Use the following FAQs to help answer questions regarding the payroll transition for new overtime-eligible employees.
Here are examples of the specific pay dates for biweekly pay starting 12/29/19:
- 1/2/2020: Last monthly paycheck prorated for work performed between 12/1/2019 through 12/28/2019, full benefits deduction for December.
- 1/22/2019: First paycheck for biweekly period of 12/29/2019 through 1/11/2020, first ½ of January benefits deductions.
- 2/5/2019: Paycheck for biweekly period of 1/12/2020 through 1/25/20202, second ½ of January benefits deductions
Accruals for biweekly employees are credited at the end of every two pay periods (every four weeks) based on hours on pay status during those two pay periods. Biweekly employees accrue 13 times in a calendar year, compared to 12 times for monthly employees. The accruals for each pay period are therefore smaller, but your annual vacation and sick accrual rate is the same.
If your hourly rate is not listed in the link, there are two methods you can use to calculate your hourly rate (based on a 40-hour workweek):
- Method 1: Take your monthly salary rate and divide by 174 (the average number of working hours in a month). For example, if your monthly salary is $3250.00 per month: $3250.00 ÷ 174 = $18.68 per
- Method 2: Take your annual salary and divide it by 2088 (the number of working hours in a year). For example, if your annual salary rate is $39,000.00 per year: $39,000.00 ÷ 2088 = $18.68 per hour
- Review your current tax withholding elections and make any necessary changes. Pay particular attention to additional tax withholding amounts.
- Review your current voluntary contributions to your 403(b) and 457(b) plans.
- If appropriate, request that third-parties adjust your automatic withdrawal or bill-pay dates to align with your new pay schedule.
If the garnishment deduction is a fixed amount, the amount will be recalculated to a biweekly amount. That calculation is then divided into two payments. For example, a monthly $250 garnishment payment will become $125, deducted during each biweekly paycheck.
Flat Dollar deduction: If you set up your contributions as a fixed flat dollar amount, the flat dollar amount will be split in half, and one-half will be withheld per biweekly payday. For example, if your current 403(b) contribution is $100.00 per month, it will be divided into a $50.00 contribution each biweekly payday. For months with three paychecks, one paycheck will have no fixed flat dollar deductions taken.