This summer, all classified salaried employees
and salaried research assistants hired before March 25, 2002,
will be given a choice of moving from monthly pay to a semi-monthly
pay frequency as of September 25, 2002. All classified salaried
employees and salaried research assistants hired on or after
March 25 will be paid semi-monthly from the date of their
hiring. (Please distribute the attached
letter to your classified salaried employees and salaried
research assistants.)
With the implementation of UVA HRMS/Payroll, we will for
the first time be able to bring the reporting of time (hours
worked) and leave into the same pay period. As you know, classified
salaried employees accrue leave on a semi-monthly basis by
state policy. The leave bubble sheets classified employees
currently fill out each month will go away under UVA HRMS
and will be replaced by a new time and leave form. Classified
employees and research assistants will fill out this new time
and leave form each semi-monthly period and designated timekeepers
in your respective organizations will key this into the UVA
HRMS system. The reporting of time and leave on a semi-monthly
basis will not affect how classified employees and research
assistants are paid if they choose not to change to a semi-monthly
pay frequency. The only change that classified employees and
research assistants will see, as a monthly-paid employee will
be an additional bank deposit line on their earnings statement
versus the single line today.
The reason for not allowing monthly-paid classified staff
and research assistants the choice of moving to a semi-monthly
pay frequency earlier than September 25, 2002, has to do with
the implementation of UVA HRMS/Payroll. We are currently limiting
the number of changes to existing employee data in order to
complete testing of UVA HRMS/Payroll. The targeted "go-live"
date for UVA HRMS/Payroll is June 27. The first payroll in
UVA HRMS will be July 5, which is a biweekly payroll for hourly-paid
employees. The period from UVA HRMS/Payroll "go live"
to September 25, allows for a brief adjustment period.
It is important to note that if classified employees and
research assistants choose to move to semi-monthly pay, they
will not be permitted to change back to a monthly pay frequency.
However, they will have the choice of moving to a semi-monthly
pay frequency at any later time, so long as it is effective
the 25th of a month (the beginning of the 1st semi-monthly
pay period in a month). The semi-monthly schedule runs from
the 25th through the 9th (first semi-monthly pay period) and
the 10th through the 24th (second semi-monthly pay period).
Establishing semi-monthly pay for newly hired classified
salaried employees and research assistants should have no
adverse budgetary impact. However, be aware that there will
be a one-time budget liability associated with the conversion
of existing monthly-paid employees to semi-monthly pay. For
example, if a monthly-paid classified employee or research
assistant were to choose semi-monthly pay, the one-time budget
liability would amount to approximately 4.17% of annual salary
and fringes. This occurs because of the state's lag in payroll.
When "lag pay" was implemented several years ago,
the June monthly payroll was delayed by one month into the
next fiscal year. Therefore, if a monthly-paid employee changes
to a semi-monthly pay frequency, one-half of the employee's
monthly pay will be brought back into the current fiscal year,
resulting in the one-time budget liability. The Budget Office
will make a temporary adjustment to state general or local
general awards for those employees who convert to semi-monthly
pay on or after September 25, 2002. Other award types will
need to absorb the costs of pay frequency changes.
If you have pay frequency questions, you may contact the
Payroll Division at 924-4350 or by email at hrdept@virginia.edu. |
