Bi-Weekly Payroll Conversion Information Session November 2012

Today’s Agenda • INTRODUCTION Presentation Participants Moving to the Bi-Weekly Pay Cycle

• PAYRATE AND ACCRUALS How to calculate hourly rate Leave accrual information

• DEDUCTIONS Understanding Payroll Deductions Reviewing Deductions by Paycheck

• TRANSITION Transitioning to Bi-Weekly Pay Analyzing Your Cash Flow Planning Your Transition

• NEXT STEPS Preparing for the Bi-Weekly Transition 2

INTRODUCTION

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Why move to Bi-weekly? Part of UC goals for continuous improvement of the quality and efficiency of the University’s business administration • Standardize pay practices across UC • Systematic approach to Payroll time reporting • Reduction in manual adjustments due to after-the-fact reporting • Overtime payments will be more timely • Reduction in overpayments

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When and Who is moving to Bi-weekly? • Bi-weekly January 20, 2013 • Non- Exempt Employees currently paid on a monthly pay cycle who are eligible for overtime. Except: – Medical Center Employees will remain BW regardless of FLSA status – Readers and Tutors under OGC review. Status TBD.

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UCSD Pay Cycles after conversion Monthly Pay Cycle

Bi-Weekly Pay Cycle

Pay Cycle

1st to last day of the month.

Sunday to Saturday, two-week period

Paychecks per Year

12

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Paycheck Date

1st of the month

Every other Wednesday after the pay period Pay day is 11 days in arrears

N/A-

Overtime

Monthly cycle is reserved for exempt employees Exempt Employee:

Employees in Pay Cycle NOT eligible for overtime.

Paid in bi-weekly check when earned Non Exempt Employees: ARE eligible for overtime, 6

2013 Payroll Calendar

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PAYRATE AND ACCRUALS

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Pay Rate and Accruals

Hourly pay rate is converted in the following calculation: • Take annual rate divided by 2088 to determine hourly rate. $41,882.88/2088*=$20.05 * 2088 = 174 x 12 • Leave Factor Table (next slide) 9

Leave Accrual Code

A,G

Average Vacation Accruals per Month

10

Average Sick Accruals per Month

8

Vacation Accrual Factor per Hour

.057692

Sick Accrual Factor per Hour

.046154

B,H

12

8

.069231

.046154

C,J

14

8

.080769

.046154

D,K

16

8

.092308

.046154

E

16

0

.092308

0

F

0

8

0

.046154

Total Hours/Days per Month

Vacation Accrual: Monthly Equivalent

Sick Accrual: Monthly Equivalent

160-hour/20-day month 168-hour/21-day month 176-hour/22-day month 184-hour/23-day month 160-hour/20-day (2 Bi-weekly Period) 240-hour/30-day (3 Bi-weekly period) 160-hour/20-day month

9.2307 9.6923 10.1538 10.6153 9.2307 13.8461 11.0770

7.3846 7.7539 8.1231 8.4923 7.3846 11.0770 7.3846

168-hour/21-day month

11.6308

7.7539

176-hour/22-day month 184-hour/23-day month 160-hour/20-day (2 Bi-weekly Period) 240-hour/30-day (3 Bi-weekly period) 160-hour/20-day month 168-hour/21-day month 176-hour/22-day month 184-hour/23-day month 160-hour/20-day (2 Bi-weekly Period) 240-hour/30-day (3 Bi-weekly period) 160-hour/20-day month 168-hour/21-day month 176-hour/22-day month 184-hour/23-day month 160-hour/20-day (2 Bi-weekly Period) 240-hour/30-day (3 Bi-weekly period) 160-hour/20-day month 168-hour/21-day month 176-hour/22-day month 184-hour/23-day month 160-hour/20-day (2 Bi-weekly Period) 240-hour/30-day (3 Bi-weekly period) 160-hour/20-day month 168-hour/21-day month 176-hour/22-day month 184-hour/23-day month 160-hour/20-day (2 Bi-weekly Period) 240-hour/30-day (3 Bi-weekly period)

