2012 Payroll Overview Slide Show for EEs 11.15.11

2012 Payroll Changes Overview : 

2012 Payroll Changes Overview This overview will aid in understanding how the changes will affect your pay.

Helpful Reference: 

Helpful Reference Information Bulletin and FAQ 2

What’s Up in 2012?: 

What’s Up in 2012? Paperless Payroll! Online routing, approval and processing of time reported and PTO Biweekly Paychecks A paycheck every 2 weeks, always on Friday 3

Change #1: Paperless Payroll: 

Change #1: Paperless Payroll Convenient Accurate Paperless 4 Debbie

How Does It Work?: 

How Does It Work? 5

Hourly Employees: Online Time Reporting: 

Hourly Employees: Online Time Reporting Hourly employees click an icon on desktop to sign “in” or “out” daily Supervisor receives an e-mail notice to review and approve the time online Time is automatically processed by payroll Paperless! Accurate! Efficient! 6

All Employees: Paperless PTO : 

All Employees: Paperless PTO Request Paid Time Off online Manager receives alert and approves Plans change? Go ahead and cancel if needed PTO processes automatically after date of occurrence 7

More Information: 

More Information Want more information? Please be patient! Online reporting begins March 12. Detailed information and training in January and February. 8

Change # 2: Biweekly Payroll: 

Change # 2: Biweekly Payroll An 80 hour paycheck Every two weeks Always on Friday 9

Change # 2: Biweekly Payroll: 

Change # 2: Biweekly Payroll An 80 hour paycheck every two weeks, always on Friday: 10

How does a Biweekly Payroll Work?: 

How does a Biweekly Payroll Work? 11 Paychecks Hours Per Check Hours Paid In 12 Months Biweekly 26 80 2080 Semimonthly 24 86.67 2080

What Else Changes?: 

What Else Changes? Today - Your paycheck pays for time worked through the date of the check: 12

Pay Schedule Changes: 

Pay Schedule Changes Next Year - Your Friday paycheck pays for time worked the prior two weeks: 13

The Difference: 

The Difference 86.67 hours 15 th and last day 24 times in 12 months Always 2 a month Paid “current” through date of paycheck 80 hours Every two weeks, Friday 26 times in 12 months Sometimes 3 in a month! Paid 5 days after the pay period is complete Semimonthly Biweekly 14

Why Biweekly?: 

Semimonthly: 86.67  80, 88 or 96 Why Biweekly? Paycheck Pay Period Paycheck 12/31 88 hours 86.67 hours 1/15 80 hours 86.67 hours 1/31 96 hours 86.67 hours 15 15

Why Biweekly?: 

Biweekly: matches pay period Why Biweekly? Paycheck Pay Period Paycheck 3/30 80 hours 80 hours matches 4/13 80 hours 80 hours matches 4/27 80 hours 80 hours matches 16 16

Biweekly Payroll: 

Biweekly Payroll Semimonthly: Timing Varies 17 SEMIMONTHLY Date Day of Week Days in Between July 13 Fri 14 July 31 Tues 18 Aug. 15 Weds 15 Aug. 31 Fri 16

Biweekly Payroll: 

Biweekly Payroll Biweekly: Every 14 Days, Always Friday 18 SEMIMONTHLY BIWEEKLY Date Day of Week Days Between Date Day of Week Days Between July 13 Fri 14 Jul. 13 Friday 14 Jul y 31 Tues 18 Jul. 27 Friday 14 Aug. 15 Weds 15 Aug. 10 Friday 14 Aug. 31 Fri 16 Aug. 24 Friday 14

3 Paycheck Months: 

3 Paycheck Months 2012: August 2013: March and August Benefit deductions for only the first two paychecks a month, not the third paycheck PTO accruals will also show on the first two paychecks a month 401(k) contributions always apply, every paycheck 19

How Do We Make the Change?: 

How Do We Make the Change? Online Reporting Implementation Two pay schedule changes Semimonthly to biweekly Paid through the day of the paycheck (paid current) to paid 5 days after the pay period (paid on the lag). 20 Rev 103 Rev 52 Sandee

Transition Timing: 

