changing pay frequency · 4.you will move from being paid bi-weekly to monthly, paid on the last...
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CHANGINGPAYFREQUENCY
EMP LOY E E T R AN S I T I ON GU I D E L I N E S2 0 1 7
IncludedinthisGuide:
• Exempt/Nonexemptstatus
• PayCycle
• CalculateHourlyRate
• VacationandSickAccruals
• PayrollCalendar
• Deductions
• Timekeeping
• Otherissuestoconsider
• Resources
WHAT’STHEDIFFERENCE?
ExemptEmployee
Noteligibleforovertime
MustrecordexceptionstoworkusingTimeOut (Sick,Vacation,etc.)
Salaried
Paidmonthly
Non-ExemptEmployee
OvertimeEligible
Non-exemptemployeesmustbepaidforallhoursworked
Mustrecordallhoursworkedinadditiontoabsences
TimeOut isnolongerusedtorecordabsences
Paidbi-weekly
TheFairLaborStandardsAct(FLSA)governsifaroleisexemptornon-exemptfromovertimepay.
Convertingfromexempttonon-exemptmeansthreeimportantthingstoremember:1. Youwillmovefrombeingsalariedtohourly.Thismeansyouarerequiredto
reportalltimeworked.• Methodoftimereportingisspecifictodepartment(Kronos,Deltek,
TechTime,Paper)2. YouwillnolongeruseTimeOut torecordexceptionstotimeworkedorto
requesttimeoff.3. YouwillmovefrombeingpaidMonthlytoBi-Weekly (everytwoweeks).
• Monthly- 12PayPeriodsayear• Bi-Weekly- 26PayPeriodsayear
CHANGINGFROMEXEMPTTONON-EXEMPT
From Exempt To Non-exempt
Convertingfromnon-exempttoexemptmeansfourimportantthingstoremember:1. Youwillmovefrombeinghourlytosalaried.Youarenoteligiblefor
overtime.2. Formostdepartments,youwillnolongerberequiredtorecordallhours
worked.3. YouarerequiredtoreportexceptionstoworkinTimeOut.(Vacation,Sick,
etc.)4. YouwillmovefrombeingpaidBi-WeeklytoMonthly,paidonthelast
workingdayofthemonth.• Monthly- 12PayPeriodsayear• Bi-Weekly- 26PayPeriodsayear
CHANGINGFROMNON-EXEMPTTOEXEMPT
From Non-Exempt To Exempt
PAYCYCLESAFTERCONVERSION
Monthly Pay Cycle Bi-WeeklyPay Cycle
Pay Cycle First to last dayof the month. ThursdaytoWednesday.Two-weekperiod.
Paychecks Per Year 12 26
PaycheckDate Lastday ofthemonth Every otherFridayafter payperiod.Paydayis11 days in arrears.
Overtime Eligible Exempt:NOT eligible forovertime.
Non-exempt:Eligible forovertime
OvertimePaid N/A Paid in bi-weeklycheckwhenearned.
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PAYRATE
Hourlypayrateisderived in the followingcalculation:
Takeannual ratedivided by2,080 to determinehourlyrate.
$43,041.00/2,080*=$20.69
*Insomeyears,theactualtimeworkedwillbe2080,2088,or2096dependingonhowthecalendarfalls.
SICKANDVACATIONACCRUALS
• Annualizedaccrualswillnotchange.
• Monthlyaccrualswillvaryifyouarenon-exempt,dependingonthenumberofworkinghourspermonth.
Vacation:http://policies.gatech.edu/vacation
SickLeave:http://policies.gatech.edu/employment/sick-leave
GEORGIATECHBI-WEEKLYPAYROLLCALENDAR
MonthlyandBi-WeeklyPayrollCalendarscanbefoundhere:http://ohr.gatech.edu/payroll
Payrolldeductionsaretakenfrompaycheckseitheras:
Flatdollardeductionamount
or
Percentagedeductionbasedonearnings
UNDERSTANDINGPAYROLLDEDUCTIONS
10
$or
%
COMPARISONOFDEDUCTIONSCHEDULEBYCYCLE
12MONTHLYPaychecksayear
• Alldeductionstakenonceamonth
• Medicaldeductionsoneachmonthlypaycheckisforcoveragethemonthpayisreceived.o Forexample,January31st paychecks
includedeductionsforcoverageduringtheentiremonthofJanuary
26BI-WEEKLYPaychecksayear• Mostdeductionstakeninonly24
paychecksayearo Flatdollardeductionsaredividedand
deductedfrom24bi-weeklypaychecks
• Fortwopaychecksoftheyearonlypercent-baseddeductionsaredeductedo Nomedicaldeductions
• Deductionsonbi-weeklypaycheckisforcoverageinthemonthwhenthecheckispaid.o Forexampleapayperiodendingnear
theendofonemonthwillbepaidinthenext.Thiswillbethefirstpaymentforthenextmonth.
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FLATDOLLARAMOUNTDEDUCTIONSNON-EXEMPT
12
Flat Amount deducted Twice Per Month (24 paychecks)
Insurance • Health Insurance• Life & Dependent Life• Accidental Death & Dismemberment• SupplementalLifeInsurance• Supplemental Disability• Health Care/Dependent Care
Other • Additional flat dollar• Garnishments depending on withholding order• Transitand Parking, etc.
PERCENTAGE-BASEDDEDUCTIONS
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%basedonearnings are deducted every paycheck
Taxes
• Federal• State• OASDI (Social Security)• Medicare
Retirement• USG Retirement Plan (TRSorORP)• 403B or457B ifelected % Deduction (for example,3%of every
check)
Other • Garnishments depending on withholding order
DEDUCTIONSTHATMAYNEEDMANUALUPDATE
GointoTechWorks tomanuallyupdate:
• Flatamountdirectdeposits
• Flatamountofadditionaltax
• CreditUniondeductions
• PayrolldeductionstoloadBuzzCard
• 529CollegeSavingsPlans
GointoRetirementManagertomanuallyupdate:
• 403Bor457B
There are certain deductions that will not automatically changewith your new pay schedule:
ContactLenders,Banks,Landlord, etc.andrequest to:§ Move bill due datesto correspondtonewpaycycle
§ Splitmonthly bill in two paymentsifmovingtobi-weeklypaycycle
TRANSITIONPLANNINGRECOMMENDATIONS
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THINGSTOKNOWASYOUPREPARE
§ Alignwithyourmanageronhowtohandleovertimeifyouareeligible,flextime,scheduling,campusinvolvement,professionaldevelopment,etc.
§ ConsiderthefinancialimpactandvisitTechWorkstoreviewyourvoluntarydeductions(i.e.,BuzzCard funds,flatamountdirectdeposits,electedpercentagesforsupplementalretirementplans).
§ TakeadvantageoftheEmployeeAssistanceProgram(EAP)FinancialPlanningservices.
§ Understandwhattime-keepingsystemyouwillbeusing.
§ Understandthetime-keepingpolicy.Ifyouarenon-exempt,yourmanagershouldnotaskyoutonotreporttime,andyoushouldnotworkundocumentedtime.
RESOURCES
MainGTHRFLSAWebsite:www.ohr.gatech.edu/flsaFAQs:FLSAFAQsTravelGuidelines:TravelGuidelinesforNonexemptEmployees