12.1847 12.7385 11.0770 16.6154 12.9230 13.5692 14.2153 14.8615 12.9230 19.3846 14.7693 15.5077 16.2462 16.9847 14.7693 22.1539 14.7693 15.5077 16.2462 16.9847 14.7693 22.1539 N/A N/A N/A N/A N/A N/A

8.1231 8.4923 7.3846 11.0770 7.3846 7.7539 8.1231 8.4923 7.3846 11.0770 7.3846 7.7539 8.1231 8.4923 7.3846 11.0770 N/A N/A N/A N/A N/A N/A 7.3846 7.7539 8.1231 8.4923 7.3846 10 11.0770

Vacation and Sick Leave Accruals • Converting to Factor Leave Accrual – Factor Leave Accrual is the accruing of leave hours based on a prescribed hourly factor multiplied by the number of hours on pay status. • The factor for represented employees can be found on the applicable collective bargaining agreement. http://blink.ucsd.edu/HR/labor/bargaining/agreements

• The factor for non-represented employees can be found: – Vacation UC-PPSM 41 http://hrop.ucop.edu/documents/ppsm41.pdf – Sick Leave UC-PPSM42 http://hrop.ucop.edu/documents/ppsm42.pdf

• Annualized accruals will not change. • Monthly accruals will vary, depending on the number of working hours per month. • Bi Weekly accruals will be based on either 160 hours (two bi weekly periods), or 240 hours (for months that contains three bi weekly periods) • Example (next slide) 11

BW Factor Leave LASR Example A monthly employee converting to Bi-weekly effective February who is accruing 10.00 hours vacation and 8.00 hours sick leave is equivalent to a factor leave of .057692. The biweekly accrual is calculated as shown below: (Earning Base) (Hours Paid) X (Leave Factor) = Hours Earned 100% X 240.00 X .057692 = 13.8460 (3 bi-weekly)

Vacation and Sick Leave Accruals (Cont’d) This is the annual Payroll calendar. It indicates: • The biweekly pay periods, pay dates, and leave accrual periods. • The end date of each leave accrual period is indicated on the calendar with a yellow circle and coincides with the BW pay period end date • Vacation/sick leave balances will continue to be recorded on a monthly basis. 13

DEDUCTIONS

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Understanding Payroll Deductions

Payroll deductions are taken from paychecks either as: • Flat dollar deduction amount

or • Percentage deduction based on earnings

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Flat Dollar Amount Deductions Flat Amount are deducted Twice Per Month (24 paychecks)

Insurance

• • • • •

Retirement

• 403B or 457B if elected Flat Deduction • (for example, $100/month) • DCP after Tax

Other

• • • • • • •

Health Insurance Life & Dependent Life Accidental Death & Dismemberment Supplemental Disability Health Care/Dependent Care

Additional flat dollar Garnishments depending on withholding order Legal Insurance California Casualty Scholarshare Loans – Credit Union & 403(b) loans Transit and Parking, etc. 16

Percentage Based Deductions % based on earnings are deducted every paycheck

Taxes

Retirement

Other

• • • •

Federal State OASDI (Social Security) Medicare

• UC Retirement Plan (UCRP) • 403B or 457B if elected % Deduction (for example, 3% of every check) • Safe Harbor

• Union Dues / Fair Share • Garnishments depending on withholding order 17

Comparison of Deduction Schedule by Cycle • 12 MONTHLY Paychecks a year • All Deductions taken once a month • The net of the paycheck is generally the same every month (not including additional pay such as awards) • 26 BI-WEEKLY Paychecks a year • 24 Pay checks a year - 2 per month • Percent based deductions are deducted from every paycheck. • Flat dollar deductions are divided and deducted from each biweekly paycheck • The net of each of these checks varies slightly due to the affect of the $19 reduction in the retirement deduction • 2 pay checks (Deduction Holiday) – the net will differ • only percent based deductions are deducted

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Deduction Holiday

• There are two deduction holidays a year when flat dollar deductions are not deducted • Dates are Indicated on the calendar with a star icon • A Deduction Holiday occurs when there are three biweekly pay period end dates within a month.