Transition Timing Pay Dates Paid on the 15 th and last day of month Jan –Feb Biweekly Friday pay dates start in March Amount of Pay 86.67 through end of February Biweekly checks begin in March Time Entry System Starts March 12 th 21

Pay Schedule Transition Group 1: 

Pay Schedule Transition Group 1 22 Pay Dates Hours Paid Fri 1/13/2012 86.67 Tue 1/31/2012 86.67 Wed 2/15/2012 86.67 Wed 2/29/2012 86.67 Fri 3/16/2012 56 Fri 3/30/2012 80 Thereafter: 80 hours, every other Friday Biweekly Friday Semi-Monthly Schedule

One Time Voluntary “Advance”: 

One Time Voluntary “Advance” You will have the following options: Please process my 3/1/12 – 3/11/12 payroll as usual with no advance. (56 hours) Please advance 24 hours on my 3/16/12 payroll and deduct over 4 pay periods from my regular pay to cover the balance due as follows: 6.0 hours on 3/30/12 6.0 hours on 4/13/12 6.0 hours on 4/27/12 6.0 hours on 5/11/12 23

Pay Schedule Transition Group 1: 

Pay Schedule Transition Group 1 24 Pay Dates Hours Paid Fri 1/13/2012 86.67 Tue 1/31/2012 86.67 Wed 2/15/2012 86.67 Wed 2/29/2012 86.67 Fri 3/16/2012 56+24 = 80 Fri 3/30/2012 80-6 = 74 Fri 4/13/2012 80-6 = 74 Fri 4/27/2012 80-6 = 74 Fri 5/11/2012 80-6 = 74 Thereafter: 80 hours, every other Friday Semi-Monthly Schedule

Pay Schedule Transition Group 2 : 

Pay Schedule Transition Group 2 25 Pay Dates Hours Paid** Fri 1/13/2012 80 Tue 1/31/2012 96 Wed 2/15/2012 88 Wed 2/29/2012 80 Fri 3/16/2012 96 Fri 3/30/2012 80 Fri 4/13/2012 80 Thereafter: 80 hours, every other Friday **Please note: Hours Paid based on number of hours worked. Semi-Monthly Schedule

Budgeting: 

Budgeting Plan for new timing and amount of paychecks – 80 hours not 86.67 Timing of regular expenses Monthly (ex. home mortgage, car payments) Weekly (ex. daycare, groceries) Review fixed direct deposit amounts to personal accounts Fixed amounts on tax deductions 26

Key Questions: 

Key Questions How much is my new paycheck? How to calculate an 80 hour paycheck Full Time Using Hourly Pay Rate Your hourly rate $___x 80 hours = $___ (gross) Full Time Using Annual Pay Rate Your annualized pay $___/ 26 paychecks = $___ (gross) 27

Key Questions: 

Key Questions Example of $10.00 / hour Full Time Using Hourly Pay Rate Your hourly rate $ 10.00 x 80 hours = $800.00 (gross) Full Time Using Annual Pay Rate Your annualized pay $20,800 / 26 paychecks = $800.00 (gross) Biweekly paycheck is $800.00 (26 times in 12 months) Semimonthly paycheck was $866.67 (24 times in 12 months) 28

Key Questions: 

Key Questions Why are there only 25 paychecks in 2012? Answer: Because we are not on a consistent biweekly Friday schedule a full calendar year. From March forward there are always 26 paychecks in 12 months. 29

Key Questions: 

Key Questions Why are my 80 hours from 2012 paid in 2013? What’s the impact to me? Answer: 80 hours worked in 2012 will be paid 5 days later, in 2013. 30

Key Questions: 

Key Questions Do I lose any pay with these payroll changes? Answer: No. You are always fully paid through the last pay period. The change is in the hours paid and timing of each paycheck. Your biweekly paycheck will be 80 hours. You will be paid for each 2 week pay period five days later, on a Friday. 31

Summary – What’s up in 2012?: 

Summary – What’s up in 2012? Paperless Payroll Online routing, approval and processing of time reported and PTO Starts in March, training in January-February Biweekly Pay Schedule A paycheck every 2 weeks, always on Friday Friday paychecks start in March 32

More Information: 

More Information Information Bulletin and FAQ Payroll Department 33