change over the summer. Please help us help you - read all communications! 2. When will the change occur? The transition to a bi-weekly payroll cycle (every other Friday) for all faculty and exempt staff will be implemented in two phases. Phase I impacts exempt staff and adjunct faculty starting September 2016. Phase II impacts full-time faculty starting July 1, 2017. Separate communications will be developed to address the impact on each employee group. This communication applies to exempt staff who work 12 months a year. Note: Exempt staff hired after June 19, 2016 will be put into the bi-weekly payroll at the time of hire. Academic year exempt staff will be moved to the bi-weekly payroll when they return in August. 3. How will this change work? Currently, exempt staff are paid for the full month around the 10th of each month. Thus, much of their monthly pay is paid “in advance”, for work that has not yet been performed. Only 10 days are paid for time already worked, or “in arrears”. Beginning September 1, 2016, you will be paid for time you have already worked, entirely in arrears. August 10 – your final monthly payroll check for the pay period of August 1 – 31, 2016. September 16 – your first bi-weekly paycheck, for time worked September 1 - September 10. Note: this first bi-weekly check only covers 10 calendar days instead of the standard 14 days covered in a full bi-weekly paycheck. Therefore, the September 16 paycheck will be for a smaller amount than subsequent bi-weekly paychecks. One-half of benefits deductions for September will be taken. September 30 – for time worked September 11 - September 24. This paycheck covers the standard 14 calendar days. One-half of benefits deductions for September will be taken. (If you requested a payroll loan, this check will be reduced by the 1st loan repayment.) Subsequent bi-weekly payroll checks will be received every other Friday and cover 14 calendar days, less applicable deductions and any loan repayments, if taken, through 12/31/16. See the 2016 Bi-weekly Staff Payroll calendar for the remaining 2016 calendar dates. 4. With bi-weekly pay, how many pay checks can I expect in a year? There will be 26 pay dates in a year. Ten months of the year, there will be two pay dates. However, two months of the year, there will be three pay dates. Go to the Bi-weekly Payroll Change site to see the 2016 bi-weekly pay schedule. 5. How will this change affect my payroll deductions? Health and welfare benefits (medical, dental, vision, and life insurance, as well as flexible spending accounts (FSA) for health and dependent care) will be deducted over 24 pay periods. In months where there are three pay dates; which occurs twice a year, insurance and FSA deductions will not be taken from your third paycheck. All other deductions (i.e., retirement plan voluntary salary deferrals, garnishments, Bentley gifts and payroll taxes) will be deducted from all 26 pay dates. If you elected a fixed dollar amount for a retirement plan voluntary salary deferral, your monthly amount will be split between the two paychecks each month through December 2016. A new salary deferral election will need to be made for 2017 since there will be 26 paychecks (not 24). We are working on a way for you to do that online through MyBentley later this year. 6. How will the university assist you? To help with this transition, Bentley will offer exempt staff the following options: Buy-out one (1) full week of accrued vacation time, if available, and/or A no-interest payroll loan equal to up to three weeks of pay. The loan would be paid back in equal installments over the remaining bi-weekly pay periods of 2016 starting with the September 30 paycheck, with the loan paid in full by December 31, 2016. July 31 is the deadline for making your transition assistance selection Go to your MyBentley page. In the center of the page you will see Monthly to Bi-weekly Payroll Cycle Change tab with two selections. o The first will take you to a monthly to bi-weekly payroll comparison worksheet. Here you can view what your biweekly pay check will be, as well as see the net value of the vacation week buy-out. Additionally, you can determine what your biweekly loan repayment amount would be if you take a payroll loan. o The second selection will take you to the Transition Assistance Selection Form where you can elect to receive a one week vacation buy-out and/or a payroll loan or opt out from any assistance. Lunch time information sessions The next lunch time information session will be held: Wednesday, July 13, 2016 – 12 noon – 1 p.m. LaCava 305AB Conference Room This information session will provide you with helpful information to make a successful personal financial transition. During the session, we will review: what the bi-weekly pay stub will look like; provide you with more information about how to take a vacation week buy-out; learn what a one-time, interest free payroll loan is; and more importantly you can ask questions. Please bring your own lunch and we will provide beverages and dessert. Individual budget session Tuesday, June 28, 2016 You can schedule a 30-minute individual budgeting session with a financial advisor on June 28. UBS Financial will have two advisors on site, but space is limited. To register by selecting either Jonathan Moore, LaCava 196H Carl Aloupis, LaCava 196I Continue registration by choosing a convenient time. Once you register with your financial advisor you will receive an email confirmation with a list of documents to bring during your individual budget session. Budgeting help by Phone You can set up an individual budgeting appointment with UBS Financial over the phone. Please contact KGA, our employee assistance provider at 1-800-648-9557. Let them know you are calling from Bentley University and would like assistance scheduling a phone consultation with UBS Financial. Online help We will update the online information and frequently asked questions on the HR/Bi-weekly payroll change so be sure to check the website often. 7. What should you do? Watch for udpates plan ahead attend budget counseling stay informed Educate yourself and plan ahead! Read the communications that will be coming out over the summer, attend an information session, and sign up for a budget counseling session. You may wish to take time now to consider how these cash flow changes will impact your bill‐ paying routine, particularly during September. For example, if you have a mortgage, car payment, credit card or other bills automatically paid from a checking account, you may want to adjust the arrangements with your bank or credit union so that withdrawals are not all taken on the same pay date. See the 2016 Bi-weekly Staff Payroll calendar for the remaining 2016 calendar dates. Please feel free to send your questions to [email protected].
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