In April 2016 we announced that the University is required to move to a bi-weekly payroll cycle January
1, 2018. If you missed that announcement, you can view it on the Human Resources website.
This will be the first in a series of communications over the course of the next nine months that will
provide guidance on the conversion and information on what to expect under the new payroll cycle. We
also plan to host some lunch and learn sessions in the Summer/Fall leading up to the conversion.
Why are we converting?
Like a significant number of employers in Saskatchewan, the University of Regina has operated under an
exemption in the old Labour Standards Act that allowed us to pay all of our employees on a monthly
basis with a pay period end to pay day lag that exceeds 6 days. With the passing of the new
Saskatchewan Employment Act (section 2-33), all employees who are not paid a monthly salary will have
to be paid biweekly or semi-monthly with a maximum lag of 6 days. Employers under the old exemption
have been given until July 1, 2018 to make the necessary changes to bring their payroll into compliance.
Who will be affected?
The University does not have adequate human or system resources to operate two payroll cycles.
Therefore, we have come to the same conclusion as many Saskatchewan employers and will be moving to
a single bi-weekly payroll cycle for all employees. It is our plan to move to this new bi-weekly pay cycle
January 1, 2018 which will align with the new tax year.
Why bi-weekly?
Section 2-33 of the Saskatchewan Employment Act requires that non-salaried employees be paid at least
semi-monthly or every 14 days with a maximum lag of 6 days between the end of a pay period and pay
day. Human Resources has assessed both semi-monthly and bi-weekly pay cycles and determined that
bi-weekly is the best fit for the University for the following reasons:
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It’s the most common pay frequency in Canada. According to the Canadian Payroll Association
62% of organizations in Canada are on a bi-weekly payroll cycle
Consistent pay days that fall on a week day ensuring that payments will reach the employee in a
timely manner (some smaller banking institutions do not release direct deposits over the
weekend)
Consistent deadlines for payroll paperwork and deadlines
Consistent payroll processing time
Same number of days per pay period ensures that pay cheques are a consistent amount allowing
for easier employee budgeting
Due to the restrictive nature of the maximum 6 day lag a semi-monthly payroll cycle often
resulted in time cards being due the same day as Human Resources is required to send direct
deposit information to the bank, leaving no time for processing.
What does the new pay cycle look like?
The new pay cycle consists of two week (14 day) pay periods that begin on a Sunday and end on a
Saturday. Pay day for each pay period follows 6 days later on a Friday. The first bi-weekly pay day will be
January 12, 2018. Sample Bi-Weekly Pay Period:
BI-WEEKLY PAY CYCLE
SUNDAY
DAY 1
MONDAY
DAY 2
TUESDAY
DAY 3
WEDNESDAY
DAY 4
THURSDAY
DAY 5
FRIDAY
DAY 6
SATURDAY
DAY 7
DAY 8
DAY 9
DAY 10
DAY 11
DAY 12
DAY 13
DAY 14
PAPERWORK DUE
TIME CARD
APPROVAL
PROCESS
PAYROLL
TIME CARD
APPROVAL
PAY DAY
SEND TO BANK
What will my new pay cheque look like?
On a bi-weekly cycle there are 26 pay days per calendar year vs. 12 pay days on our current monthly
cycle. Hourly employees will be paid for hours worked during the two week period. Salaried employees
will be paid based on the number of normal working days in the pay period. A full bi-weekly pay period
consists of 10 working days and equates to 1/26th of annual salary. Most months will have two pay days
and twice per year there are three pay days within a month. In 2018 June and November will contain
three pay days. Below is a sample comparison of a monthly pay vs. a bi-weekly pay for a person making
$54,000 per year. (Please note that this example only contains statutory deductions. All UofR payroll
deductions will be pro-rated to a bi-weekly amount).
MONTHLY
Salary or wages income
BI-WEEKLY
4,500.00
Total cash income
Salary or wages income
4,500.00
2,076.92
Total cash income
2,076.92
Federal tax deduction
510.22
Federal tax deduction
235.49
Provincial tax deduction
331.74
Provincial tax deduction
153.11
Total tax deductions
841.96
Total tax deductions
388.6
CPP deductions
208.31
CPP deductions
96.14
EI deductions
33.85
EI deductions
73.35
Total deductions
1,123.62
Total deductions
Net pay
3,376.38
Net pay (bi-weekly)
1,558.33
Month with 2 pay days
3,116.66
Month with 3 pay days
4,674.99
If you would like to estimate your bi-weekly net pay you can use the following formula:
Monthly Net Pay x 12/26
518.59
What are the advantages of bi-weekly pay?
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More timely pay for our hourly staff
Loan/Mortgage payments can be converted to bi-weekly payments, which will save you money
on interest
You will now be paid every other week instead of waiting a whole month between cheques
Any overtime hours worked in the pay period will be paid faster (CUPE 5791)
Your vacation and sick-leave balances will be current (CUPE 5791)
What other changes are coming as a result of the bi-weekly conversion?
Converting to a bi-weekly cycle compresses the time frame that we as an institution have to process and
submit information to Human Resources. Specifically, the approval period for timecards is being
reduced from 4 working days to 1 working day. In order to meet this deadline the University will be
implementing an electronic time card system and all employees currently using paper time cards will be
moved to the new system. We will also be transitioning all CUPE exception time employees from the
current Web Time Card system to a new time card system. More information will follow on which
system is selected and we will provide user training to employees and approvers in October and
November of 2017.
What if I don’t want to change?
The University does not have adequate human or system resources to operate two payroll cycles. As a
result, it is necessary for us to move all employees to a single bi-weekly payroll cycle in order to meet the
legislative requirements under Section 2-33 of the Saskatchewan Employment Act.
Have more questions?
Please feel free to contact us with any questions or concerns:
Heather Anderson, CPA, CMA, PCP
Payroll Systems Analyst
Payroll Services, Human Resources
University of Regina
3737 Wascana Parkway
Regina, SK S4S 0A2
Email: [email protected]
Phone: 306-337-2955