FAQs About Brewster's New Semi-Monthly Payroll Schedule
In accordance with Brewster’s collective bargaining agreements, all Brewster employees will be paid on a semi-monthly basis effective July 1, 2018. Pay dates will be on or about the 15th and the last day of each month, taking into account weekends and holidays. Below are some questions and answers that will help you to understand this change and how to anticipate the impact on you.
1. Why convert to a semi-monthly payroll?
Some of the many benefits associated with a semi-monthly payroll are:
- It provides a consistent monthly cash flow for employees to manage their finances.
- It is a more accurate reflection of “time worked” for salaried employees.
- Affordable Care Act (ACA) tracking and compliance.
- Administrative savings with preparing fewer payrolls every year.
2. Will I still earn the same amount of money for the year?
Yes, you will receive your full salary entitlement. Paychecks will actually be slightly larger per payroll since your annual salary is divided by fewer payrolls (20 as opposed to 21 and 24 as opposed to 26). In the current (bi-weekly) system, salaried employees earning $30,000 annually receive 26 bi-weekly checks of $1,153.85 gross. In the new, semi-monthly system, that employee would be paid in 24 checks of $1,250.00 gross resulting in an additional $96.15 per paycheck due to the reduced number of payrolls
3. When will I get paid?
Generally, paydays will be on the 15th and the last day of each month, beginning in July 2018. If the 15th or the last day of the month falls on a weekend or a legal holiday, you will be paid on the Friday before the weekend or the workday preceding the holiday. The payroll calendar will change slightly from year to year and is posted on our website.
4. When will I receive my first semi-monthly check?
- 12-month Employees-July 5, 2018 (half-pay)
- 10-month Employees-September 14, 2018 (full-pay)
5. How will the new pay cycle be implemented?
For the 2018-19 school year only, we will modify the pay schedule for 12-month employees only. To reduce the impact of the three week lag between our final 2017-18 pay (June 22, 2018) and our first semi-monthly pay, a “half-pay” will be issued on July 5th. This first “half-pay” will equate to 1/48th of your salary or half of your semi-monthly amount (1/24th divided by 2). On July 13th, another “half-pay” will be issued comprising the remaining balance (1/48th). Thereafter you will receive your regular semi-monthly amount (annual salary divided by 24), on or about the 15th and the last day of the month.
6. Will I still be eligible for the Multi-pay/Balloon Payment Option on my 10-month salary and how will that work with the semi-monthly system?
Yes, the Multi-pay/Balloon Payment Option is still available to all eligible employees. Your annual salary will be divided into 24 pay periods to calculate the per-pay amount. You will receive 2 pays per month at that per-pay amount from September to June and will then receive a lump sum of four (4) additional pays at the end of June (i.e. your final June check will include five semi-monthly checks). Unless otherwise advised, your current pay-period election will remain in effect. If you would like to modify your number of paychecks, please complete the attached Pay Period Election Form.
7. How do I calculate my new semi-monthly rate?
Your new semi-monthly rate is your 2018-19 salary divided by 20 or 24 pays depending on the number of pays you’ve chosen. Please note that the Payroll Department will not be able to calculate your new semi-monthly rate until after the first payroll.
8. How will this change affect my taxes?
Your taxes do not need to be adjusted due to the change to a semi-monthly payroll. The amounts withheld from your paycheck are based on the withholding allowances specified on your W-4 and not the payroll frequency. Since your semi-monthly paycheck will be greater than your bi-weekly was, taxes will be adjusted automatically based your new per-pay amount and your existing withholding allowances.
9. What about overtime pay?
Overtime for eligible employees will still be calculated based upon actual hours worked. Each semi-monthly payroll cycle will encompass two weeks of timesheet hours earned, with the exception of 8/31/18, 11/15/18, 3/15/19 & 5/31/19 which will include three weeks of timesheet hours. The attached payroll schedule clearly indicates which weeks are covered in each payroll. Three-week payrolls (for overtime only) are indicated with an asterisk (*) in the “pay date” column.
10. What will happen if timesheets are turned in after the deadline or without signatures?
Employees and supervisors are jointly responsible to ensure that timesheets are submitted timely. The payroll department will make every effort to pay employees in a timely manner; however, timesheets that are turned in after the deadline may be delayed to the next payroll. Unsigned timesheets will be returned to the supervisor to be signed before the timesheets can be processed.
11. What about vacation/sick/personal leave for employees?
There will be no change in the way that vacation/sick/personal leaves are calculated.
12. What will happen to my benefits and their cost with this change to a semi-monthly payroll?
Your benefits will continue uninterrupted and there will be no change to the amount deducted. We have always deducted health insurance contributions over 20 pays.
13. What will happen with my 403(B) TSA and/or 457 deductions?
There will be no change to your 403(B) or 457 deductions. We have always deducted voluntary contributions over 20 pays for 10-month employees and 24 for 12-month employees.
14. What about deductions automatically deducted from my bank accounts, such as for a car loan or mortgage payment?
You will need to contact your financial institution to see if an adjustment to your automatic deduction is necessary. We can only assist you in deductions that come directly from your paycheck.
15. Will my paycheck be deposited as usual?
Yes; please be sure to enroll for direct deposit.
16. For Supervisors and Support Staff ONLY: When are hourly timesheets be due?
Timesheets must be submitted to the payroll department by the dates listed on the payroll schedule. Timesheets must be signed by both the employee and the supervisor in order to be processed.
Please feel free to give Shona (6115) or Michele (6126) a call on Mondays and Thursdays between the hours of 9:00-10:30 a.m. if you have any other questions.