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Bi-Weekly Benefit Deduction Schedule • For 2013, the deduction holidays fall on April 10 and September 11 • Only the following deductions will be taken: • OASDI • Medicare • Federal and State income tax • % based deductions (i.e. 403b, union dues) • These are indicated on the calendar with a highlighted square

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TRANSITION – What employees need to know

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Transition to Bi-Weekly Pay

Final Monthly Earnings

Your final monthly paycheck on February 1st will include earnings for the period of January 1, 2013 to January 19, 2013.

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Bi-Weekly Checks February Earnings

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Analyzing Cash Flow • There are 26 bi-weekly paychecks in a year (as opposed to 12 monthly paychecks in a year)

• 10 months/year consist of 2 paychecks per month • 2 months/year consist of 3 paychecks per month

• 2 (or 3) bi-weekly paychecks per month are not the same as 1 monthly paycheck • Over the course of the year employees will be paid the same gross 24

Transition Planning Recommendations

• Contact Lenders, Banks, Landlord, etc. and request to: • Move bill due dates to later in the month or • Split monthly bill in two payments • Consider UCSD Transition Assistance Program • Cash out accrued vacation and/or comp time hours • Apply for a non-taxable AND interestfree personal loan 25

Vacation/ Compensatory Time Cash Out What is it?

The University is offering a one-time opportunity to cash out up to 80 hours of vacation and/or compensatory time .

What is required?

Employees must have enough accrued vacation and/or comp time hours as of 12/31/12 in the LASR.

When is the request period?

Request period opens: November 1, 2012 Request period closes: January 10, 2013

How many requests can be submitted?

Maximum of one request during the program request period.

Who and how do I make the request?

Complete and sign the TAP application and submit to the Payroll Office. Application forms can be found at: http://www-bfs.ucsd.edu/pay/pdf/TAPform.pdf

When is the cash out be paid?

Employee may select the payment date of either February 1, 2013 or February 13, 2013 26

Interest Free Personal Loan What is it?

The University is offering a short term personal loan

Who is eligible

Any career non-exempt employee who is converting from Monthly to Biweekly who meets the following criteria: • • • • • •

Appointed at least 50% Employee must have been on payroll as of November 1, 2012 Active Status No known separation date prior to August 18, 2013 Appointment does not end before Aug. 31, 2013 Must sign promissory note and agree to the repayment terms

When is the request period?

Request period opens: November 1, 2012 Request period Ends: January 10, 2013

How much cash can be requested?

• • •

Minimum: $100; Maximum $1,000 No taxes are deducted because this is a loan that must be repaid. Maximum of one request during the program request period

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Interest Free Personal Loan (Cont’d) When is the loan disbursed?

February 1, 2013

Who and how do I make the request?

Complete and sign the TAP application and submit to the Payroll Office. Application forms can be found at: http://www-bfs.ucsd.edu/pay/pdf/TAPform.pdf

What is the repayment terms?

• Repayment through twelve (12) equal bi-weekly payroll deductions. • First payment will be deducted from the March 13, 2013 biweekly paycheck. • Entire loan balance must be repaid over twelve (12) bi-weekly pay periods. • There will be no deduction on the “Benefit Holiday.” • If separating from the University, the remaining loan balance will be deducted from final paycheck .

How do I get more information?

