changing pay frequency · 4.you will move from being paid bi-weekly to monthly, paid on the last...

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

13

%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