Have a district that is changing there Pay Plan from biweekly to semimonthly. Is there a program that can be run for this? Where would I find it? If there is something out there, I can not seem to locate it.
Changing from 24 to 26 pays or 26 to 24 pays
From 26 to 24 pays:
- The pay per period on stretch pay jobs will be increased. Employees
may need to file new W-4 forms for taxation purposes at the Federal
and Ohio levels.
- Taxes withheld on a percentage basis will increase with the
increased pay per period.
- Voluntary deductions withheld every payroll will have to be reviewed
to insure the withholding amount is correct due to 2 less pays.
- Annuity type deductions that are a percentage withholding may have
to be reconsidered by the employee or annuity company so the maximum
contributions as permitted by the IRS are not exceeded.
- Retirement buy-back calculations may have to be resubmitted to the
- New payroll schedule will have to be filed with STRS.
- Deductions with maximums to withhold may need adjustments.
- Pay account with maximums to charge may need adjustments.
- The number of days between payrolls will become inconsistent due to
the fixed pay dates falling on a weekend or holiday. This will cause
days worked on the pay stubs to be irregular as well as the amount
going into accrued wages.
- A 24 pay cycle will make direct deposit transfers more irregular.
Depending on what day of the week the pay date falls, the transfers
may need to be made the preceding week taking into account all
weekends and bank holidays, which many times fall on a Monday.
- If all jobs are not changed at the same time, the district will have
to run multiple pays until all jobs are on the same 24 pay cycle.
This will likely occur after all new contracts have been purged.
I've had districts do this in the past and what I've asked them for is, after they finish each contract type, to email me the pay groups that are ready for the change and I change the bi-weekly status to semi-monthly status via datatrieve since I've found no other way via a state software support program. They do this usually through three cycles as the 7/1, 8/1 and then either late August/early September group changes, so I do it for them when each group is ready.
I've had some districts who just set up the new contracts, under bi-weekly, and divided their pays over 24 instead of 26 pays in NEWCNT, then when they were all purged over, I switched the pay cycles to semi monthly. They knew of the tax implications but decided to do it that way vs. two pays each pay for three pays until all groups were aligned. Hope that helps.