• Guidelines and Information can be found at: http://www-bfs.ucsd.edu/pay/pdf/TAPform.pdf •

Send email to: [email protected] 28

Bargaining Units Participated on TAP Plans

TAP

Specific Union Participation Agreement

AFSCME

CUE

FUPO A

CNA

SETC

UPTE CWA

Vacation and/or Comp Time Cash Out













Short-term Personal Loan













Please refer to: http://www-bfs.ucsd.edu/pay/pdf/TAPBUChanges.pdf

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NEXT STEPS – Operational Information

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Operational Considerations PPS Conversion •

Systemwide PPS Release will automatically convert all monthly non-separated, non exempt employees to bi-weekly. – Monthly appt. ended – New bi-weekly appointment created with new pay cycle, hourly rate, and current sub. – Automatically exclude Medical Center and any appointments having joint exempt and non exempt appointments. These will have to be converted manually by department. – New Hires • TBD - We are evaluating the PPS conversion program and will inform you of the prospective effective date.

•

Timekeeping – UCPath will require all BW employees to positively report time for payment. – UCSD will maintain sub 1 exception time reporting for those employees converting to biweekly until June 30, 2013. Exceptions must be declared every bi-weekly cycle.

– MTE is being configured to allow for bi-weekly exception time reporting until June 30, 2013. MTE Business specs are being developed to incorporate schedules to simplify positive time entry. 31

Key Dates UCSD Bi-weekly Pay Quick Facts Nov. 1, 2012 – Jan. 10, 2013

Payroll Transition Assistance Program application request period

January 10, 2013

Deadline to submit Payroll Transition Assistance request to the Payroll Office MC 0952 by 4:30pm

January 20, 2013

Monthly to bi-weekly conversion effective date

February 1, 2013

Last monthly paycheck issued for work performed from January 1 to January 19, 2013

February 13, 2013

Pay check date for the full bi-weekly period beginning January 20, 2013 through February 2, 2013 period

February 27, 2013

Pay check date for the full bi-weekly period beginning February 3, 2013 through February 16, 2013

March 13, 2013

Loan payment payroll deductions begin Note: No deduction on April 10th due to benefit deduction holiday 32

EARNINGS EXAMPLES

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Sample Employee: Monthly Employee Name: Joe Triton Works 100% Time

Employee Name: Joe Triton Works 100% Time

Monthly ESTIMATE

Monthly ESTIMATE

Pay Period: Check Date:

Dec. 1 to Dec 31 January 1, 2013

Pay Period: Check Date:

Jan 1 to Jan 19 February 1, 2012

Gross Pay:

$3,490.24

Gross Pay:

$2,124.51

$113.56 $81.00 $155.51 $785.04 $47.78 $138.42 $179.52 $31.48 $21.00 $20.77 $10.50 $33.16 $15.03 $50.00 $50.00

Deductions: HLTH NET HMO PARKING UC UCRP TD 403B MEDICARE OASDI FEDERAL TAX CA STATE TAX SUPPL LIFE DEP LIFE INSUR AD&D INSUR SUPPL DIS ARAG LEGAL CR UN/COUNT ADDL CAL TAX

$113.56 $81.00 $87.23 $460.68 $27.98 $81.06 $70.70 $11.75 $21.00 $20.77 $10.50 $33.16 $15.03 $50.00 $50.00

Deductions: HLTH NET HMO PARKING UC UCRP TD 403B MEDICARE OASDI FEDERAL TAX CA STATE TAX SUPPL LIFE DEP LIFE INSUR AD&D INSUR SUPPL DIS ARAG LEGAL CR UN/COUNT ADDL CAL TAX

Net Pay:

$1,757.47

Net Pay:

$990.09

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Monthly Compared to Bi-Weekly Employee Name: Joe Triton Annual rate = $41, 882.88 hourly rate = $20.06 BW Estimate reflects pay for 80 hours* (80 x 20.06= $1604) Monthly Estimate Pay period: Check Date: Gross Pay: Deductions: HN B&G HMO PARKING-UC UCRP TD 403B % MEDICARE OASDI FEDERAL TAX CA STATE TAX SUPPL LIFE DEP LIFE IN AD&D INSUR SUPPL DIS ARAG LEGAL CR UN/COUNT ADDL CAL TAX Net Pay

