New Payroll Cycle FAQs
FREQUENTLY ASKED QUESTIONS
TVCC changing to semi-monthly arrears pay cycle
(Semi-monthly Payroll)
What is a semi-monthly arrears pay cycle?
An arrears pay cycle means that your pay will be received by you in the week “after” the pay period ends. TVCC currently pays employees based on a “current” pay cycle and are paid in advance of the month ending.
When is the semi-monthly arrears pay cycle change happening?
Beginning January 1, 2019, all Trinity Valley Community College employees and student workers who are now paid on the current month pay cycle will transition to a semi-monthly arrears pay cycle.
Why are we changing to a semi-monthly payroll?
This change is mainly due to our new ERP platform and is necessary in order for us to fully utilize the automated functionality built in. Also, due to the college’s goals for continuous improvement of the quality and efficiency of the college’s business processes.
The semi-monthly arrears pay cycle will enable TVCC to fully utilize our new ERP functionality, create a systematic approach to payroll time reporting, decrease payroll errors, provide more accurate and timely reporting of employee benefits (including compensatory time, vacation and sick leave accruals), improve accuracy of hours, reduce the amount of employee time spent completing and correcting time sheets, and ensure a more efficient payroll process.
Who is affected by the transition?
All full-time, part-time, and student workers.
Can I choose not to transition to a semi-monthly payroll schedule?
No. All employees and student workers will be transitioned to the semi-monthly payroll.
What does semi-monthly pay mean?
Semi-monthly pay means that employees and student workers are paid more frequently, 2 payments each month rather than one payment per month. Payments will be made on the 5th and 20th of each month.
I know that there are 12 monthly pay periods in a calendar year. How many semi-monthly pay periods are in a calendar year?
Since you will now be paid twice per month, you will have 24 pay periods in a calendar year.
What will the new pay periods be?
A pay period is set for the first half of the month (1st through 15th) and a second pay period for the second half of the month (16th through 31st).
When will the change to a semi-monthly pay schedule take effect?
The last monthly paycheck will be on Thursday, December 13th, 2018. Effective January 1, 2019, all TVCC employees will be changed to semi-monthly.
When will I receive my first check under the new pay frequency schedule?
You will be paid twice a month based on the following schedule: 1st through 15th of the month will be paid on the 20th and 16th through 31st of the month will be paid on the 5th.
The first semi-monthly pay checks are expected as follows ( a full schedule will be posted on the web site):
|
2019 Pay Periods |
Pay date 2019 |
|---|---|
|
January 1st – 15th |
January 18th |
|
January 16th – 31st |
February 5th |
|
February 1st – 15th |
February 20th |
|
February 16th – 28th |
March 5th |
|
March 1st – 15th |
March 20th |
|
March 16th- 31st |
April 5th |
|
April 1st – 15th |
April 18th |
|
April 16th – 30th |
May 3rd |
|
May 1st – 15th |
May 20th |
|
May 16th – 31st |
June 5th |
|
June 1st – 15th |
June 20th |
What happens when the 5th or the 20th falls on a holiday or weekend?
If the pay date falls on a weekend or holiday, payday will be on the business day prior to the weekend or holiday.
Does this mean that I will receive two (2) checks of equal amounts each pay period?
If you are an exempt employee, yes. Your monthly gross earnings will be divided by two (2).
If you are non-exempt, no. Your gross earnings amount of your check may be different depending on the number of hours worked in the pay period and/or the deductions taken. Going to semi-monthly means that the two check amounts may be different during the month due to the number of working days or hours during that pay period cycle.
If you are a non-exempt employee, your pay will be converted from an annual salary amount to an hourly rate. To determine your hourly rate of pay if you are a full time employee that works 37.5 hours per week, you would take you annual salary and divide it by 1950. For example:
$25,000/1950= $12.82 per hour
If you need assistance in calculating your hourly rate you can call Michelle Wright @ x 6334.
What do “Non-exempt” and “Exempt” mean?
Non-exempt employees are eligible for overtime under the Fair Labor Standards Act (FLSA) and must record time worked via timesheets. Exempt employees are excluded from overtime and are not paid based on time.
If you are unsure of your exemption status, please check with your department supervisor or human resources.
Why must “Non-exempt” employees report time?
FLSA regulations require employees to track their time worked by the hour and require that overtime be paid for work in excess of 40 hours in a work week. To ensure that the College meets these regulations, non-exempt employees must report time worked each day.
Will the change in pay frequency affect my sick and vacation accruals?
No. The accrual of sick and vacation days will be unaffected by the payroll change. You will continue to accrue these benefits on a monthly basis as usual.
How will the transition to semi-monthly impact deductions?
The transition will not impact deduction amounts unless they are percentage based. For deductions with set amounts, the deduction amounts will be divided in half and deducted from each check. Deductions using a percentage method will be calculated based on the pay period’s wages and deducted from each pay check.
Will the transition impact my garnishment deductions?
The calculation of your garnishment deductions will not change, unless otherwise specified by the court order. For garnishment orders with set amounts, the garnishment deduction amounts will be divided in half and deducted from both payments. Garnishment orders using the percentage method will be taken from each pay check and calculated based on the pay period’s wages.
Will benefits be affected in any way by going to semi-monthly payroll?
No. All benefits coverage will continue as normal.
How will this impact my deductions for taxes (Federal tax, FICA & Medicare)?
There will be no impact to tax deductions. Tax deductions will be based on semi-monthly gross amounts. FICA and Medicare tax deductions are calculated as a percentage of the semi-monthly gross pay amount. Federal withholding taxes are calculated based on withholding allowances claimed and applicable tax tables.
*If you have an additional tax amount deducted from your paycheck, that monthly amount will be split in half and will be withheld from each semi-monthly check.
Will I need to make any changes to my Federal withholding taxes?
No. Taxes will be based on the wages earned for the tax period and the withholding allowance claimed. If you need to update your tax withholdings, please complete online or return a new federal W-4 form by January 10th, 2019 to be effective with the first semi-monthly payroll.
Is it necessary for me to notify my financial institutions (bank, credit union, etc.) of the change in deposit schedule, especially if I have payments made directly from my account for my mortgage, car loan, etc.?
If you have automatic disbursements of any kind from your account(s), you will need to ensure there are sufficient funds to cover those transactions. Additionally, you may want to make arrangements with your financial institution about any necessary changes to payment dates.
What if I pay some of my bills through automatic bill pay?
If you have automatic bill pay set up for any regular expenses, such as mortgage payments, car payments, or student loan payments, we encourage you to work directly with you financial institution(s) to change payment dates if necessary. They are usually very understanding to changes of this nature and will work with you. If you need to have a letter explaining or verifying the changes, HR will be happy to supply one for you.
What happens if I don’t get paid on my pay date?
Immediately contact Payroll at (903) 675-6334. We will look into the issue as quickly as possible and provide to you the necessary information.