Dec. 1 to Dec 31 January 1, 2013 $3,490.24

$113.56 $81.00 $155.51 $785.04 $47.78 $138.42 $179.52 $31.48 $21.00 $20.77 $10.50 $33.16 $15.03 $50.00 $50.00 $1,757.47

Bi-weekly Estimate Pay period: Check Date: Gross Pay: Deduction: HN B&G HMO PARKING-UC UCRP TD 403B % MEDICARE OASDI FEDERAL TAX CA STATE TAX SUPPL LIFE DEP LIFE IN AD&D INSUR SUPPL DIS ARAG LEGAL CR UN/COUNT ADDL CAL TAX Net Pay:

NOTE: Over the course of the year, you will be paid the same gross

Jan. 20 to Feb. 2 February 13, 2013 $1,604.71

Bi-weekly Estimate Pay period: Check Date: Gross Pay:

Feb. 3 to Feb. 16 February 27, 2013 $1,604.71

$56.78 $40.50 $61.24 $361.55 $21.86 $63.31 $82.45 $14.46 $10.50 $10.39 $5.25 $16.58 $7.52 $25.00 $25.00

Deduction: HN B&G HMO PARKING-UC UCRP TD 403B % MEDICARE OASDI FEDERAL TAX CA STATE TAX SUPPL LIFE DEP LIFE IN AD&D INSUR SUPPL DIS ARAG LEGAL CR UN/COUNT ADDL CAL TAX

$56.78 $40.50 $80.24 $356.00 $21.86 $63.31 $80.31 $14.15 $10.50 $10.38 $5.25 $16.58 $7.51 $25.00 $25.00

$802.32

Net Pay:

$790.54

Estimated Annual Gross Comparison Employee Name: Joe Triton Annual rate = $41, 882.88 hourly rate = $20.06 BW Estimate reflects pay for 80 hours* (80 x 20.06= $1604)

Monthly 12 pay periods reported a calendar year Pay Period 12/1/2012 1/1/2013

Biweekly 26 pay periods reported a calendar year Pay Period

Gross 12/31/2012 1/31/2013

3490.24 3490.24

Gross

12/1/2012

12/31/2012

3490.24

1/1/2013

1/19/2013

2124.49

1/20/2013

2/2/2013

1604.80

2/3/2013

2/16/2013

1604.80

2/17/2013

3/2/2013

1604.80

3/3/2013

3/16/2013

1604.80

3/30/2013

1604.80

2/1/2013

2/28/2013

3490.24

3/17/2013 3/31/2013

4/13/2013

1604.80

3/1/2013

3/31/2013

3490.24

4/14/2013

4/27/2013

1604.80

4/28/2013

5/11/2013

1604.80

5/12/2013

5/25/2013

1604.80

6/8/2013

1604.80

4/1/2013

4/30/2013

3490.24

5/1/2013

5/31/2013

3490.24

5/26/2013 6/9/2013

6/22/2013

1604.80

6/1/2013

6/30/2013

3490.24

6/23/2013

7/6/2013

1604.80

7/7/2013

7/20/2013

1604.80

7/21/2013

8/3/2013

1604.80

8/4/2013

8/17/2013

1604.80

8/18/2013

8/31/2013

1604.80

9/1/2013

9/14/2013

1604.80

9/15/2013

9/28/2013

1604.80

9/29/2013

10/12/2013

1604.80

10/13/2013

10/26/2013

1604.80

10/27/2013

11/9/2013

1604.80

11/10/2013

11/23/2013

1604.80

11/24/2013

12/7/2013

1604.80

7/1/2013 8/1/2013

7/31/2013 8/31/2013

3490.24 3490.24

9/1/2013

9/30/2013

3490.24

10/1/2013

10/31/2013

3490.24

11/1/2013

Total

NOTE: Over the course of the year, you will be paid the same gross

11/30/2013

3490.24

41882.88 Total

42525.13

More Information

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Questions and Answers

You may also send questions to: [email protected]

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